GOVERNMENT has intensified efforts to re-establish a national airline to help boost the country’s tourism sector.

Minister of Transport, Works, Supply and Communication Yamfwa Mukanga said a committee set up for the re-establishment of a national carrier has come up with recommendations which have since been taken to Cabinet for approval.

Mr Mukanga said in Lusaka yesterday that the absence of a national airline has negatively affected the development of tourism, non-traditional exports and other industries that rely on tourism.

“There is a lot of commitment towards the re-establishment of a national airline. The ministry has tabled the recommendations to Cabinet for approval and once this is done, we will go ahead to establish the national airline.

“As a ministry, we want to assure the nation that the establishment of a national airline for Zambia is underway,” he said.

Mr Mukanga said some big international airlines have expressed interest to partner with Zambia on the re-introduction of a national airline.

The minister, who declined to name the airlines as the matter was yet to be tabled before Cabinet, said some big international carriers are keen to partner with the country so that they could paint their planes in Zambian colours and employ local people.

He said other airlines are also interested in buying or financing the purchase of new planes for the country.

Mr Mukanga said government has learnt many lessons in the past and hence Cabinet will assess all the options on the table and come up with the best decision on behalf of the Zambian people.

Mr Mukanga further said many countries have expressed willingness to help Zambia re-establish a national airline.

He said his ministry is also doing feasibility studies to determine how much it will cost government to re-establish a national airline.

The minister said government is working hard to reposition Zambia as an air transport regional hub.

GOVERNMENT has released K1.6 billion to various ministries and statutory agencies in an effort to stay on course with moving public expenditure from predominantly consumption to capital in order to reduce poverty.

The Treasury released these funds between June 30 and July 4, this year so as to stay on course with realignment of public expenditure from predominantly consumption to capital, poverty reduction and employment creation activities.

In a statement yesterday, Ministry of Finance head of media and public relations Chileshe Kandeta said some of the ministries, provinces, and other spending statutory agencies that received funding are Local Government and Housing, Education, Health, Agriculture and Cooperatives, Home Affairs, Chiefs and Traditional Affairs, Defence, and Foreign Affairs.

Others are the Judiciary, Electoral Commission of Zambia, National Pension Scheme Authority (NAPSA), Public Service Pensions Fund, Public Service Commission, the Zambia National Building Society (ZNBS), and various provinces.

The Treasury released K342.8 million for foreign currency purchases, of which K307 million went towards repayment of arrears owed to PTA Bank for fuel purchases, K35 million was shipped to Zambia’s foreign missions for staff emoluments, and K1.8 million was a scheduled external debt amortisation.

These transactions, Mr Kandeta said, had a tow on the exchange rate, however, forex demand is expected to taper-off this week.

Government recapitalised the ZNBS with K165 million from proceeds of the 1 billion sovereign bond.

Mr Kandeta said the funds had significantly improved the resource base for ZNBS.

It was anticipated, he said, that there would be improved onward lending to the public as mortgages in form of home purchase loans, construction loans, home improvement loans, and loans under employer assisted schemes.

The Treasury also released K378 million to the Ministry of Education of which K240 million is for school infrastructure projects in various provinces while K10 million is an allocation for student tuition fees.

The Ministry of Health got K152.6 million for infrastructural projects, of which K95 million is targeted at capital projects and procurement of medical equipment for modernisation of health service delivery in Zambia. The Ministry of Local Government and Housing received K43 million, of which K2 million was appropriated for construction of markets and bus stops.

Mr Kandeta said the Ministry of Defence received K30 million for purchase of earth moving equipment, an important step in ensuring that the local capacity of the infrastructure sector is enhanced and so the Ministry of Finance was optimistic of delivery timeliness and better quality infrastructure works.

For scheduled construction of chiefs palaces, the Ministry of Chiefs and Traditional Affairs received K4 million towards ongoing works.

NAPSA was given K25.3 million while the Public Service Pensions Fund received K21.7 million as employers share towards June, 2014 pension contributions.

The Electoral Commission of Zambia was given K5 million for the forthcoming by-elections.

The Ministry of Agriculture and Cooperatives got K60 million for crop purchases affirming Government’s commitment to the Food Reserve Agency paying farmers on time to accelerate development and poverty reduction at grass-root level.

Meanwhile, Secretary to the Treasury Fredson Yamba has appealed for timely implementation of the programmes which have benefitted from the K1.6 billion funding, not only to maintain the positive growth of the economy, but also to ensure that the implementing agencies take advantage of rain-free weather conditions.

