FINANCE Minister Alexander Chikwanda has in a move unprecedented told investors that they will lose incentives if they don’t create the jobs they pledged in their investment plans.
Mr Chikwanda said tax holidays and rebates will now be attached to job creation first as the government tries to cut down poverty levels through job creation by attracting serious investors.
His uncompromising position stems out of the sad realisation that some ‘bogus’ investors have taken advantage of Zambia’s ‘generosity’ as far as incentives are concerned and short-changed the country in the process.
“Our tax incentive regime remains one of the most generous in the region but this generosity has not translated into creation of decent employment opportunities for our people,” Mr Chikwanda said.
Mr Chikwanda adds that from now on, “tax incentives will be granted only when the investor meets their obligations related to employment creation for Zambians.”
He warns that the incentive withdrawal is not mere rhetoric but one that will be backed by a law in order to ensure that both the government and investors benefit from future partnerships.
Mr Chikwanda said a number of laws will immediately be amended to correct the situation.
“The ZDA (Zambia Development Agency) Act, the Income Tax Act and the Customs and Excise Act, will be amended to make the realisation of employment pledges by investors an essential trigger for them to access the incentives.”
In the past a mere pledge was enough to enable an investor access numerous incentives running into billions of kwacha often not even extended to local entrepreneurs who ended up being disadvantaged.
The other sad side of the past scenario is the fact that some so-called investors did leave Zambia once their tax holidays were over without leaving up to their pledges. This is about to change permanently.
The move is also expected to attract serious investors to Zambia and not the bogus one that often simply want to make short term gains as opposed to long term investment.
The PF government is targeting up to 1 million jobs in the next five years with agriculture expected to be responsible for about half a million jobs while tourism may create some 300,000 jobs and road construction will be responsible for some 30,000 new jobs.
[Zambia Daily Mail]
this man thinks good.
I smell a rat. I think this man is THE defacto president. Sata pulled a fast one on us. Well for me I don,t care as long as he delivers
DESPARATE MEASURES!!!THERE ARE BETTER WAYS OF JOB CREATION, BUT THEN THIS IS CHIMBWI NO PLAN GOVERNMENT…………..BENEFICIATION OF OUR MINERALS AND AGRO PROCESSING WITHIN ZAMBIA WOULD CREATE MILLIO OF JOBS. LET US TRY THINKING FOR A CHANGE. KNEE JERK REACTIONS WILL NEVER BEAR FRUITS. CREATE TASK TEAMS COMPRISING OF INTELLECTUALS AND ENTREPRENEURS TO EXAME WAYS OF CREATING WEALTH AND JOBS FROM OUR VAST NATURAL RESOURCES. I CRY FOR MY BELOVED ZAMBIA.
DESPARATE MEASURES!!!THERE ARE BETTER WAYS OF JOB CREATION, BUT THEN THIS IS CHIMBWI NO PLAN GOVERNMENT…………..BENEFICIATION OF OUR MINERALS AND AGRO PROCESSING WITHIN ZAMBIA WOULD CREATE MILLIONS OF JOBS. LET US TRY THINKING FOR A CHANGE. KNEE JERK REACTIONS WILL NEVER BEAR FRUITS. CREATE TASK TEAMS COMPRISING OF INTELLECTUALS AND ENTREPRENEURS TO EXAMINE WAYS OF CREATING WEALTH AND JOBS FROM OUR VAST NATURAL RESOURCES. I CRY FOR MY BELOVED ZAMBIA.
I am MMD Chief Bootlicker and I endorse this position taken by this great son of the soil, great thinker and a true hope and light in this disjointed PF Government and I pray he continues to override the majority of the meaningless voice that just can’t seem to see the big picture.\
Mr Chikwanda, you are the best and I pray your voice and wisdom continue to shine through the nonsense that tries to cloud the true direction of our great country
Mr. Chief Boot Licker! You are the man full of objectivity. Your saying son of this great soil is above party lines. I see you are NOT the one we knew before. See if you can educate the likes of PM. This is Zambia our Great country at the end of the day. Big up mate!!!
Its good to see that you have actually pointed out progress beyond party lines. This is what we need to go forward. Unfornately the main opposition leaders never see any good even when it is blatant.
Which ones are serious and which ones are bogus investors you politicians? stop blaming investors for your ineptness.Why do africans dont want to take responsibility,you want to sound like Zambia is a haven for investment,if it were true am sure you would have started with the windfall tax but alas!
