Join our community of SUBSCRIBERS and be part of the conversation.
To subscribe, simply enter your email address on our website or click the subscribe button below. Don't worry, we respect your privacy and won't spam your inbox. Your information is safe with us.
POLICE in Kabwe have opened a docket and recorded statements from witnesses and the father of twins one of whom was allegedly pronounced dead by a doctor at Kabwe General Hospital only to later discover that the child was still alive.
And Dadly Bumba, father of the deceased twins, has since refused to bury the babies demanding the arrest of the doctor that certified one of the infants dead, long before she actually died.
Mr Bumba said after the death of the first baby, he had no confidence that his other child would survive, considering the harassment that he and his family received from the hospital staff after reporting the matter to Kabwe District Commissioner, Patrick Chishala.
Police recorded statements from witnesses from Kasavas area where the parents of the twins are residents.
Central Province Commissioner of Police Solomon Jere said police were today expected to summon all staff at the hospital involved in the matter for questioning.
Dr Jere said police were expecting those linked to the matter to assist in investigations, adding that the probe should not be viewed as persecution. He said after recording several statements from the father of the twins and other people, police opened a docket to ensure that the truth was established.
The twins were born prematurely from Elizabeth Nkombwe around 22.00 hours on Wednesday last week and one of the babies was, around 13:00 hours the following day, certified dead by a medical doctor at the hospital.
It was later discovered that the infant was breathing, and just at this point started crying, as it was being taken to the hospital mortuary.
However, the baby later died the same day at 18:30 hours while its twin died the following day around 21:00 hours.
Dr Jere said police were treating the matter as a possible criminal liability and were interested in knowing the doctor who declared the baby dead.
The police were also interested in knowing the members of staff who allegedly tore the death certificate obtained from Kasanda Police Station after discovering that the baby was still alive, as it was an offence under the laws of Zambia.
Mr Bumba’s mother-in-law, Eneless Nkombwe, has also expressed disappointment at the manner in which the hospital treated the family.
FILE: South African Ambassador to Zambia Moses Chikane (L) dancing with teachers at Nelson Mandela basic school in Lusaka
South Africa High Commissioner to Zambia Moses Chikane has said that Former President’s Son Henry Banda cannot be handed over to the Zambian authorities just because they are needed for questioning. The High Commissioner said that his government would need solid charges before extradition can take place.
“The Zambian authorities would need to use Interpol to secure any law-breaker, including the same Mr Banda,” Mr Chikane said. “But we cannot hand over someone to any government…it doesn’t matter which government just because they are wanted for questioning…we need solid charges before any extradition can take place…in this case, all we have heard is that the gentleman is wanted for questioning that’s all.”
This is the first time the South African government is stating its position on Mr Banda, who is wanted in Zambia for fraud-related charges, according to an Interpol red alert.
Mr Chikane also said he does not expect South Africa’s position would strain diplomatic relations between the two countries because the ball is in Zambia’s court.
“We don’t foresee any diplomatic problems regarding this matter,” Mr Chikane said: “We just want things to be done properly and not extraditing someone in the absence of charges.”
[pullquote]“But we cannot hand over someone to any government…it doesn’t matter which government just because they are wanted for questioning…we need solid charges before any extradition can take place…in this case, all we have heard is that the gentleman is wanted for questioning that’s all.”[/pullquote]
Inspector-General of Police Stella Libongani in a statement to the media said she had made follow-ups regarding information that Mr Banda is in South Africa. “We have made follow-ups on Henry, who is wanted by the combined team of investigators to help with investigations,” Ms Libongani said.
South Africa becomes the second country to co-operate on Mr Banda after Kenya stated that he would be arrested if seen in that country. Mr Banda is alleged to have links with a Kenyan company that supplied petroleum products to Zambia.
His return to Zambia may be complicated further by the fact that South Africa does not extradite people to countries that have a death penalty such as Zambia, no matter what nature of crime they have committed because of the Bill of Rights in their constitution.
