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Abductors convicted and sentenced to life imprisonment as prosection breaks new ground in fight against GBV

In a significant victory for the fight against Gender-Based Violence (GBV), the National Prosecutions Authority (NPA) has secured the conviction and subsequent sentencing of the perpetrators in the Abduction of 13 girls case to Life Imprisonment. The Lusaka High Court has sentenced James Bwalya Mulenga and Mathews Sikaonga for multiple offenses including Rape, Abduction, Aggravated assault with intent to steal, Assault Occasioning Actual Bodily Harm, and Grievous Harm.

The NPA’s legal team has displayed immense dedication and skill in achieving this ground-breaking outcome. Through the use of Victim Impact Statements during the sentence hearing, the NPA has set a new precedent in the prosecution of criminal cases. These statements shed light on the aggravating circumstances of the case and the profound impact the offenses had on the victims. Moreover, the NPA ensured that the identities of all the victims remained protected throughout the proceedings.

The successful prosecution of this landmark case underscores the unwavering commitment of the NPA in the fight against GBV. It reaffirmed their collective determination to eradicate violence against women and girls. The NPA said it remains steadfast in its mission to bring justice to victims of GBV and hold perpetrators accountable for their actions.

On October 3rd, 2022, the Zambia Police Service successfully rescued 13 girls who were held captive in a house in Lusaka’s Chalala area. The police had conducted a thorough investigation following Pamela Chisumpa’s abduction, leading to the arrest of five individuals connected to the case. Three were apprehended in Lusaka, while the remaining two were arrested in Kaoma, Western Province.

Reports later confirmed the capture of the remaining suspected abductors, Mathews Sikaonga and James Bwalya, as they attempted to cross into Angola. In a video circulating on social media, one of the apprehended abductors expressed remorse and apologized to the families of the kidnapped girls. He revealed their motive was financial gain, and they had planned to leave the country using the money they expected to obtain.

After the 13 abducted girls were rescued, the Ministry of Community Development and Social Services took charge of their welfare, providing them with a Place of Safety as mandated by relevant legislation. The survivors underwent medical examinations to assess their health status and determine the extent of their sexual exploitation and abuse. Although they were reported to be in good spirits, the traumatic experience necessitated trauma and psychosocial therapy as part of their healing process.

The Ministry collaborated with social workers, psychologists from Chainama Hospital, the gender division, and non-governmental organizations to ensure the survivors received necessary support during their stay in the Place of Safety. Reintegration efforts were also undertaken, with the young women being reunited with their families after undergoing psychosocial and mental therapy.

The NPA’s successful prosecution of the abductors serves as a milestone in the fight against GBV. It sends a strong message that such heinous crimes will not be tolerated, and perpetrators will be held accountable to the fullest extent of the law. The NPA remains committed to working tirelessly to protect the rights and safety of women and girls in Zambia.

King Mswati III to visit Zambia

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The Ministry of Foreign Affairs and International Cooperation has announced the upcoming State Visit of His Majesty, King Mswati III of the Kingdom of Eswatini to Zambia. His Majesty is expected to arrive in the country on June 30th and will stay until July 2nd, 2023. This visit comes at the invitation of Mr. Hakainde Hichilema, and is a reciprocal gesture following President Hichilema’s State Visit to Eswatini in June 2022.

During his stay, His Majesty King Mswati III and President Hichilema will engage in bilateral talks, addressing various issues of mutual interest at bilateral, regional, and international levels. These discussions aim to strengthen the historical and warm bilateral relations between Zambia and Eswatini, which are built on shared values and friendship.

The highlight of the State Visit will be the signing of several Memoranda of Understanding (MoUs) between the two nations. These agreements will cover key sectors such as Trade, Investment, Defence and Security, Energy, Agriculture, Arts and Culture, and Forestry.

On July 1st, 2023, King Mswati III will travel to Ndola, where he will be the esteemed Guest of Honour at the 57th Zambia International Trade Fair. This event underscores the significance of trade and economic collaboration between Zambia and Eswatini, and highlights the importance of partnerships in accelerating trade and investment among African nations.

