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Heated debate got underway in Parliament today on a motion meant to urge government to provide a roadmap for the enactment of a new constitution.
UPND Mazabuka Member of Parliament Garry Nkombo moved a private member’s motion for the house to urge government to provide a roadmap for the enactment of a new constitution and also to expedite the process considering that the work of the Technical Committee on Drafting the Constitution has been completed and is ready for submission.
In moving the motion, Mr Nkombo outlined the country’s history of constitution review processes starting with the Chona Commission of 1972, the Mvunga Commission of 1990, the Mwanakatwe Commission of 1993, to the Mung’omba Commission of 2006.
Mr Nkombo said there was need for the government to posthumously honor the people who led the processes of constitution review but have since passed on.
Mr Nkombo further made numerous references to statements on the constitution by President Michael Sata while in the opposition including the promise to deliver a constitution within 90 days.
He stated that President Sata’s statements on the constitution lately have been worrying.
He says there is need for the PF government to respect the process of constitution making which they started on their own.
And seconding the motion, MMD Chembe Member of Parliament Mwansa Mbulakulima urged the PF government to fulfill all the promises President Michael Sata made on the constitution making including when he made his first address to the National Assembly.
Mr Mbulakulima says President Sata has shown a lack of interest in the constitution making process considering the statements he has been making.
And contributing to the debate on the motion, Justice Minister Wynter Kabimba said the promise to deliver a constitution in 90 days was made out of knowledge as to the levels of corruption and mismanagement of the affairs of the state by the MMD government.
National Arts Council Chairperson Mulenga Kapwepwe
Prominent artiste Abdon Yezi has called for a cease fire between Mulenga Kapwepwe and the Saboi Imboela faction concerning the leadership of National Arts Council.
In a statement, Mr Yezi who is proprietor of Yezi Arts said he is compelled to call for restraint and end to the unfortunate attacks that have characterised the National Arts Council (NAC) Saga.
He said it is unfortunate development particularly that it has become demeaning to not only the persons but attacks on each other’s characters.
Mr Yezi said the character assassination is unprecedented and uncalled especially that the arts fraternity know all the personalities and hold all of them in high esteem.
He said Ms Kapwepwe and Ms Imboela are personalities with rich professional and academic credentials and public standing in society.
Mr Yezi has since suggested that the industry holds an Indaba to discuss issues of development in the sector rather than the personality crisis that it has been subjected to.
“We need an indaba and in addition, NAC or the otherwise Commission to be established are public institutions in which people should go to serve and diligently account for the actions they take.,” he said.
He added, “While the artists are not a homogenous group, to the outside world each one of us are considered as artists and the fact that it is artists who are daggers drawn our repute continues to be dented unnecessarily. The concerns raised at any given stage of this debate are genuine and should not be relegated to personal interests. The slow pace of development of the arts and cultural sector is of concern to all industry practitioners.”
Mr Yezi said, “Zambia lags behind, and that is the fact, and the solutions for its development squarely lies in the industry practitioners. The answers are not in one individual or the other but as a collective response. Specifically to what has been obtaining in the last couple of weeks, we have heard the different concerns, criticisms, and in some instances emotive positions. It is enough.”
He added, “Sadly, we also observe that no mechanism, within the National Arts Council or indeed the parent Ministry exists in times of conflicting positions as these. This is yet another very unfortunate development because by this time even the ‘warring’ parties would have been called to seek amicable options than the annoyance that continues through the media.”
“Can we please have our INDABA to discuss issues of development in the sector rather than the personality crisis that we have been subjected to. In addition, NAC or the otherwise Commission to be established are public institutions in which people should go to serve and diligently account for the actions they take,” he said.
There has been raging debate about the continued stay in office of current NAC Chairperson Mulenga Kapwepwe with Saboi Imboela formerly of the Shatel fame spearheading the debate.
Government says the altitude of the opposition Members of Parliament (MPs ) is delaying the constitution making process.
Vice President Guy Scott says there is no reason why the opposition MPs bother him in the House when they had an opportune time to clarify over the same matter last week.
He referred his concerns saying Justice Minister Wynter Kabimba had during the time in question had issued a ministerial statement in the House on the same matter
Dr. Scott said it was surprising that no single opposition MP had queried Mr. Kabimba during his presentation.
“I didn’t see and hear any single question from the opposition MPs when Mr. Kabimba was on the floor presenting the ministerial statement. So why bother me instead of him (Kabimba). I’m receiving more questions on this subject matter than the Justice Minister,” the Vice President said.
He was responding to a question raised by PF Kaputa MP Maxas Ng’onga who wanted to find out the government’s position on the constitution making process.
This was during the Vice President’s 30-minute question time in the House today.
Early this week, Justice Minister Wynter Kabimba said the opposition should take the blame for the delay in completing the constitution making process.
Mr. Kabimba said if the MMD and UPND MPs had not resorted to the avenue of demanding for the constitution through parliament, remarkable progress in the matter would have been made.
