INDECO will not create jobs says economist

Plans by the Patriotic Front (PF) government to re-establish the UNIP parastatal, the Industrial Development Company-INDECO will not economically benefit Zambians, says Lusaka business man Maurice Sokoni.

Sokoni said that the move to re-introduce INDECO is aimed at taking the country back to the Kaunda era of authoritarian control of socialist economies.

Sokoni told the Daily Nation that pronouncements made by President Michael Sata in his New Year address to the nation that it will help create jobs is a far from the truth.

Sokoni said that the government wants to destroy everything that Zambia had built in the  past 20years by re-establishing INDECO.

He said re-introducing INDECO was the same as re-introducing inefficiency in the private sector.

Sokoni said the plans would only promote patronage adding that it would kill individual initiative which private companies have enjoyed in the past 20 years.

Sokoni further said the plan should be condemned by all well-meaning Zambians who understood how INDECO failed during the Kaunda reign.

He said it was unfortunate and surprising that some economists were supporting the government’s plans of the re-establishment of INDECO.

And according to media reports, should INDECO be re-established, President Sata would chair the board of directors for its effective results.

Commerce Minister Emmanuel Chenda is reported to have said that Cabinet had already given approval and the operations of the body is now being finalized and was set for official launch any time soon.

But MMD Vice President for political affairs Michael Kaingu has condemned the move to re-establish INDECO and has since urged the private sector to reject it.

Dr. Kaingu said the private sector should be worried because the PF government wanted to abandon the free market economy which was introduced by the MMD government. INDECO was a state owned company during Kaunda reign and it was liquidated after the country adopted the free market economy soon after the MMD formed government in 1991.