Technology and Science Minister Felix Mutati has hailed ABSA Life, Airtel money, and Inclusivity firms for the creation of a potent solution at the digital distribution model umuyo funeral cover driven by innovative technology, collaboration and partnership.

Mr. Mutati said the partnership is devised on the digital technological front that is introduced to administer and cover life insurance for customer service – satisfaction round the clock.

Speaking during the re-launch of ABSA’s Life Zambia’s micro-insurance umoyo funeral cover plan in partnership with Airtel money and Inclusivity firms, Minister Mutati said the launched cost effective product is convenient as it can be easily accessed on the spot distinct from physical point of search for service.

“In the face of increased development of digital services, questions about the quality and standards that meets customer satisfaction remains a big challenge. In fact, we are faced with a challenge of most not meeting the standard that is being set today. This I say because we are going to witness the launch of a digital distribution model by some of powerful brands not just in Zambia but at sub-regional level. This partnership will not only benefit absa customers but all airtel customers as well. If you have heard me on several platfoms talk about partnerships and collaborations, this is it. From the outset, I can only say congratulations to absa and airtel!Ladies and gentlemen,one of the key measurements of a growing economy is easy access to financial services for its population. Financial services as we know vary from mainstream banking, wealth, and investment to insurance and over the years, we have seen significant digital uplift of financial services in the banking sector, where customers can now complete transactions on their mobile phones that previously required a series of approvals and steps at a physical branch.”

“Today we are witnessing the expansion of such services to insurance. With this product offering, customers will be able to acquire insurance from the comfort of their homes, offices and even while on the street by simply accessing the service on the airtel money platform using used. Ladies and gentlemen,this government has emphasised time and again how financial inclusion is a key strategic agenda and working with the financial industry regulators such as the bank of zambia, the insurers association of Zambia and the pensions and insurance authority with the support of other organisations, we are beginning to see this benefit expand not just to high income earners, but to the lower sections of our communities and primarily those in the informal sector. We are living in a world that is constantly evolving with new exciting and innovative technology and it is therefore comforting to see that absa life is embarking on a journey to be digitally led. I believe such a strategy will result in efficiencies that will grow not just the insurance industry, but the country as a whole. Recognising that your customers are spending more time on their digital gadgets,” he said.

Mr. Mutati continued:”The government is creating an enabling policy environment for the development and uptake of digital services. We need to adopt digital services for the simple reasons of convenience and efficiency of the services, cost savings in the use of platforms, inclusion and equality for the marginalized groups.Ladies and gentlemen,at our ministry, we believe that technology is the foundation for economic growth and sustainability. As we have recently come to experience, a significant number of our people in Zambia both young and old are adopting the many tools and applications available for use on their mobile phones and other gadgets not just for social interaction but also for financial transactions.”

“It is therefore only right that insurance must also be accessible through the same tools and applications. It is gratifying to see the culmination of the absa life Zambia and airtel mobile commerce Zambia (airtel money) partnership powered by inclusivity solutions that is driving the digital advancement agenda through the distribution of the micro-insurance umoyo funeral cover which will be beneficial to all airtel subscribers.A few years ago, it would have been impossible to imagine an insurance distribution model of this kind in zambia, however, technology has made this possible and we hope that we will see a lot more of such products coming out of this model.Ladies and gentlemen,it is important to note that both absa and airtel are pan african brands that are providing a wide range of products and services to millions of customers not only in Zambia but across the continent, as such, I have all the confidence that this partnership will be able to meet its objectives and work with the Zambian government for the growth of our economy.Once again, I congratulate absa life zambia and airtel money on this milestone,” he said.

Pensions and Insurance Authority (PIA) manager policy and analysis Namakau Ntini said it was gratifying that the insurance regulator knows that ABSA, Airtel money, and Inclusivity customers are going to be an integral part of this roadmap – partnership.

Ms. Ntini said that previously the uptake of insurance suffered a hindrance due to lack of access however with such an implementation of a digital initiative funeral cover service the aspect of inclusion is realized for customers.

Airtel managing director Manu Sood said the established solutions initiated on partnership is a stepping stone for the telecom firm hence collectively effecting umoyo funeral cover product – service reaching people in far flung areas across the country. Mr Sood said his company was looking forward to interrogate more innovations.

ABSA Life managing director Collins Hamusonde said this collaboration is also driving the use of digital platforms to service customers.

