The Zambia National Farmers Union (ZNFU) in Central Province says the 2017/2018 maize floor price must be proportionate to the cost of the product.

ZNFU Central Province Chairperson Khomani Ng’ambi told ZANIS in an interview that the union expects government to take into account the high cost of production before arriving at the price of the farm produce especially the maize grain.

He disclosed that consultative meetings have started between ZNFU and other stakeholders so that a rational maize floor price is arrived at considering the challenges characterized in the 2017/2018 farming season.

He reaffirmed that the maize floor price should absorb the cost of producing the commodity as a way of encouraging the farmers to continue producing.

Mr Ng’ambi has since appealed to the farmers in the province to exercise some patience and avoid selling their maize to unscrupulous briefcase buyers.

And Levy Mweemba, a farmer from Kabwe West has called on government to set up a good floor price in order to protect the farmers from exploitative private buyers.

Mr Mweemba said so far, private buyers are offering between K35 and K40 for a 50 kilogram bag of maize grain and described it as stealing from the poor farmers.

He said farmers are left with no option and become vulnerable to private buyers when the maize floor price by the government is not competitive because they depend on farming to earn a decent living.

Mr Mweemba also said there is need for the government to come to the rescue of the small scale farmers by awarding a reasonable floor price following the hike in the cost of farming inputs.

He observed that when government offers farmers less, it is only the private buyers that benefit from the maize business leaving farmers wallowing in absolute poverty.

He also called on government to control the price of farming inputs for the country to produce a bumper harvest in future.

Zambia and Finland have signed a four year Nine million euro grant aimed at enhancing the development of the private sector.

The grant will be channeled towards promoting accelerated growth for Micro, Small and Medium Enterprises (MSME’S) in the country.

Speaking during the signing ceremony held at the Ministry of Finance on Friday, June 02, Finnish Ambassador to Zambia Timo Olkkonen expressed optimism that the Nine million euro grant will help create better jobs in the private sector.

Mr Olkkonen said the Finnish government wants MSME to have direct access to finance, innovation, so as to improve competitiveness in the private sector.

He noted that the grant has the potential to contribute to the growth of local businesses as well as enhance the development of services.

The Ambassador noted that Zambia has good prospects for long-term sustainable development if right policies are properly implemented.

Mr Olkkonen noted that the Finnish government will further capitalize on the long term cordial relations that exist between the two countries in order to explore other new avenues of co-operation.

And Minister of Finance Margaret Mwanakatwe says the grant support resonates well with Government’s Financial Inclusion Strategy whose overall aim is to support small businesses as part of Government’s economic diversification agenda.

Ms Mwanakatwe said more jobs will be created once the development of the private sector is supported and strengthened.

The Finance Minister pointed out that the creation of new jobs will further broaden the domestic tax base in the country.

And Ms Mwanakatwe added that government is very supportive of initiatives aimed at improving the livelihoods of citizens.

She stated that the private sector should be in the forefront in growing the country’s national economy.

“With small business enterprises constituting the bulk of business activities in the country, it is important that we harness their growth and development. If effectively mentored through their early stages of development, I truly believe the small businesses can spearhead the advent of broad based economic revitalisation and poverty alleviation.” She stated.

The Minister said the grant assistance will enable MSMES access affordable loans and transfer technology innovation and research know-how from Finland to Zambia.

“Further, it is gratifying to note that through the programme signed today, linkages will be created between Zambian organisations and their Finnish counterparts.” She said.

“It is further gratifying to note that this assistance underscores Finland’s continued and unwavering support towards our private sector which, started as far back as 2007. It is my sincere hope, therefore, that this new programme, will help Zambia develop a more dynamic and responsible private sector.” She added.

BANK of Zambia governor Dr Denny Kalyalya says the Central Bank has signed a Memorandum of Understanding with the central banks of Malawi and Mozambique to try and use the local currency across the borders.

Speaking when a delegation from Bank of Zambia which was in Chipata for a board meeting met EPCCI at Protea Hotel on Wednesday, Dr Kalyalya said the Central Bank was also in the process of signing the same MoU with Angola.

