VICE-PRESIDENT George Kunda has said that the Zambia Public Procurement

Authority (ZPPA) has granted authority to import fuel into the country to mitigate a shortage of petrol and diesel.

Mr Kunda said this in an interview in Ndola yesterday in light of the fuel shortage that has resulted in many filling stations running out of supplies and causing panic buying among motorists.

“The ZPPA has granted authority for supplies to be brought in, in case of any eventuality,” Mr Kunda said.
He said Government, through Minister of Energy and Water Development Kenneth Konga, is making efforts to normalise the supply of fuel.

“We will react to that and ensure that we are on top of things. Fuel is an essential commodity. There are a lot of things we are doing like agriculture and in agriculture we use diesel,” Mr Konga said.

He said Government is committed to ensuring that there is sufficient fuel in the country even when the Indeni Petroleum Refinery is shut down for routine maintenance.

And Ministry of Energy and Water Development permanent secretary, Peter Mumba, has said that the shortage of fuel is due to a technical constraint at Indeni.
Peter Mumba said at a press briefing in Lusaka yesterday that catalyst, a component in refining petrol, has weakened.

He said this is what has contributed to the reduction in petrol supply on the market.

Mr Mumba said that while the current production met a larger portion of the demand, the situation has been compounded by uncertainly of future supplies by not only the consumers but fuel suppliers as well.

Mr Mumba said that in order to have stocks during the shut-down, 15 million litres of petrol and 25 million litres of diesel will be imported.

“Loading of these products in Dar es Salaam will begin on Wednesday October 14, 2009 with the view to having the fuel start arriving in Ndola five days thereafter,” he said.

Mr Mumba explained that a 90,000 MT shipment of petroleum feedstock was received on September 23, 2009, and will last the country until around November 20, 2009.

He said another shipment has been ordered for consumption in late November and December this year.
Mr Mumba said it is for this reason that the refinery shut-down is now being aligned to the arrival of the imported fuel after next weekend.

He said TAZAMA yesterday issued 1.5 million litres of diesel and 700,000 litres of petrol to sustain the market.

Mr Mumba said the refinery will, however, continue to operate, but at reduced production.

He said the refinery will today transfer to Ndola Fuel Terminal two million litres of diesel and one million litres of petrol.

Mr Mumba said oil marketing companies will, therefore, buy fuel on Monday and another similar pump-over will be made on Tuesday this week.

“This will continue until sufficient quantities of imports are in the country to allow the refinery shut-down,” he said.

Mr Mumba said while the concern by both consumers and oil marketing companies regarding future supplies is understandable, the shortage is temporary.

He appealed to the general public to remain calm as the fuel supply will be normalised by the arrival of new fuel imports.

Meanwhile, ALEX NJOVU reports that while Kitwe is not adversely affected by the fuel shortage, other Copperbelt towns are facing a crisis.

Mufulira Town Clerk Charles Mwandila said some filling stations had completely run out of the commodity, but he appealed to members of the public to remain calm.
“If we don’t receive fuel stocks by today (yesterday), the town will not have the commodity at all.

“There are few filling stations that have fuel at the moment and motorists are queuing up for the commodity, but there is no need to worry,” Mr Mwandila said.

In Kitwe, most filling stations have enough fuel stocks and pump attendants assured the public that they had enough stocks to meet the demand.

They said it was shocking that Lusaka had been hit by a shortage of fuel.

[Zambia Daily Mail]

Government has set aside about K 20 billion in the 2010 national budget for the completion of infrastructure development at the Lusaka South Multi Facility Economic Zone ( MFEZ ).

Finance and National Planning Minister, Situmbeko Musokotwane, said the growth of the manufacturing sector is an essential part of the government’s agenda for national development.

Speaking when he presented the 2010 national budget in Lusaka yesterday, Dr.Musokotwane, noted that expanding the manufacturing activities will, over the medium term, improve the country’s growth prospects and competitiveness.[quote]

He explained this will also help in reducing the country’s dependency on imports through a wider base of locally produced goods and services.

Dr. Musokotwane however, disclosed that the performance of the manufacturing sector has been negatively affected by lower demand and rising cost of import inputs there by the growth of the sector is estimated to decline to 1.0 percent in 2009.

He said despite these set back, government will continue to place emphasis on the manufacturing sector through the construction of infrastructures and investment facilitation through the Zambia Development Agency.

