IMF director warns Zambia on Chinese investment
Dominique Strauss-Kahn, the Managing Director of the International Monetary Fund (IMF) has advised Zambia to weigh Chinese investment on its real benefits to the country.
The IMF boss made the warning Thursday when he met Finance Minister Situmbeko Musokotwane.
Strauss-Kahn who arrived in the country on Wednesday said he did not, “in principle … see any kind of problem in receiving investment from China.”
But added that “But these kind of deals should be beneficial.”
Chinese investment in Zambia to date stands at about 1 billion US dollars, making it by far the biggest investor.
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yes I agree with Alistoto’s statement that Companies owned by the following bring very little or no revenue to our economy; China, India and SouthAfrica. These guys despite making huge profits (enjoy tax free) they pay workers peanuts. They come to Zambia (except for India maybe) with nothing, they start business using our borrowed money, expand business with our borrowed money and externalise all our money to their countries of origin.
This type of behaviour is only acceptable in Zambia, else where in the world doesnt exist. To those who have gone to just our nearby neighbouring countries would wonder why Zambia is still looking so poor in infrustructure and economically. This is the main problem we have. These guys have been allowed to rip our resources and make huge profit for their own countries. Zambia should wake up..
WAIT A MINUTE ! WHO AND WHAT IS IMF ?
THE COUNTRIES WHO OWN THIS BANK AS AMONG OTHERS THE FOLLOWING:USA. UK, GERMANY,FRANCE, JAPAN etc. ONLY A FOOLISH PERSON CANNOT SEE THE GAME BEEN PLAYED HERE:
Speaking of French investments…poor chaps at Lafarge can tell you it’s not so rossy inside, only the top expats get paid vyanzelu the rest ma peanuts just like their brothers at chinese run mines.
IMF Boss is right.
Be blest all.
_
Matt 6:33
Look guys,lets be objective.We don’t have to like or dislike IMF,the point the guy is making is that,we cannot just fall foolhardy for one portifolio of investment-Chinese.Lumwana for example has come up with a totally new town called Lumwana itself,besides they pay better and sponsor students at both UNZA and CBU.Look at the Indian run KCM and the Chinese run mines,they have bot invested in infrastucture or sponsored any students at UNZA.We need Foreign Direct Investment,FDI,that is value based and can as a result churn out decent and sustainable jobs within the economic chain.
Companies owned by the following bring very little or no revenue to our economy; China, India and SouthAfrica. These guys despite making huge profits (enjoy tax free) they pay workers peanuts. They come to Zambia (except for India maybe) with nothing, they start business using our borrowed money, expand business with our borrowed money and externalise all our money to their countries of origin.
This type of behaviour is only acceptable in Zambia, else where in the world doesnt exist, maybe we should send our leaders for a workshop in Botswana
The best cautious way to proceed with foreign investments is not to put “all the eggs” in the Chinese “basket”, but spread them out carefully.
You don’t want the pulling out of Anglo-American Corporation from our mining industry to repeat itself in the Chinese investment reduction/withdrawal.
The bells have rang for Zambia to take stock.
Maxi: African people built the Pyramids. I will pray and ask GOD give you wisdom, knowledge and understanding.
It’s called survival of the fittest!! America is just jealous becoz they no longer have the bargaining tool. The china a just doing straight forward mutual trade. If u have sumthing to offer we can trade. The problem is Africans are a race from another planet they don’t understand business. May be they shud just live in trees!
but why aren’t u investing in zed too …?what shud w do if they are the only serious infetsors?
Does Zambia give a flying toss about the US, UK, Chinese, Indian and other economies? No. Do these nations give a sheet (sic) about Zambia? No. Boys and girls, this is a zero sum game. One country’s gain is another’s loss. We can’t avoid the game but we can avoid losses.
This advice is timely and should be taken seriously. While there is nothing wrong with Chinese investments, it is not a good thing when one country is dominating the area of investment. We need to look for other investors too so that we can get the best deals.More effort must be made to invite investors from the west so that there is balance.
These Americans are just jealous about Chinese investment.
Volcanolist
Have you read this warning ? The IMF is saying not every investment from China will benefit Zambia. That is a timely warning.
As Zambians we are not a desperate nation, If we dont mine ore today, our great grand children will come and do it to profit Zambia. Its the leaders who want to make a kill.
Yes, we do agree that China is one of the fastest growing economy in the world, but that does not mean they care for you. If they did they would have saved Zambia from total collapes along time ago.
