Financial Intelligence Centre broke internal communication channels-Dora SIliya
Addressing a media briefing in Lusaka, Chief Government spokesperson who is also minister of information and broadcasting services, Dora Siliya explained that the information gathered by the FIC is intelligence information which can be regarded as rumors which Is why it is first supposed to be reported to law enforcement agencies such as the ACC,DEC and the Police for further investigations, verifications and prosecution.
Ms Siliya says government is currently conducting internal consultations and discussions regarding the decision the FIC made to publicize intelligence information before it was presented to law enforcement agencies.
The Chief Government spokesperson states that by revealing the information to the public, the FIC has rendered the report irrelevant because the public has been made to start judging the people mentioned in the report before they can be prosecuted by relevant authorities.
Meanwhile Ms Siliya says those complaining that there has not been enough consultation regarding the cyber bills should wait until the matter reaches committee stage in Parliament to air their concerns and make available their contributions.
And the minister has condemned in the strongest terms the reported attacks on some Journalists during the just ended Chilanga by-election, noting the need for journalists to be allowed to work freely without fear of being attacked by any political party leader or supporters.
Ms Siliya has however, advised Journalists against acting in a way that will make the public or political parties perceive them as being politically inclined as this can invite attacks from losing parties during elections.
MISA condemns attacks on Journalists
Issiac Chipampe and MISA Chairperson, Ellen Mwale during World Press freedom
day.
In a statement, MISA Zambia vice Chairperson Hyde Haguta says MISA is concerned with the numerous reports of journalists’ lives being threatened by political party supporters, a traditional leader and the Office of the President.
Mr. Haguta says according to reports MISA has monitored, Luapula Community Radio has been receiving demands for copies of its programmes incessantly from the office of the President Special division.
He says at the same time, a named traditional leader who was publicly campaigning for a certain political party in 2016 has continued to intimidate sections of his community and media workers whom he perceives to be against the political party of his preference.
Mr. Haguta says MISA Zambia is further worried with reports indicating that a journalist from Muvi TV, Oscar Phiri was harassed in Mwense by suspected Patriotic Front party supporters on 4 June 2018 in the same area.
He adds that another sad report monitored by MISA Zambia is were suspected UPND cadres numbering over 20 attacked journalists in Chilanga who were headed for the totaling center a few minutes after midnight on 5th June, 2018.
He says the journalists who were fished out of the car by force were accused of having stolen votes; with one of the cadres suggesting that the journalists should be shot dead.
Mr. Haguta says MISA Zambia demands that these sad developments must stop henceforth.
Government issues Statutory Instrument to strengthen Public Finance Management Act
In a statement made available to the media, Mrs Mwanakatwe says the Statutory Instrument number 42 of 2018, the Public Financial Management Act (commencement ) order 2018, was gezetted and published by the Government Printer on Wednesday,30th May,2018.
She says it envisaged that with effective enforcement of the Public Finance Management Act no.1 of 2018, transparency and accountability in public finance management in Zambia will tremendously improve.
Mrs Mwanakatwe says incidences of misuse and theft of public resources will also be reduced and ultimately eliminated.
She states that this will have a positive impact on resource allocation and eventually improve public service delivery.
The Finance Minister adds that in accordance with the Act, any person who breaches provisions of the Public Finance Management Act no.1 of 2018 will be fined, suspended, demoted dismissed, or prosecuted, accordingly.
She further states that the Act gas been imbedded with provisions to facilitate the operation of the Treasury Single Account and the Integrated Financial Information Management Systems.
She explains that in this regard, the Act will provide a platform for further regulation of electronic financial transactions within the framework of Public Financial Management.
Mrs Mwanakatwe says this is in line with the Government’s e-government policy and is expected to reduce operational costs, improve resource allocation, promote efficiency in management of public resources, and enhance public service delivery.
She adds that with effect from 30th May, 2018, the gazette date for the Public Finance Management Act (commencement) order, 2018, board members of state owned enterprises and statutory corporations will individually and severally be accountable for their decisions.
She says this is aimed at improving the levels of decision morality,transparency,accountability,and integrity among persons in positions of accountability.
Mrs Mwanakatwe has further stated that the Public Finance Management Act no.1 of 2018 also empowers the Secretary to the Treasury to deal with non-performing Controlling officers and Controlling bodies
ZICB to open to the public before September
Zambia Industrial Commercial Bank [ZICB], the successor of Intermarket Banking Corporation will open to the general public by end of quarter three 2018.
