Political activist Mbita Chitala has observed the reintroduction of the Industrial Development Corporation (INDECO) in the country by government is a long overdue venture.
Dr. Chitala says government’s idea to reintroduce a parastatal company such as INDECO to coordinate government enterprises is progressive as it will help mange companies that were left in abeyance and uncoordinated after the state privatized some of the public institutions.
Dr. Chitala has told Qfm in a telephone interview that INDECO will bring about the professionalization of management of government business the reason why people in the country should support government’s plan as it is progressive.
The Political activist says this is also why government should quickly and properly implement its idea of bringing back a new INDECO as it will also help the public sector to strive as much as the private sector is currently growing.
He says what government should however first do is to ensure that it comes up with a legal framework by taking a bill Parliament on which INDECO should be established.
Dr. Chitala says a good legal frame under INDECO should exist will further bring about good governance in its operations.
However Lusaka business man Maurice Sokoni has said that plans by the Patriotic Front (PF) government to re-establish the UNIP parastatal, the Industrial Development Company-INDECO will not economically benefit Zambians.
Sokoni said that the move to re-introduce INDECO is aimed at taking the country back to the Kaunda era of authoritarian control of socialist economies.
Sokoni told the Daily Nation that pronouncements made by President Michael Sata in his New Year address to the nation that it will help create jobs is far from the truth.
Sokoni said that the government wants to destroy everything that Zambia had built in the past 20 years by re-establishing INDECO.
He said re-introducing INDECO was the same as re-introducing inefficiency in the private sector.
Sokoni said the plans would only promote patronage adding that it would kill individual initiative which private companies have enjoyed in the past 20 years.
Sokoni further said the plan should be condemned by all well-meaning Zambians who understood how INDECO failed during the Kaunda reign.
He said it was unfortunate and surprising that some economists were supporting the government’s plans of the re-establishment of INDECO.
Are these the best brains we have pa zed?? Going back to useless economic policies which clearly failed. One wonders what exactly is happening within GRZ. About time the young took over from the management of our country. It is very clear that the oldies are running out of ideas on how to solve the many problems that our country faces hence they go back to expired ideas that have no place today. This has nothing to do with developing the country but political vanity by useless socialist politicians bent on destroying the many achievements over the last 20 years.
This is the only thing this Government has got right perhaps by chance – because it was not it was not in their Manifesto but STILL right nevertheless!
What did CRITICS achieve over the last 20 years? NOTHING! We now even find imported charcoal in Shoprite; Cant even repair vehicles when Lenco used to manufacture Buses; Everyone now is a casual worker in Zambia when we used to have decent Permanent jobs like they have in UK; etc
We are going back to Normality after all AND we are also encouraging people to set up their own private businesses – no one stopping people to do that.
There is no leadership code stopping politicians from setting up private enterprises – it’s free for ALL. Good days are here again!!
@ Chilyata….How can you say that this a good thing when they are simply making the same mistakes of the past? You forget that Sata was part of the first chiluba administration which rightly got rid these useless economic policies and introduced free market economics. Why did sata not descent when INDECO was abolished??We have failed politicians for failed policies. You talk about imported charcoal..what about the price of Ubunga…and the debacle they have presided over when it comes to agriculture. Not to mention the much reduced standard of living. Everything is going back..going back to the KK era. A paradise for ardent socialists like Sata but hell for the poor ordinary Zambian
@ LusakaBoy: I do not know what you do and your level of education. Without boasting, I have worked in Zambia and am now working in the UK at a Director Level. I am not PF but a fully paid member of the UPND!
However the Zambian Govt is right by directly investing in its economy – that happens even in the West.
The UK Govt has investments in BP; Westlands; Rover Group; British Aerospace; National Housing Corporation, Ship Building etc
Zambians like you want the Govt to reduce the price of mealie meal – why? Govt cant do everything! There is free land but Zambians shun farming – it’s dirty but still want to eat!
In UK white 16 year olds do cleaning jobs to help parents pay bill. The Govt is not there to feed people! Change your mind set. Come to London if you want to grow up…
Just some points to note…I to I’m based in the UK but a student of Accountancy and Finance. I’m not were you are when it comes to work etc but getting there. Coming to the issue at hand. You spoke about the UK investments in BAE etc…Yes the government has had a stake in these entities. As you will know they were once public companies only to be privatized in the 80s by the Conservatives. Indeed I agree with you that govt should invest in things like Housing, Transport etc…but not the creation of companies under a body like INDECO..Or any other body created by the state and supervised by the state..hence the reason I point out about going back to past mistakes. I am a classical liberal in terms of economics let the private sector create companies not an apparatus of the state. Nite…
This is the resurgence of the Zambian Enterprise, chaired by the CEO of the Enterprise himself. Shares ought to be floated on LuSE, Euronex and NYSE just like it was in the beginning.
