An Economist at the Norwegian Embassy has urged the Zambian Government to finance its own development in order to fully benefit from the revenues collected from the extractive industries.
Norwegian Embassy Country Economist, Olav Lundstol says Zambia will not benefit fully from the revenues collected from the extracted industries if it continues to depend on donor support.
Lundstol noted that foreign support would always attach conditions when investing in the country and hence the government would only take a small percentage from the revenues realized from the extractive industries.
“It is important for government to utilize its own resources within the country because this I linked to good governance,” he said.
He also said aid is important but that having national ownership of resources would mean that revenues collected remain in the country without conditions.
Mr. Lundstol further stated that Zambia still requires foreign aid but that it should encourage people to generate revenue from the extractive industries as this would bring development and allow the country to move towards the vision 2030.
And Lundstol says after 40 years of mining copper, Zambia would have been economically stable but that due foreign dependency it realizes lower percentages of copper earnings from the mines.
He explained that the country would have been the hub of copper mining in the region and export levels would have been higher adding that the country is rich in natural resources.
He said copper earnings would have increased to about $30 billion in the past years but that the government has had very low take.
Lundstol further urged the government to have a specialized mining tax administration and understand, scrutinize and negotiate with the companies under extractive industries.
He charged that the government does not carry out audits in the mining sector on how revenue is being generated and hence it is not aware of the export levels within the extractive industries.
Meanwhile the Norwegian government has disbursed about $60 million throughout Zambia after recognizing the gap between the government and the extractive industries.
The programme is aimed at promoting new development through encouraging the communities’ involvement in generating revenues from the resources within their areas.
ZANIS
True we need to run away from this disease called donor dependance syndrome
gone are the days when zambia had a spoon of copper in the mouth
I think this economist better shut his mouth up. They are the ones who have spoiled this MMD government. Why don’t you ask your country to cut donor Aid to Zambia. Then this MMD govt will learn to treat its citizens with respect and value and create a real environment that makes citizens generate enough money for taxes. Right now the MMD govt does not give a damn about citizens especially urban ones. As long as they can get donor aid and rural aid, the rest of us are damned. Its these donors that have spoiled this government. Abash donor AId.
Have people been reading Harvard and Oxford Educated Economist Dambisa Moyo’s book (Dead Aid) because this is not the first time the donor community (more especially Scandinavian countries) have spoken out on aid and self dependency.
I think the Norwegian economist is right and we should encourage self dependency. Let us take a leap and use some of the solutions Dambisa Moyo proposes in her book (Dead Aid). Two things might happen, we might fail miserably or succeed amazingly. We won’t know unless we try.
Norway is the richest European nation and not a member of EU. It is really Oil rich and the guys there work so hard. The west condemned Moyo’s book and now references are being made from it whether directly or not. I challenge Zambians in diaspora to start making bored decisions and suffer for the future of our children. USA is one such nation that did that and this is why its a great nation on earth. If we need not aid from outside we need those brilliant minds back home. Zambia need Zambians and this is the only way we will one day take over from the old men, right now there are doing their best in my own view because none of us is there in numbers to advise them properly. Advise is not through public networks and media but face to face am sure any one would one day listen.
Sorry there was a typo error I meant BOLD decisions and not BORED my apologises.
Good advice there, sure gone are the days of donor dependance.
Those in decision making should heed this advice. Zambias development should as a first priority depend on its Natural Resources and its Peoples ability. This will be the main source of freedom and pride. Foreign investment as important as it is must be among the other sources, because you are dealing with very sophisticated systems, creating jobs for themselves and own countries. Anybody thinking investors bring money into the country because of love are deluded and not worth being leaders. We need a serious rethink on lots of issues. Zambia shall be free, we will be free, it cant get any worse. We need to start having confidence in our own people, whether within the country or abroad.
Absolutely i concur with this economist.His understanding of sustainable real development seems to be from the same economic school of thought some of us are coming from.This is worth taking to heart.
We have for a long time talked about being independent and not dependent. Let’s put to practice our pronouncements, no more donor assistance. Let’s go for it. Is it going to kill us? The answer is no, however, some will die along the way and that is reality.
