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Consider COVID-19 in the 2021 Budget – PMRC.

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Consider COVID-19 in the 2021 Budget – PMRC.

The Policy Monitoring and Research Centre (PMRC) has observed that the country needs to plan for the 2021 National Budget in such a way that it continues to shield the economy in an event that the negative effects of COVID-19 are still prevalent by next year.

PMRC Executive Director Bernadette Zulu said key sectors that have been negatively affected by the COVID-19 pandemic must be prioritized in the 2021 National Budget to spur economic recovery.

Mrs Zulu explained that there is an urgent need to factor in alternative financing in the 2021 national budget for infrastructure projects in the road, transport and infrastructure sectors especially the roads and airports that are currently being constructed.

In the statement availed to the media in Lusaka today, the PMR Executive Director pointed out that Zambia should begin to position itself by developing a National Continental Free Trade Agreement (CFTA) implementation plan that prepares the country for industries and businesses to participate effectively in the CFTA.

“Industrialization remains very critical and Zambia must review the performance of Industrial Yards and Multi-Facility Economic Zones to establish lessons that can be learnt and then set out a next phase of strategically developing industrial yards across the nations. PMRC also submits that the National Local Content Strategy should also be emphasized across all manufacturing lines,” the statement read in part.

On domestic resource mobilization, PMRC called for the government to accelerate the implementation of the Land Titling Programme, which will significantly contribute to the generation of Government revenues.

She was quick to state that government should provide an update on the operations of the development funds such as the Fisheries Development Fund, Youth Development Fund, Skills Development Fund and the Tourism Development Fund and the progress made towards achieving their intended goals as they are key in the implementation of government programmes.

In the Mining Sector, the policy think tank urged the government to put in place a fiscal regime that will attract the necessary investment, so that the mining sector can make a quick recovery as was the case in 2009.

To further enhance the agriculture sector, PMRC proposes that Government prioritizes upfront funding to the Farmer Input Support Programme (FISP) focusing on the Electronic-FISP as opposed to Direct Input Supply (DIS) as it is cost-effective.

Minister of Finance Dr Bwalya Ng’andu is tomorrow, September 25th expected to present the 2021 proposed national budget at the National Assembly.

EU affirms its support in improving renewable energy

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EU affirms its support in improving renewable energy

The European Union(EU) and the French government have pledged to continue supplementing government’s efforts in improving the power generation and access to electricity by all citizens in the country.

European Union Head of Mission to Zambia Jacek Jankowski said the EU has injected at least 240 million euros in the energy sector for the enhancement of modern energy production such as renewable.

Mr. Jankowski pointed out that the EU pays attention to renewable energy as it increases access to electricity by all in the wake of climate change.

Mr. Jankowski explained that renewable energy should be explored by all countries as it is cheap and affordable.

“Securing affordable, accessible, and reliable energy is key for economic growth in any given country and Zambia is among the country that is pursuing renewable energy as it expands the generations of hydro-electricity stations. We pay special attention to renewable energy because it is very cheap and people from rural and urban areas can easily access it,” stressed the EU envoy.

And the French government underscored its continued support to the country in the generation of renewable energy.

Speaking at the preparatory meeting for the Renewable energy conference to be hosted in Lusaka from October 27th to 28th 2020, French Ambassador to Zambia Sylvain Berger explained that France remains steadfast to cushion the load shedding in Zambia that has been necessitated by the effects of climate.

Mr. Berger pointed out that Zambia has the potential of supplying renewable energy in both Southern and Eastern Africa adding that the forthcoming renewable energy conference will be a platform for experts to share knowledge.

He emphasized that the conference being organized by the French Chamber of Commerce will further enhance renewable energy production.

“France and Zambia have cemented bilateral ties in the energy sector as well as other key sectors of the economy. We are collaborating well in the rehabilitation of Kariba Dam and where enhancement of renewable energy production is concerned we are organizing the conference that will bring together over 100 experts in October to share the knowledge,” said Mr Berger.

Meanwhile, the French Ambassador to Zambia whose mandate comes to an end by October month-end described his stay in Zambia as memorable.

Mr Berger recollected that during his stay in Zambia the ties between the two countries have been strengthened.

He pointed out that despite the COVID-19 pandemic, France and Zambia collaborated well in the energy and security sectors.

The French–Zambian Chamber of Commerce is organizing the conference on renewable energy in Zambia that will be held from 27th to 28th October whose major objectives are to access the potential of the renewable energy sector in Zambia and its prospects as well as allowing the private and public stakeholders to debate thematic subjects.

