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Bank of Zambia Hikes interest rates to 15.5%; Full Statement

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Bank of Zambia Hikes interest rates to 15.5%; Full Statement
BANK of Zambia Governor Denny Kalyalya
BANK of Zambia Governor Denny Kalyalya

The Bank of Zambia has raised its policy rate to 15.5 percent from 12.5 percent in a move aimed at curbing rising inflation.

The Central Bank has also announced that it is lifting caps on lending rates.

BoZ Governor Denny Kalyalya told a quarterly media briefing reporters in Lusaka that the move to raise interest rate.

Dr Kalyalya said the Bank’s Policy Monitoring Committee is hopeful that the measures will help stem the rise in inflation.

He said keeping inflation expectations anchored in single digits is critical to maintaining the targeted macroeconomic objectives and in particular steering inflation towards the 2016 target.

The next Monetary Policy Committee Meeting will take place in February 2016.

Below is the full statement from Dr Kalyalya

The Monetary Policy Committee (MPC) held its meeting on 2nd November, 2015. The MPC considered developments in the global and domestic economies during the third quarter of 2015 and the outlook for the fourth quarter.

The MPC also decided on the monetary policy stance aimed at achieving the inflation objective and to support macroeconomic stability.

GLOBAL ECONOMIC DEVELOPMENTS

The Committee observed that the trend of weak growth in the global economy evident in the second quarter of 2015 was sustained during the third quarter of the year.
The International Monetary Fund (IMF), in its October 2015 World Economic Outlook (WEO) Update revised global growth downwards to 3.1% in 2015, 0.2 percentage points lower than the July WEO Update. Growth prospects remain uneven as output in advanced economies is expected to pick up slightly while activity in emerging markets and developing economies is projected to further slowdown, maintaining the deflationary pressure on commodity prices.

Over the third quarter, the average prices for copper and crude oil (Dubai) continued on a downward trend, falling to US$5,267.0 per metric tonne (mt) and US$49.9 per barrel from US$6,057.0 per mt and US$61.4 per barrel, respectively. As was noted in the August 2015 Monetary Policy Statement, the prospects for interest rate increase in the USA during the year continued to shift investor preferences in favour of US dollar denominated assets and further supported the strengthening of the US dollar. With this prospect on the horizon and the further slowdown in the Chinese economy, it is expected that the currencies of emerging markets and developing economies will remain under pressure as investors realign their portfolios.

DEVELOPMENTS IN THE DOMESTIC ECONOMY

The Zambian economy is currently facing significant challenges, with deterioration in the external environment similar to what was experienced during the global financial crisis of 2007/8. This has been compounded by domestic shocks related to the significant reduction in energy supply, fiscal pressures and adverse sentiments. The Committee is cognisant of the urgent need to diversify the economy that will require measures to support investment and growth in key sectors, such as agriculture, energy and manufacturing.

Monetary policy coupled with fiscal consolidation will be critical in anchoring macroeconomic stability. The fiscal deficit target for 2016 of 3.8% of gross domestic product (GDP) announced by the Hon. Minister of Finance in his 2016 Budget Address to Parliament represents a significant step towards anchoring macroeconomic stability.

MONETARY POLICY

At its previous Meeting in August 2015, the MPC kept the policy rate constant, having raised the Statutory Reserve Ratio in April 2015 to 18% from 14%. During the third quarter, liquidity conditions in the banking system rose reflecting increased Government spending and the net maturity of Government securities.
The Bank of Zambia, therefore, heightened its open market operations and kept the interbank rate just above the upper policy rate band of 14.5%.

INFLATION

The average overall annual consumer price index (CPI) inflation was 7.4% in the third quarter, 0.3 percentage points higher than the second quarter average of 7.1%. Inflation ended higher at 7.7% in September 2015, up from 7.1% in June 2015. Food price inflation edged higher to an average of 7.9% in the third quarter from 7.1% in the preceding quarter. However, quarterly average nonfood price inflation declined to 6.7% from 7.0%.

The increase in inflation was largely attributed to the pass-through from the sharp depreciation of the Kwacha exchange rate, increase in pump prices of refined petroleum products, revision of fees and fines, and the high production costs induced by increased power rationing, which led to the use of more expensive power from diesel generators.

MONEY AND GOVERNMENT SECURITIES MARKETS

Excess liquidity in the banking system increased substantially in the third quarter due to net Government spending as well as maturity of Government securities.

The high liquidity level raised reserve money by 8.7% to K13.5 billion at the end of September, depressed demand for overnight lending facility funds, and pushed the Treasury bill and Government bond composite yield rates lower by 1.6 and 0.3 percentage points to 21.7% and 23.5%, respectively.

While the value of funds raised through Government securities auctions jumped 20.3% to K4.0 billion, the outstanding balance of Treasury bills and bonds (at face value) fell 2.0% to K25.5 billion.

To contain the liquidity build up and attenuate inflationary pressures, the Bank of Zambia heightened its open market operations.

MONEY SUPPLY, CREDIT AND INTEREST RATES

Broad money (including foreign currency deposits) increased by 26.3% to K46.6 billion in the third quarter largely due to the rise in deposits.
The expansion in deposits to K42.0 billion (and increase of 28.2%) reflected valuation effects owing to the sharp depreciation of the Kwacha against the US dollar in the third quarter.

Foreign currency deposits rose by 9.4% to about US$1.8 billion while Kwacha deposits marginally increased by 0.7% to K20.9 billion. Growth in domestic credit slowed down further in the third quarter to 2.7%, mainly due to a decline in lending to Government that fell by 52.9%. Lending to the private sector, however, rose by 22.0% in the third quarter from 1.2% in the second quarter. The average lending rate for commercial banks rose marginally to 20.8% at end-September from 20.4% at end-June.