He told a media briefing and charged that the opposition MPs should be held accountable for causing delays to the constitution making process by engineering premature parliamentary adjournments that are disrupting the business of the house.
Yesterday, President Micheal Sata assured the nation and various stakeholders including foreign diplomats that his administration remains committed to the constitution review process.
Mr. Sata said at State House when he held a closed door meeting with diplomats accredited to Zambia that after he receives the final draft report from the technical committee, Cabinet will consider the recommendations taking into consideration logical and financial repercussions so as not to derail other important national programmes.
Meanwhile, parliament heard today that corrupt elements in the civil service including private public institutions would sternly be dealt with.
Vice President Guy Scott told the House that the anti-Corruption Commission, other law enforcement agencies including the Auditor General’s Office expects the system to work.
Dr. Scott further disclosed that the PF Government has demonstrated political will to fighting corruption in the country especially perpetrators cited in the 2012 Auditor General’s Report.
On job creation, Dr. Scott said 600,000 jobs have so far been created by government in 2 years and five months since the PF came into power.
And Dr. Scott has attributed to the disasters currently being experienced in the country as due to sub-standard works.
He said the houses, schools and clinics that are collapsing in the country were due to poor workmanship.
The Vice President however assured that Government has employed qualified Engineers to beef up the Disaster Management and Mitigation Unit under his Office to deal with calamities in a technical manner.
“There is too much sub-standard infrastructures across the country but the PF Government is working tirelessly to change the obtaining situation,” he said.
KAPA187 : For those who don’t know , who is Duncan Sodala ? DUNCAN SODALA : Duncan Sodala is a young entrepreneur, owner of Slam Dunk Records, Manager of Zone Fam and the artist known as The Holstar.
KAPA187:How do you balance being a rapper and being the CEO of slam dunk records and manager of Zone fam . Which job takes priority ?
DUNCAN SODALA : I allocate the required for each task accordingly, none of them takes priority. I take pride in my work so I make sure I do everything to the best of my abilities.
KAPA187 :What challenges did you face in getting Slam dunk records started ? apart from Zone fam ,which other artists are signed to the label .
DUNCAN SODALA : In the beginning of course we had financial challenges but eventually our popularity grew and we started re-financing our careers from performance and appearance fees. Right now I am also working with Original Zone Fam member Al Kani, Chisamo and Chaa.
KAPA187 :How has the zambian music industry ,in particular rap music , changed since you first got into it ?
DUNCAN SODALA : The audience has gotten bigger! Radio loves Hip Hop and people are actually making a living out of their art. There is a still need for a bit more structure to the industry but we are getting there.
KAPA187 :Zone fam recently won Zambia’s very first Channel O awards , what in you opinion do Zambian artists need to do in order to make their music more appealing outside Zambia.
DUNCAN SODALA : There is alot that can be done such as working with artists and producers from other Countries. We need to make ourselves more visible – so the need to make memorable visuals that can be seen across Africa and the Globe is a given.
KAPA187 :How important is it for zambian artists to have a professional manager ? why do you think some artists find it unnecessary ? DUNCAN SODALA : It is very important – we first realized that as Zone Fam when we made an appearance on the Big Brother Stage assigning tasks to a manager makes like easier for the artists who can then focus on making good music and creating amazing performances. Some Artists may feel like splitting money with a Manager is retrogressive – In the long run its the best decision of ones career.
KAPA187 :As a rapper you are known as Holstar . How did that name come about ?
DUNCAN SODALA : A couple of years ago – I Hosted Rap Freestyles at home – so somewhere along the way it evolved from Host to The Holstar to now just Holstar.
KAPA187 :Tell us about your latest EP , ” God ,Life .City ,Time ” what can your fans expect from it .
DUNCAN SODALA : This particular EP is a more personal look at my Life and Hip Hop Journey. I worked with different producers i.e Dida, Beezy, Rox and Shinko. I also had vocals contributed by Wezi and Jay Rox.
KAPA187 :What kind of subject matter do you cover in your music ?
DUNCAN SODALA : I cover a wide range of subject matter in my music, from Love to Life to World affairs. I tend to be very abstract in my delivery but I’m working on toning it down.
KAPA187 : You have done collaborations with artists from Nigeria and other parts of Africa . How important is it for zambian artists to branch out and do more international collaborations .
DUNCAN SODALA : Like I said before its very important for us to work with others – this is what will open doors for us across borders. Our first Mixtape was with Teck-Zilla from Nigeria and that open alot of doors for us in other Countries and instantly broadened our audience.
KAPA187 : What is your take on award shows like Born n Bred and Zambian music Awards , are they beneficial to the music industry .
DUNCAN SODALA : Of course the Awards a very beneficial to the industry. It feels good as an artist to win something and get recognition. It also pushes those that didn’t win to work harder – making it competitive. I see the Awards getting bigger and soon enough they will attract people from outside to pay attention to what we are doing in Zambia.