Residents of Kankoyo complain of sulphur dioxide pollution

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Residents of Kankoyo complain of sulphur dioxide pollution

A civic leader of Mufulira District says the continued sulphur dioxide pollution from Mopani Copper Mine has damaged most roofs in Kankoyo Township.

Kwacha Ward Councilor Sofa Mwanza said most of their roofs in Kankoyo have corroded and are leaking badly which he said may expose people to rains if left unattended to.

“During the rainy season, people in my ward cannot sleep but stay up all night holding buckets under the leaking parts of the roofs to prevent their homes from flooding,” she said.

She said it has been costly for people to keep changing their roofing sheets as they still get damaged within a short period of time due to the strong emissions.

“My ward is very close to the mine plant and a lot of houses have been affected by these sulphur emissions such that people stay up all night in the rainy season with buckets on their heads just to protect their houses from flooding,” she said.

She said as the rain season draws close, the people of Kwacha Ward in Kankoyo are living in fear, adding that there is need to find a quick solution to the problem.

“My appeal to all stakeholders is that let whatever can be done to help these people be done quickly because they are really suffering, these people are not living well,” she said.

Fitch Downgrades Zambia to near junk status, says debt default is imminent

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Fitch Downgrades Zambia to near junk status, says debt default is imminent

Fitch Ratings has downgraded Zambia’s Long-Term Foreign-Currency Issuer Default Rating (IDR) to ‘C’ from ‘CC’.

Fitch has also downgraded the ratings on Zambia’s senior unsecured foreign-currency bonds included in the “consent solicitation” to ‘C’ from ‘CC’.

This includes all of the foreign-currency bonds rated by Fitch.

Fitch typically does not assign Outlooks or apply modifiers for sovereigns with a rating of ‘CCC’ or below.

The downgrade reflects Fitch’s view that a sovereign default will follow the “consent solicitation” issued by the Zambian government on suspending debt service payments on its three outstanding global bonds.

A suspension in payments, if agreed to by bondholders, would constitute a distressed debt exchange (DDE) in Fitch’s view.

“Fitch deems this formal request to be the initiation of a default-like process, consistent with a ‘C’ rating. Should majorities of creditors agree to the request at the thresholds specified in collective action clauses, the payment standstill would constitute a DDE under Fitch’s criteria given that it entails a material reduction in terms and is needed to avoid an outright default,” it said in a statement.

The government has indicated that they will continue to make debt service payments on outstanding Eurobonds if an agreement is not reached.

Fitch however judges that there is a high risk of a missed debt payment over the forecast horizon.

“The sovereign’s already constrained external liquidity was exacerbated by the shock from the coronavirus pandemic.

Fitch downgraded Zambia’s rating to ‘CC’ on 16 April to indicate the increasing likelihood of a default event as a result of these pressures.

Hichani Himonde Joins Ndola United Bench

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Former Chipolopolo and TP Mazembe defender Hichani Himonde has joined Ndola United as an assistant coach.

Himonde, the 2012 Africa Cup champion, has joined the United bench headed by Coach Nchimunya Mweetwa.

Speaking at Musa Kasonka Stadium in Ndola, Himonde said he was excited to be part of the FAZ Copperbelt Division 1 side.

Himonde had been working with a youth academy in Ndola before this appointment.

“I am happy to be here at Ndola United and I am grateful to management. This is a big team with big history. I am coming here to learn as well and contribute to the well being of the club,” he said.

“I can’t wait to share my experience in football with the club. For the club to bring me here, they expect something from me and they have seen something in me,” Himonde said.

He expressed his excitement to work with Mweetwa.

“Mweetwa is like my elder brother, when I was playing for the Under-23, he was playing for the senior national team. He is like a teacher and a brother to me; we have been talking even before I came,” said Himonde.

The Masala outfit is next season aiming to win promotion to the FAZ National Division 1 League.

Bank of Zambia disburses 1.8 billion of the 10 billion Kwacha Stimulus Package

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Bank of Zambia disburses 1.8 billion of the 10 billion Kwacha Stimulus Package

The Bank of Zambia has disbursed 1.8 billion of the 10 billion Kwacha stimulus package.

According to a Status Update Report circulated by the Central bank, six commercial banks and five non-banking institutions accessed the funds as at September 22, 2020.

The Central Bank has also approved six billion Kwacha which is expected to go to priority and non-priority sectors of the economy.

Meanwhile, 11 banks and 17 non-banks have applied for a total of 7.1 billion Kwacha.

The Central Bank estimates that over 16,800 individuals and households have benefited from the stimulus package.

One of the biggest beneficiaries of the stimulus package is Atlas Mara which has been granted 533 million Kwacha.

Stanbic Bank is the second-largest beneficiary with 494.4 million Kwacha.