Eventually, all industries would have to be stand-alone franchises with their own board of directors in readiness for leveraged buyouts to be co-owned by employees, management and shareholders in the open market.
This is the easiest way to create the Zambian Oligarchy the way the Russians did in the early 1990s thereby creating the first wave of Russian billionaires. I am so glad my Zambia is coming back … kudos to all involved, when I say the smart people of the Zambian Enterprise deserve better, I mean it!!!
A million jobs! Immediately one starts like that, just know the idea behind it is a political campaign strategy. Not a business. Businesses are strategically enhanced by shifting responsibility from government into entrepreneurs. There are a lot initiatives in Zambia to be killed by this Indeco as before, because the criteria for selection will be loyalty rather than entrepreneurship. We will have five years to evaluate the nonsense, and someone will still be saying bail the businesses out. We simply do not have the capacity to support such infrastructures. We better support the businesses in place, many young intrepreneurs are struggling with credit being the only injection because they have ideas. This has been done in the last twenty years.
Ba Chilyata i think this is not the question of where you are based, but rather us asking practical examples like what happened to INDECO in the 80’s and quasi government run business like ZESCO today.
a. Under INDECO we hard UBZ- a bus company. People used to sleep at KMB station in Kitwe for weeks waiting for a bus to travel to Mpika, Katete, Kabompo,Mongu etc.
b. INDECO, we had Superloaf company – a Bread Baker, you had to get up 4am in Kitwe to go line up to this simple commodity and that was no guarantee you will get one.
c. Imagine traveling from Kitwe to Luanshya just because that’s were the rumor of mealie meal was- Milling companies where being run by INDECO.
Tell us what will be different from today, as we see the inefficiency of ZESCO controlled by government.
If people were given a choice to choose between ZESCO ran by a foreign company, sending the all profits back to China with 100% Chiness workforce with guaranteed supply of Electric power AND ZESCO run by government without guaranteed power supply.
People will choose Chinese Company all day long. This is what we are talking about. Government should fix the mess at ZESCO before taking on another assignment.
Aa reintroduction of INDECO might be a good economic prospect, but my bone of contention is with the people creating and running it. I out rightly dismiss Derick or Mbita, whatever he calls himself as he is a vulture who only takes care of his interests. Some of us can’t forget how he was the master rigger of elections and then he helped market Sata Claus to Zambians, he’s a finished product supporting this with a view of getting a job. Going back to the topic, the idea might be right but look at the people championing the creation of INDECO, in the first place Sata Claus is not an economist and clearly doesn’t understand liberal business politics. We will end up with people like Willie Nsanda and such fools running the parastatals and it will be another quagmire of stolen resources.
I really do not understand people like Chitala and Guy Scott. These are the people who helped dismantle the parastals in 1991 and said that the UNIP socialist policies were not good for Zambia.
What has changed in the last 23 years for Chitala and Guy Scott who were so hostile towards parastatals to think they are good for the Zambian economy?
What is really happening with Zambia. Are you also going to reintroduce the National Planning Commission ? I think PF just wants to use INDECO to syphone money from state confers and the private sector in order to finance their campaign in 2016.
What has changed now is that they have realized that there was a mistake with the abolishment of INDECO hence it has to come back. I like the idea because some Zambians will be employed,
This man was deputy minister of commerce and trade or finamce while late Dean Mung’omba was fimo fimo, together in 1996 or so started selling out these companies including ZADL TBZ etc. By the way Ba SATA who got Tobacco Board of Zambia assets like Land , Tractors, Houses, furniture etc
what about Namboard assets, I now houses in Northmead, where we were brought up////
The problem actually is not Govt – it’s the mental attitude of Zambians who expect their Govt to feed fully grown up citizens.
The role of Govt is to create an enabling envorinment for people to be able to feed themselves. So if INDECO creates manufacturing industries, there will be many jobs where will be able to work and feed themselves. Govt is not there to reduce mealie meal or petrol prices, etc NO.
Zambians like nice free things without sweating for them! Mealie meal is expensive because many people shun farming and leave it to few villagers YET they still want to eat and expect maize flour to be cheap!
With plenty of land and keeping many unemployed relatives, you find Zambians buying vegetables instead of growing them!
Change your mind set otherwise no Govt will feed you!!
@Chilyata. I am impressed! I now know that you are not a senseless cadre who just insults and oppose anything and everything the government does.
So KK and UNIP are back at the PF state house. To think of re-introducing INDECO & ZIMCO is actually a confirmation of the failed PF governance. ZWD have been right over this since 2011.
