23/06/2024
AN ANALYSIS FOR A RICE PROPOSED PROJECT BY A CHINESE INVESTOR.
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Critically, when considering this we need to put quite a number of things into mind.
Questions can be asked when trying to analyze the main motive of the investor of what he intends to achieve at the end of this project.
Affirmatively, the project looks like one could ever die for. However, rhetorically speaking there are hidden intents that the investment has. Will start by criticizing each condition or as been put "DEMANDS";
1). The Investor's proposed project, allegedly requires 6 million hectares of Land and must be converted to a leasehold of 99years. This indicates that this not a small project. To begin with, It is nationally established acknowledged law, that land can be alienated by the president to non Zambians under the Lands Act where he sees fit. But before doing so, let us pause a bit, why does this person/investor/company placing a demand for that land to be converted? will the project be limited if the land is not converted ? We haven't even smelled the fruits of this project yet why rush into converting of Land?
2). Land rates or ground rent is required to be complied With. This is one way the Zambian government generates its revenues through such avenues. A 99 year leasehold without Land rates. Why would it be so? under what compelling circumstances should an investor be exempted to a none pay of such rates ? Let us ask why .
3). He also demands a non payable leasehold of tax. Then what is our benefit with regards to such a big project whose returns are non taxable? It can only be exempted in certain circumstances the would be appropriate not as a whole in the entire duration of its leasehold.
4). Visa exemption, international laws apply and elucidate clearly why such a process is required to get a visa. Where, which one of them is to thoroughly investigate the authenticity of ones citizenship from where he comes from, and if any ecumbraces are with such persons.
5).Citizenship to the chairman, the Zambian Constitution stipulates on how one can attain citizenship e.g 10years is one way one can acquire citizenship. Looking at the intention of the investor he wants to run this project on a long run aspect for morethan a decade. Therefore, he would lawfully acquire such citizenship in that armbit.
6). Another demand, is that he wants no other rice to be grown apart from that which he will grow. When it comes to restraints of trade, they have to be placed on reasonable conditions. A leasehold of 99 years and no other rice should be grown? Coming to think of it, we don't know if their rice nutrients are better than ours. So, only a reasonable duration can be assigned to restrain other farmers if the government so wishes. In another realm, small scale rice farmers can also be brought on board to grow the same rice in order to prevent them from losing out on their income.
7). A 20 year exemption from corporate and income taxes, like aformentioned, a 20 year none taxed gigantic industrial business like this one is extremely an unreasonable fair to trade on for a foreign firm.
Consideration as to be placed to the negative and positive side of this project. Where possible, if the alterations or counter offers can be made, well and good. This project must be criticallly analyzed whether or not it is in the best interest of the nation.
Mwebantu
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