Similarly, the average savings rate (ASR) for amounts above K100, and the average 30-day deposit rate for amounts exceeding K20, 000 marginally rose to 3.30% and 6.6% from 3.28% and 6.4% over the same period, respectively.

With the rise in inflation, real lending rates declined.

The average real lending rate decreased to 13.1% in September from 13.5% in June 2015.

Similarly, the real average 30-day deposit rate for amounts above K20,000 declined to -1.1% from -0.7% while the real ASR for amounts exceeding K100 declined to -4.4% from -3.8% in the second quarter.

FOREIGN EXCHANGE MARKET

The Kwacha came under severe pressure in the third quarter. Factors behind this were weak copper prices induced mainly by declining growth in China, the main buyer and consumer of copper; and adverse sentiments relating to power rationing, developments in the mining sector (prospects of job losses and scaling down of operations and reported loss of interest from investors), fiscal and current account deficits; and general performance of the economy.

Consequently, the Kwacha depreciated sharply by about 60% against the US dollar to end the quarter at K11.9800/USD. The Kwacha also weakened by an average of about 51% against the British pound sterling, euro and South African rand to end the quarter at K18.2334/GBP, K13.4435/Euro and K0.8679/ZAR, respectively.

EXTERNAL SECTOR

The current account deficit widened further in the third quarter to US$401.0 million from US$305.9 million recorded the preceding quarter on account of higher import related service payments and the increase in income on equity payments by foreign owned enterprises.

The deficit on the balance of goods narrowed to US$14.0 million from US$91.0 million recorded in the preceding quarter due to a higher growth in goods exports relative to imports. Preliminary data show that an overall balance of payments surplus of US$716.0 million was recorded in the third quarter against a deficit of US$27.8 million in the second quarter mainly as result of the receipt of the third Eurobond proceeds.

FISCAL SECTOR DEVELOPMENTS

The Hon. Minister of Finance in his 2016 Budget Address announced a reduction in the planned fiscal deficit to 3.8% of GDP from a projected 6.9% of GDP in 2015. Achieving this sharp fiscal consolidation will help to anchor macroeconomic stability, and ease domestic financing requirements and funding pressures.
This will therefore also support the conduct of monetary policy.

THE BANK OF ZAMBIA POLICY RATE

In arriving at the decision, the Committee took into account the inflationary developments in the third quarter and the inflation outturn of 14.3% in October, 2015.
The October outturn has pushed inflation into double digits, largely reflecting the sharp depreciation in the exchange rate as witnessed in recent months. Keeping inflation expectations anchored in single digits is critical to maintaining our targeted macroeconomic objectives and in particular steering inflation towards the 2016 target.

To this end, the MPC decided to further tighten monetary policy by raising the Policy Rate to 15.5% from 12.5%. In addition, to allow for better functioning of the credit market, the MPC decided to lift the caps on lending rates.

Both measures take effect immediately. The Bank of Zambia will continue to monitor domestic and external developments and stands ready to take appropriate monetary policy measures to support macroeconomic stability. The next MPC Meeting will take place in February 2016.

Total launches youth entrepreneurship scheme

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Total launches youth entrepreneurship scheme

Minister of Commerce, Trade and Industry Margaret Mwanakatwe with Permanent secretary Siazongo Sikalenge
Minister of Commerce, Trade and Industry Margaret Mwanakatwe with Permanent secretary Siazongo Sikalenge

Government has commended Total Zambia for initiating programmes aimed at empowering youths and supporting enterprise development.

Speaking at the official launch of Total Zambia Start Upper Challenge in Lusaka, Commerce Trade and Industry Minister Margaret Mwanakatwe who was represented by Director of Foreign and Trade Lillian Bwalya said the initiative by Total Zambia to support youth entrepreneurship will help create jobs and wealth among youths.

Total Zambia’s new initiative, the ”Start upper of the year’’ Challenge, is a local contest aimed at identifying and rewarding young entrepreneurs through the provision of start up support worth K390,000.00 in prizes for the three best business creation.

Mrs Mwanakatwe said the initiative demonstrates true commitment to the Zambian cause and desire to be the benchmark in the industry whilst providing a service that the Zambia community deserves. She added that government is keen and will support such great ideas tailored to help young Zambians to accelerate their business projects.

Mrs Mwanakatwe said government is also aware of Total’s other programs such as Young Dealers, Awango Solar Lamps and Young Graduates program directed at encouraging the professional development of graduate students from CBU and UNZA through the offer of internship for an initial period of 18 months to acquire professional experience within the Total Group both locally and internationally.

And Total Managing Director Damien Ricour-Dumas said the launch of the competition is aimed at identifying and supporting start-ups in Zambia that demonstrate potential to lift communities.

Mr. Ricour-Dumas noted that many young Zambians aspire to start their own business and build a bright future hence the introduction of Start upper of the year Challenge.

He added that the initiative supports enterprises that are dealing with challenges in the community.
Mr Ricour-Dumas observed that entrepreneurs are problem solvers and the Start Upper Challenge asks members of the public to show how their business can make a difference in the community.

The competition is open to individuals up to 35 years at the time of submitting the business application which must be implemented within 6 months after selection of winners or have a business that is under development and is less than 2 years.

