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Chief Mwase Concerned With High Intake Of Kachasu

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Chief Mwase Concerned With High Intake Of Kachasu

Senior Chief Mwase of the Tumbuka people in Lundazi district in Eastern province has bemoaned the high intake of a local brew commonly known as Kachasu amongst his subjects in the chiefdom.

In an interview with ZANIS, Senior Chief Mwase said Kachasu is highly potent and causing wide-spread poverty in Mwase Chiefdom as people choose to take the alcoholic drink at the expense of engaging in productive activities.

The Chief said there is need to take punitive measures to deter people from brewing such type of alcohol to deter them from being unproductive due to drunkenness.

He disclosed that some villagers were also secretly producing the local brew and also buying some from other chiefdoms within the district.

“I have banned the brewing of kachasu in my chiefdom. However, the commodity is still being accessed from the neighbouring country during the trading time called Bwandila when Zambians and Malawians meet every Thursday to trade at a border town in Malawi,” he lamented.

He expressed concern that both men and women were in the habit of drinking beer as early as 06:00hrs and have no time to engage in productive activities such as farming and trading.

The traditional leader said Kachasu drinking had also resulted in parents not taking their children to school as they prioritise spending their little earnings on beer.

He said the selling of Kachasu was even happening within a named school grounds in his chiefdom, leading to mushrooming of brothels at Kachasu trading sites.

The chief has since called on security wings to come in and help control the situation as his efforts to fine offenders had drawn a blank.

The traditional leader observed that development would only come to his chiefdom if people stopped abusing alcohol and engaged in productive activities.

President Hichilema Launches The Lusaka International Arbitration Centre

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President Hichilema Launches The Lusaka International Arbitration Centre

President Hakainde Hichilema has commended the establishment of the Lusaka International Arbitration Centre that will provide a platform for resolution of commercial disputes.

President Hichilema noted that the centre befits international status and is expected to provide alternative dispute resolutions while helping the country improve the quality of transactions.

Speaking when he officially launched the Centre in Lusaka , the President said he expects more value from the institution to support the justice system within the country.

The Head of State said the platform is important to the overall economic expansion agenda for Zambia.He listed a number of transactions that could have been resolved without spending huge sums of money, had the Arbitration Centre been operational.

President Hichilema cited the debt restructuring that presented a complicated process, thereby causing challenges in unlocking the economy.

President hichilema during the launch of the Lusaka International Arbitration Centre

“This platform is extremely important to our overall economic reconstruction agenda, it provides a professional component to the various transactions,” President Hichilema said.

He explained that Zambia is one of the preferred investment destinations, hence the establishment of the centre will raise confidence to potential investors.

“We believe this Centre will discharge its duties to help us refine a number of frameworks for better transactions,”the Head of State noted.

He committed support to the success of the Arbitration Centre in an effort to unlock transactions that contribute to the country’s economic growth.

Meanwhile, Minister of Justice Mulambo Haimbe said the launch is a significant milestone not only for the alternative dispute resolution community but also Zambia as a country.

Mr Haimbe said the LIAC represents a new chapter for Zambia’s journey of becoming a leading centre for commercial dispute resolution in Africa and beyond.

“Arbitration has long been recognised as a preferred method of resolving commercial disputes due to its flexibility, neutrality and expertise in specialised areas,” Mr Haimbe said.

And Minister of Commerce, Trade and Industry Chipola Mulenga highlighted the challenges businesses operating in Zambia previously faced in resolving commercial disputes through traditional court systems.

Mr Mulenga explained the complexities that hindered investment and economic growth in the country.

LIAC Board Vice Chairperson Lungisani Zulu said the place for commercial disputes or transactions will no longer be London but settled by Arbitration at the Lusaka International Arbitration Centre.He called on the business community to utilise the centre.

LIAC Board Chairperson Dr Chabuka Kawesha disclosed that the centre was incorporated as an alternative resolution administrational body by the private sector association including the Law Association of Zambia, Zambia Chamber of Commerce and Industry, Bankers Association of Zambia, Engineering Institution of Zambia, Italian Business Club and French Business Circle among others.

