EU-Zambia Forum Great Initiative

Zambia Daily Mail, May 19, 2022

Indeed there is no grain of doubt that Zambia is back on an impressive economic growth trajectory. From launching the Public Private Dialogue Forum (PPDF) three weeks ago, to addressing the Investing in African Mining Indaba in South Africa just over a week ago, President Hakainde Hichilema yesterday graced the European Union (EU)-Zambia Economic Forum.

While his attendance of the mining indaba triggered interest among conglomerates like First Quantum Minerals to invest US$1.4 billion in Kansanshi Mine, the PPDF and EU-Zambia Economic Forum will generate private sector investments and business opportunities that foster economic growth and job creation. These are significant milestones in the new dawn government’s efforts in resuscitating an economy which has been beleaguered over many years of maladministration. The EU-Zambia Economic Forum is the first of its kind launched on April 5 this year by Minister of Commerce, Trade and Industry Chipoka Mulenga under the theme ‘Economic transformation through green growth’.

Image: Christian Lue via Unsplash

Yesterday, this high-level event brought together entrepreneurs, experts, financial institutions, innovators, and policy decision-makers from Zambia, the EU and representatives of its 27 member states. It has created a rare platform for EU and Zambian business people to work together and create economic synergies to promote employment and wealth creation. We therefore urge Zambian business leaders to take advantage of the opportunity created by this economic forum to collaborate with their European counterparts in exploring new avenues of making their enterprises buoyant and grow. The foreign investments President Hichilema is attracting into Zambia should not be misconstrued in any possible way just because some of the investors are from the West. We do not agree with such a misplaced perception because the focus of the head of State is to attract investors from strong economies such as those in Europe. Pessimists should therefore not divert Zambians’ attention to petty talk because citizens are interested in seeing an economic turnaround of the country. About a fortnight ago, President Hichilema met new Chinese Ambassador to Zambia Du Xiaohui at State House where he stressed the need for continued close ties of interest and fruitful cooperation in economic affairs, culture and security between Zambia and China. So, rather than dwelling on destructive talk, doomsayers should give Mr Hichilema chance to continue focusing on driving his government’s economic diplomacy agenda, which is pivotal in job creation, attracting investments, and improving people’s welfare. By spearheading the EU-Zambia Economic Forum, the President is aware of the immense benefits Zambia will derive from this initiative because Europe has some of the strongest businesses in the world. Like he correctly pointed out, the €1.6 billion current EU investments in Zambia are inadequate, and through the economic forum, European companies’ level of investment will certainly rise. “Honestly speaking, €1.6 billion, Europe is a giant, I am not convinced that €1.6 billion is something to be proud of. We should work to triple this figure to at least €5 billion,” President Hichilema said. The EU-Zambia Economic Forum alongside the PPDF will be institutionalising private sector investment locally and internationally because both forums are anchored on fostering private sector participation in economic affairs of Zambia. That is why we applaud every effort President Hichilema and his government are making in attracting investments into Zambia because that is the surest avenue to transforming the country’s ailing economy.

Government to launch Public-Private Dialogue Forum

Lusaka Times, April 26, 2022

The government will officially launch the Public-Private Dialogue (PPD) Forum tomorrow.

The dialogue aims at strengthening private sector engagement in Zambia’s economic development agenda and facilitate collaboration among relevant stakeholders to address critical sector specific constraints.

Acting Secretary to Cabinet, Patrick Kangwa says government recognises that private sector is the engine of economic growth and the best tool for job creation.

Mr. Kangwa said it is therefore crucial to understand better how government can effectively work together with the private sector to reach the country’s full potential.

He explained that the forum will be used as an opportunity to identify the market failure and develop strategies to address them.

Mr. Kangwa further added that the event is expected to bring together key stakeholders from the public and private sector and cooperating partners to engage in discussion in order to support enablers for sustainable growth in sectors that will yield developmental dividends for the country.

The dialogue will be held under the theme “Fostering Private Sector Growth and Economic Development.

Yesterday, during the press conference, President Hichilema said government considers the private sector as an engine for economic development, this is why government wants to hold the Public-Private Dialogue Forum for Development aimed at unlocking all challenges that impede the growth of the sector.

This is according to a statement availed to the media in Lusaka today, by Acting Secretary to Cabinet, Patrick Kangwa.

Landmark €6.5m Youth Skills Deal

Zambia Daily Mail, May 23, 2022

THAT the European Union (EU) and United Nations (UN) have signed a €6.5 million youth skills development contract for Zambia is good news indeed. These are some of the fruits of last week’s EU-Zambia Economic Forum, for which some naysayers in their typical unconstructive talk accused President Hakainde Hichilema of being pro-West investment. The forum was attended by representatives of 27 EU member countries, African Union Commission, and Bankers Association of Zambia, among others. This historic signing of the €6.5 million contract for skills development among Zambian youths could not have come at a better time than now when there are so many young university and college graduates still looking for employment.

