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The Victim-Charity NamukoA DISPUTE has erupted between the family of the slain 30-year-old Lusaka wife and that of her suspected killer husband following the failure by the two parties to raise K20,000 needed to transport the deceased’s body to Nakonde for burial.
The family of the deceased woman is demanding that her body be taken to Nakonde for burial but the suspected killer’s relatives have allegedly said there is no money to undertake such an expensive venture.
A check by the Daily Mail at the funeral house in Meanwood Kwamwena yesterday found only a handful of the man’s family members while the deceased woman’s relatives had left in anger.
Charity Namukoko and her suspected lover, Andrew Chibesa, 27, both teachers at Crown Academy, were on Thursday evening allegedly shot dead by 33-year-old Peter Siwale, a businessman, after he reportedly found them in a compromised mood near a sewerage.
Ms Namukoko’s sister, Petronella Sikanyika, said the two families are failing to agree on where to bury the body of the dead woman. They have allegedly also differed on how to raise money to transport Ms Namukoko’s body to Nakonde.
Ms Sikanyika said her family members have decided to leave the funeral home for Nakonde, where they hail from, and that the man’s relatives will transport it when they are ready to do so.
“Right now we are at Chelston Police Station with our in-laws with the hope that a solution will be found,” she said.
Ms Sikanyika explained that her family is ready to take the body to Nakonde only if money to buy a coffin and for transport is found.
But the murder suspect’s cousin, Emmanuel Ng’ambi, said his family does not have the capacity to raise K20,000 to transport Ms Namukoko’s body to Nakonde.
Mr Ng’ambi said Mr Siwale is the bread winner of the family who when asked about the money for transporting the remains of his wife, said he only has K1,800 in his three bank accounts.
“We suggested to our in-laws that the body be buried here as it will be cheaper, but they all refused and opted to leave the funeral home in anger,” he said.
Mr Ng’ambi said his family is struggling to feed mourners and hence cannot manage to raise the K20,000 needed to transport Ms Namukoko’s body to Nakonde.
“These are hard times and we are all broke.
“We were thinking that maybe we could use Mr Siwale’s other car to transport the body, but it has a problem,” he said.
The couple’s three children, including their 12-year-old niece, have been taken to the social welfare department where they are currently being kept.
Meanwhile, Mr Chibesa, who was shot dead together with Ms Namukoko, has been buried at Mutumbi cemetery in Lusaka.
Solar Powered Milling Plant
Government says it will set up three solar milling plants in Kabompo district in Northwestern province in an effort to add value to maize produced in the district.
North-western province permanent secretary, Ephraim Mateyo said the solar milling plants which will be managed by cooperatives will be located in Chikenge capital, Chikonkwelo and Kantendwa areas respectively.
ZANIS reports that Mr Mateyo disclosed this when he graced this year’s Chivweka traditional ceremony of the Luchazi speaking people at chief Kalunga’s royal grounds in Kabompo district yesterday.
He says government will continue to partner with traditional leadership in order to sustain local and national development.
Mr Mateyo said government will also engage the Rural Electrification Authority (REA) to connect and install power to areas such as Kayombo, and Chikengi as well as the chief’s palace due to their potential for development.
Meanwhile, Chief Kalunga, in a speech read on his behalf by the Chivweka cultural association chairperson Matthews Makayi, applauded government for the various developmental projects taking place in his chiefdom.
He said the social cash transfer programme and the erection of communication towers have transformed lives of the people in his chiefdom who used to travel long distances in order to communicate.
Chief Kalunga however, appealed to government to work on the road network in his chiefdom because good roads are vital in the acceleration of development in the district.
Luanshya Mayor Nathan Chanda unveiling the placard
Luanshya Municipal Council has completed the formulation of two new policy charters aimed at curbing corruption and improved effectiveness of service provision by the local authority.
Luanshya Mayor Nathan Chanda says the two policy documents will be implemented soon after they are subjected to the relevant council committees and presented for adoption in the next full council meeting.
ZANIS reports that the policies namely the Gifts and Benefits Policy and a consumer service policy are aimed at providing adequate guidance on the procedures of effective and efficient service provision.
The documents will help in addressing complications involving the receiving of gifts and benefits in the name of the local authority without disclosure.