A Wake-Up Call to society: Addressing Misuse/Abuse of Natural Resources Authority By Traditional leaders

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A Wake-Up Call to society: Addressing Misuse/Abuse of Natural Resources Authority By Traditional leaders

Recent incidents in Zambia have brought attention to the significant roles traditional leaders play in the management of natural resources, prompting widespread calls for increased transparency and accountability. While the President bears primary responsibility for overseeing resource management, it is essential to recognize the substantial influence that traditional leaders wield in safeguarding these invaluable resources within their respective domains. However, the emergence of a troubling trend involving certain traditional leaders misusing their authority, particularly in the exploitation of timber and other natural resources, demands immediate and concerted action from society.

A recent report released by the Zambia Police underscores the critical need for enhanced monitoring and supervision of traditional leaders’ activities concerning resource management. The apprehension of Chief Chikwa of the Senga people in Chama District for engaging in unauthorized timber harvesting within a restricted area serves as a poignant illustration of this issue. Deputy Police Public Relations Officer, Danny Mwale, disclosed that Chief Chikwa’s encroachment into the restricted zone led to his arrest by the Central Joint Operation Committee. While Chief Chikwa awaits further legal proceedings subsequent to his release on police bond, this incident deeply reinforces the fundamental principle that every individual, regardless of their societal status, must be held accountable for their actions.

The involvement of traditional leaders in illicit activities related to the timber trade is a matter of grave concern, representing a significant breach of trust within their communities and a detrimental undermining of their authority. Multiple instances have surfaced, indicating the complicity of certain chiefs in unlawful timber trading activities across various regions.

Immediate and decisive measures are imperative to combat the pervasive menace of illegal logging and resource exploitation. Accountability must extend beyond the immediate perpetrators to encompass those who enable or condone such nefarious actions, including traditional leaders. It is imperative to fortify monitoring and enforcement mechanisms comprehensively to avert further degradation of ecologically sensitive areas and game management zones.

In my capacity as the Secretary General of the Forestry Institute of Zambia, I wholeheartedly endorse the urgent call for action against the misuse of authority by traditional leaders. Upholding the principles of transparency, accountability, and sustainability in resource management constitutes a fundamental prerequisite for safeguarding the interests of both present and future generations. Let us seize upon this wake-up call as an opportunity to reaffirm our unwavering commitment to responsible environmental stewardship.

Historical Context: Traditional Leadership and Forest Management

Traditional leaders have traditionally played pivotal roles in forest management throughout Zambia’s history, dating back to the pre-colonial era. Kings, Chiefs, and headmen exercised considerable authority over land and resources, governed by the tenets of customary law. However, the advent of colonial intrusion during the 1900s precipitated a significant diminution in the authority of traditional leaders, culminating in the transfer of forest management control to colonial administrators. Subsequently, in the post-colonial era, Zambia adopted a dual governance model, seeking to harmonize statutory regulations with traditional practices overseen jointly by governmental bodies and traditional leaders.

Governance Expert Criticizes Chief Chikwa’s Arrest

Radio Phoenix has reported the scathing critique issued by Governance Expert Wesley Miyanda regarding the arrest of Chief Chikwa in Chama district for purported timber harvesting within a Game Management Area. Mr. Miyanda contends that administrative recourse should have been pursued, given the Chief’s custodial responsibility over land. He castigates the expeditious arrest of Chief Chikwa compared to the apparent immunity enjoyed by the perpetrators responsible for the despoliation of Lusaka’s Forest 27, insinuating potential political interference.

Chief Chikwa’s apprehension serves as a poignant reminder of the broader governance challenges, particularly concerning the enforcement of environmental statutes and the delineation of traditional leaders’ roles in resource management.

The foregoing discussion underscores the inherent complexity of the issue at hand, wherein divergent perspectives emerge. While one school of thought commends law enforcement for its proactive stance in apprehending a purportedly errant chief, an opposing viewpoint advocates for administrative redress owing to the custodial responsibilities vested in traditional leaders. Nevertheless, the imperative of addressing the misuse of authority by traditional leaders necessitates a collaborative and transparent approach involving all stakeholders, encompassing governmental authorities, citizens, and royal traditional establishments.

By holding individuals accountable and fortifying governance mechanisms, Zambia can safeguard its natural endowments for the prosperity and well-being of future generations.

Lastly, I humbly request and implore His Excellency, President Hikainde Hichilema, and the esteemed House of Chiefs to intervene decisively in this matter, thereby upholding the dignity and integrity of our respected traditional rulers.

Eng Chaliafya Katungula
(Forestry Expert)
Secretary General
Forestry Institute of Zambia

UN Calls For Emergency Aid To Zambia

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UN Calls For Emergency Aid To Zambia

The United Nations has called for emergency humanitarian aid in Zambia due to the El nino induced drought, which has destroyed almost half of the country’s staple corn crop.

