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Drought Crisis: President Hichilema Unveils Comprehensive Cost-Cutting Measures

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President Hichilema announces cost cutting measures to mitigate impact of the drought
President Hichilema

Amid the prevailing drought crisis, President Hakainde Hichilema has announced a series of comprehensive cost-cutting measures in response to the pressing challenges. These initiatives are aimed at addressing immediate needs and ensuring sustainable resource allocation across various sectors of the government. They form part of the administration’s concerted efforts to realign the 2024 National Budget, effectively channeling resources towards mitigating the adverse impact of the drought and safeguarding food security for the public.

President Hichilema’s announcement marks a proactive approach to fiscal management and crisis response, emphasizing the prudent utilization of financial resources to address urgent priorities while maintaining a focus on long-term sustainability and equitable distribution.

During his address at State House, President Hichilema reiterated the imperative of saving financial resources by reducing unnecessary expenditures on government travel and workshops. He emphasized the need for strict budgetary discipline across all branches of the public service, including Parliament, the judiciary, and quasi-governmental institutions. By curbing non-essential trips and workshops, the government aims to generate substantial savings that can be redirected towards critical initiatives aimed at addressing food scarcity and supporting vulnerable communities affected by the drought.

Furthermore, President Hichilema announced plans to introduce constitutional amendments to enhance representation and inclusivity in governance structures. These proposed changes include features such as proportional representation, with the goal of bolstering the participation of women and people living with disabilities in Parliament and Local Councils. By fostering greater diversity in decision-making bodies, the government seeks to ensure that all segments of society are adequately represented and their voices heard in the policymaking process.

The president’s commitment to promoting gender equality and empowering women in leadership roles was underscored during the ceremony at State House, where he conferred the prestigious status of State Counsel upon Speaker of the National Assembly Nelly Mutti and four other distinguished lawyers. Recognizing the invaluable contributions of women to the nation’s progress, President Hichilema reiterated his administration’s dedication to creating an enabling environment for women to thrive and excel in various spheres of public service.

In addition to these structural reforms, President Hichilema issued directives to law enforcement agencies, emphasizing the importance of upholding the rule of law while ensuring fairness and transparency in legal proceedings. He urged police and investigative bodies to conduct thorough and impartial investigations before effecting arrests, reaffirming the government’s commitment to safeguarding the rights and liberties of all citizens.

As Zambia navigates through the challenges posed by the drought crisis, President Hichilema’s proactive measures reflect a holistic approach to crisis management, encompassing fiscal responsibility, governance reform, and social inclusivity. By prioritizing the efficient allocation of resources and fostering a culture of accountability and transparency, the government aims to mitigate the impact of the drought and build resilience against future crises, ensuring the well-being and prosperity of all citizens for generations to come.

Earlier this month President Hakainde Hichilema declared the prolonged dry spells in the country as a National Disaster and Emergency .Speaking when he addressed the Nation on the impact of El Nino weather phenomenon President Hichilema said the declaration was in accordance with the disaster management act number 13 of 2010, supported by other relevant legislations.

The President noted that the drought has devastating consequences on many critical sectors such as agriculture, water availability and energy supply, risking national food security and livelihoods of millions of Zambians.
“At national level the estimated planted area for maize is 2.2 million hectares and of this, approximately 1 million hectares has been destroyed.

The Head of State stated that the drought was anticipated to adversely affect the energy sector that is expected to have a deficit of around 430 megawatts of electricity, potentially reaching more than 520 megawatts by December 2024.

President Hichilema announced that in view of the declaration of the drought as a national disaster and emergency, the government will undertake both short term and long term measures to stabilise the expected food insecurity.

Among the short term and long term measures announced by the President included channelling more resources towards humanitarian relief purposes to importing in order to ensure that affected citizens do not go hungry, importing additional electricity and rationing energy use as well as promoting alternative energy sources.

Others were mobilisation of farmers across the country to embark on planting early and winter maize through various forms of irrigation.

The President also announced that as a long term measure, the government would focus on enhancing water harvesting mechanisms to enable precision and other irrigation development so as to stimulate agricultural production.

President Hichilema indicated that the government will realign the 2024 national budget to achieve the targeted measures.

President also directed Zambia’s defence forces to expand irrigation schemes as a way to increase food production.

“We will work with all farmers, farming input suppliers, grain traders, millers, academics, professionals, regulators, church, civil society, unions, traditional leaders, political parties and others,” President Hichilema said.
The destruction caused by the prolonged dry spell has severely affected 84 districts in Lusaka, Central, Copperbelt, Eastern, North-Western, Western and Southern Provinces.

Victoire Ingabire: Rwandan opposition leader barred from election

Victoire Ingabire, a prominent opposition leader in Rwanda. Courtesy AFP
Victoire Ingabire, a prominent opposition leader in Rwanda. Courtesy AFP

Victoire Ingabire, a prominent opposition figure, has had her efforts to lift a ban on her running in July’s presidential election blocked by a court in Rwanda.

She was freed in 2018 after spending eight years in prison for threatening state security and “belittling” the 1994 genocide.

In Rwanda, people who have been jailed for more than six months are barred from running in elections.

Ms Victoire Ingabire said the court’s ruling was politicised.

“The refusal of my rehabilitation is not merely a personal attack but is emblematic of the broader issues facing our nation, issues that human rights organisations and development partners of Rwanda have long criticised,” Ms Ingabire said in a statement released on X, formerly known as Twitter.

Outside court in the capital, Kigali, the 55-year-old politician said: “I don’t agree with what the judge said, and unfortunately you can’t appeal before two years.

