Former breakfast radio presenters Hope Chisala and Chinyota Msimuko are hoping to recreate the magic that turned them into houshold names.
COVID-19: Children from poorest households across the globe have suffered greatest loss of family income, missed out most on education and faced the highest risk of violence at home
Save the Children conducts largest global survey of its kind among some 25,000 children and adults on the impact of the pandemic
The COVID-19 pandemic has had a devastating impact on the education of children from poorer backgrounds and is widening the gap between rich and poor and boys and girls, a new global survey by Save the Children revealed today. In the six months since the pandemic was announced, the most vulnerable children have disproportionately missed out on access to education, healthcare, food, and suffered the greatest protection risks.
The global survey revealed:
• Two thirds of the children had no contact with teachers at all, during lockdown; eight in ten children believed they had learned little or nothing since schools closed.
• 93% of households that lost over half of their income due to the pandemic reported difficulties in accessing health services.
• Violence at home doubled when schools were closed: when schools were closed, the reported rate was 17% compared to 8% when schools were open and the child was able to attend in person.
• 63% of girls are more often tasked to do more chores around the house, compared to 43% of boys.
• Investment in education, health and nutrition, child protection services, mental health services and safety nets are urgently needed.
The findings were launched today in the report Protect A Generation, based on the largest ever global survey of its kind since the COVID-19 pandemic was declared six months ago. Some 25,000 children and their caregivers shared their experiences, fears and hopes during this unprecedented global crisis. The COVID-19 pandemic has in fact widened inequalities along wealth and gender lines, the survey found – with poorer households more likely to suffer income losses (82%) than those not classified as poor (70%). When it comes to health, the survey showed the same concerning divide along wealth lines. Nine in ten households that lost over half of their income due to the pandemic reported difficulties in accessing health services. 45% of respondents from poor households reported having trouble paying for medical supplies during the pandemic. Less than 1% of the poorer children interviewed had access to internet for distance learning. Among households that classified themselves as non-poor, it was 19%. Around 37% of poorer families reported difficulties paying for learning materials, compared to 26% of families who classified themselves as non-poor. Two thirds of the children said they had no contact with teachers at all during lockdown, increasing to eight in ten in East and Southern Africa.
Priscovia, 17, from Zambia said:
“We ask for governments to spend more money to make sure that we can continue learning while at home by providing radios, TVs and internet learning. They must make sure that children in rural areas and from poor families also get to learn. We want to see mobile libraries passing in our communities delivering books for us to learn.”
Children who fall behind in their education run a greater risk of dropping out completely and falling victim to child labour, child marriage and other forms of exploitation. Save the Children estimates that this pandemic has caused the largest education emergency in history, with some 9.7 million children not returning to school this year. Girls are more heavily impacted than boys, by the COVID-19 pandemic. 63% of the girls said they are doing more chores around the house and more than half (52%) reported they were spending more time caring for siblings. Among boys, that was 43% and 42% respectively. 20% of girls reported that they have too many chores to do to be able to learn, compared to 10% of boys.
Dayana is a 15-year-old girl who lives in the Sonsonate region in El Salvador. She told Save the Children:
“My mum worked in a house taking care of babies. Because of the coronavirus she could no longer go to work. We always did the cleaning but now we have to do it more often, to avoid getting sick. People are sad because the coronavirus has changed their lives and they can no longer do what they did before.”
• The Save the Children survey also found that: More than 8 in 10 (83%) of children reported an increase in negative feelings;
• Almost two thirds of the households (62%) found it difficult to provide their families with varied, nutritious food during the pandemic;
• 19% of households in which children reported violence had lost any of their income due to COVID-19, compared to 5% when there had been no income loss.
Inger Ashing, CEO of Save the Children, said: “COVID-19, has widened existing inequities. The poor became poorer, with a devastating impact on children’s access to healthcare, food, education and protection.”
“To protect an entire generation of children from losing out on a healthy and stable future, the world needs to urgently step up with debt relief for low-income countries and fragile states, so they can invest in the lives of their children. The needs of children and their opinions need to be at the centre of any plans to build back what the world has lost over the past months, to ensure that they will not pay the heaviest price.”
Mrs Jo Musonda, Country Director of Save the Children in Zambia said: “Currently Government is spending more money on debt repayments than on Health, Education and Child Protection services combined. We are calling on the International community to provide debt relief so that governments can increase spending on these essential services and to provide safety nets for the poorest and most vulnerable households through social cash transfers and other essential social protection services to Protect a Generation.”
Save the Children urges governments to make sure children out of school have access to quality distance learning materials, that catch up classes are offered to children who have fallen behind and that all children have equal access to learning after schools reopen.
To prevent shocks from future pandemics, governments need to build social safety nets and strong health and nutrition systems, especially for the most vulnerable and marginalised households. Resources are also urgently needed for positive parenting programmes, to ensure children have access to inclusive protection services during and after lockdowns where they can be supported if they’ve fallen victim to abuse, violence of or exploitation, and to support children’s mental health and psychosocial wellbeing.
Jo Musonda
Zambia Country Director
Save the Children
HH playing politics over Face Masks, we have the money to pay suppliers-Bowman
Lusaka Province Minister, Bowman Lusambo has accused UPND leader Hakainde Hichilema of trying to gain political capital over delays in paying suppliers of Face Masks.