According to the UN Children’s Fund reports that more than six million Zambians, half of them being children, have been affected by the drought.

Speaking at a media briefing, UN Assistant Secretary General Reena Ghelani says two million crops have failed and six million Zambians are in need of food supplies due to the drought.

And Ms. Gheleni who is also the UN Climate Crisis Coordinator for El Nino said the amount of crop failure that the country has faced is very devastating and leaves many people in need of food aid.

Ms. Ghelani has called on the international community to respond quickly to avoid further damages.She stated that the government has responded quickly by releasing food from its strategic reserves but there is need for external help to fill the gaps.

Speaking at the same event UNICEF Regional Director for Eastern and Southern Africa Etleve Kadili fears that the drought might cause a huge impact on children in Zambia.

Ms. Kadili charged that the drought is likely to affect nutrition for children which might result in stunting if the crisis is not handled quickly.

Konkola Copper Mines clarifies mine accident claims

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Konkola Copper Mines clarifies mine accident claims

Konkola Copper Mines Plc (KCM) has issued a statement in response to media reports alleging a mine accident resulting in the deaths of two miners at the Chingola Open Pit (COP) number 5 on March 30, 2024. While expressing sympathy for the families of the deceased miners, KCM clarified that the COP 5 mine operation, also known as overburden number 5 (OB5), does not belong to KCM.

According to the statement issued by Shapi Shachinda, General Manager Corporate Affairs at KCM, although COP 5 was once a KCM operation area, it is currently not under the company’s ownership or management.

KCM emphasized its commitment to enforcing safety and security measures across all its operational areas to protect the lives of its employees, as well as the surrounding communities. These measures align with safety protocols mandated by the government-run Mine Safety Department (MSD).

President Hichilema Commissions Agric Hub

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President Hichilema Commissions Agric Hub

President Hakainde Hichilema has said government is resolved to work in collaboration with the International Institute of Tropical Agriculture (IITA) in its agenda to promote agricultural productivity and food security in the country and beyond.
Speaking when he commissioned the IITA Zambia facilities Southern Africa Research and administrative hub in Chongwe, Mr. Hichilema said the expertise the institute is providing in agriculture research will help to improve food security in the country.

President Hichilema explained that the ambitious journey Zambia has embarked on to increase crop production needs concerted efforts and effective research in the Agriculture sector.

“So we must make use of IITA in our quest to improve crop production and food security at household level, much as the country has arable land, water bodies and favourable climatic conditions, there is need to leverage on improved research in the agriculture sector, “ he said.

The President has since called on his Ministers and other stakeholders to work in unison with IITA which is expected to give Zambia varieties of drought resistant crops such as cassava.

He said the improved cassava variety that IITA has brought to Zambia gives a huge tonnage of yield per hectare and should be rolled out to all the provinces of the country for farmers to be using it.

“Zambia is currently looking for crops that are resilient to adverse effects of climate change such as cassava among others, so the research interventions that come with this IITA will help to improve on the yield, “he said.

President Hichilema further reiterated government’s commitment to empower women and youths with capital for them to venture into value addition on agriculture products.He implored Zambians to take farming as a business by mechanising the sector in a quest to make it attractive to young people who have been shunning the sector for years.

Mr. Hichilema also urged IITA to work in partnership with Zambian agriculture research institutes such as Zambia agriculture research institute among others to effectively find scientific information on how to boost the agriculture sector.

“What we want now is to increase food production to promote food security at household level, food is very important to human beings because you cannot put on a suit and tie when you are hungry, “President Hichilema said.

He said to this effect, he urged the African Union and other world bodies to prioritise and tilt their agenda on matters pertaining to agriculture and support economic issues as opposed to promoting politics only.

And IITA Director General and Regional Director for continental Africa, Simeon Ehui said his organisation is happy to launch a regional hub in Zambia which will serve as a melting pot for innovation research, capacity building and knowledge sharing in research and agriculture.

Dr. Ehui added that the partnership with the Zambian government reflects a mutual commitment to drive food systems’ transformation and improve the lives of millions of smallholder farmers in Zambia.

And Dr. Ehui announced that IITA has gained full diplomatic status as an international organisation working in Zambia, according to the Zambian government.

