Lusaka Economist Noel Nkhoma says there has not been any significant improvement in the productive sectors of the economy to justify the recent sharp appreciation of the Kwacha.

Since January 2016, the Kwacha has gained by as much as 20 percent against the US dollar after slumping 42 percent in 2015.

But Mr Nkhoma said it is incorrect to attribute the Kwacha appreciation to Government’s austerity measures.
He said the truth is that Government is still spending on all areas adding that the only marked slowdown has been on infrastructure development programmes.

Mr Nkhoma explained that the slowdown in infrastructure spending is mainly due to the fact that the treasury has run out of funds.

He was speaking when he phoned in to the Red Hot Breakfast Show on Hot FM.

“It is not true to say there has been any serious austerity measures that have been implemented since January. If they insist that austerity is there then we have not seen that because they have not announced any,” Mr Nkhoma said.

He added, “What is happening in the infrastructure development side is that the treasury is depleted and so they don’t have a choice but to slow down their spending. A number of foreign and local contractors have not been paid.”
Mr Nkhoma who is also former Economics Association of Zambia President said the other ley factor behind the Kwacha appreciation is the Bank of Zambia’s decision to deploy monetary tools through the Open Market Operations.

“What is happening is that the Central Bank is mopping out all excess liquidity and this is simply making it difficult for SMEs to access capital for their business and this has led to many SMEs closing down,” Mr Nkhoma said.

He observed that as much as the Bank of Zambia open market operations are necessary, the manner in which the operations are conducted is suffocating the economy.

“You need a balance. There appears to be a focus by the Government through the Bank of Zambia to chase a stronger Kwacha by they are forgetting that by doing so by the inducing inflationary pressure that makes it even more difficult for the SME to service.”

He added, “The truth is that the productive side of our economy is still very weak. There is nothing that can point to the fact that we have exported more since January.”

Mr Nkhoma who is now Chief Executive Officer of BetterNow Finance, an SME focused lender said there is no magic that has happened to justify the Kwacha appreciation.

“Although minimal, we cannot ignore that the US dollar has also weakened and most of other currencies in the region have also appreciated, take for example the Rand. It has also marginally gained against the US dollar. I think people are being economical with the truth by saying Government’s austerity is responsible for the Kwacha gains,” he said.

He added, “Unless Government is able to measure this same austerity, then we can be convinced, but for now there is nothing we could point out to.”

Meanwhile, Bloomberg reports that the Kwacha has gone from the world’s third-worst performance in 2015 to the best this year, outshining gold, silver and 150 other currencies and precious metals tracked by Bloomberg.
Further gains are in store as copper prices recover, according to ETM Analytics.

It says the Kwacha has benefited from an increase in metal prices, news of increased mining investment and proposed changes to mineral royalties seen to be more investor friendly.

“We continue to see the kwacha relocating with the copper price,” Gareth Brickman, an Africa analyst at ETM Analytics, said in a report on April 12. “There is still room for several percent’s worth of gains.”

Since reaching a seven-year low in mid-January, copper prices are up 11 percent and expectations are rising that Zambia will reach an aid deal with the International Monetary Fund after general elections scheduled for August.

Some Zambian companies have been converting dollars into kwacha fearing they could lose out on the rally, and tight monetary policy from the Bank of Zambia has also supported the currency by driving yields higher, Irmgard Erasmus, an analyst at NKC African Economics, said.

The kwacha gained 1.4 percent to 9.175 per dollar by 8:51 on Friday morning bringing its advance this week to 6.7 percent.

“In the short term, we see the currency strengthening, but the economic fundamentals of electricity shortages and drought still pose notable threats,” said Neville Mandimika, Africa strategist at Rand Merchant Bank in Johannesburg.

Cleo Ice Queen released her highly anticipated video “Turn up” . The song was produced by super producer Killa Beats “KB” and features Urban Hype.

Video shot by RedDot and directed by Ashtrey .

BY KAPA187

Zambian media entrepreneur Luyando Haangala-Wood, also known as Lulu to her fans ,features in the May issue of South African Magazine “Mamas & Papas”.  In it she opens up about her childhood struggles and how her parents’ fortitude paved the way for her determination to succeed in the media space.