“Our Bill of Rights, which we take very seriously, does not allow us to extradite people to countries that have a death penalty,” Mr Chikane said, and continued: “It doesn’t matter if somebody killed a hundred people, we can’t extradite them to a country with a death penalty,” he said.
Mr Banda has since engaged international lawyers to defend him but they have not travelled to Zambia yet. He has been linked to the sale of Zamtel to Libyan company LapGreen, which Government has since repossessed.
Re-elected Faz president Kalusha Bwalya says he hopes that the association’s council will accept the outcome of Saturday’s elective AGM which saw him bounce back into the top job after beating his only challenger Emmanuel Munaile by 103 votes.
Returning officer Annie Nkaka from the Electoral Commission of Zambia declared Kalusha winner at Kitwe’s Moba Hotel slightly after mid-night after he polled 178 votes while Munaile received 73 votes.
Speaking after being given a new mandate, Kalusha said Faz was like one family and should not have factions.
“I hope that (Faz) council will embrace the decision made here today because we are one family. In football there are no factions,” he said.
Kalusha has bounced back in the FAZ Exco alongside vice President Boniface Mwamelo,Treasurer Kelvin Mutafu and Executive Committee Member Lenny Nkhuwa.
Besides Nkhuwa, other elected Executive Committee members are Pivoty Simwanza,Lee Kawanu,Jeff Chipilingu,Richard Kazala, and Happier Munkondya.
He also took time to preach about discipline.
“Let this be a warning, the new executive committee will not tolerate indiscipline from any member.” he added.
Nalolo Member of Parliament Inonge Wina feels the people of western Province should have waited for cabinet to study the recommendations of the Commission of inquiry that was instituted to investigate the Mongu riots before coming up with resolutions on the Barotseland agreement.
Mrs. Wina says it is for this reason that the government has not commented on the matter because cabinet has to study the report before it can give its position.
She adds that it would also be premature for her respond to calls by the Barotseland National Council suggesting that western province members of parliament resign in order to pave way for the preparations for the secession process.
Mrs. Wina the current gender and Child Development Minister has told QFM news that she is however happy that peace has continued to prevail in western province and that business is running as usual.
In the resolution passed during a meeting held recently in Limulunga, the Barotseland National Council (BNC) recommended that Barotseland secedes from Zambia to become an autonomous state.
And Women for Change Executive has said that Barotse Agreement of 1964 is not about seceding from Zambia but decentralizing power to ensure that resources are shared equally. The agreement is about promoting development and addressing social and economic rights of people.
Women for Change Executive Director, Emily Sikazwe also called for dialogue between government and the Barotse Royal Establishment.
[pullquote]And Women for Change Executive has said that Barotse Agreement of 1964 is not about seceding from Zambia but decentralizing power to ensure that resources are shared equally. The agreement is about promoting development and addressing social and economic rights of people.[/pullquote]
The organisations understanding of the agreement is that it is about devolution of power and resource allocation and this can be applied to the rest of Zambia as most communities are wallowing in poverty.
Ms Sikazwe said in a statement that there is need to uphold peace and security. She says conflict should not be tolerated because it will mostly affect women, the aged and children.
Meanwhile, A clergyman in Western Province has appealed to Christians in the Province to preach peace and be a source of hope as the region experience issues surrounding the Barotseland Agreement of 1964.
Speaking during a Church Service today, Mongu Assembly of God Church Reverend Raphael Silwamba said there is need for Christians regardless of their tribe to be a torch of hope in the province if peace is to continue prevailing.
Reverend Silwamba cautioned Christians against altering words that can bring tension and havoc to adding that people should consider seeing each other as one in Christ Jesus.
“I want to urge you not to speak words of violent against one other because of tribal differences, such issues have the potential to create tension in our society,” he said.
He noted that if not handled properly, the current reported relationship between the Lozis and Nkoya speaking people can result into apartheid as situation he said was not good.
“Theses indifferences we are reading in the newspapers of the Nkoyas saying this and that is very dangerous, it was such misunderstandings that brought hatred and war in some of our neighboring countries” he added.
