Sunday, February 20, 2011

Lambo in Lusaka

I had to take a double take cruising down the road the other day. For a moment, I thought I was back in Orange County. A sleek, white, Lamborghini was pulling out of a gated household onto the streets of Lusaka. Yep, that's right, a Lambo. So many thoughts and feelings overwhelmed me that I nearly fell over.

1) Why would you want to drive a Lamborghini in Lusaka? There are probably only 3 roads in the entire city that are safe to drive - the rest are ridden with enormous potholes, in complete disrepair, or have yet to be paved. There are also ginormous speed bumps on the few roads that are paved. In fact, there is one just outside of the gate the Lambo pulled out of - it COULDN'T have driven the other way down the street! I bet the owner even hires a security guard to take with them and watch the car while they are getting milk at the store.

2) The blatant disregard for the surrounding poverty makes me want to hurl. Import duties on cars in Zambia nearly double the cost paid compared to the actual worth. That's right, double the cost of that Lambo - you are talking big bucks. That is, unless there are other, hidden, deals at work... Can you imagine visiting the big city from a village - with hardly enough to feed yourself and your family, struggling to survive, and seeing this slick car that only exists in the movies and Orange County? Surely, its driven by some 'important' politician or businessman showing their 'importance' with the value of their car. Why are they busy showing their 'importance' rather than using it for some more wholesome, helpful purpose?

Prompted by the Lambo siting, I have paid more attention to the cars on the streets of Luska. I have noticed more and more exotic cars: Mercedes, BMWs, Hummers. Is this actually a sign of a growing middle class exercising their newly found purchasing power? Hmm, I think not. I think its a sign of other, more pernicious methods of obtaining wealth. Bummer.

6 comments:

  1. Not sure any of my coworkers can quite afford a Lambo, but this article touches on the wealth divide between the urban professionals/ miners, and then everyone else. Kind of a tale of two Zambias:

    http://www.economist.com/blogs/baobab/2010/12/statistics_zambia

    It's also good to know someone's noticing how damned expensive things here are!

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  2. You my friend are a complete idiot with little to show for Zambia's development. The individual driving the Lambo will cause questions to arise in terms of "dreams being achievable".
    People like you contribute to Africa's poverty. I bet you, you can't even feed 10 children whilst individuals with cash not only contribute to the economy through taxes & business, they increase Lusaka's likability. People from wealthy countries don't want to come to a country and see Toyotas everywhere. That puts people off!
    However if you see people of wealth and cars to represent it, then it shows you that it's a lucrative investment place.
    Investment & business are the only keys to getting a Country out of poverty. Your useless idea of " don't spend money, give it to charity" has, never and can't ever work! Look at how much Africa has received in foreign aid. Why is this place not rich? Why has Africa failed to produce Cars, Technology, or any other viable necessity in the 21st century whilst other places, previously as poor as this Continent has gotten themselves and their people higher standards! India has a growing middle class and is on the up. China and other Asian countries have got a lot to show for they previous poverty whilst Africa, let's face it, hasn't.
    Then when individuals who are enjoying the fruits of their labour have it, idiots like you with your socialist agenda show up and criticize them. What a complete fool you are. By the way I am a black Zambian who has spent most of his life abroad. Recently come back and shocked at how my people have no passion to get themselves out of poverty. Also heavily insulted that individuals like you have access to the internet.
    For your own sake, I do hope you rid yourself of the word expensive and make something more of yourself.
    Become a billionaire and feed these kids yourself.

    Insulted.

    S.K.

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    Replies
    1. Dear S.K.

      Thanks for your comment. You raise a lot of good points and think that you are I wouldn't disagree on as much as you might think.

      You mentioned the idea of "Dont spend money, give it to charity". I don't agree with that sentiment either, nor do I think I vouched for it in my post. I agree with you that investment and business are key to a country's development. I was merely pointing out that such a large amount of money (spent on the car) might have been more aptly invested elsewhere if the individual's aim was to develop the country.

      Assuming the Lambo cost $250,000 (low estimate), including insurance ($5k) and shipping ($5k) (also probably both low estimates), according to http://www.zra.org.zm/Motor_Vehicle_Clearance2.php, the cost of importing the car would come to about $230,140 in taxes alone. If this amount were indeed paid in full (curious if you think it was), this would be a great tax haul for Zambia, which could then be spend from the government coffers on projects that the Zambian government decided to invest in, if it was used wisely (curious if you think it would be).

      Instead of a Lamborghini, perhaps the individual could have 'settled' instead for a Hummer, fancy BMW or Mercedes. Then, with the left over $200,000 saved in import duties, taxes, and cost of the car, invested or started any number of businesses in town, and surely fed more than 10 children. I would think that a Hummer/BMW/Mercedes would still satisfy your requirement to show a lucrative local investment community by the kind of cars people drive.

      Cheers.

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  3. I agree on many points as you have pointed out.

    However, I'm still not a 100% with saying he should have settled for something cheaper and used the money wisely to invest in something better.