Barely four days after the forum, President Hichilema announced in a message posted on his Facebook page that the €6.5 million contract is for supporting skills development among Zambian youths. With this development, the President is right when he says our young people should take advantage of this opportunity to contribute to Zambia’s development trajectory.

President Hichilema at the EU meeting

“When opportunity knocks, our youth have to be ready. We are happy to inform the nation that the European Union and United Nations have signed a contract for €6.5 million for skills development for increased employability programme in Zambia,” Mr Hichilema said. This is aimed at enabling the country’s institutions to train youths in various skills so that they could create employment for themselves and other Zambians. The new dawn administration has always been talking about creating jobs for youths, especially that they form the major segment of the country’s voting population. Inasmuch as this administration has placed job creation top of its agenda, young people should always bear in mind that Government is only there to create a conducive environment for investment in various sectors. It is through investments such as the EU and UN one that jobs are created, mainly by the private sector, of course in collaboration with Government. We therefore urge the youth to take advantage of the €6.5 million skills development contract to enrol in various institutions that will be responsible for skills training under this project. With the EU and UN financed contract, the focus for Zambian youths should not just be on white-collar jobs, but also to delve into various entrepreneurial endeavours to create their own job opportunities.

For any country to develop, it requires home-grown economic growth through engagement in a variety of small and medium businesses by citizens themselves. That is why we urge all well-meaning citizens to support every effort the new dawn government is making to promote investment from within and beyond the borders of Zambia. This is because the just-ended EU-Zambia Economic Forum is already bearing fruit, and hopefully more investments will unfold soon. The €6.5 million skills development contract for Zambian youths is just the beginning of better things to come under the current administration because its leaders do not just talk, but they also walk the talk. Therefore, it is entirely up to youths to get empowered with life skills for them to employ themselves and create jobs for others. We applaud the move by EU and UN to sign the €6.5 million skills development contract for our young people. This is how it should be.

Image: Christian Lue via Unsplash

UK BII To Scale Up Investment In Zambia For Sustainable Development

Zambia Invest, April 22, 2022

On 5th April 2022, the UK’s Minister for Africa, Vicky Ford, and UK’s development finance institution CEO Nick O’Donohoe celebrated in Lusaka the launch of the institution’s new name, British International Investment (BII), formerly the CDC Group.

The event, which was attended by Ministers and business leaders, marked the first official launch of the BII brand in Africa, demonstrating the UK’s commitment to working with the Government of Zambia on productive, sustainable, and inclusive growth.

After 74-year of history across Africa and a track record of investing to support private-sector growth and accelerate impact, BII will scale its commitment to Africa and set new ambitions to usher in a new wave of investment in clean and green infrastructure and digital transformation.

BII investment already supports over 6,000 jobs across 20 companies within a range of sectors, and its recent allocation of a USD 20 million trade finance facility to five banks in Zambia, provides fresh capital that helps keep trade flowing through the economy.

Then Foreign Secretary Lizz Truss Talking at a BII Event in 2021

BII will continue to make investments that bolster financial institutions and businesses, create jobs, and boost trade in Zambia.

Moreover, the strategy to scale climate finance in Africa will help deliver on the Green Growth Compac, a framework signed by the UK and the Government of Zambia outlining their joint objective to build a stronger, more diversified, and inclusive Zambian economy.

Commenting on the launch, Nick O’Donohoe, CEO of BII, said: “I am pleased to be here with Minister Ford in Zambia, a country with whom BII has such a strong shared history. From our first investment in Zambia over 70 years ago, we have targeted a broad range of sectors where we saw opportunities to respond to the country’s growth needs and help mobilize greater investments to transform the economy. As we step into our new strategy under a new name, as a British institution at the heart of the UK Government’s international financing offering, we remain committed to scaling investment that will address the most pressing development needs across Africa. In Zambia, we will direct our capital toward supporting industries that will ensure Zambia’s green development pathway and help build economic prosperity for future generations.”

For her part, Minister for Africa Vicky Ford, MP said: “Launching the new British International Investment (BII) here in Zambia is a key moment for the UK financing of private sector growth and infrastructure across Africa. We are committed to support countries grow their own economies, bolster private sector investment and trade, and deliver the returns that will support wider socio-economic development.”

She also announced that GBP 4m of UK aid funding is being invested through InfraCoAfrica into projects in Zambia that will help boost electricity access for families and businesses.