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Transition to New Banknotes To Take Over 12 Months

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Transition to New Banknotes To Take Over 12 Months

Finance and National Planning Minister Situmbeko Musokotwane announced that Zambia will undergo a 12-month transition period to replace its current banknotes with new currency, including the introduction of a 500-kwacha note. The move comes as the country’s highest denomination, the 100-kwacha note, now accounts for more than 60 percent of the currency in circulation—a situation Dr. Musokotwane described as inconsistent with international best practices.

Speaking during a ministerial statement in the National Assembly, Dr. Musokotwane outlined the rationale behind the currency overhaul. “The 500-kwacha note has been introduced to address the disproportionate dominance of the 100-kwacha note in our monetary system,” he said. “This shift is necessary to align our currency structure with global standards.”

The minister assured lawmakers that the transition process would be meticulously planned, with detailed modalities and guidelines to be published in a Statutory Instrument in the coming weeks.

Dr. Musokotwane also addressed concerns about the selection of the company tasked with printing the new banknotes. He emphasized that the government had followed a transparent and selective tender process, engaging only reputable and trusted money-printing firms to submit bids.

“Money printing is a high-security matter that cannot be handled through an open tender,” he explained. “We have ensured that the process adheres to the highest standards of integrity and accountability.”

While the minister did not disclose the name of the selected company due to security concerns, he noted that the firm’s identity would become public once the new notes enter circulation, as its name will be engraved on the currency.

The announcement follows queries from Members of Parliament regarding the cost of the currency overhaul. In response, Dr. Musokotwane instructed the Bank of Zambia to issue a formal statement detailing the expenses associated with printing the new banknotes.

The introduction of the 500-kwacha note marks a significant shift in Zambia’s monetary policy, aimed at modernizing its currency system and improving efficiency in cash transactions. As the country prepares for the 12-month transition, citizens and businesses alike will be watching closely to see how the changes unfold.

The Bank of Zambia is expected to release further details on the timeline and implementation of the new currency in the coming weeks.

President Hichilema and His Unorthodox Approach

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President Hichilema and His Unorthodox Approach

Only the strong, the resolved, and the focused can lead effectively. Looking sideways invites failure. One thing is certain—President Hakainde Hichilema is undeniably forthright. Whether you believe his policies are revolutionary or simply a stroke of luck, Zambia is changing before our eyes. And while some may argue about the pace, direction, or even the man himself, the results on the ground speak louder than opinions.

Take energy, for example. Zambia has long struggled with power shortages, yet today, the country is seeing major solar investments that will secure energy for generations. The UAE partnership has unlocked a $2 billion solar project, wich will add 500MW to the grid. Itimpi Solar in Kitwe, and in May, the 100MW Chibombo Solar Plant will be commissioned. This is not some short-term political promise—it is a calculated move to ensure Zambia never goes dark again.

Agriculture, a sector that many feared was stagnating, is also undergoing a silent but steady revolution. The delays in implementation frustrated many farmers, but the parameters set are solid. With continued improvements, Zambia is looking at consistent bumper harvests. And it’s not just about FISP—loan initiatives are being rolled out for irrigation projects, ensuring that farmers are not left at the mercy of unpredictable rains. At some point, we will have to admit that these are the right moves for long-term food security.

And then there’s mining—a sector that has historically benefited foreign corporations more than Zambians. The new approach is bold, almost unconventional. Instead of leaving everything in the hands of multinationals, the government is giving mining licenses to Zambians, allowing them to build local companies that can one day compete at the highest level. The reopening of Kasenseli Gold Mine in Mwinilunga District is a testament to this strategy. Other mines, which have been closed for many years, are being reopened. This move not only revitalizes the local economy but also ensures that the benefits of our mineral wealth are enjoyed by Zambians themselves. In a decade, some of these small mining firms will be rubbing shoulders with global players, and we will look back at this period as the turning point.

Employment is another area where change is happening. For years, young people would volunteer or intern with little hope of getting a real job. That is shifting. More volunteers and interns are being absorbed into full-time government positions, giving them stability and something to look forward to. It’s not about handouts but about creating pathways for people to secure their future.

Moreover, President Hichilema’s stance on corruption and ineptitude is clear and uncompromising. In July 2024, he dissolved the entire board of the Anti-Corruption Commission (ACC) following allegations against senior officials. This decisive action underscores his commitment to accountability and good governance. By holding even his own appointees to the highest standards, he sends a strong message that corruption will not be tolerated, regardless of one’s position. He fires his policy implementers when found napping.

