- Stay Connected
Socialize
Prof Saasa Says Ban On Raw Copper Unrealistic
Local Economist Oliver Saasa says it will be unrealistic for government to ban the exportation of raw copper as it accounted for a major stake of the country’s export revenue.
Reacting to Commerce, Trade and Industry Minister Bob Sichinga’s recent statement that Government will ban firms exporting raw copper as a way of encouraging value addition to the commodity, Professor Saasa said Zambia was not yet at a level where it can process its copper to add value to it.
He told ZANIS in an interview in Lusaka today that as much as there was need to encourage value addition to products in the country, people needed to be realistic with what they were capable of doing.
Prof. Saasa stated that the country has not yet reached the level of industrialization and technological advancement that can enable it process the over 700, 000 metric tonnes of copper cathodes it produces.
He further stated that halting the exportation of raw copper could hurt the country’s export earnings, saying the exports of raw copper contributes about 70 percent of the country’s export revenue.
The renowned economist stated that Government needs to be realistic with its expectations,adding that it should align its expectations to its capacity in order to get what it wants.
Commerce, Trade and Industry Minister Bob Sichinga yesterday stated that Government would ban firms exporting raw copper as a way of encouraging value addition to the commodity.
Mr. Sichinga said there was need for Government to promote value addition to copper, hence the move to stop the exportation of raw copper.
Meanwhile, Prof. Saasa has expressed concern at the foreign holdings of Zambian debt which is reported to have fallen to their lowest since 2005.
He said foreign holdings of a country’s debt were one of the economic fundamentals as they signal the start of foreign direct investment to any country.
Prof. Saasa stated that the reduction in foreign holdings of Zambian debt was indicative that the country had started losing potential investors who could have come to invest in the country.
He said it was time that the country started examining where it had gone wrong in so far as attracting Foreign Direct Investment is concerned in order to sustain and grow the economic milestones the nation has achieved over the years.
Prof. Saasa urged government to send the correct policy signals to assure investors that Zambia was still the best investment destination in Africa.
Posted by
Uko
April 5, 2012 at 1:48 pm
Good comment Saasa. This process has to be strategically planned over time.
dass
April 5, 2012 at 1:52 pm
LET’S HOPE THESE QUICK DECISIONS WON’T LAND US IN A CATASTROPHY.ine nayopa.
Ken
April 5, 2012 at 2:11 pm
Professor Saasa you are dead wrong. Copper in this country currently contributes less than 2% of total national treasury. Revisit your economics. Our Natural resource is busy wasting away but only creating massive wealth for other countries like China, SA, Switzerland and Japan. All the proceeds of the 700,000 tones of copper are remitted offshore. Its better we painfully decide now to encourage those who want to mine our copper also to turn them into finished products here. It can take even 30 to 50 years but in the end generations of our generations will appreciate our suffering.
The problem we have is that pipo like the proffessor are looking at their age and thinking that they would not be there when the trees blossom. Its called myopia “selfishness”.
Ken
April 5, 2012 at 2:22 pm
Again Professor you are wrong on your second point. You are beginning to speak like a politician, frastrated politician. Do not bore us with with unresoanable analysis. What is happening in the Euro zone consequently now affecting even strong economies like China, Japan, Brazil, US and many more cannot spare Zambia. Money in no longer available. Tycoons are looking at Gold and other things to keep their money for now. Just Wait. We know Zambia did not significantly feel the effects of the past econ crunch because of China, but look, China now cannot sell its products and theirfore has slowed in its economic expansion. This Country has not gone anywhere wrong. Your second point Professor simply contradicts your firts point. You must arrange to give me a Doctorate.
com
April 5, 2012 at 3:10 pm
@ ken what wil happen to the 700,000tonnes of copper? And say bye to 70 % of forex, which wil put the kwacha under pressure.
jm
April 5, 2012 at 3:49 pm
proffesor saasa zambia has been mining for many years wat makes u think we can procees our copper into finished products if china has no minerals to mine how do they have machinery to process that is shallow thinking saasa these guys atre leaving holes in our country let them bring machinery to process that will create more work by processing in there countries jobs are created there bob sichinga u atre spot on go ahead these guys its too much look at the goods they are selling here proper gonga how cvan our economy grow one is kept to buy a socket every week look at motor spares mother of god ,saasa did u just buy yo degree use yo eyes wen speaking u are the colupt chaps in this mther earth to u a wrong is right buusheet*
Ken
April 5, 2012 at 4:02 pm
Its painfull to say but its better we act now than later. In the short term we have no choice but to continue giving away this resource at a song. We must seriously diversify into Agriculture and apply some brakes on the depletion of Copper without benefit until we can sustainably harness it. The govt must urgently build alot of dams and roads. Build more power stations we export power, Expand more sugar plantations while we have the east central african market. The govt must reduce the demand on fuel by applying the policy and create infrastructure where more pipo travel by electric trains than cars and buses. Within the medium to long term plans, this country must turn to electric energy and cut the demand on the dollar by more than 30%. What am I saying? If we continue to carelessly spend our wasting resource for nothing, one day, probably after you and me are gone,this country we be in total Kaos. DRC has applied brakes. You can lough now, but they will lough last.
Dollar Banda
April 5, 2012 at 9:28 pm
Some of these comments have financial benefits that is people are paid for issuing statements for or against, while the rest argue penniless.So is it Commerce, Trade and Industry Minister Bob Sichinga or the Local Economist Oliver Saasa
Kaya
April 6, 2012 at 10:34 am
@ Ken i totally agree with you and it seems like prof saasa is talking without a base of platform to visualize how much revenue the country could earn from finished products compared to unfinished products. even the late president mwanawasa talked of exposing m/meal to zim unlike maize.
Kaya
April 6, 2012 at 10:39 am
@ Ken i totally agree with you and it seems like prof saasa is talking without a base of platform to visualize how much revenue the country could earn from finished products compared to unfinished products. even the late president mwanawasa talked of exposing m/meal to zim unlike maize….
Air Mukwai_
April 6, 2012 at 10:50 am
prof saasa seemed to have lost direction of late. all his comments requires panel studies to extract a few elements of relevance from his trash. surely a man of his calibre talking about exporting raw material at the expense of finished products. prof saasa seemed to have lost direction of late. all his comments requires panel studies to extract a few elements of relevance from his trash. surely a man of his calibre talking about exporting raw material at the expense of finished products.