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Fred M’membe Raises Concerns Over Ethnic and Regional Composition of Anti Corruption Commission

Fred M’membe, President of the Socialist Party in Zambia, has expressed his worry regarding the ethnic and regional composition of the officers serving in Zambia’s Anti Corruption Commission (ACC). Dr M’membe argued that the presence of officers from specific ethnicities or regions could potentially undermine the integrity and fairness of the ACC’s investigations and prosecutions.

Dr M’membe highlighted the current makeup of the ACC’s leadership and core departments as evidence of his concerns. He pointed out that the Board Chairperson, Musa Mwenye SC, hails from the Soli ethnic group, while the Director General, Tom Trevor Shamakamba, is from the Lenje ethnic group.

Dr M’membe also noted that the Director for Community Education, Director for Corruption Prevention, Director for Investigations, and the head of the Special Intelligence Unit all come from the Tonga ethnic group. Additionally, the Director for Legal and Prosecutions is married to an individual from the Bemba ethnic group.

According to Dr M’membe, this concentration of individuals from specific ethnicities or regions within the ACC raises doubts about the impartiality and fairness of the commission’s operations. He cited the well-known aphorism, “Justice must not only be done, but must also be seen to be done,” coined by Lord Hewart, the former Lord Chief Justice of England, to emphasize the importance of public perception in upholding justice.

Dr M’membe cautioned that such a composition undermines the credibility and effectiveness of the ACC. He argued that the presence of officers from certain ethnic or regional backgrounds could create an environment where investigations and prosecutions might be viewed with suspicion, potentially eroding public trust in the commission’s work.

The President of the Socialist Party stressed the significance of diversity and inclusivity in institutions like the ACC. He called for a reevaluation of the composition of the commission’s officers to ensure a fair and unbiased approach to fighting corruption in Zambia.

State House Clarifies Security Protocol on Women and Handbags

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In response to concerns raised by the Non-Governmental Gender Organisation’s Coordinating Council (NGOCC), State House Chief Communication Specialist, Clayson Hamasaka, clarified the security protocol regarding women carrying handbags during state functions. Hamasaka’s statement aimed to address the issue and provide necessary clarifications on the matter.

With all due respect to NGOCC, Hamasaka emphasized that no woman has ever been prevented from entering State House solely due to carrying a handbag. He further stated that there have been no additional security measures implemented at State House under the current administration. In fact, Hamasaka suggested that the security rules have been relaxed compared to previous practices.

Hamasaka shed light on the procedures followed at the entrance of State House, explaining that they involve routine screening of items, including handbags, similar to security protocols observed in other restricted areas like airports. The purpose of this screening is to ensure the safety and security of all individuals present within State House. If the scanning machines detect an item that may be deemed suspicious, the person carrying the bag is respectfully asked to step aside for a physical inspection, which is conducted in their presence.

In such cases, Hamasaka assured that female security personnel assist women, while male personnel assist men, to uphold privacy and ensure comfort during the inspection process. However, he emphasized that citizens who decline to have their bags screened, whether handbags or briefcases, forfeit their right to enter State House.

The purpose of these security measures, according to Hamasaka, is to maintain a safe and secure environment within State House, without targeting or singling out any specific group. The security protocols are designed to be consistent and applicable to all individuals entering the premises.

NGOCC recently voiced its concerns over incidents where women were barred from accessing State House during a commemorative event due to the lack of storage facilities for their handbags. NGOCC Chairperson Grace Sinkamba argued that this restriction infringed upon the rights of women and the girl child.

The organization expressed that handbags are an essential part of a woman’s attire, representing their right to self-expression and privacy. Additionally, Sinkamba highlighted that handbags often contain items necessary for personal hygiene, which are crucial for women based on their biological makeup.

As the dialogue between NGOCC and State House unfolds, it raises broader discussions about gender equality and the need for inclusive practices within public institutions. The focus is on finding a balance between ensuring security and accommodating the rights and needs of all individuals, regardless of gender.

The President Hakainde Hichilema’s five-point plan to stay in power at all costs

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BY SISHUWA SISHUWA – JUNE 1, 2023

Zambia’s next general election is not due until 2026, but President Hakainde Hichilema, elected in August 2021, has already devised a five-point plan for securing re-election at all costs. There is nothing wrong with planning ahead. The problem is that his plan, if successfully implemented, risks undermining Zambia’s hard-won democracy.

Broadly speaking, the plan rests on five objectives.

1) Contain the Catholic Church

The first involves containing the activities of the Roman Catholic Church, which has long played an important role in consolidating democracy in Zambia. Unlike its religious counterparts, the Church enjoys financial independence, protecting it from state intimidation and patronage. Its priests often take messages of political change to the Sunday pulpit and deliver them accessibly. Meanwhile, its bishops provide regular, mostly critical, pastoral letters on the state of the nation in a way that shapes public opinion. In opposition, Hichilema benefited from the unofficial support of the Church, which denounced his detention on the bogus charge of treason. Now in power, he looks determined to reduce its influence.

There appears to be a plan hatched at the highest level to contain the activities of the Church. This includes instigating divisions in the Zambia Conference of Catholic Bishops (ZCCB) to weaken its political influence; discrediting individual members of ZCCB by linking them to former president Edgar Lungu and his Patriotic Front (PF); and finding incriminating material on outspoken bishops and priests to diminish their public standing. The diocese in the capital Lusaka seems to have been specifically identified as a key target because it is headed by Archbishop Alick Banda, who is generally perceived to be an ally of Lungu.

Earlier this month, a sequence of developments gave the ruling UPND the opportunity to set a plan in motion. On 18 May, Hichilema held his first press conference of 2023 at which he suggested that minimal improvement in GDP and increased pledges of foreign direct investment were evidence of a growing economy. In response, journalist Virginia Chilongo listed some examples of unfulfilled promises before asking: “Citizens continue to complain that you merely speak without action – my question to you, Mr President, is how do you respond to such assertions?” Hichilema’s mumbled response left many unsatisfied. A few days later, Fr. Anthony Salangeta, a Catholic priest in Lusaka used his homily to portray the president as elitist and argued that macroeconomic growth means little to the poor if it does not reduce their cost of living. “Sometimes these politicians are liars,” he said. “You will find them talking about GDP and Millennium Development Goals, which some of us don’t even understand. They would even draw graphs.”

Hichilema, hypersensitive to criticism, hit back, denouncing Salangeta as an ignorant joker who should re-enrol in secondary school and benefit from the government’s free education policy. Other figures from the UPND joined in, saying the priest should “be taken to Rwanda and visit the museum where they have custody of results of inflammatory statements”. The leader of the Catholic Church in Lusaka, Alick Banda, defended Salangeta and vowed to “defend all priests in the archdiocese of Lusaka”. He added: “I ask the people of God to judge who is a real joker [between] a priest and a liar?”