So, is this leadership working? Is President HH’s approach the right one? Those are questions best answered by time. What is clear, however, is that Zambia is no longer just surviving—it is positioning itself for a future where we stand on our own feet. This is not about slogans or blind loyalty. It is about what is actually happening in front of our eyes. And whether you cheer for him or not, you cannot ignore that something different is happening.

By Adrian Gunduzani

Zambia and DP World Forge $300 Million Partnership to Develop Transport Infrastructure

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Zambia and DP World Forge $300 Million Partnership to Develop Transport Infrastructure

Zambia is set to strengthen its position as a regional transport and logistics hub following a proposed $300 million investment by DP World, a leading global port operator. The initiative, which will commence with an initial $50 million injection, will be executed through a Public-Private Partnership (PPP) with Zamcargo Limited, a subsidiary of the Industrial Development Corporation (IDC).

The agreement was announced after a meeting between President Hakainde Hichilema and DP World Executive Vice President Suhail Al Banna at State House. Mr. Al Banna affirmed DP World’s commitment not only to profit generation but also to enhancing local livelihoods through infrastructure development.

President Hichilema highlighted that Zambia, as a land-linked nation, has the potential to become a pivotal player in regional trade and investment. He emphasized that DP World’s expertise in global logistics would facilitate Zambia’s access to international markets, enhancing its ability to efficiently export and import goods.

The President also underscored the urgency of developing dry port facilities at Walvis Bay in Namibia and Dar-es-Salaam in Tanzania, noting that these sites are critical to improving Zambia’s trade efficiency.

“This initiative aligns with our broader vision of transforming Zambia into a major transport and business hub in Southern Africa,” President Hichilema stated.

The partnership is expected to drive economic growth by leveraging Zambia’s strategic location and natural resources while significantly enhancing the nation’s trade infrastructure.

Mpondela ends 27 year ZA reign, won’t seek re-election next month

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Mpondela ends 27 year ZA reign, won’t seek re-election next month

Zambia Athletics (ZA) will have a new leader in almost three decades after long serving Elias Mpondela bowed out of the contest for the presidency.

ZA elections, which have attracted 38 candidates for the various positions, will be held during the elective annual general meeting (AGM) on March 22 in Lusaka.

Mpondela, who has been at the helm of ZA for 27 years and had successfully filed his nomination for re-election alongside three other aspirants, confirmed he was not running for the presidency.
At press briefing in Lusaka, Mpondela who joined athletics in 1993 when he was elected as chairman of the Lusaka Province Area Board expressed pride with the achievements as president of ZA.
“I have achieved all I can. I have been abused, my children have been abused. Why are you stoning my children, are you stoning them because of the good things that I have done for ZA in 27 years that I have been there?”

“Are you stoning them because I have managed to establish two income streams for ZA. They are all well-schooled so why are you stoning my children?” Mpondela asked.

“Time will come when some people will regret why they treated me so badly and trust me that time definitely will come but I hope it doesn’t get to that. There is this idea of pulling down. I talked about exclusivity of the vision and I know you have to stand alone that is the cost of leadership and that is leadership.”

Mpondela is happy to have witnessed Zambia produce some of the best athletes in the world who have reaped medals at international stage under his leadership.

“Under my leadership we had athletes qualifying for Olympics, Sydney Siame won medals at All Africa Games, Muzala [Samukomga] ran at the Olympics [2024 Paris] and we won bronze medal. So even as I leave, I am proud of our achievements,” he said.

His departure from the race has now reduced the contest to three with outgoing General Secretary Davison Mung’ambata who has served two terms stepping in the competition for the presidency.

Others who have successfully filed in to replace Mpondela are outgoing vice-president Major Bernard Chola Bwalya and former General Secretary Kennedy Kabangu Mubanga.

The vice-presidency which has been vacated by Major Bwalya has attracted Moses Phiri, Carol Mokola, the sprinter who competed in the women’s 100-metres at the 2004 Olympic Games and Samuel Matete who competed in the 400-metres hurdles.

With Mung’ambata vacating the position of General Secretary after eight years of being in charge, Maureen Kolomwe, Chipoma Mulenga and Teddy Shimishi have expressed desire to run the secretariat.

Retired Zambia Correctional Service deputy commissioner Tonny Khunga is eyeing the treasury, so is Komani Ng’ambi, Jonathan Wangu Lupiya, Lewis Mwansa Mwenya and Michael Lungu.

A total of 20 candidates will be battling for the four committee members. They include Moses Phiri who has also filed for the position of vice president, Maureen Situmbeko Boka, Webson Moonga, Ntasuwila Namukonda, Gaston Simwiinga and Silishebo Inambao.

