Suspended MMD National Secretary Mwansa Mbulakulima has announced that the party will hold its national convention between 20th and 22nd of May 2016.

And Mr Mbulakulima has announced an unconditional amnesty within the party saying all those who were chased should come back and rebuild the party.

Speaking when he addressed scores of MMD supporters who were camped at the High Court grounds awaiting the clarification on whether the party was free to hold a convention Mr Mbulakulima said the initiative which was taken by Dr Mumba seeking interpretation of the party constitution paves way for the party to hold a convention as the courts have thrown out his case.

He explained that Dr Mumba made the job easy for the party after he went to the courts on his own volition and that the court told him that he had no reason to stop the party convention.

He said MMD was too big to let an individual ruin what a lot of people had worked so hard for and that members will not allow that.

He said the convention will go ahead whether Dr Mumba liked it or not because MMD was a democratic party and that structures should now start electing their officials in readiness for the national convention in May.

He rubbished assertions that the party did not have time to hold convention saying there was enough time between now and the general election further adding that Dr Mumba had delayed to announce the date for the convention so as to have an excuse of time.

And Mr Mbulakulima said all the people who had been chased away from the party were free to come back unconditionally.

He said the party needed all its members to come and participate in the rebuilding of the party and that any one was free to stand for any position at the convention.

In a statement, the EIU said although police presence in the affected neighbourhoods has been strengthened and there are few indications that the unrest will escalate further.

“We maintain our forecast that high inflation and a subdued economic outlook will heighten social tensions,” it said.

It said although the riots may have been triggered by the suspected ritual killings, high youth unemployment and rapidly rising cost of living have increased frustration among locals, especially youths.

“Many foreign nationals run thriving small businesses in townships and the central business district of Lusaka, and as ordinary Zambians grapple with a tough economic climate, hostility towards foreigners appears to have increased,” it says.

The EIU said the disturbances, the first larger-scale xenophobic attacks in recent times have tarnished Zambia’s credentials as a safe haven for refugees fleeing conflict in others parts of Africa.

“Normally a peaceful city, the incidents in Lusaka baffled the government and many residents. The authorities arrested over 250 people and warned of stiff punishments in an attempt to curb the violence and the riots,” it said.

Riots broke out in several Lusaka townships on April 18th and 19th after locals targeted foreigners in attacks of retribution following the deaths of at least six people in suspected ritual murders.

At least two people have been killed in the revenge attacks.

The spontaneous riots appeared to be a reaction to the police’s reluctance to reveal the identities of 11 suspects arrested in relation to the murders of six locals, who had had organs and other body parts removed, within two months.

The rioters had demanded that the police reveal whether those arrested in connection with the suspected ritual murders were all foreigners.

The foreigners targeted in the recent attacks, mainly Rwandans who have lived in Zambia since escaping the 1994 Rwandan genocide, sought refuge at police stations as rioting and looting of dozens of shops owned by both foreigners and locals spread to several densely populated residential areas of the capital. Prior to the unrest, residents had burned a police post to protest the failure to arrest the murder suspects.

Moody’s Investors Service (Moody’s) last night downgraded Zambia’s long-term issuer rating to B3 from B2 and changed the outlook to negative from stable.

According to the press release issued by the rating agency, the downgrade on the issuer rating was driven by greater-than-anticipated fiscal slippages in 2016 leading to material liquidity pressures and significant challenges to finance the budget deficit. and the prospects of further deterioration in Zambia’s debt matrix in a lower growth environment, with the government debt likely to exceed 60% of GDP by 2018.

According to the press release, the negative outlook reflects the view that risks are skewed toward even greater fiscal slippages and slower fiscal consolidation, which creates uncertainty over the magnitude of the funding challenges and deterioration of Zambia’s debt profile over the rating horizon.