Mr Chanda noted that the documents are based on the locally and internationally acceptable cooperate governance norms and the anti-corruption laws.
“A council officer or councilor will be required to make a declaration to the integrity committee and make an entry into the council’s Gifts and Benefits Register before a decision is made weather to allow the gift or have it forfeited to the council” he said.
Mr. Chanda said the consumer service charters will serve as a framework for defining service delivery standards by upholding consumer rights and timely response to consumer complaints.
He added that the two policies are aimed at improving service delivery, boast public confidence, and maximize revenue collection curb corruption and enhanced transparency among other issues.
NKANA Water and Sewerage Company has stopped the physical distribution of bills to its customers and introduced E-Billing.
Company Public Relations Manager Mr. Bivan Saluseki yesterday disclosed that from June this year, bills are being sent to customers through emails and mobile phones.
Mr. Saluseki explained that the decision to introduce E-Billing was arrived at after wide consultations with customers and stakeholders who thought it would be much more convenient to embrace technology in the delivery of bills.
He said E-Billing would address the complaints from customer concerning none delivery of bills.
“Nkana water is asking all the more than 60,000 connected customers to register their mobile phone numbers and those with e-mail addresses to do the same so that they receive their bills electronically. Our company website has features and links for people to check their water balances,” he said.
Mr. Saluseki said Nkana Water becomes the first water utility to introduce such a feature.
He said for mobile phones, Nkana Water would generate a mini statement to all customers on the fifth day of every month and it was incumbent upon customers to register.
To register in order to receive an SMS from Nkana Water, text: nwsc space account number space, your residential area and send to 4466. Thy can also check their water balances by typing the following: nwsc space bal space account number and send to 4466.
The Government of the Republic of Zambia has implemented the dual citizenship clause for Zambians in the diaspora who acquired citizenship of another country.
The Citizenship Board will now register within six months a person who ceased to be a citizen of Zambia as a result of acquiring the citizenship of another country upon notification to the Citizenship Board of Zambia.
Foreign Affairs acting Permanent Secretary Sylvester Mundanda has confirmed the development in a circular issued to Heads of Zambian Missions abroad.
According to Statutory Instrument (SI) Number 50, The Citizenship of Zambia Regulation, 2017, now provides for a person who ceased to be a citizen as a result of acquiring the citizenship of another country to apply to the Board for restoration of the Zambian citizenship.
“The Board shall cause to be entered in the register of citizens who hold dual citizenship, the names of a citizen who acquires the citizenship of another country.
“A person who ceased to be a citizen as a result of acquiring the citizenship of another country may apply to the Board for bestowal of the citizenship in Form VII set out in the First Schedule,” SI No. 50 Clause 10 section 1 and 2 states.
The SI further states that applicants for bestowal of citizenship, where the applicant is abroad may lodge the application with the Zambian mission in the country of that applicant’s residence or the nearest country where there is a Zambian mission.
Mr. Mundanda has since directed diplomats in various missions to be conversant with the provisions of SI Number 50, Citizenship of Zambia Regulation, 2017 for the purpose of sensitizing Zambians in the diaspora.
And Zambia’s Charge’ D’Affaires in Washington D.C Joseph Chilaizya has urged people in the United States of America who ceased to be Zambian citizens as a result of acquiring citizenship of another country to apply as soon as the mission receives all the required forms for bestowal of the Zambian citizenship.
Mr. Chilaizya says the Embassy of Zambia in Washington D.C will in due course conduct sensitization programmes to increase awareness about the new piece of legislation.
Zambia Police Service Inspector General Kakoma KanganjaInspector General of Police Kakoma Kanganja has testified in a matter in which he has sued former Zambian Voice Executive Director Chilufya Tayali for defamation.
In this matter, it is alleged that Mr. Tayali posted a statement on his facebook page that was defamatory.
When the matter came up Mr. Kanganja said the statement by Mr. Tayali alleging that the Inspector General of Police was incompetent and failed to protect the President was injurious as people started calling for his resignation.
But the defense argued that calls for Mr. Kanganja to resign started way before Mr. Tayali posted his statement on facebook.
Meanwhile, Mr. Kanganja told the court that he does not work on instructions from any politician.