Great move pf.
If MMD Chief Bootlicker can commend the plan then we are good to go in our effort to create employment. lets hear what others critics have to say on this good move.
I thought incentives where already based on investment thresholds and pledged jobs. If that is not the case then we have been cheated for long time. By foregoing taxes it means government is investing in those business and should therefore get what is pledged. There is need for the incentives to be graduated. there is not need for an investor who invests half of what they have pledged, be it in terms of dollars or jobs, to get the full incentives.
Come on this man doesn’t know what he is talking about. Jobs are always going to be created by investors. The quantities will depend on the sector and the technology to be employed. An investor in farming can create a small number of permanent jobs and a lot of seasonal jobs at harvest time. The new Brewery in Ndola will create less than 200 jobs because of the automated production processes that will be employed. What we need to do is make massive investments in infrastructure projects. The whole of Zambia needs to be connected with a first class road network. We also need to promote small businesses. Chikwanda seems to be focused only on foreign investors.
ukulanda kwlyanguka ukomba……………………………………
Thumbs up
Good in principle. Its the implementation that will count.
A damn good move from a working government, those perpetual critics better find another hobby!!!
Fool of a minister,job creation had been one of conditions for tax holiday-perhaps the enforcement part had been lacking.
Next time Mr Minister of Loans, read the agreements properly before exposing yr ignorance.
Mr chikwanda makes his case very clear with all intent and purpose investors are attracted to any investment destination by revenue they inturn will receive. This is like a two edged sword, investments equally create benefits to the country being invested into. The management of this economic complexity is what has been lacking with PF govt. Mr chikwanda seem to comprehend the matrix of this emerging market source of economic activity financing. Political rhetoric is not enough without thoughtful creativity and innovative methods of administration.
commendable from a non pf self. great job ABC. tell the others that we support where sense prevails. not fima recapitalisation with no plan eg RCZ and Nitrogen chemicals.
Twatola bane. This is now work. Let all the critiques break and cry blood. We are here to make a change set the minds of all negative thinkers to crash!. VIVA PF. Do it now!
Kadoli …uliwamano!!!!
Oh, I see… so investors must now be accountable to their original plans?
If anyone knows that plans can change (…that is if they ever had one), it should be PF.
The reason for tax incentives to foreign investors is ; failure to do it ourselves.
Yet you guys criticized MMD when they dolled out tax incentives to lure the foreign investors.Useless bunch of PF losers and masters of doublespeak.
This government and the finance minister has failed. The government should create jobs the promised. Giving the responsibility to an investor has just exposed the Acting President. They have no aganda at all. This country is going to the dogs.
You are so dull. Government is an indirect creator of jobs through creating an enabling environment. How many jobs do you think can be created by GRZ?
I think Investors should create jobs first and then apply for these incentives once they can prove to the government. Knowing the civil service, will they follow all investors to ensure that they are keeping their promise of job creation, or it will just be a few unfortunate ones who will be followed. This is jargon from someone who is both a an economist and politician. We will wait and see if this will be followed up or the govt will wait for Zambians to cry out over some investors who bring criminals to work in Zambia as a way of not paying our workers.
#22 Litunga
You have the brains. The government has no plan to create job at all. Am equally disappointed. The pipo on this forum are just saying YES to Chikwanda because they think an investor will be taken to task by government. They also think an investor is a white man. Pipo get the skin issue and just find a way to create job than wait for a white man. Ma R.U.B B. I SH all the time.
Both you and Litunga do have the brains- brains the size as that of a foetus
Thats the way to go ba pf , the government should also do something about these so called investors who come and take up simple jobs like that of a cashier. there is also too much corruption at immigration. nice move but we can do much better than that.
this shall be followed by amending existing laws. why cant some people get the sense
The Litunga is going to the Dogs..your ass
Nice on Mr Chikwanda. We ve lost revenues in the name of tax holidays on these bogus investors e.g from ackermans to smartcentre to another to funcity. Come on guys. This is how dull and sleepy pipo entrusted in ensuring that our laws are respected and monies are collected. Very hopeless. We need investors like first quantum, lumwana, lane explorers. Kansanshi ,pick n pay etc
Great move
Yes Mr Chikwanda. Thats the way to go. These guys have taken Zambians for a joke. They are reaping while not fulfilling what they pledged to do. Please cut the intensives so that we compete on an even ground both local and foreign investors.
Peace and Prosperity to Mother Zambia.