By Rakteem Katakey
India’s Essar Group may buy a majority stake in a Zambian state-owned refinery and is competing with Sasol Ltd. for the purchase, the Mint newspaper reported, citing persons it didn’t identify.
Zambia may take a decision on selling a stake in the 1 million metric ton-a-year Indeni refinery by March, according to the report. Essar plans to supply fuels from the plant to the Democratic Republic of Congo, Malawi and East Angola, the newspaper said.
Manish Kedia, a spokesman for the Essar Group, declined to comment when reached by telephone today.
To contact the reporter on this story: Rakteem Katakey in New Delhi at [email protected]
[Bloomberg]
and what about the ordinary Zambians? why cant provision be made for them to be shareholders in indeni?
IBANGE LIBI
its not about provisions, its about buying and selling. Anyone who has money and capacity can buy be it zambian or cambodian. The govnt has announced that it will be selling 49% equity in indeni and will return 51% in the short term. If you are interested go to the former tendar board office and get the Bid documents. dont even waste your time waiting for free provisions because they dont exist anywhere in the world not even in socialist cuba!
Again you on the ball Engines, this cry baby mentality is disheartening.
What makes it worse is that this chap has probably got some form of university education and yet he wallows in a sense of entitlement- what a shame.
IBANGE LIBI before you type the predictable line of…. where do you think Zambians will get the money?
I will help you and your likes think….. from the banks, individuals, capital markets not just in Zambia but around the world,
You and your ilk can come together draw up viable business and financial plans and projections and we can all invest in your investment fund ,firm or business. Banks and other institutions around the world can do so too.
Am sorry, i took it for granted that you could think…but i hope that helps.
Good reading.
engines if you look at how the chinese economy has grown of late it is because the chinese govt has been empowering its citizens by offering interest free loans etc. Zambia could adopt a similar model where shares are held in a trust wherby any Zambian with the money can buy into.unlike now you cant buy into the 49% neither can you buy into the 51% .We need to empower our own. I dont know about you but would you rather all assets are given away to foreigners than keeping some for our kids. They will need somewhere to start from or forever Africa will be a dark continent
Ibange Libi
Dude are you sure China gives out interest free loans? We need to closely look at how and why these loans are given out. What source did you get your info from? Share it so I can read up on it and see if the model can work for Zed. Maybe then I can tell my area MP to take it up in Parliament.
We need to get rid of the cry baby mentality and start working for a change.
Good afternoon
I wouldn’t tell if this is good for Zambia. The facts in the report are too vague and the discussion reveals a bit of propensity. I will have to do my own research on the subject. It is only then that I can make a sensible contribution.
I like contrubitions by Nine Chale in almost all cases because he sounds well balanced and sensible. Keep it up my brother. Veteran is becoming boring.
The EXIMBANK, CHINA CONSTRUCTION BANKS are some of the institutuitions that actually offer Chinese citizens and companies low interest loans. Most of the so called Chinese investors in Zambia are funded by institutions like these or directly by the chinese ministry of Finance. it is one way of reducing citizens dependence on govt. Even prisoners are given an opportunity to be empowered by sending to countries like Zambia to work as labourers and earn a living. i dont see why our govt cant put aside even 20% for citizens with the ccapacity to buy in and start playing a role in running of our own economy
Questions
Q1. Why is Indeni in its current situation, despite previous GRZ joint ventures with Agip and Total international. Why did Agip and Total sell out their 49% or 50% shares if Indeni and the market are viable.
Q2. What’s the impact and effect of govt intereference in Indeni profitability via their 50% holding
Q3. Is selling out the 49% the best and most economical solution to the Indeni saga.
Q4. What are the real issue surrounding Indeni operatiosns and profitability in Zambia and the region re exports to congo.
Q5. What’s govt long term vision – any new or second refinery? That will impact teh future profitability of Indeni as it is an old plant and may face competition from newer and more efficient refinery or refineries in Zambia.
Anyone with answers?
Govt needs to have full ownership of the refinery, new investors need to build their own refinery. that is the only way Zambia will progress. these so called investors will come get concessions once the get their money back they leave. If there is Zambian ownership a sense of ownership can apply. I dont know why Zambians believe in foreigners more than themselves.
#10 Kabwe. Good observation about foreign investors and concessions.
Surely as a nationa and a Govt, we have learned something now, having being privatising companies for 15 years or more.
Does Zambia we have muscle to flex so that we can have foreign investment at our own terms. Or are we so powerless that foreign investors get away with whatever they want. Is it a case of global competitiveness, whereby, if they dont come to Zambia, they can go to Dongo DR?
We have seen MMD-led investment in action. Do the opposition – PACT, FDD, ZDD offer alternative investment scenarios. Just to shop around.
Thumbs up to LT, at least you now quotiing other credible media. I stopped blogging on LT coz it was too much of Times of Zambia, Daily Mail, ZNBC, ZANA. Keep it up.
