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Why now is the right time to invest in Zambia by Choolwe Chibomba

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Zambia sits on a fountain of untapped potential. Home to over 376,000 square kilometers of arable land, as well as some of the highest-grade copper deposits in the world, the country is a treasure trove of natural resources. Added to this, 54% of Zambia’s population is of working age (15 – 64), while businesses have access to a market of some 406 million inhabitants via the Common Market for Eastern and Southern Africa (COMESA).

Tragically, and in a pattern seen all too often across Africa, successive governments have failed to tap into this potential. Instead, they saddled Zambia with unsustainable levels of debt while allowing a culture of corruption and venality to proliferate throughout its society.

The election of President Hichilema and the UPND government is therefore rightly heralded as a ‘new dawn’ for Zambia; allowing people and businesses to finally realise Zambia’s abundant potential.

Since this New Dawn government was elected, Zambia’s credit rating has been upgraded to a CCC+ (up from CCC-) by the S&P rating agency, with GDP growth expected to accelerate to 3.7% in 2023. Having negotiated a $1.3 billion extended credit facility from the IMF, as well as a $275 million loan from the World Bank, the government is now tantalisingly close to agreeing a debt renegotiation plan with its external creditors, freeing up vital funding from interest payments to be invested into infrastructure, healthcare, and education.

Businesses are already waking up to the opportunities that this proactive, forward-thinking government is unlocking for them and for the Zambian people. In May, the CEO of Canadian mining giant Barrick Gold, Mark Bristow, described President Hakainde Hichilema as a “breath of fresh air” at the Investing in African Mining Indaba in Cape Town. The company has credited the New Dawn government’s pro-business attitude and progressive tax reforms – including an end to the double tax trap on mining royalties – with plans to potentially extend the life of the company’s Lumwana mine until 2060.

This kind of continued investment would not only sustain jobs at the Lumwana mine but also create opportunities throughout the value chain as the company contracts Zambian firms to provide machinery, equipment, and services to the mine. Furthermore, it would result in significant upskilling for Zambian workers as the mine invests in training and educating its employees.

It is not just mining companies that are taking note. In July Zambian Breweries, which is owned by Belgian drinks company AB InBev, announced it would be investing $80 million into expanding its Lusaka factory, creating 5,000 new jobs in the process. The brewery again cited the “pro-business and pro-investment climate” that President Hichilema’s government has cultivated since coming into office.

These developments represent just the tip of the iceberg, as the government has promised to use its 2023 budget to make Zambia the most attractive investment destination on the continent. This will in turn provide Zambians with the access to capital and financing they need to set up and grow their own businesses.

In manufacturing, the government is promising a 50% suspension on excise duty for clear beer, as well as concessions geared towards stimulating investments in corn starch production. Meanwhile, telecom companies will benefit from the abolishment of the two-tier tax system in favour of a single corporate income rate of 35%, and betting shops will see their presumptive tax reduced by 10%.

These plans to drive investment also include measures to waive visa requirements for visitors from the EU, United Kingdom, United States, and China. This will not only help foster increased tourism but also allow potential investors from wealthy countries to visit Zambia more easily and witness its potential firsthand.

To help promote the breadth of Zambia’s investment potential, the government is supporting the efforts of Zambia Is Back campaign through the Zambia Development Agency (ZDA). Zambia Is Back campaign works to publicise the opportunities being unlocked by the New Dawn government and match up promising Zambian businesses with interested investors around the world.

We are excited to meet with growing businesses in Zambia, as well as investors looking to get involved in this exciting chapter in our nation’s history. In particular, we are looking forward to meeting with investors that want to make a positive impact in Zambia and support the country’s development by promoting education, entrepreneurship, and value-chain addition.

Strictly Personal

Here is Raila’s Africa Union road to nowhere, By Tee Ngugi

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On August 27, the Kenya government officially endorsed Raila Odinga as its candidate for chairman of the African Union Commission in a ceremony held at State House.

In attendance were William Ruto, Yoweri Museveni of Uganda, Tanzania’s Samia Suluhu Hassan, South Sudan’s Salva Kiir, former president of Nigeria, Olusegun Obasanjo, former president of Tanzania, Jakaya Kikwete , among other dignitaries. The platitudes spoken at the ceremony, and the grandiose reception of the VIP dignitaries resembled a mini African Union heads of state gathering.

Watching the gathering and listening to the speeches, I was struck by two sad truths.

One truth was of a tone deaf generation totally incapable of understanding the problems of Africa. The other was that these same people continue to be in charge of Africa’s affairs or determine or influence its future. Let me expound on these two issues by reference to the speech made by Raila Odinga.

Odinga touched on several problems plaguing Africa including peace, the poverty that forces people to flee to Europe, and intra-Africa trade.

Yet not once did he hint at, let alone mention, the root cause of all these problems. Lack of peace in Africa is caused by failed governance.

The governance style fashioned by the independence leaders is characterised by what Ali Mazrui called “deification” of political authority.

By this process, the president becomes a god. He uses government positions and public resources to buy support or reward sycophants. Significant resources are used for self-aggrandisement and to fulfill megalomaniacal ambitions.

It is a wasteful and corrupt system. The state employs an elaborate police apparatus to intimidate citizens. A case in point: A few weeks ago, and not far from State House , the Kenya regime stationed snipers on rooftops to execute unarmed protesters.

