Zambia and Angola have signed six (6) memoranda of understanding (MoUs) aimed at boosting trade and investment in the two countries.

The two countries have signed an MoU on cooperation to facilitate the construction of the Zambia/Angola connection road via the Jimbe border between Zambia’s Ikelengi district in the North-western province and Angola’s town of Luau.

The two nations have also committed to the construction of the Malundo/Sikongo border in the western part of Zambia.

Zambia and Angola have also signed a memorandum of understanding between the Ministries of Justice in both countries to enhance security in the two countries and the region as a whole.

Another MOU signed is between Zambia’s National Institute of Public Administration (NIPA) and Angola’s National School of Administration and Public Policies.

The education cooperation seeks to integrate some educational programmes between the two institutions especially in the area of introducing English speaking programmes in Angola considering that the country is predominantly a Portuguese speaking nation and vice versa.

The two countries have also signed a memorandum of understanding between the Zambia Development Agency (ZDA) and Angola’s Investment Agency Private and Export promotion (AIPEX) which seeks to promote public and private investment in the two countries.

And speaking after witnessing the signing of the MoUs, both President Hakainde Hichilema of Zambia and President Joao Lourenco of Angola pledged to work towards the fulfilment of the signed agreements.

The two Heads of State said it does not make economic sense to continue committing to agreements that are never actualised.

Meanwhile, President Lourenco said his country is eager to engage Zambia in livestock trade especially beef, considering that Zambia is sufficiently stocked in that area.

President Lourenco said Angola has identified Zambia as a possible trade partner in livestock considering the two countries’ close proximity.

The Angolan President also called for enhanced cooperation in mining, stating that both Zambia and Angola are rich in minerals.

He said Zambia and Angola can create linkages that encourage the production of finished products arising from its minerals and sold as finished products.

‘’If we take that route, then we shall be guaranteed massive job opportunities for our people and increased revenue for our countries,” said President Lourenco.

And President Hakainde Hichilema noted with great concern that Zambia and Angola have had no developed border between them over the years despite the two nations enjoying peaceful co-existence.

President Hichilema said this situation is hampering trade between the two countries.

“We should connect ourselves via road, railway, air and water transport if we are to enhance economic activities amongst ourselves,” President Hichilema said.

President Hichilema further underscored the importance of investments in the petroleum and gas sectors as a way of ensuring the supply of affordable fuel and petroleum products.

The Zambian Head of State said fuel is a key driver to any country’s economy hence calling for synergies around the energy sector.

The Centre for Trade Policy and Development (CTPD) has released a statement on the economic outlook for 2023, highlighting the challenges and risks faced by the Zambian economy in light of the ongoing global uncertainty. The statement, issued by Mr. Boyd Muleya, Head of Research at CTPD, emphasizes the need for efficient government communication and proactive measures to mitigate the risks and achieve stability in the coming year.

“The year 2022 was eventful but with uncertainties caused by the continuing Russia/Ukraine war, the COVID 19 pandemic and subsequent global food and energy crisis, global inflation, and its corresponding policy rate hikes,” says Mr. Muleya. “Further, slow growth in the US, China, UK, and the Euro zone, resulted in adjustments to growth predictions in advanced countries, emerging markets, and developing economies. 2022 reminded the world of the melancholy of stagflation of the 1970s when inflation was high and growth was slowing down, with possibilities of a recession.”

Despite these challenges, the statement notes that the Zambian government had managed to maintain stability in the Kwacha and inflation, and recorded a marginal reduction in interest rates and unemployment. However, the CTPD highlights several areas of concern, including the protracted debt restructuring process, delays in the implementation of the Farmer Input Support Program (FISP), and low absorption rates of the Constituency Development Fund (CDF) and Citizen Economic Empowerment Commission (CEEC) funds.

“The 2023 economic outlook is subject to several risks,” warns Mr. Muleya. “These include: the government needs to develop an efficient communication system to help citizens better manage their expectations, particularly when it comes to adjusting to various reform fatigue (cost-reflective energy rates, load shedding, multiyear tariff frameworks etc.), considering the high cost of living and that of doing business. Government must rely on forecasts and predictions to manage expectations in the various sectors like energy.”

Mr. Muleya also calls attention to the impact of global fertilizer shortages, climate change, the ongoing Russia/Ukraine conflict, and the resurgence of highly vaccine evasive COVID-19 strains on food and energy prices, as well as potential risks to government revenue, currency rates, and inflation. “Government should focus on import substitution on various imports like agricultural inputs to lower local prices,” he advises.