Indo-Zambia Bank is third with 323 million Kwacha.

Zambia a preferred Agri destination- Germany

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Zambia a preferred Agri destination- Germany

The German government says Zambia has the potential to attract more investments especially in the agricultural sector that can boost its Foreign Direct Investment (FDI).

Special Envoy for Africa in the office of the German Chancellor, Angela Merkel, Gunter Nooke said this during a web meeting held in Berlin today.

Zambia’s Ambassador to Germany, Anthony Mukwita, and more than 100 Ambassadors accredited to that country, participated in the meeting.

This is according to a statement that Zambia’s First Secretary for press and public relations to Germany Kellys Kaunda issued to ZANIS in Lusaka today.

Dr Nooke singled out Zambia following a question arising from Ambassador Mukwita who called on that country to increase its agriculture investment support in Zambia.

“Zambia is a good example of investment between Germany and an African country because we already have a German company called Amatheon which has pumped in more than 100 million euros in a commercial farm. We can do a lot with the agriculture sector in Zambia, but this must be long term with irrigation etc,” Dr Nooke responded.

“Agriculture is good and it creates jobs but what we need to do is build long term trust; we need to build trust and work together to attract more investment from Europe so that the youth in Africa do not migrate as labourers but work in Africa,” the Chancellor’s Special envoy stressed.

As other panelists noted the ongoing developments in Africa, contrary to popular opinion of a dark continent, Dr Nooke explained and supported that more infrastructure is needed on the continent in order to boost its economic growth.

He cited the road-network as one such example, and added that more was needed to support the much-needed economic development.

The German senior official acknowledged with cautious optimism some of the efforts African countries were making in infrastructure development.

The Zambian government under the administration of President Edgar Lungu, has prioritised investment in infrastructure to support economic and trade activities.

And as part of its developmental agenda, government is constructing roads to connect the country’s more than 100 districts including its eight neighbouring states.

Other developments include airports to increase air traffic and boost tourism; communication towers to increase the quality of communication and connectivity thereby facilitating access to information and communication technologies in the country.

Further, construction of health and education facilities are ongoing to facilitate universal health coverage among communities as well as provide education to promote equal opportunities for all.

For a long time now, the need for infrastructure has been part of the dominant theme in the global development narrative.

CTPD’s 2021 National Budget Expectations

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CTPD’s 2021 National Budget Expectations

Introduction

As the 2020 fiscal year nears its end, the Minister of Finance of the Government of the Republic of Zambia will present the 2021 National Budget on Friday, 25th September, 2020. This national budget presentation comes at a time when the world is faced with the Covid-19 global health pandemic which has impacted negatively on lives and livelihoods. Faced with a deteriorating macro-economy, the government is expected to present a national budget which speaks to prevailing socio-economic circumstances while painting a picture of hope towards economic recovery.

The Centre for Trade Policy and Development wishes to share its reflections on the performance of the 2020 national budget, on which basis, expectations for the year ahead are made.

Performance of the 2020 national budget

The 2020 national budget, whose theme was “Focusing national priorities towards stimulating the domestic economy,” was projected to be K106 Billion (32.4% of GDP). 67.9% of this amount was expected to come from domestic revenues while the balance would be raised via domestic and external financing.

In the spirit of “doing more with less”, the budget sought to achieve five (5) macro-economic targets, namely:

  1. To achieve a real GDP growth rate of 3%,

  2. To maintain inflation within the 6-8% target range,

  3. To increase international reserves to at least 2.5 months of import cover,

  4. To reduce the fiscal deficit to 5.5% of GDP and

  5. To increase domestic resource mobilization to at least 22% of GDP.

Zambia’s economic growth is now projected to drop to negative 4.2% in 2020 as opposed to the 3% growth target envisaged during the presentation of the 2020 national budget. The main factors explaining this performance are:

  1. The adverse impact of the Covid-19 pandemic on general economic activity and employment.

  2. Episodes of load-shedding due to low electricity supply

  3. Rising costs of production largely associated with rising energy costs and depreciating currency.

  4. High public debt, leading to higher debt servicing costs, inevitably taking away social and productive sector public spending.

Inflation has remained substantially above the target range of 6-8% envisioned by the 2020 national budget, currently hovering around 16%. Given that food inflation remained relatively stable, lingering around 15% from December 2019 to August 2020, we note that upside pressures on overall inflation over this period emanated from non-food inflation which rose to 15.4% in August 2020 from 7.8% in December, 2019. Inflationary pressures over this period have been attributed to higher fiscal deficits and deeper than projected global and domestic economic contractions.