He stated that there has been substantial progress in the development of the US$ 900 million Chambishi Multi-Facility Economic Zone adding that a master plan for the Lusaka East MFEZ will be completed by the end of 2009 and construction is expected to start in 2010.

The minister further disclosed that eleven manufactures have so far begun operations, and another five are expected to do so in 2010 saying this will also help in accelerating the pace of operations and therefore create job opportunities for the local people in the country.

ZANIS

World Bank Country Representative, Kapil Kapoor, says he is happy with the the 2010 national budget presented yesterday afternoon to Parliament by Finance Minister, Situmbeko Musokotwane.

Mr Kapoor told ZANIS in an interview in Lusaka that the 2010 budget was impressive.

He added that the change in the financial cycle of the budget would reduce the pressure of putting the budget into effect.

Mr Kapoor, however, said he is worried with the decline in revenue as indicated in the 2010 national budget.

He urged government to increase the national budgetary allocation of different sectors, saying it is difficult to run a nation with such financial constraints.[quote]

Mr Kapoor said it is worrying to note that 50 per cent of the budgetary allocation goes to salaries and personal emoluments.

He explained that at the end of the day there is not so much left for developmental issues issues.

Mr Kapoor also observed that the increase in the cost of petroleum products will result in the increase of transportation of major agricultural products.

And Bank of Zambia (BoZ) governor, Caleb Fundanga, has welcomed the 2010 national budget, adding that Zambia performed well in 2009 despite the global economic crunch down.

Dr Fundanga says government’s efforts should be commended for projecting a 4.1 per cent economic growth for next year.

Dr Fundanga said in an interview with ZANIS shortly after the budget was presented that government needs to maintain the good policies despite passing through difficult economic conditions.

And former Finance and National Planning Minister, Ngandu Magande, said Zambia requires to sit down with its cooperating partners to mend the economic gaps arising from deficits mainly through exports.

Mr Magande explained that there is need to address the down-fall of revenue targets and diversify from copper, noting that the mining of copper is Zambia’s main export for its Gross Domestic Product (GDP).

He further welcomed the budget change cycle, saying he proposed it when he was a Cabinet Minister because Zambia needed to offset the huge debt Zambia had experienced.

Mr Magande, however, commended his predecessor for achieving $1.8 billion national reserves and quickly admitted that it was difficult to score it during his six-year tenure of office.

ZANIS

Government says it expects the agriculture sector to grow by 5.2 percent in 2010 compared to the 1.9 percent in 2009 following the bumper harvest in maize this year.

Finance and National Planning Minster, Stumbeko Musokotwane, said the maize production rose from 1.5 million metric tones to 1.9 million metric tonnes the country the biggest the country has recorded in the last ten years.

Dr. Musokotwane said this in Parliament today during the presentation of the 2010 national budget adding that government views the improved performance of the agriculture and the livestock as the most powerful tool to reduce poverty and stem the rural-urban divide.

Government has increased the allocation to agriculture and livestock sector from K1, 096 trillion in 2009 to K1, 139 trillion in the 2010 national budget.

The minister told parliament that the creation of the newly created Livestock and Fisheries ministry will ensure that the sector receives focused attention.

He added that its potential will be supported by targeted intervention aimed at controlling animal disease and improve veterinary services.

Dr. Musokotwane said through this intervention the sector will become the next priority sector to contribute to the national GDP after cooper.

He said government will continue with the create of disease free zones (D.F.Z)throughout the country to facilitate livestock exports.

He has announced that government has allocated K430 billion to the revised Farmers Input Support Programme (FISP), K100 billion to the Food Reserve Agency (FRA) and another K10 billion towards Food Security Packs.

He added that government will complete the remaining works on the Nansanga farming block in Serenje and has since allocated about K 40 billion to step up development of the block.

Dr. Musokotwane has also disclosed that government wills also commence similar infrastructure development in Luena Farms block in Kawambwa district where they will be growing sugar.

He further said that government will this year continue rehabilitating grain silos across the country to improve grain storage and protection.

ZANIS

Government says increased the allocation to the education sector to K3.320.9 billion representing a 26.4 percent increase.

Announcing the increase in Parliament today, Finance and National Planning minister Situmbeko Musokotwane said this is because government places much importance on education to make it the second largest sector of priority in the 2010 national budget.