“We are still far from a law-abiding country.”

Ms Victoire Ingabire is an outspoken critic of President Paul Kagame, who has been the dominant force in the country for three decades.

He secured more than 90% of the votes in presidential elections in 2003, 2010 and 2017 – and changes to constitution mean he could potentially stay in power for another 10 years.

The 66-year-old president has faced criticism from rights groups, which have accused him of cracking down on the opposition.

But Mr Kagame has in the past fiercely defended Rwanda’s record on human rights, saying his country respects political freedoms.

There is currently only one challenger to the president in July’s election in the shape of the Green Party’s Frank Habineza, the AFP news agency reports.

He won 0.45% of the vote in 2017.

In 2010, Ms Victoire Ingabire returned from exile in the Netherlands to take part in that year’s presidential election.

But she was arrested, prevented from standing and later sentenced to 15 years in prison. After she was pardoned in 2018, she went on to found the Dalfa-Umurinzi opposition party.

Ms Victoire Ingabire, a member of the Hutu ethnic group, had got into trouble for questioning why Rwanda’s official memorial to the 1994 genocide did not include any Hutus.

Most of the 800,000 people killed in the space of 100 days were ethnic Tutsis but Hutu moderates were also slaughtered by the Hutu extremists.

Mr Kagame’s Tutsi-dominated Rwandan Patriotic Front (RPF) rebel group – now a political party – put an end to the genocide.

Source:BBC

Lusaka Businessman Accused of Robbing Egyptian National of $5 Million at Airport

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Lusaka Businessman Shadrick Kasanda

Lusaka businessman Shadrick Kasanda has been alleged by the Zambia Police Service to have orchestrated the robbery of Egyptian national Adel Michael Botros, resulting in the theft of $5 million in a startling revelation.

The purported incident unfolded at Kenneth Kaunda International Airport in Lusaka on August 13, 2023, with Kasanda allegedly wielding a pistol during the robbery.

Deputy Inspector of the Airport Division, Arnold Kawangu, has outlined these allegations in an Affidavit – In Opposition submitted to the Lusaka High Court. The affidavit forms part of the legal response to Kasanda’s application for habeas corpus, a legal remedy seeking relief from unlawful detention.

Kawangu’s affidavit opposes Kasanda’s plea for habeas corpus, asserting that the businessman’s detention aligns with charges of aggravated robbery linked to the purported theft from the Egyptian national. The police officer has further indicated that Kasanda’s case file has been forwarded to the National Prosecutions Authority for review and potential directives on prosecution.

Lusaka businessman Kasanda’s recent legal move to seek habeas corpus intervention follows his contention of being unjustly detained on charges of aggravated robbery without being promptly presented before a court of law.

The charges stemmed from activities on August 13th, 2023, when eleven individuals, including Egyptian nationals and Zambians, were arrested and charged with espionage under Zambia’s State Security Act. This development followed their alleged involvement in a Gold Scam investigation led by the Drug Enforcement Commission (DEC). .

Among the arrested, a notable figure emerged: Robson Moonga, the Commanding Officer of the Kenneth Kaunda International Airport (KKIA) Police. Moonga, alongside five Zambian nationals—Shadreck Kasanda, Jim Belemu, Patrick Kawanu (a pilot), Oswald Diangamo, and Francis Mateyo—found themselves facing these grave accusations. Additionally, five Egyptian nationals, including one Michael Botros, were part of the group facing these charges.

During the DEC’s operation, a considerable amount of evidence was seized from an aircraft at the airport. This evidence included a staggering 602 pieces of suspected fake gold, collectively weighing 127.2 kilograms.

In addition to the gold, authorities reportedly discovered weapons on board, raising further concerns. The aircraft was also said to be stashed with a substantial sum of five million dollars in cash.

The state opted for a nolle prosequi in favor of five Egyptians and one Zambian implicated in the same alleged syndicate. The Egyptian nationals involved in this matter are Walid Botros, Mounir Awad, Mohamed Gooda, Yasser Abdelghafor, and Michael Botros, alongside Zambian chartered accountant Oswald Diangamo.

Lusaka businessman Shadrick Kasanda, one of the key suspects involved in the airport gold scam, was denied bail in another case where he faced charges related to the disposal of property believed to be proceeds of a crime. The decision to deny bail was handed down by the Lusaka High Court on the grounds that his release from detention could potentially prejudice the ongoing case.

In addition to the denial of bail based on the risk of prejudicing the case, the court also cited Mr. Kasanda’s involvement in an espionage case where the Director of Public Prosecution (DPP) issued a Certificate of Denial of Bail.

The verdict to deny bail was delivered by a panel of three High Court Judges: Pixxie Yangailo, Ian Mabbolobbolo, and Vincent Siloka.

Mr. Kasanda had sought bail through his legal representatives, arguing that he was entitled to it because the charges against him in the proceeds of crime case were bailable. However, the state countered this argument by asserting that his bail application for the proceeds of crime matter was invalidated by the Certificate of Denial of Bail issued in connection with his espionage case.

This development added to the legal complications surrounding Mr. Kasanda, who has been embroiled in high-profile cases related to alleged criminal activities, including the notorious airport gold scam.

The unfolding legal battle surrounding Kasanda’s alleged involvement in the high-profile robbery underscores the gravity of the accusations leveled against him. As the legal proceedings advance, stakeholders await further developments to shed light on the intricacies of the case and determine the appropriate course of action.