Some suppliers of Face Masks have complained over delays by the government on paying them and Mr Hichilema has since supported their protest against the government.
But Mr. Lusambo said the Lusaka Provincial Administration has secured K4.8 million required to pay all those who supplied to Face Masks in Lusaka.
He said Face Mask suppliers that were engaged by the government through the Lusaka province administration will start receiving their money next week.
Mr. Lusambo said funds to the tune of K4.8 million is ready for disbursement, once the paperwork is concluded.
Mr. Lusambo has expressed displeasure that some suppliers have taken to social media to complain and seek sympathy from the opposition when the matter is receiving the much-needed attention from his office.
He said Mr Hichilema is being hypocritical by attempting to support the payment of Face Mask suppliers when he has failed to account for the proceeds of privatization which he was part of.
Lets talk music : How to make money from your music with Mvesesani
Nalukui a representative of Mvesesani, Zambia’s premier music platform for musicians to sell their music to national and international audiences!! Learn how to get more out of being on the platform and more!
Investment Analysis of The Mopani Share Offer: Deal Or No Deal – Let’s Do The Math
By: Munyumba Mutwale
‘If you buy things you don’t need. You may find yourself selling things that you do need’
Warren Buffet
Two weeks ago following the ongoing battle of whether Mopani should go on care and maintenance or whether it should be forced to continue operations, News hit the market that Glencore will likely sell its entire 73.1% stake in Zambia’s Mopani Copper Mines to the government’s mining investment arm ZCCM-IH. So, the debate has now circled the question, Is this a good move?
Having seen how this matter has been debated and potentially weaponized in the public square, I am going to attempt to do something different here with Mopani, I am going to remove politics from this and handle this purely as an investment analysis and just assess the viability of the business case of Mopani Copper Mine. This article will focus on answering the question, ‘Is Mopani Copper Mines worth buying?’
The tendency for all investment bankers and financial advisors is that all deals are good deals because they are just generally there for the transaction fees and to get their commission. However, I am going to look at this after the transaction, a sort of life after the wedding analysis.
THE FINANCIAL ANALYSIS OF MOPANI
Let’s start by assessing the finances and operations of Mopani from 2014 to date.
|
2014 |
2015 |
2016 |
2017 |
2018 |
|
|
LME 12-Mo Copper Price ($) |
6,771 |
5,549 |
4,937 |
6,314 |
6,482 |
|
Total Copper [metric tonnes] |
185 |
184 |
110 |
99 |
120 |
|
Own Copper [metric tonnes] |
110 |
92 |
41 |
42 |
57 |
|
Revenue [$ million] |
1,337 |
1,121 |
584 |
353 |
842 |
|
Profit / Loss [$ million] |
(23) |
(285) |
(177) |
(290) |
(722) |
Financial information derives from Mopani Copper Mines Excerpts 2014 – 2018
FINANCIAL AND OPERATIONAL HIGHLIGHTS
- Output has been a major problem of Mopani from 2014 to 2019. Total output has declined from 185 thousand metric tonnes, in 2014, to 120 thousand metric tonnes in 2018. Worse off, preliminary reports of 2019 show that only 51 Thousand metric tonnes of output were produced, this is inclusive of purchases of copper from third parties, which would have an approximate market value of $310 million.
- The mine has been plagued with a series of shutdowns due to maintenance problems with the smelter. Partial suspension of operations and reduced capacity of the smelter occurred in September 2015, and in 2017 there was another 45-day shutdown of the Mine, again due to the smelter.
- Due to a combination of lower production and downward trending copper prices revenue has been declining from $1.337 Billion, in 2014 to $842 million in 2018.
- With debt levels rising due to shareholder loans, now sitting at $3.2 Billion in 2018, putting the total net liabilities at $2.562 billion above assets, and thus financing costs have risen. Added to this total costs have risen from $1.36 Billion in 2014 to 1.56 Billion in 2018. In terms of average costs, the average cost of a Metric tonne has almost effectively doubled, moving from 7,351, in 2014, to 13,000, in 2018. With the exclusion of 2016, which was still a loss-making year of $177 million, Mopani has been registering growing losses moving net losses from $23 million in 2014, to a record loss of $722 million in 2018.
- The approximately $1.1 Billion of capital expenditure, between 2014 and 2019, aimed at the 1280 meter Synclinorium Shaft at Nkana Project, as well as the Mindola Deeps and Mufulira Deeps seem to have not borne fruit. These projects were not only conducted to extend the life span of the mining operations by another 20 to 25 years, which they probably did but were mainly supposed to reduce the operational costs of the mine. However, this capital expenditure has led to such high financing costs that the operational cost reductions and even a rising copper price has been wiped out and losses have increased faster. Added to this the projects still require more financing to get them to an optimal level.
- All this has left the Mine with a 5 year low of $65 million in working capital.
Unfortunately, nothing about these financial statements says the company is in a healthy, let alone redeemable state. Even with Glencore writing down the value of Mopani to $700 million from its original valuation of $1.4 Billion, Mopani still does not seem a good investment because it doesn’t seem that any investment in the firm is recoverable. Even in 2014, with 180 Metric Tonnes of copper output and a copper price of $6,770 per metric tonne, the company was still loss-making, and through the analysis showed that Mopani needed a copper price of $7,350 to just break even. So optimally in 2014 Mopani needed a combination of a minimum copper price of $7,500 and the same 185,000 metric tonnes of output from the mine, to have sustainable profitability.