The Kingdom of Eswatini has proven to be a valuable partner for Zambia in various fields, including Tourism, Culture, Trade, and Agriculture. The visit by His Majesty King Mswati III presents an excellent opportunity for Zambia to further consolidate its partnership with Eswatini, fostering pragmatic cooperation to achieve common development aspirations.

His Majesty’s visit will conclude on July 2nd, 2023, after a tour of the Lusaka South Multifacility Economic Zone. This visit to the economic zone will provide King Mswati III with insights into Zambia’s economic potential and investment opportunities, further reinforcing the ties between the two nations.

Illegal gold miners advised to acquire licenses

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Kapiri Mposhi District Council Chairperson, Brilliant Munyeke has advised people doing mining in the district to acquire necessary mining permits.

Mr Munyeke said the local authority has observed an increase in illegal mining activities across the district where people are illegally extracting minerals that include manganese, copper and gold.

The Council Chairperson noted that the illegal mining activities were not only endangering lives of people, mostly youths engaged for work but also resulting in loss of revenue by government as the mining activities were not licensed and documented.

Mr Munyeke said this when he and Kapiri Mposhi District Commissioner, Francis Hasalama led a team of security personnel to an illegal gold mining site in Chief Mukonchi’s Ilungu area where a named traditional leader from Mkushi District is linked to the illegal gold mining activities.

“We are not happy as a district and local authority and we are not going to tolerate these illegal mining activities. We just want to advise all those doing mining to obtain the required documents for mining. We are not against the issue of mining. And as a country we are losing a lot from these illegal mining activities,” Mr Munyeke said.

Mr Munyeke noted that the mushrooming illegal mining activities were also contributing to environmental degradation in the district’s forests as they were not regulated.

And Kapiri Mposhi District Commissioner Francis Hasalama said government was disturbed to learn that a named chief from Mkushi District is involved in the illegal gold mine in Chief Mukonchi’s Ilungu area.

Mr Hasalama advised the traditional leader to stop the mining activities and help the government in managing natural resources for optimum benefits for the people of Zambia.

The DC stressed that traditional leaders should not be seen to be at the centre of committing illegalities.

” All these mining activities going on here are orchestrated by this chief and I would not like the chief to be the first person to contravene the law and rules of the government instead of being in the same leadership with the government controlling and protecting these resources for all to benefit,” Mr Hasalama said.

“Gold is a mineral that is controlled by the state so if anyone wants to carry out mining for gold they should get a license from the Ministry of Mines rather than doing it illegally,” Mr Hasalama added.

And the local people have called on government’s intervention to resolve the matter.

Headwoman Spaida, Lizzy Chilekwa said the named chief had come to the area with an excavator claiming the area where he was to do mining fell in his jurisdiction.

“He claimed it was his land and said he can do anything with it so he mobilised people and they started mining even after reminding him that he had encroached into chief Mukonchi’s area,” Headwoman Sipaida said.

The Headwoman said the area was rich in minerals that include gold, copper and manganese and has recently seen an influx of people carrying out illegal mining activities.

“As local people we want to be helped through cooperatives so that we can also benefit from mining but government should come in to make sure that anyone doing mining here has a license,” Headwoman Sipaida said.

The mining site was found deserted when Mr Hasalama and a team of security personnel visited the area.

Hichilema ,Ruto in Paris: Who made more sense?

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This week, a video of Kenyan President William Ruto speaking at the just ended meeting in Paris went viral across Africa.

In Zambia, in addition to that video, the government communicators also circulated a second video of Mr Hakainde Hichilema speaking at the same meeting, obviously believing that Mr Hichilema said something impressive. This allowed us to compare what the two leaders said, but we will only point out one key difference between them for now.

While Mr Hichilema impressed Western leaders like Emmanuel Macron and others by urging “speedy” implementation of agreements and plans WITHIN the existing financial and political-economic architectures/frameworks and arrangements dominated and controlled by the West, President Ruto questioned these very structures and the power relations under which they operate, and how they favour the West and consign and confine Africa and the Global South to perpetual poverty, underdevelopment, and subjugation to the West.

As Ruto rightly illustrates, there can be no meaningful global development and redressing of the existing global inequalities without dismantling these structures. No amount of debt restructuring or even cancellation can address this.

