Wednesday, October 16, 2024
Subscribe
Home Blog Page 1142

Shonga Shocked to Be Loaned to TTM

sports
-
3

Zambia striker Justin Shonga is shocked that Orlando Pirates have sent him on loan at Tshakhuma Tsha Madzivhandila FC (TTM).

TTM have since registered Shonga for the 2020/2021 season.

The club from the Limpopo Province, who last season played the second tier, bought its PSL slot from legacy club Bidvest Wits at the end of the 2019/2020 campaign.

Shonga, who joined Pirates from Nkwazi in 2017, has told the media in South Africa about is desire to play in Europe.

“I think this move was already planned by Pirates because I didn’t even know that I was going to come this side. I had other plans with my own agent,” Shonga said.

“By the time was season was done I think they had already spoken to them so I was just called to the office by the chairman, that was when I was told,” he said.

Both Shonga endured a forgettable season with the Soweto giants.

“I had a lot of plans; I still have them because I wanted to leave South Africa to go to Europe and clubs there were waiting for me but unfortunately Pirates never wanted to release me by that time.”

“By the time Pirates released me, the transfer window was closed in Europe so the people said you can only be transferred in January,” Shonga said.

Government Debt is Not $27 billion as reported by World Bank, Finance Minister Tells Parliament

Chief Editor
-
30
Government Debt is Not $27 billion as reported by World Bank, Finance Minister Tells Parliament

The Minister of Finance Dr. Bwalya Ng’andu has told Parliament that the recently released 2021 international debt statistics report by the World Bank,  quoting Government debt as being US$27.34 billion is not correct.

In a Ministerial Statement on Zambia’s Public Debt Management Strategy, delivered to parliament Dr. Ng’andu reaffirmed that the Zambian Government’s stock of external debt as at end of 2019 was as he reported in my 2021 budget address, which is US$11.48 billion. 

Dr. Ng’andu said that the amount stated in the World Bank report refers to the total national debt that includes private sector external debt of US$15.57 billion.

Dr. Ng’andu further said that the private sector external debt is foreign-denominated debt owed by all non-Government entities in Zambia in all sectors including mining, manufacturing, transport, energy, wholesale, and trade to mention some.

 

The Minister also reiterated his remarks that , should Zambia fail to reach an agreement with its commercial creditors (including holders of its Eurobonds) on the terms of the appropriate standstill, as previously stated, the Zambia with its limited fiscal space will be unable to make payments and, therefore, fail to forestall accumulation of arrears.

The Finance Minister said that  Government has requested all its external creditors to agree to debt service suspension on similar terms. During the standstill period, the only foreign-denominated debt that Zambia will continue paying on a current basis is debt from multilateral agencies and debt for a few priority projects that have an immediate economic and social impact. These projects are in the health, edcuation, water and sanitation and transport sector

Below is the Full address

 

INTRODUCTION

Mr. Speaker allow me to start by thanking you for giving me an opportunity to apprise the honourable members of this house and the nation at large on the steps that Government continues to undertake in order to address the vulnerabilities emanating from our public debt situation and the measures taken in light of the negative impact of the COVID-19 pandemic.

Mr. Speaker, Zambia is currently in the process of implementing a liability management exercise aimed at restoring debt sustainability. As part of this process, the Government has been engaging its creditors to seek their approval for suspension of debt service payments for a period of six months in accordance with the terms of the G20 and Paris Club Debt Service Suspension Initiative (DSSI).

Sir, the DSSI initiative is a coordinated approach led by g20 and Paris club creditors which provides for the suspension of debt service payments for a period of 6 months for poor countries that request forbearance, with the aim of supporting these countries in overcoming the intertwined health and economic effects of the COVID-19 pandemic.

Mr. Speaker, the request for a 6 months standstill is part of our debt strategy development process. The standstill will give immediate relief on the budget and most importantly give the Government time to finalize its debt sustainability analysis that will provide details of the broad asset-liability management measures that are required to be implemented to deliver debt sustainability over the medium term. The debt sustainability analysis will provide the details that are required to provide for informed engagement with the different creditors, including eurobond holders, on the adjustment in order to attain debt sustainability over the medium to long term. This will be done with the full support of the IMF.

Mr. Speaker, although we have obtained some relief under the DSSI window, particularly from official creditors, engagements with commercial creditors, have not yet yielded the expected results. This is because these creditors were concerned that we were not treating all creditors equally.

We seemed to be discriminatory in the treatment of our creditors as are servicing certain categories of our debt while not servicing others. Specifically, concern was raised that the eurobond debt was not included in the DSSI request and that Zambia had continued to service all eurobond payments when they fell due, while allowing the accumulation of arrears on other portfolios. The exclusion of eurobond payments from the DSSI request also made some creditors reluctant to grant DSSI as they were concerned that the debt relief they would provide would be used to pay debt service to other creditors and not be channeled towards COVID-19 related expenditures as intended.

Sir, in order to make progress on these engagements and get the full benefits of addressing the impact of COVID-19 through the DSSI, it became necessary to request Eurobond holders for a six-month suspension of debt service so that all categories of creditors receive similar treatment.

ISSUANCE OF A CONSENT SOLICITATION MEMORANDUM

Mr. Speaker, the Government of the Republic of Zambia, working with its financial and legal advisors (Lazard and white & case respectively), initiated the bondholder engagement process through the issuance of a Consent Solicitation Memorandum (CSM) on 22nd September 2020.

A consent solicitation is a formal process for seeking approval from the bondholders to amend the terms of the bonds, either by way of written resolution or bondholder meeting. The consent solicitation memo requested that a standstill on coupon payments for a period of 6 months from 14th October 2020 to 14th April 2021 be granted.

