Privatization of Zambian Companies – The Sad Truth.
It is a well-known fact that the privatization of Zambian Companies destroyed the once vibrant Zambian economy. A lot of Zambian anti-privatization crusaders have claimed that the privatization process in Zambia was poorly done resulting in the ever-declining performance of the Zambian economy.
Privatization destroyed many Zambian industries. Zambia used to produce glass (Kapiri), batteries (Mansa), bicycles (Chipata), motor vehicles (Livingstone), etc.
Most of these companies were either liquidated or sold off. Some companies like Zambia Airways and UBZ were liquidated while many others were privatized like Zambia Sugar and National Milling.
Once privatization and liquidation kicked in, it was impossible to save all the companies. It was also impossible to keep all the employees, which resulted in massive job loss.
Zambia was better off with parastatals controlling and exploiting our resources. Some of the best performing companies in the world are parastatals, and we should therefore have more of them. Examples are Emirates Airline, Qatar Airways, Singapore Airlines and many Chinese parastatals.
Zambian economy is now solely controlled by foreigners, which is necessarily a negative ideal for progress. Take for example Glencore, the company running most Zambian mines; if it decides to pull out and halt production, Zambians suffer the most because jobs are lost. Foreign investors have no interest about the livelihood of Zambians, all they care about is the profit they can make and ship back to their respective nations. Foreign investors don’t care about Zambia at all.