In a nutshell, therefore, Mr Hichilema impressed the West as usual, but President Ruto and others, like South Africa’s Cyril Ramaphosa, held their own weight and spoke truth to the West in ways Africa’s leaders should.

By circulating Mr Hichilema’s speech pandering to the West, the UPND have managed to mislead some of their supporters and a few uncritical minds. But the more alert of our people know the importance of understanding what Mr Hichilema and other African leaders said in Paris within the right political-economic context in which Africa continues to suffer from historical and ongoing injustices and inequalities.

Only a leadership that refuses to accept the current Western-designed global order will begin to lift Africa out of these unequal relations; the poverty and underdevelopment they perpetuate. What Mr Hichilema is saying to impress the West has been said before by many leaders before him who, like him, saw the West as saviours and superiors, but this only tightens the chains that Africa should be breaking free from.

So, when supporters were mobilised to welcome and cheer Mr Hichilema as he returned from Paris, the UPND and its leadership must realise that development has never been delivered by any such theatrics and sycophantic behaviour.

Fred M’membe
President of the Socialist Party

ZBA Scouting For K1.4 Million For African Junior Basketball Championship Outing

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The Zambia Basketball Federation is looking for K1.4 Million to send the National Under-16 Boys and Girls teams to the Junior African Basketball Championship next month. Seek

The two teams are scheduled to compete in the Junior Afrobasket in the Tunisian city of Monastir from 13 to 23 July.

Federation President Maziko Phiri said the money is for air tickets and accommodation for members of the two teams.

Phiri said the federation has engaged the Government through the Ministry of Sport on the matter.

He appealed to the corporate world and other well wishers to financially help the federation send the junior teams to Tunisia.

“We want to appeal to the public and to the corporate sector to come through for us and see how we can send these children to Tunisia,” Phiri told Radio Icengelo Sports by phone.

He added:”We need to compete in international games to grow our sport.”

The event will serve as qualifiers for next year’s FIBA under-17 World Cup finals.

Zambia to get first LPG power plant

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Zambia is to set up its maiden Liquified Petroleum Gas (LPG) power plant which will generate up to 100MW to be added to the national grid.

The power plant will be developed through a joint venture company between Tanzania’s Taifa Gas Limited and Zambian consortium Delta Marimba Limited.

The US$100 million investment was announced simultaneously in Tanzania and Zambia by Taifa Group chairman, Mr. Rostam Aziz, and Delta Marimba’s representative, Mr. Padmore Muleya, respectively.

Mr. Muleya revealed that the power plant will be set up in northern Zambia, a strategic location from a gas logistics and supply perspective which also answers to the need for the geographical diversification of Zambia’s power generating assets.

“Zambia’s ambitious growth targets and the push for energy that is both competitively priced and environmentally conscious demand innovative solutions. This LPG-to-Power project fits this mold as it uses one of the cleanest thermal fuels available today, diversifies the country’s energy source mix, hence, contributing to de-risking our national energy portfolio and will open more opportunities for LPG-related power solutions,” Mr. Muleya stated.

LPG burns a lot cleaner than other thermal energy sources and releases much less carbon dioxide in comparison to diesel and coal, the other fuels for thermal power generation currently used in Zambia.

And Mr. Rostam Aziz credited Zambia’s favorable investment climate and the government’s policies for his company’s decision to invest in the Zambian power sector.

“Tanzania and Zambia share a profound historical connection, and there has never been a better opportunity to invest in Zambia. We are excited to contribute to Zambia’s energy landscape and foster closer ties between Tanzania and Zambia,” said Mr. Aziz.

This is the first major investment announced following Zambia’s US$6.3 billion debt restructuring agreement under the G20 Common Framework, an achievement hailed by both Mr. Aziz and Mr. Muleya as very progressive and a precursor of many large investments to flow into the Zambian economy like this one.

The 100MW LPG-to-Power project is expected to be executed and brought online within 24 months.

Taifa Gas is the largest LPG investor and infrastructure owner in Tanzania and East Africa.