There was a nominal improvement in the reserve position for the first half of 2020, as gross international reserves increased to US$1.43 billion (equivalent to 2.3 months of import cover). In contrast to the 2.5 months of import cover target in the 2020 national budget. While this may appear encouraging given that three more months remain before the year ends, the improved reserve position is not due to increases in export earnings but rather a reduction in import volumes resulting from effects of the Covid-19 pandemic.

In terms of the fiscal deficit, estimations reveal a much larger deficit than the 5.5% envisaged by the 2020 national budget. Higher debt from both external and domestic sources due in part to spending pressures resulting from the Covid-19 pandemic. While for 2019, the Zambia Revenue Authority reported to have surpassed its revenue target, the substantial contraction in economic activity in 2020 is expected to lead to failure in achieving the 22% of GDP estimation in domestic resource mobilisation.

Based on these reflections, the 2020 national budget has so far underperformed. Thus, CTPD hopes that the 2021 national budget will provide candid economic recovery plan.In general, CTPD expects the 2021 National Budget to underscore strategies to mitigate the impact of Covid-19 while constructing strategies towards economic recovery. Specifically, we expect strategies and measures to address the fiscal deficit, rising inflation, depreciating Kwacha, domestic resource mobilisation, resuscitation of economic activity, especially in priority sectors.

Expectations on the Covid-19 pandemic, with reference to health and economic recovery

COVID-19: We expect that government continues to safeguard the lives and livelihoods of the people in the wake of Covid-19 pandemic. In this regard, we expect that health system strengthening will prioritise resources towards fighting the Covid-19 pandemic, particularly in terms of medical supplies.

We also expect the 2021 national budget to provide an update and further guidance on the implementation of the relief package commonly known as the Covid-19 bond or K10 billion medium-term refinancing facility or K10 billion stimulus package.

Further, in the quest to increase liquidity in the private sector and support businesses as they seek to revive operations following the loosening of Covid-19 restrictions, we expect government, through the Bank of Zambia (BoZ) Monetary Policy Committee to continue taking a relaxed monetary stance in 2021 that seeks to keep interest rates low and therefore improve credit availability.

Expectations on the Macroeconomic front

In anticipating economic recovery, we expect the 2021 national budget to report growth at the end of 2021. Thus, we recommend that government pursues a private sector led economic recovery. This will require putting up measures that will increase liquidity in the private sector such as dismantling of the domestic debt and arrears while maintaining low interest rates to increase the availability of credit.

We expect that the government will put in place measures to address inflation, aiming to reduce inflation to single digits in 2021.

We also expect the government to address the depreciating Kwacha in terms of promoting exports and other policies aimed at improving international reserves position.

On account of the sustained depreciation of the Kwacha, it is expected that the budgetary allocation towards debt servicing will increase. Thus, it is imperative that the Minister of Finance beckons government to remain committed to the fiscal consolidation agenda and assure the nation that debt will be at sustainable levels.

Further, we expect the government through the 2021 national budget to bring confidence in its fiscal management, particularly showing how debt servicing will not sacrifice crucial social (and productive) expenditure. Thus, we expect the 2021 budget to show that expenditure in education and social protection will not suffer due to debt repayments.

We expect the government to speak to debt restructuring. We also expect government to commit to active engagements with the IMF with a view to securing financial assistance and restore fiscal balance, while also sending message of fiscal confidence to potential investors.

 

FISCAL DEFICIT: We expect that the intent to reduce the fiscal deficit remains a key macro-economic target. This should be supported by measures that will seek to revive business operations in the private sector, widen the tax base and improve compliance levels in tax revenue collections. Government expenditure will also need to be put to check, especially in the run up to the 2021 general elections. We also acknowledge the ambitious infrastructure development agenda that government has continued to implement in 2020 which has led to rapid debt accumulation in the recent past. Going forward, we recommend that government considers extending the timeframe for completion of some of these projects while looking into alternative sources of funding them other than debt.

 

Expectations on the agricultural sector

Zambia’s budgeting for agriculture has been low and fluctuating. In the past three years, the share of the national budget has moved from 9.4%, 8.3%, 6.1%, 3.7% in 2017, 2018, 2019, and 2020 respectively. In 2020, this had been about 25% decline in public expenditure on agriculture. In monetary terms, the 2020 budget presented a decline from ZMK5.3 billion in 2019 to ZMK 3.97 billion. Some of these elements relate to the overall poor performance of the country. Compounding this has been constant marketing board price supports that affect private sector participation. This focus in terms of state approach has challenged value chain financing and commercialisation of agriculture in order to drive sectoral growth and long-term productive investments some of which relate to research and development, infrastructure and extension services.