However, with the significantly higher levels of debt on the books, the same combination of a copper price of $7,500 and 185,000 metric tonnes of output would have the mine operating at a loss of $172 million. Even at optimal pricing and optimal production, the investor and new owner would need to have $172 million to finance the net losses even after acquiring Glencore’s 71% for $500 million. The mine needs a price of $8,500 just to break even while making sure the smelter is fully functional and output remains above 185,000 metric tonnes. Both of these occurrences are not only highly unlikely to occur simultaneously, but even on the off chance they do occur, it’s highly unlikely to sustain such a unicorn set of conditions.
Now, added to this, Assuming 50% of all profits are distributed as dividends and the copper price of $9,000 stays constant indefinitely, it would take the investor at least 13 years to recover the nominal sum of $500 million. This is only possible if the copper price stays above $9,000 the whole time, and any time it drops below $8,500, it will require loss financing which will undo any funds recovered, creating a one step forward 2 steps back situation.
THE COPPER PRICE OUTLOOK
Now let us turn our attention to the outlook for the copper price over the next 10 to 20 years. What are the factors that led to the last copper price rally and can they be sustained for the period of 10 to 20 years this time?
The key drivers of the copper price currently are trends in building and construction, infrastructure (especially in China), electrical materials, consumer electronics, electrical devices, electrical equipment and transportation equipment. The main things that led to a copper price rally in the years 1999 to 2012 were the following;
- US HOUSING MARKET BOOM: Between the years of 1994 and 2008, mainly driven by mortgage industry deregulation, there was a surge in homeownership levels in America that moved homeownership levels from 63% to 69%, effectively creating 20 million net new homeowners and creating a big housing construction boom. Good news for Zambia is that since 2017, another even bigger housing market surge in the United States is currently underway and is setting up to be the biggest of all time.
- CHINESE CONSTRUCTION BOOM: The 1990s to 2000s were a strong session of Chinese construction which also led to growth in the construction sector in China. Though there was disruption with the financial crisis of 2008, the Chinese Government stimulus came and pushed Chinese construction through the final stages of the Boom. Fixed Asset Investment also picked up during this period. Right now due to PBOC Stimulus, construction and infrastructure spending and activity is at another peak and thus triggering a rise in Copper demand.
- CHINESE INFRASTRUCTURE SPENDING: From 2008 – 2011 the Chinese government was in the middle of conducting a major infrastructure stimulus plan of $500 billion. This time Beijing has triggered a $1 trillion stimulus plan which has been the key driver behind the copper price rally of H2 2020.
- MOBILE PHONE MARKET BOOM: Bearing in mind that copper plays a pivotal part in mobile phone circuitry and the wiring of mobile technology, what is probably the single most underappreciated part of the 1999 to 2012 copper price rally, was the impact of the revolutionary rise of the mobile phone and its supporting technology. Between 2000 and 2010, driven mainly by Asia, mobile phone coverage moved from 12% to 76% of the world’s population. Going back further in 1990 only 0.2% of the world’s population had mobile phones. This means that by 2010, the mobile phone industry had expanded 500% since the year 2000, and 37000% since the year 1990. The decade of 2000 to 2010 posted the single largest growth in Mobile phone users as it translated into 4.5 billion new mobile subscriptions thus leading to a booming consumer electronics industry and therefore rising copper demand. Since 2010 the mobile phone market has slowed down as mobile subscriptions grew by 2 billion in the decade of 2010 to 2020, which is only 50% of the previous decade which saw 4.5 billion new mobile subscriptions added. Now in 2020, having reached a point of market saturation in the mobile phone and consumer mobile technology markets, we are not likely to see mobile phone sales growth that will contribute to a rise in copper demand like it did in the 2000 to 2010 period. This can be seen in the fact that mobile sales growth has slowed down for companies like Apple and Samsung.
- SHARP RISE IN ELECTRIFICATION: Led mainly by Indian Electrification with support from Latin America and China, the period of 2000 to 2010 saw a steep rise of 10% Global Access to electricity and thus improved demand for copper wiring for electrification. However, the closer the world moves to total electrification and with only Africa remaining below the 50% electrification mark, there is not much room for growth and thus the copper demand outlook from this sector is not great. There is one trend rising in renewable and green electricity wiring driven by the Global Decarbonisation movement which is being financed by the Responsible Investment movement.
With those major trends showing that copper demand will mainly be driven by housing and construction, in general, rather than a combination of electrification, consumer electronics and Housing and Construction, this means that the copper rally this time will probably be a bit more tempered, and struggle to pass and hold the $9000 per metric tonne mark as it did last time, though it stands a chance to momentarily show parallels. In the Long Run, namely over the next 10 years, the World Bank and IMF do not see the copper price going above the $7,000 threshold. However, this analysis did not take into consideration, the Coronavirus impact on London Metals Exchange Warehouse Supply levels, which have been severely drained, and the Beijing Infrastructure stimulus plan of $1 Trillion. There is potential for the Copper price to breach the $8,500 mark, but this can only hold for a period of 3 to 5 years at best before returning to the present $7,000 peak price.