China has alot of people to feed within its teritory, so they make sure they syphone everthing they can find in foreign land, Zambia inclusive. I saw this type of behaviour with SouthAfrican whites. Its like they are taught at school to milk everthing they find in foreign land and take them to build Jo’berg. They will import from SouthAfrica anything from umulembwe, Kholowa, Chibwantu, Thobwa to technology. They will also send so called consultants who are trained by Zambians. The idea is ‘milk Zambia while everbody is asleep and leave quickly before they wake up.
BUT CHAIRMAN MAO NDIWE CHIPUBA, U THINK THAT MAN FRM IMF, CAN BE JEALOUS OF THE CHINESE. THAT IS WHY BA KUNDA AND RB WHEN THEY GIVE U, KA 10PIN, U STAND ON THE MOUNT, U START BOASTING. ALIPEE, NIOLEMELA, HE WANTS TO CENJEZA YU, AND YU START PRATTING. UKAFWA ULECULA NA DORA WENU NA RB
Be wary of foreign investors period! it’s not only chinese who are plundering africa. maybe he can give some examples of western investments that have been mutually beneficial, if not he should just keep quiet
Can Dominique Strauss-Kahn, the Managing Director of the International Monetary Fund (IMF)tell us one country in the whole of its history that the IMF has helped to eliminate poverty? Can he tell us which countries in the developed world are not looking for Chinese investment? These are the questions our journalists should be asking these agents of the world financial oligarchs who have always wanted to keep Zambia and other African countries burdened with debt to the point of mortgaging their lands. Africa is the one continent that Geo-physicists have predicted would remain almost unscathed were there to be major catastrophic events. There has not been a devastating earthquake in Africa since time immemorial. The British isles, Europe and the Americas as well as Asia are sitting on faultlines. Africa is the cradle of civilisation and will remain the last continent standing. THEY will need us, and that is why they are tying debt nooses around our necks.
He is just jealous! the Chinese have all the money! even the USA owes them loads! you guys plundered Africa and left it with nothing to show for! Long live china…its your turn to enjoy africa.
Now this is interesting. The IMF is worried about the expanding influence of China. Their own countries are indebted to China so they feel that THEY should be the ones to continue enslaving Africa because it is too profitable to give over to the Chinese! As a blogger has already mentioned, no outside group has our interests at heart. We need to liberate our continent and our individual countries from the tyranny of debt and economic enslavement. People, let us put REAL leaders in state house. People who know what development is all about. Vote for Dr. Mutesa and ZED. These are people whose vision is all about Zambia and what she needs! Forget about the circus of RB, Sata, HH and the many other clueless hangers-on that say nothing day-in and day-out. Vote for your interests Zambia. That is the only way you will develop. Servant Leadership!
No way am messin’ around with a pack of old, hungry hyenas (IMF). Ain’t no bone on this here earth ‘em animals can’t crack.
Both hyena and vulture feed on carrion or roadkill. Not much of a difference.
When you are helpless and are being attacked by the hyena and the vulture, who would you choose?
The truth is that the Chinese economy is the fastest growing and their economy has a lot to say even in the pricing of our copper on the London Metal Exchange.These IMF(Western Countries) are just scared of the current Chinese global economic influence.We depended so much on the west and poverty is all they paid us.Lets work with other people and see how the economy comes out.But the truth is though these investors have a lot of say but at the end of the day the responsibility lies on our shoulders to develop our own country.Mind you these guys are in business and business is about profit making.We need a government that is able to put the interests of the nation first.Not leaders who think if you steal billions the only way forward is to forgive.Shame on the leadership.God is punishing you severely for every penny stolen that was meant for health,education etc.We need to be accountable to the people who put us in these offices.Even here in UK,one thing that moves the economy is accountability.Be it Gordon Brown or David Cameron they are made to account for even the money they get to buy toilet paper.What about the millions of dollars Chiluba and his friends stole?Today we are silent and think the Chinese are destroying our economy,that is total nonsense.
i hope the government is learning something from this warning!wake up and smell the coffee
I do not understand why the MMD are not able to ensure that the Chinese payback to Zambia via real infrastructure such as sewerage systems, revamping of UNZA, CBU, all provincial hospitals, secondary schools, and airports’ passenger terminals. These including water purification plants for all our major human habitation centres would be the most sensible route to getting our repayments instead of money which eventually ends up stolen by the mmd leaders including ministers, cadres and civil servants. Why is it RB and his ministers work as if they have never done arithmetic?