Zambia's Sata warns Chinese companies to obey the law

Michael Zata, Zambia's new president

Zambia's Sata warns Chinese companies to obey the law

The new Zambian President, Michael Sata told Beijing on Monday that he welcomed Chinese companies investing in Africa's biggest copper producer but only if they obeyed the law, especially by employing more Zambian workers.

A shift in investment policy

Sata, who was declared the new President on Friday, visited Chinese ambassador Zhou Yuxiao as his first official visit to dispel fears that his fierce anti-Chinese rhetoric while in opposition would translate into a shift in investment policy.

However, he made it clear that those Chinese companies that have so far ploughed more than two billion dollars into developing the mining sector in the country would not be getting preferential treatment.

"We welcome your investment but as we welcome your investment, your investment should benefit Zambians and not the Chinese. It is in law that all investors who are coming to Zambia should bring a limited number of expatriates whom they cannot find in Zambia. My party has taken concern at the unlimited number of people your investors are bringing to Zambia", Sata said.

Win-Win situation

Zhou did not specifically address the foreign workers’ issue. He told a news conference that Chinese investment was predicated on "win-win cooperation".

Reports say even though China was a major player in the former British colony, its presence is not universally appreciated.

Miners were said to frequently complain about poor pay and working conditions in Chinese-run mines in the Copper Belt and in 2005, several miners were shot and wounded after complaining to the management about their salaries.

Chinese building projects also employ many Chinese labourers to the disgruntlement of Zambian construction workers.

Non-Chinese mining companies in Zambia include London-listed Vedanta Resources, Canada's First Quantum Minerals and Swiss commodity giant Glencore's Mopani local unit.
 

Reuters/Shakira/Ekata