He told Lusaka Magistrate Felix Kaoma that UPND leader Hakinde Hichilema disregarded the directive from police officers to give way to the Presidential motorcade in Mongu.
Mr. Kanganja said there was going to be mayhem if police officers had reacted against Mr. Hichilema and others that refused to give way to the Presidential motorcade.
He told the Lusaka Magistrate court that officers had to restrain themselves in order not to lose any life.
Mr. Kanganja says it is standard practice for people to give way to the head of state every time when his motorcade is using the road.
He was responding to a question from Defense lawyer Keith Mweemba who wanted to find out why Mr. Hichilema was not stopped by the Police officers so that the President could pass.
From right, Mr Walubita Imakando Ambassadot To Malaysia , Mrs Winnie Chibesakunda Ambassador To China nand Mr Josephy Mwape Mukukka Projects at The Statehouse- PICTURE BY EDDIE MWANALEZA/ STATEHOUSE.Government has cautioned parents against engaging local and foreign agents to facilitate the enrollment of their children in universities in China.
ZANIS reports that Zambia’s Ambassador to China Winnie Chibesakunda issued the warning following rising alarming numbers of privately sponsored Zambian students being duped by unscrupulous agents.
Ambassador Chibesakunda regretted that many students have been denied entry into university on account of agents remiting less fees to the universities.
She said such students have been detained awaiting deportation back home.
The Zambian envoy explained that government has been unable to quickly come to the aid of such students due to non budgetary allocation.
She however pointed out that government is doing the best it can to assist affected students in repartriating them back home.
She appealed to Zambian parents seeking tertiary education for their children to exercise caution and desist from engaging dubious agents who disappear after receiving payments for onward remission.
Ambassador ChibesaKunda said she will be engaging relevant authorities and line ministries to create an institute that will solely facilitate the recruit and enrollment of Zambian students into Universities in China.
The Anti-Corruption Commission has appealed against the Lusaka Magistrate court’s acquittal of former Minister of Tourism, Silvia Masebo.
This is in a matter in which Ms. Masebo was charged with Abusive of Authority of Office contrary to section 21(1) of the Anti-Corruption ACT NO. 3 of 2012, when she allegedly directed the then Zambia Wildlife Authority -ZAWA- to cancel the tender for the hunting blocks.
The Commission has since filed in an Appeal to the High court.
The grounds of appeal being that:
1. The trial court erred in law when it made final assessment as to witnesses’ credibility especially as to their truthfulness at no case to answer stage.
2. The trial court erred in law when it acquitted the Respondent at no case to answer, in count one (1) when there was proof of one ingredient of the offence charged.
3. The trial court erred in law when it considered a benefit as one of the ingredients of the offence of Abuse of authority of office.
4. The trial court erred in law when it held that the actions by the Respondent of directing ZAWA to cancel the tender process did not amount to Abuse of Authority of Office.
5. The lower court misdirected itself at law when it gave an unbalanced evaluation of the evidence where only the flaws and not strengths of the case of the state where considered.
6. The trial court erred in law when it accepted the hearsay evidence of DW2.
Lusaka Mayor His Worship Wilson Kalumba
Lusaka Mayor Wilson Kalumba has maintained that the city council will go ahead and introduce a Garbage Fee to be collected through phone air time recharge.
Mr Kalumba said the Fee will go towards effective management of solid waste in the capital city.
He said his office has just completed consultations with phone companies over the introduction of Garbage Fee for Lusaka residents.
“When you have a post-paid land line or mobile phone the phone companies earn the money when you make a call. However, I have found a different practice regarding prepaid accounts,” Mr Kalumba said.
He continued, “They consider to earn the money immediately when you purchase air time even if you have not made a call. This will create a challenge for council to collect garbage fees from airtime value. I want this practice to be changed so that phone companies earn money on prepaid accounts when calls are made.”
“Accounting gurus what is your view? Customers what do you think? My office has just completed consultations with phone companies who indicate that they can support with their various payment solutions but this is one matter that needs resolving,” he said.
“Am trying to remove the need for a resident to make the decision when to pay, but enforce auto pay.”
