THE Government has said that it is still looking for a reliable strategic partner before establishing the national airline.

Communication, Transport, Works and Supply Minister Christopher Yaluma said the government was engaging various stakeholders in discussions to find suitable partner.

Mr Yaluma said that the government would have a larger equity in the airline so as to ensure its sustainability.

He said that the government was committed towards the re-establishment of the national airline and that the country still has the potential to run it profitably.

Addressing journalists in Lusaka, Mr. Yaluma noted that the government would put in place modalities that will not lead to the closure of the airline in future.

Mr Yaluma hailed plans by Zambians in the Diaspora to launch an airline saying it would contribute to easing air traffic in the county.

He said that the government encourages investments in different economic sectors from both local and foreign investment.

A few days ago a group of Zambian aviation professionals in the Diaspora in partnership with their locally based counterparts and some foreign investors announced that they would be launching Zambia’s first budget airline.

The Airlines is expected to be a low cost carrier, meant mainly for domestic travel and will be the first of its kind in Zambia.

Ethiopian Airlines has launched its flight to the Copperbelt direct from Addis Ababa to Ndola three times a week.

Transport and Communication Minister Christopher Yaluma says this development is attributed to the viable and enabling investment climate in the country.

Speaking at the same function, Director Advertising and Promotions for Ethiopian Airlines Mengistu Adelahu said Ethiopian is committed to enhance its services in Africa by taking the continent to a new level.

Mr. Yaluma says the Addis Ababa – Ndola direct flight was due to the political stability that the country enjoys and the cordial relations that government shares with Ethiopia.

The minister said this in a speech read on his behalf by Copperbelt Province Permanent Secretary Stanford Msichili at the inaugural of the Airline’s fright in Ndola yesterday.

He maintained that the commencement of Ethiopian flights to Ndola will sell Zambia’s tourism to the world.

Mr. Yaluma said the launch had come at a better time when Zambia and Zimbabwe will jointly host the United Nations General Assembly on tourism.

Mr. Yaluma said government would support the Airline as it has placed tourism high on the economic agenda adding that this will not only spur creation of employment but also meeting the Millennium Development Goals (MDGs).

He said government was proud that Ethiopian Airlines had added Ndola as its 45th African destination to its worldwide route network.
He added that the introduction of new routes will contribute to the development and growth of the aviation industry in Zambia, Africa and the world at large.

Speaking at the same function, Director Advertising and Promotions for Ethiopian Airlines Mengistu Adelahu said Ethiopian is committed to enhance its services in Africa by taking the continent to a new level.

Mr. Adelahu said Ethiopian Airlines is positioned to provide people to people economic and social ties between nations by serving the needs of the Africa of tomorrow.

He further said with a population constituting a sixth of the world, untapped mineral and oil resources and huge tracts of arable land it was time for Africa to ascend in the global economic landscape.

He noted that the rise and development of Africa was driven by dependable and convenient air transport adding that Ethiopian Airlines has proven this by widening its route network, building its capacity in both infrastructure and human resources.

And National Airports Corporation Managing Director Robinson Misitala said plans were underway to construct a new and bigger airport on the Copperbelt at a site to be announced soon.

ZANIS

The Government has said that it will ban ferrying of abnormal loads on the roads once the revival of Tanzania Zambia Railway Authority (TAZARA) is completed.

Transport, Works and Supply Minister Christopher Yaluma said in an interview yesterday that the government will issue a Statutory Instrument (SI) on the measure.

He said the two Governments had agreed to rehabilitate the line and that the Chinese auditors have since audited the line to establish the extent of damage.

Mr Yaluma said the report would be ready in June this year, adding that once the report was ready, the two Governments would start looking for finances.

He said the two Governments were committed to rehabilitation works of TAZARA and that currently some funds were being injected to sustain salaries, but the Governments wanted to ensure that the firm was run profitably and improve its operations.

“We are committed to rehabilitation works of TAZARA. So once the rehabilitation of the railway line is completed, I will issue a Statutory Instrument to burn abnormal load on the road network,” Mr Yaluma said.

He said there was an increased volume of trucks from Tanzania into Zambia and vice versa, thereby damaging the roads.

On the Zambia Railways (ZR), Mr Yaluma said the Government would inject another US$50 million towards the rehabilitation of the railway.

The Government committed US$120 million from the US$750 million Eurobond to recapitalise the ZR.

Finance Minister Alexander Chikwanda said recently that the railway company was a critical institution to the country’s development hence the desire for Government to see the institution operate as it should.

Mr Yaluma said Government’s move to inject US$120 was aimed at rehabilitating the railway lines, to avoid potential locomotive crashes.

“Still another US$50 million will be injected in the rehabilitation of the railway, as the board of directors is already in place to manage the project with the help of the Managing Director Clive Chirwa,” he said.

Mr Yaluma said Government was in the process of rehabilitating the Railway line from Chingola to Livingstone.

He said this would enable ZR resume important cargo transportation. He said the Government was committed to ensuring that the
repossessed ZR becomes viable and serves Zambians efficiently.

Finance Deputy Minister Miles Sampa has revealed that government has spent the US$750 acquired through a Eurobond issue last September.

“We don’t have any of that money sitting around in our banks. We have spent it entirely as we intended and we now need more money,” Mr. Sampa said.

He said government wants to go back to the international markets to secure additional financing, mainly for infrastructure development.

“We gave about US$ 120 million to Zambia Railways, a good chunk went to ZESCO for hydro power generation and we have also given Development Bank of Zambia a good amount for onward lending to Zambian SME’s.”

Mr. Sampa was speaking on ZNBC Sunday Interview television programme adding that a proposal to borrow more funds will be tabled by cabinet soon.

“We are in a hurry to develop and the manner in which we have dispensed the Eurobond funds shows our resolve to move fast.

During the same programme, Mr. Sampa revealed that President Michael Sata has assented to the Bank of Zambia Amendment Bill of 2013 which sought to introduce stricter foreign exchange regulations.

Mr. Sampa disclosed that Finance Minister Alexander Chikwanda will this week issue a statutory instrument to operationalize the new law that will require exporters to obtain Bank of Zambia clearance if they are exporting goods above US$ 20,000.

“We are not introducing forex controls, we are merely giving more powers to BoZ to monitor the market closely, we are merely giving the guys at the central bank magnifying glasses to check into what people are exporting,” he said.

“We have set up a unit at Bank of Zambia and with the help of some consultants, this unit should be able to carry out this task effectively.”

Mr. Sampa said the long term benefits of the new law will be increasing forex remittance to Zambia which will benefit the Zambian Kwacha’s position.

“All things being equal, the Kwacha should be trading around K 4.8 or 4.9 against the US dollar and not above K5, we believe that speculators have been playing on the Kwacha and this has to stop. The current Kwacha position is all artificial.”

According to the BoZ website, the Kwacha closed at 5.3922 against the US dollar by close of business on Thursday.