President Michael Sata is not impressed with the pace at which Samsung, the Korean ninth top global electronic engineering company, is developing its investments in Zambia.
President Sata said while Samsung, which employs 200,000 people in 72 countries around the world, is associated with huge investments worldwide but has not expanded its business interests in Zambia in terms of setting up a manufacturing plant.
The President was speaking at the Samsung manufacturing plant located on the outskirts in Suwon, about 30 kilometres from Seoul when he met the senior management team of the company which was led by its president and chief financing officer, Ju-Hwa Yoon.
“I am not impressed with the development of Samsung in Zambia. You are building a new plant in Seoul and not in Zambia. I am inviting you to come and join Hyundai and Daewoo who have invested in my country,” said President Sata.
Samsung Electronics has 21 centres in Sub-Saharan Africa and a sales outlet in Zambia which employs only six people providing after sale services to customers.
However, President Sata said the global electronic company, which has this year been voted ninth among the top 100 brands in the world and a profit posting of US$14.7 billion in 2011, should re-invest its resources into the Zambian market.
The President said Samsung also enjoys a big market share in Zambia and therefore opening up a factory would capture the entire SADC market which has a population of over 400 million people.
Samsung also earned a revenue of US$148.8 billion in 2011 making it one of the richest electronic engineering companies in the world.
President Sata noted that it was not enough for Samsung to operate through affiliate companies in Africa and Zambia in particular but should instead use its huge profits which are more than the finances of the Korean government to put up tangible investments.
The President appealed to Samsung to capitalise on the good telecommunications infrastructure in Zambia which is better than in other countries to increase the company’s investment portfolio and also help increase the flow of trade between Zambia and Korea.
President Sata was later taken on a conducted tour of the Samsung digital city where he was shown a display of both the old and modern technology that the company has been producing since 1969 when it was set up with an initial 36 employees.
The President was accompanied by Foreign Affairs Minister Given Lubinda, Commerce Minister Bob Sichinga, Agriculture minister Emmanuel Chenda, Tourism minister Sylvia Masebo and Special Assistant for Press and Public Relations, George Chellah.
Meanwhile, President Sata has urged Samsung to take its investment to rural areas in Zambia by capitalising on the abundant water resources that generate hydro electricity as opposed to using solar energy to implement its projects in the country because it is expensive for the poor people.
The President also said Zambia’s vast agriculture sector could benefit from the diverse product range that Samsung manufactures for this sector which is not visible in Africa but only outside the continent.
“You can sell Korea more in Zambia if you use your resources there although solar energy is very expensive in Africa. Come to Zambia and use the hydro energy generated from our abundant water resources,” he said.
Earlier in his welcoming remarks, Samsung President and Chief Financing Officer Ju-Hwa Yoon said his company is involved in a number of social activities targeting the poor community in the education and health sectors of Zambia.
Mr. Ju said Samsung will continue strengthening its investment portfolio and presence in Zambia and that the vision is to become a more trusted and helpful company for the Zambians.
In the education sector, Samsung is implementing a solar powered project called ‘teach the teachers laptop project’ financed through ABC Bank using the ZAMTEL nationwide optic fibre network to improve information technology.
And Mr. Ju has since assured President Sata that Samsung will give a positive consideration to his request of setting up a manufacturing plant in Zambia.
“We have a large presence in Africa and our biggest market is in Egypt but our basic principle is to go where the market is. We will give your request positive consideration,” said Mr. Ju.
But President Sata said Zambia has a larger market for Samsung investment than Egypt considering its location in the SADC region.
The President noted that Samsung will reduce on its production costs once a plant is set up in Zambia because of the abundant resources, water, hydro electricity and copper which is largely used in electronic engineering.
Meanwhile, President Michael Sata has left for South Korea and headed back to Zambia.
ZANIS
Looking for free electronics.
Hope sata watched F1 Korean GP over the weekend…What investment has Hyundai and Daewoo made in Zambia, isnt it the same sales outlets which Samsung has?? i dont think we manufacture or assemble Hyundai’s and Daewoo’s locally… Poor strategy of inviting investors
Barotseland is getting independence hurrysatana.
Solar energy will be cheaper to adapt in Zambia with its abundance of the sun. Its the initial cost of installation that is expensive, but well worthy the investment in the long run.
IT SEEMS LIKE IT WAS AN AMBITIOUS TRIP TO WOE INVESTORS. KEEP IT UP MR PRESIDENT.
My dream Zambia is coming
Why is he seated at the head of the table in a foreign Country?
PEMPANI BABA
Why is this President Begging for investors, When all he has to do is ORGANISE his country so that they come running to this country.For crying out loud, the world is looking for good business. Take all those threats of locking up people first..
Can you please create or come up with a cell phone or any electronic gadget which is zambian made so that we can all buy it. Don’t just continue whining. There is a lot of sand in western province as well as gemstones. From sand, we can make a lot of things. Offer alternatives and if it’s feasible, forward to government. If you can create anything, tell us how so that we can support you instead of complaining all the time.
There are so many ways of wooing business,through advertising,soliciting,cohesion,extortion,enticing etc
It is better to design needed projects at home first then look for help from partners on implementation. We need to have our plans for development at hand.
That’s what we are looking for. Right a project proposal and send it to government. We all understand what it means to develop a country. Give us suggestions in project proposals rather than making a general complain we keep hearing without offering alternatives.
SAMSUNG SHOULD EMPLOY KATELE KALUMBA AS HEAD OF LAPTOP DEVELOPMENT DIVISION.
