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Zambia: Livingstone Investments Bolster Economy

The Times of Zambia (Ndola)


August 16, 2006

Edward Mulenga

ONCE again, Livingstone has witnessed and celebrated the coming of another huge venture and continued investment inflow into the tourist capital by the Legacy Group, which will create more than 3,000 jobs.

This $200 million mammoth project has accentuated hopes of achieving a broader economic scope of the town and the nation.

Considering the prospects the project holds for Livingstone and the country, the enthusiasm exhibited by the witnesses to this occasion foretold the economic benefits and amount of redemption to be realised by the community from this venture.

July 28, 2006 was not an ordinary day for the Livingstone community as the unveiling of the foundation stone in the Mosi-Oa-tunya National Park by Vice-President Lupando Mwape proved symbolic.

Diplomats accredited to Zambia, chief executives of parastatal companies, investors and various people from all walks of life were there.

The project is being pioneered by a consortium of local businesses and Legacy Group of South Africa.

Legacy Holdings Zambia chairman Jacob Sikazwe said the investor would spend over $200 million to build two five-star hotels, 18-hole world class golf club, villas and a country club estate.

The two five-star Hotels, Mos-Oa-Tunya and the Queen Victoria with a world class 18-hole golf course, country club, arts and crafts centre and several villas, will ultimately contribute 1,790 rooms to the current bed capacity.

This development will definitely go beyond mere promotion of tourism in Livingstone.

Mr Sikazwe said at Zambezi Sun Hotel after the unveiling ceremony that the project would change the paradigm of the tourism industry which Government prioritised as second to agriculture.

And Legacy Group chairman Bart Dorrestein from South Africa hailed Zambians' passion for their country and was excited to be part of the project.

Legacy Group director of development Renatus Mushinge said construction of the first hotel would commence next year, but the entire project will be completed by 2010 in time for the World Cup in South Africa.

More than 3,000 permanent jobs will be created, 2,500 of them during construction and another 7,500 through various supplies and contracts.

Apart from these benefits to individuals, the project, through different statutory obligations and spill-over effects will create huge revenue for the Livingstone City Council, the National Airports Corporation (NACL), the Zambia Wildlife Authority (ZAWA), Zambia Revenue Authority (ZRA) and others.

Revenue estimates of over K30 billion will be realised every year, which will be significant in reconstructing Livingstone and boosting its tourist activities, bearing in mind the implementation of the decentralisation policy.

Unveiling the foundation stone, the Vice-President commended the Legacy Group for choosing to invest in Zambia, and was happy with the growth of the real estate industry in the country.

He said the 3,000 and more jobs to be created by the construction of two five-star hotels and a golf course, would significantly bolster the economic footing of Livingstone and Zambia as a whole.

The increasing investment into Livingstone and the whole country, he said, was a clear testimony of the confidence investors had in Zambia's enabling environment for business.

Although Zambia offers one of the best investment atmospheres in the sub-region, some of the challenges, which it, however, faces, including inadequate marketing, human resource, poor infrastructure and others, are being addressed through various instruments.

The overhaul of the Livingstone International Airport to increase capacity, enhance infrastructure and boost tourism further is one of the corrective measures.

According to the Vice-President, giving the Legacy Group 200 hectares of prime protected land demonstrated Government's value attached to the project.

Furthermore, no exclusive zones should be created on the new complex and social amenities so as to deny locals access, but be made accessible to Zambians to appreciate their acceptance of the project in their land.

On racism, Mr Mwape sent a strong warning to culprits who were mostly tour operators from Livingstone and tasked Southern Province Permanent Secretary Darius Hakayobe to submit a report on the abuses of workers for appropriate action.

And Ministry of Tourism, Environment and Natural Resources director Judith Wake said the increasing investment in the sector would stimulate rural development, income generation and job creation.

She said tour operators were not following labour laws and resorted to manipulation of workers using different gimmicks, including the Kwacha appreciation to threaten reducing their workforce.

She said reports of abuse were rampant and required them to honour the statutory K268,000 lowest salary threshold set by Government.

Investors must pass on Livingstone's localised incentives to their workers and the community at large.

She said the ministry, in collaboration with other wings, would deal firmly with the reports of abusing workers by tour operators.

Overjoyed by the development, Mr Hakayobe said Livingstone and the people of Southern Province should guard the investment jealously as it would benefit them.

The Zambia Wildlife Authority (ZAWA) has already signed a memorandum of understanding with The Legacy Group authorising the project.