- Madam Speaker
I stand here today to address you on a matter that has generated a lot of public interest and debate. This is the issue of USD72billion proposed investment in rice production in Luapula, Northern and Muchinga Provinces by Viet-Zam Diversified Cooperation Limited. I wish to take this opportunity to provide some clarifications and more information, which hopefully will put this matter to bed.
- Madam Speaker
As Honourable Members of Parliament maybe aware, the Ministry of Commerce, Trade and Industry is responsible for administering policies as well as regulating activities in the trade and industrial sectors in order to enhance the sector’s contribution to sustainable social economic growth and development for the benefit of the people of Zambia. One of the specific functions that the Ministry is responsible for, as contained in the Government Gazette Notice Number 1123 of 2021, is the Investment Policy.
In this regard, the Ministry, through the Zambia Development Agency (ZDA), which is the sole agency of Government responsible for promoting and facilitating trade and investment in Zambia, receives investment proposals from a broad range of local and foreign investors. When these investment proposals are submitted, they are appraised to determine whether they can be granted investment licences in their proposed investment area based on established investment criteria.
- Madam Speaker
The Zambia Development Agency (ZDA) received an unsolicited application by Viet-Zam Diversified Cooperation Limited that offered to invest USD72 billion over a period of 20 years and requested to be granted land to the extent of 6 million hectares. The investor offered to invest USD12,000 dollars per hectare totalling 6 million hectares over a period of 20 years. This is what translates to the USD72 billion. Further, the investor requested for a number of concessions including tax breaks.
- Madam Speaker
In view of the significance of the proposal, it was necessary for ZDA to consult key stakeholders. In this regard, ZDA brought together key stakeholders who included traditional leaders namely; Chief Matipa from Northern Province and Chief Chisunka from Luapula Province, to consult on the matter on 18th June, 2024. Other key stakeholders invited for the meeting included those from within Government.
Iam informed that during the meeting, it was made clear to the investor that granting such an amount of land by Government was not tenable. To this end, the investor was guided to apply for a smaller piece of land in line with the already existing farm block concept where a domestic or foreign investor could apply for up to 20,000 hectares of land for their project. The guidance provided was not in any way an approval to grant 6 million hectares of land.
- Madam Speaker
I must emphasise here that ZDA has no legal mandate to allocate land of any size let alone the purported 6 million hectares. It was a proposal to which a final conclusion has not been reached. There is no agreement that has been signed neither has Government approved any of the other requests that the Company was making. Government is well aware of the risks associated with allocating such huge tracks of land to a single investor and hence the guidance to the investor to consider applying for a smaller parcel of land.
I wish to reiterate that there was no pronouncement on the part of Government to confirm such an allocation of such a huge tract of land or any amount of land for that matter.
- Madam Speaker
As I conclude my statement, I wish to indicate there has been increased interest to invest in Zambia from both local and foreign investors. Consequently, we have been receiving a lot of investment requests. Our role, through the ZDA, is to receive these proposals and assess their suitability.
I wish to assure you Honourable Members that where necessary we request other Government agencies to conduct Due Diligence on proposed investments.
I wish to state as follows:
- The USD72billion was a mere proposal and no agreement has been signed; and
- There is no land that has been allocated to the investor and neither has Government approved any of the requests that the investor was making such as tax breaks, lease fee waiver and citizenship.
I wish to seize this opportunity to express our gratitude to the public for the feedback that we have received on this matter. This shows the importance we attach to our valuable resource, our land. I wish to assure the public that as we promote investment, we remain guided by the laws of the land.
Madam Speaker, I thank you!