The role of the FRA food reserve agency vis a vis the Food Reserve Bill 2020 remain controversial. Evidence suggests FISP has failed to reduce rural poverty as upfront costs, explicit targeting, and related cooperative requirements have tended to exclude the vulnerable groups with head count rural poverty rates still revolve around 58%. These elements advance amidst the wider challenges of climate change and COVID-19, elements considered necessary in building rural agriculture production and livelihood resilience. For the 2021 national budget presentation, our expectations are that:

  1. The budget should endeavour to build not only production capacity for majority small-scale farmers but also the marketing dynamics related to this, somewhat of the long-term productive investments, research and development, infrastructure such as irrigation, and value addition.

  2. There is need to enhance income disbursement for rural populations which can then help to adapt to COVID-19 and Climate change. Whilst this view has high payoffs in 5 to 20 years and is critical for sustained poverty reduction, the government will need to balance this objective with social protection as way to build local support.

  3. The government should avoid a business as usual approach but adapt to the changing circumstances the sector to changing circumstances the sector finds itself into. We expect more wider support in production and marketing.

Expectations on the mining sector

The mining sector continues to be the backbone of Zambia’s economy. The sector contributes about 14% to GDP and about 74.4% of export earnings. This being so, the 2021 budget should exploit the mining sector to achieve economic recovery for the Zambia we want.

When Covid-19 broke out mineral commodity prices plummeted and this sent ripple effects across the economy. The government responded to this through the implementation of a tax relief package aimed at cushioning the mining sector. This included a suspension of export duty on precious metals and import duty on copper concentrates. This was a welcome move that was warmly received by the mining companies. However, we want to reiterate that government can further induce relief of mining cash flows to allow room for sustained mineral production, employment, and mine expansion through exploration activities.

As the Minister makes the presentation of the 2021 budget on Friday, the following are our expectations of the budget on the mining sector.

  1. In the spirit of initiating economic recovery, we expect the Government to reintroduce the deductibility of mineral royalty to calculate Company Income Tax (CIT). However, the deduction should be limited to 50% of mineral royalty. Alternatively, the government should temporarily allow a 100 percent deduction for six months only.

  2. We expect the Government to increase the allocation of resources to obtain geological information to attract investment and craft sound decisions.

  3. The government is expected to increase the capital allowances claimed by mining companies in respect of capital expenditure from 20% to 25%. This should be done to further provide fiscal relief.

  4. The government is expected to allocate resources to finance gold mining cooperatives. This should be done to improve the social welfare of communities hosting gold reserves but also to increase gold production which can be channeled to the Bank of Zambia to induce macroeconomic stability.

  5. The government is expected to revise the mining taxation regime for artisanal and small-scale mining. This should be done to induce the formalisation of mining groups and improve the social welfare of people involved in mining.

  6. To enhance tax administration, the government is expected to discard or undertake structural reformation of the VAT system applicable to mining. This tax system continues to be a serious revenue leakage for the government in the mining sector.

Suspicious US$462 million was transferred from Citi Bank to Stanbic Bank Zambia

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Suspicious US$462 million was transferred from Citi Bank to Stanbic Bank Zambia

This week the International Consortium of Investigative Journalists released what it termed the FinCEN Files, which is an investigation that reveals the role of global banks in industrial-scale money laundering and the bloodshed and suffering that flow in its wake. The transactions were flagged by financial institutions as suspicious to United States authorities. The transactions were dated from 2000 to 2017. Freelance journalist, Chamwe Kaira looks at what the files said about Zambia.

The ICIJ investigations show that a suspicious US$462 million was transferred from Citi Bank N.A in the United States to Stanbic Bank Zambia between 25 October 2013 and 22 August 2014. This was the biggest transaction recorded in Zambia under the suspicious files. Another transaction of US$6 million was transferred from Deutsche Bank AG to Standard Chartered Bank Zambia Limited between 6 December and 30 May 2012. It is not clear who sent the money from Citi Bank and Deutsche Bank AG to Zambia, who received it in Zambia and what it was used for. This information can only be revealed by the Bank of Zambia, Stanbic Bank and the Financial Intelligence Centre.

The same report show that US$11 million was transferred in what the report termed as suspicious transactions from Zambia to other countries during the period 2000 to 2017. Zambia recorded 159 suspicious transactions, according to data extracted from the FinCEN Files. The transactions were processed through US banks and were transferred between the US, Zambia and seven other countries.

The banks named in the report as having received or transferred suspicious transactions include Finance Bank of Zambia, First National Bank SAL based in Beirut and Standard Chartered.

According to the data, the US$11 million transferred from Zambia went to banks like First National Bank SAL , Société Générale de Banque au Liban, Bank of Beirut Arab, Commercial Bank of Dubai , Emirates, Nbd Bank PJSC, Hong Kong Shanghai, Bank Danamon Indonesia PT.