Let’s build monitoring and evaluation capacities – Mvunga

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Let’s build monitoring and evaluation capacities – Mvunga

Finance Deputy Minister Christopher Mvunga (centre) during a bilateral meeting with Assistant Secretary-General for Economic Development in the UN Department of Economic and Social Affairs (DESA) Lenni Montiel on 10 July 2015. On the right is Ministry of Finance Director of National Planning Chola Chabala. PHOTO | CHIBAULA D. SILWAMBA | ZAMBIA UN MISSION
Finance Deputy Minister Christopher Mvunga (centre) during a bilateral meeting with Assistant Secretary-General for Economic Development in the UN Department of Economic and Social Affairs (DESA) Lenni Montiel on 10 July 2015. On the right is Ministry of Finance Director of National Planning Chola Chabala. PHOTO | CHIBAULA D. SILWAMBA | ZAMBIA UN MISSION

Zambia today marked the International year of Evaluation with the launch of the Zambia Monitoring and Evaluation Association which has been formed to raise standards of research, monitoring and evaluation practice.

The International year of Evaluation was declared by the United Nations General Assembly after it was approved at last year’s meeting with a view of placing emphasis on the importance of building capacities for evaluation of development activities at the country level.

This day is commemorated in order to coordinate efforts to strengthen capacities of member states to develop a strong competency in evaluation.

ZANIS reports that Deputy Minister of Finance Christopher Mvunga graced the 2015 International Year of Evaluation at Mulungushi International Conference Centre in Lusaka by also launching the Zambia Monitoring and Evaluation Association which was formed last year.

Mr. Mvunga said stakeholders should take keen interest in monitoring and evaluation because it is critical to decision making and understanding progress being made in development efforts.

The Deputy Minister said government expects the launch of the Zambia Monitoring and Evaluation Association to enhance monitoring and evaluation capacities in the country.

And UNICEF Zambia Officer-in-charge Shadrack Omol stated that generating evidence and using evaluation to improve people’s lives through better policymaking is the reason why 2015 was declared as the International year of Evaluation.

Mr. Omol said UNICE as a member of the United Nations Evaluation group looks forward to working with all partners in Zambia to enhance national evaluation capacities during the 2015 International year of evaluation and beyond.

Meanwhile Zambia Monitoring and Evaluation Association Chairman Ian Membe said the association will focus on lifting the standards of theory and practice of monitoring and evaluation and to ensure and advocate for good quality supply and demand for monitoring and evaluation in the country.

NHA to construct 10,000 houses annually

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NHA to construct 10,000 houses annually

South Houses-1
Local Government and Housing Minister Stephen Kampyongo has installed a new board of the National Housing Authority (NHA) with a call on members to provide affordable and decent housing for all Zambia.

Mr Kampyongo has since advised members not to be liabilities to the housing authority by making demands that cannot be met by the company. He stated that Board of Directors of the National Housing Authority must provide efficient, affordable and decent housing for all.

Mr Kampyongo, who is also Shiwangandu Member of Parliament, said that it is the duty of the board of directors to facilitate policy guidelines that prioritise improved provision of low cost houses manageable by all.

He said the Housing Authority, should work hand in hand with government’s vision in moving the country to a prosperous middle income Nation by the year 2030.

And newly appointed board Chairperson of NHA, Francis Ndilila, said his team, will complement government’s commitment to building affordable and quality houses according to its mandate.

Dr Ndilila stated that NHA will support government in its plan to construct 10,000 housing units annually country wide.

The National Housing Authority has been operating without a board for some time and the newly appointed members are required to provide the required policy guidance and oversight in the management of the company.

Handover Mine to Government if you have failed to run it, Lungu tells Mopani

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Handover Mine to Government if you have failed to run it, Lungu tells Mopani
President Lungu addresses Chambishi residents after a tour of the market on Monday, Novermber 2,2015 -Picture by THOMAS NSAMA
President Lungu addresses Chambishi residents after a tour of the market on Monday, Novermber 2,2015 -Picture by THOMAS NSAMA

President Edgar Lungu has called on Mopani Copper Mine management to handover the mine to the government if they have failed to run it.

President Lungu says government will not allow management to close the mine and lay off workers just because of the challenges the sector is facing.

He says that the miners always accumulated huge profits when the situation in the sector is vibrate vibrant and wondered why they should rush into closing and laying off workers when things are tough.

The President made the call when he addressed a public rally at Shinde stadium in Mufulira on Monday.

President Lungu re-affirmed that government will not allow Anglo American to take over any of the old mines in the country.

He said that Anglo America should consider setting up their own mines which they abandoned when things were tough.

Meanwhile, President Edgar Lungu has advised Zambians to reject tribal politics. President Lungu has further advised Zambians not to be used and misled by political leaders championing regional politics.

Mr Lungu said unlike other political parties, the Patriotic Front is a National Party that accepts members from all tribes and regions.

President Lungu has also advised the Lamba people of the Copperbelt not to accept to be used by desperate political leaders championing tribalism.

President Lungu said Lambas are very good people who have accepted and allowed other tribes from all parts of the country to settle on the Copperbelt.

He said this at Shimukunami school grounds in Lufwanyama District when he addressed a public rally.

President Lungu said the people of Lufwanyama should work with and support the PF because it is the only government that has managed to take development to the area since 1964.

He said this can be seen from the massive infrastructure development projects in the area such as roads, schools and Health centers.

President Lungu assured the people of Lufwanyma that he will ensure that they benefit from the massive wealth in the emerald sector in the district.

The Head of State inspected the newly constructed Lufwanyama district hospital built at a cost of 15 million kwacha. While at the hospital, the Head of state visited some patients at the Health institution.