“This timely development will strengthen partnership with government and increase IITA and CGIAR’s contribution to the research and agricultural transformation efforts in the country,” he said.

Nigerian former President Olusegun Obasanjo called on the Zambian government to treat agriculture as a business.
He observed that once agriculture is taken as a business, it can survive in the midst of climate change conditions such as prolonged droughts among other adverse effects.

The former Nigerian President also prodded the Zambian government not to work in silos when it comes to promoting food security in the country and called for all Ministers to work together towards agriculture.

He encouraged the government to scale-up planting cassava as it is resilient to adverse effects of climate change which has ravaged the globe.

Mr. Obasanjo further commended President Hichilema on the strides he is making towards promoting the agriculture sector.
Earlier, Minister of Agriculture Reuben Mtolo praised IITA for the support they have been rendering to government in the area of agriculture for over 40 years.

Luke Fleurs, South African Footballer Shot Dead In Car Hijacking in Johannesburg

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Luke Fleurs, South African Footballer Shot Dead In Car Hijacking in Johannesburg

Luke Fleurs, a South African footballer was shot dead in a car hijacking, police say.

Messages of grief and condolences flooded social media platforms following the heartbreaking news of the hijacking and murder of 24-year-old Kaizer Chiefs center-back player, Luke Fleurs. The tragic incident, which occurred in Johannesburg, has left the football community and the nation in mourning.

Kaizer Chiefs announced the devastating news via their official Facebook page, expressing profound sadness over the untimely loss of Luke Fleurs. The club revealed that Fleurs was accosted during a hijacking incident on Wednesday evening.

The shooting took place at a petrol station in the Johannesburg suburb of Florida.

The 24-year-old Kaizer Chiefs star was waiting to be attended to when he was approached by unknown gunmen, who ordered him to get out of the vehicle.

“The suspects pointed at him with a firearm and took him out of his vehicle, then shot him once on the upper body,” Gauteng police spokesperson Lieutenant Colonel Mavela Masondo told local media.

One of the suspects is reported to have fled the scene with Fleurs’ car after the shooting.

Fleurs, a native of Cape Town, rose through the ranks of South African football, showcasing his talent from a young age. His journey from playing in the streets to representing top clubs like SuperSport United and eventually Kaizer Chiefs captured the hearts of many. Despite his promising career, Fleurs’ life was tragically cut short, leaving behind a legacy of dedication and excellence on the field.

Cultural Affairs and Sport MEC, Anroux Marais, expressed deep sorrow at the loss of the young football star. Marais highlighted Fleurs’ remarkable journey in the sport, emphasizing his contributions to South African football at various levels. Fleurs’ sudden demise serves as a stark reminder of the harsh realities of crime in the country, leaving a void in the hearts of his family, friends, and fans.

Social media platforms became a space for tributes and remembrances as individuals mourned the loss of Fleurs. Chelsea Roberts, in a heartfelt post, described Fleurs as a shining light whose passion and perseverance inspired many. Others, like Bruce Nadin, lamented the tragic end of a promising career and called attention to the pervasive violence plaguing South Africa.

The news of Fleurs’ death sent shockwaves throughout the football fraternity, with condolences pouring in from various quarters. SuperSport United, where Fleurs began his professional career, extended their sympathies to the Fleurs family and the Kaizer Chiefs community. The tragic incident prompted South Africa’s Minister of Sports and Culture, Zizi Kodwa, to express his sadness and call for action against violent crime.

Gauteng Provincial Commissioner Lieutenant General Tommy Mthombeni has initiated a thorough investigation into Fleurs’ murder and the subsequent hijacking. Despite the outpouring of grief and support, the perpetrators remain at large as no arrests have been made thus far.

 

Couple Working together To Provide For Their Family

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Couple Working together To Provide For Their Family

Ask 32-year-old Ethel Kaumba of Mwansabombwe District when she´s happiest, her smile widens as he remembers her favourite time of the day.

“Every morning, my husband and I leave the house together to go to our stand at the market. Seeing him next to me gives joy,” she said.

Her husband Julius Mapalo aged, 38, feels the same way too and describes the joy of going to the market with his wife for the well being of their family as unexplainable.

“I´m happiest when my wife and I take on a bike ride to the market to go and work for our children. It gives me joy knowing we are a team and on the same page,” he said.

Ethel and Julius have been married for 9 years and have four children together.

Few years ago, the young couple was living in object poverty and could not provide for their children, as they both had no source of income.

