Zambia: Japan Opens Door for Local Tobacco Growers

Source from:  Times of Zambia  10/15/2012

JAPAN Tobacco, which is one of the largest cigarette manufacturers globally, has signed a contract with about 7, 000 Zambian tobacco farmers to enable them supply the commodity to the firm, senior executive vice-president Ryoji Chijiiwa has said. Mr Chijiiwa said his firm had been buying tobacco in Zambia for many years and it had since signed a contract with about 7, 000 Zambian tobacco growers so that they could have a ready market for their produce. He was speaking here on Thursday when President Michael Sata and the Zambian delegation met with several Japanese business executives in the Keidanren Kaikan Conference room. "We also provide 300 jobs locally here in Japan because of the tobacco procurement base we have in Zambia," Mr Chijiiwa said. He appreciated the cooperation and support his company had received from the Zambian Government and expressed hope that such cooperation would continue. About 40 Japanese business executives from different business associations and companies attended the meeting. Representatives of a committee on sub-Sahara Africa, Sojitz Corporation, Nippon Koei Company Limited, Hitachi Construction Machinery Company Limited, JX Nippon Oil and Gas, JGC Corporation, Japan Airlines, Japan Ship Exporters Association, Japan Tobacco, Japan External Trade Organisation, Shimizu Corporation, Kubota Corporation, Toyota Tsusho Corporation and Toshiba Corporation were some of the business executives who attended the meeting. Mr Chijiiwa urged the relevant authorities in Zambia to double their efforts aimed at controlling inflation and also ensure that the exchange rate was stable. Hitachi Construction Company Limited general manager for Africa and Middle East Department in charge of sales and marketing division, Shunya Hashimoto said his firm had set up a recycling plant in Lusaka to recycle mining equipment in Zambia. Mr Hashimoto said the Lusaka plant would be a hub for surrounding countries in the region, especially Mozambique. "In order for the Lusaka plant to be effective to clients, I think we need quick clearance of goods at the borders," he said. Agriculture and Livestock Minister Emmanuel Chenda said Japan Tobacco was one of the major players that bought the commodity from Zambian producers. Mr Chenda, however, urged the firm to consider adding value to local tobacco by processing the commodity and exporting it to the outside world as a finished product to create the much needed jobs in Zambia. On border clearance challenges, Foreign Affairs Minister Given Lubinda assured Mr Hashimoto that the Zambian Government was working on setting up one-stop border facilities to speed up the process of clearing people and goods at the borders. Mr Lubinda said Zambia was aware of its strategic location in the region and, therefore, it was important that goods were cleared quickly to stimulate trade and investment. Bank of Zambia Governor Michael Gondwe said the Zambian Kwacha had been quite stable compared to other currencies in sub-Saharan Africa. Dr Gondwe told the Japanese business executives that the Kwacha was fluctuating in line with the volatility in the Eurozone. "The Kwacha has only dropped to about seven per cent which is not much when you look at other currencies in Sub-Saharan Africa. "President Sata has ensured that we have a stable currency and we are also currently engaged in rebasing the Kwacha because most economic fundamentals in Zambia are doing fine," Dr Gondwe said. Ministry of Commerce, Trade and Industry senior economist Chibwe Chisala challenged Japanese manufacturers to consider setting up a vehicle assembly plant in Zambia to exploit the existing market locally and regionally. Mr Chibwe said value addition opportunities existed in Zambia in areas such as textiles, motor vehicles, motor cycles and bicycle assembly. "Leather processing, wood processing and fish processing are yet other investment opportunities in Zambia. "We also appeal to Japanese investors to consider processing Zambian copper because we are one of the major copper producing countries globally. Our emphasis is on value addition and quality job creation," Mr Chibwe said. Tourism and Arts Minister Sylvia Masebo, Finance Deputy Minister Miles Sampa and Zambia's Ambassador to Japan Ng'ona Mwelwa Chibesakunda were some of the notable Zambians who attended the meeting with Japanese business executives. Chairperson of committee on Sub-Sahara Africa as well as Japanese's Sojitz Corporation Yutaka Kase was the moderator for the meeting. Mr Sata is today expected in the Japanese city of Hokkaido on his continued working visit in Japan. Enditem