Earlier in the morning, President Lungu met Lamba Chiefs at the Presidential Lodge in Kitwe where he hosted them during a breakfast meeting.

What does Zambia Medical Association say about Herbal medicines

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What does Zambia Medical Association say about Herbal medicines

herbal medicine

Open letter to Dr Mujajati (Zambia Medical Association President)

Herbal and traditional medicine

With reference to the aforementioned, I would like to enquire about the Medical Associations standing on Herbal remedies being sold around some townships.

I write to you to enquire if the Medical Association, working with the Pharmaceutical association, has taken any steps in testing the acclaimed healing powers of herbal medicine being sold around many areas, including my constituency, Munali.

Many herbal remedies like, 7 wonders, morringa, lemon crystal, processed charcoal and so on are prescribed around street corners and are claimed to cure complicated medical conditions.

I want to push in a formal request, for the Association of medical professionals to investigate the herbal remedies, to firstly safe guard the welfare of citizens and secondly, if the remedies are indeed as effective as they are claimed to be, we can start working on creating a platform to empower our youths, in munali, and other parts of the country to produce and package the medicine for commercial use.

A locally produced drug would create alot of empowerment for our citizens and essentially better the lives of many zambians.

Your consideration would greatly be appreciated.

Eng. Niza Phiri B.Eng, MIEZ

Munali Aspiring MP

Angola invites Zambia for 4-nations tournament

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Angola invites Zambia for 4-nations tournament

Zambia has been invited for a four-nations tournament in Angola this weekend ahead of their 2018 FIFA World Cup qualifier against Sudan.

The round-robin tournament will be held in Luanda from November 6-7 where Zambia will play DR Congo, Namibia and hosts Angola in the two-day event.

The invitation will be played just four days before Zambia face Sudan in a 2018 World Cup second round, first leg qualifier in Khartoum on November 11.

George Lwandamina will take a home-based team for the tournament.

“What is important is we will get some training games and we will expose as many players as we can so that we have broader base from where to pick from,” Lwandamina said.

The team leaves for Angola on November 4.

Nawakwi launches FFD’s Start-Up Grants for Small Scale Farmers

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Nawakwi launches FFD’s Start-Up Grants for Small Scale Farmers
FDD President Edith Nawakwi during the Launch of the start up Programme for farmers
FDD President Edith Nawakwi during the Launch of the start up Programme for farmers

Forum for Democracy and Democracy (FDD) Leader Edith Nawakwi has charged that Zambians will starve to death next year because of the poor agricultural policies implemented by the PF Government.

Speaking during the launch of the Startup grants program for small scale farmers, an initiative of her party in Lusaka today, Ms Nawakwi said that for the first time in the history of the nation, Zambia will be on the United Nations (UN) list of nations in need of relief food.

Ms Nawakwi explained that the K500, 000 program she has launched will benefit over 4, 000 farmers in various parts of the country to help them sustain their farming efforts.

Below is the full speech during the launch

OFFICIAL LAUNCH OF THE FDD AGRICULTURE START-UP GRANTS PROGRAM FOR SMALL SCALE FARMERS BY PRESIDENT EDITH Z. NAWAKWI AT THE FDD PARTY SECRETARIAT

Good morning fellow countrymen and women.

It is evident that while the whole country has become bankrupt, the worst hit, are the farmers who have been kept poor by successive governments.
In order to make progress, we have to identify the needs of a household.

The Patriotic Front Government has put a tombstone on all farmers, be it small scale or large scale.

With the prevailing load shedding, sky rocketing cost of production and inconsistent policy direction by this Government, it will take radical strategies and programs to resurrect farmers from the abyss of poverty which the PF Government has buried them.
What is prevailing is a serious sign that next year there will be massive hunger. This whole country will be in starvation. There will be no grain to grind. Hospitals will run out of drugs. The price of food and other essential goods and services will go beyond the reach of most of us.

All this could have been avoided had our humble President listened to our advice. We advised President Edgar Lungu to change course. We told him that he was cruising downhill at an alarming speed. But he didn’t listen. Now that he has grounded our economy to its knees, he has resorted to threats and insults.

Members of the press and distinguished Party Officials present; I welcome you all to this very important occasion, an occasion that will forever change the lives of thousands of households across our great country.

In our spirited effort to achieve a poverty-free Zambia through the creation of wealth at household level, I am proud today to officially launch the FDD Agriculture Start-Up Grants Program for Small Scale Farmers.

This program is aimed at supporting small scale farmers with various high value agro products for a period of three years to enable them generate higher incomes and move them from peasantry to self-reliance. It is equally designed to provide technical support that will enable farmers to increase productivity and diversify into agro-processing to add value to their produce.

As a party, we have embarked on a vigorous program of empowering farmers by providing them with Soya beans, Sun Flower and vegetable seed.

The initial number of farmers who will directly benefit from this program is 4000. These will include farmers from Chadiza, Chipata, Chisamba and Samfya Districts.

As you may be aware, small scale farmers contribute more than 80% of all the maize that we produce as a country. The bulk of these farmers, who are breaking their backs to feed our nation are women.

The sad reality, however, is that the majority of these farmers despite their hard work and sacrifice live in dehumanising poverty and deprivation. This is as a direct result of bad Agricultural policies that successive governments have been pursuing.

Agriculture which should be a cornerstone of our economic growth and national development has grossly been mismanaged by our colleagues in government. The budget allocation is in adequate. There is insufficient technical support and a general lack of planning to ensure successful diversification, mechanisation, processing and profitable marketing of our agro-products.

It is clear that Maize alone shall never lift our people out of poverty. The whole Maize business from FISP to FRA is a scandal that has plunged our farmers into untold misery.

