24/02/2019
Copper Prices are looking good. Mining companies should increase output especially that the cost of mining in Zambia is one of the lowest in the world. We need that forex to flow.
We can’t have 1.8 months of import cover when copper and cobalt prices are very bullish.
Let’s also take advantage of available local currency payment mechanisms within SADC and COMESA to reduce dependency on the greenback.
ZCCM-IH should also hunt for equity investors to invest alongside them in new mines (green fields).
We also need to offload a certain percentage shares to other equity partners in both toxic companies and those that are doing well. Money realized from the sale of such assets can be used to capitalized new greenfield projects (various new small to medium companies) that can create employment.
Since the private sector has been slow in creating employment, IDC and ZCCM-IH should carry the mantle for job creation. We need these two entities to invest in totally new businesses whose shares can in the future be offloaded to other equity partners.
Companies with mixed participation of government and private quota remain the most effective.
Companies to include on the list for partial sell of shares to private equity include: Ndola Lime, ZESCO, ZAFICO, ZISC among others. This exercise can raise over $4bn for Zambia.
The cost of setting up a large scale tyre making factory is around $300m and even much less. Think of other factories we can set up. Factories that will reduce dependence on imported good.