It is involved in the entire LPG value chain from production to export. Its parent, the Taifa Group, has multi-million-dollar investments in power generation and other energy developments across East Africa and has also expressed interest to explore mining in Zambia, aside from energy.

Delta Marimba Limited is a consortium of Zambians that have come together to identify and participate in opportunities in the energy and resources sectors.

Stakeholders in Chinsali call for amendment of Bill of Rights

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Stakeholders attending a two-day workshop organised by the Human Rights Commission in Chinsali in Muchinga Province have called for the amendment of the current Bill of Rights.

The workshop that was successfully held at Katachi Lodge, attracted stakeholders from different government departments and faith-based organisations that are in support to have the Zambian Bill of Rights amended.

One of the participants Eliot Mabuda says there is a need to amend the Bill of Rights as it is outdated and contradicts the current Constitution of Zambia.

Mr Mabuda noted that some articles in the current Bill of Rights do not support gender equality and it is difficult to understand.

“There is a need to simplify the Bill of Rights for citizens to understand it clearly without any interpretation,” he added.

He said the Bill of Rights in its current state does not speak to what is on the ground and the needs of citizens, especially that the world has evolved.

Another participant Sofia Zyambo, who is also in support of the call to amend the Bill of Rights, said the Bill should equally focus on women and children.

Ms Zyambo said women ought to be respected and enjoy the same rights as men in society, but the Bill of Rights that is in place is limited in scope and depth.

Meanwhile, the Human Rights Commission has called for the enactment of a law that criminalises torture in s bid to curb the crimes and violations of human rights that are committed during the process of torture.

Speaking in an interview with the Zambia News and Information Services (ZANIS), Human Rights Commission Spokesperson Mweelwa Muleya said the law on torture only favours certain people, especially prominent figures which he said should not be the case.

He explained that although the Constitution under Article 15 prohibits torture, there is no enabling law that defines torture and prescribes penalties for perpetrators once a crime is committed during the act of torture.

“There are times when suspects have been wrongly handled by law enforcers and all they get is a mere charge of assault which has very low penalties compared to the seriousness of torture,” Mr Muleya said.

And Mr Muleya has urged for the need to amend and expand the Bill of Rights so that it is in line with the United Nations Human Paris Principles.

The Human Rights Commission Spokesperson stated that the amendment of the Bill of Rights is in the best interest of the country as it will protect citizens.

He pointed out that the inclusion of social, economic and cultural rights is critical to the wellbeing of citizens.

In 2016, the attempt for Zambia to have the Bill of Rights amended and expanded through a national referendum failed as it could not meet the 50 percent threshold of eligible voters as required by Article 79 of the Constitution.

LAZ Condemns Appalling Police Brutality and Abuse of Citizens in Zambia

In a scathing denouncement, the Law Association of Zambia (LAZ) has expressed its outrage over recent incidents of police brutality and the deplorable treatment inflicted upon citizens and members of the Opposition. LAZ President, Mr. Lungisani Zulu, issued a statement highlighting the disturbing acts of violence perpetrated by the police.

Notably, LAZ condemned the vicious torture endured by Amb. Emmanuel Mwamba, former Permanent Representative to the African Union, as well as Rizwan Patel, a PF Petauke official, and Given Phiri, a co-accused individual linked to Dr. Christopher Zumani Zimba, former State House Special Assistant for Politics.

However, the condemnation didn’t stop there. Mr. Zulu also took aim at the insensitive remarks made by Inspector General of Police, Raohaesl Musamba. Musamba’s callous statement, which implied that the Opposition should comply with his officers or face the use of “minimum force,” was met with unequivocal disapproval from LAZ.

Highlighting the legal context, Mr. Zulu stressed that such acts of torture and inhuman treatment are strictly prohibited under Article 15 and the Convention Against Torture and Other Cruel, Inhuman or Degrading Treatment or Punishment. He demanded that the Inspector General of Police take immediate action and implement remedial measures to address this deeply concerning trend.

LAZ’s condemnation represents a resounding call for justice and an end to the abhorrent treatment of Zambian citizens. The association’s fervent hope is that the authorities will swiftly address these violations and ensure the protection of human rights for all individuals within the country.