OBJECTIVES OF THE CONSENT SOLICITATION MEMORANDUM

Sir, the objectives of the consent solicitation memorandum which we have requested the bondholders to consent to are:

  1. To suspend any interest payment due in respect of each series of notes for six months from 14th October 2020 to 14th april 2021 (the “standstill period”).
  2. To get an irrevocable and unconditional waiver of any breach on any obligation in respect of the bonds, that may arise in connection with, or as a result of, the deferral of interest in (1) above;
  3. To get an irrevocable and unconditional waiver of any breach or alleged breach of any obligation under or in respect of the bonds, which may have occurred prior to the standstill period such as a cross-default; and,
  4. To amend or modify the conditions, the deed of covenant and the agency agreement as are necessary to effect the deferral of interest and the amendments, waivers and authorisations set out in paragraphs (1), (2) and (3) above.

ENGAGEMENT WITH BONDHOLDERS

Mr. Speaker, following the issuance of the consent solicitation memorandum, I made a presentation to investors on 29th September 2020, highlighting the rationale for our request for a standstill. In the investor presentation, I highlighted the current macroeconomic and fiscal situation of our country including our current debt position and how it will be difficult to sustain external debt service going forward, if nothing is done to address the situation.

I, therefore, called upon the bondholders to support Government’s efforts by granting our request for a standstill for 6 months. The standstill will give us space to develop a long-term debt restructuring strategy.

I also emphasized the country’s strong desire to enter into a constructive, transparent and equitable dialogue with all our creditors as we undertake the debt restructuring process aimed at restoring debt sustainability. Since then, we have had engagements with the ad hoc bondholder committee through our advisors and we are currently responding to the questions that are being raised from the presentation.

NEXT STEPS REGARDING EXTERNAL DEBT SERVICE

Mr. Speaker, the debt payments to bondholders, including the payment which fell due on the 14th October 2020 to 14th April 2021 have been included in our debt service deferment request. The bondholders are to this effect expected to cast a vote on Zambia’s request for a debt standstill, after which meetings for the three series of bonds will be held to pass the resolutions that will be made.

As the ministry has stated before, should Zambia fail to reach an agreement with its commercial creditors (including holders of its Eurobonds) on the terms of the appropriate standstill, as previously stated, the Republic with its limited fiscal space will be unable to make payments and, therefore, fail to forestall accumulation of arrears.
Sir, the Government has requested all its external creditors to agree to debt service suspension on similar terms. During the standstill period, the only foreign-denominated debt that Zambia will continue paying on a current basis is debt from multilateral agencies and debt for a few priority projects that have immediate economic and social impact. These projects are in the health, education, water and sanitation and transport sectors.

DOMESTIC DEBT MANAGEMENT

Mr. Speaker, in the area of domestic debt, Government will focus on raising financing from Government securities as well as meeting the obligations falling due.

Sir, the strategy on domestic debt management as indicated in my 2021 budget address, will be to:

  1. Keep the pace in terms of payment of debt service on domestic debt maturities;
  2. Lengthen maturities as we issue new debt to achieve long-term maturity profiles;
  3. Reducing arrears particularly to local businesses to inject liquidity in the local economy; and,
  4. Engaging and broadening investor participation in the Government securities market.
    The assurance, therefore, to the current investors and would be investors on Government securities is that Government is committed to developing the donestic markets furhter as a foundation towards economic recovery.

CONCLUSION

Mr. Speaker, as I conclude, I would like to reaffirm that our stock of external debt as at end of 2019 was as I reported in my 2021 budget address, which is US$11.48 billion. As of the end of June 2020, this figure increased to US$11.97 billion, which when we add the guaranteed debt for state-owned enterprises comes to US$13.55 billion. I have noted, regrettably, that some sections of the domestic and international society, that may not have read the recently released 2021 international debt statistics report by the World Bank, are quoting Government debt as being US$27.34 billion, as opposed to US$11.48 billion at the end 2019.

The amount stated in the World Bank report refers to the total national debt that includes private sector external debt of US$15.57 billion. Private sector external debt is foreign-denominated debt owed by all non-Government entities in Zambia in all sectors including mining, manufacturing, transport, energy, wholesale, and trade to mention some.

Sir, I will end by reaffirming that we remain committed to equal treatment of all our creditors and transparency in our engagements. We also note that this engagement is necessary and is in the best interest of the country.

Mr. Speaker I thank you.

Ng’ombe residents riots over elapse of mobile NRC issuance

Chief Editor
-
13
Ng’ombe residents riots over elapse of mobile NRC issuance

Some irate residents in Lusaka’s Ng’ombe compound yesterday ran amok and threw all kinds of missiles that has left a teacher and a learner injured at Ng’ombe Primary School.

And relative calm has returned in the compound as alert officers from the Zambia Police Service kept vigil as the stone-throwers were kept at bay in order to protect both people and property.

The irate residents were protesting the relocation of officers conducting the ongoing mobile national registration card from following their expiry of the scheduled timetable.

Meanwhile, Lusaka District Commissioner David Silubanje has strongly condemned the unbecoming behaviour of some Ng’ombe residents for their insatiable appetite of destroying property whenever they are aggrieved.

Mr. Silubanje observed with sadness the strange behaviour of some Ng’ombe residents who have become accustomed to rioting whenever they are aggrieved.

‘’ I want to sternly warn these violent residents of Ng’ombe compound that the long arm of the law will surely catch up with them,’’ he warned.

‘’ It is regrettable that this particular compound has developed a strange behaviour of destroying both private and public properties whenever they are aggrieved.

‘’ First, it was the touching of the Police Post, destroyed a newly constructed road because they were aggrieved and yesterday they have partially damaged the school after they learnt that our officers’ schedule of issuance of NRCs had ended yesterday.’’

