It’s official! 20th, January 2015 is on – going by the nominations that have been received, vetted and passed by the Supreme Court. Whether people agree or not, there are only two front runners – Hakainde Hichilema (HH) and Edgar Lungu (EL). Going by the number of articles produced every day, it is clear that everyone wants to have a say on the political matters. This has been exiting. Zambia has a wealth of analysts and this is a variable one can use to determine the improving analytical power of Zambians.

I want to be part of this discourse and hence my writing of this short article. I have a number of concerns which I want the political authority to answer to. These centre on both economic and social issues. But for me to present a focused argument, I will for now focus on economic and specifically on investment issues.

We have seen an increase in investment pledges over the years. There is an unpublished report by a named institution which shows that some of the investment pledged to the Zambia Development Agency (ZDA) have not fulfilled. This raises concern over the capacity of ZDA in assessing these investments. HH has placed emphasis on this – and EL has been silent on it.

The second issue I table is the quality of investment. Has the investments translated in meaningful jobs?. Unemployment levels are still high in Zambia – and if there were any recent efforts these could be in the construction sector. But these are just ornamental. If there exists a job creation and industrial strategy,its results are yet to be seen. If one follows the arguments surrounding the way this was developed, it is clear that it was developed with limited consultation especially from private sector. And with this omission, I can guarantee that this will not work unless it is brought back on the table. Edgar Lungu has not made any express commitment to do so. Hakainde Hichilema seems to have made his tracks well covered and proposes a different strategy which will be driven by the principle of inclusivity. If he will stick to this, there could be greater chances of producing better outcomes than what we have seen before.

Unscrupulous investors and incompetence of ZDA and ZPPA

Further, quality should be seen from the context of application and behaviour among investors. This again takes me back to the issue of scrutiny and capacity in ZDA. We should not only be interested in the dollars that are dangled before us but to also look at the character and characteristics of some of these investors. Some of these investors have ulterior motives and precedence teaches us so. We seem not to learn and if nothing is done Zambia will be headed for paralysis. For example, a number of companies have fled or changed names after enjoying the tax holiday offered by ZDA. We have seen government under the PF expropriating ownership of Zamtel. If the arguments government presented were to go by, then the problem rests at the vetting level which is done by ZDA. More recently, I have been intrigued on how some investors are trying to suffocate government processes (both procurement and others) to try and get government contracts.

For example, how does government give (in 2012) Huawei under the Smart Zambia project a contract that is not tendered?

Forgetting that one needs a Zambia Public Procurement Authority certification to get financial aid,Huawei bulldozed through the Ministry of information and got a contract. At the time of applying for funds at a named bank, they were informed that ZPPA endorsement was required. The company found its way through ZPPA and got the certificate in September 2014 (almost two years after the contract was already issued). I have been troubled by the capacity and morality of ZPPA and some ministries.

Again, Edgar Lungu has been silent on the issue of bringing prudence in the granting and application of contracts under the leadership of ZPPA.

As for the opposition, HH and others, this has been their song and this brings comfort. Further, I gather that delivery under the much publicised optic fibre network is also questionable. Am sure senior management at Zamtel are also saddened by the delivery.

I just pray that the contracts awarded to all investors are done in a prudent and professional manner. And Huawei needs to redeem itself from this. South Sudan has tasted a bitter pill where government systems have been suffocated due to under hand methods. Please click here for more information.In this case Huawei, is accused of attempting to send a forged document to the president of export import bank of china on behalf of the minister of broadcasting of Uganda. Huawei is accused to have drafted a letter and sent it to the ministry to be placed on a letter head before sending it to china – a situation which could have resulted into tension between the governments of the two countries. The letter, whose intention was to postpone funding for a Digital migration project awarded to a competing company also from China– I believe, was intercepted by the minister of information. How crazy!!!!!!! Well it is my hope that this is not happening in Zambia.

This all issue hinges on capacity to scrutinize investment. We have hosted number investments in this country and we need to reflect and ask our-selves on what meaningful impact are these investments bringing in Zambia. It is important that come January 20th moving forward, meaningful reforms will be implemented so that we have a win-win scenario and not the imbalance we have.

By K.T

UPND President Hakainde Hichilema has promised to sell the remaining mine and council housing units on the Copperbelt to sitting tenants and expedite the process of issuing them title deeds once elected president.

Speaking when he addressed a rally in Kalulushi yesterday,Mr Hichilema told the gathered crowd how he will tackle the persistent water and sanitation problems that they are facing.

He restated the pledge concerning the retirement age, which he said must be reversed back to 55 together with action to support retirees, stating that he is aware that many are not receiving the payments owed to them.

Mr Hichilema warned voters to be wary of candidates who have already spent some time in positions of power but are only showing willingness to deliver now late in the day and as elections approach.

He told the people that his team will run the country in a way that will generate income which can then be invested in better healthcare and education for all.

The UPND leader says he will run government not in a way that runs up debt, and where money goes to waste on unnecessary government expenditures or simply goes missing.

He says this is because the UPND see government office as a service, and not as a business opportunity.

Mr Hichilema pointed out that he has in his team experienced economic managers who are ready to consult with and listen to civil society organisation, trade unions and employees and business owners.’

In the evening Mr Hichilema addressed members of the Kitwe Chamber of Commerce and mine suppliers and contractors.

They discussed how the government can support those Zambian businesses already in existence to grow, and how government and business can learn from success stories to make sure more can succeed also.

The Zambia National Farmers Union says 2014 has been a year of mixed fortunes for Zambian farmers with many ups and downs.