However, in 2022 Ethel was identified as a beneficiary of the Supporting Women´s Livelihood (SWL) Programme where she received a productivity grant of K3, 790 and training in life and business skills and since then, her life and that of her family´s has never been the same.

With the help of her husband, Ethel managed to establish a trading stand at the market and the couple runs a trading business together.

Zambia Emergency Response To Benefit over 4000 Beneficiaries

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Zambia Emergency Response To Benefit over 4000 Beneficiaries

The Ministry of Community Development and Social Services says it targets to support 4,403 beneficiaries in Mambwe district on the Zambia Rapid Emergency Response Assessment.

District Social Welfare Officer, Edwin Mwewa, said the Emergency Response Assessment is meant to help households affected by the severe dry spell.

Mr Mwewa said rapid assessment and enumeration are critical in providing a timely and accurate understanding of the impact of the current shocks.

He said eligible households will be identified through listing and enumeration of potential beneficiaries which will be conducted using self-selection by community members in the affected communities.

Mr Mwewa said support to the eligible beneficiaries will be provided in form of cash and in-kind adding that all payments of the shock response will be paid digitally through the beneficiary’s preferred mobile network with a phone number registered in their name.

He said the rapid emergency response will target poor and vulnerable households that are not on any social protection programme and are affected by the drought and other major shocks.

Mr Mwewa said the rapid emergency response will also target households headed by the aged persons, households with a pregnant or lactating mother or has a child aged below two years old.

Others to be targeted are households with chronically ill persons, households with moderate and severe disabilities as well as beneficiaries of the Food Security Pack Programme(FSP).

He said beneficiaries of the Social Cash Transfer Programme will also be supported under the rapid emergency response but will not be enumerated as their names were already in the Zambia Integrated Social Protection Information System (ZISPIS).

Oasis Forum Re-Launced

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Oasis Forum Re-Launced

During an event held at the Council of Churches in Zambia (CCZ) in Lusaka, a consortium of prominent organizations, including the Council of Churches in Zambia (CCZ), the Evangelical Fellowship of Zambia (EFZ), the Law Association of Zambia (LAZ), the Non-Governmental Organization Coordinating Council (NGOCC), and the Zambia Conference of Catholic Bishops (ZCCB), formerly Zambia Episcopal Conference (ZEC), convened to announce the re-launch of the Oasis Forum. This forum, initially established in 2001, has been resurrected to advance constitutionalism, the rule of law, and good governance in the Republic of Zambia.

The re-launched Oasis Forum reaffirms the enduring commitment of these organizations to uphold constitutional principles and contribute to national development. Recognizing the pivotal role of constitutionalism, rule of law, and good governance in fostering the welfare of Zambian citizens, the consortium believes that continued collaboration in defending these values is indispensable.

The absence of a durable constitution that reflects the collective aspirations of Zambians has been a longstanding concern for the Oasis Forum. Despite being a signatory to various international treaties, Zambia lacks an expanded bill of rights in its Republican Constitution. The consortium stresses the importance of guaranteeing rights that uplift the living standards of all citizens, particularly the most vulnerable groups.

The Oasis Forum expresses dismay over the lack of a clear roadmap from the current government regarding the constitution-making process. Emphasizing the rule of law as the cornerstone of democracy, the consortium advocates for inclusivity, transparency, and accountability in governance. While applauding the enactment of the Access to Information Law to enhance transparency, the forum calls for greater representation of women, youth, and persons with disabilities in governance structures.

The Oasis Forum reaffirms its commitment to advocating for constitutionalism, the rule of law, and good governance in Zambia. The consortium pledges to collaborate, advocate, and take lawful actions to ensure the country’s adherence to these fundamental principles. Furthermore, the forum demands a clear roadmap, including a standalone national referendum, to integrate the expanded bill of rights into the Republican Constitution.

Signed:

Bishop Andrew Mwenda, EFZ
Ms. Grace M. Sinkamba, NGOCC
Rev. Emmanuel Chikoya, CCZ
Fr. Francis Mukosa, ZCCB
Mr. Lungisani Zulu, LAZ

For Once Lets Be Happy As A Country- Kabuswe

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For Once Lets Be Happy As A Country- Kabuswe

Mines and Minerals Development Minister Paul Kabuswe has urged Zambians to celebrate the recent partnership between Mopani Copper Mines (MCM), a subsidiary of ZCCM-IH, and Investment Resources Holding (IRH) of Abu Dhabi. Minister Kabuswe expressed concern over continued propaganda attempting to overshadow the positive developments stemming from this collaboration, which led to the relaunch of operations at MCM by President Hakainde Hichilema.

