Join our community of SUBSCRIBERS and be part of the conversation.
To subscribe, simply enter your email address on our website or click the subscribe button below. Don't worry, we respect your privacy and won't spam your inbox. Your information is safe with us.
Shepolopolo are 90 minutes away from their debut COSAFA Women’s Cup final appearance when they face Botswana in Thursday’s semifinals in Port Elizabeth.
Beauty Mwamba’s side has been semifinalist in the last two editions and would like to gone one better than their bronze medal win in the 2017 edition.
Shepolopolo will also be playing Botswana for the second successive time at the tournament after meeting in the group stage.
The two sides drew 0-0d in their final match on August 6 to finish first and second respectively tied on 7 points but separated only on goal difference.
Botswana qualified to the last four as the best second place finisher from the three-group tournament.
”
I know we can do better in the next round. Going into the next round, there is nothing to reserve (against Botswana),” Mwamba said.
“(In the group stage) we knew that a win or draw (against Botswana) will still see us through, but for this game, we are going flat out for a win.”
But Shepolopolo must be more ruthless against Botswana side that has yet to concede at goal at the tournament South Africa is hosting from July 31 to August 11.
This is not only after her players failed to score for the first time at the tournament in Tuesday’s draw, but also after striker Rachel Nachula failed to convert a soft penalty in that same match against Botswana .
Winner will face Zimbabwe or defending champions South Africa in the final on August 11.
Meanwhile, in the 2019 COSAFA U20 Women’s Cup which is being held simultaneously at the same venue, Shepolopolo U20 will face Zimbabwe for a place in the August 11 final.
Winner will face Tanzania or hosts South Africa in the final.
What we know and understand about politicians is shaped by their actions precisely why posture, decorum and empathy are some of the few but greater attributes to winning a political congeniality contest.
Typical of democracies, the most ardent electoral base will naturally gravitate towards a candidate that speaks the language of the proletariat – never mind their traits. For whatever reason, grass- root voters detest those they perceive to be, arrogant, egomaniac and wealthy.
The 2012 US Presidential elections aptly exemplify this analogy. Speaking at a closed but intimate session with potential donors in Boca Raton Florida, former Republican Presidential candidate Mitt Romney, used this occasion to scorn a large section of the US electorate, arguing they would stop at nothing short of voting for his opponent Barack Obama – this despite Romney’s spirited determination to sell his candidature.
“They will vote for the president (Obama) no matter what. All right, there are 47% who are with him, who are dependent upon government, who believe that they are victims, who believe the government has a responsibility to care for them who believe that they are entitled to health care, to food, to housing to you name it,” said Romney.
The crafty Obama campaign team, superbly guided by David Axelrod seized upon a leaked video of these comments to use them with maximum potency. Thus, they succeeded in projecting Romney as a callous individual who didn’t care a dime about their hardships. With Romney entangled in all sorts of explanations regarding his reasoning for issuing such comments, the pendulum swung Obama’s way. Suddenly what was Romney’s election to lose, slipped out of his grasp.
And the likeable Obama drawing on his appeal among the US middle class, bested his robotic opponent to win the fiercely contested Presidential elections. There are parallels to draw from this experience.
HH the enigma
Who is HH? Like Romney, intimate details of the enigma that is HH have largely been espoused by the UPND leader’s inner circle. Dr Canicious Banda and GBM – who both served as his co-deputies, describe him as an aloof, arrogant and a self centred tribalist who will stop at nothing to win the Presidency. His failure in 2011 to maintain a political pact with the PF, designed to oust MMD from power and the eventual but unceremonious ousting from UPND of both Dr Banda and GBM have been cited as examples of his ruthlessness.
Like Romney, HH is a wealthy business man – a factor that should be counting in his favour – at least given the country’s economic malaise yet he has allowed his detractors to cast him as a rent – seeking plutocrat who is out of sync with the hardships facing your average Zambian.
The fact that he has at times engaged in petty but opportunistic political skirmishes has not helped his cause but instead lends credence to such innuendos. Otherwise why would the leader of the largest opposition party stoop so low as to deny his parliamentarians and party officials the right to interact with the ruling party or Head of State on matters of national interest? Should politics of engagement and consensus take a back seat to await his inauguration?
In retrospect, whether such misgivings about the UPND leader are borne out of fact, envy or even bitterness is hard to tell but what is poignant is that some of these charges have been laid at his feet by people that were once in his inner sanctum – more like the stab of Brutus on Caesar.
And the challenge in the court of public opinion is that, anything that quarks is considered a duck. If it has along neck, it is likely a giraffe and if it roars, it certainly is a lion. This stigma has stuck like a monkey on his back. Even worse, it’s almost as though the raison d’etre for the existence of the Patriotic Front’s (PF) propaganda machinery is to reinforce the belief that the UPND leader is in fact, a cold calculating bourgeoisie who has little interest in the well-being of Zambians.
The real HH?
It’s indisputable that the disinformation strategy has ably served to snuff his political oxygen. How so? Here we are discussing the man’s wealth when the riddle of 48 houses – without an owner or the 42 fire trucks that cost the fiscus, K13m each – ought to be the subject matter.
Even more telling, the electorate’s reluctance to intimately interrogate the real persona of the UPND leader has enabled a diversion to focus solely on perceptions. Unfortunately, this is the prism through which the grass root views HH’s political posture.