Government Takes Steps to Increase Women and Girls’ Engagement in Decision-Making

Vice President Mutale Nalumango has announced that the government, through its gender division, is intensifying efforts to promote the engagement of women and girls in the decision-making process. Recognizing the low levels of participation among women and girls in decision-making at various levels, Vice President Nalumango affirmed the government’s commitment to changing this narrative.

Highlighting the multi-sectoral approach implemented by the gender division, Vice President Nalumango emphasized the importance of involving women and girls in decision-making processes at the household, community, and national levels. The aim is to achieve gender parity and ensure that women’s voices are heard and valued.

Furthermore, the gender division has taken steps to address negative cultural norms that discourage women and girls from participating in decision-making processes. This includes engaging with traditional leaders, community members, and religious leaders to reset cultural attitudes and practices that hinder women’s involvement.

During her report on the committee on national guidance and gender, Vice President Nalumango acknowledged the progress made in creating a more supportive political environment for women. However, she noted that the representation of women in parliament has dropped from 18 percent in 2016 to a concerning 15 percent. The government is determined to rectify this decline and ensure greater inclusion of women in decision-making roles.

Vice President Nalumango expressed her optimism that the current political environment, which is increasingly favorable for women’s participation, will result in more women being brought on board to contribute to the country’s development.

A Nation is built through the efforts of many

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I have had plenty of commentary mainly from PF aligned characters disparaging the debt restructuring deal recently secured.

For the longest time, our biggest problem in Africa has been that nothing is ever good unless you are the one doing it.

Even the current folks in government in Zambia today are guilty of the same.

Our biggest problem, as Africans is selfishness – unmitigated self-centeredness and our inability to see how our individual selfish interests are better served within the collective good of everyone.

It doesn’t matter how you cut it or explain it, some deal is better than nothing – this debt restructuring deal is not going to cure all Zambian problems but it is certainly a small achievement within the greater project of national economic transformation.

Here is the reality : PF (ECL era) was perhaps the worst government in Zambian history.

However, Zambia actually changed in the period between 2010 & 2021.

Here is how – before that, you had about two major malls in Zambia – Manda Hill & Arcades shopping malls.

You had very few ATMs & most retail shops did not take ATM cards.

Before 2010, very few Zambians owned cars, satellite TVs and ate out, never mind going out to theme parks or outdoor activities.

If you are in your 20s, then in 2010, you would have been below a teenager & if you are in your 30s, then you would have been either in your early 20s or a teenager.

Given that the Zambian population is predominantly made up of people below 30, that means most of you perhaps have ZERO clue where PF found Zambia.

The point is PF, terrible as they were, actually did achieve something notable.

What the folks in government today did well was to take advantage of the facts that the overwhelming majority of Zambian voters were not old enough to know the difference between the Zambia of today and the Zambia before PF and they made it look like PF achieved nothing in the 10 years they were in power.

The point is, our Zambian politics has always been about refusing to acknowledge the good anyone else is doing because you are not the one doing it.

This can’t be in our collective interest – a nation is not like a business that is built by one man. It is built on the series of efforts by so many people over many years and generations.

In this case, UPND are actually doing something notable by attending to one of our pernicious issues – that of too much money being channelled towards debt servicing.

By GC Library

Government attracts US$700 million dollars investment from top Chinese companies

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Six top Chinese Companies have signed a Memorandum of Understanding (MoU) with developers of Zambia’s Multi Economic Facility Zone, China Jiangxi International Corporation based in Chibombo District, Central Province.

The signed MoU’s translates into 700 Million United States Dollars worth of investment.

The companies to set up businesses at the MFEZ include, China Engineering Company Limited, China National Nuclear Corporation Overseas Limited, Shanghai Jingsheg Auto Parts Limited, Jiangxi Fenglin Investment Development Company Limited and Xiameng Battery Technology Group Limited.

This development took place during the first ever Zambia Jiangxi Economic Corporation Zone Promotion conference held in Changsha District of Hunan province in China ahead of tomorrow’s official opening of the Third China-Africa Economic and Trade Expo to be held under the theme “Common Development for a shared Future”.