Others are Elizabeth Nkunika, Geddah Phiri, Getrude Gamela Sianakaume, Gift Ngwenya, Bobby Lwendo, and Don Siabasimbi.

The rest are Dave Muleyi Kapang’a, Mike Musanda, Enest Musonda, Charity Tenete, Matilda Halinda Mushashu, Michael Lungu, Prosper Tandabala Misengo and William Kanyanta Walele.

By Benedict Tembo

Dismissal of Joe Kamoko was long overdue

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Dismissal of Joe Kamoko was long overdue

The dismissal of Joe Kamoko as Permanent Secretary -Technical Services was long overdue. Joe was fortunate that, despite his excessive love for pleasure and leisure, he served the government of HH for over two years in the same capacity and same ministry. His conduct on Sunday Interview was unfortunate, unfortunate and ridiculous. His natural liking for pleasure and the bottle of alcohol has earned him a shameful and embarrassing dismissal. He has dropped from HH’s grace to grass and I can imagine how he is regretting now as an individual with a family. Joe may not be the only lover of alcohol caught napping during a television Interview. There are so many senior civil servants who are ever drunk but ignored and saved by superior officers in return with some kickbacks. The civil service requires a complete overhaul in order to serve the country with honesty, hard work and individual discipline.

It should not take the President’s axe to cut down irresponsible top civil servants. Secretary to the Cabinet Patrick Kangwa has done his very best to ensure that the country is served by selfless, dedicated and morally upright civil servants. The like of Joe Kamoko have been a disgrace and require to get into the school of moral rearmament and spiritual infilling of integrity and piety. Joe is such an intelligent fellow who just needs soul-searching and critical re-examination in retrospect as he sits down and examine himself on what made him to behave the way he behaved in the public media in full glare if television cameras.

It is not too late for him to work his salvation with fear and trembling which will enable him to come to terms with His Creator. May the Almighty God pardon his irrelevant behaviour which earned him the embarrassing dismissal.

By Shaddon Chanda

The author is a Luanshya based Historian and Academician

CTPD Calls For A Public Database On Power Purchase Agreements To Enhance Transparency And Accountability In Zambia’s Energy Sector

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CTPD Calls For A Public Database On Power Purchase Agreements To Enhance Transparency And Accountability In Zambia’s Energy Sector

The Centre for Trade Policy and Development (CTPD) urges the Zambian government to establish a publicly accessible database on Power Purchase Agreements (PPAs) to address the growing fiscal, social, and climate challenges in the energy sector. PPAs, which outline the terms for electricity generation and procurement, are critical to resolving Zambia’s
energy crisis. However, the lack of transparency in these agreements has led to unsustainable public debt, limited competitive procurement, and missed opportunities for clean energy development.

Zambia is not alone in facing these challenges. Countries like Ghana have demonstrated the transformative potential of transparency by launching public PPA registers. These initiatives have reduced fiscal risks, attracted high-quality investments, and promoted competitive pricing,ultimately fostering sustainable energy systems. Zambia stands to gain similar benefits by adopting this best practice.

Currently, the absence of a public PPA database leaves citizens uninformed about commitments made on their behalf and creates uncertainties for investors. A transparent register would enable public scrutiny of critical terms such as tariffs, contract durations, and risk allocation. This would not only safeguard public resources but also build investor confidence, ensuring that Zambia’s energy sector is financially sustainable, climate resilient, and socially inclusive.
CTPD calls on the Zambian government, particularly the Ministry of Energy, the State utility, and the Energy Regulation Board (ERB), to prioritize the establishment of a public PPA database.

This initiative is not just a step towards transparency—it is a necessary measure to secure Zambia’s energy future. We also urge civil society, the media, and the public to join this call for accountability and sustainable development.

Issued by:
Lucy P. Musonda (Ms)
Legal Researcher, Centre for Trade Policy and Development

Kasaka ka Ndalama: The Hidden Fear Behind Zambia’s Currency Change

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Kasaka ka Ndalama: The Hidden Fear Behind Zambia’s Currency Change

Kasaka ka Ndalama: The Hidden Fear Behind Zambia’s Currency Change

By Gerald Libati

The introduction of new banknotes in Zambia has ignited intense public debate, with opposition figures seizing the moment to push misleading narratives for political gain. Some critics claim this move signals reckless economic management, falsely equating currency replacement with uncontrolled money printing. However, it is crucial to separate economic reality from political rhetoric and understand the legitimate reasons behind this decision.