KAPA187 : Before we end this interview ,let me put you on the spot . Who are the top 5 rappers in Zambia at the moment?
DUNCAN SODALA : Wow, this is a tough one! I won’t pick Zone Fam or my affiliates because they will say I’m being biased so I will go for – Chef 187, Marvel, Stevo, 32 Karat and Twenty 6 (Zambian based in Namibia)
KAPA187 :Any last words for your fans .
DUNCAN SODALA : Thank You for the support, we wouldn’t be still doing it if it wasn’t for you. Big things happening this year – at least alot more visibility for me. Zikomo Kwambili
Yesterday we spoke about the comedy of appointing a commercial branch manager as deputy governor in charge of operations at the Bank of Zambia (BOZ). Today we saw it fit that we reinforce this concern by stating, though briefly, the dangers of having such ill qualified individuals at the helm of central banking. No disrespect to them and their families whose salaries have risen exponentially overnight, but it’s important that we realise the danger to the economy beyond a well networked individual.
The PF’s targets to keep the rate of inflation consistently below 10 percent per annum and its performance is judged by the effectiveness of the monetary policy to help achieve the inflation target and maintain and create employment. This dual aim requires a serious understanding of macroeconomics that can never be found nor taught in any central banking course nor experience acquired from running a branch along Cairo Road. The USA, for their Federal Reserve Bank, have reserved, the role of Chairman for the Reserve Bank to eminent macroeconomists who have devoted their lives to understanding the economy. It is not a fluke that therefore when America sneezes we call catch a cold.
Despite continued calls for BOZ autonomy, the PF government has, like its predecessors, made sure that the BOZ remain de facto under the control of the Ministry of Finance and the monetary policy hostage to the fiscal requirements of the government. Now, more than ever, with huge fiscal deficits, I suspect it should make sense for the government to hold the BOZ even under heavy hostage to its fiscal requirements.
Intentionally or unintentionally, whether knowingly or indeed unknowingly, advised or not, the PF led government has now confused the qualifications of a central banker with those of a commercial banker. It has been appointing commercial bankers or persons with no macroeconomics background or policy experience as governors and deputy governors. A commercial banker cannot become an effective governor/deputy governor because he/she is trained in totally different skills. The skills required for central banking and those for commercial banking are like those of an aircraft engineer and a locomotive engineer. Yes, they are both ‘engineers’, but they engineer different engines so we should not confuse the two at all!
By tradition, and as a matter of necessity, the deputy governors used to be selected from among the senior career staff of the BOZ to ensure that an outside governor would have the services of his deputies with practical experience in central banking and institutional memory to provide historical perspective in the management of the BOZ. The PF-led government has broken this noble and effective tradition and appointed commercial bankers as deputy governors of the BOZ according to the government’s political preferences.
The PF-led government is thus making sure that the governors/deputy governors it is appointing are willing to remain under its control. Furthermore, they have to be weak and vulnerable enough to subordinate monetary policy to the financing requirements of the budget and the banking system subject to the interference of the Ministry of Finance.
In a time such as ours when we are faced with huge budget deficits and a falling exchange rate and slogans of Link 8000 and more mega infrastructure to hoodwink votes in 2016, the greatest recipe for economic governance failure is to have puppets at the central bank that will do as instructed without questioning the authorities.
We feel the recent appointments may breed such. A grave side effect of the appointment of governors without merit such as being done by PF is that the contribution of the BOZ in macroeconomic policy formulation and in handling the international financial institutions may be questioned heavily, and lead to low confidence in the way we govern our affairs.
A systematic degradation of the office of the governor and deputy governors may be very costly for the country. With a huge budget deficit and high domestic and international debt, we need to guard ourselves against the temptation of resorting to the old trick in the book of printing money, —- the one Uncle Bob next door resorted to when he appointed commercial bankers as central bank governors, or further borrowing.
Indeed, the present state of the BOZ may be deemed poor, but it will go down further if incompetent ‘yes mwami’ men and women are appointed as governors or the government shows an inability to differentiate between commercial and central banking and appoints and sustains other commercial bankers as governors and deputy governors. Unfortunately, it seems the government has already failed to differentiate between the two, and have already fallen prey to the economic governance gimmicks of appeasement and quick fixes.
But that said the BOZ needs to understand that it is a professional — not political — institution and that its governors have a statutory national responsibility without having a blind commitment to a particular government. At the same time, the political leadership of the country needs to understand that economic recovery and price stability will come with strengthening, not weakening, vital economic institutions like the BOZ. Recent appointments surely serve to weaken such important institutions.
What is needed at BOZ is a competent macroeconomist with appropriate experience in policymaking to be appointed as the governor and likewise deputy governors too, allowed to function professionally and then held accountable for the formulation and conduct of monetary policy to control inflation and promote private sector investment and economic growth in coordination with fiscal and exchange rate policies.
