By Arnold Chasaya

Government has increased constituency development fund (CDF) allocation for 2024 to K30.6 million—from the current K28.3 million.

“Madam Speaker, to ensure that more resources are directly provided to communities for local development, including basic services such as clean and safe water, maternity wings, and school desks, I propose to increase the allocation to CDF to K4.8 billion. With this increase, each constituency will receive K30.6 million from the current K28.3 million,” announced the Minister of Finance and National Planning, Situmbeko Musokotwane.

Dr. Musokotwane announced the increase on Friday September 29, 2023, in the capital, Lusaka, when he presented the 2024 national budget to the National Assembly.

The minister, who described CDF as a game-changer, added that “As at [the] end of August 2023, a total of 3,132 classrooms were built under the CDF.”

The ambitious increase comes at a time when many constituencies across the country have been seen failing to identify and dedicate CDF towards their respective competitive edges.

This failure has caused some of the constituencies to spend the funds on duplicate, expensive equipment, such as graders—which many of them do not even need to buy.

For instance, why would two constituencies sharing boundaries buy the same equipment separately?

Need for plan-based CDF allocation

One of the notable objectives of the 2024 national budget is to reduce government expenditure, which, according to Dr. Musokotwane, directly translates into fiscal discipline.

“Madam [Speaker], I am happy and proud to report that in the two years that this Administration has been in office, fiscal discipline has been very high. As I just reported, revenues and expenditures are nearly spot on as authorised by this august House,” he announced.

Talking of discipline. Is it discipline when a parent dishes out huge sums of money to his or her children without asking what their respective, immediate financial priorities are?

That’s where the issue is. Before the Government allocates a penny to any constituency for its development, it needs to compel the requesting constituency to undertake a development needs assessment.

This requisite assessment should understand threats, opportunities, areas of urgency, and identify possible project benefits.

The assessment should also produce a baseline document (which will act as a reference point after implementation), in addition to, finally, producing a justifiable, itemized budget.

Once these steps have been exhausted, that’s when the Government can decide how much a particular constituency actually needs for its development projects.

The Government should also make it a tradition for every constituency to produce progress reports either quarterly or after every fiscal year.

These reports should be a solid basis for releasing or not releasing additional funding to complete projects which would have not been completed.

Until such measures are introduced by the Government, the so-called fiscal discipline would be a far-fetched idea, which will only exist on paper.

In addition to strengthening fiscal discipline, plan-based CDF allocation will help ensure that the funds are allocated to projects that align with the central government’s priorities and timelines.

Otherwise, the current Good-Samaritan’s CDF allocation approach promotes only impulse shopping among constituencies.

As the Indian investor Vedanta Mineral Resources returns to Konkola Copper Mines (KCM), mine contractors and suppliers in Zambia are expressing their eagerness to participate in and benefit from the renewed operations. Costa Mwaba, President of the Association of Mine Suppliers and Contractors, has called upon his members to unite to seize this opportunity.

Mr. Mwaba emphasized the need for Vedanta to establish a transparent and accountable supply chain system that actively involves local suppliers and contractors. He believes that a united front among industry stakeholders will pave the way for mutually beneficial partnerships.

This call for unity culminated in a pivotal meeting on Wednesday, where representatives from Vedanta and Copperbelt Minister Elisha Matambo gathered with suppliers and contractors. The meeting took place at the Garden Court Hotel in Kitwe and served as a platform to discuss the future collaboration between Vedanta and local industry players.

Vedanta’s Country Director, Dr. Moses Banda, used the occasion to underscore the company’s commitment to establishing long-lasting relationships with local suppliers and contractors. Dr. Banda’s statement signals Vedanta’s intention to actively engage with the Zambian business community, promoting inclusivity in their operations.

One of the pressing issues discussed at the meeting was the outstanding debt owed to suppliers and contractors, amounting to $250 million. Dr. Banda addressed this concern by indicating that Vedanta would embark on a systematic approach to address this financial burden, starting with low-value invoices.