Mr. Hamusonde said the umuyo funeral cover will benefit families to cushion impacts that comes with unexpected loss of beloved ones.

The current account deficit narrowed in the first quarter of 2023 as deficits on both primary and services accounts reduced. The primary income deficit reduced on account of lower investment income following a decline in dividend payments on foreign direct investment. Similarly, the services account deficit narrowed, reflecting lower expenditure on transportation attributed to passenger travel. In the medium term, the current account balance is poised to post a surplus due to a faster rise in exports relative to imports on the back of the recovery in global growth. The recovery is underpinned by a rebound in growth in China, unwinding supply-chain constraints, and subsiding disruption to food and energy markets.

According to Bank of Zambia Governor Dr. Denny H. Kalyalya, “The narrowing of the current account deficit in the first quarter of 2023 is a positive development for Zambia’s external balance. Lower investment income and reduced transportation expenditure have contributed to this improvement. As the global economy recovers, we expect a faster rise in exports compared to imports, which will further strengthen our current account position.”

Credit growth slows down, money supply expands, and economic growth to rebound in the medium-term

In March 2023, growth in domestic credit slowed down to 12.1 percent, year-on-year, from 18.7 percent in December 2022 following reduced lending to the government. However, over the same period, credit to the private sector continued to grow—35.9 percent compared to 34.2 percent. Money supply grew further by 30.0 percent in March 2023 compared to 24.5 percent in December 2022 due to increased credit to the private sector and valuation effects relating to US dollar-denominated credit.

Dr. Kalyalya commented on the credit growth slowdown, stating, “The deceleration in domestic credit growth is primarily driven by reduced lending to the government. However, credit to the private sector remains robust, indicating ongoing economic activity and investment. The expansion of money supply is a result of increased credit to the private sector and valuation effects. It is important to strike a balance between credit growth and maintaining stability in the financial system.”

The economy is projected to slowdown in 2023, and rebound in 2024. This is underpinned by the recovery in agriculture and mining sectors as well as sustained growth in information and communications, manufacturing, transport, and financial and insurance sectors. However, a slowdown in global growth, tight global financial conditions, adverse weather conditions due to climate change, and elevated energy and food prices related to the ongoing Russia-Ukraine war continue to be key downside risks to the growth outlook.

Dr. Kalyalya highlighted the economic outlook, stating, “We anticipate a slowdown in the Zambian economy in 2023, but expect a rebound in 2024. The recovery will be driven by the revival of the agriculture and mining sectors, as well as sustained growth in other key sectors. However, we remain mindful of the potential risks, including global economic conditions, adverse weather events, and geopolitical tensions impacting energy and food prices. These factors require close monitoring and appropriate policy responses.”

Preliminary data from the May 2023 Bank of Zambia Quarterly Survey of Business Opinions and Expectations and the Stanbic Bank Zambia PMITM point to a moderation in economic activity in the first quarter of 2023. This was largely attributed to the depreciation of the exchange rate and increase in fuel pump prices.

Dr. Kalyalya commented on the moderation in economic activity, stating, “The depreciation of the exchange rate and the increase in fuel pump prices have had a dampening effect on economic activity. We are closely monitoring these developments and their impact on inflation and overall economic performance. It is important to address these challenges through appropriate policy measures to support a sustainable and inclusive recovery.”

The Finance and National Planning has announced that the Government released a total of K11.4 billion for developmental programmes and public service delivery in April 2023.

In a statement released by the ministry’s Public Relations Unit, of the K11.4 billion, K2 billion was released for transfers, subsidies and social benefits, whilst K2.2 billion was spent on debt service (domestic and external) and dismantling of arrears, and K3.6 billion was spent on the public service wage bill.

In addition, the Government released K3.2 billion for implementation of various government programmes and general operations.

Finance and National Planning Minister Dr Situmbeko Musokotwane has since called for consistent and effective monitoring of budget execution by all stakeholders in their sectors of operation and interest.

According to the statement, the Minister has affirmed that the implementation of the 2023 budget is on course as all major budgeted programmes are now being funded, considerably.

He has also appealed to members of the public (individual and corporate) to actively participate in the formulation of the 2024 National Budget and the 2024 to 2026 Medium Term
Expenditure Framework (MTEF).

