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Banks can spur economic development in rural areas

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Finance Minister Alexander Chikwanda delivering the 2015 budget
Finance Minister Alexander Chikwanda

Finance Minister Alexander Chikwanda says the banking sector has a critical role to play in enhancing development in rural areas in the country .

He said banks can provide the much needed funds and help harness the economic activities of the areas being opened up to development.

Mr Chikwanda said this when he officially opened the 34th National Savings and Credit Bank (NATSAVE) branch in Mpika District.

The event was attended by Chief Kopa of the Bisa people, Muchinga Province District Commissioners, Heads of Government Departments and scores of Mpika Residents.

Mr Chikwanda noted that the opening of a NATSAVE branch in the District will boost commerce and trade in the district which is at the centre of the province.

He said government will tirelessly work to uplift the living standards of the people especially those in the rural areas.

The Minister said government will also continue to support NATSAVE in their efforts to pioneer financial inclusion in Zambia.

And NATSAVE Managing Director Cephas Chabu said, NATSAVE, will provide affordable products and trade finances to the local people in the District.

The Mpika Branch brings the total number of branches opened across the country to 34.

NATSAVE is scheduled to open another branch in Kazungula in the next two weeks.

Meanwhile, Finance Minister, Alexander Chikwanda has advised Mpika residents to ignore and shun violent political parties during the 2016 general Elections.

The Minister said Zambia is a peaceful country and no one should destroy the peace the nation has enjoyed since independence.

Mr Chikwanda stated that President Edgar Lungu is a loving and peaceful man who should be support by the people of Mpika due to the many developmental activities he has initiated in the District such as the new NATSAVE branch.

Mr Chikwanda also condemned cadres from a named opposition political party behind the brutal attack on Vice President Inonge Wina’s residence in Nalolo District.

President Lungu directs DMMU to be proactive in disaster management

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DMMU Coordinator Patrick Kangwa shows round the affected area in Baulini to President Edgar Lungu and PF Lusaka Central Member of Parliament Guy Scot during the tour of the effected houses in Baulini
DMMU Coordinator Patrick Kangwa shows round the affected area in Bauleni to President Edgar Lungu and PF Lusaka Central Member of Parliament Guy Scot during the tour of the effected houses in Bauleni

At least five people including children have died in Lusaka’s Bauleni compound following heavy rains that swept through the area yesterday.

The dead include children, men and women leaving some injured after the rains swept through the compound late afternoon.

The heavy rains also caused damage to several houses belonging to ZNBC staff at Twin-palm transmitters’ compound, ZESCO transmission lines and other infrastructure.

with residents predicting that the poor weather will continue to cause more damage to mankind, private and public property.

President Edgar Lungu this morning inspected the damage caused by the rains and also visited the funeral houses for two bereaved families and Bauleni Clinic.

President Lungu who was accompanied by Deputy Minister in the Office of the Vice President Lawrence Sichalwe, State House Deputy Minister Mulenga Sata, Lusaka Province Minister Obvious Mwaliteta, former republican Vice President and PF Lusaka Central Member of Parliament Guy Scott and other senior government officials, regretted the incident.

Mr. Lungu said the havoc was a wakeup call and challenged the Disaster Management and Mitigation Unit (DMMU) including Zambians to be proactive and prepare adequately in addressing natural calamities.

Mr. Lungu warned against politicking on the Bauleni calamity and called for concerted efforts in addressing such calamities.

“It’s really sad but it’s a wakeup call for us. I don’t expect people politicking over this sad situation,” he said.

The Head of State directed Deputy Minister in the Office of the Vice President Lawrence Sichalwe to submit a comprehensive report to him this week.

Mr. Lungu observed that periodic maintenance was lacking by house owners, authorities of private and public institutions as well as DMMU officials.

Mr. Lungu also visited Bauleni Clinic to see victims including Bauleni Community Police Post where over 365 cases were reported.

Bauleni Clinic Medical Officer In-charge Esnati Banda informed the Head of State that the health institution has continued to receive victims of the rainstorm.

Ms. Banda said that the ablution block had its roof blown off by the heavy rains and appealed for assistance from government.

And in related development, heavy rains have extensively damaged Chikupi Catholic church in Kafue district.

PF Kafue MP and Lusaka Province Minister Obvious Mwaliteta confirmed the development to ZANIS in a separate interview.

The Minister narrated that a big tree fell on the church consequently damaging its infrastructure.