This time, the reaction was even more swift and vicious. UPND Secretary-General Batuke Imenda condemned the archbishop as “the Lucifer of Zambia” and “a well-known PF political conman”. He called the use of the pulpit as a “political podium” a “devil scheme and a satanic philosophical tactic”. Finally, he announced the “UPND will consider the two [Salangeta and Banda] as political opponents, not as priests”. In what appears to be coordinated moves, traditional rulers and non-Catholic church leaders went on state media to join in the denouncements.
These attacks are not accidental but part of a long-planned assault on Catholic influence. Their aim, in this instance, is to isolate Banda and Salangeta from the wider Church, discredit them in a way that may result in their replacement, and send a warning to other bishops and priests. Former president Lungu employed a similar strategy when dealing with Banda’s predecessor prior to the 2021 election. That former archbishop – the forthright and upstanding Telesphore Mpundu – is now being attacked by the UPND for similarly criticising Hichilema’s leadership.

In terms of the election, the UPND is particularly worried about its electoral prospects in Lusaka and the Copperbelt, both won by Hichilema in 2021 for the first time and with a difference of only about 100,000 votes. These areas are home to large numbers of urban voters and have a significant Catholic Church presence.

2) Co-opt influential elites from civil society

The second element of the plan involves capturing influential elites from Zambia’s civil society, which has served as a check on power since the early-2000s. When Lungu undermined democracy, for instance, the actions and words of principled individuals – from academia, professional associations, churches – helped shape public opinion and contribute to his downfall. When Hichilema was elected, he moved to appoint many of these civic leaders to public bodies. While this may have benefited those state agencies, the co-optation of so many experienced figures weakened civil society to the point it is now largely unable to challenge the executive on governance.
In opposition, Hichilema promised to tackle corruption, enact constitutional and judicial reforms, and protect the environment. In power, he has hardly done any of these and, in some cases, has performed U-turns. For instance, when the PF was about to start industrial mining in one of Zambia’s greenest national parks, civil society successfully opposed the plan. Hichilema, eager to associate himself with popular causes, claimed he too was against the move. Now in government and having depleted civil society of its most effective leaders, however, his administration has proceeded to approve mining in the same park.

On other measures too, Hichilema is free to act knowing there are few left to hold him to account effectively. Official reports indicate increasing corruption in government, but the focus of the anti-corruption fight remains on former officials. The president phones independent media to complain whenever they carry stories that are critical of his leadership – a subtle form of intimidation. And Hichilema has refused to release the value of his assets and liabilities, despite being elected on a platform of accountability and transparency.

A cabinet minister told me the UPND has also hatched a scheme to use rogue websites – linked to State House – to discredit the credibility of the few remaining independent voices such as Brebner Changala, Telesphore Mpundu, and myself. “Soon, they will unleash UPND cadres to attack you and the others I have mentioned”, said the minister. “Their strategy is to use Facebook pages and websites that have been set up for malicious purposes to scandalise individuals who criticise the government and refuse to be co-opted into the government. These pages are operated by people linked to State House who cannot be touched by the police or ZICTA [Zambia Information and Communication Technology Authority, the government body that regulates communication services].”

3) Capture the electoral body and pack the courts

The third element involves the capture of two formal institutions that are critical to the management of elections: the Electoral Commission of Zambia (ECZ) and the judiciary. In opposition, Hichilema expressed dissatisfaction with the state of both and vowed to enact reforms that would strengthen and safeguard their independence. He promised a departure from the Lungu-era appointment of judges and ECZ commissioners devoid of public participation and vetting.

In power, Hichilema has reneged on these pledges and done precisely what he once opposed. Instead of implementing a transparent mechanism for appointing ECZ commissioners and judges, he has simply replaced Lungu’s picks with his own commissioners and hired 20 judges including to the Constitutional Court, which has final say on election disputes and where those seen as Hichilema allies now constitute the majority. The result is decreasing public confidence in the capacity of both the electoral body and the courts to arbitrate political contests fairly and impartially.

Hichilema and the UPND have demonstrated their readiness to manipulate not only the rules and norms of the democratic game but also the electoral body and the judicial process to secure political advantage. Last year, the ECZ – with the help of the courts – excluded key opposition candidates from taking part in two parliamentary by-elections on the Copperbelt. The polls were consequently won by the UPND. Well in advance of the 2026 elections, the stage has already been set for a possible disputed outcome.

4) Weaken opposition parties

The fourth element involves weakening opposition parties, mainly the PF and Socialist party led by Fred M’membe. Since losing the 2021 election, the PF has not crumbled for several reasons. First, the party has not held a convention to elect Lungu’s successor. This has kept the different factions jockeying for the leadership within its ranks in the belief they each have a chance. Second, MPs are disincentivised from leaving their parties as the constitution would bar them from running in the by-election. Third, the former ruling party retains a stable base both among the electorate, especially in the northern and eastern parts, and in parliament, where 56 of the 57 seats held by opposition parties belong to the PF. These factors – alongside an uncertain economic outlook and an incumbent seen as promoting ethnic-regional appointments – have left the PF confident of regaining power, whether in alliance with other parties or under new leadership.

Fearful of this prospect, Hichilema has sought to destabilise the PF. The government has threatened to deregister the main opposition party for alleged failure to submit the list of office bearers to the Registrar of Societies. It has brought charges against some leading leadership hopefuls for violations such as unlawful assembly. And the PF has also accused the government of working with one of its presidential candidates who has sued the party’s interim leaders for delaying holding the convention. The objective of the suit, the PF insists, is to weaken its leadership, keep the party in court at great cost, and force it to choose Lungu’s successor who the UPND can then target with more tailored charges.

The government is also targeting the Socialist Party (SP), which has won a string of ward by-elections in recent months. The SP is slowly coming to be seen as a viable alternative by voters who are unwilling to return to the PF and disillusioned by the UPND. Nonetheless, the small party has much work to do given that it lacks parliamentary representation, a distinct power base, a diverse team beyond its key leaders, and a language with which to connect its political agenda with the concerns of the electorate. It has, however, started positioning itself to win these votes. For instance, M’membe – who traces his left-leaning politics to his days in the South African Communist Party and African National Congress – has noted Hichilema’s pro-Western stance and has instead moved to establish close ties with China and Russia.
If the 64-year-old manages to transfer the attention he has secured on the international front to domestic politics, he could easily build momentum, especially if he forms a coalition with the PF and others. Fearful of this prospect, police sources disclosed that the government plans to arrest M’membe on a trumped-up gun-related charge aimed at securing a conviction that could disqualify him from running in 2026. Zambia’s constitution bars anyone serving a sentence of imprisonment or who has, in the immediate preceding five years, served a term of imprisonment of at least three years from standing for president.

5) Cover corruption tracks

The final element of the re-election strategy involves hiding corruption. Hichilema knows voters despise graft – a key reason they ejected Lungu – and he is determined to prevent not so much corruption itself but the perception of it.