This was revealed on Wednesday when Industrial Development Cooperation Group Chief Executive Officer Mr Mateyo Kaluba visited the branch on his continued tour of State Owned Enterprises and IDC projects
Zambia Industrial Commercial Bank (ZICB) Limited is one of the new projects under IDC.
The bank, which has been created with a vision of fostering economic development by promoting the industrialisation and commercialization of Zambian businesses, is currently in the process of implementing a new core-banking system, and will open to the general public before the end of Q3 2018.
The Managing Director of Zambia Industrial Commercial Bank is Mr. Ignatius Mwanza, a seasoned banker with several years of experience.
Prior to the appointment at ZIBC, Mr. Mwanza previously worked as a Director Corporate Banking at ZANACO, Head of Investment Banking at Stanbic Zambia Limited, Head of Treasury at Standard Chartered Bank Zambia Limited, Manager Corporate Banking at Standard Chartered Bank (UK) Limited, and Senior Manager (Bureau De Change) at the Bank of Zambia.
The Government last year successfully restructured and appointed management for the former Intermarket Banking Cooperation, now Zambia Industrial Commercial Bank.
Some operations for the new bank have since commenced and depositors are accessing their money.
In the first four days of operations last December ,the Zambia Industrial Commercial Bank paid out K24.7 million of which K21.1 million are cash pay-outs and K3.5 million represents Bank of Zambia Real Time Gross Settlement [RTGS] transfers.
Of the K21.1 million cash pay outs, K15.2 million was paid at its main branch at the junction of Church Road and Cairo Road in Lusaka, while K5.9 million was paid out at its Kitwe Branch for clients on the Copperbelt Province. The total number of clients paid countrywide is 2, 174.
According to an assessment done in December last year, less than 3% of the clients had closed their accounts; a true sign that the majority were willing to start a new relationship with the bank.
WEDNESDAY FOOTBALL WRAP
Zesco United have gone point clear at the top of the FAZ Super Division table while Shepolopolo have been handed a mountain to climb in the 2018 Women’s AFCON qualifiers.
WARRIORS HOLD ZESCO
Warriors snatched a rare away draw at Zesco on Wednesday to finish 1-1 in Ndola.
Dave Daka put Zesco ahead in the 27th minute but Nelson Mziwisa equalized in the 89th minute.
Zesco have 35 points, one more than second placed Green Buffaloes after the draw while Warriors are 6th on 26 points.
ZIMBABWE BEAT SHEPOLOPOLO
Zambia’s 2018 Women’s AFCON hopes look dim on Wednesday after they lost 1-0 at home to Zimbabwe at Nkoloma Stadium in Lusaka.
Rutendo Makore scored the game’s only goal in the 18th minute
Zambia must now beat Zimbabwe away in Harare on June 10 to overturn the result to qualify for this November’s Ghana tournament.
Zambia and Zimbabwe set for 2018 COSAFA Cup showdown
Zambia and Zimbabwe will this Saturday clash at Peter Mokaba Stadium in Polokwane in their second successive COSAFA Cup final.
The defending champions were pushed to the wire by Lesotho but Zimbabwe overcame their opponents 3-1 post-match penalties following a scoreless draw at Peter Mokaba on Wednesday night .
Their hero was Zimbabwe goalkeeper George Chigova who made two saves to hand the champions their place in the final.
Zimbabwe beat Zambia 3-1 in the 2017 final in Rustenburg.
Meanwhile, Zambia redeemed themselves in some style in the early kickoff to reach the COSAFA Cup final following a 1-0 semifinal win over 10-man Madagascar at the same venue.
Chipolopolo flowed but failed to kill off Madagascar in the match after overcoming the latter’s surge in the opening 20 minutes of the first half.
Lazarus Kambole scored the all-important goal in the 39th minute with a fine close-range effort after a flowing move involving him, Cletus Chama and John Chingandu.
Sadly Chipolopolo failed to punish Madagascar in the second half in which Chama misfire three, Ronald Kampamba twice ,all from point-blank range.
Then two minutes before time, Madagascar striker Andriamanjato Tokifandresena was sent-off with two quick yellow cards for a foul on Benson Sakala by referee Jackson Pavaza of Namibia.
However, the best drama was saved for last when Chinagndu decided to go for glory when it was easier to give Kambole or Chama who were in the clear and his decision to go for glory was punished by goalkeeper Jean Randrianasolo who kept out his effort.