The data by FinCEN Files contains information on more than US$35 billion in transactions worldwide dating from 2000 to 2017 that were flagged by financial institutions as suspicious to United States authorities.

The data provides information about the US based “correspondent” banks that allow financial institutions in more than 150 countries and territories to process payments in US dollars.

The records include more than 2 100 suspicious activity reports filed by nearly 90 financial institutions to the United States’ Financial Crimes Enforcement Network, known as FinCEN. The documents were shared by BuzzFeed News with ICIJ and 108 media partners in 88 countries and include information on more than US$2 trillion in transactions dated from 1999-2017 that had been flagged by the banks as suspicious.

To extract as much information as possible from the narratives of the suspicious activity reports in FinCEN Files, ICIJ, BuzzFeed News and media partners collaborated to manually collate data on transactions and correspondent connections from each report. The team working on this data extraction involved more than 85 journalists in 30 countries, who collectively were able to record details on more than 200 000 transactions and more than 6 900 correspondent connections.

Zambia Police Spokesperson dismisses assertions that their officers did nothing to save UPND cadre’s Vehicle

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Zambia Police Spokesperson dismisses assertions that their officers did nothing to save UPND cadre’s Vehicle

The Zambia Police Service has said no police officers were in the vicinity when the ruling Patriotic Front cadres in Kasama damaged a United Party for National Development (UPND) vehicle at Shoprite during the Lukashya parliamentary by-election.

Police spokesperson Mrs. Esther Katongo dismissed assertions that Zambia Police officers stood by and did nothing when cadres destroyed a vehicle branded with UPND colors and messages.

“There were no police officers in the vicinity where the fracas happened except for an officer who was performing guard duties at a nearby Bank. The officer the women were referring to in the video was the one who was guarding the Bank and another vehicle which was passing by with only one officer who did not know what was happening at shoprite,” Mrs. Katongo stated.

Mrs. Katongo further said that the officer at the Bank could not leave because that was a sensitive vital institution but he communicated the information to command in the area and officers were dispatched to manage the situation, which led to the arrest of two suspects.

“As Police, we immediately communicated to the public through various media institutions what had transpired on the ground on a material day but surprisingly, some people have decided to move on with propaganda,” Mrs. Katongo said.

“It is disappointing that Dr. Nevers Mumba has also decided to throw his weight behind people peddling unverified information through social media without him seeking verification on what had transpired.”

PF wants to disrupt President Lungu’s Trip to Monze so they can arresst HH, Nalumango

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PF wants to disrupt President Lungu’s Trip to Monze so they can arresst HH, Nalumango

United Party for National Development (UPND) National Chairperson Mutale Nalumango has said that the party has unearthed a scheme in which the Patriotic Front (PF) wants to disrupt President Edgar Lungu’s trip to Southern Province and implicate Hakainde Hichilema.

Ms Nalumango said that the party is aware of a well-hatched scheme in which PF has lined up a number of its violent cadres to boo Mr. Lungu as he visits Southern Province tomorrow.

During a press briefing in Lusaka yesterday, Ms. Nalumango charged that notorious PF cadres, Eddy Gowa aka ‘America 1’, deputy PF national mobilization chairperson Bizwell Mutale and former Siavonga District Commissioner (DC) Brave Mweetwa are the people who have been tasked with executing the dirty work.

“We have concerns from the information that has come through from their (PF) camp, particularly from Chikuni radio where PF officials and cadres went and issued a warning that the so-called booing that happened in Monze would not be allowed this time around. They issued a stern warning to the people of Monze. We have names that have come to our attention like Bizwell Mutale, who is probably meeting some of the chiefs in Southern Province.”

“We are aware that former Siavonga DC Brave Mweetwa and a guy of Mozambiquan origin called Eddie Gowa commonly known as ‘America 1’ are involved. These are some of the people hired to cause confusion and blame it on HH and the UPND,” she charged.

Ms. Nalumango said President Lungu’s desperate attempts to ensure that Mr Hichilema is not on the 2021 ballot has led to him devising numerous schemes with the intent of imprisoning him.

“We are aware that President Lungu wants to arrest president Hichilema because he doesn’t want to see his name on the ballot paper come 2021. Lungu also intends to buy some councilors to create by-elections.

“We aware that PF thugs will be present in Monze and Maala along the route of President Lungu and his entourage for them to disrupt his tour. They want to do this they can blame it on HH and UPND. ” she said.

She said Mutale has been going around Southern Province meeting chiefs in readiness for Mr Lungu’s visit today.

