AID FREEZE: OUR SOLUTIONS AND ADVICE TO HICHILEMA
A few days after the Trump administration announced a freeze of foreign aid, the Swiss government also announced cuts on foreign aid to Albania, Bangladesh and Zambia.
Certainly, the decisions taken by the Trump administration and the Swiss government will greatly impact bilateral and economic cooperation between these governments, and the affected countries such as Zambia. These broad cuts or end to bilateral development programmes will definitely create a huge fiscal gap in our economy, which will eventually trigger serious problems for our people.
But is the Trump administration and the Swiss government wrong to adopt such measures in the administration of foreign aid? Well, they are responsible for their own citizens, and how they choose to spend their taxpayer’s money is entirely up to them. So, Zambia and other donor dependent countries have no claim to their peoples’ money or resources. In this case, what should Zambia do to navigate this abrupt change of course by the US and Swiss governments?
We have on several occasions advised Mr Hakainde Hichilema and the UPND government on the urgent need for them to pay attention to taxation of our mines. We are losing out so much, and it’s sad to watch. We need to get our act together and get fair taxes from our minerals. There was absolutely no need for Mr Hichilema and the UPND government to be in a rush to give away our minerals to foreign transnational mining corporations for next to nothing. All these mining firms like Anglo American, Anglovaal, Glencore, Vendanta and other mining corporations are interested in our minerals because there are huge profits to be made now and in the future.
Yet when we advise Mr Hichilema and his league to revisit the mining concessions and tax waivers to improve dollar inflows to the treasury, and the economy at large, they never take advice or act on it. They know it all. But here is the reality:
US$2 billion of tax waivers per annum can employ 3 million farm workers. This is the reality on the issue of tax incentives.
It takes 180 pounds of copper to make a Tesla or other electric vehicle. This is five times the amount of copper needed to make a combustion engine motor vehicle. It takes 450 pounds of copper to build a normal house, once you include electric appliances, wiring and fixtures. If you put solar panels on it that will take another 100 to 150 pounds of copper wiring. A solar farm used to generate energy requires five times the copper it takes for an equivalent natural, coal, or nuclear power plant.
– If we are going to turn our cars into electric vehicles, we are going to need a lot more copper over the next ten years.
– If we are going to build houses for all the millennials – the largest generation on the planet – we are going to need a lot more copper.
– If renewables, such as wind and solar power, are used to build those things and supply energy then we are going to need a lot more copper.
Under these circumstances, it does not and will never make sense to give tax breaks and other unnecessary incentives to transnational mining corporations. Yet we want to be visiting Western capitals with a begging bowl for help as though we can’t think, plan and see. Why would we do that? The UPND has certainly not acted wisely on this matter. And we can think of no reason why a government would do this, unless it was out of acting out of ignorance or corruption, or both.
But by so doing, Mr Hichilema and the UPND government are depriving Zambians to improve their well being; through the provision of improved salaries, infrastructure, social amenities, education, health and so on and so forth.
Solutions to Zambia’s problems lie within the framework and borders of this country, and we have shown how this can be done. Let Mr Hichilema heed our call, and act on these solutions with immediacy.
Fred M’membe
President of the Socialist Party
Soil!
HH has already started putting things in place in order to support the home grown economy as for you it is CUBA and Venezuela plus your dumb arrogance.
Old time Socialism.
Old ideology that never thrive especially in this era.
Look at Venezuela and Cuba very backward.
Which mining concessions or waivers this dunderhead is talking about? Why not be specific so that you nicompoomp dont mislead your fellow 1,8m noise makers.
Who asked advice from you fuledi????
Where did Mr. Fred Mmembe get the figure of $2 billion loss from the mines? MRT would be only generate about $335 million per year using the 750,000 tons output NOT $2 billion he is claiming and the figure was going down due to reduction of production as a result of bad policies like the ones he is proposing right now. Also overtaxing businesses does not bring in more money but instead it destroys the very sectors being overtaxed as we witnessed during the previous administration resulting in even lower tax revenues. We all know that the mining sector had almost collapsed due such kind of thinking as copper production went from over 850,000 tons in 2011 to about 750,000 by 2020 and it’s only during the new dawn administration that we have started seeing the sector getting revived due to good policies of the current administration. It’s very clear that the policies of the new dawn administration have started bearing fruits within this short period of time as can be seeing by the over $9 billion dollars investment in the mines in both old and new mines. Furthermore, since he claims the mines are very profitable, why hasn’t he opened mines so that we he shows us the huge profits he would reap from the business which is claiming the mines are reaping but we all know that he making the comments either ignorantly or just for political milage. When will this man start speaking things which make sense since he claims to be one of the most educated people in Zambia.
I meant one of the most educated person in Zambia
Who? Educated in what?
Mr. Fred Mmembe claims to be one of the most educated Zambians but his reasoning betrays him.
Ba membe , doesn’t know anything, all what he knows is lelling and magnifying lirs. With HH in the driving seat Zambia can’t be in a crisis
Yes, somehow Mmembe could be right though he may not put things in a pleasant way.
Windfall Tax is necessary to benefit Zambia.
Mmembe should concentrate on the many styles he’s perfected for his Yakumbuyo munyelo style. Nobody asked for his opinion
Ba Fred may not be good to advise on this matter.The opposition is instead happy on any thing that affects the economy.They have always wanted UPND government to fail .They have always wanted negative things to happen to the country.Even this rain we are experiencing is not wanted by these people.They wanted hunger to continue.What advice on tax when they evaded tax both day and night.