Yet, watching him speak at a few local and international platforms, both his heart and mind seem in the right place. Constantly empathising with the struggling working class, the man is nowhere close to callousness. The character traits he exhibits are those of a patriotic Zambian that is prepared to break the confines of a luxury life to heed the call to serve. His articulation of the country’s economic terrain and his prescriptive solutions are on the mark. Simply put: he seems to have a plan.
Speaking to investors at the 2018 Mining Indaba in Capetown South Africa, he sold the audience, his vision of a Zambia that is open to investment, respects property rights and above all, one in which both the international mining community and the citizenry would share in the spoils of the mining industry – which off course is the country’s economic life blood.
If anything stood tall in his presentation, his plan to stabilise Zambia’s rising debt crisis seemed tangible. And the standing ovation he received was befitting of a head of state. And for some in the audience, the apostle of a broader economic and sociological emancipation the country had been looking for suddenly showed up.Could this be HH that the Zambian grass root has been looking for?
Zesco United’s six players who did not travel to eSwatini with the team on Tuesday will join them in Manzini tomorrow.
The Kenyan duo of striker Jesse Were and David Owino, DR Congo defender Marcel Kalonda, Uganda striker Umaru Kasumba, Nigerian midfielder Quadri Kola and Burundi goalkeeper Dieudonne Ntibahezwa did not board the flight in Ndola to Manzini via Johannesburg yesterday because they did not have eSwatini visa’s.
Zesco have stated that the players will fly out on Thursday after securing their visa’s.
The players will land in Manzini just 48 hours before Zesco’s 2019/2020 CAF Champions League preliminary round, first leg date against Green Mamba.
The final leg is set for August 24 at Levy Mwanawasa Stadium in Ndola.
Victor over both legs will face winner of the Young Africans of Tanzania versus Township Rollers of Botswana tie next month.
The University of Zambia has commenced construction of two lecture theatres each with sitting capacity for 350 students at a total of K27. 3 million.
The two lecture theatres being built at the UNZA main campus in the space between the Confucius Institute and Population Studies teaching building is made possible with funds internally generated by UNZA.
In addition, the university has commissioned rehabilitation works of the University library ablution and electrical installations at a total cost of K750,000.
The University Library are being funded by the UNZA Alumni Relations and Advancement operation.
Meanwhile, UNZA Vice Chancellor Professor Luke Mumba has reaffirmed Management’s commitment to addressing infrastructure challenges the university is facing including issues around student accommodation.
“As part of our effort to addressing the student accommodation challenges, we commissioned construction of bunk beds in 2018. Our target is to produce 1,674 bunk beds at a cost of K5 million kwacha. So far, the University has installed 450 bunk beds.” Proffesor Mumba says.
The Vice Chancellor added that the university has made some noteworthy achievements in infrastructure development that include the construction and refurbishment of the Special Needs Education Centre at the School of Education at a total cost of K7 million with the financial support of the Christian Blind Mission in Germany and the construction of the School of Public Health Lecture Theatre at a total cost of US$1 million with the financial support from the United States Government through the Department of Defence and the Centre for Disease Control.
Professor Mumba said UNZA Management is committed to investing in infrastructure development projects at its two campuses to promote the highest quality of teaching, research and community service for its Staff and Students.
This is according to a statement issued by UNZA spokesperson Brenda Bukowa.
The Patriotic Front in Lusaka Province says it is horrified by Democratic Party leader Harry Kalaba’s unwarranted and unprovoked attacks on President Edgar Lungu as covered by sections of the media.
PF Lusaka Province Interim Secretary Kennedy Kamba said it is evident that Mr. Kalaba’s solo political career crashed and burnt before it even took off and he is now clamoring for attention from the ashes of his self-inflicted wreckage.
Reacting to Mr. Kalabas challenge on President Lungu to concentrate on uniting the nation other than preaching tribalism Mr. Kamba questioned where the DP were when it was said only a Tonga could succeed Mazoka.
Mr. Kamba also questioned where the DP was when UPND cadres viciously assaulted then Chief Government Spokesperson Dr. Vernon Mwaanga at the late Anderson Mazoka’s funeral house, when UPND considered Dr Mwaanga a “Traitor” because he was “Tonga who did not support a “Tonga Party.
“Where were they when UPND introduced a quota system essentially creating true ownership of the Party as Tonga? Where were they during the February 2000 Mbabala Constituency by-election when the UPND candidate Emmanuel Hachipuka faced two other Tonga candidates, and as Daniel N. Posner documents in his book “Institutions and Ethnic Politics in Africa”, the fact that the candidates were all Tonga both by tribe and language did not stop UPND candidate Hachipuka from implying that he was the only “real” Tonga in the race? (Because only he belonged to a “Tonga Party”?
Mr. Kamba has therefore challenged Mr. Kalaba and Southern Province Chiefs attacking the President to be level headed and stop attacking President Edgar Lungu as they’re setting a bad precedent.
He wondered why the critics including Chiefs have been mute on the unprecedented development the PF Government of President Lungu is bringing to Southern Province.
And commenting on Mr. Kalabas challenge for President Lungu to lead by example and retire instead of Directing Secretary to Cabinet to retire all Civil Servants aged 60 years and above, Mr. Kamba has reminded Mr. Kalaba that the majority of Zambia’s population are youth and depend on Government as the biggest employer
He said Zambia therefore, has a huge and energetic youthful human resource base that requires to be harnessed towards national development.