The only factor that may help with the copper price is the TRUMP FACTOR. President Trump has stated his intentions to use the current low-interest lending regime to conduct a $2.3 trillion mega infrastructure revitalisation plan. However, looking at the political environment and the ambitions of the Democrat party to rather enact the Green New Deal and Green Infrastructure [which ironically also would increase copper demand], there has been no success on such talks and persistent deadlock has been the outcome. Therefore, with a Trump presidential re-election most likely, it appears the only chances of that happening would be a Republican victory of the house of representatives and the senate to push through such a bill. That level of stimulus could indeed take the copper price around the $9,000 per metric tonne sustainability level for at least 10 years. However, the likelihood of a Republican Clean sweep is rather uncertain..
MY INITIAL ASSESSMENT
Given the state of the financial health of the company and the high unlikelihood that the copper price could reach and sustain a price of $9,000 per tonne for 10 to 20 years, acquiring Mopani would be a highly risky move because there is very little upside and major downside to this venture. Even if Mopani was done through a leveraged buyout, this still would be highly unlikely to be successful given the leveraged position of the company and its impact on the unit cost of production. Additionally, we have been running on the assumption that Mopani would be able to get back to the 185,000 metric tonne total output level which itself is highly unlikely, given the persistent smelter faults.
The Major problem is that the investor will find itself needing to constantly inject at least $60 million to $200 million annually in relief financing just to keep Mopani afloat, even after paying $500 million to purchase the asset. Some may argue that Mopani is an important source of Forex for Zambia, which historically has been true, but with $3.5 Billion, in shareholder loans (liabilities owed to a foreign entity), sitting on its books, any Forex that comes in will be channelled out to repaying that loan, thus nullifying the forex value debate.
With all of that in mind, not only would I recommend not investing in Mopani, I would even go as far as saying we should consider divesting from the entity altogether and starting the process of liquidating the mine and selling it for parts to liquidate all debts and payables. In this regard, all owning parties should just accept their losses, and move on before the mine calls on and drains more resources. This is the investment analysis conclusion, however, my recommendations are a little bit different and cover a different perspective.
MY RECOMMENDATION
In the spirit of being open-minded, and also just never giving up an opportunity to quote Morpheus from the matrix, I am going to give Zambia 2 recommendations for 2 different scenarios. For this exercise, we shall call them the Red Pill and the Blue Pill recommendations.
Now if Zambia chooses the Blue pill, we can simply go with the vanilla recommendation which is the investment recommendation given above of divesting and liquidating. If we intend to take over Mopani to continue business as usual, my suggestion is that we go with the above-mentioned investment recommendation of liquidation and divestment. Mopani should be stripped and sold for its parts to liquidate debt positions. However As a nation, we should be concerned for the 5,000 to 10,000 employees at Mopani, and thus we should consider guaranteeing their income, for a period of up to 2 years, to ensure we do not see the collapse of towns like Mufulira. In a rudimentary estimation, it would cost the nation approximately $100 million to conduct such an undertaking, drastically less than purchasing the mine and still incurring annual expenses of operating it at a loss.
Now, should Zambia be willing to dream, and muster up the courage to take advantage of an ailing mine and grab a hold of a once in a lifetime opportunity to Transform the nation, then take the Red Pill, and let me take you down the rabbit hole and show you what a new futuristic Zambia can look like. This is a total transformation of the business model that seeks to turn Mufulira into something I would like to call THE COPPER ELECTRIC CITY.
Now Close your eyes, and Imagine with me, a business to business COPPER BASED ELECTRIC INNOVATION HUB, made up of small locally owned innovation-based businesses, who produce all futuristic needs of copper-derivative products based on the trends of where copper demand will be in 10 to 20 years from now, and taking advantage of a 25-year extension from the Synclinorium Shaft Investment. Imagine, if we took all the combined skills of every engineer, physicist, roadside phone repairman and tradesman, and put them in a city where they manipulate and create with copper meeting the copper-based needs of 2030. That city can be Mufulira if we want it to be. This Idea would be based on looking into the future of the world and taking advantage of some major emerging trends. It would require that Zambia dispenses with the idea of trying to catch up with the world today and focuses itself on trying to position itself now, to catch the trends of tomorrow, because catching up always keeps you behind, while catching tomorrows trends puts you ahead, and growth, is reserved for those willing to get ahead. This is similar to how China positioned Shenzhen to take advantage of the mobile phone industrial revolution in the 90s, and become the centre for phone parts needed around the world. Now because of that foresight in Chinese Leadership, Shenzhen today is known as the city of the Future. Now, Imagine having the foresight to do that with Mufulira.
We need to start by asking the question, as we are in 2020, what trends will drive the Copper Markets in 2030 and prepare ourselves to not only be ready but to be a leader in that before it comes. Here are some emerging trends we need to look out for
- THE RISE OF THE ELECTRIC VEHICLE: According to Bloomberg predictions, electric car sales will probably make up 50% of the 70 million new automobiles sold annually around the world by 2030 and possibly even 85% by 2040. However, right now, the 2 biggest problems are the low-cost manufacturing of the Copper-based Electric Power Train (the engine of an electric car that consists of a lot of copper) and the Electric Car Battery System. All of the world’s electric Vehicle manufacturers are struggling to solve this problem as they try to mainstream affordable electric cars, and Zambia could be ground zero for creating a town of designers and innovators who create Copper-based solutions for these problems and win contracts with said Electric vehicle Manufacturers. Instead of just watching Munali Nickel mine go into liquidation it too can play a role, as Electric Vehicle Batteries have strong components of Nickel along with 3 times more copper wiring than their gasoline car predecessors. Using the Mopani mines in an open-source fashion and keeping its output strictly as a feeder into the Copper Electric City, we can finally start to look at value-adding our copper to meet the coming needs of the world tomorrow, especially with the low-cost and highly unemployed willing labour that Zambia has available and ready to work.