Mr. Silubanje said this when he toured Ng’ombe Primary School to check on the extent of the damage and later visited centers in Kamanga, Garden and Chainda areas.

He said that the preliminary report from officers indicated that about nine classrooms were partially damaged though he described the damage as minimal which will not affect the school calendar.

‘’ I have since directed the District Education Board Secretary to get on the ground and quickly do an assessment so that a bill of quantity can be prepared,’’ he said.

‘’You are aware that non examination classes have just resumed due to COVID-19 pandemic and as a government we would not want to inconvenience the pupils due to leaked roofs because of the broken asbestos.

‘’ But to say the least, this behaviour is retrogressive and l want to commend police officers for their swiftness when they received the report of the disturbances.

‘’What is really shocking is that we have several static offices for NRCs across the district that are equally operating alongside the mobile exercise and people would resort to violence because of the relocation.’’

Attorney General Dragged To Court For Alleged Fraudulent Activities at Kalengwa Mine

Chief Editor
-
13
Attorney General Dragged To Court For Alleged Fraudulent Activities at Kalengwa Mine

The Office of the Attorney General (AG) has been dragged to Court for allegedly engaging in fraudulent activities at Kalengwa Mine in Mufumbwe District of the North Western Province.

The Attorney General office has been sued together with 15 others who include Shakwi Fawaz, Hetro Mining and Ores Limited, Lunga Resources Limited, Kalengwa Mineral Processing Limited and Kalengwa Processing Zone and Kalengwa Processors Limited among others in a case involving Euro Africa Kalengwa Mines Limited and Chief Mukumbi Kizela of Mufumbwe District.

The plaintiffs (Euro Africa Kalengwa Mines and Chief Kizela) have sued the AG office for failing to ensure that the Supreme Court Judgements regarding Kalengwa mine were implemented which has resulted in perpetuating fraudulent activities which have been going on at the mine despite the Supreme Court ruling in favor of the plaintiffs on three occasions.

In a statement of claims filed in the Lusaka High Court on Monday, 13th October, 2020, the plaintiffs said the AG had been sued in his capacity as Chief legal advisor to the Government.

“The 16th defendant is the chief legal advisor to Government and is sued pursuant to the provisions of Section 12 of State Proceedings Act Chapter 71 of the laws of Zambia.

..The 5th Defendant is equally sued on account of having purportedly purchases farms F/31477, F/31478 and F/31479 from the 2nd, 3rd and 4th defendants herein which were in fact fraudulently obtained in a well calculated and elaborated scheme aimed at defrauding circumventing judicial pronouncements including Supreme Court Judgements,” reads the statement of claim in part.

The plaintiffs further claim that the mine has not seen meaningful mining activities due to “protracted and calculated litigation” by way of erroneously granted injunctions against the first plaintiff for over seven (7) years preventing their ability to commence mining at Kalengwa.

The Plaintiffs have since asked the court to grant them an order that Certificate of Title number 302434 relating to F/31477 Mufumbwe, Certificate 302681 relating F/31478 Mufumbwe and Certificate of Title 302681 relating to farm F/31479 Mufumbwe were fraudulently obtained and are cancelled together with damages being awarded amounting to US $120 million among other claims.

The Companies being sued have all been used to circumvent the Supreme Court Judgements which led to the Judges warning Fawazi not to ever appear before the Court over the issue of Kalengwa when he lost the matter for the third time.

In passing judgement the Court said “the subject matter of the case has already been adjudicated upon by this court in two final judgments and in the judgment on 25 March 2015, we ordered Hetro mining to vacate the disputed mine with immediate effect and we allowed the appellant [Euro Africa Kalengwa Mines Limited] to take possession of the mine for the respondents [Fawazi’s Lunga Resources company] to now challenge possession based on our judgment is pure arrogance particularly that the people behind Lunga Resources and Hetro mining are the same people that made unsuccessful claims to the mine in the previous two claims.

The Supreme Court further said that “the view we take is that our judgments and the Kalengwa mine are res judicata, meaning that it is finally decided.”

Last week the Vice President Inonge Wina when asked about the status of Kalengwa mine by Mufumbwe Member of Parliament acknowledged that the continued closure of the mine in Mufumbwe was depriving the local community employment opportunities but seemed not to have full information regarding Supreme Court Judgements as she said the issue of the mine was still in court when in fact judgement in favor of the plaintiff was passed a long time ago.

General Public to make use of the Public Protector

Chief Editor
-
6
General Public to make use of the Public Protector

Office of the Public Protector has called on the general populace to utilize its services in ensuring that they receive the expected services from public institutions.

Zambia’s Public Protector also known as the Ombudsman, Caroline Sokoni disclosed that the Office has been in existence since 1974 to investigate individuals’ complaints against the public authority with an effort to deter misconduct in all public institutions.

Speaking when she launched the commemoration of the African Ombudsman month at her residence in Lusaka, Mrs Sokoni indicated that the office exists for the vulnerable in the country to enhance service provision.

“I am proud to announce the launch of the Ombudsman month not only in Zambia but the entire Africa. The office of the Ombudsman was established to assist ordinary people to be able to articulate complaints of maladministration against the government. As you well know it is almost impossible for a single individual to fight the bureaucratic machinery of government when one has a complaint and it is also difficult for individuals to engage lawyers to take matters to court,” Mrs Sokoni stated.

She disclosed that her Office assists ordinary individuals to bring out complaints against public institutions without incurring extra cost.

The Ombudsman explained that her office is completely independent as it only reports to the National assembly, hence urged citizens to express confidence in the Public Protector’s Office to ensure that all possible maladministration are curbed.