Speaker of the National Assembly Dr. Patrick Matibini says Zambia’s Parliament is highly rated in the SADC region and African continent as whole. Dr. Matibini says the good practices of the Zambian parliament has received admiration from parliaments of other countries.He was speaking at the 10th Pan African Parliament conference of the speaker of African Assemblies and Senates nn Midrand south Africa.
Dr. Matibini said the Zambian parliament has recorded high number of delegates on the bench marking missions.He added that the increased number of bench marking Missions to Zambia was evidence of good practices.Dr. Matibini said there was need to start attaching experts to various parliamentary committees in order to make them more efficient.He noted that it was important that parliamentary committee deliberations were research based.The speaker observed that the inclusion of experts in parliamentary committees would make them robust.
Dr. Matibini was accompanied to the 10th Pan African Parliament Conference of Speakers of African Assemblies and Senates by Zambia’s High Commissioner Designated to South Africa Major Gen Jackson Miti among other Zambian officials.
This is according to a statement issued by First Secretary for Press and Public Relations at the Zambian High Commission in South Africa Naomi Nyawali.
Tourism Arts Minister Ronald Chitotela has called on the Tourism Council of Zambia to start position itself as Zambia works at actualizing the quest of being the second best choice for Meeting Incentives and Conferences and Events after South Africa.
Speaking at Kwacha House when Vincent Mupwaya, the Chairperson of the council led representatives of his organization to pay a courtesy call on the Minister, Mr. Chitotela said he dreams to actualize the two million tourist arrivals by the end of 2020.Mr. Chitotela said he will build on the successes of his predecessors by adopting the best practices and will not hesitate to make changes where there is need to do so.
The Minister said he had a meeting with Emirates Airliners who have since expressed willingness to show the documentary of Africa’s first-ever walking safaris in the South Luangwa National Park as part of their package of inflight entertainment.And Mr. Mupwaya said the council wants to see the country being marketed internationally so that more tourists can visit Zambia.
He said there are however, several concerns by the by safari operators, lodge owners, airlines on their day-to-day operations including limited support.Mr. Mupwaya said there is need for concerted efforts to have a win-win situation considering that tourism is the second largest employer in the country.And one of the sector players, Grand Cummings thanked the Government creating an enabling environment for the private sector to operate.This is according to a statement issued by Ministry of Tourism and Arts spokesperson Sakabilo Kalembwe.
Former Finance and National Planning Minister Situmbeko Musokotwane
Former Finance Minister Situmbeko Musokotwane has described as disturbing, the recent statements coming from the Economics Association of Zambia.
Dr Musokotwane who is also opposition UPND Chairman of Finance and Economics said it is sad that the professionalism and well researched and coherent voice from the Association is missing.
He said this is why he declined to attend the recently attended Economics Summit organized by the EAZ because he did not want to be seen to be agreeing with the route taken by the Association over a number of issues.
Below is the statement issued by Dr Musokotwane
ON THE ECONOMIC ASSOCIATION OF ZAMBIA
Finally, the Economic Association of Zambia (EAZ) conference in Livingstone is over and concluded. It was dubbed “the Future of Economic Diplomacy. Supporting Inclusive Growth and sustainable Development in Africa”. President Lungu and other foreign dignitaries graced the occasion which was also attended by many business executives. I was invited to the conference. However, my conscience did not allow me to participate so I stayed away. Why?
EAZ hosting a conference is totally in order and is good. EAZ has been doing that since, from my recollection, the 1970s. Such meetings provide a good platform for discussing economic and other national issues. But the importance of EAZ must now, as before, extend beyond being mere organizers of economic conferences. Anyone, including professional organizers of all types of conferences are able to organize such.
Beyond conferences, the public also expects to hear well-reasoned, professional and coherent statements from EAZ on the key economic issues of the day. In this regard, EAZ is expected to stand in the same league as other professional associations. When there are important legal issues in the land, the public look forward to statements from the Law Association of Zambia (LAZ) to give direction. Same for other institutions like the Press Association of Zambia (PAZA) for press issues, and the Engineering Institute of Zambia (EIZ), for engineering issues, etc.
Sadly, it is that professionalism; the well-reasoned and coherent voice from EAZ on public economic issues that I miss these days. To the contrary, some statements coming from EAZ are greatly disturbing. This is not to say that there should be no differences in opinions among economists. Those will be there and it is healthy that it is so. However, there are certain things where honest differences should be narrow, if there have to be there at all. Here are a few examples of positions taken by EAZ that have been troubling and, in my opinion, should not have led to differences in opinions from others.
Firstly, take the issue of the national indebtedness. Since 2013 the economic fraternity has been cautioning the Zambian government against the pace at which the country was borrowing. They advised the government to slow down on borrowing, both from the external and the domestic sources. The fraternity giving cautionary advice included local economists. Advice also came from reputable international bodies like the International Monetary Fund, the World Bank and the African Development Bank, and indeed from the world financial media.
Shockingly, EAZ was very loud in stating that it did not see anything wrong with the growing debt problem that the other economic groupings were seeing. EAZ told the government that its debt parameters were alright. Yet, because the government was continuing to borrow strongly the parameters were deteriorating rapidly. Zambia’s indebtedness has now spiraled out of control, a development which has once again been confirmed by the Board of the IMF last week. Today, the heavy national indebtedness has become Zambia’s biggest national economic problem.