The first impression of Malawi vs Algeria at AFCON is so far very good,from the first whistle of the game to the last whistle of the first half Malawi is playing good and fast on the ball. Malawi leading by 2-0. so far its half time
# 2 # 3 SASOL one of the companies that is bidding for INDENI is a listed company which is privately owned, South African Govt is a shareholder and ordinary south Africans are shareholders as well. In short we are saying it is ok for ordinary South Africans to own a part of INDENI but not Ok for Zambian citizens to own their own assets. You guys where is your sense of patriotism. We need citizen empowerment. Ordinary south Africans have shares in Telkom, Multi choice, Vodacom, SASOL, etc because their govt sees the benefits of empowerment
Fascinating view points. An impression is created here that seems to suggest that Indeni is some sort of cash cow. We seem to ignore the fact that owning a business implies assuming a certain level of risk. For Indeni the risks are numerous including limited refining capability (only feedstock not crude oil can be refined i.e. a mixture of diesel, crude and condensate/naphta) due to the absence of a “cracker”, a plant in dire need of rehabilitation, poor state of the Tazama pipeline and the poor state of the “single point mooring” under the sea at Dar. Perhaps the most insightful of all comments are the questions raised by UK-Zed Observer which if remain unanswered will not resolve Indeni’s issues nor guarantee Zambia’s future oil supplies. With respect to the two bidders, see…
Zedan thabks for correcting your wrong statement. No China does not give out interest free loans but low interest loans like Zambia does thru CEEC. the problem i feel is Zambians do not have the money or even the management experience. I however would love more zambian involvement but as long as ibange and zedian spend too uch time complaing at exppense of puting our act together we are part of the losers giving out the country to foreigners
The two “bidders” on face value appear to have what it takes to run the processing plant that we call Indeni “Refinery”. However I think the negotiators of this transaction will need to be rather strategic about it and the focus should be in making Indeni a “real” refinery. This is no mean feat and conservative estimates put the task at hand in the region of US$200million or so. Further given the interesting things that are beginning to happen at Maamba and the potential that some parts of Northern Province have for coal wouldn’t it be something if Sasol’s proprietary “coal-to-liquid fuel” technology was in the future applied in Zambia…..In any case since things Chinese for some reason always make sense nowadays…Sasol is an investor in China today for this precise reason…
# 16 well said, i wish i could do more to realise Zambian ownership, but you will always find pipo like Engine, Lusakan Gigolo who will always shoot you down before you even take off. Unfortunately that is the mind set of our govt as well. as soon as you bring an idea to the table instead of looking at it , analysing it they will be quick to tell you that it wont work . if you persist spanners will be thrown your way. we are a nation of pull him down syndrome. we would rather a foreigner makes it than our own
Last one. Contrary to popular belief and consistent with some of the comments here, what Zambia lacks is management and entrepreneurial expertise. The idea of giving existing things away through IPOs, outright sales etc.is one way Govts have attempted to resolve issues wealth distribution. However the experience of such endeavours is somewhat mixed e.g. UK privatisations of state-owned infrastructure Cos (foreign ex-post utility consolidation), the Russian example (oligarchs), BEE/E in RSA etc…More sustainable and for the long term, I think government should focus on developing a cadre that has this expertise through curricula in schools and Uni and access to venture and other capital. I do not favor the CEEE model given the potential for abuse that comes with a big pot of GRZ funds.!!
The Zambian govt should give it’s own citizen’s shares in mines, this indeni deal etc …..even if it means giving them the option to do it through their payroll. As the company prospers so do Zambians. A local Zambian would not have the amount to bid in a tender but the govt can at least represent them. Zambian embassies instead of only hosting independence day drinking parties in different countries???Please present packages and programs that will encourage Zambians to invest like the Indeni ones. There are alot of young Zedians in diapora. Does anyone in MMD care about empowering Zambians????
as long as we believe in foreigners and think they are betetter than us we will never go anywhere. Indeni is our baby why should we fail to manage. These indian investors will bring chaps who cant even speak english, chaps from slum dog millionaire to come and run this compnay. we will be even saluting them when they will be busy symphoning money out of the country. our local guys will be earning $ 500 while this slum dog millionaires will be getting $ 10000 plus
Prefer Zambian and Chinese investments. The Chinese treat their employs the same way the treat Zambians. Its either hot or cold never luke warm. They either follow set weak laws thus ihuman treatment, or great treatment.
employees I meant
Cool Peter, wonderful insight…
For a long time we have used and tried a number of foreign models of economic enhancement, starting for socialist principles of Nationalisation by KK, Capitalist skims from the IMF – Structural Adjustment Program and Privatisation. All with the pros and cons bit never a holistic indigenous system planed by our own “learned” economists…
For as long as we take things straight out of the text book without adopting it to our unique situation we shall forever be genie pigs for those eager to exploit us…….
Its about time we look within for answers. China for a long time was closed and separated from the rest of the world, what were they doing? Capacity building, i would like to believe. Only when they saw that they were strong enough, did they open up.
I think its not to late to rethink our strategy as a country, we do not have to do things just because that is what the British, Russians, or Americans did…
Ibange libi, lelo taubaele. That is the most sensible thing the government has come up with on Indeni.People with money should rise to challenge. Zambians in diaspora can create a pool of funds and invest in this venture so that it can Zambian controlled.
Now ibange libe and others I have a question — is it just our leaders or all the pipo who have the PHD. ? I think it is a large part of our population that are like this. I also look at bloggers who will dispute any positive report on govrnment like reports of Luanshya mine opening or economic growth. And even that is a negative sign, What happens is while we are so bitter crtiticising leadership and shooting them at any chance, foreigners are busy reaping away