Mrs Sokoni was happy to state that through the Constitutional Amendment in 2015, her Office was transformed from an Executive Ombudsman Office to a Parliamentary Ombudsman Office indicating that it operates independently.

“In 2015, the Zambian Constitution was Amended and the Office Ombudsman was transformed from an Executive Ombudsman Office to a Parliamentary Ombudsman Office, and the name was transformed from that of the Investigator General to that of the Public Protector and we are hoping that as we go along will be able to even translate the name into local languages so that people understand it even more,” she added.

Mrs Sokoni assured that the Office has lined up activities to ensure that it has presence in all parts of the country in order for the people to own the office and also for easy access.

The Ombudsman however called on government to decentralize the institution country wide so that services are easily accessible.

Among other challenges, Mrs Sokoni requested government to assist the Ombudsman’s Office to attain its administrative independence so that the general public could have trust in its operations.

Bill 10 to be Restored to Order Paper, MPs will be required to be Physically present to Vote

Chief Editor
-
7
Bill 10 to be Restored to Order Paper, MPs will be required to be Physically present to Vote

The National Assembly has announced that the Bill number 10 of 2019 will be restored on the order paper on October 29, 2020.

Clerk of the National Assembly Cecilia Mbewe said this in a statement to the media in Lusaka yesterday.

Mrs. Mbewe stated that members of Parliament will be free to debate the bill when it comes up using the stable internet facilities put in place and further advised members of parliament to be physically present at the main parliament buildings to facilitate voting.

“The Clerk of the National Assembly wishes to inform all Members of Parliament, the media and members of the public that the House will consider the Second Reading stage of the Constitution of Zambia (Amendment) Bill, National Assembly Bill No. 10 of 2019 on Thursday, 29th October, 2020,” the statement read in part.

The Clerk of the National Assembly advised members of the public to follow the proceedings on Parliament television, radio or Facebook.

“While Members of Parliament are free to debate on the Bill from any suitable location with good internet connectivity, it will be advisable for Members to be physically present at the Main Parliament Buildings to facilitate voting. Members of the public are advised to follow the proceedings on Parliament television/radio or Facebook,” she stressed.

She also mentioned that members of the public will be informed if there will be any changes.

Meanwhile, PF Parliamentary Chief Whip Brian Mundubile has said that amending Article 68 of the Republican Constitution to allow for the creation of new constituencies through delimitation is critical to the enhancement of development.

Mr. Mundubile said increasing the number of constituencies can only be done once the constitution is amended through Bill number 10 of 2019.

“Bill 10 seeks to answer to aspirations of the people on delimitation by amending article 68 which restricts the number of constituencies to 156. This is why we need the bill to be passed into law,” Mr. Mundubile said.

He observed that some Constituencies such as Chilubi have lagged behind in development due to their vastness and limited resources.

Mr. Mundubile added that delimitation is a catalyst in accelerating development hence the need for Bill 10 to be supported by Parliamentarians.

“Those against Bill 10 are simply denying the people in areas like Chilubi development because they are delaying the delimitation process. It is not easy for people in places such as Chilubi and Malole constituencies to appreciate development because the areas are too vast,” he said

The Parliamentary Chief Whip said this when he held a meeting with village Headmen and women in Chilubi District at which the traditional leadership called for delimitation of the constituency to enhance development in the area.

Irene Chibuye, who spoke on behalf of the over 100 village Headmen and women said it has been difficult to attain the much-needed development in Chilubi Constituency due to its vastness and terrain.

“We are seeing development in other areas because the size of those constituencies cannot be compared to Chilubi. The constituency is too big making it hard to implement developmental programs,“ she said.

She has since appealed to the government to consider the issue of delimitation as a matter of urgency.

The Truth About Zambia’s Debt

Chief Editor
-
20
The Truth About Zambia’s Debt

Dr. Grieve Chelwa PhD

Zambian social media platforms, especially WhatsApp groups, were very active yesterday sharing and discussing the publication of the World Bank’s latest International Debt Statistics Handbook. I’ve lost count of the number of friends on WhatsApp who sent me the hyperlink to the download page of the book. Ordinarily, the publication of the Debt Statistics Handbook goes without notice in much of the world and especially in Zambia. So why all this interest this time around?

Well, in the last couple of weeks, “Zambia and its debt” has been a topical issue with prominent coverage in the Financial Times and Bloomberg among other international outlets. The latest round of interest comes on the heels of an official request from the Zambian government for a payment holiday on upcoming debt service obligations. So this week’s publication of the World Bank’s International Debt Statistics Handbook (hereafter IDSH) fell into this milieu of strong emotions around Zambia and its debt.
So why all the fuss? Well, all the commentary on WhatsApp, Twitter and Facebook on the the IDSH zeroed in one single statistic reported at the top of page 150: Zambia’s external debt at the end of 2019 was $27 billion dollars! This is certainly a huge number and would suggest that the country’s external debt was almost equal to the size of the country’s GDP. And for many of yesterday’s commentators, this number was evidence that the Zambian government was understating the true nature of its external debt. For example, Finance Minister Bwalya Ng’andu recently told parliament that external public debt was $11.97 billion dollars, a number that is about $15 billion lower than the World Bank’s number.

So what is going on here? The confusion stems from the conflation of Total External Public Debt with Total External Debt. The two aren’t the same thing even though they seem like they are.

Total External Public Debt (the first one) refers to all foreign denominated debts that are owed by the Zambian government. This includes external debt directly owed by the government and debt guaranteed by the government but contracted by government or quasi-government entities. For example, Total External Public Debt would include the (in)famous Eurobonds and/or any guarantees issued by the government in favour of, for example, the Zambia Electricity Supply Corporation (ZESCO).
Total External Debt, on the other hand, is the sum total of all the external debt owed by entities domiciled in Zambia. This includes debt owed by the Zambian government (as defined above) and that is owed by Zambia’s private sector. Total External Debt would include external debt owed by the government plus external debt owed to foreign creditors by, for example, the privately-run mining industry.