Chilanga polls were peaceful-Police Chief
Inspector General of Police Kakoma Kanganja has described the just ended Chilanga Parliamentary by election as peaceful.
This is despite sporadic cases of violence being reported during campaigns and on poll day.
Mr Kanganja said in a statement that the elections were held in a mature and peaceful manner.
He has since thanked political players who participated in the by-elections for conducting their political activities peacefully.
“I wish to thank all political players and all other stakeholders who participated in the just ended by-elections held on June 5, 2018 in some of the wards across the country as well as Chilanga Constituency for conducting their political activities in a mature and peaceful manner. The accomplishment of a peaceful election was as a result of commitment shown by all political players and high levels of compliance to the provisions of the Electoral Code of Conduct, the Electoral Process Act, the Public Order Act and other pieces of legislation,” Mr. Kanganja stated.
“I also wish to congratulate all the police officers who were deployed to police the Chilanga election and other ward elections for their devotion to duty, hard work and altruism during the execution of this important assignment, that of providing a conducive environment for all political players to conduct their activities. I further thank them for portraying high levels of discipline as my office did not receive any complaint against them from members of the public in general and political players in particular. We are however, disappointed to state that despite the achievement of a peaceful election, there was unruly behaviour recorded in some areas and police are investigating.”
He appealed to all political leaders and supporters to fully commit themselves to peaceful elections by completely avoiding promoting and engaging themselves in acts that have potential to cause chaos and instability in the country during future elections.
“Furthermore, during this post-election period I call upon everyone to remain peaceful and avoid any provocative behaviour. Zambia belongs to us all, therefore, promotion of sustainable peace and security should be a shared responsibility,” stated Mr. Kanganja.
But UK High Commissioner to Zambia Fergus Cochrane-Dyet said the elections were marred by violence.
In a Tweet, High Commissioner Cochrane-Dyet said many voters were frightened to vote due to political violence.
Despite heavily armed police, I’ve seen gangs carrying weapons roaming Chilanga for today’s by-election. This poor woman was a victim: not a great advert for #Zambian democracy.
He added, “The Zambia Electoral Commission doing good job. But turn-out low at stations I visited; many too frightened to vote.”
Chilanga Parliamentary by-election victory signal of what to come in 2021-PF
The ruling Patriotic Front (PF) says its victory in the just ended Chilanga Parliamentary by-election is a clear signal of what is expected in the 2021 general election.
Addressing Journalists in Lusaka, PF Media Director, Sunday Chanda says the victory in Chilanga shows that the people of Zambia still have confidence in the leadership of President Edgar Lungu and the Patriotic Front.
Mr. Chanda says the UPND and other opposition parties should start preparing for another humiliation in the 2021 elections because the PF will retain power due to its transformative agenda.
He says it’s clear that the opposition strategy of insulting President Lungu and calling his Government names aimed at turning the Zambian people against the government is not working.
He says President Lungu is gaining popularity with every single election.
Mr. Chanda states that if the UPND cannot change its leadership, they are gone for good.
PF’s Maria Langa is the new Chilanga Member of Parliament after polling 7,226 votes beating her closest rival UPND’s Charmaine Musonda who poll 6,410.
PF condemns attempts by UPND cadres to allegedly kill journalists in Chilanga
The Patriotic Front is saddened by attacks against Journalists by United Party for National Development (UPND) members. We are aware that the hardworking journalists escaped from the jaws of death last night as their attackers, UPND members attempted to injure and kill them altogether. These UPND members were executing the Panga for Panga as directed by the top leadership of their Party. What the journalists experienced is just a tip of an iceberg of UPND’s savagery and violence that we have always warned against and in some cases, we have been doubted by some sections of the media. Zambians, Journalists and media houses at large must hold Mr. Hakainde Hichilema and Mr. Geoffrey Bwalya Mwamba personally liable for issuing the infamous ‘Panga for Panga’ in Chilanga.
We are ably informed that a bus carrying Journalists from media houses including The Mast, News Diggers and Prime Television was savagely attacked as they headed to the Chilanga Totaling Centre for the final declaration of the just ended Parliamentary by election in which PF Candidate Maria Langa has scooped the Seat from UPND. On board the vehicle was Oliver Chisenga-The Mast, Chambwa Moonga- The Mast, Melony- The Mast, Tenson Mkhala- News Diggers, Wells Chifunda – Prime TV, Mr. Lungu- Driver at The Mast and Mike Sichula-Phoenix FM including Tobias-The Mast. UPND members armed with an assortment of weapons charged at the innocent journalists, damaging their bus, beating and stealing from them while threatening to kill them.