Reverend Silwamba further urged Christians to ask God for wisdom for government and the Barotse National Council so that the two can reach a comprehensive agreement on the matter.
“Our role as Christians is to pray for the two authorities so that God can give them wisdom in handling this matter, we should not be seen to take sides whether Nyoya, Mbunda, Chokwe or what language we are. In fact for us if do not know what to say just keep quiet,” he said.
Kalusha Bwalya has bounced back as Football Association of Zambia (FAZ) President after beating his only challenger Emmanuel Munaile by 103 votes at the elective annuel general meeting held at Kitwe’s Moba Hotel.
Returning officer Annie Nkaka from the Electoral Commision of Zambia declared Kalusha winner slighly after mid-night after he polled 178 votes while Munaile received 73 votes.
Kalusha has bounced back in the FAZ Exco alonside vice President Boniface Mwamelo,Treasurer Kelvin Mutafu and Executive Committee Member Lenny Nkhuwa.
Besides Nkhuwa, other elected Executive Committee members are Pivoty Simwanza,Lee Kawanu,Jeff Chipilingu,Richard Kazala, and Happier Munkondya.
Simwanza got 85 votes,Kawanu received 82 votes ,Chipilingu polled 75 votes,Kazala got 75 votes, Munkondya polled 69 votes and Nkhuwa received 66 votes.
THE MMD has said that the rumour going round that former vice-president George Kunda has died is untrue.
MMD national secretary Richard Kachingwe was quoted on the ZNBC main news last night as saying that Mr Kunda was not dead and that he had visited him at the University Teaching Hospital (UTH) earlier in the day.
He said the rumour started on the internet and wondered why people where wishing the former vice-president dead instead of sending him goodwill messages.
“What has become of our morals, they have sunk so low, something has gone wrong when one is sick you have to wish them best of luck,” he said-
FIRST Lady Christine Kaseba greats Robiana Muteka when she visited him at the University Teaching Hospital. Standing next to her is UTH managing director Lackson Kasonka
FIRST Lady Christine Kaseba has said the successful removal of the 14.5 kilogramme tumour from Robiana Muteka by University Teaching Hospital (UTH) doctors is a clear indication that Zambia has skills to handle complicated health cases.
Dr Kaseba said yesterday when she visited Robiana at the hospital that UTH doctors had demonstrated that the country had good expertise despite many challenges they were facing in their duties.
A team of 15 doctors carried out a successful two-hour operation on the 24-year-old Robiana, who was referred to UTH from Livingstone on the directive by President Michael Sata.
“What they have done only goes to show that we have the skill here, we have the expertise and what we may lack is technology and some equipment that may really push UTH to be doing what it is supposed to do,” she said.
“The case has also demonstrated that UTH is a tertiary medical centre.I am happy as a doctor. My appeal to the Government and the president is to look into the plight of the UTH.”
Dr Kaseba, who had a brief chat with Robiana, commended the doctors and other medical personnel at the country’s biggest referral hospital for undertaking a successful surgery on the 24-year-old.
She said the case had attracted a lot of attention and expectations from the time it was reported with some people expecting it to be referred for specialist treatment outside the country.
The first lady, who also visited Chief Chikanta, who is admitted at the same hospital, said people who were speculating the health of others had nothing to do and hoped the Government could give them something.
She noted with sadness that some people had continued to speculate the health of President Sata even when they knew very well that he was fine.
“The issue of Mr Sata’s health is not new, but these speculations are done in bad faith. In fact it is some of you who were reporting that he had collapsed in North-Western Province,” she said.
And speaking from his hospital bed, Robiana thanked President Sata for showing kindness by allowing his evacuation from Livingstone to receive specialist treatment at UTH.
Robiana, who informed the first lady that he wanted to study medicine in future following the successful operation, said it was not easy to get such an opportunity to receive specialist treatment.
“I thank the president, it is not easy to have this opportunity that he has given me. The doctors are so good here, they are taking good care of me and I ask you to say thank you for me to the president,” he said.