A submissive governor and an ineffective BOZ do not serve the national interests that even the PF have at their heart. Enough said, the real test of the PF-government will be beyond the qualifications, calibre and competence of the its governors at the bank—It will be their performance in controlling the volatility of the kwacha and keeping inflation at the government target level while promoting growth and employment.
Three Kampala City Council Authority (KCCA) players are racing against time to be fit for Saturday’s 2014 CAF Champions League tie against Nkana in Uganda.
The KCCA trior with injury concerns are key striker Tony Odur, defender Habib Kavuma and keeper Salim Jamal.
They sustained knocks in the first round, first leg that finished 2-2 at Arthur Davies Stadium in Kitwe.
However, Kavuma started light training on Wednesday.
“We are monitoring him closely but he should be fine by Saturday,” KCCA coach George Nsimbe said of Kavuma.
And Nsimbe is upbeat about KCCA’s chances of advancing to the next around on Saturday.
“The players are aware of that but qualification is the most important thing at the end of the day. To qualify, we probably have to win the game on Saturday.”
Meanwhile, Nkana arrived in Kampala on Wednesday night ahead of Saturday’s match in Uganda.
An economist has observed that Zambia’s economic growth of about 5.5 percent in the last ten years has not resulted in an improved social welfare of the people in communities because of high unemployment levels amongst youths and women.
Professor Oliver Saasa, who is also Mulungushi University Chancellor, has noted that the country has in the last ten years posted about 5.5 percent growth in gross domestic product (GDP) which he said has not translated into real improvement in the social welfare of its people.
Prof. Saasa said statistics from the Central Statistical Office (CSO) show that about 83 percent of the country’s population was in employment but observed that 75 percent of this is found in the agricultural sector where the youths and the majority of poor people belong.
He explained that youth unemployment remains a major challenge in Zambia because of various factors that include lack of entrepreneurial skills, poor policy direction and lack of employment opportunities in the formal sector.
Prof. Saasa was speaking at the youth conference dubbed ‘shaping our Future, which was organized by the British Council in Lusaka yesterday.
He stated that over 70 percent of Zambia’s population comprises of the youths and 75 percent of them are unemployed and do not contribute to the growth of the country.
He stressed that 250,000 young people graduate from schools every year without skill to enable them be employed in the industries.
Prof. Saasa said this has further contributed to the high level of unemployment in the
country.
He observed that government should looks at the employment policy for young people and equip them with skill in order to deal with the high youth unemployment.
He has meanwhile bemoaned the unequal distribution of the country’s wealth stating that 10 percent of people control 80 percent of Zambia’s riches leaving the majority with fewer opportunities.
And speaking at the same function, British Council Country Director Wayne Harper pointed out that imparting entrepreneurial skills in youths was very critical to the country.
Mr. Harper explained that the council was determined to empower young people with skills through the various programmes in order to position them for employment.
He further observed that unemployment amongst youths was high in the country hence the decision by the council to host the conference for young people.
Authorities at Mazabuka Municipal have swung into action and closed down two infamous guest houses in the township that were allegedly being used as brothels.
Council Public Relations officer Beauty Undi confirmed the closure of Kasamba and Jeppa guest houses to ZANIS in Mazabuka yesterday.
Ms.Undi stated that the closure of the two guest houses that were harboring female prostitutes has been necessitated because the proprietors had contravened and abused council by-laws.
She disclosed that the two guest houses contravened the Public Health Act as well as Local Government Act on street vending and nuisances by allowing themselves to operate in unsanitary conditions as well as misuse the facilities by conducting short time services.
Ms.Undi charged that the local authority received several complaints from members of the public over the poor state of the two guest houses.
She said owners of the two guest houses apart from being charged with the offence of operating in unsanitary conditions and misuse of guest houses have also been asked to avail the council with approved building plans and designs.
“We have since asked the owners of the two guest houses to avail the council with approved building plans and designs because the construction of the two buildings leaves much to be desired in that the rooms have no any sort of air ventilation,” she charged.
Ms.Undi warned that the council will not sit back and watch guest house owners abuse their facilities by conducting illegal businesses.
She disclosed at the time of the closure, 10 rooms were found to be occupied with an undisclosed number of female clients at Jeppa guest house while 8 rooms were also occupied with female clients at Kasamba.
Angry Patriotic Front cadres led by Itezhi Tezhi district chairperson Beaton Manje have descended on the District Commissioner’s office demanding his removal.
The uncompromising cadres locked the office of the DC Roy Nang’alewa and grabbed the keys of his official vehicle.
The cadres who marched from Masemu area arrived at the DC’s office around 09:00 hours yesterday and ordered government workers to move out.
The cadres are reportedly infuriated by reports that the DC who is reportedly on local leave still goes to the office.
The PF cadres questioned why the door to his office was open instead of being locked.
Recently, PF constituency chairperson Namakau Kaingu accused the DC of blocking the work of the party in Itezhi tezhi.