The Kwacha has suffered a marginal set back, having opened trading last week on a strong. The Kwacha is now trading at K9.25 up from last weeks K9.13 per $1.00

Below is the full press Release

Moody’s, Rating Action Press Release:

Moody’s downgrades Zambia’s issuer rating to B3 with negative outlook

London, 19 April 2016 — Moody’s Investors Service (Moody’s) has today downgraded Zambia’s long-term issuer rating to B3 from B2 and changed the outlook to negative from stable.

The downgrade on the issuer rating was driven by:

1. Greater-than-anticipated fiscal slippages in 2016 leading to material liquidity pressures and significant challenges to finance the budget deficit;

2. The prospects of further deterioration in Zambia’s debt matrix in a lower growth environment, with the government debt likely to exceed 60% of GDP by 2018

The negative outlook reflects the view that risks are skewed toward even greater fiscal slippages and slower fiscal consolidation, which creates uncertainty over the magnitude of the funding challenges and deterioration of Zambia’s debt profile over the rating horizon.

Concurrently, Moody’s has lowered Zambia’s long-term foreign-currency bond ceiling to B1 from Ba3, its long-term foreign-currency deposit ceiling to Caa1 from B3, and its long-term local-currency bond and deposit ceilings to Ba2 from Ba1.

RATINGS RATIONALE

RATIONALE FOR THE DOWNGRADE

Zambia’s credit metrics have deteriorated beyond Moody’s expectations since the agency downgraded the rating to B2 in September 2015. The negative trend in the credit metrics is expected to continue for at least two years, given the combination of shocks to the economy, the track record of missed fiscal targets and the absence of efforts to achieving sustainable fiscal consolidation. The downgrade to B3 is intended to capture this ongoing weakening of the government’s balance sheet and related liquidity risks.

FIRST DRIVER: GREATER-THAN-ANTICIPATED FISCAL SLIPPAGES LEADING TO LIQUIDITY PRESSURES

In 2015, Zambia’s fiscal deficit reached 8.1% of GDP, up from 5.6% deficit in 2014. Moody’s expects that without measures to rein in expenditures, the fiscal deficit will remain elevated and reach 7% or more of GDP this year. The notably higher-than-projected power deficit (1,000 MW vs. 560 MW estimated in September 2015) has already necessitated costly electricity imports while sharp depreciation of currency increased the need for fuel subsidies. These factors have contributed to large spending overruns, which, if continued, are estimated to amount to 3% of GDP for the year. Lower for much longer copper prices, together with rain shortfalls and electricity shortages, have led to subdued growth and put additional pressure on the budget through weaker revenue.

Zambia’s high funding needs in the coming months and years present a significant challenge for the government given the country’s relatively underdeveloped domestic capital market and reduced risk tolerance of international investors. Domestic borrowing costs have risen sharply over the past year with yields on 1-year treasury bills reaching 28% in March. These high domestic borrowing costs and the impact of a weaker currency on cross-border borrowings have given rise to interest payments consuming an ever larger portion of budgetary revenue. Interest payment-to-government revenue ratio will likely near 20% this year, up from 8% in 2013. The general increase in yield rates on Government securities was largely attributed to the higher than projected fiscal deficit and the tightened monetary conditions.

Zambia’s financing options in the international capital market are limited given the investors’ reduced risk appetite and the yield on Zambia’s ten-year government bond at 12%. While still above three months of imports, foreign exchange reserves declined to US$ 3 billion in 2015 despite the sovereign bond issuance that year. Moody’s projects that in 2016 forex reserves will fall to $2- 2.3 billion, below three months of imports.

SECOND DRIVER: RAPID DEBT ACCUMULATION AND THE PROSPECT OF FURTHER DETERIORATION IN DEBT METRIX

The second driver for changing Zambia’s rating is the expectation that public debt will reach 56% of GDP in 2016, notably above Moody’s expectation of 45-50% a year ago, and will rise above 60% by 2018. The government domestic arrears accumulated in 2016 point further to emerging debt sustainability challenges. While in 2015 kwacha’s rapid depreciation was a key driver of the rapid public debt accumulation, Moody’s expects the elevated fiscal deficits in 2016 and 2017, in combination with lower growth, to drive future debt-to-GDP accumulation, which is now close to median of B3-rated peers.

