By Elias Munshya
#Bakwetu
Francis Kaunda was brilliant. And so was Edward Shamutete. And all the brilliant managers of the ZCCM days.
What was the problem then?
The parastatal model which elevated the ward chairman over the managing directors. The ruling party had the power to veto business decisions. The ruling party expanded its inefficiencies beyond government to business.
And that is the problem with the current parastatal model. No matter the English abena Chipata use when explaining the great Glencore day light robbery; the parastatal model is unworkable.
What’s the solution?
1. Have IDC and ZCCM-IH continue to have minority shares in private companies so that we have a seat on those boards. We shift risk from the government to private companies.
2. Have a government that sends a consistent message regarding foreign direct investment and private investment. You can’t be telling private companies to invest in your country while at the same time saying that you will be nationalising companies.
3. Investigate ways to reduce the cost of doing business. Why is it so expensive to do business in Zambia? With government involved in each and every business – the more expensive it will be for private individuals to invest. Why would you invest in an airline when GRZ has said they will be investing in their own airline? You can’t compete with government kaloba.
4. Use the Botswana and Namibian model. GRZ has shares, GRZ strengthens the chain of production, GRZ provides security to the commodities while offloading day to day running of companies into private hands. GRZ then taxes the companies. Government wins.
5. Use the Chinese model. Attract more and more foreign investment. Never get tired of it. Strengthen your intern systems. Strengthen your laws. But by all means bring investors. And of course lower the cost of doing business.
#MunshyaPlan #ChiwempalaPlan #lungunoplan #IfiEfyoBateka