The Anti-Corruption Commission (ACC) has been investigating both high-profile figures associated with Hichilema and Lungu. Its approach, however, has varied. With the latter, the ACC’s investigations have been high-profile. By contrast, soon after the ACC promised to disclose the outcome of its investigations into some of the former in March 2023 it went silent.

It is likely Hichilema fears that if a minister is arrested for corruption, they may expose their colleague’s graft, defect to the opposition, and undermine the bid for a second term. It is notable that the government’s anti-corruption strategy emphasises asset-tracing and recovery rather than prosecution and punishment. This approach has the effect of seeming to forgive corruption provided the thieving officials return part of the loot. It is one that has created a rift between State House and the ACC, whose highly regarded board chairperson, Musa Mwenye, may be frustrated into leaving the institution. “We must fight present corruption now and we must do it by showing that there are no sacred cows,” he recently told state-owned ZNBC. “The idea of recovering money is a good thing for getting money into the purse; it is not entirely good for detecting corruption, for fighting corruption.”

Hichilema also fears that arresting serving officials might open a pandora’s box and upset some of his powerful backers. For example, when prima facie evidence emerged that the Auditor General Dick Sichembe and the Permanent Secretary in the Ministry of Finance Mukuli Chikuba had illegally received K1.4 million ($72,000) and K4 million ($200,000) respectively, the state arrested the easily disposable Sichembe but not Chikuba. In addition to claims that Chikuba was not touched because he comes from the same ethnic group as Hichilema, a well-placed source at State House pointed to the possible influence of private interests. “The fight against corruption is selective. Some people are not being touched because of possible state capture,” said the source. “[Chikuba] is being protected by a very powerful businessman of Asian origin who wields huge influence on the president and may bring him down if he is not careful. I know there has been talk of tribalism and that this [permanent secretary] may turn into a state witness, but the real reason is that the boss is unsure of how this businessman may react to the arrest of someone very close to him.”

The fear of exposing corruption among current officials also explains why the state is procrastinating in passing a law on access to information (ATI) – also demanded by the International Monetary Fund – that would enhance transparency and assist the media and civil society in fighting corruption. Such a law has been promised by successive governments who have then dragged their feet. Hichilema’s has now joined them. In over a year, his administration has not even got as far as producing a Draft Bill, despite talk that the legislation will be ready this June.

Why Hichilema is desperate to retain power

There are three reasons behind Hichilema’s early desperation to secure a second term. The first is the fear of what might happen to his extensive businesses were he to lose power. Hichilema has refused to publish his assets and liabilities, which makes it difficult to work out to what extent his policies are benefiting companies in which he has an interest. Once he leaves office, however, a new government can revisit the subject and seek his arrest for possible corruption or on other charges such as his controversial decision to allow private companies with links to him to audit the security wings.

The second is that Hichilema wishes to avoid the embarrassment of losing power after just one term. During his decade-and-a half in opposition, he cultivated close ties with private supporters – local and external – who backed his election bid and would wish to recoup their investments. This includes local businessmen, multinational corporations in the extractive sector, and the Johannesburg-based Brenthurst Foundation, a creation of the Oppenheimer family, that appears to have undue influence on the president and direction of policy especially in mining. Given the escalating rivalry between major powers, Western countries would also prefer having Hichilema in office as a gateway to a region that is still dominated by liberation parties and a counter to the growing illiberal influences of China and Russia.

Third, Hichilema appears to see himself primarily as the leader of Zambians from one half of the country. Many people from Southern, Northwestern, and Western provinces believe they have been historically marginalised by their counterparts from the Eastern and the Bemba-speaking provinces of Northern, Luapula and Muchinga. As was the case under Lungu, the binary between us and them has been sharply drawn under Hichilema’s leadership and found expression in the skewed distribution of appointments to public office.

As well as heading the executive, parliament and the judiciary, Zambians from Hichilema’s region dominate the key ministries, the leadership positions of all five security services, the justice system, electoral commission, foreign service, and most posts in the civil service and parastatal bodies. Hichilema – the first president from his region since independence in 1964 – does not see anything wrong with this, believing he is simply addressing historical imbalances. Fearful that a leader from the other region would reverse the trend were he to lose, the solution is to remain in power until 2031 and then organise a successor from his region who can consolidate its hold on power.

Hichilema’s legacy

After nearly two years in office, the reality is slowly dawning on many people that Hichilema is not the leader he claimed he would be when he was in opposition. He has looked out of his depth on many key issues and only appears positive in contrast to his disastrous predecessor.
History will forever remember Hichilema as the vessel Zambians used to get rid of the PF, as the first Tonga (a long marginalised ethnic-language group) to become president, and the leader who increased the Constituency Development Fund from K1.6 million ($90,000) to K28.3 million ($1.45 million) – a significant step towards decentralisation and local participation that gives each constituency autonomy to decide how to spend its allocation. Herein lies his legacy. For structural and radical transformative change, Zambians will have to look elsewhere.

First Published at:  https://africanarguments.org/2023/06/zambia-president-hichilema-five-point-plan-stay-power/?fbclid=IwAR012r0T7KriVKtvXMCYGh6Qn_mWI5fcyaxGFcx1041UvAjQEl2-Z7xUrBs

Government in the process of enacting a judicial college act

GOVERNMENT is in the process of enacting a judicial college act aimed at capacity building and improved legal systems in Zambia.
Speaking when the Chief Justice of England and Wales Lord Burnett of Maldon called on him at his office in Lusaka on Wednesday, Minister of Justice Mulambo Haimbe indicated that the judicial college act is aimed at creating the judicial tailor-made courses that will be home grown and able to facilitate the delivery of continuous development.

Mr. Haimbe stated that Government has made strides in advancing legal systems through engaging in judicial reforms aimed at promoting transparency within the Judiciary.

He affirmed that the country is ready and open to work with the United Kingdom (UK) in improving the Judiciary systems for the benefit of the society.

“We are enthusiastic to learn from your experience, gain insight into your Judicial system and explore areas of potential collaboration to enhance our legal framework and economic development,” said Mr. Haimbe.

Meanwhile, Lord Burnett of Maldon Ian Burnett said Judicial collaboration between the two countries is key to improving the rule of law, securing human rights and supporting economic development.

The Lord Chief Justice said judicial collaboration can help to address some of the global community challenges citing cyber-crime, gender-based violence and climate change.

Lord Burnett of Maldon commended the Government of Zambia for the legal reforms noting the abolishment of the death penalty, enactment of the Children’s Code Act and establishing of the economic crimes court.

“The United Kingdom is keen to work closely with Zambia in improving the Judiciary systems because the two countries share in the common tradition of the law and values in democracy,” he said.