Mr. Kabuswe emphasized the importance of acknowledging the progress made in mining towns such as Kitwe and Mufulira as a result of the Mopani partnership. He urged citizens to focus on the benefits to Zambians rather than perpetuating negative sentiments.

Responding to inquiries, including one from a radio caller named Mr. Mwale, who questioned the use of a Gulfstream aircraft to transport investors from Abu Dhabi to Ndola, Minister Kabuswe dismissed such claims as propaganda. He clarified that IRH had used its private plane for transportation and criticized those spreading false information, alleging that images had been manipulated to discredit positive achievements.

“This is a time to be happy,” stated Minister Kabuswe. “We have attracted investment to Mopani, resulting in improved conditions for miners, suppliers, and contractors. Mopani, once troubled like Glencore, is now a free asset under a joint venture with IRH, with Zambians playing a significant role in its management.”

Minister Kabuswe emphasized the need for sincerity and factual communication among citizens, cautioning against embracing negative publicity. He highlighted the positive impact of the Mopani partnership on the economy, stressing the importance of celebrating achievements amidst challenges such as electricity shortages and drought.

Minister Kabuswe urged Zambians to unite in recognizing and celebrating the successes in the mining sector, emphasizing the tangible benefits brought about by the Mopani partnership and the positive prospects it holds for the country’s future.

Zambia Army Will Not Compromise Training Of Its Recruits – Lt. Gen ALIBUZWI

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Zambia Army Will Not Compromise Training Of Its Recruits – Lt. Gen ALIBUZWI

Commander Zambia Army, Lieutenant General Sitali Dennis Alibuzwi says Zambia Army will not compromise training of its Officers and Soldiers to suit some people’s imaginary standards.

Lt Gen Alibuzwi says there are conditions at Zambia Military Academy (ZMA) and Recruit Training Centres (RTCs) which Cadets and Recruits respectively,should meet for them to be declared ready for commissioning and passing-out.

Lt Gen Alibuzwi said at Army headquarters in Lusaka during the official opening of the 2024 first quarter Command Council on Tuesday, 2 April, 2024 that training should always meet the desired results.

“When we asses ourselves how far we’ve gone and we find that we are not ready, it’s not about the time frame but content which is important. Therefore Command will not be rushed into passing out half-baked recruits until the lessons are attained. We have our own syllabus which we follow and we shall stick to that,” he said.

Lt Gen Alibuzwi has since warned those circulating false information on the pass-out of recruits to stop henceforth.
The Commander added that because of its set standards, Zambia Army has continued attracting the attention of other defence forces in the region, one of which being the Umbutfo Eswatini Defence Force.

Lt Gen Alibuzwi said during his visit to Zambia, Umbutfo Eswatini Defence Force Commander, Gen Moses Fakudze expressed delight at the high training standards Zambia Army has set and that arrangements are underway to have personnel from Eswatini trained under Zambia Army Command.
He revealed that one of the brigades in Eswatini Defence Force is commanded by a female Brigadier General who was trained at Zambia Military Academy, stating that from such good tidings, Zambia Army will always endeavour to set higher training standards.

By Buffalo Reporter

The Collapse of Investtrust Bank:A new model of managing national assets urgently needed!

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The Collapse of Investtrust Bank:A new model of managing national assets urgently needed!

On Tuesday, April 2, 2024, the Bank of Zambia (BOZ) took possession of the management and control of Investrust Bank Plc (IBP). Apart from Zambia Industrial Commercial Bank (ZICB), IBP is the only other truly indigenously owned and controlled bank in Zambia. For contexts’ sake, as of June 30, 2023, close to 95% of the banking assets in Zambia are foreign owned and controlled. With the sad news at IBP, this paltry stake we hold in the ownership of financial assets has been diluted further to near zero. Every patriot must be worried about this. You cannot be truly sovereign if the financial and banking assets are controlled and owned by foreign interests.

In our view, the problems at IBP are symbolic of what happens in any industry when state actors throw their national’s interests and assets to the wolves of international monopoly capital. In the Socialist Party, we will heighten support to state owned banks and encourage indigenous Zambians to own and manage banks and financial institutions.
The government must support local banks unapologetically.

