Look for an equity partner to resuscitate TAZARA, Govt urged

THE governments of Zambia and Tanzania should look for a private equity partner for a joint venture to resuscitate operations at the Tanzania-Zambia Railway Authority ( TAZARA to make it more viable, says an Economist, Highvie Hamududu.

This follows revelations by Ministry of Communications and Transport Permanent Secretary, Misheck Lungu that TAZARA was running at a loss and that the government was putting in place measures that would see it operate profitability.

Mr. Hamududdu who is the leader of the Party of National Unit said in an interview, finding an equity partner to run TAZARA on behalf of the two governments would help end the losses incurred.

He said, “the very Chinese who constructed the railway line are capable of running TAZARA on behalf of the two governments because they would be able to bring in the technology, financing, and discipline.”

Mr. Hamududu explained that China is now the main exporter of commodities in Sub-Saharan Africa and if brought on board, Kapiri Mposhi district which houses TAZARA could be made a dry port for redistribution of many products in the region.

“Let Tanzania and Zambia think bigger, they must look for an equity partner, let this thing be rekindled, and Iam not ashamed to say the very Chinese who put it, give them 50 percent and then Tanzania and Zambia can share 25 percent, 25 percent so that we can have value,” he said.

The opposition leader explained that there was no need for the country to own parastatal companies that continue to make losses hence the need for the equity partner.

The Party of National Unity leaders is of the view that the parastatal companies could only be rescued if a private equity partner was brought on board.

“Parastatals can only be rescued if you brought in private equity partners, whether it is National Chemicals of Zambia, Zambia Railways, whether it is TAZARA, whether it is INDENI, the government does not have money to put in these bottomless pits,” he said.

He emphasized the need for a private equity partner who could bring in the technologies, financing, and discipline to stop the political patronage which he said was common in parastatal companies.

Mr. Hamududu stated that, “wherever the government owns parastatal companies, abuse comes in and also decision making is too lengthy”.

THE Zambia Medicines Regulatory Authority (ZAMRA) has denied granting Honeybee Pharmacy limited a pharmaceutical licence.

ZAMRA has also stated that it is not aware of the contract awarded to Honeybee Pharmacy Limited for the supply of 22,

500 health centre kits and insisted that the products supplied were defective.

In this matter, Honeybee Pharmacy Limited sued ZAMRA seeking an order to stop the latter from revoking its licence.

However, on Saturday, ZAMRA revoked Pharmaceutical Licence Number PL/500091/19 that was issued to Honeybee Pharmacy and not to Honeybee Pharmacy Limited.

Honeybee Pharmacy Limited in its claim filed by its lawyer, Mr Tutwa Ngulube said on or about November, 2019, it bid and won a tender for the supply of 22, 500 health centre kits with the Ministry of Health, and a contract was executed to that effect.

It claimed that pursuant to the said contract, it delivered part of the consignment contracted for and the same was subjected to a testing and confirmation procedure and a certificate of fitness and acceptance of the goods supplied was issued by ZAMRA.

But in its defence filed on Monday, ZAMRA contends that it was not aware of the contract the plaintiff was referring to.

ZAMRA claims it only issued Honeybee Pharmacy a licence.

“That the plaintiff was never granted any licence by the defendant but that the defendant only granted a licence to Honeybee Pharmacy, a sole trader registered pursuant to the Registration of Business Names Act, 2011 and the said entity was struck off and deregistered on April 1, 2020 at Patents and Companies Registration Agency (PACRA),” it stated.

ZAMRA said that both the Zambia Bureau of Standards laboratory and Medicines Control Authority of Zimbabwe which analysed the medical products supplied by Honeybee Pharmacy Limited are certified laboratories.

“That aspects of “defective goods” has been stated by the plaintiff, the position of the defendant is that a certificate of analysis of samples of medicines and allied substances which were supplied by the plaintiff revealed that they were out of specification to set criteria,” it said.

Honeybee Pharmacy Limited’s other claims include an order that the matter be referred to arbitration as per the provisions of the contract governing the relationship between it and the procuring entity.

It also wants an order of interim injunction to restrain ZAMRA by itself, agents or whomsoever from revoking the plaintiff’s pharmaceutical licence and publish any information on social media and other platforms calculated at injuring its reputation and any other reliefs deemed fit.