US SHOULD LEARN FROM CHINA, IF THEY WANT TO TRADE WITH US – HAABAZOKA
IF we have to see a lot of the interaction between Zambian and US businesses, the country should copy from China, says economist Dr Lubinda Haabazoka.
On Friday, US Ambassador to Zambia Michael Gonzales said the days of giving aid to Zambia while citizens get poisoned by pollution from Chinese mines and while American companies fail to do business due to bureaucratic corruption are over.
In an interview, Sunday, Dr Haabazoka said Zambians found it easy to deal with China because it was accessible and not restrictive.
“I think that being in defence of my own country, Zambia, does not prioritize a nation in terms of foreign direct investment, it does not prioritize the Chinese, the Indians, the Europeans, the Americans it is neutral.
Our laws are very neutral, and the best way to have a lot of American investment into the country is to allow Zambian citizens on road shows and market that particular country. At the moment, our visas have become very restrictive. So, how do they expect Zambians to partner or to go and look for investors in the USA when we cannot travel there.
They are saying that we are over staying. When you look at China, which is also developed and life is way cheaper and more affordable than in the United States of America, nobody is chasing us from China, and nobody is saying we are over staying,” he said.
“We have a lot of men and women who fly into China to go and look for potential investors to go and look at raw materials to buy from that particular country because it is easy for a businessman to go into China. If we have to see a lot of the interaction between Zambian and the US business, the USA should copy from China so that we can have access.
Look at how European investments have reduced in Zambia. It is the same thing. It has become difficult for Zambia to access Europe and, as such, European longer have information of what is happening in Zambia in terms of business. But we have a lot of business from Dubai, China, India, and South Africa because historically it has been very easy to reach each other’s nations and people are able to get information from each other”.
Dr Haabazoka said the USA investment was reducing across the globe because the country was restrictive.
“Look at how the Ethiopians are coming to Zambia to invest because Zambians are able to go to Ethiopia and look for partners and vice versa.
So, a policy of open borders is the one that is lending other countries to having more investments in Zambia than US investors. It is basically now impossible for any Zambian to convince the USA that I am going to look for investors it is difficult.
In fact, the entry has been even restricted, so how do they expect me to go and prioritize the USA to look for money or investment in the mining sector in the energy sector because I cannot access the USA. Even if I got a business partner, what kind of business partners to whose countries I cannot go to. So, this happening across the globe US investment is reducing across the globe,” he said.
Dr Haabazoka urged the US Embassy in Zambia to engage various players to see how they could encourage investors.
“So, I think this is not a Zambian government problem of prioritizing anybody, it is just the US procedures and rhetoric coming from them. We have great respect for the USA, China and India and others but we get what we get. If it is easier for me to go into Namibia, I will go and invest in Namibia.
But if it is difficult for a Zambian to go into Congo, I won’t do business in Congo, but if it is easy, I will do business in Congo. So, it is about our ability to move and the competitiveness of the business. So, we call upon the US embassy in Zambia to engage various players, including the Zambian government, to see how we can encourage investors. Investors coming to Zambia the government does need to be involved,” he said.
“PACCRA registration is online, and once you see business opportunities, you do not need to talk to a councillor or an MP or minister. There are a lot of Chinese that come into Zambia without talking to anybody, and they set up shops and start operating. Some have small shops and others have big businesses. So, Zambia is an open book”..
Dr Haabazoka further said Zambia was open to investors from across the world.
“I have taken note that the US government, [through] the ambassador has announced that there will be no more aid without trade and that we are not punishing others who are polluting Zambia. I think that as citizens, we could actually be very worried when foreign direct investment comes into the country through the government.
First, it is tied to aid, and it is tied to negotiations with the government. Zambia actually has conditions at the moment where a person can just buy a ticket and set up a company at PACCRA and get the necessary licenses, and most of them are paid for online and set up shop just like all other investors do. I think a point of correction would be that Zambia is open to investors from across the world, and we know that American investors are very good investors,” said Dr Haabazoka.
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