He said, during the presentation of the 2010 national budget in parliament today, that government has since devoted substantial resources to the sector in order to raise the standards of education and provides better opportunities to the children.

He revealed to parliament that the country is on course of achieving the Millennium development Goals (MDG) on achieving universal access to primary education by 2015.

He has attributed this to the critical role communities’ schools and the private sector has played in increasing access to education for all.

Dr. Musokotwane has further disclosed that K 215.2 billion from 2009 budget has been used to complete 12 basic schools across the country while 2,500 classrooms for basic schools which were planned last year will be completed early next year.

He said an addition of 20 high schools are in their advance stages around the country and will be completed soon.

He added that government has allocated K553.5 billion for the construction of an additional 2,900 classrooms to provide school places for over 250,000 students across the country.

The Minister said K 21.4 billion has been allocated towards the procurement of books, desks, and other educational materials.

He further said government has allocated the three public universities with 317.9 billion for operations, infrastructure development and bursaries for students.

ZANIS

Government has unveiled a K 16.7 trillion (about US$3.55 billion) budget for the year 2010 as compared to the approved budget of K 15.27 trillion for this year.

Presenting the budget to parliament today, Minister of Finance and National Planning, Situmbeko Musokotwane disclosed that government would constrain lower priority expenditures but direct more resources to programmes aimed at stimulating growth and diversifying the economy.

Dr. Musokotwane said government’s economic agenda for 2010 and beyond would be to overcome the current recession and restore growth back to the pre-global economic crisis trend levels.

He said macroeconomic policies will in 2010 continue to focus on consolidating the recovery of the domestic economic base and protecting key social expenditures in the education and health sectors.

“This will be done by continuing with our economic diversification programme, thereby laying a solid foundation for higher sustainable growth and building resilience to external shocks,” he said.

He said out of the K16.7 trillion 2010 national budget, K12.1 trillion will be raised through domestic revenue collection, representing 72.4 per cent of the budget.

He added that K2.42 trillion, which is 14.5 per cent of the national budget, would be raised from grants from Zambia’s cooperating partners while the balance of K2.18 trillion or 13.1 per cent will be financed through domestic borrowing.

Government will borrow K1.48 trillion from domestic sources and K697.1 billion from foreign financial institutions.

Dr. Musokotwane told parliament that the general public services will consume the largest share of the 2010 national budget at 32.1 per cent.

“This is slightly higher than the 31.8 per cent share in 2009, as a result of the need to finance certain key expenditures such as voter and national registration at a cost of K 128.5 billion, the national census at a cost of K97.6 billion, and the constitution making process at K50 billion,” he explained.

He added that these programmes will collectively consume 1.7 per cent of the 2010 budget.

The presentation of national budget in advance of the financial year follows a change in the budget cycle after a constitutional amendment.

This will ensure that the budget is implemented over a full one year as opposed to previous years when the budget for a particular year was presented in March of the financial year.

And Dr. Musokotwane has proposed that the Pay As You Earn (PAYE) threshold should increase from K700,000 to K800,000 per month while the tax bands have remained unchanged.

“This means that those earning below K 800, 000 per month will be exempt from this tax. This measure will return K 85.0 billion to pockets of our workers,” he said.

He said the tax credit to the differently-abled persons has been increased from this year’s K 900, 000 to K1, 560,000 per annum, adding that this will result in minimum revenue loss.

These measures will be effected in April 2010.

Meanwhile, Dr. Musokotwane has expressed optimism that Zambia’s economic growth for this year has been projected at 4.3 per cent, which is a downward revision from the 5 per cent he announced in his 2009 budget address.

He said although the country suffered adverse effects of the 2008/2009 global economic crisis, the country will achieve and exceed the 5 per cent economic growth if the economic conditions continue to improve in the final quarter of 2009.

The minister said government’s macroeconomic objectives in 2010 are to exceed 5 per cent economic growth and reduce end-year inflation to 8 per cent.

He said government will limit domestic borrowing to 2.0 per cent.

Dr. Musokotwane has since called on Zambians to continue working hard in order to economically prosper the country.

“It is imperative that we do not lose the ground that we have gained. It is therefore essential that we continue to pursue business friendly macroeconomic policies in order to strengthen and sustain the investor confidence needed for economic growth and job creation,” he stressed.

ZANIS