“Dr Musokotwane was commenting in connection with the April 2023 funding report whereby the Government released a total of K11.4 billion for developmental programmes and public service delivery. Of the K11.4 billion, K2 billion was released for transfers, subsidies and social benefits, whilst K2.2billion was spent on debt service (domestic and external) and dismantling of arrears, and K3.6 billion was spent on the public service wage bill. In addition, the Government released K3.2 billion for implementation of various government programmes and general operations,
while K359.7 million was spent on road infrastructure. From the K2.2 billion released for debt service and dismantling of arrears, a sum of K1.6 billion went towards both domestic and external debt payments to multilaterals while the component related to dismantling of arrears for suppliers of goods and services, got K627.4 million,” the statement read.

“Furthermore, the Government released K2 billion towards transfers and subsidies. Notable expenditure items under this category, included:
1) K388.3 million as grants to schools;
2) K275.3 million for the Farmer Input Support Programme;
3) K209.9 million for the nationwide Social Cash Transfer Programme;
4) K436.5 million for the operations of hospitals, other grant aided institutions under various Ministries;
5) K221.2 million for the Public Service Pension Fund (PSPF) for pensioners financing gap and grant;
6) K100 million for the Local Authorities Superannuation Fund (LASF) financing gap;
7) K115.1 million for university grants to ensure smooth operations; and,
8) K111.6 million to the Local Government Equalization Fund.
K3.2 billion was released to facilitate service delivery under various public institutions. Under this aspect, notable
expenditure items included:
1) K436.7 million for the procurement of drugs, medical supplies and equipment (Ministry of Health).
2) K22.4 million for TAZAMA workers’ salaries;
3) K125 million for the Compensation and Awards Fund;
4) K42.5 million targeted at youth skills development through the Skills Development Fund.
5) K24.6 million Tourism Levy for development of Infrastructure in tourist locations; and,
6) K2.7 billion for general operations of Ministries, Provinces and Agencies (MPA’s), of which K631 million went towards public, health, education as well as water and sanitation infrastructure.
K24.6 million Tourism Levy for development of Infrastructure in tourist locations; and,2024 Budget Preparations.

Meanwhile, the Government has started receiving submissions for the 2024 National Budget and the 2024 to 2026 Medium Term Expenditure Framework.

“Over the last one month, the Government has been receiving submissions for the 2024 National Budget and the 2024 to 2026 Medium Term Expenditure Framework. The exercise is aimed at according stakeholders the opportunity to contribute in shaping the direction of economic policy and other development priorities, through an all-inclusive process.In view of the foregoing, the general public, private sector players (micro, small, medium and large firms, inclusive), Government departments and agencies, civil society, youth, women, and all other interest groups (too numerous to mention), are encouraged to continue submitting proposals for tax, non-tax (such as user fees and fines) and expenditure proposals, for our review and possible inclusion in the 2024 National Budget and the 2024 to 2026 MTEF. We are confident that all sectors will take advantage and make their submissions because their participation in the budget formulation process is essential in ensuring that the Government and stakeholders move together in creating a conducive policy environment for business; employment creation; generation of wealth; and facilitating a sustainable future for all citizens and prosperity for the nation,” the Ministry of Finance revealed.

“The guidelines for submissions are as below: 1) Clearly state the sector or policy area of interest for which remedies or stimuli are sought and whether such remedies or stimuli relate to policy, public expenditure, tax, or non-tax measures;
2) Outline the challenges of the current tax and non-tax policy regime and explain how local businesses and other developmental affairs are negatively impacted, as a result;
3) Clearly state proposals for public expenditure and or taxation in line with the Eighth National Development plan (8NDP) and their expected impact on economic recovery and growth, fiscal sustainability, public
welfare, and general public service delivery; and
4) Justify why the Government should undertake the suggested measures and the expected positive impacts, thereof. As a way of ensuring that proposals are evaluated professionally, an inter-ministerial team, will, where necessary,
invite those who will submit proposals for further discussions or clarification on any matter concerning their submissions.In conclusion, we reiterate the appeal by the Minister of Finance and National Planning Dr Situmbeko Musokotwane
for stakeholders to not only monitor budget execution in their areas of interest but also ensure that they actively,” the statement concluded.