In her end of year review, ZNFU President Dr Evelyn Nguleka said as farmers tried to remain afloat in 2014, there were also threats of added costs from new fees and levies introduced by local councils and other statutory organizations which eventually are borne by farmers.

Dr Nguleka cited the Workmen’s Compensation Fund which revised the assessment rates upwards without any consultations with stakeholders while parking and loading fees were introduced in some local councils.

She said as farmers’ constantly strive to make adjustments in order to remain in business, government is an important partner in addressing policy induces cost centers and other external factors which farmers’ have no control over.

Dr Nguleka said already, the rainy season has delayed so much and farmers have lamented that this is the worst late rains ever seen in many years which could be sign of an uncertain farming season yet investment in massive irrigation has remained at the back burner of the agriculture agenda.

The ZNFU President said maintaining genuine dialogue is key to avoid springing surprises on farmers saying when farming business thrives, the multiple positive effects are shared by the entire chain including government and society at large.

‘As the year draws to a close, there cannot be a better time to look back at the year that has quickly gone by to take stock. The year 2014 started on a grip of uncertainty as macroeconomic instability set in early in the first half of 2014 as evidenced by continued increase in the annual rate of inflation which reached 8.1% as at end of November which is above the government end of year target of 6.5% and the monetary policy rate was increased to 12% in April and to 12.5 % in November,’ Dr Nguleka said.

She said, ‘Additionally, the Zambian Kwacha continued to fluctuate against major currencies such as the USA dollar and the British pound. These changes in macroeconomic fundamentals negatively affected the performance of key economic sectors such as agriculture because farmers encountered high input costs, high cost of borrowing, electricity and transport against a backdrop of generally declining producer prices of certain commodities.’

The ZNU President said the unstable macroeconomic environment led to government eventually abandoning the radical balance of payment policy measures introduced through numerous SIs (SI 33, 78, 32 & 55) in a bid to repatriate foreign exchange earnings into the country.

‘The overall effects of all these factors translated into reduced competitiveness of local agricultural commodities against imported products and growing uncertainty in the agriculture sector because of evident government policy inconsistency.’

She added, ‘In the same vein, 2014 saw a resurgence of production of some commodities although this was accompanied with marketing challenges. Emerging from the pronouncements of a maize vs. fertilizer barter system policy made in 2013 as a solution to funding FRA purchases, production was predicted to drop in the 2013/2014 season.’

‘However, this was not the case because the private sector came to the party and offered maize farmers attractive prices which gave impetus to farmers, including some large scale farmers, to grow more maize harvested in 2014 than in the previous season plus improvement in yields among small scale and emergent farmers.’

Dr Nguleka said, ‘Hence, against all odds a bumper production of maize estimated at 3.1 million tonnes confirmed by the ZNFU post agriculture production survey was achieved. However, this positive development has been masked by the marketing challenges that ensued as the crop mainly sold to the FRA has remained unpaid for right into the new farming season, a factor which is likely to affect negatively maize production going forward as farmers are disappointed.’

She said the delayed payment for maize to most small scale farmers in 2014 has caused serious cash flow challenges which has made it difficult for farmers to adequately prepare for the 2014/2015 farming season as well as to honour loan repayment obligations with some commercial banks operating in the country.

She said other seasonal crops such as groundnuts, sunflower, millet, rice and tobacco also exhibited growth while soyabeans, sorghum and cotton recorded decline in production.

‘On the other hand, irrigated crops such as wheat and sugar posted remarkable growth. It is gratifying to note that amidst all the challenges that the sector is facing, farmers in Zambia have continued to produce enough maize, wheat, sugar and soyabeans to meet national consumption requirements and export markets are being sought after for the surplus.’

She said that wheat production in 2014 reached 338,000 metric tons compared to 314,463 largely on account of improved yields which hit 7.6 Mt/ hectare from 7.2Mt/hectare reported in 2013.

‘With these strides, Zambia continues to expand export of wheat flour into regional export markets mainly in the DRC and this should be nurtured carefully. The eminent threat to this industry is that of cheap imports of wheat from outside the continent and the high cost of doing business in Zambia which the Union continues to highlight to the authorities in bid to find lasting solutions.’

THE Road Development Agency (RDA) has collected almost K269 million in tolling fees from January to November 30, this year.

In November last year, the RDA launched phase one of the national tolling programme that provides for the collection of toll fees from heavy goods vehicles above 6.5 tonnes at weighbridges and foreign registered vehicles at existing ports of entry.

RDA chief executive officer Bernard Chiwala said the RDA collected revenue amounting to about K230 million from border entry points while over K38 million was collected from weighbridges dotted across the country in the period under review.

Mr Chiwala said in an interview last week that the agency has exceeded the target of K214.9 million for last month with a variance of about K15.6 million, representing a 100 percent collection at port entry.

“The port of entry road tolling revenue was collected at Nakonde, Chirundu Kazungula, Kasumbalesa, Victoria Falls and Katima Mulilo among other border post with Nakonde being the highest contributing K135. 3 million against a target of over K130 million,” he said.

A total of K38 million was collected from tolling fees from the Kapiri Mposhi, Kafulafuta, Kafue, Solwezi, Livingstone, Mpika, Kazungula, Mwami and Lusaka.

Of the sites, Kapiri Mposhi weighbridge collected the highest revenue of K9.4 million last month from a target of about K7 million representing, a 25 percent growth.

“We have done extremely well both for weighbridges and port of entry. The target that we had set was to ensure that loading should not be more than five percent [and] we have been able to achieve that…We have [also] been charging those that have been overloading,” he said.