DMMU Coordinator Patrick Kangwa shows round the affected area in Baulini to President Edgar Lungu and PF Lusaka Central Member of Parliament Guy Scot during the tour of the effected houses in Baulini
DMMU Coordinator Patrick Kangwa shows round the affected area in Bauleni to President Edgar Lungu and PF Lusaka Central Member of Parliament Guy Scot during the tour of the effected houses in Bauleni
President Edgar Lungu comforting Mike Banda (L) one of the relative deceased Fades Banda the President who is accompany with his Special Assistant for Press and Public Relations Amos Chanda (r), State House Deputy Minister Mulenga Sata (2nr), DMMU Coordinator Patrick Kangwa (3rd r) and PF Lusaka Central Member of Parliament Guy Scot during the tour of the affected Houses in Baulini
President Edgar Lungu comforting Mike Banda (L) one of the relative deceased Fades Banda the President who is accompany with his Special Assistant for Press and Public Relations Amos Chanda (r), State House Deputy Minister Mulenga Sata (2nr), DMMU Coordinator Patrick Kangwa (3rd r) and PF Lusaka Central Member of Parliament Guy Scot during the tour of the affected Houses in Bauleni
President Edgar Lungu comforts Mike Banda (L) one of the relative deceased Fades Banda dead in the heavy rains whilst PF Lusaka Central Member of Parliament Guy Scot looks on
President Edgar Lungu comforts Mike Banda (L) one of the relative deceased Fades Banda dead in the heavy rains whilst PF Lusaka Central Member of Parliament Guy Scot looks on
President Edgar Lungu looking at the roof that has been blown of at Baulini clinic due to heavy rains in Baulini
President Edgar Lungu looking at the roof that has been blown of at Bauleni clinic due to heavy rains in Bauleni
Baulini Resident looks helpless and in pain on the House destroyed due to heavy rains in Baulini
Baulini Resident looks helpless and in pain on the House destroyed due to heavy rains in Bauleni
Baulini Resident renovete the roof after it was blown off due to heavy rains in Baulini
Baulini Resident renovate the roof after it was blown off due to heavy rains in Bauleni
Baulini Residents looking at the roof on the ZESCO after it was blown off due to heavy rains in Baulini
Bauleni Residents looking at the roof on the ZESCO after it was blown off due to heavy rains in Bauleni

Government raises minimum capital for insurance firms

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The Pensions and Insurance Authority has announced the increase in the minimum paid up capital for insurance companies and brokers in Zambia.

This is in line with statutory instrument 171 of 2015.

In a statement, PIA Registrar Michael Libinga said reinsurance companies are required to raise their minimum paid up capitals to K 20 million from the previous K 1 million.

Long term and general insurers are required to raise their paid up capital to K 12 million and K 10,000 respectively from K 1 million.

Brokers will also need to raise their paid up minimum capital from K 50,000 to K 100 million.

Mr Libinga explained that the transitional period for the entities to comply with the requirements of the Statutory Instruments shall be a period of two years from date of coming into force of the statutory instrument.

He said the move is targeted at a solid, competitive and sustainable insurance sector as it will strengthen the financial base of the sector.

Mr Libinga said capital forms the basis of financial strength for any insurance company and supports better risk management and market confidence.

Law schools to challenge ZIALE high failure rate

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PART of the 64 lawyers who were admitted to the bar during the Call Day for Petitioners in Lusaka
PART of the 64 lawyers who were admitted to the bar during the Call
Day for Petitioners in Lusaka

INSTITUTIONS offering legal education in Zambia are worried with the passing rate at the Zambia Institute of Advanced Legal Education (ZIALE) and are contemplating forming an association where such challenges could be resolved, Zambia Open University has observed.

Commenting on this year’s performance by law students in which only 18 out of 206 students who sat for exams have been admitted to the bar, Zambia Open University dean of law, Kalombo Mwansa, said the failure rate at ZIALE was worrying universities that were training law students seeking to be admitted to the bar.

Dr. Mwansa said there was need to find the root cause of the problem at the institution because it was unacceptable that such large numbers of students could be denied the chance to be admitted to the bar to meet minimum requirements to start practicing as lawyers.

He said that the universities were pushing for an association to which they could lodge their complaints and finding solutions to challenges that faced law training institutions and students.

“All law schools are worried by the results that are obtaining at ZIALE because students have continued to record poor results and because they are the ones which are training these students who are seeking to be admitted to the bar.

‘‘While there is a slight increase in the progression rate of students, the results do not reflect what we are expecting from ZIALE and that is why we are pushing for an association of law schools which can look into these matters.

“We feel that with an association for law institutions in place, we will be able to overcome the challenges we are facing and one of the challenges is that the students we are training are failing to graduate from ZIALE.

‘‘We are sure that if we have such a body in place, it can assess the problem at ZIALE and come up with solutions,” Dr. Mwansa said. He however expressed optimism that ZIALE would soon improve on its own as the institution had reportedly set up a committee to look into the reasons behind the continued poor results it was obtaining.

He observed that with such a committee in place, the institution should be in a better position to rectify the problem by coming up with tentative solutions.

“We hear ZIALE has set up a commission of enquiry or something like a committee that will look into reasons that are making students at the institution fail to perform better and we are sure that things may begin to change at that institution because its pass rate is worrying all of us,” he said.