Lastly, we do not blame these cadres but their failed and desperate leadership and in particular Mr. Hichilema who has clearly outlived his usefulness politically. The result in Chilanga therefore is less about Ms. Charmaine Musonda being rejected but more about Mr. Hichilema losing yet again because UPND has refused to adapt by allowing for a change of leadership guard for twelve (12) years. UPND is ready to harm and maim innocent citizens such as journalists on account that the people have rejected them in a democratic process. Due to UPND’s Panga for Panga, today Zambia would have witnessed journalists being murdered in cold blood by those sent by their leaders.
Issued by:
Sunday Chanda
Media Director
Party Headquarters
Why Zambia’s foreign reserves are dwindling, kwacha depreciating, while copper prices are sky high: Pres. Lungu holds the key to Kalyalya’s conundrum.
By Kalima Nkonde
President Lungu’s renewal of the contract of Bank of Zambia Governor Dr. Denny Kalyalya should be applauded by independent and keen observers of the Zambian economy as the man, has done a sterling job at the Central Bank regarding monetary policy which has not been sufficiently complemented by fiscal policy measures and executive action.
The initial appointment and subsequent renewal of the contract of the Governor is a clear demonstration that if appointments to key positions are made on merit, Zambia’s economy can easily takes off. The President deserves great praise on this and it should be testimony to the fact that when he does the right thing and makes an informed decision, like he also did regarding the removal of street venders he will win supporters among independents and objective Zambians and thereby build a better legacy.
Improved economic indicators at risk
Dr .Kalyalya has presided on the reduction of inflation from a high of about 21% to a low of 6.1%; stabilization of the exchange rate from $14 to a dollar to below $10; reduction of the policy rate to 9.75% and the statutory reserve rate to 5% and tried to urged the powers that they quickly conclude the IMF deal to help the country with the balance of payments situation which was very fragile when he took over in 2015 but three years on, the deal is not yet on the table mainly due to political delays initially and now IMF is playing hard ball having discovered hidden Chinese debt.
In their Country review statement of 2017, the IMF Executive Board commended Zambia for the improved economic indicators but warned that these gains were precarious and could easily be lost if decisive fiscal action was not taken.
“The near-term outlook for the Zambian economy has improved in recent months, driven by good rains and rising world copper price. The economy was in near-crisis from the fourth quarter of 2015 through most of 2016, reflecting the impacts of exogenous shocks and lax fiscal policy. Executive Directors welcomed the recent improvement in Zambia’s economic outlook. However, Directors noted that domestic and external risks pose significant challenges. They advised the authorities to take advantage of the current favorable conditions and implement decisive and prudent macroeconomic policies and reforms to place public finances and debt on a sustainable path, build international reserves, increase the economy’s resilience to shocks, and achieve higher and inclusive growth”.
However, due to lack of sufficient complementary reforms on the fiscal side, all these gains are now under serious threat where inflation on the upward trajectory and standing at 7.4%; the kwacha is now above the K10 threshold to a dollar and foreign reserves are an eight year low. The low foreign reserves apart from foreign debt are now one of the major economic challenges facing the country and like all economic indicators, it is connected to other factors that are not in the Governor’s control but other arms of government under the President’s control.,
Status of foreign reserves and the kwacha value
Zambia’s foreign exchange reserves were estimated at $2.4 billion in April, 2017 but as of February, 2018, Zambia’s foreign exchange reserves stood at US1.867 billion which is roughly two months of import cover. This is a drop of approximately 29% in less than a year. This is a massive drop and this explains the governor’s concern. This deterioration in the forex reserves is already being reflected in value of the kwacha. In July 2017, the kwacha hit an all time high of $8.90 to a dollar and currently it is about $10.30 to a dollar which is 16% depreciation in a twelve month period.
In February, 2018, during a press conference, the Central bank governor, Dr. Denny Kalyalya bemoaned the low level of foreign reserves.
“Right now, the reserves are not too good for our own comfort. It is a bit tricky; when trying to build reserves through purchases from the market, we have to weigh the impact on the overall market because I think it its still quite fragile. Right now, the reserves are not too good for own comfort- we are talking of $2.1 billion as at the end of December last year – which is close to three months import cover. Our own target is to get to beyond four and if we have to reach the SADC target, its six months of import cover. Copper prices are rising but you see continued reduction in reserves; it’s tricky,” The Governor lamented.