As for Derrick Fitala ( Is he Chitala or Fitala?, knowing that he changed his name from Derrick to Bitter), its clear that he is looking for a job. He has been doing so from Ukwa since 2011. But Ukwa will never give Fitala a job because of his days at ZADECO. Why cant Fitala revive ZADECO even if it will be a one man party like the one woman party of Nawakwi FDD>
Mr. Chitala, this is not the honorable way to look for a job in the proposed INDECO. You don’t have to mislead the nation in order to get noticed and position yourself for a job. That is sabotage! We all know that no real economic benefits will come out of the creation of bureaucratic structure like Indeco, but rather, a very unnecessary drain on resources.
whats even more shocking is that Mr Chitala is now a political activist not a potitician,,,, hunger is somthing
Mbita wants a job. INDECO will create jobs for tribesmen and cadres like Chitala. This is what happened in Kaunda time. Every UNIP member of the Central Committe had a list of which cadre/relative should be employed and where. Govt can invest in para- and private companies but not creating a useless monister to start paying ZIMCO conditions of service.
You have denied someone a job.
Am shock to the same people sold these companies are going back to the vomits. I need to be helped. Pa zed……..no direction
Ba Chitala is already looking for a job as MD in one of the companies to be forned under INDECO
This looks like a shameless job application by Chitala into the so called ‘revived’ INDECO.
C’mon spare us please. We lived through that period and it is something we would rather not repeat- Imagine Sata as Boardchairman of that Indeco . That alone should send a shiver down your spine Mbita.
If PF are serious we could have an open national discourse on this matter- and I bet PF do not have any convincing and valid reasons for wanting to reintroduce Indeco other than that they are worried about 2016. The empirical evidence is stacked against this misadventure.
I sense opportunism in the remarks attributed to Mbita. It has become fashionable for him to comment on topical issues in a manner calculated to draw attention. Remember how Mbita thought Gaddafi was the best guy around and that all Africa should yield to Gaddafi. Mbita , have u seen how dictators end ?
So KK and UNIP are back at the PF state house. To think of re-introducing INDECO & ZIMCO is actually a confirmation of the failed PF governance. ZWD have been right over this since 2011.
As for Derrick Fitala ( Is he Chitala or Fitala?, knowing that he changed his name from Derrick to Bitter), its clear that he is looking for a job. He has been doing so from Ukwa since 2011. But Ukwa will never give Fitala a job because of his days at ZADECO. Why cant Fitala revive ZADECO even if it will be a one man party like the one woman party of Nawakwi FDD>
To say I am shocked with the statement attributed to Derick Chitala is an understatement. Will I be wrong to assume that the political activist is looking for a job from incoming INDECO Chairman?
Young people with education and proper understanding of today’s economies MUST openly hold discussions on this matter to map the way forward. Yes, INDECO did fail somewhat but not in it’s entirety. We are so quick at blaming the government and yet it is us with the education that are entrusted to run the entities but fail to make them profitable. All we are interested in is to put money in our pockets. We just happen to be a bunch of selfish people with no love for the poor. Probably what we need is a different name for the establishment that would be set up to create the needed jobs. The bottom line however, is that those that have bright ideas must table them for discussion.
You have a point, BUT you also need to take into consideration that our political landscape does not allow parastatals to operate independently and professionally. The appointments are not done on merit, bloated workforce is the order of the day, syphoning money to fund political activities has been a norm. This is not just about PF or MMD, it’s engraved in all politicians, even if NAREP comes into power tomorrow, the trend may not change because the President and his ministers have too much powers which are not regulated.
Sokoni and you rubbishing the idea of lndeco are just sick heads.U are writing out of the demon of greedness.Be objective.The reasons u are giving are unreasonable.The fears u have are not genuine.
These are hopeless tactics of a debater suffering from intellectual bankruptcy! Focus on the topic. Explain why you don’t agree with a given point of view not characterizing debaters. Ubututu muleke!
Bitter chitala. You think sata will give you CEO post in INDECO No ways bwana. We are burrying sata soon.
Sokoni how far did you go in school? You don’t seem to understand the role of INDECO. It will have nothing to do with private business control. Companies like Zamtel and Zesco will be under indevo and not your kantemba.
I have been reading through the comments on INDECO articles and I am still not sure what arguments those against the idea are putting across. All I can see is angry people saying this did not work when it was done initially. What is this? INDECO? Or the economic principle of “State Intervention” aimed at stimulating the economy?
Would you rather it was not called INDECO as I am not sure I understand what you are arguing against.
This principle has been applied so widely around the world with repeatable and proven outcomes in the USA, Europe, Asia, etc.
What actually is the problem? What do you propose the government does as an alternative to this? Are you folks really serious about solving national issues or are you just interested in making noise? Well then what do you propose…
You are spot on! What is in the name? I think the name INDECO, FINDECO and MINDECO are the only things Zambians can remember.. ohhh and MAZOI, SURF and STORK margarine. Communist China is buying British Companies using public funds. Successful companies in South Korea are public companies. What is in privatization? Zamtel is a disaster, so is ZESCO. Show me a well run company in Zambia!