ZIALE has come under heavy criticism from some sections of society which are calling on Government to take over the institution with the Zambia Direct Democracy Movement and the Zambia Republican Party charging that the institution was performing poorly because it had failed to achieve the minimum acceptable pass rate of any institution in the country.

Mealie Meal Price is still too high, says HH

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mealie meal2

MEALIE meal prices are still too high for poor Zambians to afford, UPND leader Hakainde Hichilema has said.

In an interview yesterday, Mr. Hichilema said it was unacceptable for the people of Zambia to be subjected to high mealie meal prices when the grain was sourced locally from small scale farmers.

He said there was no excuse why Zambians should be buying mealie meal at K80 in Lusaka and over K130 in rural areas and more in other far-flung areas.

“It shocks me how the PF is running Government. Look at the prices of mealie meal. They are still high when the grain is locally produced.

‘‘There is no way we should allow our people to starve as a result of failure to implement policies that help development of the milling industry,” said Mr. Hichilema.

Mr. Hichilema said Government should take steps to reduce wholesale prices of mealie meal now especially after directing the Food Reserve Agency (FRA) to sell their maize at a subsidized price.

He said failure by those in leadership to address the factors that lead to the increase of mealie meal prices, more Zambians would not afford the staple food which would result in widespread malnutrition.

“As at now I cannot see these high mealie meal prices go down. Although the gesture to offload cheap maize to the millers is welcome, Government should go further and look at the root causes of high prices of mealie meal in the country and address them. It is unacceptable for our people to continue being exploited,” he said.

Mr. Hichilema said it was disturbing that despite Zambian farmers producing maize for consumption and export, the price of the commodity was too high and unaffordable.

“When Government made a reduction of K4, Zambians were still failing to buy a 25kg bag of mealie meal when the price was at K50 before it was increased to K65. Zambians are failing to buy because most of them are unemployed and if employed are getting little salaries or slave wages,” said Mr. Hichilema.

He said Government should look at lasting solutions to the high prices of mealie meal rather than firefighting for solutions, adding that the PF administration should consider making farming as a profitable business with a readily available market not only for maize but also for all other farm produce.

“It is sad that we still import cucumbers and watermelons from South Africa when we grow our own here in Zambia. This is what Government should promote as a serious way of diversification.

“Let them give certain incentives to farmers who promote the growth of other crops. This can be done by Government revising the policy to buy out all their produce and this will reduce prices of mealie because people will not depend on mealie meal alone but other farm produce,” said Mr. Hichilema.

A check in most main super markets around Lusaka revealed that prices of mealie meal were still high.

Most super markets were selling a 25kg bag of breakfast mealie meal at between K75 and K80 while the same quantity of roller meal was going at between K60 and K65 respectively.

Sate -Sate, Lubambo headline CAF U23 team

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Fighton Simukonda has named midfielder Lubambo Musonda and striker Ronald ‘Sate-Sate’ Kampamba to his final 21-member list for the 2015 CAF Under-23 Cup that kickoff this weekend in Swbegal.

Kampamba of Wadi Degla in Egypt, who is heading to Belgium second division side Lierse on loan, and Lubambo of Gandzasar in Armenia are part of a quartet of foreign-based players who will travel for the tournament that will run from November 28 to December 12 and will serve as the Africa zone’s Olympic qualifying event.

Striker Patrick Ngoma of Al Ittihad in Egypt and shock last minute call-up midfielder Obby Chirwa of FC Platinum in Zimbabwe have also been selected.

Inactive Mamelodi Sundowns midfielder Mukuka Mulenga has not been picked.

Meanwhile, Power Dynamos duo of Larry Bwalya and Patson Daka who made waves earlier in the year in Zambia’s CAF Under-20 and 17 outings have ben axed.

Zambia, who depart for Dakar on Tuesday, will face Tunisia in their opening Group A match on November 28.

South Africa and hosts Senegal complete Group A

The top three finishers at the eight-team championship will represent Africa at the Rio 2016 Olympics in Brazil.

Team:

Goalkeepers: Toaster Nsabata (Zanaco), Kenny Mumba (Red Arrows), Lawrence Mulenga (Kabwe Warriors);

Defenders: Benedict Chepeshi (Red Arrows), Taonga Bwembya (Mufulira Wanderers), Boyd Mkandawire (Napsa Stars), Solomon Sakala (Kabwe Warriors), Benson Sakala (Power Dynamos), Kapota Kayawe (Nkana), Billy Mutale (Power Dynamos)

Midfielders: Jackson Chirwa (Green Buffaloes), Paul Katema (Red Arrows), Salulani Phiri (Zanaco), Spencer Sautu (Green Eagles), John Ching’andu (Zesco United), Lubambo Musonda (Gandzasar, Armenia);

Forwards: Ronald Kampamba (Wadi Delga, Egypt), Patrick Ngoma (Al Ittihad, Egypt), Conlyde Luchanga (Lusaka Dynamos), Aubrey Chirwa (FC Platinum, Zimbabwe), Friday Samu (Green Buffaloes)

PF administration and IMF fail to agree on immediate rescue plan!