So people on the blog with foreign flags, come back and lets do it. It will only be you and I to make things work, but remember that the fruits will not be enjoyed by us but our children’s children. South Africa fought for its rights and today the people who are enjoying did not fight as their fathers and grandfathers did. So lets be wise and set a future for our children let them not live in misery as we the fathers of today.
Good evening.
This is very good advice. I hope the government takes it serious.
Very good advice from the norwegian economist. I have always thought the nordic countries are good faith partners in our zambian economic development efforts. GRZ will do well to consider this great advice.
So embarrasing.Did it really have to take a foreigner to point out these issues???
Tracy, we might have foreign flags but some do try by sending money and are trying build some businesses in Zambia using the resources from our jobs. I can assure you it is a struggle just getting things being done in time. People have taken machinery into Zambia but getting land to build does take so long, frustration starts to creep in, we are not giving up though, we will keep trying. I highly respect your passion for the country, wish we had so many looking out to work hard and improve the lives of our people, rather than stealing from them. It is criminal that a country that was similar to Malaysia has regressed rather than improved .
our politician are greedy and they dont want fresh blood in the system. and becoz people always want long term serving politician , which should not be the case, this office are meant for anyone with the right mind ,for the people.
Reuben, many thanks, I lived in diaspora for 7 years and I understand your frustrations. I moved back home leaving a good job and took over 5 years before I could get my feet into the system and have a decent job back home. I started with a contract for 4 years changed jobs got another one todate which is renewable every three years. So far I have land and a home in Kabulonga extension with partial mortgage. On the other land I have managed to put up three flats over a period of 3 years now and just got to roof level. I hope to get first tenant in December at least in one flat. This has now been almost 10 years and I can see light at the end of my own tunnel. Right now I have also started consultancy on the side and its not bad so far. In another 5 years I should be established. WE CAN.
I think every Zambian who is serious about economical emancipation must read a book by ´´Dambisa Moyo´´,Dead Aid.The europeans will never cease to donate to Africa because that way they KEEP us caged to their policies,whilst they suck our natural resources to the very end.As long as we keep on exporting raw meterials to the west, we will keep on as beggers to the west and now the east block.
Nkosi, if you have followed the British politics which i did at least. The guys starts from grassroot as councilors and these are degreed pipo. They start moving up until they are at the level of Gordon Brown. We the youth laugh at a councilor and 5 – 10 years down the line this grade 7, 10 or if lucky 12 becomes a PS, minister etc. We are to blame too we do not invest into risks. There is no sweet without sweat. WE CAN DO IT, I have started aligning myself into politics through offering free analysis to leaders and not in the press, this causes them embarassment and they react instead of listening to us.
Secretary-General Ban Ki-moon has urged young people around the world to invest their energies and bright ideas into shaping a safer, more sustainable planet.
He says in many developing countries in particular, youth — especially girls and young women — are often responsible for farming, finding water and collecting fuel wood. These tasks, he says, will be rendered more difficult – and will take even more time away from education or productive activities – as climate change affects the availability of water, agricultural productivity and the survival of ecosystems. To me this is beyond our modest politician. All they care for is claiming for $8m from ZAMTROOP. Norway is right and am really embarassed to be told by a foriegner what we need to do. I rest my case for today.
That is the most transparent advice i can hear ;;asking others to do everything for you is a great set back to development,, we must learn to do things with the rescources we have that is how development will come about..
What do you expect from a govt that believes in begging?I mean how did our forefathers survive without AID?Until we have bold players lie Prof Chirwa who can set their own conditions for their country,we will always have this begging from Swaziland to Nigeria,as if!Some Norwegian friend also ased me the same question.Why is it that Zambia needs foreigners to build even a simple tarred road for them?