The effects of the debt crisis in Zambia are now evident even to the non-economists. As more money has been used for debt service, less has remained in the country for other important uses. In fact, the only reason why the government has not defaulted on debt is because it is suppressing funding for national domestic priorities. Last week, Parliament approved supplementary budget for the year 2019 to the tune of K9.8 billion. Two thirds of this new spending will be utilized for servicing debt. Where will this money come from? Not from new taxes revenues but from cutting expenditure lines across most ministries. The details of what will be cut are not available. The general story from this supplementary budget therefore is that ministerial and provincial budgets are being cut to accommodate debt servicing.
In many rural schools, children are failing to attain learning targets because there is no money to hire enough teachers. The ques of the separated government workers awaiting to be paid their terminal benefits is getting longer. Government is failing to offer public sector workers sensible salary increments commensurate with the risen cost of living. Employees of some public institutions, including those from universities where ironically many members of EAZ are employed are having to endure delays in the payment of their salaries. Various services from the government are failing. All this is because debt servicing is taking most of the government money, leaving too little for everything else.
For all this EAZ advised the government that the debt parameters were ok. It is reasonable to assume that part of the reason why the government continued to strongly borrow in spite of the contrary advice from many quarters was that it accepted the opinion of EAZ, a local professional association, to the effect that the country’s debt parameters were still in order. If this was indeed the case then EAZ would qualify to be an accomplice in bringing about our debt crisis and all its negative consequences.
A second issue is on the ongoing dispute with the mining firm, Vedanta and public approach to mining in general. As far as I can tell, Vedanta has had serious challenges endearing itself to its mining communities. Not surprisingly, it has had few, if any, to sympathize with it. But many people rightly worry about the approach the government is using in handling the affair; and whether the approach is robust enough to stand legal challenges from Vedanta. A procedural error in handling the stand-off has the potential to bring about huge costs in compensation, a result that could undo the financial benefits of the intended divorce with the company.
Particularly worrying during this episode is a story attributed to the President of the EAZ. The report says “President of the Economics Association of Zambia Lubinda Habaazoka has suggested that Zambia should nationalize some mines without compensation. Dr. Habaazoka contended that nationalization of the country’s mining assets can lead to economic growth” (Lusaka Times July 22, 2019). I have not seen any denial of the story so I assume the statement is true.
This statement suggesting nationalizing some mining assets without compensation was made less than a week before the EAZ hosted the international conference in Livingstone on Zambia’s ailing economy. Among the stated objectives of the conference was to show case Zambia as an attractive investment destination. The suggestion to nationalize mines without compensation when you are hosting a conference to attract investors is definitely a big contradiction that will undo one of the objectives of the conference. This is troubling because why bother to attract investors on one hand while threatening to national business assets without compensation on the other?
The list of troubling positions taken by EAZ on the Zambian economy does not end here. But, in closing, we touch on one more item albeit very briefly. This is on the replacement of VAT by sales tax which the association championed against the opinion of most business houses and relevant professional associations. The newly appointed Minister of Finance has opted to stop the change-over as of now while studying the matter further. Supposing, at the conclusion of the review, the Minister decides to retain the VAT, will EAZ now shift to praising VAT instead of the sales tax that they have been praising?
Regarding the just ended conference itself, EAZ left the impression that the organization is still struggling to appreciate and believe that there is a debt crisis in the country whose effects are biting already. Not only was the matter not given the sufficient attention it deserves. But ironically also, EAZ presented a long list of national needs and requirements and urged the government to finance those items. Really? At a time when there are arrears on salaries for some public workers? When we are unable to employ enough teachers? When there are many infrastructure projects abandoned mid-way for lack of funds? When the country is failing to fund public universities? Amidst all this EAZ adds additional items requiring financing without stating where savings can be made. Would it not have been more prudent for EAZ to help the government and the public at large to get into a discussion of how to arrive at intelligent ways of setting priorities for funding when money is tight? This absence of a spirit of prioritizing in EAZ is disappointing.
EAZ needs to understand that the general public perceive it as the voice of the respected, pragmatic and sensible economic consensus. As a professional association, they are uniquely placed to praise or to criticize anyone based on sound professional arguments. That privileged position should however be used very carefully so that now, as before and in future, the association should be seen to be have views that the public can depend on for pragmatic economic direction.
An economist friend from my generation said of the Livingstone conference: “I cannot go there and be seen to be endorsing the thinking of the current EAZ”. It was like he and I had telepathic reflections on the matter.
Wedson Nyirenda’s side Baroka FC are at the top of the South African PSL table after Tuesday’s away victory over 2016/2017 champions Bidwest Wits.
Baroka beat Wits 1-0 away to record their debut league victory in Johannesburg since they were promoted in 2016.
Nyirenda’s pre-season signing and Malawi international midfielder Gerald Phiri struck a 42nd minute free- kick to also hand Baroka its first win of the campaign and see them stay unbeaten after two rounds played.
Baroka lead the log on 4 points, one ahead of second placed Wits and will stay at the top heading into the rest of the remaining round two games coming up this Saturday.
But Nyirenda’s side takes a long break and only returns to league action on August 25 when they host Bloemfontein Celtic in Polokwane.
Nyirenda joined Baroka last season after leaving the Zambia job and survived relegation with the club after finishing third from bottom.
Zambia midfielder Donashano Malama has defended his decision to change three clubs in 18 months.