State Counsels Sworn In by President Hichilema: 5 Esteemed Officials Take Oath of Office

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Newly sworn in State counsels and Senior government officials pose for a picture with President Hichilema at State House
Newly sworn in State counsels and Senior government officials pose for a picture with President Hichilema at State House

In a momentous occasion for Zambia’s commitment to justice and governance, President Hakainde Hichilema oversaw the swearing-in of State Counsels and Senior Government officials, marking a significant step towards upholding the rule of law and integrity in public service.

Among those sworn in as State Counsels were esteemed individuals such as Hon. Mrs. Nelly Butete Kashumba Mutti, Hon. Jacob Jack Mwiimbu, MP, Mrs. Frances Mwangala Ifunga Zaloumis, Mr. Arshad Abdulla Dudhia, and Mrs. Kondwa Emily Sakala Chibiya. The esteemed rank and dignity of State Counsel symbolises a profound commitment to public service as it transcends mere legal practice to embody the highest ideas of fairness, equity, and compassion.

President Hichilema urged the newly sworn-in State Counsels to serve as staunch guardians of the Constitution and defenders of democratic values, underscoring the pivotal role they play in upholding the nation’s legal framework.

In addition to the State Counsels, Ambassador Lazarous Kapambwe was sworn in as Special Envoy to the President, recognizing his exceptional service to the country over the decades as a career diplomat and therefore, well suited for the position of Special Envoy to the President.

Dr. Choolwe Beyani also took the oath as Chairperson of the Civil Service Commission, with a mandate to address critical issues affecting the performance and service delivery of civil servants.President Hichilema urged him to expeditiously address issues pertaining to appointments, promotions, and transfers of civil servants.

Ms. Beatrice Kiluya Mpanga assumed her role as Deputy Director-General of the Drug Enforcement Commission (DEC), entrusted with enhancing the Commission’s efforts in combating money laundering and financial crimes. Furthermore, Father Joe Komakoma was sworn in as Commissioner of the Human Rights Commission, charged with advancing the promotion and protection of human rights in Zambia.

President Hichilema emphasized the importance of a just and fair society, urging the Human Rights Commission to collaborate closely with stakeholders to address human rights abuses and promote fundamental freedoms.

In a statement, President Hichilema congratulated all the newly sworn-in State Counsels and Senior Government officials, expressing confidence in their ability to serve the nation with distinction. He wished them success as they embark on their respective roles in advancing Zambia’s governance and legal landscape.

Meanwhile, President Hichilema called for constitutional amendments to enhance gender representation in decision-making positions, emphasizing the government’s commitment to gender equality and inclusivity. He also announced measures to reduce government expenditure, urging all branches of government to support initiatives aimed at prudent resource management.

The swearing-in ceremony represents a significant milestone in Zambia’s pursuit of justice, accountability, and good governance under President Hichilema’s leadership, reaffirming the nation’s commitment to democratic principles and the rule of law.

ABSA Partners With Forestry Department and ZAFFICO To Address Adverse Impacts Of Climate Change

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ABSA Managing Director Mizinga Melu, , Minister of Green Economy and Environment Hon. Eng. Collins Nzovu MP and ZAFFICO Managing Director Mr. Mundia Mundia at the meida event

ABSA Bank has partnered with Forestry Department in the Ministry of Green Economy and Environment and the Zambia Forestry and Forest Industries Corporation (ZAFFICO) PLC to promote tree planting and address the impacts of climate change in Zambia.

During a media event to announce Absa Bank partnership between ZAFFICO and the Forestry Department in the Ministry of Green Economy and Environment, Minister of Green Economy and Environment Hon. Eng. Collins Nzovu MP said he was pleased to witness this partnership between Absa Bank and ZAFFICO towards provision of seedlings to promote tree planting in the country and between the bank and Forestry Department who shall work together, each according to the means to contribute, to address the impacts of climate change in Zambia.

The Honourable Minister said the Ministry is appreciative to Absa Bank Group in aligning its business strategy by being consistent, measured and balanced in climate mitigation strategies that speak to the Sustainable Development Goals (SDGS), the Paris Climate Agreement, National Development Plans and regional legislative frameworks.

He said similarly, ZAFFICO Limited which has an objective of establishing and managing industrial exotic forest plantations and agroforestry products so as to meet demand and maximize return on investment, has entered into a mutual agreement with Absa Bank to buy seedlings from ZAFFICO Limited at a subsidized price.

Hon. Nzovu said he was confident that this initiative will translate into encouraging more individuals from communities to plant trees.He said he is positive that the participation of stakeholders and local communities in the tree planting will help to improve forest productivity and enhance livelihoods and environmental sustainability.
ZAFFICO Managing Director Mr. Mundia Mundia said ZAFFICO is Zambia’s largest exotic forestry company managing 62,187 hectares of pine and eucalyptus plantations spread across the five provinces that is, Copperbelt, Luapula, Muchinga, Northern and north-western.

Mr. Mundia said the corporation is implementing forest expansion plans in order to increase its plantations size by 50,000 hectares in the next five years.

“To achieve this, ZAFFICO is investing USD50 million into forest expansion as well as value addition activities in line with our strategic focus and business diversification drive. The corporation’s focus towards forest expansion is not only a business drive but also, a commitment to mitigating the effects of climate change in the country,” he said.
Mr. Mundia said for the 2023/24 planting season, ZAFFICO planted 5.9 million seedlings covering a total of 2,816 hectares in its plantations.

He said to promote tree planting by individuals, communities and organisations in the country, the corporation provided 175,000 pine and eucalyptus seedlings.

Meanwhile, Absa Managing Director Ms. Mizinga Melu said the bank has so far planted 10,000 trees but have reached a stage where they need to accelerate the project.