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President Edgar Lungu held meeting with An International Monetary Fund (IMF) team led by Tsidi Tsikata who is division chief African department in Washingston and Mr Tobis Nybo Rasmussen IMF Resident Representative in Lusaka at State house. Picture By Eddie Mwanaleza/State house.20-11-2015.
President Edgar Lungu held meeting with An International Monetary Fund (IMF) team led by Tsidi Tsikata who is division chief African department in Washingston and Mr Tobis Nybo Rasmussen IMF Resident Representative in Lusaka at State house. Picture By Eddie Mwanaleza/State house.20-11-2015.

By Kalima Nkonde

The Zambian Government and the IMF issued separate statements following the conclusion of the IMF mission to Zambia. It is apparent from the statements issued – which were rather vague, confusing to a layman, couched in economic jargon and spin – that no concrete road map was agreed as to how the Zambian economy was going to be rescued with the assistance of the IMF in the immediate future. This article will try to unpack the two statements for the readers to understand what the statements were not saying in a lay person’s language.

It is apparent from the IMF statement that they were not asked for any balance of payments support (money or loan) by the Zambian government and this inference can be made if one contrasts the statement that the Fund made in June, 2014 and the one they made on 20 November, 2015. In the June, 2014 statement, when Zambia was not even dire straits like now, the IMF issued a statement that was more upbeat, robust and with specifics. This is what the IMF said then,

“The IMF is working closely with the Zambian authorities to develop a plan that will anchor macroeconomic stability. Recent steep depreciation of the kwacha is raising inflationary pressures and expansionary fiscal policy which has created large budgetary imbalances. The authorities have requested the IMF team to return in early September to discuss an economic programme that can be supported by a fund arrangement.”

The IMF’s statement on 20 November, 2015 is as follows,

“It was agreed that the authorities and IMF staff remain closely engaged in the period ahead. The Zambian authorities undertook to conduct internal consultations based on the outcome of the mission, with a view to defining the forms and timing of engagement.”

It is apparent from the two statements that, whereas last year, the Government had committed itself to discussing a rescue package – although they subsequently chickened out and went for a Eurobond -currently, the Zambian Government is indecisive and clearly fearing the conditions that will come with IMF funding given their plans to spend big for the elections in 2016! But in absence of a bail out, the economy is likely to deteriorate further and will soon catch up with the government and they will have to bite the bullet and ask for cheaper IMF rescue package. The delay in agreeing to a rescue package will come at great cost to government in that IMF conditions are likely to be harsher for government than they are now. It would be very unwise for government to refuse the rescue plan now.

IMF assessment of Zambian economy

In its statement, the IMF was very categorical about the fact that economic mismanagement was the major cause of the problems that Zambia was facing, external shocks not withstanding. The Fund was clearly appalled by the fiscal indiscipline of the Zambian government when it observed,

“In recent months, the pressures on the economy have not only reflected the impact of external shocks but also waning market confidence. The fiscal discipline has been undermined by additional spending commitments that stand in contrast to lower than budgeted revenue.”

To put this in context, the IMF could as well been referring to the unbudgeted for expenditure like hiring jets costing over $300,000 as well as the creation of districts at the drop of a hat, the building of colleges and universities, starting national airlines, building roads leading to nowhere etc when we there is no money! The IMF’s expectation is that responsible economic managers are supposed to be cutting back expenditure and suspending certain projects in the light of reduced revenue but our government has not been behaving like that and it has been business as usual and this is the reason why the market has no confidence in it!

According to the Fund, the fiscal indiscipline is one of the major problems that the economy faces. In the IMF’s view, Zambia with all its endowments should not be having the current problems with better economic managers. The Fund feels, “Zambia with a record of peace and political stability and abundant natural resources remains a country with great potential to achieve strong and inclusive growth. The mission remains confident that with a resolute implementation of credible package of measures to lower the fiscal deficit will go a long way towards restoring market confidence, bringing stability to the economy, enabling speedy recovery in economic growth and ensuring debt sustainability.”

The IMF was, however, full of praise of the Bank of Zambia in as far as the management of the monetary policy of the country is concerned. According to the Fund, the Central Bank has tried its best to ensure that the Kwacha remains stable, inflation is kept in check and interest rates remain low but all these efforts are being undermined by the Government through reckless expenditure. In effect, what the Fund was saying in its statement is that as long as there is financial indiscipline, and the government engages in wasteful and unbudgeted for expenditure, Zambia should forget about a strong kwacha because measures by the Central Bank (monetary Policy) have to be complemented by fiscal discipline.

The Bank of Zambia Governor, Dr. Denny Kalyalya has been singing this song since he was appointed. He has stated from time to time that there is a limit to what the Bank of Zambia can do to protect the Kwacha without the assistance from the President or the Executive branch of government through fiscal measures! Nobody has listened to him. We have people in our current government who are so economically naïve like the late Idi Amin of Uganda, that they think Bank of Zambia can do some magic to protect the kwacha! They somehow do not understand the interdependency of economic policies and variables!

