The continuous depreciation of Zambia’s currency, the Kwacha, against major convertibles is causing serious problems for small and medium businesses in the country. The depreciation has resulted in higher operational costs, making it expensive to run a local business. This negative trend is impacting businesses at all levels, but it is particularly affecting small and medium-sized enterprises (SMEs) that employ a large chunk of workers (90%+) outside the formal sector.

Silavwe Jackson, President of Global Progressive Zambia (GPZ), stated that “The situation is quickly turning into a serious business nightmare. Local small and medium businesses are experiencing high operational costs owing to the upward swing of the Kwacha. If not arrested, it is only a matter of time local small and medium businesses start to close, unleashing more unemployed people to the already existing 8 million job seekers on the market.”

The issue is compounded by the fact that Zambia’s economy is import-based and consumer-based, which means that the country relies heavily on imports, and consumer spending drives economic growth. The depreciation of the Kwacha has made it more difficult for local businesses to import goods and materials, leading to a rise in prices and operational costs.

To address the issue, the GPZ has called on President Hakainde Hichilema and his administration to provide tax, levies, and statutory incentives to SMEs to reduce the cost of doing business and encourage production. “We call on President Hakainde Hichilema and his administration to provide tax, levies, and statutory incentives to small and medium businesses so as to reduce the cost of doing business and scale up production,” Silavwe Jackson stated.

Other measures proposed by the GPZ include capping the prices of fuel and electricity, government taking over gold and sugilite mining through ZNS to generate more dollars, and creating a new venture fund to support startups in agriculture, mining, manufacturing, technology, and creative arts.

Meanwhile, there are concerns about what would happen to the Kwacha if the country’s debt restructuring efforts fail. According to Dr. Situmbeko Musokotwane, Zambia’s Minister of Finance, the delayed debt restructuring is one of the main reasons behind the Kwacha’s depreciation. “If he were right, then what would happen to the Kwacha if this debt restructuring totally failed?” asked Fred M’membe, the leader of the Socialist Party in Zambia.

“Zambia’s debt is not new, it hasn’t just arisen. The Kwacha was, for some time, appreciating on the back of this national debt burden. It even went as low as K15.89 to the US Dollar under this government. But it is reaching K20.70 to the US Dollar under the same government,” he added.

Ndola District Commissioner Joseph Phiri has said the New Dawn Government is looking forward to the quick implementation of the planned extension of social security coverage safety net to workers in the informal sector.

Napsa has joined efforts with stakeholders among them market associations, Workers Compensation, MTN Zambia and NHIMA to sensitize and register players in the informal sector for social protection.

The targeted informal sector players include marketeers, traders, saw millers, bus drivers, small-scale farmers and taxi drivers.

Officiating as guest of honour during the joint field stakeholder engagement activities in Ndola, Mr. Phiri said social security is a basic human right for all.

“These strategic partnerships will surely enhance the implementations of interventions aimed at extending social security coverage to the informal sector. Let me hasten to say that social security is in fact a basic human right for all. This therefore is an important intervention in the quest to extend social security coverage to the informal sector. It is the desire of the republican president, Mr. Hakainde Hichilema and his new dawn government to improve peoples’ lives. Therefore, strengthening national social protection systems to cover workers in all forms of employment, including those in self-employment, is a key element of reaching universal, comprehensive, and adequate social protection coverage. As government, we will be on hand to ensure that you successfully undertake your mission here in the province so that our people can benefit from the schemes. i want to assure you that we are available to help you resolve any challenges you may face,” Mr. Phiri said.

“As you might be aware, most people who are in the informal sector in Ndola do not have any form of pension or social security system, and this program by yourselves is therefore timely. Allow me to emphasize this point, that it is the desire of this government under the able leadership of President Hakainde Hichilema for all citizens in this country, whether in the informal or informal sector, to participate in some form of future savings such as pension schemes to avoid old age poverty. We have seen how many people in this country, including some of our family members who are struggling to earn a living. We are looking forward to the successful implementation of this programme so that members of the informal sector groups here in Ndola namely, domestic workers, bus and taxi drivers, marketeers, Sawmillers, and small-scale farmers will be registered by NAPSA, NHIMA and WCFCB,” Mr. Phiri continued.

Mr. Phiri said the informal sector in Zambia remains a key pillar in development as it contributes significantly to the country’s domestic product.

He said social security is aimed at improving the livelihoods of thousands of people and protecting them from various predicaments that include old age, injuries and sickness.

“I would like to call on Ndola residents and all the informal sector workers in our province to ensure that you register with Napsa, Nhima and WCFCB. Embracing this important initiative will change your lives for the better. I wish to call on Napsa, Nhima and Wcfcb not to relent but continue spreading the good news of social security aimed at improving the livelihoods of thousands of people and protecting them from various predicaments that we face, including old age, injuries, sickness, death, and other challenges due to lack of social security. I have no doubt in my mind that mass sensitization will be embraced and change the course of social security coverage in our city going forward. This intervention by you will provide much-needed information to our people and give them an opportunity for a dignified life during and after retirement, continue developing strategies and initiatives to drive the programme for the extension of coverage to the informal sector,” Mr. Phiri said.