By definition, and given the above, Total External Public Debt can never exceed Total External Debt. The two can be equal which would imply that all external debt is government debt. In practice, Total External Public Debt tends to be lower than Total External Debt primarily because the private sector also borrows from foreign creditors.
So what does all this mean for the publication of the IDSH and the commentary that followed? Well, the first thing is that the World Bank and the Zambian government are saying the same thing. The fourth line item on page 150 of the IDSH says that Total External Public Debt at the end of 2019 was $11.1 billion [1]. Minister Ng’andu told Parliament on 25th September 2020 that “[total] external public debt stock increased to US$11.97 billion as at end-June 2020 from US$11.48 billion at the close of 2019…”. As one can see, these numbers are pretty much around the same ballpark.

The June 2020 number, as reported by the Minister, is slightly greater than the 2019 numbers (from the government itself and the World Bank) because of the likely accrual of additional external public debt in the first 6 months of 2020. The 2019 numbers by the World Bank and from the government are slightly different from each other because of likely accounting/reconciliation issues. Interestingly, government’s number for end 2019 is greater by about $300million. This might be the result of one public guarantee or the other that was not captured by World Bank statisticians.

So in many ways the World Bank’s IDSH is telling us nothing new beyond what the government has already told us regarding the country’s external public debt.
As to whether the $11 billion number (from both the World Bank and the government) is to be believed is a different question altogether. I have good reason to believe that the “true” external public debt is around this figure. Margaret Mwanakatwe, Ng’andu’s immediate predecessor at Finance, instituted a debt reconciliation drive about two years ago and committed the Ministry of Finance to issuing quarterly debt briefings (although the frequency of the briefings has reduced lately). This was in response to heavy domestic and foreign criticism that the Zambian government did not know the true extent of its debt obligations. It appears the Ministry of Finance has gotten on top of this issue and, for example, recent IMF statements on the country are no longer broaching the subject of debt reconciliation as they did a couple of years ago. Economist Trevor Simumba, however, believes the true extent of external public debt might be higher owing to the opacity around debt contraction from China. He might very well be right.

Before concluding, I want to briefly talk about one aspect that struck me from the IDSH that few talked about yesterday and that I had been unaware of. According to page 150 of the IDSH, Zambia’s private sector owes a whopping $14.7 billion to foreign creditors! In other words, private multinational corporations, private companies and private individuals all domiciled in Zambia collectively owe about 54% of Zambia’s Total External Debt (recall the definition of this from above). This implies that Zambia’s private sector is just as indebted to foreign creditors as the Zambian government is. In actual fact, the private sector owes much more.

As a country, we have not debated and thought about private sector debt as much as we should. It’s worth engaging with this issue because, for one thing, economic crises can result from the unsustainable buildup of external debt by the private sector (see the Asian Financial Crisis) just as much as they can from unsustainable buildup of public debt. Second, pressure on the domestic currency (the Kwacha) can also arise from the demand for foreign currency by the private sector to meet its external debt obligations just as it can from demand by the government. So in a nutshell, any talks about devising a strategy for Zambia’s external debt should include discussions about external debt held by the private sector.

Notes:
[1] The IDSH refers to it as “Public and Publicly Guaranteed Debt”

The Author teaches economics at the Graduate School of Business at the University of Cape Town. From 2016 to 2017 he was a postdoctoral fellow at the Center for African Studies at Harvard University. He holds a PhD in Economics from the University of Cape Town. His twitter handle is @gchelwa.

Micho Hint’s Which Pro’s Made The Cut From October Friendlies

sports
-
1

Chipolopolo coach Milutin ‘Micho’ Sredojevic has given an indication of who might return to face Botswana in November’s 2021 AFCON doubleheader qualifier from the seven foreign call-ups who were part of the October three- match friendly series.

With the obvious exception of TP Mazembe defender Kabaso Chongo who was expelled from camp due to ‘technical reasons after the loss to Kenya, seven players are keeping their fingers crossed that had done enough in their first Chipolopolo get-together with new coach Micho.

“I need with the most respect without mentioning any names to say three and a half of them have qualified to get the tickets to come back while one and a half are in question mark,” Micho said.

“Because bringing someone from different parts of the world and difference is not made, unfortunately that will not work for us.

“We want to bring the people that will make a visible difference and I want to thank them it is not easy to come from there clubs.”

Swedish-based midfielder Edward Chilufya who made his senior debut in the 2-1 away loss to Kenya and was substituted after halftime following a modest shows maybe one of the one-and-a-half.

He did not make the lineup in the subsequent 2-1 away win over South Africa on October 11.

Fashion Sakala, Lubambo Musonda, Kings Kangwa and Evans Kangwa played the opening 60 minutes of both Kenya and South Africa games but did not score while Gampani Lungu came on as a late replacement in the two matches.

Meanwhile, striker Mwape Musonda who was excused from the October camp, to tie-up a move at UAE club Hatta, is a strong prospect to return together with the obvious picks from Austrian champions RB Salzburg,Patson Daka and Enock Mwepu, who missed the tour due to a Covid-19 lockdown at the club.

Shonga and Mulenga Reunited at SA Club TTM

sports
-
0

Snubbed Chipolopolo duo of midfielder Augustine Mulenga and striker Justin Shonga have reunited at South African club Tshakhuma Tsha Madzivhandila FC (TTM).

The club from the Limpopo Province in South Africa, who last season played the second tier, bought its PSL slot from legacy club Bidvest Wits at the end of the 2019/2020 campaign.