Zambia budget challenges as per IMF

The Government agreed with the IMF’s assessment of the economy and they shared the various policy measures required and their consequences. According to the IMF, the Zambian economy is in serious trouble and there is pressure on government with regard to the payment of bills in the light of reduced revenue and the continuous depreciation of the kwacha. The Fund noted “The mission and the Zambian authorities reached a shared understanding on the current economic challenges and the implications of alternative policy choices.”

In summary, below are the issues that are putting pressure on the government budget which are threatening to widen the budget deficit further and which both the Government and the IMF agreed on but although they must have differed on measures required to address them. The issues are:

  • The fuel bill has increased tremendously due to the depreciation of the kwacha and the government has not passed on this cost to the consumer yet and so Government is currently subsidizing consumers. Some action will have to be done at some point as it is not sustainable.
  • The importation of electricity is straining government coffers and the bill escalates with the depreciation of the kwacha. In the short term, there is very little that the government can be done about this
  • There are other subsidies especially on maize and farmers input which are also putting pressure on government coffers
  • Expenditure on infrastructure projects is also putting a strain on government revenue
  • Increased debt servicing costs of foreign loans especially Euro bonds which have grown substantially in kwacha terms due to the depreciation of the kwacha.

Government economic strategy after IMF mission

The Zambian government largely agreed with the IMF’s assessment of the economy, but if we are to be brutally frank, there is nothing new that the IMF has said which this writer, other analysts, commentators, Bank of Zambia, ZIPAR and Opposition parties have not pointed out before. Government didn’t listen!
The Zambian government’s statement through Cabinet Office stated that: “The Government shares the views of the mission and fully acknowledges that fiscal consolidation is paramount in ensuring the sustained macro economic stability, growth and poverty reduction.”

In order to simply the above statement for some readers who have no economic background, the term fiscal consolidation simply means putting measures for increased revenue generation as well as measures for cutting expenditure in order to reduce the budget deficit. In Zambia’s case, there is limited scope for revenue generation in the short term and so the focus should be on expenditure reduction.

We have all heard about this song of fiscal consolidation from government since the budget speech but unfortunately, our government will say one thing to day and do the opposite the following day! It follows that the pronouncements made by Mr. Fedson Yamba, the Secretary to the Treasury with regard to fiscal consolidation are hollow and nobody believes in them due to the government past record. There is no independent and objective technical expert including this writer who has any confidence in the PF administration implementing the fiscal consolidation policy measures.

The Government lacks credibility and neither the international investor nor the donors, let alone the IMF, believe there is political will to implement the policy. The credibility of fiscal consolidation will only come with an IMF supervised programme once the Government has obtained a loan from them like Ghana painfully found out. Ghana acknowledged that their home grown austerity measures lacked credibility among the international community and could not stop the free fall of their currency, the Cedi. International investors and Donors do not trust African governments to implement policies that are not politically expedient especially in an election year. The Zambian government may be thinking of trying to put in place some home grown austerity measures and avoid the IMF and look for funding elsewhere but their options are very limited.

If the government had agreed on a road map for a rescue plan, the following would have been the potential benefits of an IMF programme going forward once agreed upon:

  • Stabilize the kwacha through the balance of payments support thereby save kwacha from further depreciation and consequently forestall further escalation of inflation
  • Reduce or contain public expenditure resulting in the reduction of the budget deficit and thereby assist in the kwacha appreciation
  • Restore investor confidence and help in foreign direct investment inflows which have almost dried up and therefore assist with the kwacha appreciation
  • Facilitate the mobilizing additional revenue sources from multilateral institution and bilateral Donors. It is common knowledge that most donor countries will only deal with you when your economy in shambles if you are on an IMF programme.
  • Bring in better Public debt Management by carrying out credible debt sustainability analysis and strengthen risk management practices
  • Reduce exposure to contingent liabilities by minimizing the use of sovereign guarantees
  • Strengthen public financial management and restore budget credibility and avoid significant cost overruns

Conclusion and recommendations

The IMF has just confirmed the view some of us have had all along; which is that, the kwacha is not depreciating purely because of external factors. The kwacha has depreciated more than other currencies due to incompetent economic management which has in turn induced the lack of confidence by the market and consequently resulted in a run on the currency! One wonders how our politicians cannot understand that one of the basic factors that determine the value of the currency, is market confidence and sentiment!

It is a true that other currencies have depreciated as well due to the strength of dollar and poor commodity prices but not by 50%! Those that have done badly have depreciated by a maximum of 20% or so! The kwacha could have been in that range if we had good managers but our currency has depreciated by over 50% year to date! Crudely, one can say there is a premium of about 30% depreciation over and above normal currency depreciation purely attributable to mismanagement. Economic mismanagement in our context entails among other things, poor planning and risk management, policy inconsistency, irresponsible pronouncements on nationalization, price controls, exchange controls and so on and so forth!

