By Speedwell Mupuchi
ZAMBIANS based in the UK on June 20 filled 4 Hamilton Place meeting room in London to meet and greet President Hakainde Hichilema, who had made time in his private visit to the UK to meet them.
President Hichilema had just returned to London from Edinburgh, Scotland where he was bestowed with an honorary doctorate of Heriot Watt University in recognition for his services to the economic advancement of Zambia and its citizens, enabling citizens’ access to education and to the revitalisation of international trade.
At exactly 20:10, the Head of State was called to the podium by the Minister of Education Douglas Syakalima and for the next two hours, he unpacked feats achieved in the two years nine months of his administration. Largely, the President addressed the debt crisis and restructuring process, energy crisis and opportunities created in the sector, mining, education, agriculture, among pertinent issues of the nation, in a manner that left no doubt in his listeners about his genuineness and depth of heart for fellow citizens.
President Hichilema told the audience, who on many occasions responded with applause, that the UPND was elected on the ticket of change and that from the onset he knew that if the economy was not restructured, it would be impossible to better anyone’s life.
He said the country’s economy had plummeted from a growth position of 6 percent GDP growth in 2011 to -2.8 percent by 2021 and the economy was in intensive care.
“We borrowed hugely and failed to service our debt. We defaulted in 2020. Basically we were a basket case. We failed to pay creditors, not just international creditors but also bondholders, major banks and domestic creditors with whom we were in arrears,” President Hichilema said. “We were buying fuel without paying for it and the arrears increased to US$800 million. In roads we were in the region K15bn.”
President Hichilema said the whole nation was in a distressful situation.
“The debt went up, which is a liability, and the assets went down. It is not possible to balance the books when your liabilities have gone up and your assets have gone down. That was the state of your country,” he said.
President Hichilema explained the reason for lack of balance was corruption which took out money and booked it as debt.
He said upon assuming power, he orchestrated a number of reforms underpinned on economic restructuring to better citizens’ lives.
Among measures he took included restoring law and order and the rule of law, clearing pension arrears, and allowing citizens partially withdraw 20 percent of their savings with NAPSA for investments.
On education, the Head of State talked about policies like free education that had brought back children excluded from school by the economic decline.
He also highlighted the restoration of the meal allowance that the previous government took away from students and increasing the number of children on bursary and student loan scheme.
Other measures he mentioned included ensuring that no child sits on the floor or logs in school by the end of this year, increasing the education budget to build more schools in all constituencies, and the recruitment of 42,000 teachers.
He directed that young teachers refusing to go and work in rural areas should be replaced.
President Hichilema said he stopped his ministers from buying new VX vehicles in order to make savings for expenditure on free education and other social services.
“I took a risk but very comfortable in taking it…I told them no new VX, you will drive what you have, when its useful life is gone, there will be no replacement, very unpopular decision. That’s where we are getting money,” President Hichilema said.
“When the argument got hot, I said, ‘Guys, come-on!’ If you think you are man or woman enough, sign your own cheque to Toyota Zambia to buy a VX, not public money. Today, I stand here and say good decision.”
On health, the President talked about employment of 14,000 health staff and an order he had given that every health centre must have a maternity wing.
“Because I was born in a grass thatched house. My grandmother was the midwife to my mother. It can’t be right that this time we should have a similar situation,” he said.
On debt, President Hichilema said without its resolution, there was no chance for economic turnaround.
“Why? In default, you are a basket case, you can’t access funding. Every business needs funding to expand, so colleagues, we took it upon ourselves that we were going to achieve what I define as mission impossible – to restructure the debt,” he said.
President Hichilema said under the G20 common framework chaired by China and France, debt restructuring had been achieved.
“Now we are on the road to concluding with the banks and others. I request you the citizens to thank the people you know connected to these creditors, they could have said no because they had to take a knock on their balance sheets to support us because of the goodwill we portrayed to them,” he said.