Ms Kaingu made the allegation when Vice President Guy Scott visited the area two weeks ago.
She said there was no way they could have a DC who was hindering the progress that the party was making in the area.
Ms Kaingu further said the party was not happy with statements attributed to the DC on the Zambian Watchdog where there are statements discrediting the PF government.
But Police in Itezhi Tezhi resolved the matter and later re-opened the offices.
Meanwhile, Irate Mkushi Residents believed to be Cadres from the ruling Patriotic Front(PF) Party locked up the offices of the Council Secretary(CS) on Thursday.
PF Central Province Chairperson Benson Chali confirmed to ZANIS that District and Constituency Officials had acknowledged that the Cadres had locked up the offices as a gesture to protest against the District Council Secretary.
Mr. Chali explained that the Cadres complained that they had grievances against the CS that are related to working culture as well as alleged indifference towards the PF Party structure in the District.
Mr. Chali said that the Cadres alleged that the CS worked in isolation as they believed that he executed all the decisions without consulting the Councilors in the Council Chamber.
He said that Cadres were also critical of the work culture of the CS, saying that he allegedly did not designate work to the Deputy CS whenever he was out of the station.
He cited the issue of the plots that were advertised for sale by the Council, saying that the CS had monopolized the decision making with regards to fixing the prices of the plots.
Mr. Chali said that it was not surprising that the sales of these plots had disappointed as the K50 per square meter price was deemed to be too expensive by many people.
He said that the manner in which the CS is believed to have handled the sale of plots had only resulted in making Mkushi a very expensive location to buy Titled plots.
He mentioned that apart from the dissatisfaction with the CS, Cadres were also unhappy with the employment trend at the Council, explaining that several people from outside Mkushi are said to have taken over jobs that included CDEs(Casual daily Employees).
Mr. Chali appealed to the Public Service Commission to look into the matter, adding that it was saddening to learn that the Council’s Fire department had recently employed 7 untrained people from outside Mkushi.
He said that this employment trend was also contributing towards precipitating the Cadres anger towards the Council.
Meanwhile, Management at Mkushi District Council declined to comment on the issue involving the PF Cadres and the CS Everty Ng’andu.
Kobil filling station. Picture by ROYD SIBAJENE/ZANIS/MONGU
Mongu district has been hit by a fuel shortage which has paralyzed both government and business activities in the district.
A check by ZANIS yesterday morning found a queue of motorists at Kobil filling station searching for the commodity.
One of the motorists Mwambo Mbikusita complained that the shortage has negatively affected business in the district.
And Moses Misapo noted that most motorists have packed their vehicles due to lack of the fuel in the district.
However, Suban Filling station Manager Abdinur Yasin told ZANIS in a separate interview that the situation is being addressed from Lusaka and that supply would soon be restored.
Meanwhile, the four major filling stations in Mongu including Kobil, Suban, Total and Puma have not received fuel in the past two days.
A 42 year old woman of Chinsali has been arrested for allegedly murdering her 50 year old husband.
Peggy Chewe of Makoba village in chief Nkula’s area in Chinsali district of Muchinga province was arrested yesterday around 11:00 hours.
The arrest has been confirmed to ZANIS in Chinsali yesterday by Muchinga province deputy police Commissioner Bonny Kapeso.
Mr. Kapeso said Chewe hit her husband with a stick on the head after a domestic dispute erupted on Tuesday around 20: 00hours after he followed her at her house.
He said the deceased sustained a deep cut on the head and later went to his home where he died in his sleep.
It is believed that the couple Chewe and Bupe where on separation for over two years.
The body of Bupe is currently lying in Chinsali district community hospital mortuary awaiting postmortem while Chewe is detained at Chinsali central police station and will appear in court soon.
Mr. Kapeso has since warned people in rural areas not to take the Law in their own hands when aggrieved.
President Michael Sata, First Lady Dr Christine Kaseba, Speaker of the National Assembly Patrick Matibini and Mrs Matibini walks towards Parliament buildings at the official opening of the House in Lusaka
Speaker of the National Assembly Patrick Matibini has has advised parliamentarians against engaging him into partisan politics.
Speaking in parliament yesterday, Dr. Matibini urged the MPs to choose platforms where they could discuss matters of politics but not in the House.
Dr. Matibini also said that he is monitoring the continued absence of some opposition Members of Parliament (MPs) during proceedings in the House.
Last week, the speaker formally received two complaints against the opposition MPs who included those currently serving in the Privilege Parliamentary Committee and assured that the complaints would soon be processed accordingly .
The Speaker disclosed in parliament yesterday that the absence of the opposition members was unjustified and expressed displeasure at the development.
He reminded the members to be fully committed and attend all parliamentary business.
Most of the opposition MPs mainly MMD and UPND seats were desertedtoday in the Chamber prompting Kafue MP Mr. Obvious Mwaliteta, who is also Central Province Minister, to rise on a serious point of order to which the Speaker accordingly advised.