Malama has this week joined South African PSL side Black Leopards on a one year contract after leaving Chippa United.
The Leopards switch follows the expiry of his six months contract with Chippa whom he joined from Moroccan side Olympique Khouribga in January this year.
“Obviously, I am very happy to join Black Leopards,” Malama said on Tuesday.
“My contract with Chippa expired but we couldn’t agree on terms and conditions. You know how football is, if you don’t agree terms and conditions you have to part ways,” he said.
“I don’t have to focus much on what people are saying. People will always have their opinion but in the end it’s all about me and my family,” Malama said.
The former Nkana captain his seeking to add value to the Leopards squad.
“I have come here to work. The team here Black Leopards wants to win silverware,” Malama said.
He joined Morocco’s Khouribga in February last year as a free agent following the expiry of his contract with Nkana.
(L-R), Zambia International Property Expo Chairman, Christopher Jannou, Nkwashi’s Executive Chairman Dr. Musokotwane and Nkwashi’s Head of Portfolio Management Mumamba Mwansa
Economics Association of Zambia (EAZ) Youth Wing has expressed its utmost disappointment at the sentiment uttered by Dr. Situmbeko Musokotwane regarding his absence at the Economic Summit held in Livingstone.
Dr Musokotwane issued a statement stating that his conscience could not allow him to attend the national Economic summit despite being invited
“I was invited to the conference. However, my conscience did not allow me to participate so I stayed away”
But EAZ youth wing President David Chifwalo said that such a deprived conduct from a respected and accomplished senior citizen was baffling and made sad reading.
Mr Chifwalo stated that the summit was a necessary platform for any progressive and well-meaning economic thinker and thought leader as both state and non-state actors deliberated the current challenges while highlighting current proven solutions.
Below is the statement in full.
For immediate release – 06 August 2019
REBUTTAL TO MEDIA STATEMENT ISSUED BY DR SITUMBEKO MUSOKOTWANE
We as the Economics Association of Zambia Youth Wing strongly detest and hasten to convey our utmost disappointment at the conduct of our learned Dr. Situmbeko Musokotwane.
We take up this call, as our able board is preoccupied with other issues of national importance.
Economics Association of Zambia under the current Executive board has tried to regain its place and relevance in the country’s economic discourse .Therefore, as our national motto “One Zambia, One Nation, “we as the Economics Association Zambia have embraced a multi-faceted approach, engaging all stakeholders including political party leaders, regardless of affiliation as our belief has been one of inclusive dialogue and economic development for a better Zambia, sharing ideas and aspirations beyond politics.
To see such deprived conduct from a respected and accomplished senior citizen by admission in his own terms that “I was invited to the conference. However, my conscience did not allow me to participate so I stayed away” makes sad reading. He was invited to our national economic event like other political party leaders who came but shunned our non-political conference, baffles us as a youth being tomorrow’s leader’s, who should be looking up to our accomplished seniors.
The platform for the National conference was extremely conducive for economic discourse and any other divergent views on economic matters such as Dr. Musokotwane’s. This interaction was necessary for any progressive and well-meaning economic thinker and thought leader as both state and non-state actors deliberated our current challenges while highlighting current proven solutions.
“IMF suspended talks in August, 2017, they withdrew their country representative Dr. Alfredo Baldini a year ago, have not yet replaced him”
By Kalima Nkonde
Story Highlights • In Zambia, major economic decisions are primarily made in the Office of the President rather than in the Ministry of Finance. The President and his advisers, under various political pressures, decide on actual spending.(Norway’s last Ambassador to Zambia Arve Ofstad, July,2019) • We have also announced a number of measures aimed at slowing down the pace of debt accumulation, such as postponement and cancellation of debt, subject to discussions with our creditors, expansion of the revenue base, addressing the challenge of domestic arrears. Implementation is at the heart of all these pronouncements. That will be my key objective. (Zambia’s new Finance Minister Dr. Bwalya Ng’andu, July,2019) • The only advice I give is to urge the Government to align the austerity measures towards a possible IMF programme. As things stand today, it is very hard for government to manage its own austerity as it’s like asking a patient with a foot problem to amputate self. You can only cut that far and will stop when pain is unendurable. ( Chibamba Kanyama, Economist and Broadcaster, July, 2019) • It is envisaged that the new Minister will leverage his emotional intelligence skills to bring Zambia to the discussion table with IMF. He comes at the time when investor confidence in Zambia is very low and should signal that Zambia seeks to redress some of its challenges. ( Zambia Daily Mail Comment, July,2019)
The appointment of Dr. Bwlaya Ng’andu as Zambia’s new finance minister in July, 2019 was received with euphoria in some circles including the bond market which saw the demand for Zambian Eurobonds go up. This writer, however, while welcoming the appointment, is cautiously optimistic about the impact the new finance Minister will have. There are some doubts whether he is a panacea to Zambia’s economic recovery.
The skepticism is borne out of the fact that this writer was among those who were excited and praised the government for announcing austerity measures some in recent years, but there is nothing much to show for it in terms of improvement in the economy, but instead the three has been a continuous deterioration in the macroeconomic metrics especially since the International monetary Fund pull out in August, 2017.Zambia has had four Finance Ministers in four years- since 2015- when President Lungu took over and it is curious whether the previous three were all incompetent. The fault must surely lie somewhere in the system.