- GREEN ELECTRICITY AND THE RISE OF ENVIRONMENTAL-SOCIAL-GOVERNANCE EXCHANGE TRADED FUNDS (ESG ETFs): There has been an astronomical rise, led by Europe, of investment in funds that support responsible investing and green initiatives. During 2020, while the world of Exchange Traded Funds (ETFs) were losing $345 billion, in the form of outflows, ESG ETFs have taken in $45 billion, in fund inflows, thus showing that moral and socially driven investing has become a strong trend that is economically resilient. Black Rock predicts that by 2030 there will be $1.2 trillion, in assets under management, in ESG ETFs globally. Zambia must position itself with THE COPPER ELECTRIC CITY OF Mufulira to convert copper into parts for Solar Panels and Wind Farm Equipment. On a side note, the rise of solar panel production in Zambia would give full justification to the revival of Kapiri Glass. This idea would give Zambia Access to the rise in ESG Funds and a strong FDI wave along with a new higher income set of exports. ESG Funds are growing fast and actively seeking global initiatives that position themselves to be part of a Global Supply chain or provide initiatives and innovations in green technology. This is in support of the Decarbonization movement that I mentioned earlier but with much more favourable, or simply put cheaper investment terms.
Just these two trends and the Vision of turning Mufulira into THE COPPER ELECTRIC CITY would give Zambia a new diverse export channel for its copper with higher value, and at the same time would attract FDI from ESG Funds that are growing at the rate of knots in comparison to any other kind of funds. ESG Funds are less interested in above-average returns more than they are in investing for making a positive and morally correct impact on the future. Then, if you are working on a Green Tech city like Mufulira, it also gives Zambia an investment case with Global ESG Funds for the refinancing of our Sovereign debt, at lower and more sustainable interest rates.
Now, This isn’t philanthropy, we still need to get a good deal from Glencore because the state Mopani is in, is still a bit of a death trap. Both sides must accept a compromise, Glencore needs a way to stop haemorrhaging money and we need a source of copper to feed the copper electric city vision. So here is a deal I would propose. The first step should be to get the equity stake through a 10-year leveraged buyout, similar to how a lot of our mines were bought in the 90s, simply turning the tables, because they too have a toxic asset on their hands. Step 2 should be to trade in the $3.5 billion in shareholder loans, in exchange for an agreed 25-year mineral royalty (the extended life that the Glencore investments have given to the mine) on the mine output during the period. This is a clean exit for them with a path to getting some money out and gets rid of that $3.5 billion in shareholder loans that have added unmanageable financing costs to the operations of Mopani. After this, ZCCM-IH would have to go through Mopani’s costs structure with a fine-tooth comb and clear out any operational excesses, such as having expatriates or international services where local labour and service providers would do, to cut the cost structure down to the bare minimum.
This would finally be a solution that would make Zambia a part of the future rather than being part of the herd, always lagging, trying to catch up with it, and always seeming like every step of progress feels like it’s late to the party. This would be an opportunity to make Zambia the empowered authors of our future rather than the dependent recipients of crumbs from a predesigned global system.
This is now a case of Zambia catching futuristic trends instead of trying to catch up with today, which will always be the past by the time you get there.
So to paraphrase Morpheus from the matrix, this is our last chance. After this, there is no turning back. We can take the blue pill, dissolve and divest and the story ends there. we continue in our comfortable reality of poverty waiting for the next rising star in the global economy to take pity on us and throw us a few bucks on their way up. which should hold us as we wait for a little bit as the next cycle comes. Or we can take the red pill and enter a world of imagination and innovation, and see where this journey can take us as we look at taking something ailing and dying and seeing if we can use it to create the COPPER ELECTRIC CITY of the Future. Remember, all I’m saying is that this is a chance to try something new, to actually look forward and live forward instead of living stuck in the mud with our heads down doing nothing but perpetually auditing our past, looking for mistakes whos discovery will yield nothing for our future and the for future generations to come.
The choice is ours and only ours to make.
The Authour is a Financial Economist with over ten years of experience in the Zambian Financial and Capital Markets in and with companies and institutions such as the Lusaka Securities Exchange, Securities and Exchange Commission, Aon Zambia and many other participants. He is also a freelance economic journalist from Lusaka who writes about currency, commodities, macroeconomic policy and markets from the Global and Domestic Perspectives. He can be found on Twitter at @MutwaleM.
Government dragged to court for failing to respect constitutional provisions on women, youth representation
The Zambian Government has told the public that Bill 10 will increase the representation of women, youth, and disabled persons in government.
Today Chapter One Foundation together with NGOCC and Young Women in Action filed in a Petition to challenge the Government’s failure to implement existing constitutional provisions that will increase gender parity and the representation of youth and disabled people through ministerial appointments.