Dr. Matibini said this when he made a ruling in the House today following a point of order raised by, Mwaliteta who wanted to find out if UPND MPs were in order to continue absconding from the House during parliamentary debates.
“I have explained this before that the continued absence of the opposition MPs is totally inexplicable. I must remind you all honourable members of this House that you must be present in the House during deliberations at all times. l will continue monitoring the situation which is unjustified at the moment but l can assure you that action will be taken sooner than later,” the Speaker said.
ames Thornton – BRITISH High Commissioner to Zambia
The British High Commissioner to Zambia James Thornton has said that it has become increasingly clear that Zambia’s own actions will determine its future. Speaking yesterday on the challenges facing Zambia over the next 15 years in regards to economic development at the “Shaping our Future” Conference at Radisson Blu hotel, Mr Thornton said that it was up to Zambians to determine how the country develops in the next years and decades.
The one-day conference, hosted by the British Council, brought together current and future Zambian leaders to discuss private sector investment as well as innovation and skills development among young people.
Below is the full speech
SPEECH FOR SHAPING OUR FUTURE CONFERENCE, 6 MARCH 2014
Wayne Harper, Country Director, British Council
Senior Government Officials
CEO’s present
Distinguished guests
Members of the press
Distinguished guests, ladies and gentlemen
All protocols observed
I am delighted to be speaking at this conference, organised by the British Council with substantial funding from the High Commission.
The British Council has a well-deserved high reputation here in Zambia, doing important work on education and entrepreneurship. It is great to welcome the Council’s new Director, Sean Harper, to Zambia. I am sure he will lead the organisation to yet greater heights.
I want to talk today about the challenges for the future that Zambia faces.
I think it is increasingly recognised that it is Zambia’s own actions that will determine its future.
We learned the other day that Zambia’s GDP is 25% larger than previous figures had indicated.
That puts Zambia much more firmly within the ranks of lower middle income countries.
The United Kingdom, through our Department for International Development, commonly known as DFID, has a long-standing presence here and is doing work in a wide range of areas.
Its contribution is substantial – yet also very small.
Substantial because it amounts in this UK financial year (April 2013 to the end of this month) to over £70m. That is about Kw690m at today’s exchange rates. That feels like a lot of money. Small because it amounts to less than half a percent of Zambia’s recalculated GDP.
We want to make a difference to Zambia’s prospects, but with only half a percent of GDP to play with, we have to work hard at it. Increasingly we look at what we do to support institutions or economic structures that will themselves deliver bigger changes than we would be capable of on our own.
All cooperating partners combined now spend in the order of 4% of Zambia’s GDP – a sum now less than the tax raised from the mining sector.
So what does Zambia need to do to ensure a bright future?
How Zambia develops over the next years and decades is up to you.
I think there are eight things that the country needs to think about.
(People tell me that you should make only three main points in a speech. They are right. But I am sure you will be able to follow me.)
1. Vision for the economy
Firstly, Zambia needs to consider broadly what sort of economy it wants to have twenty years from now. What sort of economic production do you envisage taking place?
Once that has been worked out, then you need to work out what conditions need to be put in place to encourage the development of such production.
The Government is currently revising the Sixth National Development Plan. I hope that the revised version will have clarity about those two issues.
2. Mining
The second issue is mining. I assume that, given the country’s copper reserves, mining will be part of that vision for the economy of the future.
In recent years Zambia has been very successful in growing its mining sector. Since 2000, at the time of the privatisation of the mines, copper production has grown from 257,000 tonnes per year to 850,000 tonnes in 2013.
Clearly a lot of investments that were begun some years ago are still in train and have yet to come on stream.
But I am not aware of many recent announcements of major new investment decisions.
If new investments are not being embarked on, we need to ask why, and whether anything can be done about it.
3. Diversification
My third point is about diversification away from mining.
The increase in mining output has been the main driver of Zambia’s phenomenal economic growth over the last dozen years or so. Without it, Zambia would still be struggling to reach lower middle income status.
But sooner or later, the easier to extract copper reserves will be used up. Production will plateau and will eventually decline. Zambia needs to think about how the current mining boom can be used to lay the foundations for broader economic development.
For that, the income from mining needs to be used well, to invest in physical infrastructure and, even more important, the development of human capabilities.
Actually, of course, people have been talking about the need for diversification away from mining for a long time now. Ten years, to my knowledge; but I suspect in reality for much longer than that.
Some diversification has clearly taken place. So-called non-traditional exports have been rising in the last eight to ten years. A lot of the non-traditional exports have been agricultural products, but they also include light manufacturing.
But it seems to me that there needs to be a debate about why more has not been achieved in this area.
One issue is the exchange rate. People are worried about the falling Kwacha. But the value of the Kwacha stabilised in about 2002 at about 5,000 to the dollar. There has been some fluctuation since then, but today’s rate, twelve years on, of less than six rebased Kwacha to the dollar is not a big movement.
