WHAT IS THE REAL OPPORTUNITY COST OF THE $13MILLION KAFUE FLYOVER?
By: Anthony Bwalya – UPND Member.
Today is the day the Patriotic Front (PF) regime and President Edgar Lungu will once again parade the media and play and dance to the gallery as they commission the Kafue Flyover decongestion project.
The project has been built with $13m of debt money from India via EXIM Bank of India, and built by an Indian contractor – AFCON. Please note that because of the structure of implementation of the project, 75% – 80% of the project amount never actually came to Zambia, while Zambians will still be expected to pay around 10% of US dollar driven interest on the original loan amount.
So, we have the flyover yes, but what inherent economic value has the flyover generated which will generate $15m over the next 5 – 10 years for example to be able to pay back the loan in respect of this project?
For a UPND administration, $13m would have been enough money to recapitalize MULUNGUSHI TEXTILES, creating around 4,000 direct jobs, with another 1,000 indirect jobs through textile supply chain linkages such a cotton outgrower schemes, transport and logistics.
From the direct jobs alone, at our current personal taxation reforms proposals, that is $2.5m in tax revenues per annum for the country; while if we extend the revenue gains across the entire textile supply chain, the value tops $5m in tax receipts per annum.
With just Six (6) years of functional operation of a recapitalized MULUNGUSHI TEXTILES, a UPND administration would generate enough tax revenues to be able to not only repay the initial $13m loan amount, but also generate enough cash internally to build the equivalence of the Kafue Flyover.
For the PF regime, we Zambians will only have the flyover to look at while looking for money to maintain it – zero actual economic value.
But while this is going on, do Zambians know that some high ranking elected politicians in the PF are having luxurious lodges being built for them in our national parks using kickbacks money from infrastructure projects such as this one, although not exactly this particular one.
Wake up my people.
Tell your neighbor and ask your neighbor to tell their neighbor.
2021 is the year of Independence.