Tazama Pipelines Limited, the joint venture between the governments of Zambia and Tanzania, has reported a significant pipeline rupture at KM 839 near M.U.S.T. Iyunga Mbeya, resulting in the spillage of approximately 1 million litres of Low Sulphur Gasoil (LSG). The incident occurred on May 15th, 2023, when a contractor, working on behalf of Tarura, accidentally damaged the pipeline while carrying out road works.

Tazama Pipelines Limited operates a 1,710 km pipeline, transporting finished products from the port of Dar es Salaam to the receiving terminal in Ndola, Zambia. The company owns a tank farm in Tanzania with a storage capacity of 231,000,000 litres and several booster pumping stations strategically located along the pipeline.

Upon noticing an abnormal pressure drop downstream of the pipeline at approximately 13:10 hrs, the operator on duty initiated a line survey and subsequently received a call from the Swaya ward councillor at 13:40 hrs, informing them about the rupture. Tazama’s emergency response team was immediately dispatched to the site, and all necessary measures, such as isolating the affected section by closing valves at KM 799 and KM 856 Songwe, were implemented.

Upon arrival at the scene at around 14:30 hrs, the response team assessed the situation and began containment procedures. Due to the extensive damage caused by the motor grader blade, which created a large hole in the pipeline, additional machinery and equipment were requested from Tazama’s regional office in Dar es Salaam to facilitate repairs. As of now, the team and the required equipment are en route to the site.

Preliminary estimates indicate that the incident has resulted in the loss of approximately 1 million litres of LSG. The costs associated with the repairs, including the mobilization of manpower and equipment, supervisory and administrative expenses, and environmental cleanup, will be determined once the repairs are completed. Additionally, the financial impact of the idle time and loss of business caused by the incident will be calculated.

Tazama Pipelines Limited expects that operations will resume within two days upon the completion of repair works and environmental remediation. It is worth noting that the pipeline’s right-of-way is well-marked, but it appears that the contractor neglected the markings during the road construction activities.

The company assures the public that it is fully committed to addressing the situation promptly and minimizing any further environmental impact. Tazama Pipelines Limited will conduct a thorough investigation into the incident to prevent such occurrences in the future.

The Centre for Trade Policy and Development (CTPD) has issued a press statement expressing deep concerns about the abuse of human rights and environmental violations resulting from irresponsible Large-Scale Land-Based Investments (LSLBIs). The organization calls for immediate government action in strengthening the existing legal framework to protect local communities and their customary rights from the adverse effects of these investments.

As climate change continues to have increasingly adverse impacts on vulnerable and marginalized communities, the CTPD emphasizes the need to address the ongoing environmental degradation and human rights abuses. While the government’s focus on accelerating economic growth and enhancing livelihoods is crucial, it should not come at the expense of environmental sustainability and human rights.

Recent observations have shown that extensive land and forest clearances for investments in agriculture, mining, construction, and manufacturing sectors have led to environmental degradation, land grabbing, displacement, and loss of access to natural resources. Minister of Green Economy and Environment, Collins Nzovu, conducted a fact-finding mission in Mumbwa district, revealing that local pastoral communities have been restricted from accessing communal grazing areas. These findings highlight the abuse of customary rights and the degradation of the environment due to land clearing, contributing to global warming and climate change.

The press statement also highlights the lack of coordination and synergies between the government and traditional leadership in implementing policies and legislation. The case in Mumbwa district is just one example of numerous instances of human rights abuses and environmental degradation resulting from Large-Scale Land-Based Investments (LSLBIs), which disproportionately affect the poor and vulnerable.

Recognizing the government’s efforts to review and develop new policies and legal frameworks, the CTPD commends these steps and sees an opportunity to address the inadequacies in existing legislation. The organization emphasizes the importance of responsible investment anchored on international and national agreed principles, such as Free, Prior, and Informed Consent (FPIC). This principle requires investments to respect legitimate land tenure rights and holders and involve participation in decision-making, transparency, accountability, and equal sharing of benefits and risks.

The CTPD points out that countries like Sierra Leone have enacted legislation, such as the Customary Land Rights Act, to protect customary land rights and apply FPIC principles. Therefore, the organization urges the Zambian government to enhance and develop the legal framework to adequately address customary land tenure rights, ensuring the protection of local communities and the environment from investment abuses. Additionally, the government should integrate customary land tenure rights into the investment assessment and approval process and promote Inclusive Business Models (IBM) that foster equitable sharing of benefits and risks between investors and local communities.