VISONRY LEADERSHIP WITH DEFINATE AND CLEAR GOALS;GOOD GOVERNANCE,ROOTING OUT CORRUPTION FROM THE VERY TOP AND CONSTRUCTING OUR OWN INDUSTRIES SO WE CAN EXPORT FINISHED MERCHANDISES;IN MY OPINION THESE ARE SOME OF THE FOUNDATIONS TO ECONOMIC EMANCIPAPATION:
Isn’t this the same thing that Dambisa Moyo has been talking about in her Best Selling Book “Dead Aid: Why Aid is Not Working and How There is a Better Way For Africa”. Now that similar words have come from a white man’s mouth, may be the govt will do something about it.
Its good to receive. But when somebody gets used to it(like zambia),it becomes a problem. I think one day donors should just switch off aid to zambia and other african nations. That way, we will learn how to use what we have.If we can not extract copper and other minerals,then we will learn how to collect taxes so that we are not robbed like the way the situation is at the moment. We have enslaved ourselves because of begging! We need to come out of it by financing ou own projects! Europeans are sick and tired of us!
why do give us in the 1st place
I hope this is not just ‘an economist’ in the Norwegian government, and that this line has some kind of government sanction. If so, he deserves a standing ovation.
This has to be done through SADC, so no nation can be singled out for reprisals (Zimbabwe and the DRC come to mind).
However, what Zambia receives in ‘donor aid’ pales in comparison to the money it could received from the mines. We get $600 million in ‘donor aid’, but the mines make about $2,400 million in profit, and taxed at 50%, that would be $1,200 million per year. More than the entire budget – which is now collected from workers through PAYE income tax.
So step up to the plate, SADC, and accept this challenge.
This article is brilliant and hits the nail on the head. Zambia needs a follow policies like this to move forward and this economist from the Norwegian Embassy has given advise which the Zambian goverment should take seriously.
This article is brilliant and hits the nail on the head. Zambia needs to follow policies like this to move forward and this economist from the Norwegian Embassy has given advise which the Zambian goverment should take seriously.
True, as long as we are reliant on alms from the donors, there is no way we can claim to be independent. If aid was cut, we will learn to leave within our own means and there will be no way the likes of Chiluba could get away from stealing so much money without running the risk of colliding with the wrath of the people. It’s about time we stopped these expensive alien consumption habits for which we have neither the technology means nor monetary capacity to sustain. See, the German chancellor Angela Markel does hoce Kanitundila’s executive jet nor does Tony Blair drive around in an S500 mercedez Benz. We ought to stop this kaca of “kulimonesha ta”, everyone knows we are dead poor.
Great advise. I urge all Zambians to read the book Dead Aid authored by a Zambian Dambisa Moyo. You will agree aid has not helped Africa despite the good intentions by th rich western countries.
I doubt it if the Zambian govt doesn’t already know this!!
For as long as Zambia can access easy money from foreign govts, nothing will change in terms of govt attitude towards local sources of wealth. Remember, it takes work and effort to put in place good, well thought out, wealth generating systems. With AID available, all they do is appear to be doing something, mostly rhetorically, and wait for foreign govts or multinational institutions (WB, IMF, etc) to cut them a check.
Depending on local resources and taxpayers calls for more scrutiny and accountability, which most African govts seem to be allergic of—THIS IS THE CRUX OF THE MATTER—-not that Zed govt don’t know…
Is anyone in government listening? This guy is simply saying we have the resources but mismanagement and poor leadership is killing every hope of being self dependent. We need to run away from cheap politiking and get the country on the move. Development driven, commited leadership in government is what we need. As long as we continue putting cartoons in governance, 40 years from now some guy from these countries will say the same again. There is a nonsensical song Presido likes singing when campaigning, ” VOTE FOR OUR CANDIDATE IF DEVELOPMENT HAS TO COME TO THIS AREA.” This is silly. I believe developing the country is Zambia isgovernment’s responsibility and doesnot look at where the ruling party has representation. What nonsense.
Amen!!!!! i will drink to that.so much happening on my watch.Thinking about dictatorship.
Tracy Phiri,
Thank you for your objectivity. I have not seen your name before but those are the contributions we should be making on this blog. Many thanks.