Please give us an insight of indeco and it pros towardsour economy?
INDECO is meant to serve as an umbrella or vehicle through which the government can channel and manage all its investments in the economy. In other countries these may be housed under the Treasury, the Federal Reserve, Investment Vehicles or Sovereign Funds. The fundamental principle behind these are for the government to allocate some of the funds into either setting up new companies all together or buy shares into existing companies. The objective is NOT to replace a free market economy with the State controlled economy. It is rather to stir investments into areas that the private sectors would ordinarily be reluctant to invest in but which are vital for the purpose of stimulating the broader economy. We should be debating the best way to IMPLEMENT this because the principle is sound.
This principle has been applied all over the world! What principle? Check your facts right and when you have made a thorough study’s the business environments and business strategies engaged, come back to us about why you think the model will work in the Zambian business environment. The announcement did not even make a general suggestion about a body,it referred to well known failed initiative. Not even some fesearch of some sort. Go to think tanks and hear what suggestions about such a body. If you are talking about the USA, you well know the USA has a well established cultures of upholding talent, skill and specialisation, while in Zambia it is a patronage approach. You dream of a body to pay patronage to politics and business is secondary. The power of the USA. President is enshrined
indeco come out of the zambianization unip policy which did not work well as well trained expatriates left the country at a time zambia needed there services.Mandela unlike kaunda did not chase de whites but encouraged all blacks and whites to have equal orpotunities and south africa is dowing fine.USA embresed the jews and nationals in its quest to develop.All need is put up policies that will help all zambian citezens develop this country.let us be inclusive and adopt mixed econimic policies.Government should not actively take part in business otherwise there will no referee to control competition.
Yamoneka inchito ba Chitala ka?
Nothing wrong with that – is there? Did you want a Mwenye or MOP to run it?
If I were against this I would sit back, let it happen and see how far it goes in the next 18 months.
If I were for this I would sit back, let it happen and see how far it goes in the next 18 months.
Darn. I actually don’t know. I like proactive talk but hate déjà vu. I think even the so called West through various bodies acts like this but they have more at their disposal in terms of resource to handle outcomes and the whole third world to use for milking and shaming as necessary… Hmm. Okay I vote no to anything that resembles old mistakes but yes to harnessing diasporan and local talent to help you through a development body of some kind. Zambian private sector is what needs the boost.
But an ordinary Zambian has not means except fake Zambians like Mwenyes!
May be not call it Indeco but something else Yes viable parastatals companies were left un coordinated and without synergy fell to pull through.Like said below all successful private enterprises so large and longterm have had a seed and nature of Gov at start up and offen natured even when offloaded to be private or in equity with Gov , You simply can not leave everything to private who often have a shoterm horizon than Gov and often surprise you when you need them most to consolidate your economic gains A mix of investments by private and Gov is a norm especially in value businesses that are considered non green by blue chip You need to have also all areas industrialised accord
Which viable companies are these?
Why do people like dropping titles. Mututinye, ka? Oooooh!
There is one individual who is supporting this INDECO issue very seriously. Is it Dr M the advisor to the plot 1 who.
Take life and digest what others are saying.
The current man is seen it all from 1953 through 1969, 1974 FNDP, 1980, 1991, 2001 when he was disappointed.
in 50 years he has learnt nothing because INDECO was not in his plan
Its like a seed and develop then harvest for placement to be run by private Citizenry and not indeco being too big to fail I have followed some of these similar companies on market lines and report services on major stock exchanges and industrial sectors what Yamba yamba wrote and brought about China Us and others should also be true and correct for Zambians.Its not like stifling private initiates but rather modeling the economy longterm addressing key fundamentals of development Unless you are so attractive without global trotting and singing the wooing investor song for ages with a thinking that only foreigners then Indeco as a seed company is a solution You cannot live it private
Fake financial analyst with subpar english and analytical skils.
Zambians – when a proposal is put forward let us sit down, reflect on what is being proposed and even do some research on it. Let us be serious about things – no one is going to solve our problems but ourselves and we will never do anything if we just criticise everything. It is alright to oppose something but do offer alternative proposals otherwise just shut up because you clearly do not know any better than the people who are proposing what you are opposing. We all want PERFECT solutions, PERFECT proposals. But where are they? Where are these perfect proposals? The English say, “Let us not let PERFECTION get in the way of doing anything”. You can sit around forever waiting for a PERFECT plan or you get your ass up and start doing something, anything. Which one is it going to be?
Hallelujah @Kaonga!
It is amazing how most Zambians are simply good at TALKING and not DOING. It whole appears alien to them if they see someone who is really DOING something about a problem. They would rather sit on their @sses, drink alcohol, and sound-off while staring at their college degrees hanging on the wall. Well, you can have all the brilliant ideas in the world but if you are not willing to try them and make mistakes as part of the learning process, what GOOD does that accomplish?