South African media reports confirmed that Shonga and Mulenga were part of TTM’s roster for the 2020/2021 season.

Both Shonga and Mulenga were released by Orlando Pirates this week and last week respectively following a forgettable season with the Soweto giants.

Shonga joined Pirates from Nkwazi in 2017 while Mulenga followed him there in 2018 from Zanaco.

Both were snubbed by Chipolopolo coach Milutin ‘Micho’ Sredojevic for the October three-match friendly series against Malawi, Kenya and South Africa.

Meanwhile, the duo could make their TTM debut as early this Saturday, October 17 when TTM face SuperSport United in the Top 8 Cup quarterfinals.

Government holds dialogue with Cooperating Partners focusing on COVID, debt sustainability and management

Chief Editor
-
3
Government holds dialogue with Cooperating Partners focusing on COVID, debt sustainability and management

The Government of the Republic of Zambia has held the third High Level Policy Dialogue Meeting focusing on the impact of the novel corona virus (COVID-19) pandemic and Zambia’s debt sustainability and management.

The Minister of National Development Planning Hon. Alexander Chiteme, MP, and Irish Ambassador to Zambia His Excellency Seamus O’Grady, who chairs the Cooperating Partners Group, co-chaired the High Level Policy Dialogue meeting.

Addressing the meeting, Mr. Chiteme said COVID-19 and debt sustainability and management are at the core of Zambia’s development agenda and pose a great risk in the attainment of the objectives set in the Seventh National Development Plan (7NDP).

The Minister also informed the meeting that Zambia has commenced the preliminary activities for the preparation of the 8th National Development Plan (8NDP).

“We project that the plan will be ready before the end of 2021 with implementation scheduled for 2022. In developing the next plan, a number of factors or developments are being taken in considerations and these include the impacts of the covid-19 pandemic, the performance of the 7NDP at mid-term review, as well as the current constrained macroeconomic environment. Internal government consultations are progressing well; and at an appropriate time, government will also engage you as our cooperating partners,” Mr. Chiteme said.

The Minister thanked and acknowledged the support that the Zambian Government has received from the Cooperating Partners in development.
“We are still counting on your unwavering and continued support as we strive to reach our vision 2030; and to deliver development and improved living standards for our people, without leaving anyone behind,” Mr. Chiteme said. “Thank you for your timely coming to our aid in the fight against the COVID-19 pandemic. Combating covid-19 is a heavy task which Government could not tackle alone. Your quick action is indeed commendable, and demonstrated that Zambia can still count on its development partners and the global community in responding to any crisis of significant magnitude.”

The Minister also updated the Cooperating Partners that the Census of Population and Housing will be held in 2021.
He explained that the delay was due to the COVID-19 pandemic and constrained fiscal space.

“The Government has successfully undertaken censuses in the past and was equally determined to conduct the 2020 census of the population as per international standards. This important exercise could have provided useful preliminary information even as the country undertakes the formulation of the 8th National Development Plan,” Mr. Chiteme said. “However, due to the impact of the COVID-19 pandemic which led to the postponement of most of pre-census activities, coupled with the constrained fiscal space, the Government could not proceed to hold the census as planned. The exercise will now instead be conducted next year, in 2021.”

The National Development Planning Minister said that the key census preparatory activities, including mapping of the entire country had successfully been completed, and the pilot census is underway.

Mr. Chiteme said: “Undertaking a census is a massive, complex and costly undertaking for any nation. Therefore, this important task should not be left to Government alone, hence my humble appeal to you, our development partners, to come on board as we plan to complete the census exercise in 2021.”

Speaking on behalf of Cooperating Partners, Ambassador O’Grady said the onslaught of COVID 19 has presented the world with unprecedented challenges, both socially and economically, in developing nations such as Zambia. He said the Cooperating Partners were committed to assist Zambia.

“We recognise that effective co-operation is based on shared values underpinned by good governance so that effective use of resources improves the lives of all Zambians. Yes, the current environment is challenging but today is an opportunity for us to reflect on the challenges ahead and engage in an honest reflection as to how they may be surmounted,” said Ambassador O’Grady.

And UN Resident Coordinator Dr. Coumba Mar Gadio assured that the UN family stands in solidarity with the Government of Zambia and its people to build back better through the COVID-19 multi-sectoral contingency and response plan, which constitutes a great foundation.

“Moving forward, we will need to go beyond this to protect development gains, and help the economy and households stay afloat,” said Dr. Gadio. “The United Nations in close collaboration with the Government has already started work on a series of national assessments looking at the impact of COVID-19 on education, gender equality, food security, health, nutrition, businesses and social welfare.”

Dr Gadio said the UN was fully cognisant of the efforts that the Zambian Government was making to fight against the outbreak of the African Migratory Locusts affecting country and its neighbours.

“The UN through FAO has developed and started implementing a USD 3.5 million Response Plan and has escalated its efforts to mobilise resources at regional level. Given the high potential threat on food security of the country, the UN still invites and welcomes Cooperating Partners to join in this fight,” said Dr. Gadio.

The Zambian Government delegation included the Minister of Health Hon. Dr. Chitalu Chilufya, Minister in the Office of the Vice-President Hon. Olipa Phiri, Minister of Community Development Hon. Mulenga Kampamba Chewe, Minister of Finance represented by the Secretary to the Treasury Mr. Fredson Yamba, who all made presentations pertaining to their portfolios. Others were Ministry of National Development Planning – Permanent Secretary in charge of Development Cooperation, Monitoring and Evaluation Mr. Danies Chisenda, Ministry of Health Permanent Secretary (Technical Services) Dr. Kennedy Malama and other senior government officials.