Copperbelt Minister Elisha Matambo seized the opportunity to encourage contractors to work closely with the new Vedanta team. He expressed confidence in the capability of local contractors to deliver quality services and emphasized the importance of Vedanta offering viable contracts to Zambian companies.

The return of Vedanta to Konkola Copper Mines has generated optimism within Zambia’s mining industry. The collaborative efforts between the company, local suppliers, and contractors are anticipated to stimulate economic growth, foster partnerships, and ultimately contribute to the sustainable development of the mining sector in Zambia.

Zambia’s extensive reliance on fuel is unmistakably evident, with vehicles traversing the nation’s bustling roads day in and day out. However, Zambia lacks domestic crude oil production, making it reliant on imports from the Middle East and Europe, which enter through the port in neighboring Tanzania. Distributing fuel throughout the nation is a costly and time-consuming endeavor, primarily relying on road transportation. Fortunately, a transformative solution is on the horizon in the form of a new fuel pipeline currently under construction in Muchinga province’s Mpika town.

The aging Tanzania Zambia Mafuta (TAZAMA) pipeline, erected in 1968, is poised to supply 6.5 million liters of fuel to the forthcoming depot in Muchinga, as per Zambian officials. Davison Thawete, the Managing Director of TAZAMA, expressed the implications of this construction, stating, “The consequence of that [construction] now is that all the fuel required to be delivered to the northern province, Muchinga province, Luapula province, will be picked up from here.”

The TAZAMA pipeline has been instrumental in transporting raw crude oil material for refining from the Port of Dar-es-Salaam in Tanzania to Zambia’s Ndola town for several decades. Comparatively, the new facility is slated to feature advanced specifications, as highlighted by Zambian authorities. A pivotal meeting between Tanzanian and Zambian officials in July revolved around this new project and the security concerns surrounding the TAZAMA pipeline, especially related to vandalism.

Zambia’s Minister of Defense Ambrose Lufuma articulated these concerns during the meetings, stating, “There have been security concerns, as the pipeline passes through communities in both countries. Previously, the pipeline was transporting commingled (oil) products, but now it has been upgraded to finished products, hence the need for further security.”

The new project is expected to be finalized by November this year, with the primary aim of bolstering fuel distribution across the nation, according to Zambian authorities. Currently, Zambia consumes slightly over 1 million liters of fuel per day, with the cost of a liter of diesel in the capital Lusaka hovering around $1.07 (€1.01), a rate that many find challenging to afford. These elevated fuel prices are often attributed to the expenses incurred in road transportation and distribution, particularly in the northern regions of the country.

Zambia is resolute in its long-term objective of stabilizing diesel supply and maintaining favorable pump prices. The ongoing construction project has instilled hope in residents of regions like Muchinga, Luapula, and other northern provinces, where changes are eagerly anticipated.

Johnstone Chikwanda, an energy expert, underscored the significance of the new project in making fuel more affordable for Zambians, stating, “It is going to help, because it means it will cut back on the time spent on transporting the fuel into Muchinga province, which could also feed other adjacent provinces.”

The Zambia Energy Regulation Board is optimistic that the new facility will lead to better protection of road infrastructure. Reynolds Bowa, the Chairman of Zambia’s Energy Regulation Board (ERB), emphasized the advantages of pipeline distribution, stating, “Instead of running around the whole country with trucks, fuel will be distributed by pipelines. It will save us money, wear and tear on the roads, and the price of the product will be cheaper.”

Chikwanda expects the Zambian government to expedite similar projects across the country to enhance the safety of fuel transportation. He remarked, “As you know, the road carnage, we have a lot of congestion on our roads and these tankers have been exploding, the accidents have been a lot, and so transporting fuel by pipeline is an encouraged practice globally, it is cheaper, and it is safer.”

Moreover, the government has disclosed that the pipeline will open avenues for TAZAMA to export fuel to mineral-rich towns in Congo, as well as to Rwanda and Burundi.