The Governor statement was couched in diplomacy and did not outline why the reserves are low despite the copper prices rising for fear of offending the appointing authority and the powerful forces of mining houses who are the major contributors to the low level of reserves by either commission or omission. This article tries amplifying on the Governor’s concern by explaining to the public the factors affecting the low level of reserves and consequential current depreciation of the kwacha.
While the lay may not understand the importance of having reasonable foreign exchange reserves, and may just ignore the current status, the reality is that low foreign currency reserves affect every Zambian. It is one of the major determinants of the value of the kwacha and if the kwacha depreciates as it is doing now – and Zambia being import dependent – all prices of goods and services will sooner rather than later start going up like in 2015.
IMF deal collapse effect.
The uncertainty surrounding the IMF deal has resulted in the loss of confidence by investors in Zambian economy resulting in the reduction of portfolio investors who were bringing in their foreign currency to Zambia prior to the decision by IMF to put the deal on hold due to the ‘hidden’ debt. It is fair to say that most Zambians do not appreciate that the improved economic figures especially the stable kwacha, happened during the period when Government and IMF were involved in negotiations with the latter providing technical assistance thus boosting investor’s confidence in the Zambia’s economy and its prospects. Foreign investors had confidence that the management of economy under an IMF programme will be better as the current administration is viewed by many independent experts as indisciplined managers of the economy.
According to the African Confidential Magazine, the IMF deal is unlikely this year given that the IMF visit to Zambia is in September, 2018,
“The Ministry insiders say the gap between the IMF’s view and the government’s is too wide for a programme to be possible this year. The Fund’s next mission is not until September, which is far off, given the urgency of the country’s problems. Mwanakatwe is trying to persuade officials to visit in June, the month before the $56 million tranche of payments on Eurobonds is due. But it is Zambia that has to make the first move, by sending a strong signal to the IMF that it will stop borrowing”, the publication said.
The cost of not moving ahead with an IMF deal can clearly be seen in the performance of the country’s Eurobond. According to Bloomberg, Zambia’s Sovereign bonds are the worse performing in the World but until recently, Zambia’s yields, were among the highest of any sovereign in the Euro market, helping to attract investors
“Investor concerns about Zambia show no sign of abetting. Investors are losing hope that President Edgar Lungu’s administration will agree on a bailout with the International Monetary Fund, which says the country is at “high risk of debt distress”. Yields on the southern African copper producer’s 2027 Eurobonds have risen to 10 percent for the first time in almost 18 months. Zambia’s dollar securities are the worst-performing in the Bloomberg Barclays Emerging Markets USD Sovereign Bond Index, which includes more than 70 countries,” Bloomberg said recently.
Zambia’s perceived economic risk has therefore gone up This environment has resulted in the drying up of inflows of both short term and long term inflows of foreign exchange thus the affecting the level of foreign exchange reserves.
Ballooning foreign debt servicing
The other factor that is affecting the low level of reserves is the excessive foreign borrowing by government which the governor lightly alluded to also. Zambia’s foreign debt is so high that at the moment debt, servicing it is eroding foreign reserves substantially. In 2011, Zambia was spending 5% of revenue of serving foreign debt but now it is 22%. In terms of external debt servicing from March 2017 to February 2018, Government has spent US$ 552,832,166 in servicing the growing external debt. Zambia’s foreign debt has increased from $7.2 billion in June, 2017 to $9.1billion, an increase of 26% according to government’s own figures. The June edition of African confidential states that there is another estimated $8billion in the pipeline for Chinese contracted project finance which has not been included in the current foreign debt figure of $9.1 billion.
Mines excessive foreign exchange retention
The Copper price was $4,695 in May,2016 and it is now about $6,900 per tonne which is an increase of 47%. The prices even hit $7,215 on the London stock exchange in December, 2017. The question is why are our reserves low when copper prices have been increasing in the past two years? The reality is that although copper prices are going up, the foreign exchange earned is mostly retained by mines in their off shore accounts abroad and therefore the supposedly 70 % of exports earnings coming from copper is illusory and just there in theory. The foreign currency that mines retain is above 40% and so there is very limited correlation between copper prices and our foreign exchange reserves. This is confirmed by an International Monetary Fund (IMF) in one of their country report.