Cooperating Partners included Japanese Ambassador to Zambia Ryuta Mizuuchi, US Chargé d’Affaires David Young, and other envoys accredited to Zambia and heads of international organisations.

This is according to a media statement issued in Lusaka today by Ministry of National Developmet Planning Spokesperson Mr. Chibaula D. Silwamba.

President Lungu calls for UNZA Alumni to give back

Chief Editor
-
11
President Lungu calls for UNZA Alumni to give back

President Edgar Lungu has urged University of Zambia students to collaborate with the institution and contribute to its development and effective service delivery.

President Lungu who is a former student of UNZA in the school of law observed that the UNZA Alumni have an important role to play in ensuring institutions remain the best in research output, infrastructure development and scholarships among others.

The head of state was speaking in Lusaka today, during a virtual 49th Graduation Ceremony for the University of Zambia.

He said as a graduate of UNZA the training he had received from the university has contributed to the different leadership positions he has held including that of Republican President.

“As graduate of the UNZA myself I have benefited greatly from the training received from the school of law, I developed skills without which I would have not assumed various leadership positions in life including the service to the people of Zambia as President,” he noted.

President Lungu also added that the development that has taken place in various sectors of the country’s economy since independence can also be attributed to UNZA’s effective training abilities that has seen many Zambians acquiring skills from it.

He further urged the former students to come together and help the institution in its strive to remain the best for the benefit of the future generation.

“Therefore I urge UNZA to continue being one of the best for the benefit of our children, grand great children’s children but it can only do that lets Join hands as alumni and give back to UNZA within the context of our abilities,” he said.

President Lungu further encouraged the graduating students, to take note that graduating at UNZA would give them a global passport for success in their career endeavors.

A total of 4, 927 candidates graduated at the 49th virtual Graduation Ceremony for the University of Zambia.

There is no international artist who has been cleared to perform in Zambia this weekend- Tourism Ministry

Chief Editor
-
7
There is no international artist who has been cleared to perform in Zambia this weekend- Tourism Ministry

The Ministry of Tourism and Arts has clarified that there is no international artist who has been cleared to perform in Zambia this weekend.

Ministry of Tourism and Arts Public Relations Officer Sakabilo Kalembwe said in accordance to provisions of the National Arts Council every person is required to obtain a promoters license.

Mr Kalembwe stated in a statement to the media in Lusaka today that there is no application that that has been received by NAC.

“In accordance to provisions of the (NAC) Act Cap 170 of the Laws of Zambia and Statutory Instrument 129 of 199 5 Section 5, no person or organization is allowed to promote any artistic event without a promoters license obtained from the National Arts Council of Zambia,” the statement read in part.

He emphasized that all foreign artists are supposed to be cleared at least three months before the event and are expected to pay 20 percent of performance fees as Withholding Tax Clearance to the Zambia Revenue Authority.

Mr Kalembwe was quick to mention that the Ministry appreciates the support it received including from the President Edgar Lungu in ensuring that all art forms are promoted and developed.

yesterday, there were reports that South Africa’s musical star Master KG who has gotten the world dancing with hit song ‘Jerusalema’ will this Saturday be gracing a Patriotic Front rally in Ndola on the Copperbelt.

Master KG real names, Kgaogelo Moagi, was to perform live in the Musa Kosonka Stadium during what the ruling PF is calling a COVID-19 Sensitisation Rally.

However, the Patriotic Front has cancelled its scheduled Ndola mobilisation rally that was billed for Musa Kasonka Stadium on Saturday.

PF National Mobilisation Chairman Richard Musukwa said that the decision follows various concerns raised by interest groups and some stakeholders.

Mr Musukwa has since directed PF Copperbelt Mobilisation Chairman Bowman Lusambo to postpone the rally in order to give the party room to address the various issues raised.

He has apologised for the inconvenience caused but stressed that the Mobilisation rally will be held at the earliest convinient time.

Mr Musukwa explained that the Mobilisation rally will be preceded by a meeting of the Copperbelt party structures and the Mobilisation team to be convened by the PF Secretary General Davis Mwila following a recent presidential directive.

Mr Musukwa has told ZNBC News that the mobilisation team should complement the party structures to consolidate the PF political base.

And Mr MUSUKWA has directed that the rescheduled Ndola mobilisation rally will only feature Local artists to avoid the recurrence of controversy.

Copperbelt Province Permanent Secretary Nundwe urge all to attend National day of Prayer

Chief Editor
-
6
Copperbelt Province Permanent Secretary Nundwe urge all to attend National day of Prayer

Copperbelt Province Permanent Secretary, Bright Nundwe has called on residents in the province to turn up in numbers and seek God’s guidance and intervention during this year’s national day of prayers.

Mr. Nundwe said the day should however not be politicised as it is an important day for the nation while advise has been given to district commissioners to encourage people in their respective districts.

Mr. Nundwe also said COVID-19 guidelines should strictly be adhered to and that prayers which will be conducted in the afternoon have been restricted to two hours only.

“I want to direct all District Commissioners in the province to make sure that people come in numbers and pray for rains, good health and prosperity for the nation while observing the guidelines given to us by the ministry of health,” Mr. Nundwe urged.

Meanwhile, Mr. Nundwe has cautioned bar owners defying the presidential directive on the hours of operation to face punishment.

The Permanent Secretary said he has observed with great concern that some bars are operating seven days a week and 24 hours a day contrary to the directive issued by the Head of State.

He said local authorities should intensify patrols by making sure that guidelines on COVID-19 are adhered to.

Meanwhile, Paul Ngosa Bar Association of Zambia- Ndola chapter member said the association has also observed that a lot of bars and taverns in densely populated areas have are operating 24/7 every day.

