Minister of Commerce, Trade and Industry Mulenga Chipoka has revealed that the Government is this month expected to lift the ban on the issuance of investment licenses in Zambia.
The government through the Zambia Development Agency (ZDA) last November suspended the issuance of investment licenses, permits for the establishing Multi-Facility Economic Zones (MFEZs) and Industrial Parks (IPs), and Investment Promotion and Protection Agreements (IPPAs).
Featuring on ZNBC TV’s Sunday Interview, Mr. Chipoka said the issuance of investment licenses in Zambia was suspended to review the document and ensure that it benefits both foreign investors and local people.
The Chingola Member of Parliament said the investment license issued by ZDA was being abused in the past by potential investors.
“I will explain why we suspended the issuance of investment licenses. That investment license is very good but apparently, we have noticed that it has been abused. Somebody can come to Zambia and say I have got $5000, 000 worth of investment, may I have this license. Before even seeing their book balance, their audited accounts, ZDA was so quick to give that license. When they are given that license, a year or two will elapse, that investor will not come to do that investment; they have gone to the country of their origin and use that as a document to solicit for funds,” Mr. Chipoka said.
“So Zambia was being used as a conduit to enhance the wealth of development for other people and bring that here. When we came into office as the New Dawn Government, if we can facilitate resource mobilization for foreign nationals through investment licenses, why can’t we come up with policies that we ourselves will start facilitating wealth generation, acquisition and access for our local people and that is what we are doing,” he said.
Mr. Chipoka expressed confidence that the revised investment license will be of great benefit to both investors and local entrepreneurs.
“On that investment license, you must understand this one. Zambia has policies where we have spoken to say land is a preserve of the Zambian people because land determines sovereignty but in the (old) vestment license there are some policies that give now access to the foreign nationals which the other policies deters them from acquiring. We want to revise certain policies in the license.”
“The investment license should be structured in such a way that when they give it is not only at the gains of the company that is coming but also of the Zambian entrepreneurs. We have given investment licenses in the past. If you are going to get the investment license you should partner with a Zambian,” Mr. Chipoka said.
He also spoke against the tendency by some foreigners to engage in small businesses that can be done by Zambians such as chicken rearing and block making.
Mr. Chipoka said the attraction of foreign investment should not be at the expense of Zambians.
“The attraction of foreign investors should not be at the expense of Zambians. So to any license that we give there should be again to a Zambian. Remember we give 100% ownership of a company to a foreign national. All the profits they make, they even sell their products outside the country, all that comes to Zambia are salaries for the people and meager salaries for that matter. So we want when we are talking about investment so some certain profits must remain in this country to build the profile of this country, to build and improve the infrastructure of this country,” he said.
Mr. Chipoka added that the Commerce, Trade and Industry sector is key to helping Zambia attain a prosperous middle-income status by 2030.
Investment licence should only be given to those who are willing to partner with zambians and not a wholly foreign owned entity.
You just realized your mistake.
This sounds great on paper but implementing is where the problem lies. We’ve many examples where the same investors you want to partner with Zambians only partner with the elite – connected politicians leaving the rest poor and helpless. How do you propose the partnerships will work equitably for all Zambians?
When it comes to externalising finances made in Zambia, the place to learn is SA. They have very strong financial policies. Of course corruption exists everwhere but their strong financial policies are well documented and tested at global level.
This is remarkable from the minister… well articulated sir!!! But the thing also to look at is the capital aspect…
Deja vu – how can you say he has realised his mistake when he just alluded to how these licences were abused in the past.
Now even you can enjoy benefits of foreign investors with only $50,000.
This Minister is probably the best in Articulating himself.
Can see him going far – the future;;
Spoke well on the Sunday Interview.
The sale of zambia has commenced by the upnd crook hh. I am in chinsali at the moment and the love we are getting here is unbelievable.
Tarino Orange you always reply from a pre conceived notion. The nonsense was suspended in November and within a month they have resolved the problems? Come on even a market based cadre can see that.