“And that is why we announce a 3-year partnership where Absa will purchase seedlings from ZAFFICO and the Forestry Department over 3 years.These tree seedlings will be planted by the partners who are experts in reforestation,” said Ms. Melu.

“For this rain season, Absa has purchased 62,500 seedlings worth K250,000 from ZAFFICO and 30,000 seedlings worth K150,000 from Forestry Department. The total number of trees to be planted this rain season is over 80,000 by the 2 institutions.”

Mizinga Melu, Managing Director of ABSA, emphasized the bank’s unwavering commitment to this initiative. She highlighted how the project initially took root through partnerships with the World Wide Fund for Nature (WWF) and the Catholic Relief Services (CRS) in the Chongwe and Mumbwa areas. Now, with the inclusion of ZAFFICO and the Forestry Department, ABSA aims for even greater environmental restoration.

She underscored the critical role of reforestation in combatting the adverse effects of climate change, stressing the importance of community involvement. Ms. Melu urged every Zambian to embrace the simple yet impactful act of planting a tree annually, emphasizing the positive impact it can have on the environment.
For more on climate change Click here

Outbreak of unknown eye infection in Mpulungu

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Mpulungu district in Northern Province has recorded an outbreak of an unknown eye infection.

Mpulungu District Commissioner Gehard Sikazwe said the unknown eye infection was first noticed last month but is slowly increasing.

Speaking in an interview  Mr. Sikazwe noted that the Ministry of Health in the area has so far recorded 220 cases of the infections in both children and adults.

Mr Sikazwe added that the infection is mostly present in urban townships, stating that Mpulungu urban clinic has recorded the majority of the cases, with 178 recorded.

He said Mpulungu District Hospital has recorded 21 cases, Kaizya Clinic has 21, and Kasakalawe Rural Health Center has recorded 6 cases.

Mr Sikazwe said the infection is presenting symptoms of itching, swelling, and redness of the eyes.

He said the Ministry of Health has since started conducting investigations to establish the disease and its causes.

Mr. Sikazwe said the department of health has sent samples for culturing in order for them to determine if the infection is both viral and bacterial.

And Mr. Sikazwe has urged the Ministry of Health to continue with investigations and sensitize the public in order to fight the spread of the infection.

He observed that the infection is spreading at a very fast rate.

He also encouraged people to seek medical attention as soon as they present with the symptoms in order to stop the spread.

President Hichilema Calls On Youth To Contribute To National Development

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President Hichilema joined the Zambian youth in celebrating this Year’s National Youth Day at David Kaunda Stadium in Chipata, Eastern Province.

The President said youths are the greatest asset Zambia has and that is the reason the government is doing everything possible to make an enabling environment for all our youths across the country.

President Hichilema’s message to the youth was:

“Take advantage of your youthfulness to succeed in life. You all have the potential to make it in various areas of life. All you need is to work hard and embrace discipline. Your government will continue creating more jobs even this year alongside other interventions aimed at youth empowerment.
Ma Youth, balimi banzanga, don’t get discouraged with the drought. We appreciate the efforts you had put in this farming season. Do not give up; resilience is what we need.
We will use the drought to turn it into an opportunity that will change the course of our nation for the better. Irrigation is the way to go. We are realigning this year’s budget to ensure food security as well as growing our agriculture through irrigation”

The President further urged youths in the country to desist from engaging in vices that distract them from positively contributing to national affairs.

He also said there is need for Government to protect the farmers that lost their crops due to the drought.

Youth Minister Elvis Nkandu said it is time that youth actively participate in the affairs of the country so that they can bring about positive change.

Meanwhile, Eastern Province Minister Peter Phiri thanked President Hichilema for holding the event in the Eastern Province.

Youths Representative, Alifa Banda pledged the youths commitment to tackling some of the challenges that the country is facing among them is unemployment and environmental degradation.

 

 

 

Liquid Intelligent spearheads youth innovation by connecting Mukuba UniPod

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By Benedict Tembo

Liquid Intelligent Technologies has signed a memorandum of understanding (MoU) with the United Nations Development Programme (UNDP) to provide fibre internet connection to the Mukuba UniPod, an innovation lab located at the Copperbelt University in Kitwe.
The MoU was signed at the official launch of the UniPod, which also saw over 20 innovators showcasing their ideas on February 25th.

“This partnership reiterates Liquid Zambia’s commitment to advancing equitable, quality education in Zambia and promoting innovation among students in the country. This is in line with the Zambian government’s digital agenda, and our core vision of ensuring that no African is left behind in the digital age,” said Liquid Telecom Chief Executive Officer Mark Townsend.
“By joining forces with UNDP and Copperbelt University, who share our vision, we are empowering the country’s students with the skills and tools they need to succeed in the rapidly transforming job market,” Mr Townsend said.

“The Mukuba UniPod presents an opportunity to young Zambians looking to channel their curiosities, skills and ideas into innovative solutions that will contribute to sustainable development in the country. It was therefore essential to provide connectivity in the space, making the Mukuba UniPod a portal to the abundant resources, people and networks they would need to ideate, create and market their solutions ” UNDP Resident Representative James Wakiaga said.
“The partnership between UNDP and Liquid is a great step towards enhancing the connectivity of the hub and nurturing creativity and experimentation within its walls,” he said.

As the 11th UniPod in Africa, the Mukuba UniPod forms part of UNDP’s Timbuktoo innovation network, providing opportunities for collaboration across African countries, and building an innovation ecosystem on the continent.
The importance of such innovation hubs in driving economic growth and creating a dynamic ecosystem that attracts investment and talent, is evidenced by Zambia’s creation of a dedicated National Technology Business Centre, a statutory body under the Ministry of Technology and Science, to support the country’s entrepreneurs and innovators.