Kalumba wins 10th national Scrabble title

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By BENEDICT TEMBO

Paul Kalumba of Golden Coin Bureau de Change over the weekend emerged winner of the 23rd Zambia National Scrabble Championship a record 10th time, breaking his own previous record, amassing 18 wins and a whooping spread of +1797.
Kalumba won the tournament staged at Lusaka’s Bank of Zambia Sports Club with two rounds to spare.
He bagged a K5,000 cash prize and a trophy.
“I am happy to have reached such a milestone in my scrabble life. I hope that this will motivate other players to work hard. It is not enough to be a champion, one must practice and study,” Kalumba said
He said to be the best in anything, one must invest a lot of time studying and practising their chosen field of sport.
“This is also true for all other walks of life,” Kalumba said
Justin Chansa, Zambia’s best performing player in the recently ended East and Central Africa Scrabble Championship, scooped second prize walking away with a trophy and K4,000 cash prize.
Chansa had 15 wins spread out of 1,250.
Also on 15 wins was veteran player Patrick Mulemena Mpundu.
Mpundu who tied with Justin on points, however finished third position on account of a lower spread of 1168.
Mpundu walked away with a cash prize of K3,000 and a trophy.
Former champion, Isaac Mwape registered 14 wins to claim fourth position and walked away with K2,000 while Colonel Dr. Julius Mulele bagged fith position and walked away with K1,000. Rita Bwingi won the Best lady prize of K150.
In Section B, Ivy Kanchele emerged winner with 16 wins and a spread of 1617, walking away with a K3,000 cash prize and a trophy.
Joana Chembe also had 16 wins but had to settle for second place, on account of a lower spread of 1,480. Joana walked away with a K2,000 cash prize and a trophy.
Chama Mukonkoto settled for third position, having won 12 games.
Chama received K1,000 and a trophy.
Davies Chansa, brother of Justin, emerged fourth while Bill Geebli Sam was fifth and walked away with K800 and K500 cash prizes respectively.
Most interesting was Section C, which saw 23 primary school children competing for the Junior Championship. Gabriel Musakanyina emerged winner with six wins and a spread of 462, to become the 2023 Zambia Schools Junior Champion.
Gabriel bagged a K2,000 prize and a trophy. Joe Phiri, who also had six wins and a single loss had to settle for second position on account of a lesser spread of 229.
Joe netted a K1,000. Angel Mwale emerged third with five wins and two losses and won himself K800.
Twin brothers Pingzhen Thomas and Pingzhen Che Thomas also had five wins each with respective spreads of 256 each to claim fourth and fifth positions respectively.
They won themselves K700 and K500.
Haamenyo Luyako emerged sixth with three wins, taking home K200 cash prize.
Meanwhile, the Scrabble Association of Zambia is scouting for funds to send four players to the World Scrabble Championship billed for Las Vegas, United States of America in July.
The Association is appealing to corporates to help raise the required funds for Zambia to be represented.
The two-day 22 round tournament attracted 51 players, was divided into three sections, Section A being the main event and a player needed to have a national rating of 1200 and above to qualify to feature in that category. Only 16 players were eligible to play in section A, one woman and fifteen men.
Section B, which comprised players whose rating is below 1200,attracted 12 players, eight men and four women. The most interesting was section C, which was exclusive for primary school children.
It attracted 23 contestants, 12 boys and 11 girls. The event was The tournament format was a 17 rounds swiss and last five was the King-of-the-Hill format.

CDF to stimulate economic activities in Katombora Constituency

By BENEDICT TEMBO
The disbursement of Constituency Development Fund (CDF) loans in Katombora Constituency in Kazungula District of Southern Province will not only stimulate economic activities but also duversify the local economy. Kazungula Town Council Secretary Jamie Mukwato thus has a good reason to be upbeat.

Mr Mukwato is confident that loans to entrepreneurs in Katombola Constituency will spur investment in the area and improve the welfare of local people.

Indo Zambia Bank (IZB) recently disbursed K2, 476,605 to 22 entrepreneurs under different categories.

“Firstly, it will increase money circulation in the local economy of Kazungula, meaning people will continue investing and reinvesting in the local economy and improve their welfare,” Mr Mukwato said.

“This will diversify the local economy and build into the national agenda of economic diversification. Firstly, we start with diversification within the agricultural sector, where we will be seeing value addition to farm produce,” he said

Mr Mukwato noted that CDF has helped Kazungula in terms of improved infrastructure and the welfare of the people.

“We have seen increased and improved infrastructure such as schools and water points. People got grants and now loans to engage in business. This will ultimately improve their welfare,” he said

On the local authority’s partnership with IZB, Mr Mukwato said it has come at a right time to add value to the loan component of the CDF.
“The beneficiaries are not only getting the loans, but they have undergone financial literacy training. This gives hope that the beneficiaries will put the monies to good use,” Mr Mukwato said

Peggy Hamukoma, IZB branch manager for Livingstone who conducted the financial literacy session said the training will assist the recipients in running successful projects/businesses.

Kazungula is now one of tconstituencies in which CDF loans have been disbursed.

IZB has so far disbursed loans in Mwandi District of Western Province, Mafinga in Northern Province, Chilanga in Lusaka Province, Chipangali in Eastern Province and Mwense in Luapula Province.

Low insurance penetration worries government-Musokotwane

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Government says it is worried that despite increasing financial literacy, insurance penetration in Zambia has remained low.

According to the Finscope survey, Zambia saw financial literacy rates rise from 37.3% in 2009 to 69.4% in 2020.

Finance Minister Situmbeko Musokotwane observed that Zambia has some of the lowest insurance penetration levels in the world with many of its citizens uninsured.

Dr Musokotwane said there is need for more sensitization to get many Zambians insured.

And Dr. Musokotwane said recent positive trajectory in the macro-economic environment has induced high levels of investor confidence in the Zambian economy.

He said a stable macroeconomic environment is one of the critical ingredients for achieving sustainable economic growth and, ultimately, poverty reduction.

Dr. Musokotwane was speaking in Lusaka Wednesday morning in a speech read on his behalf by Permanent Secretary for Economic Management and Finance Dainess Chisenda during the launch of BestLife Insurance Limited, a new wholly owned Zambian life insurance company.

He said government is happy that the Pensions and Insurance industry has remained stable over the years due to the efficient supervision and is registering growth with the coming in of new players such as BestLife Insurance.

“My Ministry is happy to know that the pensions and insurance industry remained stable over the years due to efficient supervision of the regular, the Pensions and Insurance Authority (PIA). As the sector grows with the coming in of new players such as BestLife, It is my hope that the pensions and insurance’scontribution to the economy will also continue to increase and inspire public confidence,” Dr Musokotwane said

“The Insurance Industry has remained resilient recording a growth of 16.97 percent in terms of Gross Written Premium (GWP) during the year ended 31st December 2021 (2020: 27.75 percent). In quantum, GWP increased to K5, 343 million from K4, 568 million in 2020.”