The takeover of IBP is primarily because state institutions, which are key institutional investors, do not have a deliberate policy to support local banks and local financial institutions. The rise of Nigeria as an economic giant in Africa can be traced to decisions made in the late 1980s under the leadership of Gen Ibrahim Babangida where all federal and state finances were to be deposited (not in foreign banks) but in newly created Nigerian owned banks. The result is a robust Nigerian financial and banking system, which has now made Nigeria the banking and financial services Mecca of Africa. Patriots, imagine for once that NAPSA, NHIMA, Workers Compensation funds were exclusively deposited in local banks like ZICB, IBP, Zanaco, Indo Zambia, NATSAVE and ZNBS? I am not even talking about ministries and spending agencies in government! In 5 years’ time, these institutions will become market leaders and control the economic barometer of our land. Today, the top 5 banks by asset and earnings in Zambia are overwhelmingly foreign. This is a ticking time bomb. There is no economy where a government flirts and dates with all things foreign. Are the leading banks in Egypt foreign owned? Are the major banks in South Africa and Ethiopia foreign owned?

We know that by the time BoZ was making this decision, they had several engagements with the shareholder ZCCM-IH, which falls under CDC chaired by the President. Why did IDC not intervene and bail out a local bank? Who bewitched us!
The UPND’s chaotic monetary policies are worrying.

The IBP failure also exposes the UPND’s chaotic monetary policy of siphoning liquidity through increased Statutory Reserve Ratio (SRR) to 14.5%. At the same time Monetary Policy Rate (MPR) was increased to 12.5%. When you add the mopping up of nearly K2bn in January 2024, these knee-jerk reactions were bound to cause unimaginable disaster. This has milked away all the cash in the market.

Today, there’s no support for local businesses worth talking about.
It has been worse for our local banks whose main clients are local contractors whose invoices have never been paid for nearly 3 years. Whilst international banks are well funded and capitalised, you can’t say the same for our local unsupported banks. Also don’t forget that most local businesses who bank with local banks have been shunned by the UPND government in preference for foreign companies. The government must reverse the draconian monetary policy that has crippled the banking industry before more local banks and financial institutions are swept away in the way of bank failures. The government must also settle the billions of money they owe local contractors and suppliers on the pretext that they are PF cadres. These are the businesses that transact with local banks. The big multinational foreign investors bank with their own foreign banks.

Governance and management weaknesses at IBP should also not be ignored.
Of course, we are aware that IBP has had historical governance weaknesses and management incompetencies. We are aware of how high impact and productive senior management were frustrated and sidelined out of the bank. The bank was not short of cronyism, tribalism, and even outright abuse and fraud by stakeholders. If the boards and management of IBP in years gone by had made more professional decisions, the course of the bank would be different. We are also aware of the corporate wars that happened at the bank. We are also aware of how ZCCM-IH was literary forced to acquire that shareholding against internal ZCCM-IH management and board due diligence. There was no value in the deal, and Rupiah Banda’s State House forced that deal on ZCCM-IH. But this is a story for another day.

Incompetence at the Bank of Zambia should not also be ignored.
Where is the Bank of Zambia in all this? Can it be said that BoZ was not aware of the systemic problems at IBP until now? We don’t think so. When did IBP last publish its financial statements as required by the Banking and Financial Services Act 2017? The leadership challenges at the central bank are in public. At a deeper level, we have a central bank that is inept and an acolyte of Western and textbook monetary policies that have no meaningful value for our local industry and our people. Under Socialist Party, the Bank of Zambia will be reformed to make it an instrument that helps to elevate the standards of living for our people. What use is double-digit GDP and single digit inflation if our people are hungry and poor? If our people are excluded from participating in commerce and enterprise through artificially propped up interest rates? The reforms at BoZ are long overdue.

Under the SP, we will identify financial institutions and support them to run profitably, but these must be Zambian owned and controlled. State resources will be banked in the local banks as part of the deepening of our local financial systems.
For now, and as a matter of national urgency and emergency, we demand that the government and the central bank move in to forestall financial sector confidence. The mounting loss of confidence in Zambian owned financial institutions is a serious national risk to our financial system. If this is not done, we shall see contagion risk spread to ZICB, NATSAVE, Zanaco, and ZNBS. We cannot afford to lose these national assets and institutions regardless of their weaknesses. SP already has a master plan to come revive our own local financial houses. We will use this critical artery to catalyse a national economic renaissance that is rooted in our own people, our own systems, and for our own national, not monopoly capital interests.