The jury is out, now that the IMF has spoken. The two problems that the IMF has identified and which we can do something about as a country with nothing external about it are: lack of confidence by the market and fiscal indiscipline. There are measures that can be implemented and which are within the President’s control and have nothing to do with external factors.

I would recommend, therefore, that once the President and Cabinet have discussed the IMF report, he should hold a press conference. In that press conference, he should announce some brave and bold decisions which are the signs of the time, in order for him to address the country’s economic problems in the short term. This should include the following:

Announce far reaching cost cutting measures that even affects the Presidency and Ministers so as to show his seriousness and commitment to fiscal consolidation and also send a positive signal to the market

Suspend and cancel some expensive infrastructure projects especially the roads which we cannot afford!

Announce that Zambia is carrying out consultations with stakeholders regarding the recent proposals by the IMF mission. He should add that the country will soon re-engage the IMF and ask them for short term balance of payments support to stabilize the Kwacha and bring policy credibility and confidence to the market with the international community.

Make changes at the Ministry of Finance by honorably retiring Mr. Alexander Bwalya Chikwanda who has been indirectly asking to be retired! He clearly said he is too old to work and wants to rest in 2016 but now is a better time for him and the country! He has shown his frustration regarding the financial indiscipline in government by criticizing all his colleagues for their obsession of wanting to go on foreign trips even for a day purely to earn $500 per diem per day! All in all, he cannot possibly have the energy and motivation to enforce financial discipline at his age for an economy in crisis! Please be kind to him and save him the stress of the job at that age! We have seen that the old man has sent signals including his apparent lack of interest in the job by not being very proactive in seeking short term economic solutions for the country.

It would be a disaster for the Kwacha and the Zambian economy as a whole if the market confirms the rumour that Zambia has out rightly rejected the IMF rescue package. The decision to reject the IMF in our desperate circumstances can only be hailed by those who do not understand our current economic malaise. It may even have the opposite effect that the PF government may be thinking – by resulting in losing them 2016 election. There are tangible and intangible benefits of the IMF rescue package. The Ghanaians are not stupid to accept the IMF package! If anything, they have more smart people and are richer than us by virtue of their resources, population, better education system and being the first black African independent state! We supposed to learn from them. The IMF of the 1970s and 1980s is not necessarily the same as the 2015 IMF as the institution has undergone some reforms due to the criticism they received regarding the infamous structural adjustment programmes (SAP).

The writer is a Chartered Accountant by profession and a financial management expert. He is an independent and non partisan commentator. He has lived in the diaspora in England, South Africa and Botswana for over 25 years

Nevers Mumba Condemns Copperbelt Violence

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MMD President Nevers Mumba
MMD President Nevers Sekwila Mumba

As Movement for Multiparty Democracy (MMD), we wish to condemn in the strongest possible terms the violence that recently erupted on the Copperbelt involving the ruling Patriotic Front (PF) and the opposition United Party for National Development (UPND). We are greatly saddened that 51 years after independence, we still have people trading blows, machetes and firearms instead of words.

Just because we differ on the political scene does not mean we should be attacking each other. The high levels of hatred, bitterness and violence are very worrying and are incompatible with development and progress because how can people be thinking about how to move the nation forward towards prosperity if they are busy hacking each other? This is unacceptable.

The PF as the ruling party are supposed to show leadership because as the Bible says, to whom much is given, much is required. They should not let this spiral out of control and engulf the whole nation. It makes no sense for the PF to shift blame onto the UPND when they have power to control their own cadres and the Police. The UPND could have also behaved better and avoided the violence.

Zambians are not interested in violence. They want to coexist with each other in peace and harmony. They do not want to be teargassed and beaten by the Police. They do not want to see cadres from rival political parties beating each other. Zambians are fed up with this kind of Stone Age politics and demand more. Zambians are demanding for morality and integrity in politics.

Dr Nevers Sekwila Mumba
MMD President

HH Condemns attacks at Inonge Wina’s home

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HH greeting multitudes in Mongu
HH greeting multitudes in Mongu

UPND President Hakainde Hichilema has called on law enforcement agencies to fully investigate reports that some suspected UPND cadres attacked Vice President Inonge Wina’s family in Mongu.

Mr Hichilema said all culprits should be brought to book.

He was speaking at Kenneth Kaunda International Airport upon arrival from Western Province from his mobilisation tour.

‘We thank God for travelling mercies as we safely arrived back in Lusaka. On the alleged attack on Vice-President Inonge Wina’s family in Nalolo we call on law enforcement agencies to fully investigate the incident and bring culprits to book. We don’t condone any acts of violence, whether by UPND or any cadres and we condemn the incidence in the strongest terms,’ ,Mr Hichilema said.

