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.