ZCMT revival: Economic relief to Kabwe
Published On August 5, 2014 » 2425 Views» By Davies M.M Chanda » Business, Columns
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Policy analysis1ANY weekly columnist would tell you that there are just some weeks when a columnist is inundated with ideas on which to base the next article.

For me, the foregoing seven days constituted one of such weeks when I am spoilt for choices because of various issues which rose during the period.

Having attended the Zambia Extractive Industries Transparency Initiative (ZEITI)/World Bank sponsored workshop for civil society and media, on Zambia base erosion and profit shifting last Friday, I could focus my article on extractive industries.

Then there were issues like the newly launched National Planning and Budget Policy which begs for analysis and the just-ended 88th Agricultural and Commercial Show which could also have featured.

But just when I was about to settle on one of these items, there was an announcement about the imminent reopening of the Zambia China Mulungushi Textiles (ZCMT) following a lease agreement with an investor.

Having a few weeks ago lamented about the plight of Kabwe town when my mind wandered into history lane, wondering as to what had happened to the declaration of the former mining town as a tax-free zone,

Mulungushi Textiles issues won my heart.

It was, therefore, relieving to hear that ZCMT was set to re-open, seven years after having been shut down.

This is after the ZCMT signed a 12-year lease agreement with Mohammed Enterprises Tanzania Limited (MeTL) on Wednesday in Kabwe.

The move will result in the revival of the operations of the defunct textile factory with the new investors planning to stake US$10 million in the firm while 2,000 jobs mainly for local people will be created.

This historic move will provide economic relief to the town which has not seen any major investments in the last many years.

At another level the leasing of the factory will provide further investment and working capital to boost the cotton industry in Kabwe and the country as a whole, which was also affected by the happening at ZCMT.

The board of directors for the company has from 2011 been searching for a credible investor who would revive the operations of the industry which was one of the economic driving forces for the former mining town.

One can only hope that the investor will live to his promise to the people of Zambia that the firm will perform to their expectations and will work with the government of the day.

Notably, the (MeTL) is reputable company in Tanzania, which boasts of having employed more than 20,000 people and one can only hope that its claimed good performance in the Zambia’s neighbouring country will be replicated here.

. Mulungushi textiles

. Mulungushi textiles

The firm will operate as MeTL Mulungushi Textiles under the initial 12-year lease which will be renewable.

ZCMT was closed on June 30, 2007.

 

*****

STILL on the plight of Kabwe town, I would like to reproduce one of the responses I got after the first article. It reads:

“Hi James,

Your article was an interesting read. I happen, by fortune, to be involved with the town of Kabwe. I was invested in a technology company in 2004 which unfortunately could not break into a fairly closed market involved with digital signal processing for voice communications.

In 2006/7 the company pulled away from this technological development.

The next news reported was that they had acquired tailings dumps at the old Kabwe mine site. The Chairman having a commodities background and involvement in mining! The company changed name to Berkeley Mineral Resources.

Their aim now was to acquire the whole of the mine site with a view to processing the over ground material to produce a lead/zinc concentrate and to engage in an environmental project which would make significant progress in rehabilitating the land and cleaning up the polluting substances.

Over the years they have acquired all the over ground resources apart from a cobalt/copper processing unit owned by Glencore.

I was extremely happy to be involved in such a project which could substantially impact upon the town and residents of Kabwe.

I have followed the company’s progress and been party to local news and the impact of the old mine site on local people.

I know that Kabwe has been a blot on the landscape for Zambia and is amongst the top 10 polluted places in the world.

I increased my investment and my level of knowledge in the town. It appeared to be supportive of the people and I felt I would contribute by supporting the company.

A green and an ethical investment and a local charity just down the road from me in Ringwood, England called Contessa actively supports in the area http://www.contesacharity.org/ http://www.bongwe.com/.

Berkeley has also made donations via Contessa or directly.

Berkeley via its wholly owned subsidiary Environmental Processing Limited is now awaiting approval from ZEMA of its Environmental Impact Assessment.

If, and when approval is given EPL will start processing and cleaning up the area.

The company will employ local people along with experienced locals who previously worked at the mine site under ZCCM. I am probably relating knowledge that you are already very aware of but it’s just to say that miles away from Zambia there are people that care and want to help even though it is by direct donation or indirect involvement.

I hope that Kabwe will once again flourish and enjoy a cleaner and healthier environment. I know of many fellow investors that feel likewise and we all want to make a contribution in some way.

God bless you for bringing this back to the agenda and I hope that your article can publicise the plight of the people of Kabwe and that more employment and industries make their way to the town.

There was talk of the government setting up a copper park in Kabwe but I have not heard much about this of late.

I hope in some way that this e-mail shows you are supported by far off shores. I hope that you succeed in engaging the authorities to make things happen there.

I wish you every success!

Kind Regards,

Chris Attwell

Bournemouth, England.

For comments call: 0955 431442, 0977 246099, 0964742506 or e-mail:

jmuyanwa@gmail.com.

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