Why Dr. Ng’andu may fail too
The number one reason why Zambia’s austerity measures have failed in the past is that there is an apparent lack of political will to implement them. In Zambia, short term political considerations, which not even well researched; far outweigh economic common sense. The finance minister will announce measures, quoting the President as having authorised them but because the political authority do not believe in them or understand them, they start undermining them through statements and actions by themselves or their surrogates. For example, how do you announce austerity measures and the next day you are creating districts, announcing a discredited business model of national airline, purchasing executive jets, entertaining bringing back deputy ministers back, purchasing expensive vehicles, undertaking expensive trips to the USA to fetch second hand fire tenders and the list goes on and on.
In the Corporate world, any internal control system will not work if there is management override. It is the same case with Zambian austerity measures. There is management override by political masters especially at State house where some Presidential Aides are alleged to be almost untouchable, and are so powerful that they can give instructions to ministries even without the President’s knowledge. There is just so much inconsistency and unpredictability by the political authorities which must be frustrating for the bureaucrats at the Ministry of finance and Bank of Zambia.
Standard Bank, in their recent country report, while welcoming the appointment of Dr. N’gandu, was cautious by clearly pointing out the fact that although the appointment was positive, it was a case of a different messenger but the same message.
“This is the third Finance Minister in three years, taking account of the very strong possibility that the senior leadership of the Finance Ministry, besides perhaps the Finance Minister, is not going to change, then the advice that the Finance Ministry will deliver to the President and the Cabinet regarding fiscal matters is probably not going to change. Presumably, the President and the new Finance Minister conferred on the state of government finances, fiscal policy management challenges and the Minister’s proposed strategy to deal with them. If so, then this appointment would probably also be an implicit acknowledgement by the President that he broadly agrees about the need for fiscal consolidation,” The Bank said in its latest Statement.
The second reason why austerity measures do not work in Zambia, is that there are sacred cows as to the implementation of austerity measures. The implementation is not meant to inconvenience or cause pain to certain individuals and institutions in terms of cost savings. Although the country could be in austerity, top politicians, top civil servants, constitutional office bearers continue enjoying all the fringe benefits as before, which they do not even need, such as 2 or three personal to holder cars for wives and children etc.
We need to emulate Botswana and Tanzania in thrift management of resources by not letting our “leaders” enjoy opulent life styles with little value addition which even the private sector Executives do not enjoy. This has led to attracting the wrong people in the public service thereby leading to the creation of the politics industry with sub sectors of per diem industries developing which do not produce anything but require taxes to finance them.
Thirdly, there are allegations of conflict interests by the political elite who benefit from public debt contraction, for example, and who resist austerity measures. One gets the impression that personal interests, short term political goals and populism, determine the severity of the implementation of austerity measures in Zambia rather than public interest, rational and medium term to long term economic interests of the country.
Why did IMF shelve negotiations and now delaying coming back?
In order to analyse the reasons why the IMF suspended the negotiations with Zambia for the $1.3billion bail out, and the IMF being slow to resume the same, it is important that one does not only look at economic reasons but also diplomatic reasons. It should not be forgotten that institutions including the IMF, are run by human beings with feelings, views, prejudices including racial issues etc .
It follows that is only the most naïve and the unexposed to international business dealings will not take into account the impact that such human behavioural factors have in influencing decision making. The role that relationships and diplomacy play in business and international deals should never be underestimated.
It is apparent to any keen observer that Zambia’s relationship with the IMF has not been at its best during the Lungu administration. The IMF suspended talks two years ago in August, 2017 and up to now, talks have not resumed. The non-technical reasons relate to the Zambian government’s poor diplomacy as exhibited by the rhetoric concerning the IMF programme at the middle of crucial negotiations in 2017. The unhelpful rhetoric include President Lungu’s past remarks which were reminiscent of Kenneth Kaunda and Robert Mugabe.
“Everything we do, we consult and I want to be remembered for just sticking to the law and doing things within the expectations of the people so if IMF want to go because of this, they can go and I am saying this openly, if IMF thinks we have gone beyond the norms of good governance and democracy, they are free to go,” said President Lungu, whilst declaring the State of emergency in July, 2017.
The President‘s view that Zambia did not need IMF bailout was later supported by former Minister of Development planning, the now fired Lucky Mulusa.
“Now the economy is picking up as a result of economic activities picking up in China and China is demanding more of our copper so we are able to export more copper and more revenues through taxes from the copper exports and also bringing in more hard currency in terms of also managing our exchange rate. What this means is that we can do away with the IMF and our economy will still be vibrant so people must not have this perception that maybe Zambia’s economy has gone berserk and we need bailout from the IMF, no. it is merely investment in perception in order to trickle down the interest costs that we are paying because the investors will be very comfortable with us engaging with the IMF,” Mulusa said.
In 2018, the Zambia government was reported to be pressurising the IMF to recall its Representative Dr. Alfred Baldini on alleged unprofessional conduct and/or incompetence. The Fund resisted the requests from Zambia but eventually gave in. Zambia’s renowned economic commentator and veteran Broadcaster Chibamba Kanyama, who worked for the IMF in the Communications department, confirmed the same in a tweet. There were other analysts who warned of consequences of the forced recall of country representative.
“IMF has withdrawn its representative to Zambia, Alfredo Baldini and does not plan to have a placement anytime soon,” Kanyama said in a tweet, he later deleted, possibly due to pressure from authorities.