Furthermore, there has been a lot of inflation in those twelve years. In real terms, the value of the Kwacha has increased significantly.
There are clearly disadvantages to a falling Kwacha. But one advantage of a Kwacha that was weaker over the long term would be that local production would find it easier to compete against imports.
4. Governance structures
The fourth thing a country like Zambia needs to do is to ensure that governance structures are right.
Governments need to be able to make effective, properly thought-through decisions for the benefit of their people.
Governments raise their money through taxation of individuals and companies. No-one likes to be taxed. It is important that government services are delivered effectively, with constant vigilance to ensure there is no wastage or syphoning-off of tax revenue.
It is only through good governance that mining revenues will translate into inclusive growth. It is these structures that make sure that funds are collected and managed in a transparent way for the benefit for the country.
The rule of law needs to be policed through an efficient judicial system.
Much of what the government does has an impact, either positive or negative, on business.
In the UK an assessment is done on the impact on business of every single regulation or piece of legislation, before it is brought in. This assessment is premised on strong consultation with businesses themselves.
The Zambian Government is spearheading such a process here. We are supporting them through technical advice from the UK’s better Regulation Office. But the key thing will be for it to be implemented properly by all the line ministries.
If done well, this assessment process should, over time, make Zambia an easier place for both domestic and foreign businesses to operate.
5. Education
The fifth thing the country needs to focus on is education. Like Nelson Mandela puts it “Education is the most powerful weapon which you can use to change the world.”
The OECD, a policy forum based in Paris, looks hard at drivers of economic growth. It says that the biggest single factor affecting long-term growth is education.
Zambia is good at getting children to enrol at primary school. But the government recognises that standards of education in schools are low. DFID is working with them to remedy this.
The type of education you receive is crucial. Do you just learn facts, or mathematical techniques? Or do you learn to think, to construct arguments, to solve problems?
It is because we insist on the development of such skills that British universities have such a good reputation. Many Zambians have discovered that at first hand by studying in the UK.
We also have globally recognised qualifications in vocational and professional subjects. Our host today, the British Council is administering over 40,000 UK examinations to over 15,000 candidates a year in Zambia.
With the world leaning more to a knowledge economy it is becoming increasing easier to get a more rounded education. With the increasing access to smart phones and internet penetration it is my hope that education services will become more accessible.
6. Entrepreneurship
The sixth thing the country needs to do is to promote entrepreneurship among its people.
Other countries have entrepreneurs who have really made it big. One thinks of Aliko Dangote of Nigeria.
There seems to be very few companies of any size that are owned by indigenous Zambians. I am not sure why that is.
I know that there are a lot of new entrepreneurs here – Bongo Hive is a good example.
What is it that will help small Zambian companies grow into large ones?
The Zambian Government is keen to develop SMEs. The increase in the capital requirements for banks here was intended to raise the amount of money available for companies to borrow. And the caps on interest rates were imposed in an attempt to ensure that companies could borrow at sensible rates.
You will have your own views as to whether the measures taken were the most effective ones to achieve the intended aims.
DFID is about to start a programme to look at the obstacles to SME creation, and to propose technical solutions.
7. Foreign investment
However, home-grown enterprise will take time to expand. In the meanwhile there is a particular need for foreign investment. The seventh task for Zambians is to ensure that the country is an attractive place for foreign companies to operate.
I will say a bit more about this theme, as it is of course of direct relevance to British companies!
There is of course intense competition for foreign investment. Every country wants to attract it.
The United Kingdom puts a lot of effort to attracting companies from overseas to set up operations in our territory and create jobs there.
I am sure all Zambia’s neighbours are doing the same.
I know that many multinationals consider many more investment projects than they have the capital to pursue. We will never get to hear about the ones they reject.
To put it bluntly, Zambia has to beat the competition. Competition not just from neighbouring countries but also from other producers in the developing world such as China and Vietnam.
Mining companies have to go where the ore is. Manufacturers can set up anywhere.
[pullquote] Like Slavery and Apartheid, poverty is not natural. It is man-made and it can be overcome and eradicated by the actions of human beings. Sometimes it falls on a generation to be great. YOU can be that great generation.[/pullquote]
Why would a company set up here?
Some service companies – banks, insurance companies or supermarkets – will come because of the growing Zambian middle class with money to buy what they have to offer. But Zambia is still a small market. As I said before, the country needs to think about what it can export.
What will attract companies wishing to produce for export?
Things like a competitive cost base, a productive workforce, not too much red tape, policy certainty, political stability and security of investment.
Companies also want the flexibility to run their affairs in their own way. If they recruit staff for whom they subsequently have no use, they want the freedom to pay them a reasonable severance package and let them go.
It is a paradox that, in order to attract new jobs, you have to accept that some old jobs may have to go.
Companies also want to be able to bring in senior staff who know their business. Excessive restrictions on work permits for expatriates can put companies off investing here.
