`Environment conducive for investment`
By BUSINESS REPORTER ZAMBIA has conducive policies for investments to thrive and positively contribute to the economic development, says Camco Equipment Limited chairman, Li Tie.
According to Mr Li, Zambia had conducive policies for investments which allowed businesses to thrive while positively contributing to the economic development of the country.
Mr Li said his company which initially used to deal with agriculture machinery, food processing and equipment had now embarked on diversification in line with Government policies.
He said the company had now ventured into supply of construction machinery and earth moving equipment.
Mr Li said this in a media statement released in Lusaka yesterday.
"Zambia has conducive policies for investments to thrive and contribute to the economic development of the country. As you may know, our company initially used to deal with agriculture machinery and food processing and equipment.
"Over the years, we embarked on diversification in line with Government policies, a boom in the construction sector and this development encouraged us to venture into supplying of construction machinery and earth moving equipment," Mr Li said.
He said Camco's strength lied in the provision of affordable products and providing training to customers as well as back up support through various workshops across the country.
He said the company had direct links with top manufactur- ers of various products in China and whatever incentive Camco received from these manufactures, it always passed them on to the Zambian market through providing products at an affordable price.
Mr Li however noted that Camco faced a number of challenges especially at the begin- By BUSINESS REPORTER ZAMBIA will need to raise US$150 million per year between 2019 and 2023 to service the US$750 million Eurobond which falls due in 2023 if Government does not manage to set aside a sinking fund this year.
Zambia Institute of Policy Analysis and Research (ZIPAR) senior research fellow, Caesar Cheelo, observed that the country would need to raise US$150 million per year between 2019 and 2023 to have the full amount of US$750 million by 2023.
“If the US$20 million is not set aside (placed in the sinking fund) as per 2018 budget, Zambia will need to raise $150 million per year between 2019 and 2023 in order to have the full amount of $750 million in the kitty by 2023.
“But even if Zambia sets aside the US$20 million as per the 2018 budget, we will still need to raise US$146 million per year between 2019 and 2023 to have US$750 ning of business operations in the country because many Zambians had negative perception of Chinese products.
"It took time for people to realise that Camco products are unique and reliable because they are sourced from the top three manufacturers of durable products from China," he said. million by 2023 (that means a difference of only US$4 million per year compared to the other scenario),” he said.
Responding to a press query, Mr Cheelo said Zambia needed a more robust strategy than the sinking fund to cope with the pressures of servicing Eurobonds.
Mr Cheelo regretted that Government should have financed the sinking fund in 2014 when ZIPAR first started to advocate for the facility.
“The US$20 million doesn't matter. The first Eurobond falls due in 2023 and at that point Zambia will need US$750 million in order to exit the market; US$20 million is only 2.7 percent of the total amount Zambia will need. So setting aside or not setting aside $20 million is of very little consequence.
“So to cope with the imminent debt pressures, Zambia needs a more robust strategy than the sinking fund; perhaps debt refinancing is the only feasible option at this late point in time,” he said.