Government has revealed that the country has an estimated shortfall of 100,000 metric tones maize.

Information and Broadcasting Minister, Ronnie Shikapwasha, told journalists in Lusaka today that government has further established that the country will run out of maize at the end of February 2009 and that there will be need to import the shortfall to last until May 2009 when people will have harvested their own produce.

Lieutenant General Shikapwasha said both the Food Reserve Agency, FRA, and private dealers are encouraged to participate in the importation of the established shortfall.

“However, government is aware that availability of maize is not in itself a solution until this translates into what people can afford. To this end, the FRA has been instructed to and has started off-loading 20,000 metric tons monthly of its maize which is cheaper than importing maize to stabilize the prices,” explained Gen. Shikapwasha.

He noted that government will continue providing relief food to people, who are in areas which experienced floods last rain season.

Rev. Shikapwasha, who is also Chief Government Spokesperson revealed that so far government has

distributed a total of 5,714 metric tons of White maize countrywide saying government is assessing the situation on the ground.

He emphasized that contrary to Kalomo Central Opposition UPND Member of Parliament Request Muntanga, the maize government will import is non Genetically Modified Organism-GMO.

He assured Zambians that government has a source which will supply non GMO maize.

Meanwhile Rev. Shikapwasha said the formed Task force on rising food prices is expected to come up with a national Action Plan which will bring out the interventions needed to mitigate the ever increasing food prices  in the short, medium and long term .

He noted that government has taken note of the concerns expressed by various people and organizations about that state of food security in the country.

Gen. Shikapwasha said government is taking appropriate interventions to prevent people in all parts of the country from dying from hunger saying government is currently assessing the level of food insecurity.

He said there was no need for people to panic or some people making political mileage out of the food situation.

“The mealie-meal prices should not be used as an issue to incite unrest in the country because government is taking all the necessary measure. Moreover it is misleading to suggest as the Patriotic Front has done that President Rupiah Banda promised to reduce the mealie-meal prices,” explained Rev. Shikapwasha.

He explained that President Banda had emphasized the need to increase food production and promised increased subsidy on fertilizer for beneficiaries under the Fertilizer Support Programme.

He assured the Zambian people that there was absolutely no need for planned protests by opposition PF cadres saying it is a shame that leader, Michael Sata, has decided to support the planned demonstrations by his cadres.

Gen. Shikapwasha noted that the Task Force on rising Food Prices is studying the variance of retail prices between urban and rural towns and will advise government on how best to deal with the situation.

And Gen. Shikapwasha said the fertilizer issue has been taken out of context because neither President Banda nor government promised to reduce prices across the board.

He explained that the subsidized fertilizer is not for the open market but for targeted people belonging to co-operatives and benefiting the Fertiliser Support Programme.

He said there is no conman in government as the issue of reducing fertilizer prices under the Fertiliser Support Progarmme was announced way before the campaigns by former Finance Minister N’gandu Magande.

By Wesley Ngwenya

The new old government or is it the old new government has a lot of challenges along its path. Or rather the new President of Zambia and his cabinet have a huge task in alleviating poverty in this country. It got me to think after my earlier article about Zambians in Diaspora–Why not do government a favor and come up with a few ideas on how they can create employment for the Zambians from Luwingu to Livingstone or from Lundazi to Lukulu?

Not too long ago, I remember mentioning to my friend at Barclays that perhaps 75 percent of the cars driven in Zambia are Japanese. He was quick to correct me and suggested that it was probably 95 percent. 75 or 95 percent that is a lot of Japanese second hand vehicles rolling our streets. Often times, we have to buy these vehicles direct from Japan at expensive prices not to mention the duty tax at the border.

So what can government do to help? If I were government I would sit down make a proposal and jump on the plane head to Osaka or Tokyo to meet the corporate CEOs of Toyota, Honda, Mitsubishi, Isuzu, Mazda, etc. I would propose and remind them that most vehicles driven in Africa are Japanese. Africans have a taste for Japanese vehicles which fair very well in African conditions. As Zambian government we would like to give you an opportunity to open a Toyota Plant in Zambia. This plant will manufacture, assemble cars and distribute them all over the continent considering the strategic geographical location of Zambia (making sure I have a map to show Zambia and the surrounding neighbors who are equally big Toyota buyers).

Following this, I would then highlight the benefits of Toyota establishing a plant in Zambia:

1. Toyota will significantly reduce its administrative costs. Zambian employees will be paid much less than our Japanese counterparts.
2. Toyota will not have to import raw materials such as copper because they are in the backyard.
3. Toyota will increase revenue because Africans can now purchase new cars instead of the used ones.
4. Toyota will increase the profit margin since the overhead costs will be much lower—a great way to stay competitive with this global financial crisis looming.
5. Toyota will create jobs, have an opportunity to participate in local initiatives—good corporate social responsibility.
6. Toyota will receive tax incentives for a specified period provided the workforce is 90 percent Zambian and the company buys materials from Zambian suppliers.