The Mukuba UniPod, funded by UNDP, serves as a dedicated space for students from the Copperbelt University and all surrounding colleges in the region to foster innovation, scientific inquiry, and collaboration.
Students are exposed to design thinking, software and equipment for prototyping, and enhanced skills in digital fabrication, while faculty members work closely with students on design projects that could be developed into commercially viable products.

By supplying connectivity for the Mukuba UniPod, Liquid Zambia is demonstrating the power of public-private partnerships in driving positive change, supporting innovation in education, accelerating Zambia’s digital transformation, and ensuring that students have the tools necessary to thrive in the digital age.
Liquid Zambia is a business of Cassava Technologies, a pan African technology group.

Zambia’s Success at 2024 ITB Berlin Could Boost Tourism Inflows from Germany

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Zambia’s participation at the 2024 ITB Berlin trade show will significantly enhance the country’s efforts to increase the number of tourism inflows from Germany.

Speaking at the just ended 2024 ITB Berlin trade show in Berlin,Zambia’s Ambassador to the Federal Republic of Germany H.E Winnie Natala Chibesakunda expressed optimism that efforts to attract Germany tourism inflows to Zambia will produce favourable results.

She said engagements with various stakeholders from the tourism sector have helped private exhibitors from Zambia with opportunities to showcase their products and services and to better understand the Germany market so that they tailor their various packages to meet the expectations of different potential travellers from the Germany market.

Ambassador Chibesakunda noted that the many engagements and networking during the three day trade show will also help in enhancing better collaboration between countries in selling unique tourism attractions and products that are linked.

“Some attractions are closely linked between countries and you have animals that migrate between countries at certain periods of the year but with better collaboration between countries, these products can be marketed the whole year and not only at selected periods of the year.” She noted.

The ITB Berlin trade show is held every year in March in Berlin, Germany and is the world’s largest tourism trade show which attracts thousands of tourism industry key players from over 180 countries.

Zambia was represented at the ITB Berlin trade show by the Ministry of Tourism led by Tourism Minister Hon Rodney Sikumba who was delegation leader, the Zambia Tourism Agency (ZTA) and private sector players.

Private sector participants from Zambia included Voyagers Zambia DMC, konkamoya Lodge, Lilayi Lodge,Memorable Journeys, Wild Dog Lodge,Chkunto Safaris, North Kafue Safaris, Tryyambia Tourism & Lifestyle, African Vacations ,Corporate Air and Livingstones Adventures. Others are Classic Zambia Safaris, Lion Camp, BlueBerry Travels, Mukalya Game Resort,Bundu Safari, Mwamfushi Safari Lodge, Zikomo Safari, Radisson Blu Mosi -Oa- Tunya Resort and African Escapades.

Issued By Lubinda Kashewe

First Secretary-Press

Berlin, Germany

Zambia’s Economic Development being retarded by Illicit Financial flows

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By Mwansa Chalwe Snr

The new Dawn government has finally managed to convince all the members of the Official Creditors Committee (OCC) to sign the G20 Debt Restructuring Memorandum of Understanding, with India and China. putting pen to paper at the end of February,2014. The Ministry of Finance and National Planning should now show the same dogged determination, by focusing on sealing the massive forex revenue leakages resulting from Illicit Financial Flows (IFF).

There are three broad channels that billions of dollars are lost to Zambia every year. And these are:through multinational enterprises (MNEs)especially mining houses’ sophisticated transactions,smuggling of natural resources such as gemstones, timber, and wildlife and finally, through corruption
and money laundering activities.

Illicit Financial flows fuels excessive borrowing

Zambians need to be made aware that the debt that the country has accumulated, is in part , due to the fact that billions of US dollars disappear each year, without a trace and end up in tax havens and/or absorbed into Western economies, and now China, thus forcing the various governments to accumulate excessive debt to fill up the gap created in order to carry out development projects.Capital flight is one of the causes of countries like Zambia resorting to borrowing to finance
development programs and projects.

It is an open secret that there is illicit exploitation of Zambia natural resources such as copper, gold,cobalt, uranium, timber, emeralds, diamonds, manganese and other precious metals and wildlife which are being exported abroad illegally from the country.The losses of capital through IFFs runs in billions, as recent Financial Intelligence report has disclosed.

And more recently, Mines and Minerals Development Minister, Paul Kabuswe bemoaned the fact that Zambia’s current 850,000 tonnes annual copper production was way too low and incorrect because of leakages in the mining sector.

According to Zambia’s latest Financial Intelligence Centre (FIC) report for the fourth quarter of the year 2023, over US$2.8 billion was transferred from Zambia to Asia in just three months.

“Some newly incorporated companies used Zambians as front shareholders and directors, while foreign nationals maintained control of the bank accounts. Funds were introduced into the financial system mainly through large cash deposits made in US Dollars. These funds were then transferred out of the country on the pretext of paying for imports with no evidence of corresponding goods received by the importer”, the FIC report said.

Zambia is in the unenviable position of being one of the top countries with the highest illicit financial flows in Africa. And this issue is not a new one. In December 2012, Sarah Freitas, a Global Financial Integrity (GFI) Economist co-authored a report where she said Illicit financial flows due to crime,corruption, and tax evasion cost Zambia $8.8 billion from 2001-2010.