8. Inclusive Growth
And the eighth and last thing the country needs to do is to ensure that everyone has an opportunity to share in the country’s development.
The inequality between rich and poor in this country is really striking. It is clear that much of the benefit of economic growth is accruing to the middle classes here in Lusaka. The increase in traffic on the roads here is testament to that.
The poor and isolated, particularly those in rural areas, all need to be able to access education and other public goods. They need to be able to improve their farming techniques, and sell their produce.
DFID will remain focussed on support to the poor. Not just because there is a moral imperative to help those who are in most need, who suffer most. But because there are massive economic gains to be made by giving them even basic opportunities.
The government thus has a fundamental role to provide opportunity and incomes for all. The government’s 700% increase in the funding for the social transfers scheme is a step towards attainment of this dream. We are pleased to have played a key role in piloting that scheme.
Conclusion
Ladies and Gentlemen
I have two final thoughts. First, a senior advisor to Tony Blair once said, after stepping down from working in government that governments tended to overestimate the influence they could have in the short term. But they tended to underestimate the influence they could have in the long term.
It is only in the last few years that the economic liberalisation put in place by Frederick Chiluba has borne the greatest fruit.
The choices that are made now will make a big difference to how this country will fare in ten or twenty years time.
My second message is that you here today can play a big role in shaping those choices.
Nelson Mandela once said, “Overcoming poverty is not a task of charity, it is an act of justice. Like Slavery and Apartheid, poverty is not natural. It is man-made and it can be overcome and eradicated by the actions of human beings. Sometimes it falls on a generation to be great. YOU can be that great generation. Let YOUR greatness blossom.”
Prominent Lusaka lawyer Nellie Mutti has been arrested and charged with 33 counts relating to theft and forgery in connection the payment of more than K35 million to former government employees.
Ms Mutti of Lukona Chambers was arrested in Lusaka today but released on police bond waiting for court appearance on March 23, 2014.
Assistant police spokesperson, Rae Hamoonga confirmed in an interview in Lusaka today that Ms Mutti had been charged with forgery contrary to section 342 of the Laws of Zambia.
“She has also been charged with uttering of a contract as well as 31 counts relating to theft which is contrary to section 272 of the Laws of Zambia,” Mr Hamoonga said.
The arrest of Ms Mutti comes barely weeks after the police recorded a warn and caution statement from the legal practitioner after being accused of stealing more than K35,951,705.08.
The money was part of the Government release for 3,523 retirees that left their employment under the voluntary separation in late 1990s.
Ms Mutti represented the 3,523 retirees under the Voluntary Separation Association of Zambia (VSAZ) in a long protracted legal battle to claim the pensioners’ benefits.
She won the case on behalf of the retirees and the government recently started paying the pensioners’ through her law firm.
However, it is alleged that 751 former retirees could not claim their benefits and Ms Mutti pocketed all the money instead of returning it to Government.
Ms Mutti has also been dragged to court by the former civil servants who are now demanding for a refund after accusing the legal practitioner of making irregular deductions from their money.
According to the claim, the deductions by Ms Mutti were in three categories namely, 10 per cent legal fees, 10 per cent handling fees and 16 per cent VAT.
The deductions were made from the K468,161,166.23 that was released by the government for the retirees through Lukona Chambers after they had a 2002 judgment that went in their favour.
The Law Association of Zambia (LAZ) said recently that its disciplinary committee as well as the Legal Practitioners’ Committee were currently sitting to decide whether there was any professional misconduct by Ms Mutti over the same matter.
The Black Friday Campaigners and the Grand Coalition on the Demand for the release of the People Driven Constitution supports fully the action taken by the Opposition and Independent Members of Parliament to protest in Parliament as they demand for the Immediate Release of the document from President Michael Sata and the Patriotic Front Government.
The Black Friday Campaigners would like to urge Members of Parliament, Members of Civil Society, Members of the Church, the Students and indeed all Zambians to wear Black tomorrow, Friday (7th March, 2014) as the debate gets into another gear in Parliament.
We expect the Executive’s response through the Minister of Justice, Hon. Wynter Kabimba to the motion about the Road Map raised by Opposition Member of Parliament Hon. Garry Nkombo tomorrow Friday, 7th March 2014, to be in favour of the people. It is with this background that we appeal to all ZAMBIANS to be clad in BLACK as we all throng the National Assembly galleries and listen to the debate.
As the Black Friday Campaigners we are of the considered view that Zambians have the greatest opportunity to give unto themselves their own constitution now which clearly defines the destiny of the nation.
This is the time to say no to anyone that wants to hijack our People Driven Constitution. It’s now or never. Stand up and be counted. You must be counted on the right side of history. Power lies with the people, the Zambians.
As a people we did it in 1991, in 2001 on the third (3rd) term maneuvers, in 2011 and we have faith that this time around we shall do it in style. We need our constitution NOW!!!