Although the government plans to reduce the fiscal deficit to 4% of GDP this year, in part by cutting capital expenditures, and adopt further consolidation measures in 2017, Moody’s believes that given the track record of missed fiscal targets, deficits are likely to remain higher than targeted.

Sustainable fiscal consolidation will be challenging against the background of persistent structural weaknesses, particularly electricity shortages, and low copper prices. Moody’s latest growth projections assume just 3-3.5% growth in 2016, compared to our forecast of 5.2% in September 2015. This puts additional pressure on the debt-to-GDP ratio. Moody’s projects a return to +5% growth after 2018, as it expects the electricity shortages to be much less pronounced, while mining is projected to rebound due to current investments and cost reducing measures.

The government has recently announced its plans to negotiate an IMF program, which would help not only with the liquidity challenges but also with putting public finance on a sustainable path. However, a formal agreement has not been reached so far. In Moody’s view, the process is likely to be prolonged and only take –off after the presidential elections scheduled for August this year.

RATIONALE FOR THE NEGATIVE OUTLOOK

The negative outlook reflects heightened uncertainty about spending in the run up to the August elections and uncertainty about the liquidity and funding position of the government over the next 12-18 months.

What could change the rating up/down

Downward pressure on Zambia’s rating could develop due to: 1) a further increase in electricity shortages or drop in domestic copper production that would cause a material impact on the government’s fiscal position or the country’s external position; or 2) larger-than-expected twin deficits and a strong upward trend in the overall debt burden; 3) a continuation, if not worsening, of liquidity pressure causing a further abrupt reduction of growth-supporting capital expenditures; and 4) a sustained decline in foreign currency reserves to below 2 months of import cover that amplifies the country’s external vulnerability to shock.

While an upgrade is unlikely in the near term, should the trends motivating the negative outlook dissipate or reverse in the next 12-18 months (for example, the fiscal deficit contracts to less than projected and in a sustainable way, uncertainty regarding government funding is reduced, and/or the current account returns to surplus), outlook could be stabilized. Zambia’s credit profile would likely remain in line with peers at the B3 level, including other commodity exporters, justifying a return to stable outlook.

Prompted by the factors described above, the publication of this credit rating action occurs on a date that deviates from the previously scheduled release date in the sovereign release calendar, as published on www.moodys.com.

GDP per capita (PPP basis, US$): 3,811 (2014 Actual) (also known as Per Capita Income)

Real GDP growth (% change): 3.2% (2015 Expected) (also known as GDP Growth)

Inflation Rate (CPI, % change Dec/Dec): 21.1% (2015 Expected)

Gen. Gov. Financial Balance/GDP: -8.1% (2015 Expected) (also known as Fiscal Balance)

Current Account Balance/GDP: -2.3% (2015 Expected) (also known as External Balance)

External debt/GDP: 42.6% (2015 Expected)

Level of economic development: Low level of economic resilience

Default history: No default events (on bonds or loans) have been recorded since 1983.

On 14 April 2016, a rating committee was called to discuss the rating of the Zambia, Government of. The main points raised during the discussion were: The issuer’s economic fundamentals, including its economic strength, have not materially changed. The issuer’s fiscal or financial strength, including its debt profile, has materially decreased. The issuer has become increasingly susceptible to event risks. Other views raised included: An analysis of this issuer, relative to its peers, indicates that a repositioning of its rating would be appropriate.

The principal methodology used in these ratings was Sovereign Bond Ratings published in December 2015. Please see the Ratings Methodologies page on www.moodys.com for a copy of this methodology.

The weighting of all rating factors is described in the methodology used in this credit rating action, if applicable.