“Care is needed with the interpretation of the export shock in the case of Zambia. Given that not all the copper export proceeds return to the country because most mines are foreign owned. Staff estimates that at least 40% of exports do not return to the country.” The IMF report noted.
Foreign contractors
The PF administration’s penchant and preference of foreign contractors in awarding major contractors for whatever reason, is a major contributing factor to the depletion of our foreign currency reserve. The case in point is the $3billion Euro bonds where the country was just a conveyor build for the money that was borrowed. The bulk of it came and left the country through foreign contractors, especially Chinese and little remained to contribute to economic multiply effects.
Other factors
The country’s excessively liberal import regime and having an import oriented economy is does also contribute to depletion of foreign reserves. Zambia imports the majority of goods and services that the country consumes and this does put a strain on the country’s reserves. We literally make nothing. At the moment, there is mushrooming of Chinese mall/ shops which are all dependent on importing Chinese goods using the scarce foreign exchange with no added value to the economy whatsoever apart from denying Zambian traders who used to go to China to buy goods in order to earn their a living.
The Bank of Zambia’s excessive participation in the foreign exchange market in order to protect the kwacha by pouring in foreign currency on the market mainly dollars from the reserves when the demand for the dollar is high does reduce our foreign reserves does contribute to the depletion of foreign reserves.
How foreign Exchange reserves can boosted
The solutions to the low foreign reserves do not lie with the Central bank alone but also the Chief Executive of the country, the President. He has to be have an interest and getting involved by ensuring that the other arms of government do carry out their bit to contribute to the objective of having sufficient reserves and protecting our currency, the kwacha. The economic cluster ministries like Finance, Commerce, Mining, Agriculture and Tourism ought to find ways of sorting out the low level of foreign reserves.
The causes of the low foreign reserves as outlined are varied and their contributions/ weight are for the researchers at Bank of Zambia, UNZA, ZIPAR and Ministry of finance. It should, however, be pointed out that the solutions to the problem can be categorized as short term, medium term and long term
The short term solutions should include conclusion of the IMF deal, the cancellation of foreign debts in pipeline and the attendant projects, administrative action on unnecessary imports by working with business associations, imposition of restriction on licensing Chinese retail malls most of which are not contributing to tax and employment but exporting jobs and forex. The conclusion of IMF deal is crucial for boosting reserves. Zambia through the $3billion Eurobond is vulnerable to international capital markets. It may also help to consider internationally respected Zambian economists like Dr. Caleb Fundanga or Ngandu Magande as finance Minister to instill confidence to the markets.
In the medium term, the Government should start engaging Mining houses by progressively reducing the amount of foreign currency they bank abroad so that they start bringing it to Zambia and bank in their foreign currency accounts here. The arrangements were made over 25 years ago when such concessions were fine as the conditions at that time permitted. They needed huge retentions for paying for Plant and machinery, spare parts, raw materials, debt servicing, dividends and expatriate salaries. Some of these components no longer apply. The retentions have been used as conduits of illicit financial flows as they are almost impossible to monitor. This partly explain why almost all mines have been making losses for over 20 years without shareholders revolting in their home countries as they do receive dividends while not paying income taxes in Zambia.
Zambia has made too many concessions with the mines on taxes, its time we acted tough on some of these issues. Khama and Mogae did it in Botswana with De-beers with relocation of diamond processing from London to Gaborone; Kabila just did it with royalty taxes. President Magufuli has just implemented far reaching mining reforms of mining act in Tanzania. The Mining houses in these countries never left! In Zambia, we treat Mining houses like eggs; it is time we called their threat of closing the mines, bluff. The will not leave with the prices so high and expected copper boom in the future given the impending electric car revolution.
The Mines should also be engaged to influence their captive suppliers of spares and other requirements to re- located from abroad and set up shop in Zambia like it was in the past where support industries to the mines were located on the Copperbelt and in the process transferred skills, technology, provided employment and paid taxes.
In the long term, the well know solution of export diversification policies of promoting non traditional exports, promotion of tourism, import substitution policies and value addition through the manufacturing industry. Zambia should also consider obtaining reasonable equity stakes from the foreign mining houses so that we start sitting on their boards and if we dribbled through tax avoidance, we can at least participate in dividend payments.