Mulungushi University Vice-Chancellor and Economist Oliver Saasa (L)
PROMINENT economist Oliver Saasa has said the Patriotic Front (PF) is on the right economic footing as evidenced by the increase in Foreign Direct Investment from US$300 million to the current US$3billion.
Professor Saasa said the increase in FDI indicated that Zambia’s economy was poised to record further positive growth under President Michael Sata.
Prof Saasa said in an interview in Lusaka during the week the PF Government would manage to record positive economic transformation.
Prof Saasa said the post-election period was still within a bracket of uncertainty on investment inflows but was happy that there was no major shift in policy after the change of Government in September last year.
“This goes to show that the Government is on the right track because it is normally difficult for a Government to hold on to investment when there is change of Government and when there are too many speculations. Many investors hold on to their money because they do not know what is next for them.
“This happens any where in the world, even in the most developed countries. For example, in the United States of America this happened during the Barack Obama election and people should understand that this is normal. All that the Government should do is put in place measures that will attract more investment in the country,” Prof Saasa said.
Prof Saasa said when a country experienced a change of Government, investors became cautious of happenings and awaited a clear direction of how the economy would progress and were particular about the shift in policies.
He said it was gratifying to note that the PF Government did not take a major shift in policy direction and this had maintained the investment confidence the country had with foreign investors.
He said the 2012 national Budget address by Finance Minister Alexander Chikwanda reflected positive economic fundamentals that renewed the strategy, confidence and vision to Zambia and the investors.
He said this contributed to the increase in FDI and pledges to national coffers that had reached 61 per cent as recorded by the Zambia Development Agency.
He called on Zambians still gauging the PF performance on the 90-day theory to realise that it was not possible to deliver within that short space of time but was confident of the economy to record more growth and benefits for the citizens.
“The process of attracting investors is an on-going one and there is no time that a country will ever say that it has attracted enough investors, so the public should be a patient. It is an on-going process and we have to be patient,” Prof Saasa said.
He called on the media to desist from alarming the investors of happenings in the economy but to be factual and professional.
”The way we dealt with Zamtel and the way we might deal with Zanaco will have either a positive or negative bearing on the economy of the country, hence we need to be careful as we embark on such reviews. The media should be very careful on how they report on issues to do with investment because investors are very keen on such matters.
“I implore the media to be more professional in their work becauseonce we mislead, any negative impact on the economy will not be feltonly by the PF or the MMD but the whole country will suffer. So instead of giving wrong information to the outside world, we should strive to give them what is exactly pertaining on the ground,” Prof Saasa added.
He appealed to the Government to put in place strategies and systemeffect for attracting more investment into the country.
FORMER vice-president Enoch Kavindele has joined the race to contest the MMD presidency at the former ruling party’s forthcoming extra-ordinary convention.
Mr Kavindele, who served as party president before losing it to late Levy Mwanawasa prior to the 2006 general elections, is said to be favoured by many members because of his continued loyalty despite being frustrated in the past.
However, the sources revealed that the decision by Mr Kavindele had caused panic among some members who are supporting other candidates.
The sources said there is fear among some members that the extra-ordinary convention, whose date is yet to be announced, could cause more problems for the former ruling party as members elect the new president.
Four party parliamentarians, who include Felix Mutati for Lunte, Situmbeko Musokotwane (Liuwa), Kabinga Pande (Kasempa) and the suspended Moses Muteteka for Chisamba Constituency as well as former Zambian ambassador to Canada Nevers Mumba have already expressed interest in the party’s highest office.
“If we are not careful, we can experience what happened in 2001 where interested members in the presidency will form their party or decide just not to support whoever will be elected,” said the source.
When contacted, Mr Kavindele said he was still consulting before coming up with a concrete decision on whether or not he would contest the presidency of the MMD.
“I am not ruling myself out but I am still consulting and once I make a decision, I will announce,” said Mr Kavindele, who recently pledged K60 million towards the holding of the party convention.
“I must say, however, that although it is difficult to say now, I have received many members who have asked me to go for the party presidency and I am giving it a thought.”
Mr Kavindele said the leadership problem that the MMD was currently facing was self-inflicted after the party scrapped off the vice-president position prior to 2006 elections.