Time has come for us to empower our farmers with high value crops and other agro-products that can generate enough income for their families and create employment for our youths.

Diversification and agro-processing is the only way to make agriculture a profitable industry capable of creating millions of jobs, eradicate poverty and increase our nation’s foreign exchange earnings.

We passionately appeal to our cooperating partners and other stakeholders to support us financially, materially and technically in order for us to expand this program and increase the number of beneficiaries.

Thank you.
May God bless our country.

FDD President Edith Nawakwi during the Launch of the start up Programme for farmers
FDD President Edith Nawakwi during the Launch of the start up Programme for farmers
FDD President Edith Nawakwi during the Launch of the start up Programme for farmers
FDD President Edith Nawakwi during the Launch of the start up Programme for farmers
FDD President Edith Nawakwi during the Launch of the start up Programme for farmers
FDD President Edith Nawakwi during the Launch of the start up Programme for farmers
FDD President Edith Nawakwi during the Launch of the start up Programme for farmers
FDD President Edith Nawakwi during the Launch of the start up Programme for farmers
FDD President Edith Nawakwi during the Launch of the start up Programme for farmers
FDD President Edith Nawakwi during the Launch of the start up Programme for farmers

President Lungu’s High School Re-Union in Pictures

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President Lungu’s High School Re-Union in Pictures

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President Lungu pose for a photograph with his school mates and current Teachers when he visited his former school at Mukuba Secondary school in Kitwe on Monday, November 2,2015 -Picture by THOMAS NSAMA
President Lungu pose for a photograph with his school mates and current Teachers when he visited his former school at Mukuba Secondary school in Kitwe on Monday, November 2,2015 -Picture by THOMAS NSAMA

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President Lungu addresses former Mukuba secondary school pupils and current Teachers when he visited his former school in Kitwe on Monday, November 2,2015 -Picture by THOMAS NSAMA
President Lungu addresses former Mukuba secondary school pupils and current Teachers when he visited his former school in Kitwe on Monday, November 2,2015 -Picture by THOMAS NSAMA

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President Lungu addresses former Mukuba secondary school pupils and current Teachers when he visited his former school in Kitwe on Monday, November 2,2015 -Picture by THOMAS NSAMA
President Lungu addresses former Mukuba secondary school pupils and current Teachers when he visited his former school in Kitwe on Monday, November 2,2015 -Picture by THOMAS NSAMA

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President Lungu with Copperbelt Minister Mwenya Musenge during a tour of Mukuba Secondary school pupils. This was when the Head of State visited his former school in Kitwe on November 2,2015 -Picture by THOMAS NSAMA
President Lungu with Copperbelt Minister Mwenya Musenge during a tour of Mukuba Secondary school pupils. This was when the Head of State visited his former school in Kitwe on November 2,2015 -Picture by THOMAS NSAMA

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President Lungu and First Ladty Esther Lungu pose for a photograph with Mukuba Secondary school pupils. This was when the Head of State visited his former school in Kitwe on Monday, November 2,2015 -Picture by THOMAS NSAMA
President Lungu and First Ladty Esther Lungu pose for a photograph with Mukuba Secondary school pupils. This was when the Head of State visited his former school in Kitwe on Monday, November 2,2015 -Picture by THOMAS NSAMA

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President Lungu and First Lady Esther Lungu having a feel of a desk at Mukuba secondary School . This was when the Head of State Visited his former School in Kitwe on Monday, November 2,2015 -Picture by THOMAS NSAMA
President Lungu and First Lady Esther Lungu having a feel of a desk at Mukuba secondary School . This was when the Head of State Visited his former School in Kitwe on Monday, November 2,2015 -Picture by THOMAS NSAMA

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President Lungu addresses pupils when he visited his former School at Mukuba Secondary school in Kitwe on Monday, November 2,2015 -Picture by THOMAS NSAMA
President Lungu addresses pupils when he visited his former School at Mukuba Secondary school in Kitwe on Monday, November 2,2015 -Picture by THOMAS NSAMA

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President Lungu addresses pupils when he visited his former School at Mukuba Secondary school in Kitwe on Monday, November 2,2015 -Picture by THOMAS NSAMA
President Lungu addresses pupils when he visited his former School at Mukuba Secondary school in Kitwe on Monday, November 2,2015 -Picture by THOMAS NSAMA

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President Lungu addresses pupils when he visited his former School at Mukuba Secondary school in Kitwe on Monday, November 2,2015 -Picture by THOMAS NSAMA
President Lungu addresses pupils when he visited his former School at Mukuba Secondary school in Kitwe on Monday, November 2,2015 -Picture by THOMAS NSAMA

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President Lungu addresses pupils when he visited his former School at Mukuba Secondary school in Kitwe on Monday, November 2,2015 -Picture by THOMAS NSAMA
President Lungu addresses pupils when he visited his former School at Mukuba Secondary school in Kitwe on Monday, November 2,2015 -Picture by THOMAS NSAMA

In The Kitchen With Kanta : Crispy prawns with homemade sweet chilli

Entertainment Editor
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In The Kitchen With Kanta : Crispy prawns with homemade sweet chilli

In-The-Kitchen-With-Kanta-Logo (1)

 

crsipy prawns and sweet chilli 6

 

Seafood, seafood, seafood; what can I say about seafood; apart from, it is absolutely amazing.  It is particularly great for those who do not suffer from fish allergies, of course, and it is also great when it is prepared correctly and you do not have to worry about food poisoning.  But enough of the doom and gloom; seafood is delicious, fresh and flavoursome.  It can be cooked in many ways and incorporated in many dishes.  It literally comes in all shapes and sizes; fish, lobster, crab, shrimp, prawns and for the brave souls – squid and octopus…although I must say the latter doesn’t sound that appetising to me.  Maybe it’s because I imagine them alive and swimming around the sea, scaring everybody with their gigantic heads and long gangling tentacles.  I should probably stop there; otherwise I’ll put you off your food.  Anyway…the good news is, today I am focusing on juicy tasty, crunchy prawns; Crispy prawns with homemade sweet chilli to be exact.  So sit back, read up and enjoy.