Government Spokesperson Dorah Siliya, confirmed the departure of Dr. Baldini and claimed that his replacement will come very soon. It is twelve months now and there is no Resident Representative for the IMF in Zambia. There can be no IMF bailout without a Resident Representative. Zambia through Dr. Ng’andu needs to lobby for the appointment of a Resident Representative.
Apart from the diplomatic fall out mentioned above, which could have possibly influenced the IMF pull out, and is delaying the appointment a replacement of the Country representative, the main reasons that forced the IMF to suspend negotiations in 2017 are technical economic reasons. These relate to the issue of debts and fiscal deficits and the IMF was very explicit about it.
“Public debt has been rising at an unsustainable pace and has crowded out lending to the private sector and increased the vulnerability of the economy. The outstanding public and publicly guaranteed debt rose sharply from 36 percent of GDP at end-2014 to 60 percent at end-2016,” The Fund noted in a statement announcing the suspension of talks. “Against this background, any future programme discussions can only take place once Zambian authorities implement credible measures that ensure debt contraction is consistent with a key programme objective of stabilizing debt dynamics and putting them on a declining trend in the medium term,” The IMF statement added
The outlined issues above, are the ones, that must have contributed to the IMF suspending talks and which need to be addressed if confidence in the Zambian economy is to be restored and Zambia returns to the recovery trajectory it was on in 2017 which has been reversed as we all warned.
What will it take to bring IMF back quickly?
It is now agreed by state media, most experts, investors, international organisations, Bank of Zambia, Ministry of finance bureaucrats and others with a deep understanding of the economy, that Zambia’s speedy economic recovery and avoidance of the risk of debt default, will require a deal with the IMF. The question is: what will it take to bring the IMF back to the negotiating table? My take is that it requires a combination of actions and not just technical actions – monetary and fiscal policies – which Zambia needs to take in order to speed up the process.
First and foremost, more discipline in rhetoric coming from the President and his administration as past utterances by the President were undiplomatic, unhelpful and may not have gone down well in the IMF corridors of power in Washington.
As part of the confidence building process, it may be advisable to form a task force of a crack Zambian negotiating team, which is respected in the IMF corridors of power to repair the damaged relationships but also negotiate a better deal for Zambia. They should be sent by the President to Washington as soon as possible. This will send a positive signal that Zambia is serious and help calm the markets
The negotiating team could be headed by Finance Minister Dr. Bwalya Ng’andu and include people like Dr. Denny Kalyalya, Mr. Chibamba Kanyama, Dr. Caleb Fundanga, Mr. Ng’andu Magande, some technocrats in Finance ministry and may be others. Ghana negotiated a deal with IMF by assembling a crack team which included people who were not in government but had worked at IMF, had high level contacts and relationships with people working at the Fund. They were respected due to their knowledge and expertise.
Secondly, the Zambian government needs to carry out whatever fiscal measures that the IMF wanted to be implemented when they suspended the programme negotiations. The IMF made it very clear in their statement on October 6, 2017 what was needed to be done. This was reiterated in their April, 2019 statement, when an International Monetary Fund (IMF) staff team led by Ms. Mary Goodman visited Zambia between April 16-30, 2019 to conduct the 2019 Article IV consultation. They recommended the following:
“To reduce risks, staff recommended a large up-front and sustained fiscal effort, including: avoiding contracting any new non-concessional debt, steps to raise revenues, halting the build-up of new arrears, and aligning the pace of spending on well-targeted public investment projects with Zambia’s available fiscal space”
Also last week, in a statement on August 2, 2019, the IMF Executive Board, when reviewing Zambia’s economy in conclusion of Article 1V for 2019, they revised Zambia’s economic growth projection for 2019 to 2%.
“Absent significant policy adjustments, growth likely to remain subdued over the medium term as expenditure arrears and ongoing forced adjustment in response to increasing debt- related pressures weigh on the private sector,” the Board noted
Thirdly, the issue of improvement in the political climate especially as it relates good governance and rule of law need to be addressed to facilitate speedy resumption of IMF talks with Zambia. In theory, IMF is not concerned with politics, good governance, rule of law and issues such as corruption and human rights. But in reality, these issues do matter. This is so because the institution is controlled by Western capitalist democracies and any country can only ignore such issues at its own peril.
The views of the United States of America in particular, who hold the majority shares, and have veto power in IMF, ought to be taken into account. The recent comments by the US Ambassador to Zambia at the country’s independence celebrations as well as when addressing the University of Zambia Students on Youth Leadership and Governance should be taken seriously.
“The US strongly believes in Zambia’s sovereignty. But we also believe that Zambia can progress much better by embracing the freedoms and values and capitalist approaches that has got the country where it is now. We want good governance that effectively utilizes resources and improves lives of our families. We are all aware of budgeted funds that have gone to places they should not have to. And part of my job is to try to hold those in power accountable. We all want our government to be transparent and accountable,” US ambassador, Daniel Foote said, in utterances which were undoubtedly directed at the Zambian government.