Govt has made a proposal, now lets have counter proposals from those opposed to this. Rather than just saying it is a bad idea to bring back INDECO, what good ideas do you folks have? Mind you, we also tried a HANDS-OFF approach for almost 20 years of the MMD, but with mixed results too!
It’s not even that way, no one said let’s institute a research.
Iwe Kaonga,
You need to identify a problem first for you to evaluated the fitness of a proposed solution. Sata has not stated the problem. Creating jobs is not “the problem.” Need I say more?
Spot on…we remember that era like yesterday even though some of us were at school, remember those Director Generals. One has to look at ZRL they couldn’t find or advertise that vacancy after the Chriwa debacle BUT they had to handpick again a stooge in the name of Muyenga Atanga, I can only imagine how many PF cadres they will line up for this particular task.
Curently ZESCO and ZAMTEL are not doing well.For ZAMTEL its worse.The sitiution is worse than when run by lap green.Check facts out most of the top Executives in ZAMTEL were hand picked.PF has shown us that they are not capable to run business in an ethical manner.I tick them off.Unlike in China were corruption is purnished by dearth,what will stop the likes of willie Sanda to be CEO of INDECO.
Re-introduction of stupidity and ill concieved and illprepared plans is long overdue to be kicked in the butt for those foolz implementing it.
Has this guy ever smiled in his life?
Chitala still hunting for a job
Whatever companies will be created under INDECO will not be able to compete against private ones when it comes to profitability, efficiency and professionalism because INDECO will employ unqualified grade 6 chaps based on PF or family affiliation. This will force Sata to implement uncompetitive policies favouring INDECO companies and stifling the private sector.
UNIP all over again!!!
You are wrong even grade six are better than the so called Zambian graduates.Show US what yo have done for this country , you can not even make a toy car shame on you.
I support this initiative well done.We need competition.
Why is it many companies are folding up in the WESTERN WORLD WHERE THE PRIVATE SECTOR IS THE MAJOR PLAYER DO NOT BE CHEATED
Which private companies are you talking about? The ones that externalize profits? The Chinese ones that bring their own from cleaner to CEO? The South African Companies that set up shops and import all or lol perhaps the mines that only allowed you to be suppliers for a bit and now u are not even a supplier? Won’t compete with private sector? Yangu
Welldone, how do you know Chilala has not made a toy car? Chip-shots….is that all you can do?
Indeco or its revival is not the issue.Our biggest issue is skillful management or lack thereof.Foolz always invest 1st,then go test their capacity to manage while wisemen work on their capacity to manage 1st,then go invest or borrow.
Dull Zambians who says the private sector is very efficient ,thousand of companies are closing wide world.We support this move well done HE Sata. We need jobs as Zambians the private should compete.USA has done the same in the health sector.
We can run State farms and produce the much needed Soya beans,Maize,sun flower and wheat.China is ready to fund these projects.
Sata is a great leader.Come 2016 the opposition will have no message trust me.
@Welldone He will Sata make INDECO more competitive than private firms?
Welldone…ever heard of the term compound term “crowding out”?
ull Zambians who says the private sector is very efficient ,thousand of companies are closing world wide.We support this move well done HE Sata.
We need jobs as Zambians the private sector should compete.USA has done the same in the health sector.
We can run State farms and produce the much needed Soya beans,Maize,sun flower and wheat.China is ready to fund these projects.We will build dams for irrigation,why should we send 70% of fresh water to the Indian ocean?
Sata is a great leader.Come 2016 the opposition will have no message trust me.
To you Well Done:
If Sata is a great leader to you, then you must have failed the grade 9 or form 3 exams after being pushed into grade 8 or form 1 by the corrupt educational system. Even my 10 year old daughter is embarrassed at her school to associate herself with presidency of Sata.
With people lke you WellDone, no wonder this nation will continue to wallow in poverty because of your I.D.O.T.I.OC. choice of failed leadership.
How we miss Mwanawasa. He was indeed a leader that brought up some meaningful change in the economic lives. Sata is a devourer.
Just a reminder to Zambians. The Indeco under UNIP survived on state protection from competition and price controls. Indeco companies such as Mansa Batteries, Zambia Breweries etc could not make profits because of sub-economic prices charged on their goods and survived on subsidised from very few profitable companies within the group and direct cash transfers from the treasury. The low quality products were also sheltered on the local market by import restrictions. Due to limited installed capacity, lack of raw materials and other vital inputs local demand could not be met resulting in queues and corruption. MMD liberalised and Indeco died a quick natural death from uncompetitiveness. Is Zambia going to quit COMESA and WTO to protect Indeco?? Let us debate the real issues now…..
@ Let me say this:
There are naive people like you who really dont understand how economies work and yet pretend to know everything when you actually dont!!
Protection of local industries is practised all over the world to grow local industries and this is recognised by regional bodies like EEC, SADC, ECOWAS, and yet even WTO, etc.
