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Interview: Zambia Hopes for More Investment From China
Zambia expects China to expand its investment in the African country so as to tap the potentials for economic cooperation and trade, Zambian Minister for Commerce,Trade and Industry William Harrington said in a recent interview with Xinhua.
"The potential between Zambia and China is enormous," said Harrington, who has been invited to the China-Africa Cooperation Forum scheduled for October in China's capital of Beijing.
According to Chinese statistics, China-Zambia trade volume stood at 26 million U.S. dollars in 1999, dipping 2 million from the previous year, while in 1997 the volume climbed to 37 million, suggesting large potentials for the two sides to tap.
The Zambian minister noted that to attract more foreign investment, the Zambian government has put in place a series of measures, including launching privatization programs, signing investment protection agreements and liberalizing foreign exchange control.
He said that Chinese companies should make good use of the opportunity, stressing that all forms of investment, whether direct investment or joint ventures from China, are encouraged "at all costs".
Moreover, Harrington suggested that Chinese companies and African countries take advantage of the expanded market in the region with the Common Market for Eastern and Southern Africa Free Trade Area which will come into being on October 31, 2000.
He noted that Zambia is favorably located in south-east Africa, therefore provides an opportunity to export to all the eight neighboring countries and South Africa, suggesting that China could increase investment in this region and especially in Zambia.
The minister recalled that China and Zambia have enjoyed good cooperation in the past four decades, during which many joint ventures were set up.
He mentioned, among others, the 1,860-kilometer Tanzanian-Zambia Railway Line linking Kapiri Mposhi with Dar-Es-salaam in the early years and the Zambia-China Mulungushi Textile in 1997, the latter being a pilot project in a new form of cooperation between African countries and China.
The successful experiences of the Mulungushi Textiles, which offers jobs for 1,500 people, provides a good example for further enhancing economic cooperation between Zambia and Chian, noted the minister.
He said while China's investment in Zambia has been focusing on road and railway construction, agricultural machinery production and farm produce processing in the past 40 years, China has begun to invest in other sectors in recent years.
He noted that a branch of the Bank of China, the first one in Africa, was established in Zambian capital Lusaka over a year ago.
Harrington said that it has been proved cooperation between Zambia and China is possible in various areas, which should be an encouragement for China to widen its investment fields.
However, Harrington noted there is a trade imbalance between China and Zambia, which was resulted from the different industrial structures between the two countries.
To redress the imbalance, the minister suggested that Chinese companies could invest more in Zambia and make products oriented at exporting to China.
He further recommended trade fairs and shows as a way of promoting trade and strengthening economic ties between the two countries.
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