SINCE ascending to power in August 2021, President Hakainde Hichilema has taken an assertive approach to pursuing economic diplomacy through international engagements.
Through foreign engagements, President Hichilema has rekindled relations with Western partners, especially the United States and United Kingdom (UK), and maintained Zambia’s vital relationships with China and African nations.
New investments and development support from a diverse mix of partners, including Brazil, India, Japan, Saudi Arabia, South Africa, Turkey, and United Arab Emirates, illustrate further expansion of Zambia’s relations.
Therefore, when former Vice-President Enoch Kavindele says President Hichilema’s international engagements with various players are important, he is apt and we agree with him.
In fact, Mr Kavindele’s company, North West Railways Limited, is on the verge of benefiting from President Hichilema’s state visit to Italy this week.
An investor in the Italian city of Milan has contacted North West Railways Limited expressing interest to come and set up a railway sleepers plant in Zambia, the investment from which Mr Kavindele’s company stands to greatly benefit.
“President Hichilema’s travels are bearing a lot of fruit. The country is benefiting from his travels,” he shared.
“Those who take a serious view of what is happening today in Zambia understand that the development around us is as a result of President Hichilema’s travels.”
The foreign travels the President has undertaken so far have resulted in steady flow of foreign direct investments (FDIs) in Zambia.
Mr Hichilema’s trip to UK in 2021 led to a commitment of £1 billion in renewable energy. His travel to United Arab Emirates led to an investment pledge of US$2 billion in renewable energy.
His visit to China in September this year will result in CNMC-Luanshya Copper Mines’ investment of an estimated US$500 million to reopen Old Luanshya Mine.
The project is expected to create over 3,000 jobs and is envisaged to produce 40,000 tonnes of copper concentrate annually.
The commissioning of the US$600 million Jiangxi Multi Facility Economic Zone in Chibombo last month is also part of the fruits of President Hichilema’s visit to China where several investment pledges were made.
Presidential foreign engagements act as a tool to attract FDI, which immensely benefits the country.
FDI creates new jobs and more opportunities as investors establish new companies in foreign countries. This leads to increased incomes and more purchasing power for the local people.
Another big advantage of FDI is the increase in the target country’s income. With more jobs and higher wages, the national income normally increases, which promotes economic growth.
Large corporations usually offer higher salary levels than what one would normally find in the target country. This can lead to increased income.
Attracting FDI is just one of the many paybacks that stem from international engagements by the head of State.
When the President travels, in most cases, he tags along members of the private sector.
This becomes an opportunity for them to establish direct linkages with foreign companies for investment, marketing their products and other opportunities.
Also, international engagements help lobby for more concessional loans which reduce domestic borrowing and hence interest rates. They also reduce the amount spent on annual debt service as they are spread.
Therefore, Mr Kavindele is right when he stresses the significance of President Hichilema’s international engagements.
Presidential foreign engagements vital
SINCE ascending to power in August 2021, President Hakainde Hichilema has taken an assertive approach to pursuing economic diplomacy through international engagements.
Through foreign engagements, President Hichilema has rekindled relations with Western partners, especially the United States and United Kingdom (UK), and maintained Zambia’s vital relationships with China and African nations.
New investments and development support from a diverse mix of partners, including Brazil, India, Japan, Saudi Arabia, South Africa, Turkey, and United Arab Emirates, illustrate further expansion of Zambia’s relations.
Therefore, when former Vice-President Enoch Kavindele says President Hichilema’s international engagements with various players are important, he is apt and we agree with him.
In fact, Mr Kavindele’s company, North West Railways Limited, is on the verge of benefiting from President Hichilema’s state visit to Italy this week.
An investor in the Italian city of Milan has contacted North West Railways Limited expressing interest to come and set up a railway sleepers plant in Zambia, the investment from which Mr Kavindele’s company stands to greatly benefit.
“President Hichilema’s travels are bearing a lot of fruit. The country is benefiting from his travels,” he shared.
“Those who take a serious view of what is happening today in Zambia understand that the development around us is as a result of President Hichilema’s travels.”
The foreign travels the President has undertaken so far have resulted in steady flow of foreign direct investments (FDIs) in Zambia.
Mr Hichilema’s trip to UK in 2021 led to a commitment of £1 billion in renewable energy. His travel to United Arab Emirates led to an investment pledge of US$2 billion in renewable energy.
His visit to China in September this year will result in CNMC-Luanshya Copper Mines’ investment of an estimated US$500 million to reopen Old Luanshya Mine.
The project is expected to create over 3,000 jobs and is envisaged to produce 40,000 tonnes of copper concentrate annually.
The commissioning of the US$600 million Jiangxi Multi Facility Economic Zone in Chibombo last month is also part of the fruits of President Hichilema’s visit to China where several investment pledges were made.
Presidential foreign engagements act as a tool to attract FDI, which immensely benefits the country.
FDI creates new jobs and more opportunities as investors establish new companies in foreign countries. This leads to increased incomes and more purchasing power for the local people.
Another big advantage of FDI is the increase in the target country’s income. With more jobs and higher wages, the national income normally increases, which promotes economic growth.
Large corporations usually offer higher salary levels than what one would normally find in the target country. This can lead to increased income.
Attracting FDI is just one of the many paybacks that stem from international engagements by the head of State.
When the President travels, in most cases, he tags along members of the private sector.
This becomes an opportunity for them to establish direct linkages with foreign companies for investment, marketing their products and other opportunities.
Also, international engagements help lobby for more concessional loans which reduce domestic borrowing and hence interest rates. They also reduce the amount spent on annual debt service as they are spread.
Therefore, Mr Kavindele is right when he stresses the significance of President Hichilema’s international engagements.