“We went through pain, delays. Some of the delays brought about a negation of some gains we had made such as on inflation. We had pushed it down to single digit but the delays, market sentiments that the deal won’t happen, exchange rate issues…with this [debt restructuring] largely done, it is now time to roll our sleeves because we are back in the decent league of nations. Your country in two years nine months has gained some respectability.”
He urged citizens not to be misled saying the restructuring can cause some pain but delivers lasting healing.
On the investment side, the President said under the US$2.5bn Green growth compact with the United Kingdom, the government is pushing for investments into the energy sector.
“Energy now is a big issue for us and I invite all you colleagues, find somebody who is willing to invest in energy. We have a shortage of energy. It’s not only in Zambia, the whole region is short of energy, only two countries in SADC have excess energy – Angola and Tanzania,” he said.
The excess energy in Tanzania and Angola cannot be evacuated to Zambia as there are no power interconnectors, which creates an investment opportunity in the space.
He also talked about a measure taken this month to change the supply side of energy and trade by operationalising the open access where the State power utility, Zesco, is now obligated to wheel power generated by private and small power producers.
The President also talked about a government decision made to lower the burden of processes to invest in the energy sector from 26 months required to one month to get a ZEMA authorization for setting up and power station.
“With all the resources we have, we were sitting on progress. Leadership is very important, let’s not listen to noise,” he said.
He said as of last month, the government had resolved to have citizens generating 1 to 5 kilowatts to get a decision in 15 days to become a generator of power through another decision called net metering.
“Net metering, long overdue, part of our economic restructuring in the energy sector which means if you have a home, you can put solar panels on top of the roof and you generate 50 kilowatts of energy, you utilise 40 kilowatts, you can sell 10 kilowatts,” he said.
“What I am inviting you here is to be able to take this opportunity your government has brought other than crying for a job to be ambassador from the 11th province.”
He said the government would help citizens on the investment processes.
“just raise a little money, we will now be working on the specs, there is a team we have set up to work on the specs, if you want to invest in 500 kilowatts, we will advise on how much it will cost them, where they could buy the solar panels and company to install for them so that they do not worry about such issues. Those to invest in 5 megawatts, I can tell you it will cost you just under 4 million dollars. I am looking at it myself for my farm. It’s not a joke, I am going into maize production. Because of the challenge of food security situation, I am going into crop production, I am going to irrigate, I am going to generate my own power to irrigate with and the excess I will make available to someone…why can’t you guys organise yourselves as the UK Zambian Diaspora and raise just about US$2 million and the other we can make available the finance houses that will be able to lend you money because you will have an automatic power purchase agreement that will be given to you by Zesco or by so far three independent operators.”
The President also briefed the Zambians on works on phase Two of Maamba power plant to generate 300 megawatts.
Other policy measures he highlighted include a decision to obligate public sector institutions to support citizens and other investors who need project support.
He said a year from now, there will be a solar explosion in the country.
“Come along, invest, don’t spend time on social media, 02:00am [on social media], spend that time mobilising yourselves to raise just one and half million dollars the rest we can…and we will give you the institutions to support you and you own a 5 megawatts power station and you own a business that your grandchildren can inherit,” he challenged them.
He also sold opportunities for investment into irrigation agriculture presented by the current drought situation.
On corruption, he said the law has been promulgated to prosecute cases within five months and enhance the law on forfeiture of proceeds of crime.
“If a guy took 10 million dollars, he buys the best lawyers, pays a million dollars, softens the bench, gets two years in jail, he serves one year and under the law they have another year remission. They come out and they have 9 million dollars! What will stop them from taking $20 million? Now we take the $10 million back to the owners for free education, health services, for solar and also if you are convicted we put you in,” he said.
The President said the whole system was polluted.
In the last two years, the government has recovered assets from one individual valued at $24 million, K60 million cash and K100 million worth of property.
He said the country is experiencing more recoveries than ever before.