The fourth step that may help bring the IMF back quickly, is the Presidential address on the economy and not delegated statements to Ministers as before. President all over the world address nations on issues of national importance. The new Press Secretary is a mature and experienced person and should advice the President about the importance of formal communication to the electorate as opposed to off the cuff airport apron statements that the previous Press Aide seem to have advised. The President should seriously consider making a statement of commitment to austerity measures and support for the Minister of Finance. This will send a positive message to the market. Thus far, he has created an impression of being an aloof CEO and that is market perception. This need to change. The President has to take full responsibility and ownership of austerity measures in particular and the performance of the economy in general, as he correctly point out, “If I fail, the buck stops at me, not even cabinet ministers will be part of it…”
Recommendation
The finance minister and the Bureaucrats know what needs to be done for the recovery of the economy but as a private sector expert and entrepreneur, they are well advised to sequence and prioritise implementation of the measures by laser focusing on those measures that will have the maximum and immediate impact on the economy in terms of jobs and felt by the public within 6-12 months.
The number one problem that Zambia faces which is being felt by almost all Zambians is the lack of cash: liquidity. This is adversely affecting households and businesses around the country and constraining economic activity. The bulk of the cash is in wrong hands – government which does not produce anything or pay taxes and also foreign contractors who externalize when paid. It does not only make economic but it is smart politics to implement measures that will kick start economic activity immediately, and before the next election in 2021.The following are recommendations of the common sense measures that will help reinvigorate economic activity in the shortest possible time:
In the private sector, companies do capital restructuring by replacing short term loans with long term loans to improve cash flow management. The same principle can be applied in government by paying off local government suppliers and contractors, even by obtaining a long term loan to replace these short term creditors and thereby unleashing working capital to the private sector with immense multiplier effects in terms of economic activity
Pay bankers the bulk of what is due to them including treasury bills. Also significantly reduce what government is borrowings from Banks through treasury bills and other means so that they are stuck with excess liquidity and are forced by necessity to lend to the private sector. This action will also reduce their interest rates by banks.
The second and other major recommendation, which is publicly known is: Negotiate with IMF to fast track negotiations and have a deal in place as quickly as possible. The will help with investor confidence, balance of payments support, raising cheap bilateral and multilateral finance, improve performance of Eurobonds and forestall the kwacha depreciation. Ghana’s experience of recently completing the 3- 4 year IMF programme is testimony to the fact that when you fail to run your economy due to indiscipline and reckless borrowing – the new 21st Century IMF and not the one of the 1970s/80/90s, people who do not read and not update are familiar with – can help stabilize the economy and you up on the path to growth as evidenced by Ghana’s GDP growth of 8.5% in 2017 and the projected to grow at 7.3% in 2019.
Conclusion
Although there may be doubts about Dr.Ng’andu succeeding where others failed, there is still a chance that he may finally succeed as circumstances, especially the suffocating effect that excessive debt, is having on the economy, has sent a clear message to the appointing authority.
The key to economic recovery depends on whether President Lungu is now convinced that the unabated debt contraction, piece meal and selective implementation of austerity measures is not having any positive impact on economic growth and jobs; and it is time to change course.
I am cautiously optimistic that President Lungu will now throw his full weight behind the new finance Minister, Dr. Bwalya Ng’andu in implementing the austerity measures. The measures will no doubt start producing the desired results and create jobs for our Youth or else any gains made thus by the PF administration such as the infrastructure built and private sector shopping malls that have sprung up all over the country will be white elephants as there will be no customers for them.
The writer is a Chartered Accountant by profession, a Private Sector Development expert and an Entrepreneur. He is an independent, non- partisan finance and economic commentator/analyst and a Patriot.
Independent Churches of Zambia (ICOZ) Board Chairperson David Musupa has said that it is sad that some opposition political parties are calling for an early general election on the pretext of economic challenges.
Bishop Musupa said that it is unfortunate that the United Party for National Development (UPND) is citing the rise in prizes of commodities as the reason to go to the polls early.
He told ZNBC News in a statement that Mr. Hichilema should stop making comparisons of the UNIP and Current government regimes.
He has since urged the opposition leader to come up with strategies that will unite and not divide Zambians.
Meanwhile The Patriotic Front (PF) in Lusaka Province has condemned attacks on President Edgar Lungu by Democratic Party leader Harry Kalaba in some sections of the media.
Lusaka Province Secretary Kennedy Kamba has told ZNBC News that the path of insults that Mr Kalaba has chosen will not take him anywhere.
Mr Kamba said President Lungu has the best interests of all Zambians.
Minister of Home Affairs Stephen Kampyongo and Inspector General of Police Kakoma Kangaja following the Parade proceedings during the 2015-2016 Pass out Parade in Geoffrey Mukuma Training School or called Sondela in Kafue District
President Edgar Lungu has said that some countries in the region have been requesting the Zambia Police Service to train their officers because of the high rating it gets from regional bodies.
The President said that the request to have foreign officers trained in Zambia and some countries wanting to benchmark their security wings with the Zambia Police is attributed to the service’s good performance during peace keeping and similar engagements in the region.
President Lungu has however noted that inadequate infrastructure at training colleges has made the service reluctant to take up the challenge.
In a speech read for him by Home Affairs Minister Stephen Kampyongo at a pass out of 969 recruit officers at Lilayi Police College today, President Lungu noted that government will continue investing in the service to improve its operations.
The head of state said the graduation and deployment of the 969 recruits will help address low staffing levels in the country.
And Inspector General of Police Kakoma Kanganja reminded graduands that their career calls for high levels of integrity hence the need to stay away from crime and politics and be loyal to the government of the day.
And Lilayi Police College Commandant Jestus Nsokolo said the 993 officers had initially been enrolled but 24 did not complete the training.