“Our research finds that $8.8 billion left Zambia in illicit financial flows between 2001 and 2010. Of that, $4.9 billion can be attributed to trade mis invoicing, which is a type of trade fraud used by commercial importers and exporters around the world.

“This is a very serious problem. Zambia’s GDP was $19.2 billion in 2011. Its per-capita GDP was $1,413. Its government collected a total of $4.3 billion in revenue. It can’t afford to be haemorrhaging illicit capital in such staggering amounts”, she wrote.

Zambia is a Net Creditor

In its 2020 report entitled: Tackling Illicit Financial Flows for Sustainable Development in Africa, the United Nations Conference on Trade and Development (UNCTAD) said that an estimated US$ 88.6 billion left Africa as illicit capital flight.

Furthermore, according to the Report of the High-Level Panel on IFFs from Africa, copper accounted for 80 percent of IFFs in Zambia, while the nation accounted for about 65 percent of IFFs in the African continent. This issue is so serious that the United Nations Secretary General António Guterres is on record as having expressed his concern as far back as 2017.

“I am convinced that today there is more money leaving a continent like Africa due to money laundering and tax evasion and illicit financial flows than the money that goes in through official development aid, and this is a common responsibility of the international community”, He said.

And according to research by renowned economist Professor Dikumana of Massachusetts University, Zambia and other African countries are net creditors, which means far more money flowed out of Zambia than into them, thus exposing the hypocrisy of the benefits of foreign direct investment and donor funding. Recent research shows that the total sum that leaves developing
countries each year as unreported financial outflows, referred to as illicit capital flight, amounts to as much as ten times the annual global aid flows, and twice the amount of debt developing countries repay each year.

“What we have been highlighting is the paradox with African countries. We see a continent that has the largest shortage of finance but also at the same time we are seeing a massive amount of money fleeing the continent. We’re talking about money that’s being stolen or embezzled out of the continent. So the paradox is you have a continent that needs money but it’s a continent that is also financing the rest of the world, in countries that don’t need the money. Money is being lost which
could have been used to finance investments”, wrote Professor Léonce Ndikumana from the University of Massachusetts Amherst in his research paper.

Zambia and Nigeria worst affected

And in his research on IFF, Stephen Yeboah, a Research Consultant at the African Natural Resources Centre of the African Development Bank (AfDB), found that Nigeria and Zambia are among the worst affected in terms of not benefiting from their resources in Africa. “The practices of misinvoicing in Nigeria’s oil and Zambia’s copper exports and imports reflect the
challenges that illicit financial flows present to Africa’s extractive sector. Between 1996 and 2014,under invoicing of oil exports from Nigeria to the United States was worth $69.7 billion. In Zambia,over the same period, a record of $28.9 billion of copper exports to Switzerland, which is more than half of all its copper exports, did not reflect in Switzerland’s import statistics,” he wrote in his research paper.

It is very clear from empirical evidence that the major culprits of illicit financial flows are Multinational Enterprises (MNEs) through the manipulation of trade transactions. Trade misinvoicing (under valuing exports and overvaluing imports), transfer pricing, payments between parent companies and their subsidiaries, and profit-shifting mechanisms designed to conceal revenues are all common practices by companies seeking to maximise profits in the process undermining or negating
the expected positive effect of foreign direct investment and aid.

The renowned Pan Africanist, the former South Africa President Thabo Mbeki once headed the AU High level Panel on IFFS as Chairman . He pointed out the challenges that issue posed. “Our heads of State and government are aware that the problem of illicit financial flows is exacerbated by corrupt tendencies, lack of or weak African institutions both at national and
continental levels in all sectors, governance challenges, weak tax administration, and lack of capacity to monitor and curb such criminal activities,” He stated in one of his reports.

Measures to minimize Illicit financial flows.

There is no argument whatsoever that Zambia is losing billions through sophisticated multinational machinations, smuggling, corruption, and money laundering. The African Union, the Africa Development Bank, the G20, the World Bank and the United Nations have all agreed and confirmed this. The evidence from international studies have also shown that countries like Botswana have the lowest illicit financial outflows in Africa, whereas Zambia and Nigeria have the highest. There is,
therefore, something that Zambia can do to remove this infamous label.

The first and simplest action that could be taken is to embark on a fact-finding mission to neighboring Botswana – where this Author spent decades, and got exposed to how they safeguard their natural resources – in order to learn from them. Botswana has almost zero illicit financial flows due to the smart control measures, and punitive legislation they have passed which have acted as a deterrent. The Botswana approach prevent people from committing these economic crimes before they happen. In our case, we have been closing the stable after the horse has bolted!

Secondly, in order to limit the smuggling of Zambia’s resources, implementation of simple security measures can be a major deterrent. There is need to put in measures of monitoring small aerodromes in rural Zambia especially in the North Western Province and inspections of light aircraft and drones bound for foreign countries. The army and Air force could be useful in the enforcement of Zambia’s economic security by limiting smuggling.

Thirdly, the Zambian government should seriously look at building and strengthening the capacity of Zambia Revenue Authority (ZRA) as it is currently not well resourced with technology and specialized staff with sufficient qualifications and experience to handle the sophisticated machinations of Mining houses and other MNEs.

Fourthly, in the medium term, consideration ought to be made to set up a separate and an independent Unit from ZRA .This institution should be filled in with head hunted Zambian professionals from the diaspora and foreign experts who are not infected with the corruption bug which is the greatest enabler of illicit financial flows in Zambia.The fifth thing that could be done is for Zambia to cooperate with international organizations such as the OECD, IMF, and World Bank for help to develop best practices and exchange information to combat tax evasion and illicit financial flows.