A delegation from the World Bank and International Finance Corporation (IFC) paid a visit Zambeef’s Ten-Miles Macro Outlet and Lusaka processing outlet on Friday (July 28) as part of the organisation’s wider tour of development projects and investments in the country.
Expansion of Zambeef’s Novatek stockfeed division with the addition of a new processing plant in Mpongwe have been undertaken with support from IFC. The investment will generate additional capacity that will facilitate the continued growth of sales of Novatek stockfeed and Zamhatch day-old chicks to the local market as well as the export of surplus feed.
In addition to the stockfeed plant, Zambeef continues to make significant investments in the country, having injected US$16.5 million in capital expenditure in 2016 alone.
The company expects to spend a further US$21 million this year in investment in several high-return parts of the business, including growing its retail network, expansion of its dairy operations and Zamhatch hatchery as well as its operations at Masterpork.
Zambeef aims to be the most accessible and affordable food processor and retailer in the Central African region, delivered through the Group’s extensive retail and distribution network.
Mwata kazembe paul mpemba kanyembo being taken around the main arena during the umutomboko ceremony in mwansabombweMwata kazembe paul mpemba kanyembo being taken around the main arena during the umutomboko ceremony in mwansabombweKNOCKED!!!!!!!………… Not by a vehicle but few millilitres of highly intoxicating liquor popularly known as ‘JUNTA’ among the locals and bought with proceeds from a visibly packed wheelbarrow among the on Lusaka’s Freedom way road.Mwata kazembe paul mpemba kanyembo being taken around the main arena during the umutomboko ceremony in mwansabombwePresident Lungu being welcomed by Mwata Kazembe at his palacePresident Lungu meeting with Mwata Kazembe at his palaceParamount chief mpezeni with his impis arrive at the main arena to attend the umutom boko ceremony in mwansabombweMwata kazembe paul mpemba kanyembo being taken around the main arena during the umutomboko ceremony in mwansabombwe
Author of the Telling it Like it was Marita (l),Senior Culture Affairs Office Under the Minister of Tourism and Art Sylvia Mwando Assistant Nation for National Arts Council Mwichi Chikungu and Author Sydney Muponda during the double book launch at Lusaka Aaliance FrancaiseWorld Bank Executive Director for Africa Andrew Bvumbe is in the Country to monitor some of the world Bank funded projects. In the picture above, AFECC Chinese construction company working on Mwomboshi Dam in Chisamba District, Interpreter, Jack Gao shows the visiting ED the progress made on Mwomboshi Dam.Executive Director for Africa under World Bank, Andrew Bvumbe interacting with beneficiaries of housing Units which were constructed for displaced people to pave way for the construction of the Mwomboshi Irrigation Dam in Chisamba.This was when he inspected the housing Units .Part of the housing units that have been constructed for people that were displaced from their rightful place to allow for the construction of multi-million Mwomboshi Irrigation Dam aimed at promoting agriculture in the areaMwomboshi Irrigation Dam project is progressing well and might finish before the scheduled time of three years.In the picture, Mwomboshi Dam is shaping up wellSenior Culture Affairs Office Under the Minister of Tourism and Art Sylvia Mwando with Assistant Nation for National Arts Council Mwichi Chikungu during the double book launch at Lusaka Aaliance FrancaiseChieftainess lukwesa performing the umutomboko dance during the umutomboko ceremony in mwansabombwePrincess kanyanta and prince kanyembo performing the umutomboko dance during umutomboko ceremony in mwansabombweMwata kazembe paul mpemba kanyembo performing the umutomboko dance during the umutomboko ceremony in mwansabombwe Photos by Charles Banda ZANISPRESIDENT Lungu talks to 13-year-old Cosmas Mulenga, an art student of Fordina Pandeni Secondary School, at the on-going Luapula Expo in Mansa yesterday. PICTURE: EDDIE MWANALEZA/STATE HOUSE
Zambia is among 36 countries with more than 20% stunting.Stunting affects health, physical and cognitive development capacity as well as productivity in adulthood.It has been estimated that current levels of child stunting of 45% if unchanged in Zambia, will cost the country S$775m in productivity over a ten year period.
There are various interventions that have been initiated to scale up nutrition levels in order to avoid stuntedness by targeting in both pregnant and breastfeeding women.