“President Lungu is scheduled to visit Chief Chona, Chief Kufwenuka and Chief Mwanza. He may proceed to Maala as well,” she said.

She advised all Party members in Southern Province to stay away from any activities that President Lungu will undertake in the province, today.

“Let our people completely stay away so that we have no room for the PF to create a situation in which some of our members will be used to testify against President Hichilema in order to arrest him. We want the nation to know what is going on,” she said.

She has since called on the PF to immediately abort the evil and criminal scheme.

“We would like to warn the PF that such as a scheme is evil and criminal and should not be allowed at all,” she said.

Meanwhile, UPND President Hakainde Hichilema has urged all UPND members to avoid provocation and peacefully go about your business because evil minds are scheming to stage an incident that leads to his arrest.

Mr Hichilema urged members to be strong be strong and have faith that these dark days will soon be behind as we shall usher in an era of peace, democracy and the rule of law.

Government warns against succession wrangles as Chief Mukonchi is buried

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Government warns against succession wrangles as Chief Mukonchi is buried

Chiefs and Traditional Affairs Minister, Lawrence Sichalwe has advised the people of the Swaka chiefdom to remain calm following the death of Chief Mukonchi. Mr Sichalwe said the government will not take pleasure in succession wrangles in the chiefdom as they await the chief’s successor.

He said this is because wrangles do not only lead to insecurity but also derail development in the chiefdom.

“I wish to advise people of the Swaka chiefdom to remain calm as you go through this period of awaiting the late chief’s successor. Government will not take pleasure in succession wrangles not only here but anywhere within Zambia as such bring insecurity and only derail development in the chiefdom,” he said.

Mr Sichalwe has since directed that the instruments of power be deposited to government until such a time when the successor is going to be found.

Mr Sichalwe further directed that the instruments of power for the late chief Ngabwe that were kept at the late chief’s chiefdom be handed over to the government.

Earlier, Mr Sichalwe extolled the late chief for his passion in developing the chiefdom. He said the late chief played a pivotal role in attaining the Open Defecation Free (ODF) status in the chiefdom, adding that the chief was also vigilant in combating Gender Based Violence.

The Traditional Affairs Minister further observed that the late chief was not only responsive but also supportive of government developmental programmes.

Mr Sichalwe also extolled the late chief for promoting traditional values of the Swaka people with their traditional ceremony.

Central Province Minister, Sydney Mushanga also described the late chief as being development oriented and always putting development ahead of himself. Mr Mushanga further described the late chief as humble and one who discouraged violence.

He said the successor should emulate the good heart of the late chief and embrace everyone in the chiefdom. Mr Mushanga further emphasised that the family lineage should be followed in looking for a successor.

“It’s God who gives positions and engaging in wrangles will only derail development,” he said.

Earlier, Body and Blood of Christ Priest, Alex Chanda described the late chief as a man who put God first in his life. Chief Mukonchi who died last Saturday is survived by a wife, seven children and two grandchildren and has since been put to rest in his chiefdom.

Encroachment in Namwala and Mumbwa Game Reserves Areas Worrying-Itezhi Tezhi District Commissioner

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Encroachment in Namwala and Mumbwa Game Reserves Areas Worrying-Itezhi Tezhi District Commissioner

Government has bemoaned increased encroachment in Namwala and Mumbwa Game Management Areas (GMAs).

Itezhi Tezhi District Commissioner, Isaac Nabuzoka said Namwala and Mumbwa GMAs have been seriously encroached for human settlement and faming activities thereby threatening wildlife.

Mr Nabuzoka said this when Ministry of Tourism and Arts (MOTA) Permanent Secretary, Auxillia Ponga paid a courtesy call on him.

“Issues of encroachment in Namwala and Mumbwa Game Management Areas are very serious. What is the way forward? The GMAs are heavily encroached and nothing really is happening to address or normalize the situation” Mr Nabuzoka said.

Mr Nabuzoka also said that Lake Itezhi Tezhi was an important national fishery and economic engine of the district but fish population has declined on part of the lake outside the park.

He said Lake Itezhi Tezhi has a lot of stakeholders and requires careful management to ensure the lake and its aquatic life forms are managed sustainably without injuring other stakeholders.

Mr Nabuzoka noted that there were a number of challenges that the district was facing such as low staffing levels in government departments manning the lake and the Kafue National Park, fisheries and Marine Police.

“There are also gaps in our laws to effectively combat or manage some illegal activities in fishing” Mr Nabuzoka said.

Mr Nabuzoka also acknowledged stakeholders’ support from Game Rangers International (GRI) World Wide Fund for Nature (WWF) for the contributions they are making towards integrated conservation and wildlife management of the Kafue National Park.