Conclusion

There is no argument whatsoever that Zambia is losing billions through sophisticated multinational schemes, smuggling, corruption, and money laundering. The Zambian government should seriously and aggressively address this issue because it is low hanging fruit for domestic capital mobilization. It is just as important, if not more important in the long term to debt restructuring. It should be next priority.There is no excuse whatsoever why drastic measures cannot immediately be introduced to minimize this scourge, which is affecting the exchange rate and by extension the cost of living and cost of doing business and generally the economic performance of the country.

The Zambian economic environment is just too liberal and open compared to other countries in Africa and the Southern Africa region, may be even Europe. There are no basic common sense controls on foreign exchange externalization and trafficking of resources, such that citizens from other countries come here to get foreign currency, especially the United States Dollars. The country is a paradise for economic criminals, especially foreigners, in collusion with their Zambian enablers. And that is why
we at the top of the Champions league of illicit financial flows traffickers in Africa. This must be put to a stop by the New Dawn government.

The writer is a Chartered Accountant and Author. He is the Founder of Prosper Knowledge Solutions Ltd, a virtual Knowledge and Strategy firm. Contact: [email protected]

Kagame Agrees To Meet Tshisekedi Over Eastern DR Congo Crisis

Rwanda’s President Paul Kagame has agreed to meet with his Democratic Republic of the Congo counterpart Felix Tshisekedi to discuss the ongoing crisis in eastern Congo, the Angolan government has said.

The agreement followed a meeting on Monday in Angola’s capital Luanda between Mr Kagame and Angolan President João Lourenço, the African Union’s (AU) mediator in the DR Congo crisis.

“It was decided that President Kagame would agree to meet President Tshisekedi on a date to be indicated by the mediator,” Angola’s Foreign Minister Tete Antonio told the press after the meeting.

Mr Antonio said that both Rwanda and the DR Congo had agreed to hold the meeting, with ministerial delegations from both sides working toward the plan.

Rwanda’s presidency said on X that the two leaders “agreed on key steps towards addressing the root causes of the conflict”.

President Kagame’s trip to Angola follows a similar visit by Mr Tshisekedi to Luanda last month, during which it was announced that the DR Congo leader had agreed to meet with his Rwandan counterpart.

But Mr Tshisekedi demanded the withdrawal of Rwandan troops from the Congolese territory before meeting President Kagame, the DR Congo presidency said.

Fighting between M23 rebels and Congolese forces has flared in the DR Congo’s east, displacing more than 100,000 people in recent weeks, according to the UN.

DR Congo has accused Rwanda of backing M23 rebels, an accusation that Kigali denies.

What’s happening in Eastern Congo

Aid organizations fear a new humanitarian crisis in the restive eastern Congo region, where the renowned armed rebel group M23 is in the midst of a new advance that threatens to cut off a major city and leave millions of people struggling for food and medical help.

Eastern Congo has been beset by conflict for years, with M23 among more than 100 armed groups vying for a foothold in the mineral-rich area near the border with Rwanda. Some have been accused of carrying out mass killings.

There’s been an upsurge in fighting in recent weeks between M23 rebels and Congo army forces, and it comes as the United Nations plans to withdraw peacekeepers from the region by the end of the year.

Tensions are also rising between Congo and Rwanda, with them blaming each other for supporting various armed groups. Congo accuses Rwanda of backing M23.

WHO ARE M23?
The March 23 Movement, or M23, is a rebel military group mainly made up of ethnic Tutsis that broke away from the Congolese army just over a decade ago. They staged a large offensive in 2012 and took over the provincial capital of Goma near the border with Rwanda, the same city they are threatening again.

The conflict has regional complications, with neighboring Rwanda also accused by the U.S. and U.N. experts of giving military aid to M23. Rwanda denies that but effectively admitted on Monday that it has troops and missile systems in eastern Congo. Rwanda said that is to safeguard its own security because of what it claims is a buildup of Congo army forces near the border. Rwanda has rejected calls from the U.S. to withdraw.

There are also ties to the Rwandan genocide of 30 years ago, with M23 and Rwanda saying separately that they are fighting a threat from a Congolese rebel group that is connected to the Congo army and partly made up of ethnic Hutus who were perpetrators of the 1994 genocide.

CONGO-RWANDA TENSIONS

Relations between Congo and its eastern neighbor have been fraught for decades. Hundreds of thousands of Rwandan Hutu refugees had fled to Congo, then Zaire, in the aftermath of the 1994 Rwandan genocide. Among them were soldiers and militiamen responsible for the slaughter of 800,000 minority Tutsis and moderate Hutus.

Two years after the genocide, Rwanda and Uganda invaded eastern Congo to try and root out what remained of those genocide perpetrators, which led to the toppling of then Congo President Mobutu Sese Seko.

Tensions between Congo and Rwanda escalated in 2021 with the resurgence of M23 attacks on Congolese soldiers after nearly a decade of relative inactivity due to a 2013 peace deal. The presence of so many armed groups is believed to be connected to illegal mining, with eastern Congo rich in gold and other minerals.

WHAT’S HAPPENED IN RECENT WEEKS?
M23 launched new attacks late last year and has ramped them up in recent weeks. The group is now threatening to take the key town of Sake, about 27 kilometers (16 miles) west of Goma. That could cause food and aid supplies to be cut off from Goma, which had a population of around 600,000 a few years ago, but now holds more than 2 million people, according to aid agencies, as people flee violence in surrounding towns and villages.
The advance of rebels on Sake “poses an imminent threat to the entire aid system” in eastern Congo, the Norwegian Refugee Council said. It said 135,000 people were displaced in just five days in early February.