He said the UPND have been victims of severe violence and they know how it hurts.

‘Even in Mongu some of our sympathisers were shot with live bullets by the police themselves , yet we had permits for all our meetings in the area,’ he said.

Mr Hichilema said a number of UPND supporters are currently in hospitals, with some having been transferred from Copperbelt to UTH in Lusaka because of the seriousness of their injuries.

‘Even in Mongu some of our sympathisers were shot with live bullets by the police themselves , yet we had permits for all our meetings in the area,’ he said.

‘As we have said before, we must love one another and remain peaceful at all costs. We seek leadership to better the lives of our people through robust economic transformation.’

He added, ‘And this is only possible if we work together and commit ourselves to living in peace and harmony. Looking forward to a great week and God bless you all.’

It will take at least three good rainy seasons to fill up the Kariba again-Dora Siliya

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President Edgar Lungu swears in Petauke member of Parliament Dora Siliya as Energy and Water Development Minister. The President has also sworn in Livingstone Central member of Parliament Lawrence Evans as Deputy minister of Livestock and Fisheries at State House on Friday 16-10-2015- Pictures By Eddie Mwanaleza/Statehouse.
Energy Minister Dora Siliya has revealed that the vast Kariba dam will not be filled up even if Zambia and Zimbabwe record normal rainfall in the current rainy season.

Ms Siliya said the Kariba will take more than three rainy seasons for it to me filled up to normal capacity.

She said the rainy season which has just started will do very little to raise the water levels in the Kariba dam.

Ms Siliya was speaking Sunday evening when she featured on ZNBC TV’s Sunday Interview programme.

The Lake Kariba dam stands 128 metres tall and 579 metres long on the world’s largest man-made lake and reservoir by volume.

‘I think we have reached a point where we need to be brutally honest with our people that this crisis will not go away tomorrow because even these rains we have experienced today (Sunday) in most parts of the country wont fill up the Kariba. We will not more than three years of good rainfall to fill up the Kariba.’ Ms Siliya said.

She said Government has since intensified power imports from Mozambique and is speeding up processes to facilitate the construction of inland power generation sites around the country.

‘We are currently spending colossal amounts of money on power imports and we are adding a further 100 Megawatts from Mozambique this December to cushion the problem but going forward we are concentrating on inland power generation through the construction of min hydro stations,’ she said.

Zambians have trust and confidence in PF and the leadership-Chama

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Davies Chama
Davies Chama

PATRIOTIC Front (PF) secretary-general Davies Chama says the ruling party is poised to win the 2016 general elections because of the trust and confidence Zambians have in President Lungu’s leadership.

Mr Chama said no amount of magic or witchcraft can make the opposition, especially the United Party for National Development (UPND), win next year’s elections.
He said this in Lusaka Central when he received 90 members of the UPND, MMD and Rainbow Party, who defected to PF.

Mr Chama said the party leadership is happy that the PF is still winning support from the majority of Zambians and that it will win next year’s tripartite elections as the case was on January 20 this year.

“I am happy that today we are receiving about 71 people from UPND, 16 from the former ruling party MMD and three people from the Rainbow Party. What is happening is a symbol to show that the party is growing from strength to strength.

“We are winning next year’s general elections because of what this Government is doing for the people. We are working on roads, we are constructing hospitals and schools and this is what the people of Zambia want and not just mere politicking,” Mr Chama said.

He advised members to remain united and to work extra hard in recruiting new members ahead of the 2016 general elections.

Mr Chama said it is important for members to explain the PF policies to the electorate as outlined in the party manifesto.

“As far as we are concerned, we are well positioned to win the 2016 general elections because people have confidence in our governance system as well as development programmes,” he said.

Mr Chama reaffirmed the PF’s commitment to delivering on its campaign promises.

He also said PF is implementing programmes and development projects in various parts of the country as promised during campaigns.

Mr Chama also appealed to members to accommodate newcomers into the PF for the party to grow because politics is about numbers.

He also described President Lungu as the best leader the country has ever had and appealed to Zambians to continue supporting him.

Yaluma tells Opposition not to politicise job loses

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Christoper yaluma
Christoper Yaluma

GOVERNMENT has advised opposition leaders against politicising the job losses in the mining sector because the lay-offs have been caused by low commodity prices on the international market, which have affected all copper-producing countries.

Minister of Mines and Minerals Development Christopher Yaluma said Government does not agree with the retrenchment of miners at some mining companies on the Copperbelt.

“We will never be at peace with the retrenchment of some miners because our campaigns were based on job creation and it is on this premise that President Lungu took the initiative to dialogue with mine owners and unions to minimise job losses,” he said.

The minister said in an interview yesterday that Government has been forced to accept minimal job losses to avoid closure of the mines because investors are incurring losses as a result of the low copper price on the international market and the energy deficit.

Mr Yaluma said Government has little influence on the low price of copper and that people should be able to understand such issues.