One of the most misleading claims made by the opposition is that introducing new banknotes is equivalent to printing money. In reality, printing money in an uncontrolled manner without a corresponding increase in production leads to inflation and currency devaluation. This is what the previous Patriotic Front (PF) government did, flooding the economy with excess kwacha, leading to a weaker currency and skyrocketing inflation. In contrast, replacing banknotes is a common monetary policy measure aimed at improving security features, curbing counterfeiting, and modernizing currency circulation. Countries worldwide periodically update their banknotes to enhance efficiency and ensure financial stability. The introduction of Zambia’s new banknotes falls within this standard practice and is not a scheme to print excessive money, as some opposition leaders suggest.

Under the PF administration, Zambia’s economy suffered severe setbacks due to reckless monetary policies. The previous government engaged in large-scale money printing to finance non-productive expenditures, leading to excess liquidity in the market. Without a corresponding increase in the production of goods and services, this resulted in high inflation and a sharp depreciation of the kwacha. During this period, Zambia experienced a weakened kwacha, skyrocketing inflation, and debt distress. These reckless financial decisions created an economic environment where the cost of living soared, and the kwacha lost value against major global currencies. The opposition’s attempt to criticize the current government’s economic policies without acknowledging their own role in Zambia’s financial downturn is not only hypocritical but also a deliberate effort to mislead the public.

A country’s currency strength is fundamentally tied to its Gross Domestic Product (GDP), the total value of goods and services produced. Printing money without increasing production simply dilutes the currency’s value, resulting in inflation. Conversely, economic stability and currency strength are achieved when a country focuses on growing its GDP through industrialization, trade, and investment. The United Party for National Development (UPND) government has taken a different approach, prioritizing fiscal discipline, increased production, and investor confidence. These measures are designed to gradually restore the strength of the kwacha by ensuring that the economy produces real value, rather than relying on artificial money supply increases.

The panic and misinformation spread by the opposition regarding new banknotes raise an important question: why are they so concerned? A possible explanation is that many of those criticizing the move may have hoarded illicitly acquired cash, fearing that their old money could become obsolete. The claim that the introduction of new banknotes is a corrupt scheme holds no weight, as currency redesign is a standard global practice. Moreover, opposition leaders are capitalizing on public misunderstanding of economic policies. By falsely equating new banknotes with inflationary money printing, they hope to stoke fear and erode confidence in the government. However, informed citizens must recognize that such tactics are merely attempts to score political points rather than offer genuine economic solutions.

Zambia is not the first country to introduce new banknotes, nor will it be the last. Around the world, governments regularly update their currency designs to enhance security, combat counterfeiting, and improve the efficiency of financial transactions. Countries such as the United States, the United Kingdom, and India have undertaken similar measures without causing economic turmoil. For example, the United Kingdom introduced polymer banknotes to enhance durability and security, India demonetized certain banknotes to curb black money and improve tax compliance, and Nigeria redesigned its currency to combat counterfeiting and encourage digital transactions. These cases demonstrate that currency updates are routine policy measures aimed at strengthening the financial system. Zambia’s decision to introduce new banknotes aligns with global best practices and should be viewed as a positive step toward economic modernization.

The introduction of new banknotes will bring several benefits to Zambia’s economy, including enhanced security, public confidence, and more efficient transactions. The new banknotes will feature images of Zambia’s animals, plants, and waterfalls, celebrating the country’s heritage. Additionally, the new currency will make counterfeiting more difficult and improve everyday spending by providing a more durable and easier-to-handle form of money. Those who hoard cash for illicit purposes will be compelled to bring it into the formal banking system, increasing transparency.

A major concern for the opposition revolves around the “Kasaka ka Ndalama,” a sack full of money. Their fear is not about the policy itself, but rather the fate of hidden stashes of cash that may still be buried in secret locations, much like how Hon. Austin Liato buried K2.1 million at his farm, only for it to be discovered and confiscated. The introduction of new banknotes forces those who hoarded large sums of cash, potentially obtained through illicit means, to reveal their wealth. The opposition’s concern is clear: what will happen to those who still have secret cash reserves? The dilemma is simple: either they declare and exchange their old banknotes, risking exposure, or lose their wealth when the old currency is phased out. This is a critical step in ensuring accountability and strengthening Zambia’s financial system.

The process of introducing new banknotes started in July 2021 when the Bank of Zambia (BoZ) Board approved the changes. A nationwide education campaign will soon be launched to help people understand the changes. The Ministry of Finance and National Planning will issue a Statutory Instrument (SI) to guide how people can exchange old banknotes and coins for the new ones. This will ensure a smooth transition to the new currency.