This is the only country on earth which allows foreign investors take away huge profits out of the country and leave little for development. Being procducer of copper like any other commodity there are price fluctuations from time to time. Look at the OPEC members the oil prices fluctuate from time to time and they dont let foreign oil drilling companies not pay what is due to them. Doing away with windfall taxes in who’s interest? Who will be getting a better chunck of the benefits. All the guys are doing is maximise the shareholds net worth and by the time we realise, our copper would have bin finished and we shall remain with huge holes in the ground. Take heed of the free advice. We have so many experts in GRZ I dont what they do.
No.24 and 32,very well said.
Read between the lines. This guy is trying to tell RB and Co. that they ‘d better start mobilising their own resources as the DONORS are fed up with us Zambians.
Good advice indeed. I hope doesnt fall on deaf ears. Alot could have been archieved if GRZ could take full and transparent responsibility in managing the country’s resources. These donors see what pontential lies in our lands and keep it to themselves because they know it will compromise their stance in negotiations
3 Tracy Phiri and her BORED decisions, Zambia just needs to feed itself. we dont need to to be America. I think we need to be more independent but not isolated because it is a global village now days.
Now that the fight against corruption is visibly a flop, we should expect more of such advise from foreign donors and should henceforth gear ourselves for less and less donor aid.
Most foreign donors provide aid on condition that there is a visible and convincing fight against corruption as Obama put it clearly in his speech in Ghana, just a few months ago.
The way forward for Zambia is to invest in manufacturing industries and reduce the export of raw materials. At the moment this area of investment is not receiving the attention that it deserves.
Its like being in a house with lots of hungry kids and you dont know how to cook and use salt which you have in aburdence in your house. So you invite somebody to cook and after he finnishes he take 3 quaters of the meal for himself and you are left with a little less than nothing to feed yourself and your family. So greedy as you are you eat the remaining meal and leave the crumbs to your starving kids……
The donor’s breasts are now becoming dry due to excessive breastfeeding of lazy Africans who refuse to think on their own
zambia kapulapula mulomo wankoko
Zambia and the NDELOMBAKO syndrome.
Quote of the day: Barabbas was acquitted(Mt. 27:16ff), was innocent? Jesus was convicted, was he guilty: By Jack Kalala on Chiluba’s acqittal. MAESTROL if you are free lets digest this.
its very true we need to work had not every day asking for arms
Mother Zambia, bad manners! stop it now! Lyonse kula lomba lomba fye. Very bad manners
This is embarrassing. If our govt cant think like this economist then we are in trouble. Do we need a foreigner to tell us these things?
Africa is not poor. It is only poorly managed.
This means the problem is with management skill. Unfortunately politics of poverty are rampart too. This combination, plus having people with “no brains” at all in high offices is retrospective.
Africa is not poor. It is only poorly managed. The problem is in the head. When the head is full of trash, even if you are sitting on oil, copper or any other resources, you will still be poor.
I say it again, the problem we have is in the head. We have had several presidents and govts already. Why are we still where we are?
ViVa High copper prices. VIVA big holes under zambia ‘s earth crust. But God will save US since this MMD Govt has failed.
RB is an economist isn’t he? If he doesnt know these things already, or think like this economist, he must retire.
And what do our own Zed economist think. Wherewith EAZ? It must be embarrassing for them too to have a foreign economist lecture you about what you are sitting on.
#51,UK-Zed Observer,
RB is an empty minded economist. What do you say of an educated person with a masters in economics and yet looks to persons like King Mwati for investor connections? What economics or connections has Mswati got? As a matter of fact, Swaziland right now is one of the poorest countries in Africa. RB seeks advice from wrong people altogether! There are lots of well qualified economists in Zambia, but he overlooks them.
His old age is no doubt a contributing factor. If his adviser were well informed people, they should have advised him not to contest the 2011 presidential election. Zed will move forward if led by a well educated fresh blood.
This is just a polite way to inform Zambians that they are sick of trying to help us and seeing the leaders mismanaging resources. It does not mean aid itself is a bad thing. In Zambia’s case they can see a country with all the potential but nothing to show for it. It is quite apparent that the only people standing between the people of Zambia and prosperity is this crop of corrupt politicians. As long as these guys are around we must forget about having three meals a day or having a secure job.
