Scandalous Shocker: Zambia's Green Gold sold for a Song

Mukula tree also termed as the GREEN GOLD has continued to attract attention in the country mainly due to the illegality or under hand manner its being handled by Government from the time the tree's true value became clear arising from growing demand in Asia especially China. For starters Mukula tree is an exotic species of wood that at most takes 100 years to reach maturity and grows mainly in mountainous places of Eastern, Northern, Central, some parts of Lusaka and Muchinga provinces.Not so long ago Zambians in these areas began to exploit Mukula and selling it to local Chinese business people at very attractive prices such that one traditional leader confirmed that his subjects had abandon farming activities in preference to cutting and trading in Mukula. The trade went on for some time until Government expressed concern and before long imposed a ban in trading in Mukula, this happened just about two years ago. Government went further to create a task force headed by the Inspector General of Police to curtail trade in Mukula, a task force that was operating like the secret service drawing huge government resources without clearly spelt accountability mechanisms. This created friction between the Zambia Forestry and Forest Industries Corporation Limited-ZAFFICO-and the police a case in point was in Serenje where ZAFFICO Officers carrying out their mandate were arrested by Police on what was termed as a routine patrol. And so with the said ban in place and police operations the numbers of confiscated Mukula continued to pile up both within the country and neighbouring countries like Malawi, while the demand in China remained at its highest creating a fertile ground for corruption. For instance the decision by government to suspend the issuance and renewal of round wood harvesting concessions in Zambia siting the need to review the old regulations in order to enhance sustainability in management of forestry resources is one decision which begs further explanation as on the other hand government has announced the sale of piled up Mukula logs under the auspices of ZAFFICO. In this transaction four Chinese companies have been identified as sole buyers or importers to which ZAFFICO will sell the logs. The four Chinese companies are Shanghai Hu Nan Foriegn Economic Corporation Limited, Xinxudong International Logistics Company Limited, Zhanjiagang Free Trade Zone Zhouglian Wood Import and Export Limited and L & X trading Limited. With the lack of competitive bidding the four companies are buying the Mukula logs at a way too low price below the market value. The decision has disadvantaged many Zambians that wanted to take part in the auction and is more likely to throw local businesses in turmoil. It is opportunities like the one presented by Mukula and the demand that the country has failed to use to address economic diversification and its related issues like unemployment.

Zambia is also failing to use this resource in value addition, the Mukula logs are going to China in their raw form, only to come back in Zambia in polished tables, chairs, shoes and other ornaments which we pay at high prices, creating jobs and wealth in China. With the right political will and the desire to walk the talk regarding diversification, Mukula presented a starting point which unfortunately will be missed because of narrow selfish interest by a few individuals in government, who have decided single handedly to eliminate anyone else in the Mukula business, but deal with four Chinese companies for a precious resource that the country in general should derive benefits from.