The DC has since appealed for the PS’s office to help the district access the money under the COVID-19 for livelihood projects, water harnessing and boreholes.

Meanwhile, Ministry of Tourism and Arts Permanent Secretary Dr Auxillia Ponga said fighting encroachment in GMAs needs an integrated conservation and wildlife management approach.

She said Ministry alone may not resolve challenges that the district is faced with but needs concerted efforts from all stakeholders.

“We need to come together as stakeholders from ministry of Lands and Natural Resources, local authority, Police, Fisheries and others so that tourism can strive in Itezhi Tezhi” Dr Ponga said.

She said the role of government was to provide a conducive environment by ensuring quality infrastructure such as roads and law enforcement.

She further said tourism was an alternative to mining and one of the ways to diversify the economy.

Meanwhile WWF Country Director, Nachilala Nkombo said Itezhi Tezhi was richly endowed with natural resources that if harnessed can make tourism strive.

She reiterated that concerted efforts among stakeholders are needed to deal with the issue of encroachment in the GMAs and people’s livelihood.

Government gets support from EAZ on Suspending Debt Payment

Chief Editor
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Government gets support from EAZ on Suspending Debt Payment

The Economics Association of Zambia has said that it is encouraged that the Zambian government has joined other countries in implementing measures aimed at cushioning the negative economic effects of covid 19 among which is debt management.

In a statement released to the media following news that the Zambian Government is seeking the suspension of debt repayment for 6 months, EAZ said that the current solicitation to suspend coupon payments is part of the debt management strategy Zambia has embarked on with the help of Lazard and should not be treated as a default.

The Association further said that the public solicitation is part of the procedure any bond issuer has to go through in such circumstances, adding that should the bondholders refuse to suspend coupon payments, the Zambian government will still trade business as usual.

Below is the full statement

GRZ consent Solicitation to suspend coupon payments due 14th October 2020

The Economics Association of Zambia is encouraged that the Zambian government has joined other countries in implementing measures aimed at cushioning the negative economic effects of covid 19 among which is debt management.

Earlier this year when our analysis had forecasted stress for economies around the world especially for emerging markets like ours, we called upon the Zambian government to immediately engage its global partners in the aim of suspending certain multilateral debt payments and negotiating for easing down conditions especially on commercial debt as practiced by similar countries.

As an Association, we were delighted to see the Zambian government appoint Lazard Freres as financial advisor to help restructure its external debt as the practice is around the world for countries with bonds actively trading on the international capital markets.
The move was positively received by the market.

We would like to assure the markets and citizens that the current solicitation to suspend coupon payments is part of the debt management strategy Zambia has embarked on with the help of Lazard and should not be treated as a default. The public solicitation is part of the procedure any bond issuer has to go through in such circumstances. Should the bond holders refuse to suspend coupon payments, the Zambian government will still trade business as usual.

We would also like to advise the public that in August 2020, the Zambian government applied for the G20 debt service suspension initiative and is also requesting for similar debt service suspension from its commercial creditors.

Zambia is not the only emerging market undergoing the same procedure.

We would like to advise the Zambian government to continue being transparent about the debt situation and remedies that are being implemented to ensure that debt remains sustainable despite the harsh global economic environment.

We also call upon the general public to take keen interest in what is happening around debt management in Zambia but not to be speculative as issues to do with commercial debt or bond markets are highly sensitive to market information.

As an Association, we shall engage the Minister of Finance in a public discussion to discuss among other things the 2021 budget and debt management.
For any queries, contact the EAZ secretariat in Lusaka.

Issued by:
Lubinda Haabazoka, PhD
EAZ President, on behalf of the Board
Lusaka, Zambia

Edith Nawakwi’s Lawyer Responds to HH, claims lacks sufficient particulars

Chief Editor
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Edith Nawakwi’s Lawyer Responds to HH, claims lacks sufficient particulars

FDD President Edith Nawakwi has responded to her UPND counterpart Hakainde Hichilema’s lawsuit in the High Court by asking for better particulars.
Mr Hichilema is demanding $ 3 million from Ms Nawakwi for alleged defamation.

But in an affidavit in support of summons for an order for further and better particulars, Ms. Nawakwi through her lawyer Chifumu Banda, says the statement of claim by Mr Hichilema lacks sufficient particulars to enable the defendant to settle a meaningful defence.

Mr. Banda says a letter has since been written to the plaintiff’s advocates requesting for further and better particulars.

In this matter, Mr. Hichilema sued Ms. Nawakwi for defamation, demanding US$3 million as damages for alleging that he illegally benefited from the privatization exercise by dubiously acquiring a house belonging to Lima Bank

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