Below is our statement on the same:
JOINT PRESS STATEMENT BY THE NON-GOVERNMENTAL GENDER ORGANISATION COORDINATING COUNCIL (NGOCC), CHAPTER ONE FOUNDATION AND YOUNG WOMEN IN ACTION AT NGOCC SECRETARIAT, LUSAKA 10TH SEPTEMBER 2020
Leaders of various Civil Society Organisations Presents, Members of the Press, Distinguished Guests, Ladies and Gentlemen
We have called this Press Conference to announce an important milestone in our collective resolve and advocacy for a more inclusive Governance system of the country and indeed society. The importance of equity and equality in the democratic governance of the country cannot be overemphasized. Everyone has the right to take part in the government and public affairs of the country, to vote and to be elected. Beyond elective office, every citizen regardless of any other consideration has the right to participate in the governance at different levels.
However, over the years’ women, people with disabilities and indeed the youths have been systematically discriminated against participating in the governance of their country. This is despite the fact that both women and the youths constitute the majority of the country’s population.
It is against this background that we the aforementioned organisations have today, Thursday 10th September 2020, lodged a Petition in the Constitutional Court to among other seek the Court’s intervention in redressing the historical and structural discrimination of these marginalized groups.
Ladies and Gentlemen,
The Petition before the Constitutional Court is in accordance with Article 2 of the Republican Constitution which provides that “Every person has the right and duty to; (a) defend this Constitution; and (b) resist or prevent a person from overthrowing, suspending or illegally abrogating this Constitution.”
As you may be aware the constitution clearly provides for the need for the inclusion of all in the governance of our country. The constitution provides for the inclusion of women, youths and the disabled in all the governance spheres. However, the practice in the recent years since independence in 1964 has been such that the Executive specifically the successive and current Head of State have ignored these very important Constitutional provisions in their appointments and nomination. The Constitution in Article 173 (1) (j) and (K) which reads, in part:
“(1) The guiding values and principles of the public service include the following—
(j) adequate and equal opportunities for appointments, of members of both gender…;
(k) representation of persons with disabilities in the composition of the public service at all levels.”
Further, Article 259 (1) of the Constitution provides:
“Where a person is empowered to make a nomination or an appointment to a public office, that person shall ensure—
(b) that fifty percent of each gender is nominated or appointed from the total available positions, unless it is not practicable to do so; and (c)Equitable representation of the youth and persons with disabilities, where these qualify for nomination or appointment.”
Ladies and Gentlemen,
As evidenced in the appointment of Cabinet and the nominated Members of parliament, the Executive have continually ignored these provisions and thus continuing to exclude a critical part of the population from both participating and benefiting from the various development processes of the country.
As stated the organisations are therefore seeking specific orders from the Courts to ensure that the youths, women and indeed people with disabilities are included in the governance of the country.
Some of the prayers we seek are we seek include;
1. The Court to make a declaration that in nominating Members of Parliament and making the ministerial appointments relative to the current Provincial Ministers and the Cabinet, the President did not adopt a procedure which ensured:
(a) gender parity in the nomination and appointment of the Provincial and Cabinet Ministers contemplated, and in contravention of Article 259 (1) (b) of the Constitution; and
(b) equitable representation of youth and persons with disabilities in the nomination and appointment of Provincial and Cabinet Ministers as contemplated in, and in contravention of Article 259 (1) (c) of the Constitution.
2. The court make a declaration that the nomination of the Members of Parliament by the President in the fashion he did is unconstitutional.
3. The court make a declaration that the current composition of Cabinet and the Provincial Ministers is unconstitutional.
4. The Court to order for the remedying of the unconstitutional appointment within 90 days.
The full Petition as filed can be obtained from the Constitutional Court Registry.
Conclusion
In the last few months the proponents of Bill 10, specifically Government have been misleading citizens that the Bill will ensure the equitable representation of women, youths and disabled persons when in fact the same Government has failed to implement the current Constitutional provisions as provided in our laws as we are demonstrating in the Petition. It is therefore our fervent hope that the Constitutional Courts will help in redressing the long-standing injustice and exclusion of citizens from participating in the governance of the country.
We the undersigned;
CHAPTER ONE FOUNDATION LIMITED
THE NON-GOVERNMENTAL GENDER ORGANISATIONS’
COORDINATING COUNCIL FOR GENDER AND
DEVELOPMENT REGISTERED TRUSTEES
YOUNG WOMEN IN ACTION
Be careful when consuming Liqui Fruit Red Grape-CCPC
The Competition and Consumer Protection Commission (CCPC) has cautioned consumers in Zambia to be careful when consuming Liqui Fruit Red Grape products from South Africa.
This follows a cautionary notice from the COMESA Competition Commission (CCC) warning the general public against consuming Liqui Fruit Red Grape products that are alleged to contain small shards of glass.
In South Africa, Retailers have already removed stock of Liqui Fruit’s red grape juice from their shelves following glass particles scare.
Premier Foods issued a national recall of the Red Grape 330ml cans after the company received reports of small shards of glass in a single batch.
This warning comes after Pioneer Foods, the manufactures of Liqui Fruit Grape products ordered the recalling of the affected batch of 330 ml cans of Liqui Fruit Red Grape products from the market.
In its ongoing investigations, Pioneer Foods identified a single batch of Liqui Fruit Grape products with specified brands and codes, which include; Pioneer Foods Product code 27327, Outer Case Barcode 6001240225615, Shrink Pack Barcode 6001240225608, Single Unit Barcode 6001240225592, and best before dates of 1st and 2nd April 2021 respectively.