CONCLUSION
It is crystal clear from the analysis that the possibility of Zambia relapsing into an economic crisis like in 2015 is very real as the trend in some of the key economic indicators like inflation, exchange rate, level of reserves, the level of public debt and Zambia’s Euro bonds being the worse performing in the world with interest (yield) at 10% and having lost value 11% this year alone, all provide sufficient evidence. The President as the Chief Executive of the country needs to take bold and decisive action now. The President has boasted several times that he has a lot of power.
“I have a lot of power but I don’t want to abuse it. We only use power when there is necessity to use power,” he said when addressing Supporters in Ndola in April this year.
The message to the President is that this is the necessary time to use those powers in the interest of the economy and the Zambian people. He has made bold decisions in the past that negatively affected ordinary Zambians such as the removal of subsidies on fuel and agricultural inputs and the removal of vendors from the streets. It is time he made decisions that are in the best interests of Zambians not the powerful local and foreign interests or based on narrow political considerations of the next election. No Zambian will be negatively affected by cancelling debts in pipeline or reducing miner’s foreign currency retentions.
The following are some of major decisions that he needs to take using his Presidential powers: One, cancel all the foreign debts in pipeline as well as the supporting major projects; two, reduce Miners’ percentage of foreign exchange retention and three, implement strict fiscal discipline in the management of the country’s finances and lead by example.
One of our major diseases as Zambians including the current administration is that we fail to anticipate problems or if we do, we fail to take action prior to the event taking place. The mindset and management style of fire fighting has cost us dearly economically. It is important that the President takes action now before it is too late
The writer is a Chartered Accountant by profession and a financial management expert. He is a retired, independent and non partisan commentator/analyst. He has lived in the diaspora in England, South Africa and Botswana for over 25 years.
Close to 200 doctors go for seven months without pay
The Zambian Government through the Ministry of Health has failed to pay close to 200 newly recruited medical doctors seven months after they were deployed.
And a number of qualified doctors in Zambia still remain unemployed.
Sources at the Ministry of Health have confirmed that 139 doctors are working without being placed on the payroll.
The worst affected medical facility is the University Teaching Hospital where 26 doctors are working without getting paid while at Levy Mwanawasa General Hospital, 28 doctors have also not been put on payroll except for only four.
Ministry officials have confirmed that the Resident Doctors Association of Zambia has started engaging the Ministry in order to resolve the issue.
In a recent media statement in reaction to Government’s move to ban public health workers from taking up private jobs, Resident Doctors Association of Zambia General Secretary Francis Mupeta reminded government that Zambia doctors have sacrificed a lot and given up so many of their rights as workers for the sake of saving the public.
Dr Mupeta stated that having medical doctors go for seven months with pay is equivalent to casualisation of the medical profession
He described the situation as sad.
“Doctors went for 5 straight years without a pay raise until this year when they received a nominal rise that is not even worth talking about. Resident doctors are currently being underpaid their fuel allowance for the past 5 years and have continued to live on the promissory note of the “issue being rectified”.
Specialist doctors are being deployed to all provincial hospitals without a corresponding match in their pay. This too is tantamount to abuse of employees,” Dr Mupeta said.
Dr Mupeta charged that doctors in the public-sector work with limited resources and have gone without complaining.
Kalingalinga Police Post sale was legal-Vincent Mwale
Local Government Minister Vincent Mwale has revealed that the sale of Kalingalinga Police Post in Lusaka was done within the law.
Responding to heavy criticism over the sale of land where the police post is located, Mr Mwale said the Lusaka City Council passed a resolution to sanction the sale.
He said the current Police Post will be demolished and a new and improved police station will be constructed.
Mr. Mwale confirmed that the developer who has bought the land will construct a shopping mall and move he police post to a new location.
He however confessed that government is helpless when it comes to dealing with private developer who wish to set up shopping malls.
“I share your view on malls, they take the place of our people who survive on tuntembas (mostly women) but how far can we go stopping the private sector who own private land from investing in malls, maybe we should think more of what we need to do to have Zambian products in these malls,” Mr. Mwale said.
He added, “the police post in Kalingalinga has served people well thus far, according to LCC the proposed one will be bigger and better, it will be constructed before this one is demolished making sure people don’t miss a day of police services.”
150,000 Kwacha to kill Hippos in Luangwa Valley
A South Africa trophy hunting company is charging around K150, 000 to kill Hippos in the Luangwa Valley.
Umlilo Safaris, a South African trophy hunting company has begun offering customers a five-day “hippo management hunt” in the Luangwa Valley for £10,500 each.