In conclusion, Zambia’s imminent fuel pipeline project stands to revolutionize the nation’s energy landscape, promising reduced costs and more efficient distribution. As it nears completion, hopes are high that it will alleviate the financial burden of fuel on ordinary Zambians while ensuring the safety and sustainability of fuel transportation. Furthermore, the prospect of fuel exports to neighboring countries holds the promise of economic opportunities on the horizon.

President Hakainde Hichilema has officially inaugurated the 2023 Zambeef wheat harvest season, rallying the nation’s farmers to elevate overall crop production to new heights.

Addressing a gathering at the Mpongwe Zambeef farm in Mpongwe District, President Hichilema emphasized the importance of efficient resource utilization to boost production per hectare. The President also commended Zambeef for its remarkable success story, showcasing its commitment to invest $100 million in enhancing production.

Zambeef’s achievement of a remarkable nine tonnes per hectare of crops at the Mpongwe farm, President Hichilema noted, sets a high standard that can inspire other farmers across the country. He further emphasized that Zambeef’s record harvest for the year aligns with the government’s vision of increasing grain productivity.

President Hichilema underlined the significance of maize as a commercially attractive crop, expressing confidence that such attraction will result in higher production levels. He called for a shift from the current 3.3 million-tonne crop production to a colossal 100 million tonnes through improved productivity.

In response to the President’s call, Agriculture Minister Reuben Mtolo urged Zambeef and other farmers to consider planting more maize to alleviate the price of this essential staple food.

Simultaneously, Jervis Zimba, President of the Zambia National Farmers Union (ZNFU), appealed to Finance and National Planning Minister Situmbeko Musokotwane, who is set to present the national budget, to consider zero-rating all agricultural commodities for the next five years.

Faith Mukutu, Chief Executive Officer of Zambeef, committed her company to expanding maize cultivation, recognizing the importance of stabilizing the price of this staple food in the market.

Copperbelt Minister Elisha Matambo, earlier in the event, heralded the province’s resurgence, attributing it to the government’s positive strides over the past two years. He also commended private sector players like Zambeef for their contribution to off-season production and the broader agricultural sector.

In his concluding remarks, President Hichilema acknowledged the critical role agriculture plays in his administration’s economic transformation and job creation strategy. He expressed appreciation for Zambeef and other partners’ collaboration and welcomed the construction of a state-of-the-art flour mill at the Mpongwe farm, a significant step towards value addition.

The President called on all stakeholders to collectively combat the global food crisis and reduce food insecurity by ramping up production and productivity. In his vision for a ‘New Dawn,’ President Hichilema reaffirmed his commitment to uplifting Zambia’s agricultural sector and improving food security for all its citizens.

Zambia Airways has marked a historic moment in the country’s aviation history with the acquisition of its first-ever locally registered Boeing 737-800NG Aircraft. The national carrier’s latest addition underscores its commitment to sustainable growth and increased connectivity.

Transport and Logistics Minister Frank Tayali unveiled the milestone during an inspection of the aircraft at the Kenneth Kaunda International Airport (KKIA) in Lusaka. The aircraft is expected to pave the way for Zambia Airways to expand its services by introducing scheduled flights to all the capital cities within the Southern African Development Community (SADC) region. However, this will commence once all the necessary registration processes are completed.

Minister Tayali expressed his admiration for Zambia Airways’ dedication to sustainability and growth in the aviation sector. He lauded the addition of the new Boeing 737-800NG Aircraft as a crucial step in enhancing both domestic and international connectivity.

The unveiling ceremony at KKIA was attended by several dignitaries, including Mrs. Irene Tembo, a ZACL Board Representative, and Zambia Airports Corporation Limited’s Acting Managing Director, Cosam Ngoma.

Zambia Airways Chief Executive Officer Abiy Jiru highlighted that the new aircraft will play a pivotal role in ensuring that the airline continues to uphold stringent quality standards while expanding its flight offerings at competitive prices in the market. This development aligns with Zambia Airways’ vision of delivering top-notch service to passengers.

Cosam Ngoma, Acting Managing Director of Zambia Airports Corporation Limited, affirmed the corporation’s unwavering commitment to collaborate with airlines and support their endeavors to provide efficient and reliable air travel services.