Imagine 60,000 new jobs in Katete with setting up a new Toyota Plant. I am not sure there are even that many people in the town. Suddenly, we’ll all pack our bags and head east. All those mechanics, electricians, engineers, and architects will now have something to smile about. The residents of Katete will now be able to feed their families three meals a day. Finally, they would now afford to buy their own sugar, thank goodness.

It’s very possible, that within five years of the Plant here in Zambia, a lot of other secondary industry would mushroom as a result. There would be a surge in insurance, banks, hotels, restaurants, retail shops, small scale suppliers, garages and other related industries. We do not even have guess how many other new jobs would be created as a result. We will suddenly, see the copper transporters headed east instead of south. And the best part—we all get to buy and drive little new corollas with zero mileage for less than 3,000 dollars. Wow!

Does that sound like a dream to many Zambians? Probably. With planning and the right leaders, is it something feasible? Certainly. Government has to brainstorm and come up with creative ways of creating employment for its citizens. When many Zambians are working it means more taxes are paid. When more taxes are paid it means more money for the government (not to confuse this with politicians) to implement developmental projects. Does that sound like rocket science to our government? Who knows?

The African Development Bank (ADB) has given Zambia a US$24 million concessional loan for budgetary support for next year and 2010.
The loan, whose agreement was signed by ADB and the Government in Lusaka yesterday, was awarded to Zambia under the Second Poverty Reduction Budget Support Programme.
Finance and National Planning Minister, Situmbeko Musokotwane signed for Zambia while ADB resident representative, Vivienne Apopo signed for the bank.
The duo also signed the financing agreement for the Africa Legal Facility.
Dr Musokotwane said the $24 million which would be disbursed in two equal tranches would go towards supporting some of the on-going projects.
“The specific goal of these funds is to contribute to economic growth and poverty reduction through the provision of an enabling environment for private sector development.
“The funds will be disbursed in two tranches of equal amounts. One tranche will come in 2009 and the other will come through in 2010,” Dr Musokotwane said.
He said the Government had been implementing a number of development programmes in the last few years under the Fifth National Development Programme using finances from domestic sources and cooperating partners.
On the African Legal Facility, Dr Musokotwane said the facility was born following the declaration of African finance ministers in 2003 on aid, debt, the International Monetary Fund and HIV/AIDS.
The objective of the facility, he said, was to help heavily indebted poor countries in Africa to address the problem of creditors and enhance negotiation capacity for complex commercial, investment and other transactions.
“The Africa Legal Facility to be established shall be an international institution with full judicial personality under the law of the states who sign the agreement, Zambia inclusive,” he said.
Ms Apopo said the loan signed yesterday would help create a conducive and cost-effective business environment for the private sector, and accountable management and use of public resources.
She said the ADB had made financing commitment to Zambia amounting to $980 million and an additional $387 million was provided as debt relief since the 1970s.
For the Africa Legal Facility, Ms Apopo said the facility would provide legal advice to African countries faced with litigation and noted that countries through suits instituted by vulture funds had paid out about $700 million.
“A case in point in Zambia is the recent case of Donegal Vs Zambia in which judgment was awarded to Zambia,” she said.
Times of Zambia

President, Rupiah Banda, today held a closed door meeting with a delegation from the International Finance Corporation, a World Bank Group, at State House.

The meeting was also attended by World Bank country representative Kapil Kapor, Finance and National Planning Minister, Situmbeko Musokwane, and Presidential Affairs Minister, Gabriel Namulambe.

The closed door meeting, which lasted about half an hour, was called to discuss ways that IFC could employ in working with government to make the Zambian business environment more attractive to investors.

IFC Executive Vice President and Chief Executive Officer, Lars Thunell, said  the IFC delegation is in the country to discuss possibilities for World Bank support to the Zambian economy.He described as fruitful the private discussions held with President Banda and Finance and National Planning Minister, Situmbeko Musokotwane.

Mr Thunell disclosed that IFC was very much likely to expand its presence in Zambia especially in the mining and agriculture sector.

He, further, stated that IFC was discussing with government on effective strategies of making the business environment more attractive.

And Finance Minister, Situmbeko Musokotwane, said government would continue working with IFC in order to attract more foreign investment in the economy.

Mr Musokotwane said government is determined to promote both local and foreign investment to spur national economic growth.

IFC is one of the wings of the World Bank whose focus is to promote private sector investments in any given economy.

It also provides advice to certain sectors of the economy.

President Banda also held another closed door meeting with a group of investors from Korea.

The Korean investors are in the country to explore investment opportunities in various sectors of the economy.

Korea Youth Entrepreneur Association Chairman, Jang Jae Wan, is leading the delegation.The International Finance Corporation, IFC, of the World Bank has indicated that it would expand its presence in Zambia and help government grow the economy.