If the president is really serious about wooing investors he should do his homework before he goes looking for unskilled jobs for Zambians…that Samsung he is visiting back in 1993 was just a fledging parts manufacturer in the sector. The then chairman Kun-Lee took a radical step and sent a handful of his brightest young employees to far away corners of the globe not to work BUT to immerse themselves in culture, learn the language and build networks so that someday Samsung would profit and today the company is reaping those seeds sowed 20 years.
Only Zambians will develop Zambia not the foreigners they also need jobs why should the give you skilled jobs. You have already have jewels in Zambians abroad spread out in all corners of the world yet you choose to ignore them.
Great job on investor circuit meetings Round 1. Next year go back to the same places and gauge for progress. It is a partnership, no single nation has ever been developed without a helping hand. A helping hand is different from begging, when you are seen doing something others come in to help out.
It is the principle of the busy bee! Welcome back home Mr. President!
Good point BRM Sr. Your photo reminds me of memories at Miseshi and Chamboli.
The picture is cut so how do tell if that is the whole team. There are a lot of professionals that go on presidential visits and are in the background. the only people you get to see are the president and ministers. So unless you have another source other than the picture about, you comment is baseless
Coachez: The good old days mwana wesu
Chilemoneka kwati strategy to attract investors tapali – ni tourism chabe iyi! Look at the people in his team – all amateurs. Yaba no seriousness nixi!!
And where are professionals like you…sweeping toilets in the US?
The picture is cut so how do tell if that the whole team. There are also of that go on presidential visit and are in the background. the only people you get to see are the president and ministers. So unless you have another source other than the picture about, you comment is baseless
It’s even more profitable to promote your local investors first. Then good governance of your economy will inevitably bring foreigners to your shores. No need to bend on two knees to woo investors when Africa and Zambia in particular are extremely attractive and they know it. But they also know and probably shocked that we are so extremely stupid not to realise this fact, that we are the richest continent. Promote yourself first!
Great job Mr.President and very please with the good job you have been doing so far. keep up with the same spirit.
The intention is good but the team is inappropriate. Such trips should include people from National Council For Scientific Research, Chamber of Commerce, ZNUF, EIZ, ERB, ZESCO & other prominent business people. The idea of inviting these companies to Zambia should be to enable Zambian ownership in those branches they open up in Zed, and these partnerships can only take place between business people and the would-be investors.
Our colleagues who got their independence on 12 Dec.1963, a few months before us the Kenyans have embarked on the ambitious Vision 2030 plan which the hope to bring the country into the future…projects include the expanded use of geothermal power, sponsoring an international sports academy and building a new tech hub popularly referred to as Konza City. And what are we doing still using 1990s style investment strategies to woo the foreign investors; still begging for unskilled assembly factory jobs.
Its high time we sat down and drew up a roadmap not a roadmap for 2016…..the president needs to be travelling with a proper entourage on these investment trips not politicians; they are only interested in political agendas & photo opps.
Wake up people!
Instead of whining, give the government your project proposals like Dr Ludwig Sondashi has done on the cure of HIV/AIDS and he has been funded for that. Stop complaining without giving alternative solutions. We are all Zambians and want what is best for the country we love.
Well said Jay Jay #18.I’ve often said that zed hasn’t developed because we don’t seem to badly and zealously hunger for it.The country you cite there has one tribe hogging a disproportionate share of its wealth because of their famed zeal for success.The other tribes have an apathetic approach and the result is a big gulf in wealth.I cite this example to show how we’re like the latter group.We’re not serious,we’re not focused and we think that somebody else will come develop zambia for us.
kaya ine ndeloleshafye if the story ati first it was a rejection from China that prompted the Japan trip katwishi where we stand
@Jay Jay, I can bet you that the Kenyan government is building the city in terms of infrastructure and will need investors both local and foreign. In case you do not know what they are building is equivalent to the MFEZs which PF opposed bitterly before coming to power but have thankfully continued to fund. I have said it before and say it again, no country can ever develop on its own because of because savings in all countries are less than the capital requirements. To expand u either have to borrow, get aid or attract foreign investment. All of these have their up and down sides but I would rather we rely more on foreign investment that the other two. Korea that is being praise also used the foreign investment and export as a growth strategy
I’ve just finished reading an article on that vision 2030 on BBC news site.Quite an ambitious plan and now that they have oil & gas deposits they just might make it.(and i emphasize the word MIGHT) Zambia’s needs to draw such a plan.
Mwaya Sana
Please google Konza City or Africa’s Silicon Savannah before you start making such comparisons.
What we are lacked as a country is the structure that results in a win-win situation for both investors and the country. This mostly comes from weak enforcement of our own laws. For example section 21 of the CEEC provides that the President will reserves some sectors for citizens. It also provides that some sectors will be for joint ventures. Up to now the president (from LPM,RB to Sata) has not reserved any sectors for Zambians. This is why we have foreigners investing in small shops, cooking nshima & many other less capital intensive industries that can easily be done by Zambians.
Tuletoela fye kuli kabumba pakutupela kateka Sata. He has a dream!
Can back Mr President. Opposition is meesing up Parliament business.
Though I commend the president for trying to woo investors, asking a high-tech company like sumsung to set up a factory in Zed is a bit far-fetched. What advantages does Zambia have over Seoul? Its good to dream but let us be realistic at the same time.
Mwaya Sana
Please google Konza City or Africa’s Silicon Savannah before you start making such comparisons.
So when is Samsung coming to Zambia?