He said he had always advised that the party should have the position of the vice-president and hoped that the coming extra-ordinary party convention would consider his position.
“I thought it was a mistake to abolish that position. The party has suffered because it has no vice-president and I have always said that this is not good for the party, we need such a position, especially in situations like this one,” he said.
Mr Kavindele said he hoped that the delegates to the convention would be able to elect a leader who would be responsible enough and take the MMD to greater heights following the defeat in the 2011 polls.
He said following the loss to the Patriotic Front (PF) in the September elections, the MMD needed to have a leader who would be able to revitalise the party and remain competitive.
The opposition MMD has been locked into sustained trouble since losing last year’s elections as many senior members, including those eyeing the party presidency face probe over corruption allegations levelled against them.
While Mr Muteteka remains suspended for alleged insubordination, party spokesperson, Dora Siliya was recently reprimanded for accusing Mr Mutati of causing the defeat because of his globe-trotting at the expense of the campaigns.
FIRST Republican president Kenneth Kaunda has indicated willingness to help find an amicable solution to the continued impasse on the Barotseland Agreement of 1964.
Dr Kaunda’s spokesperson, Solomon Musonda said in an interview in Lusaka yesterday that the first president was the father of the nation and also a citizen of Zambia and, as such, he was concerned with the developments surrounding the Barotse Agreement, of which he was a co-signatory.
Dr Kaunda, renowned for the slogan “One Zambia, One Nation”, a symbol of unity, appended his signature with Litunga Mwanawina Lewanika to the Barotse Agreement prior to the country’s independence from British colonial rule.
“Dr Kaunda is the father of the nation and he is a concerned citizen and so he is ready to discuss with stakeholders how best this issue can be resolved.
For now he is not available for further details but he is concerned and would be ready at an appropriate time. This time is not appropriate but when the time is right he will be available to help,” Mr Musonda said.
FLASHBACK: FORMER President of Zambia,Dr.kenneth Kaunda was present at the ceremony of South Sudan independence birth day in Juba, South Sudan
The Barotse National Council (BNC) last week unanimously resolved to secede from the rest of Zambia, a decision that has raised concerns in the country.
Vice-President Guy Scott responded to the decision during a Parliamentary sitting before the House adjourned, describing it as irresponsible and unacceptable. Home Affairs Minister Kennedy Sakeni said the demands bordered on treason.
Various stakeholders have called on Dr Kaunda to render his counsel on how best the Barotse Agreement could be addressed without threatening peace in the country.
In an interview, the House of Chiefs implored Dr Kaunda to help facilitate dialogue on the issue.
House of Chiefs chairperson, Chief Madzimawe said the continued silence from Dr Kaunda, who headed then Northern Rhodesia and agreed with the Barotseland to form a unitary State, now Zambia, could play an important role in the matter.
Chief Madzimawe said dialogue was the only means to address the BNC’s concerns.
“Our first president Dr Kaunda is one of the surviving people that can help us resolve this stand-off, he was there. We know he is out of politics and enjoying his retirement but we still consider him as the father of this nation.
“So it is important that we solicit his guidance in this matter because he knows the issue well and he and others from his Cabinet can help resolve the impasse surrounding the restoration of the Barotseland Agreement. We need to humbly approach him and ask him.
“Former leaders are there to provide wisdom and guidance and it is the right time for him to help in this call for dialogue,” Chief Madzimawe said.
The traditional ruler said it was only through dialogue that the matter could be addressed amicably.He said there was still room for dialogue and that all Zambians were one people.
“The best way forward is dialogue, not all is lost and we call for all stakeholders to handle this matter with utmost care. All people are equal, and we should not even demonise Lozis on this matter. That is why I am emphasising the need to handle it through dialogue,” he said.
He said the debate on whether the agreement should be implemented should not be allowed to cause divisions among the people.
Zambia Former Freedom Fighters Association (ZAFFFA) of Ndola said Dr Kaunda was a significant person who could be consulted and availhimself to remedy the problem.