The African governing elite is also adept at using tribalism as a political tool. The war in South Sudan is a competition for power by individuals who mobilise the support of their communities.

The deadly conflagration in Sudan is traceable to Bashir’s dictatorship which weakened systems and impoverished the country. Now those close to Bashir are fighting to be the next “deity” and continue to plunder the country.

Odinga evoked the ghosts of Nkrumah, Jomo Kenyatta, Sekou Toure and Haile Selassie — dictators who designed the oppressive parasitic state. Evocation of these dictators was ominous, because it signaled continuation of the AU defence of the broken system they designed and which successive regimes have perpetuated.

Should he succeed, Raila will become the next spokesman and defender of this fundamentally flawed governance which the youth of Africa want to overthrow.

His legacy will be cast in the same lot with that of dictators who have ruined and continue to ruin Africa.

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Strictly Personal

Mpox crisis: We need an equity-driven pandemic treaty, By Magda Robalo

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The current multicountry Mpox outbreak started in January 2022. It has now been declared a Public Health Emergency of Continental Security (Phecs) by the Africa CDC and, for the second time, a Public Health Emergency of International Concern (Pheic) by WHO, under the International Health Regulations (2005) highlighting critical deficiencies in the global public health response.

Endemic to West and Central Africa, the first human case of Mpox was detected in 1970 in the Democratic Republic of Congo (DRC). Nigeria experienced a large outbreak in 2017 and 2018. Only sporadic cases occurred outside endemic areas before 2022.

According to the World Health Organisation, most people suffering Mpox recover within two to four weeks. The disease is transmitted through close, personal, skin-to-skin contact with someone who has Mpox, contaminated materials, or with infected animals. Transmission could also occur during pregnancy or childbirth and among people with multiple sexual partners, who represent a high-risk population.

Despite early warnings, failures in implementing robust surveillance, contact tracing, and containment strategies have allowed the virus to spread across at least 120 countries. In the DRC, where the outbreak has been particularly severe, two distinct outbreaks are evolving, caused by clade Ia and the newly emerged clade Ib.

Increasingly, and rightly so, voices are coalescing to demand an urgent, coordinated international action and global solidarity toward an equity-driven, focused response to curb the virus’s spread and mitigate its impact.

Loud calls for equitable vaccine distribution are being heard, a reminiscence of the Covid-19 dramatic experience. But vaccines are only one complementary tool in the box of interventions against the outbreak. Two fundamental questions we should be asking are: whether we have done enough to prevent the outbreak from becoming Pheic and Phecs, and if we are doing all we can to contain it, beyond placing our hopes on the still scarce doses of vaccine.

The Mpox outbreak underscores the urgent need for a comprehensive, equity-driven pandemic treaty, to coordinate global efforts to improve pandemic prevention, preparedness and response. The potential impact of this treaty is substantial, promising to address critical areas such as public health infrastructure, equitable access to treatment, vaccines and other supplies, and enhanced international cooperation during health emergencies.

The spread of Mpox across multiple continents in the aftermath of the Covid-19 pandemic confirms the persistence of significant vulnerabilities in national and global health systems, particularly in surveillance and rapid response—areas a well-crafted treaty could strengthen.

A united voice from Africa is critical to the negotiations. Without systemic changes, the world risks repeating the mistakes of Covid-19 and the ongoing Mpox outbreak in future outbreaks. Global health security depends on timely action, transparent communication, and a commitment to protecting all populations, regardless of geographic or socioeconomic status. It depends on strong health systems, based on a primary health care strategy and underpinned by the principles of universal health coverage.

There is no doubt that the world is facing an emerging threat. The scientific community is confronted with knowledge gaps in relation to Mpox. Several unknowns persist on the real pace of the evolving outbreak, its modes of and transmission dynamics, evolutionary routes and the human-to-human transmission chains. It is uncertain if we are moving toward a sustained human-to-human transmission and its potential scale and impact.

However, despite the fragility of health systems in most of its countries, Africa has decades of vast, diverse, cumulated experience in dealing with major epidemics, such as HIV/Aids, Ebola and most recently Covid-19, in addition to the decades of surveillance for polio eradication and containment of outbreaks.

In recent decades, African countries have improved their human, technical and infrastructural capacities and capabilities to detect, diagnose, and respond to outbreaks and large epidemics. Expertise and skills have been built in disease surveillance, infection prevention and control, diagnosis, epidemiological data management, including pathogen genomic sequencing.

Communities have developed systems to fight stigma and discrimination, built resilience and capacity to respond to and address their unique challenges, including poor access to information, education, communication tools, as well as to treatment and prevention interventions.

Admittedly, the response to this outbreak continues to expose significant flaws, particularly inconsistent and inadequate surveillance and monitoring systems to track the spread of the virus, contact tracing, and infection prevention measures (isolation, handwashing, use of masks and condoms, etc).

Many countries still lack the necessary infrastructure or have relaxed these measures, leading to delayed detection and widespread transmission. Moreover, a reluctance to deploy aggressive contact tracing and isolation protocols, partly due to concerns about stigmatisation, resulted in missed opportunities for early containment.

While negotiating for potential vaccine doses to protect high-risk populations, countries should invest in and deploy what they have learned and now know how to do best, based on the lessons from polio, HIV/Aids, Ebola and Covid-19. It is imperative that we contain the Mpox outbreak before it is too late. It is time to put our best foot forward. We have no reasons for helplessness and hopelessness.

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