Zambia’s Minister of Commerce Trade and Industry Chipoka Mulenga who is leading the Zambian delegation at the expo and witnessed the signing ceremony, said Chinese Foreign Direct Investment in Zambia has been a significant factor in the country’s economic development.

Mr. Chipoka has since called for more investments from Chinese firms owing to Zambia’s sound Macroeconomic environment that offers both fiscal and non-fiscal incentives.

Meanwhile Mr. Mulenga has paid tribute to China for the role it has played in Zambia’s attainment of the debt restructuring program with the International Monetary Fund IMF.

3,000 health workers to employed – Masebo

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Government will this year employ 3000 health workers in order to address the human resource challenges faced by the Ministry.

Minister of Health, Silvia Masebo says Zambia has continued to experience frequent outbreaks of communicable diseases such as cholera, typhoid fever, measles, rabies and trypanosomiasis and shortage of manpower in the health sector remains a challenge in the fight of diseases.

Ms Masebo further said the country is at risk of public health threats from regional and global public health events.

Speaking when she officiated at the opening of the National Planning launch for the 2024 to 2026, Medium Term Budget Planning and the 2024 budget.

She said the government has been investing in public health security in order to ensure security of the nation against outbreaks and public health threats from various diseases and conditions.

The Minister said the country has been focusing on ensuring constant availability of essential medicines and medical supplies to all groups of society especially the poor and vulnerable groups.

She further stated that through an Increased drug budget from K3.4 billion to K4.6 billion to support procurement of medicines and medical supplies; and Procurement of 42,000 Health Centre Kits which are a backbone of primary health care supply chain to last for 12 months.

Ms Masebo said the Ministry has further initiated bulk procurements of medicines and medical supplies through UNICEF, UNFPA, UNDP and government to government procurement with the Egyptian Government to support hospital supply needs.

And Churches Health Association of Zambia Executive Director, Karen Sichinga said the 2024 to 2026 Mid Term Budget and 2024 plans are being developed at a time when the country is learning to live in a world with Covid 19.

He said the health sector should be realistic enough to adjust the health system to a World of Covid 19 which is an ongoing threat.Ms Sichinga in a speech read on her behalf by CHAZ Director Advocacy Planning and Development, Yoram Siame said the Civil Society Organizations is pleased to see that the Presidential directive on maternity infrastructure and water reticulation for all health facilities has started taking shape.

ACC Restricts K28 Million in Treasury Bills Suspected of Being Illicit Proceeds

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The Anti Corruption Commission (ACC) has taken action to freeze K28 million held in treasury bills, suspecting the funds to be proceeds of crime. ACC Director General Tom Shamakamba announced that an investigation is underway into an individual who suddenly came into possession of such a significant amount of money.

Director General Shamakamba made the announcement during the Zambia Fraud Symposium held in Lusaka today, organized by Stanbic Bank and the Bankers Association of Zambia (BAZ). The symposium serves as a platform for stakeholders to address and find solutions to issues related to fraud and financial crimes.

Meanwhile, Bank of Zambia Governor Denny Kalyalya expressed concern over the rise in Ponzi schemes, which are in violation of the Banking and Financial Services Act. These schemes operate without the required licenses and expose the public participants to potential liability. Dr. Kalyalya’s remarks were delivered by BOZ Deputy Governor of Operations, Dr. Francis Chipimo.

In his address, Drug Enforcement Commission Director General Nason Banda urged financial institutions to exercise caution and refrain from sharing confidential information with unauthorized individuals. He emphasized the existence of well-organized criminal networks and the importance of safeguarding sensitive data to prevent illicit activities.

Similarly, Leah Tembo, the Acting Director General of the Financial Intelligence Center, highlighted the need to assess risks involved in combating financial crimes. She emphasized the significance of allocating resources strategically to effectively address and mitigate these threats.

Newly qualified doctors struggling to make ends meet

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Doctors have expressed their concern for the difficult circumstances faced by their fellow colleagues who are volunteering as interns.After working tirelessly saving lives,some of the interns are unable to buy a meal when they are on call, which is a 24 hour shift.

Frustrated by the lack of support from associations such as the ZMA, RDAZ, and the government, these doctors are calling for their profession to find its own solutions to help these interns.