    The are chances it was gotten through corrupt manners ( as Africa is poorly managed by it's leaders).
    But should ( and I believe so) he got it through legitimate means, then that means he provides good service to the country through his business which employs people and pays it's taxes.
    Hopefully buying the Lamborghini would have him thirsty for more wealth in which he then would start MORE businesses and employ MORE people and paying MORE taxes.

    As the saying goes" nobody gets something out of nothing".
    A story of China's success is found fundamentally in it's peoples business initiatives and the dream of becoming rich.
    America was built this way and almost every working society hangs on people going into business to get rich.

    To some this means getting Lamborghinis. Unlike you, I don't believe the car is a display of wealth.
    It could merely be a display of him being in love with the brand.

    Why marry Allie ,eventhough she's beautiful, when you truly are in love with Alice for example?
    This is to denote him buying a Hummer or BMW for that fact.

    Also, not to defend the man as I don't know him, but most wealthy people buy what they WANT.
    There is no difference between Warren Buffet and Larry Ellison.
    Many say that Warren lives frugal. But that is because he WANTS to live the way he lives.
    He may have a 10 year old car to drive but let's not forget he's got hundreds of millions of dollars in paintings!
    Larry Ellison may buy himself a huge yacht but that doesn't mean Warren is a holier person for not spending like Larry does.

    Money is meant to be circulated, not horded. That is money's basic principal.
    If America's rich stop spending ( as did happen in this past recession) everything goes really... really... bad.
    It affects the economy BADLY.

    This is why Luxury goods manufacturers and car makers are FLOCKING to India and China. Why? Because they are SPENDING.

    I don't applaud every person in Africa with a flashy car as most probably are only doing it to show off. However I do believe that when we see an honest man ( tested through community to be honest and of integrity) buy something costly.
    It should be applauded. Africans have brought each other down for long enough. Instead of being jealous of their neighbor they should applaud him. This will kill strife and envy and possibly increase productivity.
    In turn the rich would feel obliged to help their fellow people, not fend them off as beggars.

    Based on your article, Africa is a begging entity that the rest of the world should pity and take care of.
    Nobody likes beggars. Fact.
    Wealth is the only solution to poverty.

    E=MC (Squared)
    Relativity, when somebody is sick they need health. When it's dark, you need light.
    When you're poor, you need wealth.

    --->>>

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  4. --->>>

    I'm not saying the man in the Lamborghini is a saint, he could well be a corrupt individual who got his means badly. However no such report has come from those who know him and the public in general.
    His shops are all over Zambia and he has businesses that certify him to be where he is.

    Africa has been through worse and it's time things get better.
    If I tell my friends in Europe that there Lamborghinis in Lusaka.
    Because of media influence, they are far more likely to visit the place than if I told them " no, nothing flashy in Africa, maybe a BMW or Mercedes or so, but more Toyotas than anything", chances would greatly diminish of them wanting to come on holiday.

    Despite Africa being the World's second largest and second most populous Continent, it accounts for less than 5% of the Worlds tourism.

    People don't want to come to Africa for holiday. Fact taken in.
    Why? Because nobody wants to go away from their stress to see people in poverty and not moving forward.
    Holidays are to be taken to reduce stress levels but the thought of Africa ( though it can be a very relaxing place to be) is that it's stressful dangerous and crazy.

    If you go to the OC as you stated and looked for a house to live, would you feel endangered?
    Hardly. Why? Because wherever there is wealth, crime rates are lower and it's safer to live.
    But go to Detroit for example. You'll have to carefully select where you go because it's not safe everywhere.
    Why? It's poorer.

    Now if you went somewhere and never knew anything about the place but saw Lamborghinis, Rolls Royces etc
    And went to a similar place ( not a ghetto) with toyotas and the most average of cars everywhere, where would you naturally be inclined to live if money was no issue?

    I thought so. It's human nature to chose something safer, better and progressing.
    In the Are with the high profile cars you would automatically asume, medical care to be better, schooling to be top notch and law enforcement strict.

    Why? Because if people spend that much on cars, they are willing to spend a lot of taking care of themselves.

    Anybody coming to Africa who sees such cars will think that they'll be taken care of whilst their stay.

    Thank you.

    S.K.

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  5. You only live once, when you die, you live this shit behind. So...if you get the money who the hell are you to tell me how to spend it. The author of this article is delusional, America has so many poor people living in the streets, at the same time, multi millionaires that own excessive wealth. Maybe he should focus on his country and tell the rich folk over there to stop buying homes worth tens of millions of dollars or fleets of exotic cars and instead give the money to charity and help the poor.

    Infact, go back to your whereever you came from and let the Africans live their lives. You seem to be happy to still see them driving cheap cars and appearing poor all the time and begging from your kind for money, the moment the black man uplifts himself and surpasses you in wealth then its a problem and all of a sudden you have reasons for him not to spend that kind of money. The white man has always thrived on seeing the black man down as it gives you a sense of authority over them, my friend times are changing.

    You my friend are a disgruntled old white man and go back to your country and let us run our affairs and spend as we like.

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