One such programme is the Scaling-Up Nutrition (SUN) supported by six different partners and these are the UK Aid, Irish Aid, CARE, Sweden, Concern worldwide and Good Nutrition for a Better Zambia (NAZ)) with financial and technical support from the Food and Agriculture Organisation (FAO), and is being implemented in different parts of Zambia.The main focus being on the First 1000 most critical days of the child’s life.
Luapula province is one of the beneficiaries of this programme because of its stuntedness rate in growth standing at 56% and at national level standing at 45%.
Out of the fourteen districts selected country wide, Samfya is one of the districts benefiting from the programme, where nine agricultural camps (six council wards and 11 health facilities found in these agricultural camps) were selected to run this programme.
A survey was carried out by a team that comprised of staff from Ministry of Health, Agriculture and Livestock and Community Development, Mother and Child Health.
The assessment showed that most mothers do not breastfeed their children exclusively for the first six months, half of the children are given water with salt during their first month of life, others are given food in addition to breast-milk from about three months onwards and when a child reaches six months breast-milk is inadequate.
The assessment showed that most mothers do not breastfeed their children exclusively for the first six months, half of the children are given water with salt during their first month of life, others are given food in addition to breast-milk from about three months onwards and when a child reaches six months breast-milk is inadequate.
The programme aims to reduce stuntedness caused by poor feeding programme for pregnant and breast feeding women and children of up to two years.
It has been discovered that the first 1,000 days in the life of a child are very critical in his growth thus, the call to bridge the gap by giving children improved complementary foods.
Lactating mothers and pregnant women need good nutrition to enable the born and unborn child develop and grow healthy.
A typical balanced diet, needs to comprise of energy (from nshima either cassava or maize meal), proteins (from fish, meat, beans, eggs), vitamins (fruits and vegetables) and minerals (iron, zinc, calcium) from small fish eaten whole, cowpea leaves, amaranthus and cassava leaves among others.
It was found that people think local foods are not high food value and are therefore not the best but rather packaged foods from supermarkets are perceived to be the best.Soft drinks and chips are considered treats.
With the proliferation of fast food outlets,there is a danger of Zambians consuming more unhealthy foods in place of health local foods.
Meanwhile Kawambwa District Commissioner Ivor Mpasa has appealed to the National Food and Nutrition Commission (NFNC) to introduce the 1st 1000 Most Critical Days Programme to Kawambwa.
Speaking when he officially opened a three day monitoring and evaluation workshop for Samfya District Nutrition Coordinating Committee members, Mr Mpasa said there is need for the NFNC to consider Kawambwa District when they decide to scale up the 1st 1000 Most Critical Days Programme to other districts in Luapula Province.
The Kawambwa DC also noted that the programme needs to focus on the aspect of mind set change as a lot of Zambian people have a lot of myths regarding nutrition for pregnant women and mothers.
Acclaimed auteur Christopher Nolan directs this World War II thriller about the evacuation of Allied troops from the French city of Dunkirk before Nazi forces can take hold. Tom Hardy, Kenneth Branagh and Mark Rylance co-star, with longtime Nolan collaborator Hans Zimmer providing the score.
PROS
Dunkirk gives an intimate look at what war is really like as opposed to the macho, over-the-top movies we are used to.
The dog fights (close combat between military aircraft) were a highlight of the movie.
CONS
The pace of the movie is slow at times.
The story’s three sections are told at different rates; the beach sequences take place over one week, the boat sequence takes one day, and the plane sequences take one hour. This can make the movie hard to follow if you are not paying attention.
FAVORITE QUOTE
Soldier:“Where are we going?”
Boat Captain:“Dunkirk”
Soldier:“I’m not going back!”
Boat Captain:“There’s no hiding from this, son. We have a job to do”
Soldier: “If we go there… we’ll die!”
Boy:“Dad is he a coward?”
Boat Captain:“No son ,he is shell shocked”
CONCLUSSION
Dunkirk is the latest directorial endeavor from Christopher Nolan. The Dark Knight trilogy, Inception, Interstellar filmmaker worked in the non-fiction historical genre for the first time.