On its Facebook page, the company says hunters can shoot five hippos per trip and keep the animals’ tusks.
The company also confirmed that it does allow its customers to export the tusks.
Trophy Hunters have now been allowed to kill more than a thousand hippos over the next five years in Zambia.
The cull, in the Luangwa River region, is a bid to control numbers and stop the spread of anthrax, the country’s government insists.
Government has confirmed that it plans to allow 250 hippos a year to be killed, with one Safari Company already offering tourists the chance to kill up to five of the animals each.
The Department of National Parks has argued the cull will help prevent anthrax outbreaks in an area overpopulated with hippos.
In a statement, Zambia’s Ministry of Tourism said the culling was to maintain a “suitable habitat for aquatic species and wildlife in general”, noting that similar culls had taken place before.
“The hippos are causing considerable damage to the riverbanks and continue to threaten the sustainability of the river system,” the statement read.
Anthrax is a potentially deadly disease caused by bacteria living in the soil.
Hippos are susceptible to the infection, and can pass it to humans who eat infected meat.
Zambia initially suspended a planned cull in 2016 following pressure from activists, but Born Free has accused the government of “secretly” overturning the decision and “promoting the cull to trophy hunters”.
Will Travers, chief executive of the charity Born Free said government has failed to provide enough evidence showing an overpopulation of hippos in the Luangwa River, or to make public any data that justifies the cull.
“They are, apparently, using the same flawed rationale for the slaughter as last time – a preventative measure to avoid a future outbreak of anthrax, combined with an assertion that low rainfall will exacerbate the situation,” he said.
“They also appear not to have informed key stakeholders in the Luangwa Valley… The negative consequences for thousands of hippo and Zambia’s reputation as a wildlife tourism destination cannot be underestimated.”
Richard Kock, professor of wildlife health at the Royal Veterinary College, told The Independent the government needed to provide data to justify the cull.
“There’s no doubt that hippos can build up numbers until there really are probably too many for the ecosystem,” he said. “And so I think the anthrax may well be a factor in controlling their populations, and it may benefit the environment because they will consume large quantities of herbage, and obviously that will affect other species.
“I’m also very sensitive to the fact people use these things as excuses for nefarious behaviour. So I would say you need good data and you need good evidence and it should be the scientific authorities who should back up any sort of criteria on culling. And it should be justified.”
Ecobank Zambia to plant 2,500 fruit trees in 50 schools
Ecobank Zambia has committed to plant 2,500 fruit trees in 50 schools across the country under a project dubbed 50-5-50 Initiative.
The project was launched at Lotus Basic School in Lusaka on Tuesday, 5th June 2018 in commemoration of the World Environment Day.
The Bank will plant 50 fruit trees of five species in each of the 50 schools comprising of Lemon, Orange, Avocado, Guava and Mango.
Ecobank Zambia Managing Director Kola Adeleke said that the Bank will continue supporting Government’s efforts in combating climate change and protecting natural resources for future generations.
Mr. Adeleke said Ecobank was happy to contribute its share towards the ‘Plant a Million Initiative” which was recently launched by President Edgar Lungu on 30th April 2018.
Speaking at the same event, Ecobank Transnational Incorporation (ETI) Outgoing Non-Executive Director Ms. Dolika Banda said that it was everyone’s responsibility to take care of the natural resources.
Ms. Banda said “Trees absorb harmful gases from the environment and they give us oxygen and food. It is for this reason that we should also take care of them”.
And Lands and Natural Resources Minister Jean Kapata who was represented by the Permanent Secretary Mr. Trevor Kaunda said Government was happy to partner with Ecobank on this project and would offer the required technical assistance to schools in the establishment of tree nurseries, planting and management of the planted fruit trees.
Ms. Kapata said “the successful implementation of the Ecobank 50-5-50 Tree Planting Initiative is expected to instill a positive attitude of planting trees in our schools, provide food supplements from trees grown, contribute to climate change mitigation and generate additional income in schools.”
The World Environment Day which is commemorated every year on 5th June was designated by the United Nations to stimulate worldwide awareness of the Environment. The theme for this year was “Beat Plastic Pollution for a Clean and Green Zambia.”
Ecobank has partnered with the United Nations Environment Programme, United Nations Development Programme and the Local Governments to help combat climate change and protect natural resources for future generations by planting trees in 33 countries across the continent where the Bank is present.
In attendance at the launch were United Nations agencies, Lotus Basic school Management and other stakeholders.