May issue of Mamas & Papas Magazine is OUT NOW! Available in local Super Markets .

She had this to say on her social media page :

“Over a month i got a call with a request i definitely DID NOT expect. “Lulu we would love it if you would be cover story for Mamas & Papas MagazineSouth Africa”. This is stuff Dreams are made of. A big thank you to the team for sharing this Zambian woman’s story of her life as Mom, wife & Entrepreneur.
Thank you to my amazing glam team MaFashio & Diamantes Mobile Makeup for tirelessly working to make sure we had an amazing shoot.
Fortress MEDIA Photography thank you for great images always a pleasure working with you.
Woolworths Zambia thanks for the great wardrobe.
Tracy & Wezi you were a joy to work with.
#proudlyzambian #wekeepmoving #DagonMedia #LetGodLead “

BY KAPA187

U.S. Secretary of State John Kerry says the U.S. government in 2015 observed serious human rights problems in several areas in Zambia.

In a statement released by the State Department following its 2015 U.S. Country Report on Human Rights Practices in Zambia, Mr Kerry said the U.S government noted several instances in which Zambian government officials threatened to close, censor, or initiate legal action against radio, print, and internet media outlets over pieces considered to be critical of the president, government, or ruling party.

Mr Kerry also observed several instances in 2015 of violence against journalists by ruling party supporters.

“As stated in our 2016 press releases, we remain worried about political violence, reported as a serious human rights issue in this 2015 report,” Mr Kerry said.

The country-specific Human Rights Reports are documents the U.S. Congress, by law, requires the State Department to prepare annually and make public.

The reports cover internationally recognized individual, civil, political, and worker rights, as set forth in the Universal Declaration of Human Rights and other international agreements.

U.S. Embassies compile Human Rights Reports with help from host governments, local NGOs, and other members of civil society and use them to work with governments to improve their human rights records.
Mr Kerry said, “United States, of course, has its own human rights issues; the publication of the annual reports is intended to reflect U.S. commitment to the advancement of human rights around the world.”

He said, “The U.S. government in 2015 observed serious human rights problems in several areas in Zambia. The U.S. government also continues to be concerned over reports that police in 2015 used the Public Order Act to block opposition or other gatherings, citing a non-existent requirement for a permit to assemble, rather than legally required prior notification.”

The 2015 U.S. Country Report on Human Rights Practices in Zambia also documented other significant human rights problems during the year in further detail.

These included abuses by police, including reports of unlawful killings, torture, and beatings including Gender-based violence.

The abuses that the U.S government highlighted are the life-threatening prison conditions, arbitrary arrest, prolonged pre-trial detention and arbitrary interference with privacy.

They also expressed concern over displacement of landowners, Government corruption, Child abuse, trafficking in persons, discrimination against persons with disabilities and minority communities and Child labor.

The United States is however pleased to note the Zambian government’s increased support to the Human Rights Commission and the Prison Service Commission.

The government and people of Zambia also demonstrated a continued commitment to the humane resolution to the status of refugees in Zambia, whether through repatriation or local integration.

The United States is committed to working together with the government and people of Zambia to address human rights concerns in Zambia and globally.

That includes U.S. support for Zambian initiatives to promote the rule of law, press freedom, police professionalism, and other human rights issues.

“As we have stated, the U.S. government takes no sides in political debates, other than that of the Zambian people,” the report said.

A 27-YEAR-OLD robber of Solwezi has been sentenced to death by the Kitwe High Court.
Chainda Kapalu was facing one count of aggravated robbery for breaking into his former boss’s house, thumping her with an iron bar and robbing her of household goods.
This happened in Solwezi between January 19 and January 30, 2015, when Kapalu, while jointly acting with others unknown, stole property valued at K4,900, from Mary Malanji using extreme force.
Kitwe High Court judge in-charge Catherine Makungu said the prosecution had managed to prove its case and Kapalu deserved to die by hanging for what he did.
“In your defence, you said the complainant was your girlfriend but I have found it is impossible because the complainant is an old woman. I, hereby, find you guilty of aggravated robbery and I convict you accordingly,” Ms Justice Makungu said.