Worrying trend of ‘Zambianisation’ sees foreigners losing ground

Zambians want to do it for themselves with little or no help from foreigners. That’s the sentiment of many businessmen in the landlocked country where “Zambianisation” is not just growing in strength but has also seen immigration assistance and tax incentive offers to foreigners all but disappear. Few are willing to speak on the record for fear of losing the little footprint they have in the country, but there is consensus among businessmen in Zambia that the success of the Zimbabwean regime in taking business and lands without repercussion has emboldened the Zambian government, and to an extent, the country’s public. “There is little benefit to being based in Zambia at present,” says one businessman. “Companies that have done well in Zambia are foreign based, or companies that need very little footprint in order to trade, but there is a sentiment growing in the Zambian business world that Zambianisation must continue and foreign business shouldn’t be necessary to develop the country.” While the previous Zambia Development Agency had a mandate to offer tax incentives, immigration assistance, and duty free allowance for capital equipment, this has been all but removed to the extent that the agency is now housed in the same building as the Zambianisation agency that is mandated to do the very opposite of encouraging foreign investment. With great mineral wealth in the country, its friendly people and relative freedom from violent crime, it offers ideal investment opportunities to foreigners wanting to invest in Africa. While the infrastructure is primitive, it is available as opposed to many other African states. Challenges are however great. “Rampant theft, from diesel to company cars, workshop stock, building materials, cargo and even office stationery – nothing is free from theft here,” says another businessman, who also preferred to remain anonymous. “Corruption in every single aspect of business is part and parcel of doing business here. Without a back-hander nothing can be achieved, and there is no doubt in my mind that businesses owned by white people – be they foreigners or Zambians – are targeted by the government continuously for inspections, audits, fines and paperwork exercises, either to create a scenario where a pay-off will take place and the perceived problem will go away or with blatant racist intent.” Another businessman, who not only was born and bred in Zambia but has owned a business there since leaving school, agrees saying this new phenomenon for Zambia is very recent but is gaining momentum.