#52 We Can
You are right.
Zambia may be worse off if RB continues after 2011. He certainly has not shown he is capable of taking Zambia forward.
Unfortunately, unless MMD choose another leader, we may end up having RB for President. May be the PACT will work. But so far the signs are not encouraging.
We desperately need fresh blood at the top. RB is a retired tired man.
If those in power have sense they should read between the lines. This economist’s statement speaks volumes. If anything it is also based on donor fatique. The donors are tired of putting their money in a bottomless pit called Zambia.
‘Diplomacy is a word that does not exist in the vocabulary of friends.’ CN
This is nice talk and we can do it. The bottom line however is to put it good governernce period.
ShakaZulu Ka Sezangankona,
” True, as long as we are reliant on alms from the donors, there is no way we can claim to be independent. ”
The key thing to understand is that ‘donor aid’ is not alms. This is our own money returning to us with strings attached. Do you really think that the west is taking $600 million a year out of their own money, to give to Zambia? Of course not. They give us $600 million, because WE give THEM $2400 million. That is how this works, in Zambia and in Africa. Every year, the west gives Africa $250 billion, which they can only do, because WE give THEM $1000 billion.
We produce most of the world’s gold, diamonds, copper, cobalt, platinum, chromium, much of the world’s oil, rubber, etc.
And the only way we need ‘aid’ is because we give it…
You donors are ones to blaim. You know very well that Zambia is not poor but you have encouraged these thieves to continue stealing just coz you give them money. Stop giving them money so that they start to use the zambian resources efficiently and effectively. They conive with the INFFESTORS in looting our resources while YOU DONORS JUST WATCH. Can we say you are also party of these thieves?????
If I remembe, a few months ago Dambisa Moyo had been to zambia to speak some sense to the govt. I bet they just looked at her and though who is this young lady to come and tell us how our economy should be run. The article by the Norwegian econonmist just repmhasises what Dambisa has rightly been saying all along. Wey to go Damibisa you are such an inspiration. Please people keep the fernvent prayers for our beautiful nation ascending to the heavens. God hears!
I think donor aid is not needed. we have enough resources on our own. Our govt just lacks priority. we even have enough money for our very own Rupiah to travel abroad to celebrate another country’s annivesary of a coup, not to mention the salaries of our ever failing ministers and the like. Zambia will only develop when we have leaders who are interested in uplifting communities from poverty. I think donor aid is used to cripple our minds and make us believe we cannot do it on our own, that ‘s why every year we go to beg from them and in the end they control us.
Africa is not poor. It is only poorly managed. Zambia, the real Africa.
Ala kuti epo bwacela tu lomba fye na makunkutu.
If you remember while at school and even now,u cant have a whole bottle of softie before you are asked to share it with the one begging. After school i discovered that most leadrs used to behave the same way. these are a result of veteran begging- Boyi nipaseko boyi ni gomolele ko ka tumbuwa. Boyi ni siileko guava. Everything!!! ma poor me!
” Africa is not poor. It is only poorly managed. Zambia, the real Africa. ”
Not just poorly managed, but massively exploited. The answer is: sell raw materials only through the government, and pay government market price. That would take care of 90% of all the ‘wars’ on the continent, like the coltan ‘wars’ in the DRC. Then finally, money will be available for universal healthcare and education, infrastructure, agriculture and manufacturing.
The Economist has hit the nail on the head! now the leadership shpuld heed to this message, you think they will continue financing your inept Govt? wake up,no more donor aid in the near future….so make plans to develop your little industries….
The donors double standards. You attach conditions which benefit you and a few Zambian and enslave us for life.Your advice is good but tell the truth who benifit most. Africa twasebane Viva Kapwepwe may his soul rest in peace.
Double standards. Conditions are attached to benifit the most – you, serves thieves in government and enslave us for life.The pot bellied politician rejoice when the population they are leading is malnourished oppressed wordless confused because it is the number of poor pipo they trade in with the so called donors the larger the poor pipo the reward they get in the name of fighting poverty by 2030 (rubbish they will have already died).