He added, “The insurance industry growth rate was attributed to increased fire, life and health insurance uptake, following the expansion of the construction industry and increased uptake of insurance services following the COVID-19 pandemic. The growth in fire, life and health insurance uptake signifies a growth in non-motor products which has dominated the industry for a number of years. This is a good indication of the expansion of products offered in the Insurance Industry.”

And BestLife Zambia Board Chairman Geoffrey Sakulanda said the new company is targeting to become a key player in the life insurance space by 2030 by offering superior and tailor made services for all segments of its customer base including ordinary Zambians.

“The birth of BestLife Insurance speaks to the renewed confidence in the Zambian economy as a key destination for private sector investment, both local and foreign under the stewardship of His Excellency President Hakainde Hichilema. We are launching BestLife at a time when there is growing interest in Zambia and we believe our timing could not have been any better,” he said.

“As BestLife, we aim to becoming a key player in the life insurance space by 2030 by offering superior and tailor made services for all segments of our customer base including ordinary Zambians. Our pledge is that we will always be innovative, always looking for ways to meet Zambian’s evolving needs and change lives for the better. Everything we will do from today is geared towards making it simpler for you to make best life choices and to protect and grow your wealth.”

And Chief Executive Officer Christabel Michel said BestLife is geared to transform the life insurance sector in Zambia.

“At BestLife, we believe there are a lot of people that need life insurance, but they do not have life insurance, because they do not really understand it. The challenge with insurance in Zambia is that it is still viewed as elitist and not for everyone, that it is basically for the wealthy. As BestLife Insurance, we believe that everybody should get covered and this is what makes us truly unique,” Ms. Michel said.

“We will work actively with the Insurers Association of Zambia on its consumer education programmes in order to contribute to efforts to increase knowledge levels about insurance. Zambia has one of the lowest insurance penetration globally, meaning the country still has tremendous potential for growth and this offers a great opportunity for BestLife to showcase its innovative approach to insurance.”

Meanwhile, Registrar at Pensions and Insurance Authority Mrs. Namakau Ntini urged insurance companies to quickly settle claims when they fall die in order to restore public confidence in the sector.

“The speed at which onboard of new customers happen should be the same speed at which claim settlement happens,” Mrs Ntini said.

Motocross Seek $50,000 for Cape Town Trip

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Team Zambia is seeking about $50, 000 to enable it compete at the 2023 FIM Africa Motocross of African Nations (MXOAN) to will be held in South Africa from 11-13 August.

Local rider Scott Heygate said Zambia plans to carry a team of at least 27 riders to Cape Town for the championship.

Heygate said team Zambia has embarked on a campaign to raise $50, 000.

He said the showpiece will expose Zambian bikers to a wide platform as 11 countries are expected to take part in the 2023 MXOAN.

“We are trying to source out some sponsorship as many people know it is very costly challenge to take 27 to 30 bikes across borders, transportation, flights and just to cater for the team,” Heygate told Radio Icengelo News in the Kitwe Showgrounds.

“So we are out here to see if any companies are willing to come on board and help us out and see if they are willing to their logos on our bikes,on our shirts, on our caps and just help us represent Zambia in Cape Town,” he said.

2023 MXOAN is being staged under the Zone 7 umbrella.

Luapula Provincial Administration Happy with Avocado Project

LUAPULA Province Acting Deputy Permanent Secretary John Mwasha says the Avocado industry in the region has potential to change the economic status if well managed.

Mr. Mwasha said if well marketed the avocado industry which is booming in Kawambwa District can bring in Forex in Luapula and the country as whole.
Speaking when he met a team from the Zambia News and Information Services and Kawambwa Sugar at the Provincial Administration, Mr. Mwasha urged the media to sensitise people and publish information on plants such as avocado which is a promising business in Luapula.
“I encourage you to write stories on such plants, because if well marketed, the industry can boost our economy as a province and the country as a whole,” he said.
Mr. Mwasha noted that NAVA Limited the investors of the Kawambwa Sugar Limited that are managing the Avocado project should market the produce so that the local people can benefit.
“Most of our peasant farmers are being exploited and what is important is for them to have readily available market so that their livelihoods can improve,” he said.
Meanwhile, Zambia News and Information Services (ZANIS) Senior Editor Christeter Chizhyuka pledged the institution‘s continued commitment to interpreting Government policies and documenting economic activities around the country.
Mrs. Chizhyuka said while in the Province, the team will visit Kawambwa Sugar Limited to document economic activities of the company and the avocado project.
She stated that it is through well researched information that the public are able to appreciate the work that Government and cooperating partners are doing.
The Kawambwa Sugar Limited Avocado project which covers 1,100 hectares targets to create direct employment for over 600 full-time workers and 600 seasonal workers, with a particular focus on empowering women.
Its first commercial harvest is expected by early 2025 with an expected annual revenue of USD$60 million, primarily from international sales.

President Hichilema’s Commitment to National Day of Prayers and Reconciliation Unwavering, Amidst Circulated Video

In response to a recently circulated video clip featuring President Hakainde Hichilema’s address to party members regarding the National Day of Prayers and Reconciliation, the Chief Communications Specialist at State House, Mr. Clayson Hamasaka, has emphasized that the president’s commitment to Zambia as a Christian Nation and the importance of the national day remain steadfast and unchanged.

The video clip in question dates back to the period leading up to the 2021 elections and was intended as a response to a rhetorical question. However, it has resurfaced and has been shared widely, causing some confusion and speculation among the public.

Mr. Hamasaka clarified that the National Day of Prayers and Reconciliation is still officially recognized and remains gazetted in the Zambian statutes. The president’s unwavering dedication to the Gospel of Jesus Christ and his service to the people of God are resolute, unaffected by any attempts at manipulation or schemes. President Hichilema’s commitment to Zambia as a Christian Nation remains incredibly strong.

The National Day of Prayers holds significant importance in shaping the nation’s character, and its relevance and significance remain unchanged. It is a gazetted instrument that allows the nation to come together in unity, reflecting on past challenges and seeking divine intervention for the future.

This recent circulation of the old video clip should not be misconstrued as an indication of any change in President Hichilema’s stance on the National Day of Prayers and Reconciliation. The video’s resurfacing seems to be a deliberate attempt to stir controversy or mislead the public.

As the country’s leader, President Hichilema continues to prioritize the well-being of Zambia and its people, fostering unity and emphasizing the importance of spiritual reflection and reconciliation. The National Day of Prayers and Reconciliation stands as a testament to the nation’s values and aspirations, aiming to bring about healing and understanding among its citizens.

Mr. Hamasaka concluded by urging the public to remain focused on the president’s unwavering dedication to the Christian principles that guide his leadership and to disregard any attempts to misinterpret or manipulate his words. The government remains committed to upholding the National Day of Prayers and Reconciliation as a vital part of the nation’s fabric.

Government Orders Cease of Mining in Lower Zambezi National Park Due to Breach of Conditions

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The Zambian government, acting through the Zambia Environmental Management Agency (ZEMA), has ordered the suspension of all mining operations in the Lower Zambezi National Park. The decision comes as a result of non-compliance with the conditions outlined in a letter issued to Mwembeshi Resources Limited.

