Friday 31 October 2014

Why President Sata’s Death May Breathe Life Into Foreign Investments in Zambia



President Sata
VENTURES AFRICA – Michael Sata’s death on Tuesday means he becomes the second Zambian president to die in office, the first being Levy Mwanawasa in 2008. Although both suffered protracted illnesses that adversely affected the Zambian economy, the end of Sata’s presidency is also being considered a boost to investor confidence in the Southern African Country due to his critical stance towards foreign investors.
Nicknamed “King Cobra” for his vitriolic tongue, Sata became president of Zambia in 2011 by defeating incumbent Rupiah Banda –who was Mwanawasa’s vice, in a keenly contested election. He won the election on the back of strong criticism of the actions of foreign investors especially the Chinese who he accused of very little local content in their employees in Zambia. His climb onto power caused a considerable level of uncertainty amongst foreign investors, despite his assurance of
the safety and protection of foreign investments.
His tough handling of foreign investors was however lauded locally, especially among workers in foreign owned mines in Zambia’s copper belt. Sata, a socialist and former railway worker in the UK, vigorously campaigned for better wages and welfare for Zambia’s mine workers. He also won plaudits for demanding China up the number of their Zambian workers as popular complaints of many Chinese companies using workers from China to do jobs Zambians could do.
But despite the just nature of his cause, and the support he enjoyed for it, a combination of falling copper prices and scare of foreign investors combined to hurt the revenue badly needed by the government to balance the social needs of the country’s fast growing population. Sata’s government was also criticised for not doing enough to diversify the economy- whose mainstay is copper (it is Africa’s largest copper producer), and not effectively translating the 6 percent growth of the economy into faster development.
Respected Zambian political and economic analyst Charles Mwewa wrote in Zambian Watchdog that lack of initiatives by Sata’s government on economic, fiscal and monetary policies was causing an economic slide for Zambia. “Sata’s liability is not, however, in the fact that he is too old or some of his ministers are ancient, his deficiency is in the fact that he lacks an economic vision for the country. Under Sata’s regime, it is as if things are left to outwork themselves,” Mwewa lamented.
Corruption is also another big issue in Zambia, as is the bureaucratic red tape surrounding the process of obtaining licences which encourages the widespread use of facilitation payments. While Sata’s government is quoted in a campaign speech saying he would “scrub” and “wash” the country, his fight against corruption has not been sparkling, especially when compared to that of his predecessor Mwanawasa. Mwanawasa’s anti-corruption campaign contributed in boosting foreign investor’s confidence and increased Zambia’s economic growth to 6 percent, a figure Sata maintained but was unable to improve.
These bottlenecks have joined to influence Zambia’s economic reputation internationally, the country ranked 93rd out of 144 countries on the 2014 Global Competitiveness Index, which looks at factors that affect economic growth. Zambia ranking as safe investment destination has also dipped this year according to the Q3 2014 Euromoney Country Risk rankings. The economic situation also fuelled local frustration, which has made Sata’s death seem like an economic relief.
“Death is very bad, but to tell the truth since he took over there has been fear among foreign business people in Zambia,” said a Zambian bank executive Sarah Mwale when asked about Sata’s impact on foreign investment. Gift Mwanabunga a Zambia computer engineer towed the same line of thought, “I think we are going to witness some positive movement on the economy”, she said.
If the late Sata’s governance strategy failed to please many Zambians, the stagnation his protracted illness caused the country’s leadership has hurt many more; a headline by Zambian Watchdog depicts this weariness. The popular online media titled their report on the ascension of Sata’s vice, Guy Scott, to the office of the President Another Sick, Old Man Takes Over As President. The 70 year old Acting President of Scotish heritage became the first white President of an African country since the end of apartheid. But Zambian’s are critical of his old age and health as he is alleged to be suffering from Parkinson disease, a sickness he denies. Regardless of his claim of mental and physical fitness, the death of Levy Mwanawasa (59) and Michael Sata (77) from protracted illnesses and the controversies caused by it has led to calls for a younger fitter president to help drive socio-economic growth.
However, despite the economic positives that may be accrued from Sata’s demise, his loss is also very huge for the Zambian society exampled by the genuine expression of mourning among virtually all Zambians.
Sata rose to political prominence in the 1980s and quickly earned a reputation as the hardest-working governor while in charge of Lusaka. As Governor, he made his mark as a man of action with a hands on approach. He cleaned up the streets, patched roadways and built bridges in the city.
In death, even his political rivals have applauded his patriotism and affection for the people of Zambia. Rupiah Banda, one of Sata’s fiercest rivals described him as “more than a public servant” adding that he was a Zambian, “in body, soul, and spirit”.
International appraise have also been outpouring; the South Africa’s government said President Sata “belongs to the generation of leaders produced by Zambia during the colonial times and gallantly pursued the anti-colonial struggle” and that his death “reminds the people of South Africa of Zambia’s immeasurable sacrifice and the sterling leadership role that Zambia played in ridding the African continent of the yoke of colonial domination and apartheid rule.” Kenyan President Uhuru Kenyatta hailed Sata as an “outstanding son of Africa” and added: “He was gifted with unique, admirable abilities and strong values.” Britain’s Foreign Secretary Philip Hammond said: “[Sata] played a commanding role in the public life of his country over three decades…and finally as president.”

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