Mr. Ngosa said via telephone that it is up to the councils to intensify patrols and ensure that sanity prevails in the operations of bars and taverns.

He said those within town Centre have strictly adhered to the Presidential directive and that the council should level the playing field so that no one complains.

Mr. Ngosa was however, quick to strongly appeal to President Lungu to allow bars and taverns operate at full capacity while observing health guidelines as prescribed by the Ministry of Health.

“Life really is hard for us as bar owners. We have rentals, salaries and wages and other expenses to pay. We are not managing with the current situation and we are appealing to the Head of State to allow us operate at full capacity,” Mr. Ngosa said.

This year’s National Day of Prayer will be held under the theme: “Zambia seeks God’s intervention for Sustainable National Unity, Peace and Prosperity.”

An elephant kills a scout

Chief Editor
-
1
An elephant kills a scout

A 42 year old scout from the Department of National Parks and Wildlife in Chama District of Muchinga Province has died after he was attacked and killed by an elephant.

Both Muchinga Province Police Commissioner Joel Njase and Chama District Commissioner Leanard Ngoma have confirmed the incident to ZANIS in Chinsali District today.

Eng. Njase said the incident occurred on October 14, 2020 at 12:30 hours in Musalangu East Game Management Area in Chama District which was reported to Chama police station.

Eng. Njase stated that Rodgers Zozi aged 39 of Mundalanga wildlife camp in Chama District reported that whilst on duty controlling some elephants in a group of three wildlife scouts, one scout Tenson Kabandama aged 42 of Chitheba village in Chama was attacked and killed by a lone elephant which charged on him.

”The deceased sustained fractured right leg, deep cuts on the right arm, broken ribs and cuts on the left arm,” the police commissioner added.

He said the body of the deceased has since been deposited in Chama District Hospital Mortuary awaiting postmortem examination and possible burial.

And Chama District Commissioner Leonard Ngoma told ZANIS in a telephone interview that the Department of National Parks and Wildlife managed to kill elephant this morning around 02:00 hours in the same area.

Mr Ngoma has however, called on residents in the area to be careful and avoid moving alone at all time.

The body of the deceased will be buried tomorrow Friday, October 16.

President Lungu blasts the Engineering Institute of Zambia for allowing Unprofessional Work in Construction

Chief Editor
-
32
President Lungu blasts the Engineering Institute of Zambia for allowing Unprofessional Work in Construction

President Edgar Lungu has implored engineers in the country to be professional in their line of duty as they will be accountable for their wrong actions.

President Lungu says the Engineering Institute of Zambia (EIZ) has not been proactive in inspecting the quality and durability of infrastructure being implemented in the country.

The Head of State made the remarks when he held a meeting with EIZ members and selected cabinet ministers at State House today.

The visibly upset president, wondered why engineers do haphazard works for government projects but implement cost effective and durable projects in the private sector.

“Some engineers when in government, they do haphazard works but the same people do extremely well when they are in the private sector, why? Do you inspect the works before certifying or not, look at the Zambia Building Society House in our central business district, it is a sorry sight yet your institution is aware and nothing is being done about that disaster in -waiting,” President Lungu charged.

President Lungu, who demanded an explanation on what punishments are imposed on erring members, has noted that the cost of projects in government is too high compared to the private sector yet the same engineers do the design works.

The Head of State has stated that it is disheartening that in certain instances the cost of constructing a gravel road is double than the actual cost.

During the meeting, President Lungu recalled that President Paul Kagame of Rwanda appreciates the skill and expertise being exhibited by Zambian engineers in his country yet they do not exhibit the same enthusiasm back home.

“My counterpart in Rwanda is appreciative of the works being implemented by you engineers. Due to the trust you have earned in that country the Road Development Agency (RDA) has been replicated in Rwanda and people in that country are happy with the jobs you do. Now, if perfect works are being done in that country by our own engineers, why don’t you do the same works here in your own country?” President Lungu wondered.

Engineers Institute of Zambia president Eng Abel Ngandu speaking during a meeting with President Edgar Lungu at State House
Engineers Institute of Zambia president Eng Abel Ngandu speaking during a meeting with President Edgar Lungu at State House

And Engineering Institute of Zambia (EIZ), Able Ng’andu, who has hailed government for the massive infrastructure development rolled out in the country, says the concerns that President Lungu raised are being addressed by his firm.

Mr Ng’andu has explained that five erring engineers will be disciplined before the end of this week and their licenses will be revoked by the ethics and integrity committee.

He has assured that going forward, his firm will be more proactive in order for government to get the value for its money through the certification of durable projects.

“Going forward, we will be proactive and erring members will be punished to send a signal to a few bad eggs in the profession. The issues you have raised like that of the Society House and Ndola-Luanshya road among others are embarrassing to our profession, and we will not allow such to continue going on and this week we are instilling discipline on five members,” assured Mr Ng’andu.

President Edgar Lungu speaking when he met the Engineers institute of Zambia members at State House
President Edgar Lungu speaking when he met the Engineers institute of Zambia members at State House

Meanwhile, Cabinet Ministers also took turns to express their concerns on the matter with minister of Local Government, Charles Banda who pointed out that EIZ needs to put more efforts because the massive infrastructure development that government has embarked on, deserves high quality works.

Further, Minister of Finance, Bwalya Ng’andu has warned that going forward all engineers who do substandard works will be imprisoned because the projects come at a huge cost to government.

And Minister of Presidential Affairs, Freedom Sikazwe has questioned the caliber of engineers that certify shoddy works, stating that his constituency has not been spared by the act of negligence, involving certification of schools and clinics that get dilapidated before being commissioned.

1...1,1411,1421,143...5,566Page 1,142 of 5,566

Company

Trending

Categories

© Lusaka Times