For example, the EEC restricts the importation of beef from the USA and Brazil to Europe to protect their Beef industry from cheep imports.
Similary, the UK (through the EEC) restricts the importation of fresh Vegetables and flowers from Zambia and other African countries. So why should any other country including Zambia not protect theirs?
Don’t just criticise blindly – things are not as simple and straight fwd as you think – USE YOUR HEAD TO THINK!!
Let us focus on what is on the ground in Zambia today. Today’s mealie meal and fuel shortages, real estate (Indeco, Findeco House, till now ZNBS building etc), dillapidation are still under state control. The Lusaka Show grounds, International Trade Fair grounds in Ndola are in terrible shape. Water transport on the lakes in Luapula and Mongu and Kalabo water ways have no reliable boats while pontoons are limping (or is it listing). UNZA, CBU, Mulungushi Public Universities are struggling and more strugglers are being built. If PF govt proposed an investment company to uplift these and many other struggling SOEs, I would welcome Indeco. Dr Chitala and others maybe looking forward to executive positions in Indeco since govt ministerial positions are limited.
@ Let me say this:
Of course – those eyesores were not there because there were (state) companies that were maintaining buildings etc.
When you and Chiluba killed those companies, you left a vacuum and today we there are no private companies to provide such less profitable but ESSENTIAL public services! I hope you now understand a little bit of the issues at hand!!
Chilyata, waitaya mwana. You are debating on the periphery…be specific. What vacuum did the restructuring create?
@24Chilala, you are so right. With one master stroke, private companies competing with parastatals will be killed, banks, manufacturing, cargo, transport all will be killed. May be that is what they want.
I do not envy HH , it will be a mammoth task to undo the mess PF will leave behind. Zambia is better off Sata buried now than kicked out in 2016.
Where will be find the money to start or buy all productive companies?
Do his economic advisors and all those praising this move know one basic rule of economics- demand and supply. If state creates a big manufacturing company many small companies in the same sector will be forced to close.
Net effect will be Zero, jobs created in parastatals lost in private sector.
The worst curse to hit our land is the multitude of spineless intellectuals who are always ready to sing whichever song a head of state sings. So many republics same educated minds shifting their stances on everything. Is being very educated and jobless such a curse. Put your brains to good use by starting your own successful private businesses and I will listen…the next cartoon is on you!
The way you approach debate is as follows:
1. What is the issue you have identified?
2. Is this a real issue or some made up problem?
3. If it is a real issue, what solution are you proposing?
4. How are you going to go about implementing this solution?
5. Are you able to highlight examples of where your proposed solution has been implemented in the manner you are suggesting and has worked?
6. Are you able to highlight examples of where your proposed solution has been implemented in the manner you are suggesting and has not worked?
7. Is there any lessons we can learn from any failed implementation of your solution to ensure we avoid making similar mistakes?
8. Are there any alternative solutions to this issue?
Answers
1. We are not attracting enough private investment in the broader economy resulting in many of our people unable to find work. We need to do something to address this problem and find ways to get many Zambians into meaningful formal employment.
2. This is a real issue, unemployment rate in our country is well over 80%.
3. We are proposing State intervention – private investment alone is not creating enough jobs to address this issue.
4. The government should setup an investment vehicle and through that channel finds into the economy by way of SOE and helping struggling firms to become productive through the buying in of shares in those businesses.
….. this is the objective and productive way to approach a debate. Focus on the issue, the proposed or alternative solutions
But you have no money?
Italian Presidential Material – This is what I mean about being serious regarding national matters. Your statement clearly demonstrates someone who has no Interest whatsoever in finding a solution to this issue but someone who just want to derail anything anyone proposes to do. With people like you there is no wining and you will oppose anything and whichever angle of debate anyone is. You are what is referred to as the Nay Sayers.
Frankily if you are not able to demonstrate maturity in your debate, I am really sorry but there is just not many people (not me anyway) who have time for your pointless, aimless tit-for-tat negativity!
What we need from you are proposals to address this issue! What do you propose we do? This is not a problem for a few of the people! It is for us all!
We dont have zambian capitalists,this is why no zambian is owning a copper mine…i see INDECO as a way of helping zambians to run as capitalists…..
I can not believe your comment on this issue Mbita.Your DNA in MMD and their policies can be seen without a microscope and today you can say this ?
Let us be practical. How many of us here know that almost all chinese companies that are doing massive construction of our roads, schools, hospitals, hydro-electric stations etc are actually state owned? Do your research. Some time back I was genuinely impressed when Zanaco (B4 privatisation) was almost taking over a bank in Malawi. Indeed, those against, tell us how to solve this unemployment problem and economic empowerment for our people. Abash paralysis due to analysis, let us get to work. Any form of productivity should be encoutaged.