Fred M’membe
President of the Socialist Party

President Hichilema Committs to Ensuring Prudent Utilization Of Resources

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President Hichilema Committs to Ensuring Prudent Utilization Of Resources

President Hakainde Hichilema has announced the successful completion of debt restructuring processes, marking a crucial step towards stabilizing the country’s financial landscape. The President, speaking in a press statement, highlighted the administration’s commitment to prudent resource management and combating corruption in the post-restructuring era.

Under the leadership of the United Party for National Development (UPND), the government engaged in rigorous negotiations with both official and private creditors over the past two and a half years. These negotiations, including discussions with bondholders, have resulted in a restructuring agreement that will see the country’s debt burden reduced over an extended period, saving billions of dollars in the process.

President Hichilema emphasized the significance of this achievement, stating that it fulfills a major promise made to the Zambian people by his administration. He attributed the unsustainable debt situation to excessive spending, mismanagement of resources, maladministration, and corruption under the previous government. The President vowed that such practices would not be tolerated under his leadership.

With the completion of the debt restructuring, President Hichilema sees an opportunity to shift the collective mindset towards more responsible governance. He stressed the importance of fostering investor confidence and ensuring efficient resource management across all government sectors.

Addressing concerns about corruption, President Hichilema issued a stern warning to potential wrongdoers. Regardless of political affiliation or status, he made it clear that those who engage in corrupt practices will face swift and decisive action from law enforcement and prosecution authorities. As part of the government’s anti-corruption efforts, the judiciary’s capacity to prosecute cases will be enhanced, with a target of resolving cases within a five-month timeframe.

Looking ahead, President Hichilema expressed optimism about Zambia’s future, pledging his administration’s unwavering commitment to improving the lives of all Zambians. He assured the public that better days are on the horizon as the government focuses on economic growth and development.

The successful debt restructuring and renewed commitment to fighting corruption signal a new chapter for Zambia under President Hakainde Hichilema’s leadership, with hopes for a more stable and prosperous future.

Re-alignment of National Health Insurance Management Authority(NHIMA) to Ministry of Health applauded

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Re-alignment of National Health Insurance Management Authority(NHIMA) to Ministry of Health applauded

The Medicines Research and Access Platform (MedRAP) has supported the decision by the Government to re-align the National Health Insurance Management Authority (NHIMA) from the Ministry of Labour back to the Ministry of Health (MoH).

MedRAP Executive Director Liyoka Liyoka believes this shift will allow vulnerable Zambians, including those that are not in formal employment to access good quality health services without having to pay out of pocket.

Mr. Liyoka noted that placing NHIMA under the Ministry of Health will ensure that the government adequately provides appropriate policy oversight for a health entity and gives NHIMA the supervisory role.

“Prior to the National Health Insurance scheme (NHIS) only 4% of Zambians had access to good quality health care through insurance. The rest of the 96% faced financial barriers compelling them to pay exorbitant health services out-of-pocket hence pushing many families into abject poverty as well as increasing the morbidity and mortality burden in our communities. For those who had finances, the prospect of poor service, lack of diagnostics and laboratory equipment, and perennial shortages of medicines and medical supplies deterred them from obtaining optimal health services from both public and private facilities alike,” Mr. Liyoka said.

In a media statement issued by MedRAP Communications Officer Tinkerbel Mwila, Mr. Liyoka further advocated the decentralisation of the national drug budget.

“In this case, Health facilities will make their own budgets and purchase medicines and medical supplies from ZAMMSA on a cash basis. In turn, the health facilities will recoup their drug expenditure funds and other services through the NHIMA reimbursement system. These funds can then be used to purchase more medicines and other medical supplies from ZAMMSA. In turn, ZAMMSA can also use these funds to procure more medicines, hence creating a sustainable cycle. This mechanism will automatically transfer the responsibility of purchasing and maintaining commodity stock level to the facility,” Mr. Liyoka said.

“It is in our considered view that a well-defined decentralized drug budget system, a commercialized ZAMMSA, and a fully rolled out NHIMA reimbursement programme must constitute the initial key components of a new and sustainable medicines supply chain strategy. This is necessary to ensure achievement of Universal Health Coverage through the Vision 2030, which envisions a prosperous country where all Zambians have access to quality health services, including medicines,” he concluded.

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