Zambia is part of the 36 countries worldwide that are currently benefiting from the World Bank and the Global Financing Facility (GFF) supported programme.

The programme, called the GFF Country Leadership Programme, is aimed at equipping countries with necessary skills to strengthen their health care systems on specific health challenges by 2030.

Ministry of Health Acting Permanent Secretary for Technical Services, Alex Makupe, pledged Zambia’s continued support targeted at enhancing service delivery in the health sector.

Speaking when he officiated at a five days retreat programme for Zambia, Dr Makupe observed that good governance skills play a vital role in driving a systematic change in the provision of health care services.

He explained that Zambia is poised to significantly benefit from the programme as it focuses on strengthening its reproductive health, maternal and newborn health.

He expressed hope that the programme will go a long way in accelerating Zambia’s attainment of the 2030 objectives in the health sector.

And World Bank Zambia Task Team Leader, John Makumba, assured that the bank will continued supporting the country in improving the provision of health care services.

Mr Makumba explained that the World Bank will use the Country Leadership Programme to strengthen its area of support for Zambia, which includes tuberculosis, Covid-19, HIV and AIDS, women, children and adolescents health among others.

He said the bank will also collaborate with various key stakeholders in the health sector in order to achieve improved health care outcomes for the population.

Mr Makumba further pointed out that the programme will also be used to reinforce efforts that Zambia has already made in the health sector through its health strategic plan.

Meanwhile, GFF Focal Point Person, Alison Morgan, has congratulated Zambia for the strides recorded in the provision of health services despite the advent of the Covid-19 pandemic.

Dr Morgan said even with the challenges of Covid-19 affecting the smooth running of health care systems, Zambia’s health sector remained resolute and was able to execute its health strategic plan.

She added that the country leadership lies at the core of the GFF’s collaborative model and is crucial to driving transformational change for leaders from across the member of the programme.

The retreat is being attended by former Ministers of Health, former and current Permanent Secretaries in the Ministry of Health, Academicians, health professionals, and civil society organisations in the health sector among others.

Kalene Hills Fruit Factory in Mwinilunga district in North-Western province is scheduled to commence full scale production of various products in the second quarter of 2023.

This follows the acquisition of all the necessary operational compliances and permits from relevant regulatory bodies and the passing of the user acceptance test of its products.

Kalene Hills Factory General Manager, Wilson Sunga, says the firm is now ready to go into full-fledged production and is also set to place its products on the market.

“So the expectation is that within quarter two of 2023, the asset will roll into full-fledged production,” he said.

Mr Sunga told ZANIS in an interview today that the factory will produce a number of products whose production and sample products have already been certified safe for human consumption.

He said the factory is producing bottled water, mango and pineapple juices, tomato based sauces and ketchups, jams and various canned fruits.

The water from Kalene Hills Factory is already on the market.

Mr Sunga explained that the factory is targeting both the local and international markets for is products.

He added that Angola and the Democratic Republic of Congo are prime target markets due to their proximity to the factory.

Meanwhile, Mr Sunga has revealed that at full operational capacity, the factory will create about 200 direct jobs while over 6,000 indirect jobs will be created from out grower schemes.

The out grower schemes are co-managed by World Vision Zambia, Musika and the Ministry of Agriculture.

He explained that the factory will rely on the local market for the supply of feed stock, adding that work is being done to increase the out grower schemes population from the current 6,000 to about 30,000 farmers in the first 48 months of its operations.

In July 2022, President Hakainde Hichilema commissioned the Kalene Hills Fruit Factory in Mwinilunga district.

Tanzania-Zambia Railway Authority (TAZARA) says plans to engage Chinese investors in the revitalisation process of the authority are on course as negotiations are set to commence next month.

TAZARA Head of Public Relations Office Conrad Simuchile says the negotiations are expected to be completed within a year.

Mr Simuchile says the engagement of Chinese investors comes in a wake of the continuous poor performance of the railway authority despite the abundance of potential traffic for TAZARA.

He attributed the Authority’s continuous poor performance to lack of sufficient capitalisation.

Mr Simuchile says the authority’s Council emphasised that it is critical that a lasting solution for TAZARA be found, through the engagement of the Chinese investors.

“The move is in line with the directives of the two Heads of State of Tanzania and Zambia, who met in August 2022 and directed that TAZARA be revitalized quickly, which made the Council to direct the Joint Technical Committee to complete the process of engaging the Chinese investors, who have expressed interest in reviving TAZARA,” He added.

Meanwhile, review of the TAZARA Act has been concluded with the Zambian Government having be given time to review the proposed changes in the Draft Bill in order to align the contents of the Bill with the aspirations of the New dawn administration.

This came to light during the 64th meeting of TAZARA Council of Ministers and was made available through a press statement to the media in Chinsali yesterday.