Recognizing that interns are the backbone of any tertiary institution, these doctors believe that it is incumbent upon them to find viable solutions. With over 3,000 interns currently working, many of whom are situated in townships, the magnitude of the issue cannot be ignored. To illustrate the potential impact, a simple calculation reveals that providing lunch for 100 doctors at any institution would only cost approximately K5000.

Furthermore, doctors are suggesting engaging with institutions to explore the possibility of providing at least one meal during on-call shifts. While acknowledging the challenges of lobbying the government, doctors are motivated by the Minister of Health’s statement that they have an opportunity to achieve more under the current leadership. By strategically presenting their case, doctors hope to secure support and resources to address this pressing issue.

The reality of a growing number of medical school graduates has resulted in limitations in immediate job placements.Doctors propose the implementation of an allowance for volunteering interns during their transition to full-time employment. This would provide some financial relief while interns wait for full recruitment opportunities.

Zambia to pay less following debt restructuring deal – Musokotwane

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Minister of Finance and National Planning Situmbeko Musokotwane says the debt restructuring agreement will enable the country pay its official creditors US$750 Million for the next ten years compared to the US$ 6.3 billion that was supposed to be repaid in the same period.

Mr Musokotwane says the agreement is a significant debt relief to the country as it will channel some of the resources in different sectors of the economy by embarking on developmental projects and investment programs that will be generating revenue for the country.

He noted that the previous contractual arrangements did not serve well for the country adding that close to 40% reduction of debt burden was recorded as a result of the postponement of repayments and a reduction in interest rates.

The Minister said this in parliament when he gave an official statement on the debt restructuring agreement.

“The postponement of payments through extended maturities will generate about US $5.8 billion in debt service savings over the period 2023-2031. Therefore, Zambia will be paying its official creditors about US $750 million only over the next ten years, compared to about US $6.3 billion that was supposed to be re-paid in the same period, under the previous contractual arrangements.

“In economic terms, or should I say considering the time value of money as described in the IMF’s Debt Sustainability Framework, the agreement delivers close to 40 percent reduction of our debt burden as a result of the postponement of repayments and a reduction in interest rates,” the Minister explained.

Mr Situmbekko added that the agreement with the official creditors has several benefits for the country adding that one of them is that It will generate US$5.8 billion in debt service savings which unlock resources that can be utilized for our developmental programs.

He explained that the agreement will also unlock extra funds from cooperating partners stating that this year both the International Monetary Fund IMF and the World bank will disburse funding to Zambia amounting to US$188.8 million and US$75 million respectively.

Mr Musokotwane said this will result in positive cash flow for the country as opposed to the situation without a debt restructuring agreement in place.

“It is true that debt servicing will resume in three years, the effect of the restructuring reduction in principal payable due to stretching the maturity as well as lower interest rates means that the annual cost for debt servicing will be very low. This means that Zambia will enjoy positive cash flow when one compares the debt outflows versus the debt inflows and the extra cash will be available for development,” Mr Musokotwane noted.

He said the agreement will also provide a pathway to restoring debt sustainability in the medium term, thereby leading to an improved macroeconomic environment in particular the impact on exchange rate stability should be tangible.

Mr Musokotwane further noted that some of the locally issued treasury bonds are bought by non-residents who bring in foreign exchange and that before the restructuring agreement was reached many new investors in the bonds held back their foreign exchange.

He said the government is keen on ensuring that the country should never find itself in a position of unsustainable debt accumulation adding that It is against this background that the Public Debt Management Bill was introduced in parliament which requires the executive arm of government to seek authority to borrow funds from the Legislature through the Annual Borrowing Plan.

“Allow me to express the government’s gratitude to all our official bilateral creditors for the favourable debt restructuring agreement that was reached on 22nd June 2023. Special thanks go to the Co-Chairs, France and China as well as South Africa who were the Vice Chair of the creditor committee. We are also indebted to the Paris Club Secretariat for their unwavering support. I would also like to extend our heartfelt gratitude to the International Monetary Fund and the World Bank that have stood with us during this period, “Mr Musokotwane stated.