Lusaka – China had offered Zambia tariff-free market access for its products and would allow its citizens to borrow investment capital from the Bank of China, finance minister Ng’andu Magande said yesterday.
Chinese firms had started feasibility studies on how $800 million (R6 billion) in investments pledged by Beijing would be spent, he added.
President Levy Mwanawasa announced the cash pledge on Saturday after talks with his Chinese counterpart, Hu Jintao, who was on a three-day state visit.
Magande said: “It is exciting that China has opened up its market to 452 Zambian products from the previous 192 products, and the best thing is that Zambians can now borrow money from the Bank of China to manufacture goods required to export to that market.”
Relations between China and Zambia have been cordial for decades.
China has invested to help build a major railway line and develop copper mines in the country, which has consistently supported a one-China policy.
The Bank of China has a Zambian branch, which previously provided services only to Chinese investors.
Magande said the $800 million would roll into the country of 11.5 million people over the next three years, starting this year.
He said the investments would include a $250 million copper smelter at Chambishi, which would process 150 000 tons of finished copper starting next year.
Chinese firms investing in Zambia after the creation of a special economic zone in Chambishi would be exempt from paying 25 percent import duty for equipment, while the 17.5 percent value-added tax would be deferred until they began to make a profit, he said.
State media hailed Hu’s visit as the best way to “conduct world politics”.
Magande agreed: “If everyone [in the world] was behaving like this, then there would be more development.”
Empower Zambia Bureau of Standards
Much as i appreciate the free tariff trade clinched by the MMD govt, between Zambia and China, on the 452 products in Zambia’s favour, i wish to ask Mr. Magande to effectively and seriously finance the Zambia Bureau of Standards (ZBS) and also make sure that this institution (ZBS) is properly manned to give a better service to Zambians. The ZBS have a bigger task ahead of them, even now, to ensure that goods coming on to the Zambian market meet the set consumer standards.
In the recent past, i have observed with keen interest with regard to the quality of goods flooding the Zambian markets, mainly from China. These goods leave much to be desired.
ZBS must, therefore, intervene and ensure that these goods coming into Zambia meet the required standards. Similarly, the Zambian business community who will be carrying out trade with China, whose products fall in the 452 products’ bracket need to meet the set standards by ZBS, let alone the international community as this is a stepping stone to other markets in Europe and Asia.
Bravo! for improving on the number of products to be traded on the China market, am sure it reduces the trade imbalances we as Zambia face in other markets.
Mutale – DR Congo