In a recent statement released by the Ministry of Green Economy and Environment, Minister Collins Nzovu highlighted that ZEMA had unequivocally established multiple violations committed by Mwembeshi Resources Limited. These violations relate to the conditions stipulated in the Environmental Impact Assessment letter issued on May 7, 2021, regarding the proposed large-scale mining activities.

According to Minister Nzovu, the infractions prompted ZEMA, in accordance with section 106 of the Environmental Management Act No. 12 of 2011, to issue a Compliance Order to Mwembeshi Resources Limited. The order mandates the immediate cessation of road construction within the national park and suspends the extraction of gravel and other construction materials from the two designated pits within the park’s boundaries.

Furthermore, the minister directed the company to submit a site environmental restoration plan. This plan should outline the steps required to restore the degraded areas within the national park, including the borrow pits, to their original condition as mandated by the Environmental Management Act.

The decision to halt mining activities in the Lower Zambezi National Park aligns with the commitments outlined in the United Party for National Development (UPND) Party Manifesto. The party emphasizes the importance of efficient and sustainable management of land, recognizing it as a valuable and limited resource. The government aims to ensure that both public and private sectors adhere to responsible land-use practices.

The Lower Zambezi National Park, situated along the Zambezi River, is renowned for its rich biodiversity and stunning landscapes. The park is home to various wildlife species, including elephants, lions, and hippos. It is a significant ecological and tourist attraction, attracting visitors from around the world.

Environmentalists and conservationists have applauded the government’s decision to halt mining operations in the national park. They argue that protecting such pristine natural areas is crucial for preserving biodiversity and maintaining the delicate balance of ecosystems. Additionally, they stress the importance of sustainable development practices that consider the long-term impact on the environment and local communities.

Local communities and environmental organizations are calling for stringent monitoring of compliance with environmental regulations in order to prevent further encroachment on the national park. They also advocate for the involvement of stakeholders, including local communities, in decision-making processes regarding land use and resource extraction.

As the government takes steps to address the non-compliance issues and restore the affected areas within the Lower Zambezi National Park, there is hope that the natural beauty and ecological significance of the park will be safeguarded for future generations to enjoy.

Stop selling Alcohol in markets and Bus stations – Nkombo

MINISTER of Local Government and Urban Development Garry Nkombo has given a seven days ultimatum to vendors selling alcohol in markets and bus stops or risk being prosecuted as doing so is in contravention of the market and bus stations Act.

In a joint statement by his ministry, CSOs, the church and other stakeholders on the illegal selling of alcohol on the streets, Mr. Nkombo said the illegal selling of alcohol is a challenge that is common and universal across all sections of society, the church, civil society political parties and government.

“I have directed all Local authorities to take immediate action in enforcing the provisions of liquor licensing Act within their jurisdictions.

Local authorities are responsible for ensuring compliance of all licensed vendors with the statures and any violations should be met with appropriate consequences”, the Minister said.

He also said that it is imperative that all illegal vendors of alcohol bring an immediate cessation to their activities and cease any covert supplies, adding that government has put in place various pieces of legislations which include among others Liquor licensing Act No. 20 of 2011, Food Safety Act No. 7 of 2019 and Public Health Act Chapter 295 of the laws of Zambia.

He said these laws provide among others for the establishment of a licensing system to control the sale of alcohol, the conditions and requirements for obtaining licenses and outline penalties for non-compliance.

The country has seen an increase in the number of outlets selling alcohol especially under age at market and bus stations in contravention of the Act giving rise to a number of delinquent youths.

Preparations for the 2024 National Budget has hit top gear

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Preparations for the 2024 National Budget has hit top gear with the Ministry of Finance and National Planning holding budget plan stakeholders’ consultative meetings in Lusaka and Copperbelt Provinces.

The two separate meetings attracted private sector representatives, civil society organisations, Government officials and
members of the press.

On the Copperbelt, the 2024 National budget and the 2024 – 2026 medium term expenditure framework consultative meeting took place in Ndola and featured Ministry of Finance economist from the budget office Davis Mtonga.

In his keynote speech at the Lusaka meeting, Minister of Finance and National Planning Dr. Situmbeko Musokotwane said the government was committed to broad-based consultations when coming up with the nation.

Dr. Musokotwane said the aspirations of the government can not be achieved without the strategic role that the private sector plays in the economy.

He said the Government is seeking to accelerating achievement of macroeconomic stability and restoring fiscal and debt sustainability in order to stimulate inclusive growth and prosperity.

“Thank you for joining us at this important consultative meeting. As part of government commitment to broad-based consultations, the Ministry of Finance and National Planning has invited state and non-state actors to Participate in the formulation and implementation of the 2024 National budget and the 2024 –2026 medium term budget plan. Ladies and gentlemen, government remains committed to Accelerating achievement of macroeconomic stability and restoring fiscal and debt sustainability in order to stimulate inclusive growth and prosperity. In this regard, i wish to
Assure you that the government will continue to focus on Strategic interventions anchored on the four (4) pillars of the 8th national development plan, that is, economic transformation and job creation, human and social development, environment, and sustainability and good governance,” Dr. Musokotwane said.

He said Government’s assurance of maintaining a conducive business environment will be pivotal to sustaining a thriving private sector led economy.

“It is obvious that aspirations of the government can not be achieved without the strategic role that the private sector plays in our economy. Therefore, to achieve sustainable and inclusive growth for increased economic opportunities, Government’s assurance of maintaining a conducive business environment will be pivotal to sustaining a thriving private sector led economy.As emphasized by the republican president, the government is
Working on addressing the bottlenecks that are a hindrance to the growth of the economy and our reconstruction endeavours. Particular focus will placed on enhancing value chains and fostering competitive investments.Therefore, I call upon all of you, as partners of development, to propose measures that will grow all sectors of our economy and improve the welfare of the people,” Dr. Musokotwane said.

“In the upcoming fiscal year and subsequent medium term, we will continue to focus on implementing policies and programs that must deliver economic growth and development. As a country we cannot continue talking about our potential as a nation but rather, we need to work on actualising the potential of our country. We can only achieve this by working together.Let me take this opportunity to sincerely thank our sponsors, Giz, through the good financial governance program, for sponsoring this consultative platform. I also appreciate your valuable technical backstopping for this process. Equally, i would like to thank all the other stakeholders, the private sector representatives, civil society organisations, Women groups, youth associations, individuals and the general public for your valuable inputs that assist Government in the implementation of inclusive programs.This being a consultative meeting, I urge you all to be open minded and to contribute to the discussions effectively. It is now my honour and privilege to declare this national budget consultative meeting, for lusaka province, officially open,” Dr. Musokotwane said.