He said Government closely scrutinises mine owners who advocate massive retrenchments when they recorded profits last year at a time the copper price was high.

Mr Yaluma said the low copper price on the international market has not only affected Zambia but all the copper-producing countries worldwide.

Mr Yaluma said President Lungu’s administration should be commended on measures it has put in place to minimise job losses in the mines.

And minister of Labour and Social Security Fackson Shamenda has urged opposition leaders to offer solutions over job losses in the mining sector.

Mr Shamenda said in a separate interview that the PF government should not be blamed for the low copper price on the international market.

“Those who are criticising Government concerning job losses on the mines should consider giving solutions to avert more job losses on the mines if they have any,” he said.

He said those with solutions to the job losses in the mining sector should go to his office and share them for a better Zambia.

Mr Shamenda said critics should know that the job losses would have been worse if Government had not intervened.

He said the finances that some opposition political parties are using for politicking could be used for development programmes.

Mr Shamenda said mine closures have been the order of the day in other countries facing similar challenges but that this has not happened in Zambia.

Mubukwanu regrets clashes between UPND and PF in Mongu

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VICE President Inonge Wina (r) shakes hands with Southern Province Minister Nathaniel Mubukwanu shortly before leaving for Luasaka at Hurry Mwaanga Nkumbula International Airport in Livingstone. The Vice President was in Livingstone to officially open the International Conference on the Great Lakes Region (ICGLR) meeting of Ministers of Justice on domestication of ICGLR of protocols.
VICE President Inonge Wina (r) shakes hands with Southern Province Minister Nathaniel Mubukwanu shortly before leaving for Luasaka at Hurry Mwaanga Nkumbula International Airport in Livingstone. The Vice President was in Livingstone to officially open the International Conference on the Great Lakes Region (ICGLR) meeting of Ministers of Justice on domestication of ICGLR of protocols.

MONGU Central Patriotic Front (PF) Member of Parliament Nathaniel Mubukwanu has regretted the clashes between supporters of the ruling party and the opposition United Party for National Development (UPND) in the area.

On Friday, UPND and PF supporters in Mongu attacked each other’s secretariat and damaged property.

On Saturday, the police in Mongu managed to separate the supporters of the two parties who almost clashed.

Mr Mubukwanu has since called for co-existence and tolerance between PF and UPND supporters in Mongu as violence had potential to reach unmanageable levels.

Speaking in an interview in Livingstone on Saturday after seeing off Vice President Inonge Wina, Mr Mubukwanu said Zambia had enjoyed democracy for many years and hence there was need to promote peace and unity in the country.

“I can confirm that PF and UPND attacked each other’s property in Mongu. Regrettably the unrest experienced in Mongu was politically motivated.

“That situation is deeply regretted and we don’t want to tolerate it in democratic dispensation like ours,” he said.

Mr Mubukwanu, who is also Southern Province Minister, hoped that that the unrests were the first and the last ones where political violence reached high levels of seriousness in Mongu.

“I know there were sporadic incidences elsewhere but the Mongu one was very much regrettable and it was uncalled for.

“I do not have the mandate of UPND who were involved from the other side but speaking on PF, we have been peace loving party and people who have maintained law and order for many years. We would like that spirit to be embraced by everybody,” Mr Mubukwanu said.

He called for political tolerance among the political players in Mongu saying there was need for the two parties compare notes as opposed to engaging in violence.

“Going forward, we would like to appeal for peace from all political leaders as violence has potential to reach unmanageable levels if it is not curbed,” he said.

JCTR lauds government on e-voucher system

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jctr
The Jesuits Centre for Theological Reflection (JCTR) has praised government for introducing the electronic voucher (e-voucher) system for small scale farmers will improve efficiency in the delivery of farming inputs.

JCTR Director Leonard Chiti has noted that the e-voucher system will help government to reach out to more small scale farmers in outlying areas of the country in terms of providing them with inputs on time.

ZANIS reports that Fr. Chiti said the e-voucher system has multiple benefits to small scale farmers as it will also break the monopoly of the Food Reserve Agency (FRA) in crop marketing.

The JCTR Director further observed that the system will improve efficiency and will help to reach to farmers in rural areas hence reducing transaction costs borne by farmers.

“As we understand it from President Edgar Lungu and Minister of Finance, Alexander Chikwanda’s speeches, it is supposed to breakdown the monopoly that FRA has enjoyed in the distribution of inputs and provision of markets,” he said.

Fr. Chiti added that, “It will also provide a wide range of options to small scale farmers who will have the possibility of accessing farming inputs from other dealers and this will help them,” he said.

Fr. Chiti further explained that system has highly been commended by international agencies and has worked well in Kenya.

And Fr. Chiti said studies have shown that small scale farmers in the country do produce much as they can as compared to other countries of the same heactarge.

He hoped that result s from the e-voucher pilot project will be good enough to help government and other stakeholders to rollout the programme to more farmers around the country.