Dunkirk is not your typical war movie, rather than heroics, the main focus is what men can endure. It is basically a study of people under immense pressure, from civilian rescuers getting in over their heads, to traumatized soldiers trying to survive. The movie is not character driven, instead the events tacking place are the vehicle. The names of the characters are largely irrelevant and some barely utter a word , but their actions speak much loaded and much deeper then there words could. That is the stark difference between Dunkirk and previous works by Christopher Nolan which prominently feature philosophical dialogue.
Dunkirk’s nerve-racking atmosphere is heightened by the ominous ambient score , the sound effects and deafening silence .
President Edgar Lungu chats with Mr Joseph Daka Maize Seed farmer of Mkushi farming Block during the Tours of Mkushi farms
Dear Friends and Colleagues,
Agriculture provides the main support for Zambia’s rural economy, and because of this, growth in the agricultural sector is the clearest avenue through which poverty reduction can be achieved in Zambia. Sixty seven percent of the Zambian population depend on agriculture, primarily through smallholder production for their livelihoods and employment. Zambia recognizes agriculture as one of the key priority sectors in achieving sustainable economic growth and diversification away from copper mining.
The Food Reserve Agency -FRA- recently made a decision to set the floor price of a 50 Kilogram bag of white maize at 60 Kwacha under the 2017 crop marketing exercise. The FRA further announced that it will restrict its grain purchase to 500,000 metric tonnes of grain as National Strategic Reserve (NSR) in line with Government policy guidelines and will no longer sell grain to millers who will be expected to buy their own grain. However, the FRA will enhance community sales and sell to vulnerable communities and favour programmes such as Disaster Management and Mitigation Unit, Correctional Facilities, Ministry of Education -home grown school feeding programme and hospitals.
The FRA’s original mandate was to establish and administer a national food reserve alongside private grain trade and to serve as a buffer stock to cushion grain price variability and provide liquidity in the grain market. Over the last two decades the FRA has engaged more actively in the market by exceeding its prescribed target, and has often bought more than double the prescribed quantity. In particular FRA usually buys above the market price for maize; and then sells maize to the millers at a subsidized rate. This FRA activity in maize marketing in Zambia is partly because of the Government’s desire to resolve the “food price dilemma” by ensuring that maize producers get a higher price, on the one hand while maintaining mealie meal prices at affordable levels for consumers, and particularly the vulnerable households.
A floor price is the lowest legal price a commodity can be sold at. Price floors are used by the government to prevent prices from being too low. Price floors are often used in agriculture to try to protect farmers.
For a floor price to be effective, it must be set above the equilibrium price. If it’s not above equilibrium, then the market won’t sell below equilibrium and the floor price will be irrelevant.
In the case of maize in Zambia the floor price is raised above the price set at equilibrium, so the demanders (consumers) aren’t willing to buy as much quantity. The demanders will purchase the quantity where the quantity demanded is equal to the price floor, while on the other hand, since the price is higher than what it would be at equilibrium, the suppliers (producers) are willing to supply more than the equilibrium quantity.
This creates a problem because there is less quantity demanded (consumed) than quantity supplied (produced) which is a surplus. If the surplus is allowed to be in the market then the price would drop below the equilibrium. In order to prevent this, PMRC recommends the following option for Government to consider:
Buy up all the surplus and sell it at a cheaper price. This often lead to subsidization of millers and re-sellers who do not pass on the full benefit of this subsidy.
Government can strictly enforce the floor price and let the surplus go to waste. This means that the suppliers that are able to sell their goods are better off while those who can’t sell theirs (because of lack of demand) will be worse off.
The Government can control how much is produced. To prevent too many suppliers from producing, the Government can give out production rights or pay people not to produce. Giving out production rights will lead to lobbying for the lucrative rights. If the Government pays people not to produce, this might create an influx of producers demanding to be paid.
They can also subsidize consumption. To get demanders to purchase more of the surplus, the Government can pay part of the costs. This would be a very expensive undertaking
In the end, a floor price has negative impact on society more than it helps. It may help farmers, but it only helps those people by negatively impacting everyone else and causing deadweight welfare losses.