“…There is a lot of activity going on between Zambia and Mozambique, Zambia and Malawi. In fact, we have signed a Memorandum of
Understanding between our two central banks, [Zambia and] Malawi to try and use the local currency across the border as well as Mozambique, we are in the process of doing the same with Angola but overall as SADC region, we have a platform now which we have established as central banks to use our national currencies to reduce the amount of pressure that we see of using the dollar, Euro and Pound,” Dr Kalyalya said.

He also said overall, the current size of the Zambian economy was about 24 billion dollars with 4.1 per cent.

“Now look at the economies of countries like the US, it’s 15 trillion dollars…the Chinese economy which is the second largest is about 9 trillion dollars. But we are concerned about our own,” said Dr Kalyalya.

Speaking earlier, Mtonga said the BoZ should look at ways of reducing lending rates.

Mtonga also said the foreign exchange rate which was around K10 per dollar was worrying, adding that “it will be better if it gets below K10”.

And speaking when the BoZ delegation paid a courtesy call on him at his office on Wednesday, Zulu said the banks could not conduct business the same way they were doing it in places like Lusaka.

“With your coming, we hope that the bank will come up with very good incentives to local banks that are operating in places that are considered rural because they cannot be doing business the same way they are doing business in Lusaka. This is a peak season for the banks here in the province because farmers are harvesting, so there will be
something to put in their accounts,” Zulu said.

“Our land here is largely customary and our farmers don’t have title to their pieces of land. We need to devise other mechanisms as to how we are going give loans to the farmers to be able to do business. We have the e-voucher system which sometimes delays but eventually comes but if the local banks can be incentivised to be able to give loans to farmers, knowing that government will soon put the monies in their accounts and they will be able to recover their monies, farmers may start getting the loans as early as August and we wouldn’t be having problems like delays in planting which affects the harvests.”

And Bank of Zambia deputy governor operations Dr Bwalya Ng’andu said it was important to go to various provinces to get a sense of the impacts of the various policy decisions they make.

He said Bank of Zambia had been working on expanding the space in the financial sector so that more people could participate in various financial services.

“One of the things that we think is key is the digital platform, the use of a mobile phone as a way of getting various actors to participate in form of financial system especially in the area of transmission of money from one person to the other, that’s one important things that we can push and we hope it can grow as it has been growing,” said Dr Ng’andu.

BOZ vice board chairperson Gilbert Temba said they were in Chipata for the bank’s board meeting.

Temba said the central bank realised that it needed to know the country from economic and social points of view so that as it sits to restructure the monetary policy that responds to the needs of the nation, they would have a grasp of things at various local levels.

President Edgar Lungu says his government will continue to open up access roads in rural areas in order to spur development.

The Head of State said this at Kalene Mission Hospital when he met traditional leaders in Ikelenge district.

ZANIS reports that President Lungu said government will endeavour to improve the living condition of citizens countrywide through an improved road network.

The President noted that most roads in rural areas become impassable during the rainy season thereby depriving the effect of development.

The President said although it was not possible to upgrade all road infrastructure to bituminous standard, government will continue to ensure that roads are made passable to support development even in far flung areas.

The Head of State added that North-western Province possesses a huge potential to contribute to the development of the country but that there was need to improve roads in the region to support the various economic activity.

And speaking on behalf of the traditional leaders in the area, chief Kanongesha of Mwinilunga district said the people of North-western province are happy with the unprecedented development government is taking to the region.

The traditional leader praised President Lungu’s government for ensuring that North-western province is connected to the national electricity grid.

Chief Kanongesha said traditional leaders are also happy that President Lungu has embarked on a path of political dialogue by engaging the Church and other stakeholders.

The chiefs that met with President Lungu in Ikelenge include chief Mwininyilamba, chief Nyakaseya, Chieftainess Ikelenge all of Ikelenge and Chief Kanongeshe of Mwinilunga district.

President Lungu was in Ikelenge to hand over a house he promised to a land mine survivor Enock Makabi when he visited Ikelenge 3 years ago.

Mr Makabi lost his leg in 1977 when he stepped on a land mine.

The land mine survivor’s story moved President Lungu who promised to construct a decent house for him.