Infact, the best models to learn from are the chinese. Why do you think Bank of China is in Zambia? You think Barclays Bank would support a chinese company building a road in Luwingu? These people have mastered the art of combining strategic thinking, harnessing and applying technology, effective enterprenuership, management using private sector ideals and the results. They have done it @ home & now they are all over the world. Go where they doing roads, you won’t find a Scania truck or Mazembe Caterpillar. You will find similar equipment but made in China. It takes time, strategic thinking, investment and building synergies. What type of a country are we who cannot even produce a slasher, when previously we were making truck trailers and bus bodies?
Do not mean to rain on your parade but a shave would do sir. Or a mere smile!
I want to agree with Kay above; Govt with institutions of higher learning (such as UNZA, CBU, NORTEC, ZICAS etc) should start offering special studies that simulate how to run big corporate institutions such as Mines, Banks, Big construction companies, Electronics/technology companies and major vehicle parts manufacturing firms etc. Transplant what is happening in the real industry and train people to think like CEOs. Imagine have guest lecturers such as Bill Gates or Dangote or the CEO of Samsung. This will stimulate young Zambians to aspire to own mines in future not just crying for foreign investors. Our people are currently being trained to be workers and we wonder why there is no serious local enterpreneurs! The way you train a corporal is not thesame way you train a General
Very archaic thinking. No wonder UNZA is ranked number 60 among Africa’s top universities while neighbouring University of Dar Es Salaam is ranked number three! The quality of education being offered by UNZA is showing.
It has been said that you cannot teach an old dog new tricks. And yet Zambians, after nearly fifty years of independence, can afford to appoint Mr. Michael Sata, a man devoid of any basic education to be the country’s CEO, deputised by Mr. Guy Scot and Mr. Alexander Chikwanda as the CFO! Has there ever been a bigger joke than this?
Typical Zambian. Talk, talk, talk, no suggestion
Mbita is NOT a political activist. He is a failed politician cul rejected PF cadre hoping for CEO of a moribund ZIMCO/INDECO
In support of this good idea, If you are attractive in resources you simply do not sing for private foreign investors they simply follow you and place their investments Now for my Friend ENKa its important to understand the firms structures in economic analysis and how far private can support before the breath eventual die off either due to competition or voluntary if there is no Gov. intervention you have it like in Europe and US.They start normally in perfect competition, then monopolistic, then oligopoly then duo poly and eventually monopoly with each stage reduction in employment and increase I social unrest Left alone private investments is not a solution long-term to employment and pric
A state sponsored enterprise ensures that the above is smoothened and no losses to either in the market forces as people so much are preaching about. Please understand that investors have a short-term horizon than gov and simply left to them the economy is confused without smoothing Its not enough to play monetary or fiscal policy as proven and seen by BEN If you cannot attract lead turn around and place for private investments and eventually maybe an IPO especially local minds to move forwards then the economy will be very solid
Please avoid the “sovereign wealthy” thinking as the only investments there is its not sustainable most of them are scalpers with a shorterm arbitrage view
Yamunyokola njala mambala………….he wants to be heard saying something so that he can be appointed some deputy minister somewhere coz of course full ministerial positions are reserved for muchinga province and its associate
Next time research and see then analyse and see the thinking.Of course its important to take the comments above
There is either traders or procurement specialists now in Zambia not creators of industries or lead initiators amongst the so called investors.Be careful also of destructive poison pill like mergers and acquisitions in the so called private investors that is why you end up having imported tissues soap charcoal and kapenta including chicken and breams but still have resources from which you yourselves can create value instead of the nortion or Private foreign procurement traders and procurement specialists creating value and Jobs across with you simply being content with…
As a starting point, one of the enterprises to be established should involve manufacturing of copper related products like huge power transformers so that we stop importing them from Chinese and Indian government enterprises like Bharat heavy electricals. We should take advantage of our strength(copper)
Government should involve itself in production of simple things like bread(super loaf) or mealie meal. This should be left to Zambian business men who I strongly advise not to arm twist government.
Oops! I meant ‘government should not involve itself in production of simple things like bread and maize meal(nshima).’
As I close my contribution on LT and remain a spectator I want to urgue my fellow professionals to spend time to read the firms industries Nations and the Global at large and position our beautiful country Zambia well off avoid being noise bloggers and make the owner of this good site proud
Stop importing tissue and soap and selling it in spar or Shoprite on the other hand crying employment numbers
Read the times and be analytical spending a little on key human resource to shape Zambia
Read the times and see to fit long-term avoiding implementing Toll gates when others going e toil
Thanks a lot gone underground to learn quietly and contribute will still follow LT…
Me too support the re introduction of Indeco
Good morning
Mr. Chitala is right and I’m glad I ‘m not the only one here to see sense in what he is saying.