“In view of the foregoing, the Commission would like to urge consumers to exercise caution by ensuring that they look out for the affected Liqui Fruit Red Grape products and avoid consumption for the good of their health and safety,” the Commission said in a statement.
“Further, the Commission hereby directs all importers, distributors, traders, wholesalers, and retailers to remove and surrender to the nearest Public Health office of every Council all affected Liqui Fruit Red Grape Products with immediate effect.”
Government sets into Motion Plans to Implement the diaspora policy
Government has set into motion enhanced action on implementation of the diaspora policy in order to expand and realize the enormous potential that Zambians abroad have.
Foreign Affairs Permanent Secretary Ambassador Chalwe Lombe says the greater contribution of Zambians living in other countries can make a huge impact on Zambia’s development, hence the need to accelerate implementation.
Ambassador Lombe reiterated that government recognized the major socio-economic benefits that can be realized from the diaspora.
Ambassador Lombe said against a background of creating a conducive environment for Zambians living abroad, the government had targeted aggressive engagement of the Zambian diaspora to expand implementation of the policy. In that light, Six (6) out of the 13 major objectives of the policy which was launched in April 2019 were identified for urgent implementation. The six include enhancing diaspora remittances to Zambia, easing access to national documents, establishment of Diaspora Focal Point Desks, knowledge and skills transfer in the diaspora community, setting up of a comprehensive online portal and data base as a marketplace for the diaspora as well as establishment of dedicated communication tools through WhatsApp and email.
Focal Point desks to specifically deal with diaspora matters would be operationalized at the Ministry of Foreign Affairs and Home Affairs while all Zambian missions abroad would follow suit and have dedicated staff to diligently deal with diaspora matters.
The enhanced implementation of the policy is set to maximize the potential economic and social benefits from the diaspora.
Ambassador Lombe was speaking during a Diaspora Clinic with staff of Zambians abroad in the Americas on Wednesday during which he urged them to positively pursue engagement of all Zambians abroad.
“The Information portal is coming online soon; that is a market place where the diaspora can engage and even ask questions on all matters affecting them,” Ambassador Lombe said adding that Focal Point Desks would be launched over the coming weeks with dedicated WhatsApp numbers and email addresses for prompt engagement with the diaspora.
According to the United Nations 2030 Agenda for Sustainable Development (SDG), remittances sent by migrants to their families are fundamental for governments, international organizations and other partners in realizing their sustainable development objectives.
Zambia’s Ambassador to the United States Lazarous Kapambwe and staff at the Mission in Washington were joined in the meeting by Zambian missions in New York led by Zambia’s UN envoy Ambassador Ngosa Simbyakula, the Canadian High Commission Canada and Ambassador Alfreda Kansembe and the Mission in Brazil.
Falsified Drugs Story An Act of Sabotage, says YALI
The statement that the Government through the Ministry of Health is dispensing drugs that are substandard and falsified medical products that may harm patients and fail to treat diseases is an act of sabotage, says the Young African Leaders Initiative (YALI).
In a statement issued by YALI Legal and Governance Advisor, Isaac Mwanza said the statements attributed to suspended Pharmaceutical Association of Zambia President Jerome Kanyika is not only alarming but an act of sabotage calculated to send panic into the Zambian public who are consumers of medical products.
“Those careless remarks are also aimed at creating doubts among cooperating partners who are supporting the public health service delivery in Zambia,” said Mwanza
Mr Mwanza has advised responsible media houses to avoid the temptation of being accomplices in sending panic among patients especially that Mr. Kanyika himself acknowledged that no quality tests have been done to confirm that the drugs are substandard, falsified, or toxic.
“It is irresponsible to try and portray that President Lungu is leading a government that wants to poison its own citizens with expired drugs,” said Mr. Mwanza
He said his organization is not surprised with a sustained negative campaign against President Edgar Lungu’s administration, especially one targeted at the Ministry of Health, during the COVID-19 pandemic period when health professionals are doing their level best to deliver services.
“This sabotage is a continued narrative to discredit the award of a tender to Honey Bee Zambia which has been going on as if lawfully registered entities without limited liability cannot be awarded government contracts tender,” said Mwanza
Mr. Mwanza said there was nothing legally wrong with the tender to a registered entity such as Honey Bee Zambia and has since called on the Ministry of Health to become proactive in giving Zambian assurances of the safety of medical products and conduct tests whose results must be made public.
The Government will continue to strengthen its COVID-19 surveillance strategy at all points of entry
Health Minister Chitalu Chilufya has said that the government will continue to strengthen its Covid-19 surveillance strategy at all points of entry to stop the spread of the virus.
Dr. Chilufya said this today during the Covid-19 daily update at Kasumbalesa border in Chililabombwe district where he reported that the country has recorded 102 new cases out of 1,391 tests conducted.
Dr Chilufya said the new cases have been recorded across Nine districts among them Lusaka, Mpika, Kasama, Livingstone, Solwezi and Isoka.
The Minister said 49 patients are admitted in various Covid-19 isolation facilities, out of which 16 are on oxygen therapy and four are critical patients under ICU and two are on mechanical ventilators.
AND Dr Chilufya disclosed that a total of 60 patients have been discharged and that the country has not recorded any Covid-19 related death in the last 24 hours.
