By KALONDE NYATI
A GLOBAL professional services company has said local input in the extractive industry is critical to maintain harmony and fairness in the distribution of wealth from the mining sector.
KPMG Africa chairman Moses Kgosana said while foreign direct investment is necessary for Africaâ€™s development, governments should introduce legislationthat will encourage partnerships between local and foreign investors to mitigate industrial challenges that have characterised many African countries, particularly southern Africa.
Mr Kgosana said encouraging partnerships between the local investors, particularly those in communities where mining firms operate and international investors, would provide locals access to resource ownership.
â€œLocal participation is critical and sound governments must find legislation that ensure that while international investment is encouraged, these investors should partner with locals to develop the skills and talent. That way, jobs and poverty alleviation are assured,â€ Mr Kgosana said during a KPMG client cocktail in Lusaka recently.
Mr Kgosana said increased partnerships in the management of natural resources would also promote beneficiation of the resources, unlike the current trend where natural resources are exported in their raw form.
Mr Kgosana, who hailed Zambiaâ€™s positive economic growth over the past years, said KPMG is ready to help the country to benefit from the mining industry to accelerate economic growth.
At the same occasion, Bank of Zambia deputy governor of administration Tukiya Mabula-Kankasa said the central bank is committed to maintain the trajectory of at least seven percent growth in the medium to long term.
Dr Mabula-Kankasa also called on investors to take advantage of the good business environment in Zambiaâ€™s agriculture, mining, construction and tourism sectors.
By KALONDE NYATI