“We need your support, it’s not a personal issue, it’s not a political issue, it’s not a religious issue; that’s where people are running to now, hiding behind the church, the chiefs and I am telling the chiefs that when my brothers and sister come to complain to you, ask them, ‘did you share with us’? This is not a joke, we can’t have a situation where the country is sinking, a few people are work like they are businessmen yet they are not businessmen, they have never done any business, they even have no balance sheet at all, they don’t even have an income statement…this is not right.”
President Hichilema said providing servant leadership is his passion.
On mining, President Hichilema said the government is reviving the sector.
He said one year from now, the sector would be taken beyond the glory days of the 70s.
“Before we came, KCM was down, it was put in liquidation; Mopani was in comatose, 28 shaft in Luanshya was down for 28 years, First Quantum was exiting, Lumwana was exiting and there was no exploration and no new investments.
He said Mopani has been brought back to life with a new partner from the Middle East.
He said the government through ZCCM-IH now holds 49 percent shareholding in Mopani.
“Under KK, we nationalised the mines, we sank them. Under MMD, we privatised the mines and the most we could get was 20 percent shares. The first time we’re able to negotiate to get to 49 percent shareholding,” he explained.
The President said Mopani’s production had plummeted to 60,000 metric tonnes but now it is projected to produce 225,000 metric tonnes.
He said creditors of Mopani have since been paid while the new partner has paid Kitwe City Council K80 million.
“KCM liquidation, very complicated but we have managed to draw it out of court into the boardroom and last week we got a creditors scheme of arrangement by over 90 percent in order to bring KCM back into production and soldier towards 300,000 metric tonnes from 50,000 metric tonnes,” he said.
He said the dewatering of 28 shaft was going on.
“Lubambe which was in comatose, we split the licence into two. One within Lubambe and we marketed it to America and we got Kobold Metals, they brought in artificial intelligence and found the largest deposits ever discovered in recent history. We will now have a mine whose project is now pegged at US$2.3billion. This is a new mine,” he said.
President Hichilema said Kobold has confirmed Zambia will have the second largest mine in Africa after Kamoa in Kolwezi and it will produce 500,000 metric tonnes of copper.
He said another transaction over Lubambe residue will be closing soon.
The Head of State also talked about Lumwana and First Quantum mines that were on the verge of exiting from the country but have now pledged investments of US$1.5 billion in Kansanshi (First Quantum) and US$2 billion (Barrick Lumwana Mine).
“In Kalumbila, we are developing the largest nickel mine on the African continent in two years 9 months. With that nickel mine, with the critical minerals with the battery, electric vehicles, you know the story, we are poised to be a different country six, seven years from now. Don’t disturb the cooking that is going on,” he cautions.
He said the country’s first nickel concentrate was produced at the end of last week.
“Now we have a Jewish investor we are working with to process the nickel to a level where we have a plate that we can take into battery manufacturing in Zambia. That is the value addition I am talking about,” he said.
President Hichilema said the total committed investments in the mines since he assumed office is close to US$10 billion.
“Now before you kick me out of office, I am determined, we are determined to grow the Zambian economy by more than double,” he said.
He said from the time he assumed office, the country’s GDP has grown by close to 10 percent.
“So we need your support, we don’t have to be love birds to support each other…we just have to have common interest, Zambia, and bettering the lives of Zambians, that’s our common interest,” he said.
“What we know is that the economy failed and we are bringing it back to life. If it were not for the drought, we were targeting to grow it to well over a psychological mark of 5 percent towards six to restore it to where MMD left it in 2011. We lost 10 years, 2011 to 2021, disaster. So mulefwaya ukubwelelamo, kuti mwabwelelamo, it’s your choice, some of these things we must talk about them openly,” he said.
President Hichilema said in one and half years from now the country will have a copper cathode from a mine in Mumbwa that will be producing 30,000 metric tonnes.
He said the government has given 400 individuals small scale mining licences.
President Hichilema said small measures in the tourism sectors were already paying dividends.
He invited investors to put more bed spaces in the country and that one opportunity was in the Mulungushi International Conference Centre premises.