ZAFFFA executive coordinator, Kafula Mulenga said the Barotse issue was capable of bringing confusion but this could also be avoided with Dr Kaunda’s intervention.
“My appeal goes to Dr Kaunda to help the nation address this issue once and for all so that the country concentrates on moving forward instead of going around this issue. It is time we settled this problem in an amicable way and this requires dialogue among stakeholders, including our founding father, KK,” he said.
He warned that instability could arise over the matter and cautionen young people not to be misled but understand the issue from anobjective standpoint.
And Women for Change (WfC) has backed the three Church mother bodies’ that cautioned the Government on how to deal with the currentpolitical situation in Western Province.
WfC executive director Emily Sikazwe called for an urgent solution to differences brought about by the Barotse Agreement debate but that this should be done in a manner that would respect the Constitution and the rights of the people of Western Province and the country as a whole.
“We at Women for Change are deeply concerned and saddened with the situation in Western Province and would also like to advise the Government and the Barotse Royal Establishment (BRE) to seek dialogue in order to uphold the peace and security we enjoy as a country.
“The ongoing discussions on the issue of the Barotse Agreement couldcontribute to insecurity in the country if the issue is not resolvedthoroughly. This calls for Government and the BRE to work together to ensure development in the province. The Barotse Agreement of 1964 is not about seceding from the rest of Zambia but about addressing the social and economic rights of the people.
‘The agreement is about promoting development and freedom to harness the economic opportunities that areavailable in our country and which requires the removal of major sources of freedom such as poverty, unemployment, gender-based violence and many other vices,” Ms Sikazwe said.
?The three Church mother bodies said in a statement in Lusaka on Friday that the Government should create conditions that would facilitatemeaningful reconciliation among the people of Western Province through dialogue.
The Church mother bodies are the Zambia Episcopal Conference, Evangelical Fellowship of Zambia and the Council of Churches in Zambia.
TODAY’S SCRIPTURE
“Those who know your name will trust in you, for you, LORD, have never forsaken those who seek you”
(Psalm 9:10, NIV)
TODAY’S WORD from Joel and Victoria
Most times, it’s not the big events in life or the big breaks that get us where we need to be, it’s the little things, the daily disciplines that move us forward in the good things God has for us.
I believe there are three things you can do every day that can change the course of your life. Number one, expect God’s goodness. Get up every day looking for God’s favor. Number two, recognize God’s goodness. There are no coincidences, no lucky breaks. It’s all the goodness of God. And number three, always thank God for His goodness. Anytime something good happens, big or little, give God the glory. “Lord, thank You for that parking spot. Lord, thank You for that idea. Lord, thank You for sending me dew in my desert.”
If you do this, I believe and declare that you’re going to come into more of God’s goodness; that His blessings are going to come after you. God is going to open up supernatural doors. He’s going to turn negative situations around. Get ready because something good is coming your way! You’re going to fulfill your God-given destiny because He never forsakes those who seek after Him!
A PRAYER FOR TODAY
Father, I do set my heart and mind on You today. I expect Your goodness because I know You are faithful. Every good and perfect thing comes from You. Thank You for Your hand of blessing on every area of my life in Jesus’ name! Amen.
— Joel & Victoria Osteen
Ratings agency Standard & Poor’s on Friday maintained Zambia’s B+ rating, saying that recent policy changes overall support economic growth. The agency also kept its outlook at stable, saying current economic policies would be largely maintained, with strong growth in Zambia’s main export copper. Economic growth is seen at five percent this year.
“Although uncoordinated and sometimes contradictory views by cabinet members have increased uncertainty about future economic policies in Zambia, policy changes have so far been mostly measured and supportive of growth and modest debt burdens,” it said.
“The stable outlook reflects our view that changes to economic policies will be measured, and broadly supportive of growth trends and modest debt levels.”
Fitch ratings agency earlier in March downgraded its outlook for Zambia from stable to negative, and cited worries about a move to de-register a major political party, the Movement for Multiparty Democracy, which lost power in September elections last year.
