The Post reports today that Labour minister Ronald Mukuma has directed Kansanshi Mining to re-advertise catering and cleaning contracts that it recently withdrew from Zambian firms and awarded to two South African companies.
As far as I know this is the first time the state has taken such explicit action over a subcontract, and suggests a considerably more proactive approach to maximising linkages between the mines and the local economy.
Mukuma said, “The contracts should be re-advertised in Zambia and Zambian owned companies should be re-engaged... I wish to inform both local and foreign investors that government’s policy is to promote and encourage effective participation of Zambian citizens in the economic sector. The provision of section 21 of the Citizens Economic Empowerment Act states that specific areas of commerce, trade and industry shall be reserved for Zambians,”
The Post also reports, "Mukuma said in the development agreement signed between Kansanshi and the government, the company undertook to award contracts to local contractors in an effort to promote the quality of goods and services supplied by locals. He warned that if foreigners were engaged on contracts that could be performed by locals, they would find it hard to secure work permits for their workers because there was local capacity."
2 comments:
Well it is a start. However, at the same time, it starkly underlines the failure of the neoliberal economic model.
At best, the outcome will be that indeed the mines will hire local people for catering and cleaning services.
However, if the mines are going to have a lasting impact on economy, only stiff taxation or profit sharing will make the kind of money available that will develop infrastructure, agriculture and manufacting businesses.
But maybe this development is the start of a new awareness.
Alastair,
Have you read the results from the new renegotiated mining industry contracts/laws?
http://maravi.blogspot.com/
This is a very good beginning. I don't know if the mining companies are yet contributing all they need to, but it is a good start.
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