Please note: This dish is more of an appetiser; but keep reading to find out how it can be made with other side dishes to transform it into a main course.  Enjoy

Ingredients

For the prawns

  • Vegetable oil , for frying
  • 16 medium sized prawns (or a packet of prawns)
  • 100 g plain flour
  • 1 tsp ground sea salt
  • 1 tsp freshly ground black pepper
  • 1 tsp paprika
  • 1 lemon , cut into wedges

For the sauce (makes 1litre)

  • 500g long fresh red chillies, stems trimmed
  • 3 garlic cloves, peeled
  • 750ml white vinegar
  • 645g caster sugar

 

Method

Make the sweet chilli sauce first by halving 100g of the chillies and placing them in a food processor or blender. Halve and deseed the remaining chillies, chop and place them in the food processor. Add garlic and 250ml white vinegar.  Place the chilli mixture, remaining vinegar and caster sugar in a large saucepan over a low heat. Cook, for 5 minutes, stirring, until the sugar dissolves.  Increase heat to high and bring to the boil. Reduce heat to medium and simmer, stirring occasionally, for 35-40 minutes or until the sauce thickens. Pour into sterilised airtight bottles and seal.
Place a deep saucepan over a medium–high heat (roughly 180ºC). Fill three-quarters full with vegetable oil and leave to heat up.

Meanwhile, wash and pat dry the prawns, making sure any black bits have been removed. Place the flour, salt and pepper into a large bowl, then add the prawns and toss to coat them (you’ll need to do this in batches).

To test if the oil is hot enough, drop a piece of bread into the pan – if the bread floats to the surface, sizzles and turns golden, it’s about right. Using a spoon, carefully lower the prawns into the hot oil and fry for 3 to 4 minutes, or until golden and crisp on the outside and cooked through (you’ll need to do this in batches). Transfer the cooked prawn’s then repeat with the remaining prawns.

Crispy prawns and sweet chilli.jpg 5

Serving

Serve the crispy prawns straight away, with lemon wedges for squeezing, and the sweet chilli sauce on the side for dipping. Keep any leftover chilli sauce in sterilised bottles and store for up to 2 months in a cool dry place or the fridge.

For a main course; you can serve these with a side of fresh, crisp salad or with some homemade oven baked wedges…yum!!

To make the wedges, preheat your oven to 200 ? C.  Take one large potato, wash it and peel off the skin. Slice it long ways into 4, then slice each piece long ways again into about 3-4 pieces. In a bowl, season with salt, pepper, paprika and 1 tbsp of vegetable oil or olive oil; toss the wedges and arrange them flat on a baking tray.  Bake them in the oven for 30-40 minutes, turning them over half way through.

Crispy prawns and sweet chilli.jpg 4

 

 

Kanta Temba is a cake maker and decorator. She is also the owner and founder of Kanta Kakes – cake shop.

You can find her work on www.kantakakes.com.  Follow her on twitter @KantaKakes and Instagram @KantaTemba.

Baking with Kanta - IMG

 

 

 

 

 

 

New Inflation Rate Indicative Of PF’s Addiction to Spending – Nevers Mumba

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New Inflation Rate Indicative Of PF’s Addiction to Spending – Nevers Mumba

inflation

Movement for Multi-Party Democracy (MMD) President Dr. Nevers Sekwila Mumba says he has been proved right when he predicted in September 2015 that Zambia was heading for double digit inflation. Dr Mumba says this is due to excessive reckless spending by the Patriotic Front (PF) government and the weakening Kwacha which has driven prices upwards.

Speaking in Lusaka last week, Dr. Mumba said the alarming jump in the inflation rate from 7.7% to 14.3%, an increase of 86% in a single month, is indicative of more difficulties to come for the people of Zambia. He has called on the PF Government to demonstrate seriousness in efforts to save the economy from collapse and rescue Zambians from suffering.

Dr. Mumba explained that the PF has failed to correctly diagnose what is wrong with the country and have continued blaming the current crisis on global factors while ignoring their role in causing and prolonging the situation.

Dr. Mumba reminded the nation that the Minister of Finance Honourable Alexander Chikwanda recently told the nation that he has tried to plead with the President Mr Edgar Lungu, Vice-President Inonge Wina and all PF ministers to stop wastage of money by cutting down on unnecessary foreign travel when the country’s coffers are dwindling, but this advice has fallen on deaf ears because Ministers get per diem of $500 per day when they travel.

Dr. Mumba reminded the nation that the Minister of Finance Honourable Alexander Chikwanda recently told the nation that he has tried to plead with the President Mr Edgar Lungu, Vice-President Inonge Wina and all PF ministers to stop wastage of money by cutting down on unnecessary foreign travel when the country’s coffers are dwindling, but this advice has fallen on deaf ears because Ministers get per diem of $500 per day when they travel.

Dr. Mumba said the PF government does not care for the suffering masses, most of whom go to bed hungry due to high prices of commodites. The PF ministers only care about their lavish lifestyles which are funded by tax-payer money.