Ministry of Agriculture budget allocations currently stand at 53.4% towards Farmer Input Support Programme, 17.3% towards Food Reserve Agency and 29.3% towards other expenditure. Given Zambia’s current fiscal position and widening budget deficit, PMRC recommends limiting FRA’s role to purchasing strategic reserves, and following prescribed quantities and areas of purchase. We further urge the government to strictly supervise and increase maize sales to rural communities as opposed to commercial millers in a bid to enhance activities of small scale millers in order to provide cheaper alternatives for these communities that are mainly characterized by poor households. Given the huge costs incurred by the government in subsidizing maize, it is prudent that government re-directs some of its efforts and resources from FRA to key drivers of growth in the agricultural sector that include livestock production, disease control measures, extension service and agricultural research and development. These measures should ultimately lead to de-regulation of the maize market, save government resources and enhance production in sectors of agriculture such as livestock and fisheries whose potential remains untapped and demand unmet by local producers.
Ms. Bernadette Deka
Executive Director
PMRC Zambia
On 28th July 2017, we released the preliminary findings of our research into what the true debt position of Zambia is. We have received lots of useful feedback after many Zambians interrogated the figures we presented. As we stated in our original writeup, we did not claim perfection and we acknowledged that there could be gaps in our findings, factors we overlooked or information we left out. This second article aims to address these points.
We have uncovered more loans than we listed previously. However, rather than list all the loans as we did before, we decided to take a different approach. We have taken the total of all new loans by year from the Annual Reports on the Ministry of Finance (MOF) website. We have then listed and totaled up the loans for 2017 (thus far) and added to the MOF figures. The amounts from MOF include the $3 billion of Eurobonds which we had erroneously left out of our earlier analysis.
Due to the change of government in 2011, we have left out any new loans contracted in that year because the Patriotic Front (PF) government only ruled for the last 3 months of the year and in any case, new loans in 2011 only amounted to $504.8 million, half of which was for the Mongu-Kalabo Road as per MOF report. We took the final external debt figure for 2011 as at 31st December 2011 and added it to the new loans thereafter. The 2011 external debt, as reported by the IMF 2015 Debt Sustainability report for Zambia, was $3.5 billion (15% of $23.5 billion GDP in 2011).
ADDITIONAL NEW EXTERNAL DEBT BY YEAR
2012: $1.31 billion
2013: $1.25 billion
2014: $1.58 billion
2015: $2.21 billion
2016: $3.46 billion
2017: $4.20 billion (estimated; breakdown further below)
2011: $3.50 billion (cumulative external debt stock from previous government)
EXTERNAL DEBT TOTAL: $17.5 billion (2017)
EXTERNAL DEBT SERVICING
MOF Annual Reports show total debt servicing of the principal amount at only $688 million between 2012 and 2016, with $748 million in interest payments (see below). MOF reports show $9.8 billion in new additional loans between 2012 and 2016 (see above), but show the debt stock in 2016 at only $6.9 billion (up from their own questionable figure of $2.0 billion in 2011), meaning that external debt increased by only $4.9 billion. This seems very suspicious because $2.0 billion plus $9.8 billion of new debts less $0.688 billion in debt servicing should produce $11.1 billion at year end 2016. There is a massive $4.2 billion discrepancy between $11.1 billion and $6.9 billion that needs explaining by the Finance Minister, not to mention that their external debt figure of $2.0 billion in 2011 is different from the IMF/World bank figure of $3.5 billion.
($17.5 billion less $0.888 billion principal amount debt servicing)
LOCAL DEBTS
The Finance Minister stated in Parliament that the domestic debt stock stood at K38.6 billion and domestic arrears were K17.4 billion. Adding these two figures produces K56.0 billion. The exchange rate in May 2017 was K9.30 per Dollar. Therefore, the K56.0 billion local debt based on government securities plus arrears as of May 2017 is at least $6.0 billion. In December 2016, Mr Mutati revealed that K8.7 billion was owed to local contractors which is $840 million using the exchange rate at the time (K10.36/$1.00).
LOCAL DEBTS TOTAL: $6.84 billion
NET DEBT GRAND TOTAL: $23.4 billion ($16.6 billion + $6.8 billion)
INTEREST ON LOANS
Our earlier article did not mention interest on the loans because we wanted to simplify things and deal with the interest in a follow up article. Debt repayments are estimated at $2.0 billion from 2012 to 2017 of which $1.15 billion (57.5%) is interest. Many of the loans are provided by China and are long term (15-20 years) with interest rates as low as 3% (eg China Exim Bank). World Bank loans are among the cheapest at 0.5% and also long term. The Eurobond loans are in the region of 5%-10% while other loans are interest free.