The statement also notes the potential for flash floods and late implementation of the FISP in 2022 to lower yields and endanger food security, as well as the uncertain feasibility of restoring macroeconomic stability through debt and fiscal sustainability in 2023. “The government must accelerate negotiations with various creditors to expedite the process,” says Mr. Muleya.

Despite a projected real GDP growth rate of 4 percent in 2023, the CTPD also cautions that inflation is expected to remain relatively stable but will face risks due to global upside inflationary pressures, possible COVID-19 resurgences, low yields due to delays in the distribution of agricultural inputs, and an increase in aggregate demand if efficiency on CDF and CEEC funds improves. “Consequently, inflation might not recede into the target band of 6-8 percent by the end of 2023,” warns Mr. Muleya. “Government should ensure that productivity capacity, operational efficiency and effectiveness is prioritized across all functions.”

In conclusion, the CTPD stresses the need for proactive measures to mitigate the identified risks and achieve stability in the coming year. “The government must focus on import substitution, drawing up predictable plans for procurement and distribution of farming inputs, expediting debt restructuring negotiations, and prioritizing productivity, efficiency, and effectiveness across all functions,” says Mr. Muleya.

The Ministry of Agriculture in Luapula Province is on course to meet the target of farmers who are to be recruited under the Market Oriented Rice Development Project (MOReDep).

Luapula Province Principal Agricultural Officer Osbetty Hamwete revealed that 3,400 Rice farmers from six districts have already been engaged and that they have since started growing the crops.

In an interview with ZANIS in Mansa today, Mr Hamwete revealed that the province intends to reach 12, 700 rice farmers before the project comes to an end in 2025 adding that the project will also be supporting the farmers with farming inputs.

He said farmers from 30 agricultural camps are already cultivating rice and are doing well adding that he is hopeful that by the end of the project rice production in the province will increase to about 3.5 tons per hectare.

“We are not only providing inputs to these farmers but also linking them to markets so that they do not have challenges when selling their harvest. Market has been one of the challenges which most farmers in Luapula Province have been facing,” he said.

Mr Hamwete adds that the project is also promoting mechanisations as farmers in certain camps are using tractors to prepare their fields which is making it easy for them to cultivate bigger pieces of land.

He cited Mabumba area where five hectors of rice have been cultivated through the use of machines such as tractors and that this has cut on the time which farmers used to spend when preparing their fields.

“We are also in the process of acquiring the services of a combiner harvester so that our farmers should not be having challenges when they are harvesting their rice which means that they will be selling their rice on time,” Mr Hamwete noted.

The Principal Agricultural Officer observed that so far the response from farmers in the province has be overwarming as it can be seen from the numbers of those who have come on board and are willing to continue producing rice.

He notes that most farmers have realised that rice is a cash crop which can help them improve their livelihood if only they are able to grow it according to the agreed standards because the province already has a conducive weather pattern for rice growing.

The Market Oriented Rice Development project is being implemented with support from the Japan International Corporation and seven districts in Luapula namely Mansa, Mwense, Lunga, Chembe, Mwansabobwe, and Kawambwa are benefiting from the project

Senior chief Muburuma of the Nsenga-Luzi people in Luangwa district is concerned that the benefits of tourism in the lower Zambezi have not trickled down to his people despite much of the Game Management Area being in his chiefdom.

Chief Mburuma says lodge owners are taxed by Kafue council even by lodges that are in his chiefdom, in Luangwa district adding that there is a need for the local people to benefit from lodges in the area.

“There is a need for us to also benefit from such ventures because we are the owners of the land,” he said.

Speaking when Lusaka Province Minister Sheal Mulyata paid a courtesy call on him, the traditional leader also charged that some of the lodge owners in the area tend to be rude then locals.

Chief Mburuma said there is need for government to intervene and ensure that the foreign lodge owners learn to co-exist with the owners of the land.

Meanwhile, the traditional has appealed to government to ensure that mining in the lower Zambezi is formalized to create jobs for the local people.

Chief Mburuma said that his chiefdom does not have employment opportunities, a situation which has seen many youths engage in illegal charcoal burning.

“Charcoal burning can only be curtailed when there are alternative income-generating ventures,” he said.

And Mrs Mulyata said that government wants to ensure that development is rolled out to all parts of the country and that rural areas also benefit.

She stated that this is why the government increased the Constituency Development Fund (CDF) and is implementing the decentralization policy to ensure that the local people decide their priority areas of development.

The minister said that the local people should form cooperatives and venture into lucrative business ventures through the CDF.