He said the Zambian economy is in very poor health and needs urgent intervention but that the PF government is incapable of doing the right thing due to their selfishness and lack of understanding of the economy.

Dr.Mumba said the MMD is ready again, as in 1991, to rescue the people of Zambia from the collapse of the economy and untold suffering.

Chef 187 presents “Siniwala” video

Entertainment Editor
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Chef 187 presents “Siniwala” video

chef187

Chef 187 released the video for “Siniwala” that features 1/3 of Urban Hype ,F-Jay.

 

BY Kapa187

We need to study why people prefer street vending-President Lungu

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We need to study why people prefer street vending-President Lungu

First Lady Esther Lungu buying fish during a tour of Kalulushi Market on the Copperbelt on Monday, November 2,2015 -Pictures by THOMAS NSAMA
First Lady Esther Lungu buying fish during a tour of Kalulushi Market on the Copperbelt on Monday, November 2,2015 -Pictures by THOMAS NSAMA

President Edgar Lungu has said that there is urgent need to establish why people prefer to sale their goods elsewhere and not in designated places.

President Lungu said that he has observed that a number of people are trading on the streets and other structures despite Government building markets for them.

He said it is a common site around the Copperbelt and elsewhere for people to abandon ultra modern markets for the streets.

The President said that there is need to engage the traders and find a lasting solution to the problem.

He said there is also need to review plans for developing markets to make them relevant to the current economic and social needs of the people.

President Lungu said this in Chambeshi on the Copperbelt when he addressed hundreds of residents at the Mine market.

AND the President has appealed to Chambeshi residents to turn out in numbers and register as voters.

Mr Lungu said this is the only way they can exercise their democratic right and participate in national development.

He said there is need for residents to register in masse to guarantee his continued stay in State House so that he can continue developing the country.

President Lungu said the PF has a good economic recovery plan for Zambia and urged them to continue rallying behind the ruling party.

Why Zambia needs the IMF bail out to stabilize the economy

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Why Zambia needs the IMF bail out to stabilize the economy

the-IMF1By Kalima Nkonde

The increase in Zambia’s rate of inflation into double digits to 14.3% signifies in my view, that we have crossed the last economic red line and goes to prove that the country is in deep economic problems as all economic indicators are now negative. It also proves that Zambia’s 2016 budget objectives will not be achieved as they are way too ambitious and do not address the main causes of the economic problems in Zambia which is the lack of confidence in economic management, excessive government expenditure resulting in excessive borrowing, higher interest rates, currency depreciation and consequently higher inflation.

The current stand of the government of solving the economic problems using home grown solutions will not work as there is no political will to stick to the budget and I believe it is now time for the PF administration to cross the rubicon and approach the IMF for a bailout. I will make my case for the IMF bail out in this article.

Who is the IMF?

The International Monetary Fund (IMF) is a specialized agency under the United Nations which has its own charter and a governing structure and provides financing and policy advice to countries in economic difficulties and helps them achieve macro economic stability. The IMF also does routine economic surveillance of its member countries – whether in economic difficulties or not – and it is the number one institution that multinationals, investors and donors rely on with regards to assessing the economic performance of a country.

I am not a fan of the IMF as a Zambian who is old enough, with fresh memories of the late 1970s and the 1980s when we were under the IMF’s inhuman Structural Adjustment Programme(SAP) that brought so much misery to ordinary Zambians.

The reality is that going for an IMF bail out means in some way that you have lost your national pride and self respect. When you go to the IMF, it is admitting to the whole world that you have mismanaged your economy , you are in a crisis and you need big brother to help you manage the economy as you cannot do it yourself! Unfortunately, the situation that Zambia finds itself in now, like in the late 1970s, is one where we have no option but to engage the IMF for an economic reform programme and bail out. It is a necessary evil and we asked for it by mismanaging the economy since 2011 when the PF took over.

You will never hear our neighbours like Botswana, Namibia, South Africa going for IMF bail outs, although the IMF does make routine economic surveillance of their economies. The only other economic pariah state in the region that went to the IMF and even defaulted on the loan is another country with a party called Patriotic Front – Zimbabwe’s ZANU PF! If the current administration had listened to the advice about prudent economic management, avoided populist economic policies and consulted the previous MMD administration, we would not be in this mess and I would not be advocating for an IMF programme. The reality is that the PF administration needs a supervisor in managing our economic affairs!

PF and IMF

Zambia’s recent approach to the IMF was under the PF administration in June 2014 under the late President, Mr. Michael Sata who was known for his brave and decisive decision making when in a crisis situation. The kwacha had lost over 18% of its value in the first six months of 2014. According to the IMF statement at that time, after a visit to Lusaka by a team of its experts, they said :

“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.”

It was a result of these talks and an impending IMF programme and the funding that resulted in the stabilization of the kwacha last year until it collapsed again 12 months later in 2015. It is not a secret in financial cycles that Finance Minister, Mr. Alexander Chikwanda must have influenced the decision not to go ahead with the IMF loan as he is not a fan of the IMF given his experience under the UNIP dictatorship. He believes that they can sometimes make things worse.

In addition, he may not have wanted to go on record as the one who brought back the dreaded IMF to Zambia! He, however, has no choice now as him and his colleagues have mismanaged the once vibrant economy as they did in the 1970s! The question is not whether to approach IMF but when to? The longer they delay the worse the situation will become.