It is a huge challenge to estimate the total interest to be paid on the net external debt of $16.6 billion, especially since the interest rates vary so much from loan to loan. Data on the rates for each of the loans is difficult to find. A very conservative interest rate of 3% per annum over 10 years adds $2.6 billion in interest, 15 years adds $4.0 billion and 20 years $5.5 billion. This assumes all payments are made on time. Delays in repayments attract penalties which can quickly balloon the debt considerably. Matters are further complicated by contracting new loans in future, refinancing, and debt write-offs. What is certainly clear is that interest will add billions to the $23.4 billion net debt.
SOURCES OF INFORMATION
We have endeavoured to cite from a wide variety of sources (see list below). This has included official sources like Ministry of Finance, state media and other reputable sources such as Reuters and World Bank. We hope to remove any accusations of bias and questions on reliability of information.
SECRET LOANS
It did occur to us that there may be secret loans potentially running into hundreds of millions of Dollars for the defence forces and intelligence services. We shall not speculate on these.
PAYBACK DUE TO FASTER ECONOMIC GROWTH
Some have made the argument that the loans will spur economic growth and therefore going to make repayments easier and faster. This is certainly partly true, especially loans meant for business and key infrastructure like roads and railways. However, many loans are used for political and not economic reasons. For example, roads are often built in areas where the economic activity cannot justify them. They never pay for themselves and are subsidized from taxes.
Calculating whether the positive effects of the loans will lead to pay back in good time is not easy. Some of them are for things like health, sanitation and environmental matters which do not directly generate revenue. We believe that the Zambian government has gotten too many loans too quickly which shall lead to another debt crisis further down the road. We shall discuss this in more detail in due course.
DISBURSEMENTS OF LOANS
Others say that the government in its tabulation of the $7.2 billion figure uses actual disbursements received for the external debt stock figure. Such a method of computing the debt is not only disingenuous, it still does not change the total amount signed for, and for which interest has to be paid. After you sign for a loan, it becomes a liability, unless the lender fails to remit funds. In any case, loan disbursements are normally given fairly quickly within the same year of signing the agreements so that the lender begins earning interest. It is not in the interest of lenders to delay disbursements.
BREAKDOWN OF 2017 LOANS
The following is the list of the major loans obtained in 2017 that make up the $4.2 billion figure above. These are the ones we were able to trace.
LIST OF MAJOR LOANS (2017)
1. Lusaka de-congestion: $286 million
2. Communication towers: $280 million
3. Chipata-Serenje railway line: $2.3 billion
4. 2,000 Military Houses: $157 million
5. International Development Assistance programme: $600 million
6. Rural roads project (World Bank): $200 million
7. Digital migration: $273 million
8. Fish industry: $50 million
9. Rural energy (World Bank): $26.5 million
10. Legume-based farming: $30 million
2017 LOANS TOTAL: $4.2 billion
NEW LOANS CURRENTLY IN NEGOTIATION (ESTIMATES)
316km Lusaka-Ndola Dual carriageway: $500 million
70km Ndola-Mufulira road: $80 million
Miscellaneous infrastructure development projects: $8 billion (already applied for)
POTENTIAL FINAL NET DEBT: $31.9 billion in 2017 ($23.4 billion + $8.5 billion)
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SPECIAL NOTE: REBASING OF THE KWACHA IN 2013
We are grateful that some people correctly pointed out to us that the Kwacha was rebased in January 2013. Two of the figures we quoted in our earlier writeup for the period 2011 to 2012 were converted from the Kwacha equivalent into US Dollars. These were the poverty reduction loans that were K65.5 billion and K32 billion. We reported the US Dollar equivalent as $13.5 billion and $6.7 billion. We have found that the US Dollar equivalent of the two figures were incorrect because the Kwacha amounts were in the old currency which was 1,000 times greater than the rebased Kwacha. The correct amounts are $13.2 million and $6.7 million at the exchange rate of K4,850 and K4,770 per US Dollar respectively.