Zambia Debt Relief Talks miss 5th MOU Deadline

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  • How Ghana got Official Creditors’ nod faster than Zambia
  • Why is China delaying signing the Memorandum of Understanding?

By Mwansa Chalwe Snr


When Zambia’s Official Creditor Committee (OCC) met in Washington on 18th April, 2023, it was reported that barriers holding talks back had been resolved. And the non-binding Memorandum of Understanding (MOU) was going to be signed in May, when the OCC was scheduled to meet again.

“Agreement was reached on nearly all issues that were holding back progress. There was progress and the next meeting is in two or three weeks’ time and MOU is expected to be signed,” Reuters reported, quoting two different sources who were privy to what transpired in the OCC meetings.

Although there was general optimism about the Official Creditors signing the MOU in May, there were those of us who understand how China operates in negotiations, who were very cautious and rather skeptical. As Patriots, we advised the Zambian government to take a risk mitigation measure. We suggested that a powerful delegation led by the Finance Minister, accompanied by the foreign Minister, go on a diplomatic mission, to lobby China before the OCC meeting in May. The physical trip by a high powered delegation to Beijing was going to be a deal clincher. The advice was ignored.

The May OCC meeting did take place, but no MOU was signed, and this is the fifth deadline that has been missed. China has clearly been sending a message to Zambia. As at present, Zambia’s Debt restructuring deal does not seem to have any end in sight. And Minister of Finance, Dr. Situmbeko Musokotwane, appears concerned after seeing the month of May pass without a deal.

Delays to the debt restructuring are having a significant impact on the economy and the livelihoods of our people. The uncertainty created by the protracted restructuring process has put pressure on our currency and made it difficult to attract the much needed foreign investment,” He said in statement addressed to Zambia’s Official Creditors Committee on 30 May, 2023.


In the past, there were various speculations as to the reasons why talks for the Zambian debt deal were stalling. However, following the speed at which Ghana has achieved financial assurances and approvals from the Official Creditors including China, it has made government critics question the Zambian government’s debt restructuring strategy. It has taken Ghana only two months, to get approvals from Official Creditors and the IMF Board after listening to advice from experts outside government and adopting their recommended strategy.

How Ghana got faster nod from Official Creditors than Zambia


Ghana secured a staff-level agreement with the International Monetary Fund (IMF) in December, 2022 for a $3 billion loan. And for the IMF’s board to sign off the programme, they required Ghana’s Official Creditors to provide financing assurances. China is Ghana’s biggest bilateral creditor, with about $1.7 billion of debt.

China had initially rejected attempts by Ghanaian officials for them to commit to the setting up of a Creditors’ Committee for an agreement on a debt package. In early February 2023, Ghanaian President Nana Addo Dankwa Akufo-Addo appealed to Germany to “encourage” China to support Ghana’s debt restructuring efforts when he met the visiting German Finance Minister, Christian Lindner.

“The President and the Finance Minister have appealed to Germany to support Ghana in convincing China to come to the table, and we are ready to do that but at the same time, I want to appeal to all Ghanaians who have strong ties to China, who are doing nice business with China to also engage them and convince them that it is time to sit down with all the creditors and agree on a package,” German Ambassador, Daniel Krull, advised Ghana. “We are prepared to live up to our responsibility as one of the major bilateral creditors to Ghana. The Big elephant in the room is China, the largest creditor to Ghana”.

On the basis of advice from Ghanians experts outside Government and the German Ambassador, on 22 March, 2023, Finance Minister Ken Ofori-Atta led a powerful delegation to Beijing. He disclosed that the Ghanian government’s top priority was to secure IMF board approval first, with the fine details of debt treatment operations to follow later. On his return, he reported that China had agreed to support Ghana and that they will cooperate in meetings with Paris Club and other bi-laterals. And one and half months later, on 12 May, 2023 – Official Creditors (Paris Club and China) gave financial assurance to IMF on behalf of China.


On 17 May, 2023 IMF Board approved Ghana’s loan and two days later on the 19 May, 2023 IMF remitted $600m to Bank of Ghana. It took Ghana less than two months to get Chinese support and IMF approval of the deal.

The reason why Ghana got the approvals fast was simple. They listened to Ghanian experts outside government and adopted a step by step strategy, and focused on lobbying the biggest creditor directly. Ghana undertook a high level physical visit to Beijing, knowing that members of the Paris Club were already in their column with the IMF having approved a staff level agreement. Ghana totally disregarded lobbying the United States government, the International Monetary Fund, World Bank, the United Nations Secretary General, and other Western countries to speak to China on their behalf after being advised by the German Ambassador.

Zambia on the other hand, despite the unsolicited advice to government to follow a similar approach as Ghana, decided to adopt a different strategy. Zambia has put undue faith in the effectiveness of the OCC by over relying on it. The country has not paid enough attention to the important arbiter for the debt deal, and one with a de facto veto – China. Zambia’s approach has showed a lack of understanding of the basics of Chinese civilization, culture and negotiations etiquette. Consequently, this has resulted in China changing goal posts and being reluctant to sign the MoU on five different expected occasions. There are five different dates on which the deal was expected to be consummated. And these are as follows: December 31, 2022; during the G20 Finance Ministers in February, 2023 in India; the end of 2023 first Quarter – 31 March, 2023; the April 2023’s IMF/World Bank Spring meetings in Washington and the latest being May, 2023 during the latest Official Creditor Committee meeting. In a normal situation, whoever has been advising Zambia on this failed Debt restructuring approach and strategy is supposed to be fired? It is proving a costly strategy.

On the February 1, 2023, I penned an article, advising government on how to speed up the debt deal. READ MORE: https://www.lusakatimes.com/2023/02/01/why-zambias-debt-restructuring-deal-is-delayed-here-is-how-to-fast-track-it/

Why is China not signing Zambia’s MOU?


It is no longer a secret that it is China who is delaying the deal, and there is no need to beat about the bush. The latest approval of Ghana’s deal by the Official Creditors who include China, is the clearest sign that Zambia has issues to resolve with China, before it can sign the MOU. In January,2023, both US Treasury Secretary Janet Yellen and former World Bank President, David Malpass accused China of delaying Zambia’s restructuring, and asked them to stop making unfeasible demands.

China is asking lots of questions in the Creditors’ Committees, and that causes delays, that strings out the process,” He said in an interview with Bloomberg News. “It’s important for them to be focused on getting to an actual debt restructuring where the burden can be lightened for Zambia.”

On the basis of the messages of support for Zambia’s Debt restructuring that was coming from Beijing, many Zambian analysts treated the Americans accusations of China with a pinch of salt. This is no longer the case. The Beijing messages of support have increasingly turned out to be mere rhetoric and diplomatic niceties, as actions speak louder than word.