For the record, it is Zambia’s approach to the IMF in June,2014, that put pressure on the Ghanaian Government who were also reluctant to go to IMF, to finally capitulate and approach the IMF in September, 2014 when their currency had depreciated by over 40%. Whereas the Ghanaians went all the way and until an agreement was reached- which resulted in them getting a loan of USD 918 million on 3 April, 2015 – the Zambian government, it appears, chose to abandon the programme and decided to go to the International bond market and got the expensive Eurobond of $1.25billion in July,2015 for fear of IMF conditionalities especially the control of government expenditure like the beloved infrastructure projects in an election year!

Fast forward, one year on, July 2015, the currency crisis came back vigorously to haunt the country resulting in the kwacha losing close to 50% of its value in the first six months of the year and becoming the worse performing currency in the World. The kwacha depreciation has resulted in price increases of almost everything and has now been reflected in the double digit inflation rate of 14.3% for the first time in over 10 years!

Economic outlook in 2016 without IMF

Zambia’s economic situation in 2016 is very bleak if no drastic action is taken now. In my view, the most likely scenario is that copper prices and demand for copper will not substantially increase, the PF will go on a spending binge especially in the light of the 2016 election and the President has gone on record as having said that he will spend big in order to win the election.

Foreign direct investments will be suspended pending results of the elections; the revenue projections in the budget will not be met. The combination of all these will result in a bigger budget deficit than the 6.9% forecast for 2015 and could go into double digit above 10%.

The inflation rate will continue into double digits and may even reach 20%; our foreign reserves may be lower than two months of import cover, the trade deficit will continue to be higher; the kwacha will continue depreciating and may go as high as K20 to a dollar making the servicing of the country’s foreign debt more costly for government and resulting in the debt servicing to revenue ratio dramatically increasing.The cost of living will continue going up and government will run short of funds and start failing to meet its short term obligation when they fall due.

The civil servants will start getting their salaries late, government suppliers for recurrent and Capital expenditure will not be paid in time or may not be paid at all! The scenario is the most likely scenario. The Government may not be able to control the consequences of the economic armageddon that lies ahead if they decide to take the risk of doing nothing in good time as they seem to be now by waiting for God to change things.

It is this bleak and almost inevitable economic outlook that persuades me, as a rational thinker, to advice Government to take a preemptive action of engaging with the IMF as a last resort and follow Ghana’s example who faced similar circumstances. Waiting, doing nothing apart from building churches, visiting provinces, concentrating on campaigning for 2016 and praying for Jesus to come and solve our economic problems will not help but make things worse!

Benefits of IMF bail out

There have been complaints by the President and PF officials for critics to come up with solutions. In the Post Newspaper of November 2,2015, the President challenged those with short term solutions to economic problems to come forward. He was quoted as saying, “ I have only been in office nine months. They are busy telling me I have no vision but they cannot offer solutions. Let them come forward because I am a good listener.”

I would like to stick my neck out that the all encompassing short term solution to our economic problems is to go for an IMF programme with a view to get further funding. He has no excuses whatsoever to claim that there are no short term solutions. He just have to be brave and decisive like Dr. Kenneth Kaunda, Late Mr.Frederick Chiluba and late Mr. Michael Sata before him in similar circumstances and make the difficult decisions which are in the best interests of the country and not the one which is politically expedient. He has so far not made any brave decisions to write home about.

The IMF programme will bring policy credibility and confidence to the market and the international community and stop the bleeding. The IMF will bring into government financial discipline and thereby achieve the following objectives:

  • Stabilise the kwacha through the balance of payments support thereby save kwacha from further depreciation therefore forestall further inflation and cost of living increases
  • Reduce or contain public expenditure
  • Restore investor confidence and help in Foreign direct investment inflows whish have almost dried up and therefore assist with kwacha depreciation
  • Facilitate 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 as they do not want their money to be wasted. It will be difficult to get grants or loans that are in the budget if we do not go on 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

I would like to appeal to the President to start assembling a team of credible and respected Zambian economists and financial experts who should start negotiations with the IMF. The delay in engaging the IMF for whatever reasons, may have dire consequences for the country as well as the Party in power. IMF negotiations do take long and so it is better that the negotiations start now so as to send a signal to the market that we are serious about economic reforms and in the process change the current negative sentiment that the country has and therefore save our currency from further depreciation.

It is the ad hoc, reactive and fire fighting type of management rather than an analytical, futuristic, forward looking and risk management style of management that has put us in this mess. The Government has no excuse about the lack of short term solutions to our economic problems; the IMF is one of the main solution to the currency crisis and the negative economic sentiment, period.

The writer is a Chartered Accountant by profession and a financial management expert. He is an independent and non partisan commentator.

Catholics opposition to New House of Prayer disappoints two church mother bodies

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Catholics opposition to New House of Prayer disappoints two church mother bodies

Proposed New National Place of Prayer
Proposed New National Place of Prayer

TWO church mother bodies are disappointed that the Zambia Episcopal Conference (ZEC) is opposed to the construction of the New Tabernacle National House of Prayer.

And United Church of Zambia (UCZ) St Margret’s congregation minister-in-charge Chipasha Musaba says the opposition of the declaration of October 18 as a national day of national prayer by some people in the Christian circles was a sign of immaturity.

The two church mother bodies are Evangelical Fellowship of Zambia (EFZ) and Independent Churches of Zambia (ICOZ) EFZ president Reverend Pukuta Mwanza said in an interview yesterday that the church mother body is certain that the New Tabernacle National House of Prayer will not be a “white elephant” because it will attract a lot of people.

Rev Mwanza said this is evidenced by thousands of Zambians who turned up for prayers and fasting on the national day of repentance, prayer and fasting declared by President Lungu on October 18.

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