The Copperbelt Civil Society Mining Forum has appealed to President Hakainde Hichilema to explain to the nation what the plan is, on Konkola Copper Mine – KCM and Mopani Mine this year.

Forum Chairperson Gerald Mutelo stated that the Government should explain if they have the capacity to run the Mines or they will bring in a private sector locally or foreign, adding that the communities where these mines are located are in a distress as there isn’t any liquidity in the economy, no money in circulation, contractors and suppliers are not being paid as the mines are barely surviving with operations, workers have not received any increments on their salaries and some miners employed by contractors have lost their jobs as their respective companies cannot maintain their workforce owing to non-payment of costs by the two mines.

“This has led to increased suffering on the host communities, there is a need for the government to tell the nation on the relationship between Vedanta Resources and our government, the government should make full disclosure of the contract it has with glencore over Mopani, what did they really agree? Efforts by our forum to engage the Mines Minister has failed despite making public pronouncements that the government has an open door policy therefore our appeal goes to the Republican President to respond,” he mentioned

He noted that the Government should outline its plans on the future of the two mines to also inspire hope and confidence among the employees and all the stakeholders in the mining value chain.

And Mr Mutelo said that their Forum has information that Luanshya Copper Mines – LCM will be closing its Baluba Mine on the basis that Copper Ore at that Mine has been depleted which has consequently led to the non-renewal of contracts including JCHX which is the main contractor. In view of the foregoing ,there have been assurances that all affected employees under JHCX will be redeployed to other operational mining sites of JHCX however their Forum feels that more needs to be done in terms of legitimizing this process.

“We further demand that LCM to explain its exit plan for Baluba Mine by availing the Environmental impact Assessment [EIA} report,” he said

And Mr Mutelo cited that the government should inform the Public on the beneficiaries of the black mountain in Kitwe, hence, appealing to the government to give the youth and women all the slag dumps (black mountains) on the Copperbelt like it has done in Kitwe.

Meanwhile, Mr Mutelo has called on both the Ministry of Mines and Ministry of Energy to start encouraging Mining firms to start producing their own electricity like Dangote in Ndola and First Quantum Minerals – FQM in Kalumbila, adding that the issue of Load Shedding affects a lot of the vulnerable community members because of the Mining Firms which consume over 50% of the national installed capacity of electricity.

“If all mining firms start producing its own electricity this will help the manufacturing industries and small & medium enterprises (SMEs) who rely on electricity for survival, such as barber shops butcheries, saloons, bakeries etc,” he said

He alluded to the need for the government to create an enabling environment for more private sector participation in the energy sector and not just concentrating on hydro power but also using other sources of energy such as solar, or wind.

And Mr Mutelo said that their Forum has welcomed the move by the Government to open an electric car battery manufacturing factory to be based in Ndola on the Copperbelt, this will be a Joint Venture between Zambia and the Democratic Republic of Congo (DRC), as it will lead to job creation and economic improvement in the host town and surrounding areas, and it will add value to the country’s minerals and create a market for manganese, cobalt and copper Mines, it will also empower small scale miners of manganese especially in areas like Luapula Province where the mineral is in abundance.

Mr Mutelo however expressed concern as to why Zambia should enter into a joint venture with the DRC through an Memorandum of Understanding – MoU when all resources needed to undertake the operations of the factory are all readily available in Zambia.

“We are demanding for a full disclosure of the terms of the MoU between the two governments, furthermore an EIA report should be conducted by ZEMA since minerals are involved, government should also disclose its plans for residents who may be adversely affected by the setting up of the factory through for example displacement,” Mr Mutelo said

The Copperbelt Civil Society Mining Forum is an alliance of Civil Society organisations, faith based organisations, trade unions and churches based on the Copperbelt, whose objectives is to lobby and advocate for good governance, transparency and accountability in the mining sector to ensure community beneficiation, environmental, protection, job creation, business & human rights and good mining policies/laws.

The Forum comprises of organisations such as, Democratic Governance & Human Rights Advocates (DEGHA), Mine Workers Union Of Zambia (MUZ), Southern Africa Resource Watch (SARW), Catholic Diocese of Ndola, Transparency International Zambia (TIZ), Emerald and Semi- Precious Minerals Association of Zambia (ESMAZ), Citizen For Transformation Network (CTN), Future Preneur Zambia (FPZ), Copperbelt Trade and Development Forum (CTDF), Sustainable Natural Resource Empowerment Imitative (SUNREI), Action for Sustainable Development (ASD), and Activists for Justice and Development (AJUDE).