A lot of critics against the government’s decision to revive INDECO are simply powered by emotions like hate for the leadership and fear of failing. I would advise most peopleto do their research on the role of the state in industrial development of first world nations. They will probably be surprised to learn that nearly ALL the rich western counries have a record of establishing state-owned industries first before they grew up to liberalise for foreign investment.
Off course – lets learn to give people some credit. People proposing and supporting this are no fools and you can bet the government has consulted some of the best economist about. Some of the people opposing this are students who are just reading books yet on the other side we have professionals who have dedicated their lives working and consulting and advising governments, International and multinational organisations.
If you do not like this government that’s fine but not liking a government is no valid argument aggainst this economic policy.
This is a no brainer!
We’ve been knocking on investers doors for 20 years, we’ve even gone to the extent of giving them tax holidays but what have we gained from leaving the manufacturing sector in private hands?only 1 out of over 100 Zambians is employed as a casual woker. calgate, cheap Chinese cloths and salaula are imported…muleumfwako insoni. I believe you just dont want Sata to succede in his quest to create employment.Do you expect INDECO jobs to go to those who dont believe in it? Of course the likes of Chitala must be employed because they have seen how ungrateful the investers are, and also because they believe in the INDECO dream. And lastly to the opposers, just wait for your time in 2041 so that you can come and privatese. Very soon other African countries will do the same.we need decent jobs…
They think Zambia is the only country to embark on industrial nationalization. As far as I know, our neighbours in South Africa and Namibia have successfully implemented simillar projects under the Economic Empowerement Programme (EEP).
We continue to help and learn from others but not being personal Its futile to contribute on foreign blogs and media on Zambian issues than on LT.
We continue its been interesting to read and follow the minds and well thoughts of some bloggers I find yamba yamba well researched
The governments idea in itself is OK the challenge for me is that the name INDECO is first associated with a history of failure. Secondly we can attempt to Industrialise again at our own peril. Small countries around the world have successfully focussed on improving human resource, higher education and health and then harnessed this into niche industries and technologies. With our current
low regard for zambian human capital and schools and universitires without suffucient facilities and staff to teach mathematics and science we are poised to import the the shareholders, management skilled workforce and beneficiaries from abroad the same way we have exported the construction budget from our treasury to China. IT here in my opinion beats heavy industry.white vs blue collar jobs.
In my learning with Americans and South Africans including Namibians and Swanas is that they are passionate about good thinking that improves there well being and the gains for their countries
That is why they don’t shy in mopping away our best brains and keep them nicely to our disadvantage I like them because they have core values that enshrines national development long-term and have policies and carefully set out long-term for national economic prosperity If we have to learn lets learn and be passionate
The Americans correctly will advise you that there is no national security if you are not in charge of your economy and simply leave it to the whip You simply not in charge a…
Chitala, my name is similar to you, we come from same tribe, I support you for Director-General of INDECO provided you make me chief executive of one of the first companies. I will provide jobs to your children and my children.
You nondescript economists surprise me. you have been quiete for 33 years without any suggestion in the industrial growth of Zambia. You are now saying its long over due.
We mwance Chitala wewe Dr. of some learning. Vi vino walanda vyonona tonsi tuno wasambilila. Vite umaembuka. Ciza uli?
Considering the “spatial organization of multinational firms” its better you establish your own and allow them to complement and participate with yourselves either in equity or by side by side with you.
Industries tend to stay where initially established longterm
@Chilyata are you sure that there no ordinary zambians with enough capital to start their own enterprises?
What hinders most Zambians from starting serious industrial undertakings are the following;the fact that imported competing products are several times cheaper than the locally produced goods, some of the raw materials must be imported, the tax charged on locally produced goods is prohibitive.
Re-introduce Indeco after a good constitution is in place and an honest non interfering government is voted in
INDECO and many parastatals failed but lessons have been learnt.The reasons for reintroducing INDECO is the failure in the labor market and government wants to intervene and this is one of its functions. Private business in Zambia and are not investing significant amounts to create sufficient jobs. Most private business (75 %) are engaged in trading imported goods thereby creating jobs for other countries.The FDI is mostly directed at the mines because the returns here, are very clear.The other sectors of the economy are suffering hence the idea to revisit INDECO. Foreign investors will not invest significantly other than the mines unless political ,labor, infrastructure risks and other risks are addressed constructively. E.g A Good constitution would deal with political risk.
Chitala a confirmed failure in life. Levy tried to help him but later fired him for not thinking straight. when he was a student at UnZA he was fighting KK over the same issues of INDECO, today he is probably looking for a job. the empty tin makes a lot of noise. Ba dereck find something else to do, you had your chance and time
Some empty argument I have come across in this thread: Local Industries need to compete.
Really?
Zambia is a net importer!
What more competition do you want?
Jobs being created in the UK and USA are private sector driven. The key question is: how will Zambia fund INDECO? Is it more borrowowing?