Zambia, on the other hand, has not properly diagnosed the reasons why China is not signing the MOU. And as a result, they have been applying the wrong medicine, like the latest statement from the Finance Minister appealing to the OCC. It is this lack of proper diagnosis of why China is not signing the MOU that has resulted in the five missed deadlines, and the consequential delays in the deal. The restructuring deal has technical, diplomatic, relationships and geopolitical dimensions, which all have to be taken care of in strategy formulation and implementation. Zambia has placed too much focus on fulfilling technical issues only. This wrong diagnosis was clearly captured in Finance Minister Dr. Situmbeko Musokotwane’s answer News Diggers newspaper as to why government had missed the first quarter deadline for the deal.

We mentioned the first quarter because we are committed to delivering our part of the bargain. We did not take into account that these other people who also made commitments, they will not honour their side of commitment. And on our side as government, we have done everything that we committed ourselves with them but the delay is on their side. They are now asking questions here and there and we are pushing hard. The IMF is helping us, the World Bank is helping us, the donors are helping us,” he said.

In April, 2022, Chinese Ambassador to Zambia Du Xiaohui said that China did not want to join the G20 Creditors Committee because it believes that friendly bilateral cooperation is the best way to deal with debt between friends. It follows that China treats the OCC with some element of contempt, partly because it is a creation of the West. China is a reluctant participant of the Creditors Committee. It views the OCC as a formal administrative convenience for its borrowers to access IMF funding, among other things, but does not take it as serious negotiating forum for its debt, at least. And one will only get quicker results by direct informal engagement with China, and the OCC being there for rubber stamping.

And purely on the basis of my in depth analysis and my expertise, having written a book on the subject two years ago, and predicted what is currently playing out, there are about four possible, non-technical reasons why China is delaying signing the MOU. I am sure the government is aware of some of them. Unfortunately, some of the reasons are not for public consumption due to their sensitivity. Zambia will need to address these issues at some point. The earlier they are attended to, the better for our economy. The answer to the resolution of the debt deal at its current stage, lies more on what steps Zambia takes in engaging its biggest bilateral creditor, and not necessarily with appeals to the Official Creditor Committee, which is quite toothless without Chinese support.

Conclusion

The New Dawn administration must be shocked and disappointed about how the debt restructuring talks have turned out to be. They did not anticipate that the talks will take this long, resulting in the reversal of some of the macroeconomic gains they had scored. This, however, should be part of their learning curve. They should not be beating themselves up. They are a number of lessons that they can draw from this experience. The wise learn from their own mistakes and those of others.

The administration should realize that running a country involves team work. We are “Team Zambia” and we want to win. The patriots among us, want the New Dawn government, like any other government of the day, to succeed. When “Team Zambia” succeeds, credit will go to the manager, who is the President even if advice came from other people outside government. And players in a game rarely see their own mistakes. It is the outsiders who do and point them out so that corrections are made.

One of the first lessons from the stalled debt restructuring deal is the exposure of the limitations of the USA and Bretton Woods institutions like the IMF and World Bank influence in 21st Century development finance ecosystem. The West has failed to deliver debt relief to Zambia without China. There is no doubt that Zambia over relied on the West to deliver the deal, based on the country’s experience of the Highly Indebted Poor Countries (HIPC) program of the 2000s but situation has drastically changed.

Another major lesson for the New Dawn, is for them to open up to advice from different sections of society, because running a country is complex, with many uncontrollable variables and too many moving parts. There no one individual or group of individuals who can know everything, as the Senior Citizen Mr. Emmanuel Hachipuka, an experienced Chartered Accountant, correctly observed in his Op-ED to counsel President Hichilema.

It is not only HH that can decide the country’s direction alone. Whatever he does, he must remember that the country is not his alone but the majority shall decide the country’s direction. HH must learn to listen to the country. The country has a say in the way he governs his people.” He commented about the management of the economy and the country. “Public opinion matters, and so does the church and many segments of our society. He should desist from surrounding himself with “Yes bwanas”. Time is running out. The approach to debt restructuring he has used is causing severe delays. I am not sure who his consultants are on this subject.”

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Mwansa Chalwe Snr is a Chartered accountant and Author. He is an independent financial commentator and analyst. He is the author of: https://www.amazon.com/CHINA-WEST-BATTLEGROUND-AFRICA-Geo-Economic Competition/dp/9982913174 Contact:[email protected]

ERB Reduces Fuel Prices in Response to International Market and Exchange Rate Fluctuations

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The Energy Regulation Board (ERB) has announced a significant reduction in the pump prices of petrol, diesel, kerosene, and Jet A-1 fuel, effective from June 1, 2023. The adjustment comes as a result of the decline in international oil prices and the depreciation of the Kwacha against the United States Dollar.

According to the latest price review by the ERB, petrol will now cost K3.14 less per liter, diesel will be K2.77 cheaper per liter, and kerosene will see a reduction of K0.73 per liter. These reductions reflect a decrease of 11.99% for petrol, 11.05% for diesel, and 7.78% for kerosene. Furthermore, the retail or Posted Airfield Price (PAP) of Jet A-1 at Kenneth Kaunda International Airport (KKIA) and other local airports has also been adjusted downwards.

The decline in international oil prices played a significant role in the reduction of fuel prices. During the previous price review in May 2023, the average prices of petrol, diesel, and kerosene on the global market were US$93.04/bbl, US$95.22/bbl, and US$92.72/bbl, respectively. In comparison, for the June 2023 fuel price review, the average prices dropped to US$81.88/bbl for petrol, US$84.70/bbl for diesel, and US$85.51/bbl for kerosene. These changes signify a notable decrease in prices across all fuel types.

Several factors contributed to the decline in oil prices, including concerns about a potential recession that impacted the oil and gas market. Additionally, fears of a banking crisis following the collapse of some Western banks further heightened uncertainty.

In tandem with the drop in international oil prices, the Kwacha experienced a depreciation of 0.49% against the United States Dollar from an average exchange rate of K18.47/US$ in April to K18.56/US$ in May 2023. This depreciation was mainly attributed to re-emerging foreign exchange market pressures.

However, the impact of the decrease in international oil prices outweighed the effects of the Kwacha’s depreciation against the United States Dollar. As a result, domestic fuel prices have seen a favorable adjustment, leading to the reduction in prices for petrol, diesel, kerosene, and Jet A-1.

Motorists and consumers across the country can now benefit from the lower fuel prices, which are expected to provide some relief from the high cost of living. The ERB encourages fuel suppliers and retailers to promptly implement the revised prices to ensure that consumers can access the benefits of these adjustments.

The determined changes in the national uniform pump prices for June 2023 are as follows:

  • Petrol: K3.14/liter reduction
  • Diesel: K2.77/liter reduction
  • Kerosene: K0.73/liter reduction
  • Jet A-1: Retail or Posted Airfield Price (PAP) adjustment at Kenneth Kaunda International Airport (KKIA) and other local airports.

The ERB remains committed to monitoring and regulating the energy sector to ensure fair and reasonable fuel prices for consumers while considering global market dynamics and exchange rate fluctuations.