The violence has also sparked protests from the capital, Kinshasa, to Goma, with angry demonstrators saying the international community is not doing enough to push back against M23 and not taking a hard enough stance against Rwanda.

WHAT’S AT STAKE?
The new fighting could lead to an escalation of regional tensions and involve more countries. As the U.N. winds down its 25-year peacekeeping mission in eastern Congo, a multi-national force under the southern African regional bloc is set to step in. That force will include soldiers from regional power South Africa, Malawi and Tanzania. They will help the Congo army forces, but it might put them in direct conflict with Rwanda.

Source: BBC,AP News

President Hichilema Leads Youth Day Celebrations with Vibrant Chipata Visit

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President Hakainde Hichilema made a notable appearance in Chipata today, marking the commemoration of Youth Day. Arriving in style aboard a chopper, President Hichilema touched down at the Chipata Golf Course around 09:53 hours, greeted by an enthusiastic crowd of residents and supporters.

The city of Chipata buzzed with excitement as scores of locals eagerly gathered to welcome President Hichilema. Along the streets, bikers revved their engines, and residents lined up, eager for a glimpse of the esteemed leader.

Youth Day holds special significance in Zambia, celebrating the energy, aspirations, and contributions of the nation’s young people. President Hichilema’s presence in Chipata underscores the government’s commitment to engaging with and empowering Zambia’s youth.

As the day’s events unfold, President Hichilema is expected to address the gathered crowd, offering words of encouragement and outlining initiatives aimed at supporting the nation’s youth. With his visit to Chipata, President Hichilema reaffirms his dedication to fostering a brighter future for Zambia’s next generation.

Zambian youth urged to steer clear of political violence and embracing economic opportunities

Zambia United Local Authority Workers Union (ZULAWU) Luanshya branch chairman, Roy Sikazwe, has urged Zambian youth across the country not to allow themselves to be used as tools of political violence amidst the harsh economy that has hit Zambia.

Speaking in an interview in Luanshya, Mr. Sikazwe said youths should instead remain focused and productive and fight poverty in the country.

“Youths should not allow themselves to be used as tools of political violence amidst the prevailing harsh economy. Youths should work hard to better their lives and meaningfully contribute towards the fight against poverty in the country,” Mr. Sikazwe noted.

He observed that it is unfortunate that some youths were using the excuse of the high unemployment levels in the country to engage in illicit activities such as excessive beer drinking.

The trade unionist further admonished youths to abstain from such activities, saying that they would just make them unhealthy and unproductive.

Meanwhile, a youth activist, Allan Zulu, called on the government to support youths in the country to be productive.

“Although the government has introduced education bursaries through the Constituency Development Fund (CDF), some youths in the compounds don’t know how to apply for such bursaries. There is a need to intensify the flow of information so that more youths can access the funds,” he said.

He further urged his fellow youths to take advantage of the skills training centers that the government has set up in various parts of the country to acquire skills in order for them to remain relevant to the development of the country.

“As youths, we must not just be complaining about the biting economy but let us stand up and do something towards the economic development of the country,” he said.

Paramount Chief Mpezeni Commends President Hichilema’s Leadership Amidst Calls for Focus

Paramount Chief Mpezeni of Eastern Province has voiced his support for President Hakainde Hichilema, urging him to remain focused despite distractions from those failing to provide proper checks and balances.

Chief Mpezeni emphasized that President Hichilema should continue prioritizing actions that benefit the general citizenry, affirming his approval of the President’s declaration of the prolonged drought as a disaster, which he deemed timely.

The Paramount Chief made these remarks during a courtesy call by Presidential advisor for politics, Levy Ngoma, and Eastern Province Minister, Peter Phiri, at the Ephendukeni palace. The purpose of the visit was to inform Chief Mpezeni of President Hichilema’s upcoming visit to Chipata.

In response, Levy Ngoma expressed the President’s satisfaction with the warm reception received from the people of the region and traditional leaders during the Nc’wala ceremony held last month.

Peter Phiri, on the other hand, assured that Eastern Province is prepared to host the National Youth Day event scheduled for tomorrow.

The endorsement from Paramount Chief Mpezeni underscores the importance of unity and support for President Hichilema’s leadership initiatives, particularly in addressing pressing issues such as the drought, and signals a good relationship between the government and traditional leadership in Eastern Province.

Unveiling the Truth: Police still working on Shikapwasha murder case

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Police Deputy Spokesperson, Danny Mwale, has revealed that the police are diligently working on the docket of the case involving the murder of former Information Minister Ronnie Shikapwasha before the suspect can be brought to court.

Mwale stated that the office of the Director of Public Prosecutions (DPP) had made observations on the docket previously submitted.

The suspect in the matter, Jane Lusengo, who is General Shikapwasha’s widow, was arrested and charged with murder just two days after the death of her husband on January 15, 2024.

Mrs. Shikapwasha has been remanded in custody on allegations of causing the death of her husband by shooting him with a double-barrel shotgun at their home in Lusaka’s Ibex Hill area.

It is alleged that Jane Lusengo on January 14,2024 between 17:00 and 18:00 hours at plot number 477 in Ibex Hill in Lusaka district of the Lusaka Province of the Republic of Zambia whilst acting alone, caused the death of Lieutenant General Ronald Shikapwasha Retired using a double barrel short gun, serial number 168462 by shooting the deceased in the abdomen causing him to sustain a gunshot wound on the left side of the abdomen resulting to his death on January 15, 2024 at 21:40 hours at Maina Soko Military Hospital.