He said the cumulative number of cases now stands at 13, 214, out of one hundred and 27, 529 tests conducted so far.
Meanwhile, Copperbelt province Minister Japhen Mwakalombe informed the minister that the province has enhanced its surveillance strategy.
And Zambia National Public Health Institute Director Victor Mukonka said enhancing border surveillance is key to stopping the spread of Covid-19.
Zambian Opposition Leader Hakainde Hichilema Should be Left Alone
The never dying debate on privatization of national assets that took place decades ago in Zambia has resurfaced and has reached a very complicated level. Once a would be debate between the oppositions and the government, has shifted to the debate between the oppositions.
Edith Nawakwi, president of Forum for Democracy and Development (FDD) accuses the main opposition leader Hakainde Hichilema of being one of the key suspects of abuse of the privatization process. She claims that Hichilema failed to declare interest while presiding on the sale of public assets in which he had personal interest.
Hichilema denies the allegation. He claims he had no interest in any public asset prior to privatization. He accuses Nawakwi of defamation and has taken the case to court of law.
A lot of politicians in Zambia have become richer than our founding father KK through politics. Within few years they have become millionaires (in dollars)
Although it is widely known that the main agenda for PF government is to weaken the opposition, the government is busy trying to dissociate itself from the issue. As usual, they continue to contradict each other.
Recently, PF Media Director Sunday Chanda was quoted saying the government has absolutely nothing to do with the privatization issue. A contradiction to what Chief Government spokesperson Ms. Dora Siliya had said earlier.
Per Mis Siliya, the government is studying revelations made by Edith Nawakwi against HH. In other words, the government is trying to get to the bottom of the issue. Implying that the government is having some behind door conversations with Mis Nawakwi as it is the only way they can learn more about what she is alleging.
Mr. Chanda, PF government has a lot to do with this privatization issue. Deputy Secretary-General Hon Mumbi Phiri has just confirmed it. If only she can be allowed to explain in details what she means by saying Miss Nawakwi is a blessing to Zambia.
Wow, ‘chiwamila garu kuluma mbuzi!’ Defaming Hakainde Hichilema is a blessing to Zambia while questioning the wealth of government top officials is a crime!
A lot of politicians in Zambia have become richer than our founding father KK through politics. Within few years they have become millionaires (in dollars). Are they not the ones who should be investigated? When are they going to explain their financial miracles?
If the answer is never, Hakainde Hichilema should be left alone.
By Venus N Msyani
Concerned citizen.
ERB Keeps Fuel Price Unchanged for Now
The Energy Regulation Board (ERB) has said that it will only review fuel prices once it is availed with the documentation for a new cargo.
ERB Public Relations Manager Kwali Mfuni says the importation of petroleum feedstock and finished petroleum products is currently in progress.
Ms. Mfuni said that ERB is closely monitoring the performance of the kwacha against the US dollar and international oil prices which are key variables considered when reviewing fuel prices.
Ms. Mfuni said that a review of fuel prices is only done when petroleum feedstock and finished products are imported.
Ms. Mfuni further noted that the public and stakeholders will be informed when need to review the prices that arises as per the standard procedure.
The Church has done tremendous work in the fight against Covid 19-Religious Minister
National Guidance and Religious Affairs Minister the Hon. Rev. Mrs Godfridah Sumaili says the Church has done tremendous work in the fight against Covid 19.
Hon. Sumaili said the church has held it together at such a difficult period and has played a critical role in sensitizing citizens on how to prevent themselves from contracting Covid 19, a disease which has killed multitudes of people across the globe and brought economies to their knees.
She said President Lungu is aware about the challenges the church in Zambia has faced during this period and assured them that they have his full support.
Hon. Sumaili said this when she paid a courtesy call to the kasama Archdiocese this morning where she met with the Vicar General, Fr. Rodgers Fikwama.
Meanwhile, Fr. Fikwama has bemoaned the damage the irresponsible use of social media has caused in the nation.
He said young people have taken to use social media to spread fake news which is causing a lot of problems in the nation.
He said the Ministry of National Guidance therefore has a lot of work cut out for it in restoring moral and ethical values that have unfortunately been eroded over time in the nation.
He has since appealed to the Minister to draw up programs that will effectively address social media abuse.
Musonda Returns to Inspire Leopards To PSL Playoff Victory
Chipolopolo striker Mwape Musonda returned to action for Black Leopards on Wednesday to inspire them to a critical victory in their opening fixture of the 2019/2020 South Africa PSL relegation/promotion playoffs.
Musonda scored the games’ only goal in relegation battling Leopards’ 1-0 home win over promotion chasers Ajax Cape Town when he found the target in the 25th minute to net his 10th league goal of the season.
This was Musonda’s first game back after missing their regular league season-ending 3-0 rout at Mamelodi Sundowns last Saturday that handed their hosts the 2019/2020PSL title for a third successive campaign.
The Zambian striker, who played the full 90 minutes against Ajax Cape Town, missed the Sundowns match due to suspension.
Musonda’s compatriot Roderick Kabwe started for Ajax Cape Town but the midfielder was substituted in the 76th minute.
Leopards top the log on 3 points, tied with Ajax Cape Town while TTM are bottom on zero points in the three-team playoffs with the latter two playing one game more than the leaders.
Musonda’s side now faces TTM this Saturday in their second match of the four game playoffs while Ajax Cape Town will play the latter next Tuesday.