THE Chawama Local Court has issued a restraining order against a Chilenje woman to prevent her from demanding sex from her former lover despite being divorced three-years ago.

The court issued a restraining order against Bertha Mwila, 35, in a case in which her ex-lover Andrew Musenge, 41, of Kabwata township sought the courts in order to help him in stop her former wife coming to his house.

Musenge told the court that when he and Mwila divorced in 2014, Mwila quickly remarried.

The plaintiff said that after a few months, Mwila’s marriage collapsed and that her husband deserted her.

He said that it was during this time when she developed the habit of coming to visit Musenge’s house with the gimmick of seeing the children.

He court heard that Mwila’s visit went beyond seeing the children. “She would seduce me and we ended up having sex,” he said.

“I think this woman only wants me to continue sleeping with her every time she comes to my house. I want this to come to an end,” he said.

He alleged that her former lover became furious after telling her that he wanted to remarry.

“Just after telling her that, Mwila started hurling insults on me and it was against this background that your honour I’m asking the court to issue a restraining order.

But Mwila told the court that Musenge was telling lies adding that he cannot force a grown up man to sleep with her.

In passing judgment, the court ordered Mwila to never been anywhere near Musenge. The court further said Mwila can only meet or be close to Musenge when she gets special permission to see her children.

Nkhani Yamu Sisi is a Zambian, trendy TV show, with hard-hitting yet respectful and progressive discourse, examining cultural and societal norms contrasted with a youthful spirit and the need for self-expression and desire to be part of a global community.

It is a place where friends and clients meet to interact and also catch-up on the latest scandals, as well as debate topics such as the marginalization of women, gender roles, and relationships.

The show is shot at a salon that is the equivalent of ‘Central Perk’, the coffee shop in the US hit sitcom Friends. With elements similar to the popular talk show, ‘The View’, Nkhani Yamu Sisi explores all issues relevant to women.

Nkhani Yamu Sisi is coming soon to DSTV Channel 160 Zambezi Magic . Follow them on social media for updates using the hashtag #nkahniyamusisi .Also visit www.dstv.com or www.zambezimagic.tv for more infomation .

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BY KAPA187

The opposition UPND through their lawyers Dindi and Company have written to the Electoral Commission of Zambia objecting to its intentions to award the tender to print ballot papers to a Dubai firm.

In the letter dated 19th April 2016, Dindi and Company said its clients, the UPND categorically objects to awarding the contract to Al Ghurair Printing company due to procedural impropriety.

It states that the ECZ did not conduct due diligence on this company adding that it the Commission did, it would have known that Al Ghurair Printing company and two other companies provided printing companies in the petitioned Uganda elections that saw the impugned victory of Yoweri Museveni held in that country on the 18th of February 2016.

“Whereas the Supreme Court of Uganda upheld the election outcome, nine Justices read out by the Head of the Supreme Court Bart Katureebe, said they had found valid evidence of electoral malpractices including late delivery of polling materials,” the letter read.

It continued, “That said, our clients object to subject the process of preparing and delivering ballot papers for the forthcoming elections in this country to any firm that participated in the Uganda elections which include Al Ghurair Printing company of Uganda.”
Dindi and Company said the UPND and the general citizenry are inundated with information that the PF top brass have savings account in Dubai and that there strong suspicious that these PF top brass are behind the bidding and awarding of the contract to Al Ghurair Printing company.
“These suspicions create an environment of mistrust whose effect is to poison the election atmosphere.”

It said the UPND demands that the ECZ writes off Al Ghurair Printing company from the shortlist failure to which legal proceedings to quash the Commission’s decision to go ahead with the said company will instituted.

“Our clients echo the clarion call issued by veteran and celebrated Diplomat Vernon Mwaanga that “insistence on printing ballot papers in Dubai against the will of stakeholders is poisoning the election atmosphere,” the letter read.