“At all levels of governance, it is also important that everyone familiarises themselves with the statutes, regulations and guidelines on management and administration of public funds to ensure that the intended beneficiaries are touched by these resource outlays, in a timely, positive and sustainable manner.

“We must not wait for the next rains to catch-up, therefore, the Treasury will not hesitate to re-call idle funds being kept by some ministries in commercial bank accounts, for re-allocation to needy programmes,” he said.

Mr Yamba said funds should be utilized for the intended purposes so that the results would be beneficial to Zambians and reassuring to the international community about the Government’s ability to transform the Zambian economy into one of the best in Africa.

The governments of Tanzania and Zambia, who are the two shareholders of the Tanzania-Zambia Railway Authority (TAZARA), have agreed to inject US $80.00 million into the operations of TAZARA in the next 12 months.

Of this amount, US$ 9.20 million is to be disbursed immediately to cater for two months of the outstanding employees’ salary arrears and some working capital.

This came to light during the TAZARA Council of Ministers meeting held in Lusaka, Zambia, on Friday 4 July 2014.

The meeting resolved to inject funds in the Authority following months of low productivity and operational disruptions due to various factors including frequent breakdowns, accidents, unstable labour atmosphere and lack of working capital to pay salaries and procure fuels and lubricants for the trains, all resulting in recurrent work stoppages.

Speaking during the meeting, the Tanzanian Minister of Transport, Harrison Mwakyembe, who is the current Chairperson of the Council of Ministers, said the Tanzanian government was encouraged by the commitment of the Zambian government towards TAZARA.

Dr Mwakyembe reiterated his government’s commitment to look for resources in order to ensure that TAZARA’s operations are boosted for the company’s smooth running.

“We are delighted and greatly encouraged by the unprecedented commitment and support shown by our Zambian partners towards TAZARA.

“In line with the commitment shown by Zambia, I take this opportunity to reiterate our commitment as Tanzania and affirm that we are willing and ready to find resources in order to ensure that TAZARA’s operations are boosted to a level where we shall all be comfortable,” Dr Mwakyembe said.

He said in a statement made available to ZANIS in Lusaka today that the two governments would not allow TAZARA to collapse.

And his Zambian counterpart, Yamfwa Mukanga urged the two countries to enhance their commitment in order to turn around the company.

Mr Mukanga said there was also need for the two governments to find lasting solutions to challenges that the railway line was facing.

“We all must put in what we can so that this company is turned around. If we are all committed, this company will be turned around. We must find lasting solutions,” said Mr Mukanga.
The Zambian minister further said since the two governments were showing serious commitment by heavily investing resources in TAZARA, it would also be expected that management and employees would equally perform.

“Performance will no longer be an option and measures will be put in place to ensure that each and every position is monitored for performance so that those who are not performing are weeded out immediately,” he said.

Also in attendance were the Zambian Minister of Finance, Alexander Chikwanda, Minister of Commerce, Trade and Industry Robert Sichinga, and the Tanzanian Deputy Minister of Finance, Adam Malima.

Others included the two Permanent Secretaries from the Ministries of Transport in Tanzania and Zambia, Shabaan Mwinjaka and Charles Sipanje, respectively as well as the management team of TAZARA.

ZANIS

Opposition Movement for Multiparty Democracy (MMD) Muchinga member of parliament who is also the party’s Youth National Chairperson Howard Kunda says the PF government is slowly destroying the agriculture sector in the country.

Mr. Kunda said since getting into office the PF has systematically destroyed the agriculture set up left behind by the former ruling party which ensured that country had “real” bumper harvests for three consecutive years and ensured that mealie meal prices were low in the country.

He noted that since the PF got into office the agriculture sector’s performance has dwindled owing to the lack of policy direction by the government.

He explained that as youths in the opposition they find it disheartening that the agriculture sector which is suppose to be an alternative source of employment for the many unemployed youths has been neglected by the current government.

Mr. Kunda noted that the PF has failed to completely deal with the challenges as the sector has been facing problems every season making it difficult for small scale farmers who depend on farming for their livelihood.

Mr. Kunda advised the PF to listen to advise as being adamant is not only hurting the farmers but the country at large.

He said the PF should understand that pronouncements should be backed tangible actions which he said the PF seems to be clueless about as they continue making promises and raising people’s hopes without actions to back up their promises.

Mr. Kunda was commenting on the failure by the government to commence the purchasing of maize which the minister announced that would start on 1 July 2014.