Below is the Full Statement from Standards and Poors
===============================TEXT================================
Standard & Poor’s Ratings Services today affirmed its ‘B+/B’ foreign- and local-currency long- and short-term sovereign credit ratings on the Republic of Zambia. The outlook is stable. Our transfer and convertibility assessment for Zambia remains ‘B+’.
The ratings on Zambia are constrained by fairly low income levels ($1,500 GDP per capita), balance-of-payments vulnerability to swings in copper prices as copper accounts for about 80% of exports, and political risks. The ratings are supported by promising investment and economic growth trends, a fairly strong external balance sheet, and a low general government debt burden, which also benefited from debt relief and the effect on nominal GDP of double-digit inflation in 2007-2009.
We believe that although uncoordinated and sometimes contradictory views by cabinet members have increased uncertainty about future economic policies in Zambia, policy changes have so far been mostly measured and supportive of growth and modest debt burdens.
We forecast that the Zambian economy will perform well in 2012, with per capita GDP growth of just over 5%. The economy has been buoyed by an exceptional maize harvest in 2011, still-high copper prices, and strong investment in the mining sector. We project average annual inflation will decrease to about 6.0% in 2012 from 8.7% in 2011.
Despite high copper prices, we estimate that the current account surplus will slip below 2% of current account receipts (CARs) because of large imports needs. The general government deficit is expected to widen to 4.2% of GDP compared to 3.5% in 2011. We expect per capita GDP growth to remain close to 5.0% over the medium term, supported by high copper prices and generally prudent policies.
In our opinion, however, uncertainty about future economic policies has increased. Cabinet members have made several controversial statements and decisions–which have sometimes been quickly reversed–particularly about windfall tax, export tracking, and government participation in the mining sector.
We view positively the government’s objective to promote good governance and transparency. However, we are concerned that its reversals of some of the previous government’s privatizations on grounds of lack of transparency and flawed processes are perceived as partly politically motivated. In our view, this could have negative repercussions on investment and growth if investors think that the investment climate is deteriorating.
The dismissal of the central bank governor in September, when he had just six months left in his second term, and the recent ongoing debate about the status of the registration of the Movement for Multi-party Democracy (MMD) have also contributed to our impression of increased political interference.
However, we believe that most policy measures have been so far, broadly supportive of growth. The 2012 budget is expansionary, with a significant increase in capital expenditure, but we expect the deficit to narrow in 2013. The projections assume that slippages in current expenditure, in particular wages and subsidies, are limited.
We estimate Zambia has a net external liability position of 43% of CARs in 2012, which has improved since the current account has moved into surplus. Monetary policy flexibility is limited by moderately high dollarization.
The stable outlook reflects our view that changes to economic policies will be measured and supportive of growth and modest debt levels overall, despite uncertainties regarding the new administration’s economic policies.
We could lower the ratings if the new administration’s policies were to weaken external, fiscal, or monetary fundamentals, or impair copper production. We could also lower the ratings if Zambia’s external liquidity were to deteriorate significantly, for instance, as a result of an extended depression of copper prices.
The ratings could be raised if Zambia’s external liquidity were to become less vulnerable to copper prices and if investment in infrastructure were to keep per capita income growth rates at consistently high levels.
The Ngambela of Barotse Royal Establishment has urged the Zambian government to be realistic in the way it handles the issue surrounding the western province. Wainyae Sinyinda said that the situation is worse that what is being speculated by different stakeholders in the country.
Ngambela said that the issues surrounding the Barotseland will not die as it is a growing issue. He said that the issue of threats and arrest will not solve anything adding that the people of western province should be listened to.
He says that it is important that the government and there sympathizers become realistic other than threats of arrests. He said that there is need for level headedness from both sides in order to chat the way forward.
He said that people should understand that the resolutions that where made are not him alone but the people of western province. He was speaking this morning on the UK based INTERNET radio Crossfire blog radio, monitored by QFM radio in Lusaka.
And the Ngambela has clarified that it will be too early to call for the Lozi people working in other provinces to resign from there jobs. He said that the situation is surrounding Western Province should not be done in an emotional manner.