Zambia’s economic recovery will not happen overnight, but the government’s policies are laying the foundation for sustainable growth. By focusing on GDP expansion rather than reckless money printing, the kwacha will stabilize over time. History has shown that responsible monetary policies, coupled with production-driven economic growth, are the only paths to long-term financial stability. Instead of falling prey to political propaganda, Zambians must look at the broader picture. The introduction of new banknotes is a necessary step towards financial security, not a repeat of past mistakes. Unlike the PF’s era of reckless economic mismanagement, this government is implementing structured and calculated policies to foster stability and growth.

The opposition’s fear-mongering should not distract Zambians from the truth. The introduction of new banknotes is a responsible policy move aimed at strengthening the financial system. It is not an inflationary scheme, nor is it a political gimmick. Zambia has moved beyond the days of reckless money printing and economic sabotage. As the nation progresses, it is crucial for citizens to rely on facts rather than misinformation. The government remains committed to economic stability, growth, and financial security. By supporting policies that foster production, investment, and fiscal responsibility, Zambia will emerge stronger and more resilient. The path ahead is clear: a stable currency, a growing economy, and a prosperous future for all.

The Perils of Denial in Zambian Politics

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The Perils of Denial in Zambian Politics

By Kapya Kaoma

President Hakainde Hichilema (HH) and his supporters share a troubling trait: denial. They are aware that Zambians are being pushed to their limits, both politically and economically. They recognize that public confidence in President HH’s leadership has waned. In fact, they struggle to defend any of his accomplishments beyond the vague notion of “free education.”

Despite countless promises made, there is a stark contrast. President HH vowed to reduce the price of mealie meal but failed; he promised to create jobs but fell short; he committed to lowering fuel prices, yet those prices remain high; and he assured Zambians that the cost of fertilizer would decrease, but that promise, too, went unfulfilled. Instead of addressing these failures, his supporters resort to insults, dismissing anyone who questions his leadership as either tribalists or simply lazy. If Zambians were lazy during the Lungu administration, why then did HH blame Lungu for the economic situation of the country?

To me, this pattern of denial is perplexing. The same individuals who once criticized previous presidents for Zambia’s poverty now blame critics and citizens for voicing their concerns. It is unjust to have held President Lungu accountable for these failures while excusing President HH from similar critique. He has not met his promises and must be held accountable.

Sadly, those who attempt to speak out are met with police brutality and imprisonment. It doesn’t matter who speaks out; today, social media is monitored to intimidate people into silence as a way of shielding the president from public criticism.

This alarming culture of intimidation must be rejected by all Zambians. Silencing dissent through threats of imprisonment will not resolve our national problems. To assert that HH deceived Zambians to secure the presidency is not a crime; neither is it a crime to express concern about his health or mental state. The frustration felt by the public stems from the harsh economic realities we face. People will vent their anger on social media and publicly against the president since he stands at the helm of power.

To his supporters, President HH may seem like a demigod; yet, to his opponents, he is viewed as nothing but a villain. While his supporters may idolize him, those who disagree will continue to voice their discontent and may resort to derogatory language. The struggling economy will undoubtedly influence how people perceive and discuss the president. Who doesn’t eat? Who doesn’t use public transport or buy groceries? Whether one is a supporter or not, we all use the same Kwacha. Economically, things were better during the Lungu administration. Denial does not fill our pockets with money. As people compare the two administrations, they are apt to criticize HH.

It is critical, therefore, for the president and his supporters to understand this as we approach the campaign season. To believe that the opposition will worship President HH is as unrealistic as expecting the Pope to bow down to Satan.

President HH and his followers may be in denial, but not the majority of citizens. They may be silent today, and may not even show up during the ongoing by-elections. Come 2026, however, these are the ones who will make the final call. Will HH’s intimidations win him a second term? Kaya!

JCTR Urges Government To Safeguard Freedom Of Expression

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JCTR Urges Government To Safeguard Freedom Of Expression

The Jesuit Centre for Theological Reflection (JCTR) has urged the Government to take concrete steps to safeguard freedom of expression and opinion.

JCTR Deputy Director Fr Boyd Nyirenda said upholding fundamental rights is crucial not only for the protection of human dignity but also for fostering a democratic society that thrives on open dialogue, transparency, and inclusivity.

Fr Nyirenda said freedom of expression IS a cornerstone of democracy.

“JCTR urges the Zambian Government to take concrete steps to safeguard freedom of expression and opinion. Upholding this fundamental right is crucial not only for the protection of human dignity but also for fostering a democratic society that thrives on open dialogue, transparency, and inclusivity,” Fr. Nyirenda said in a statement.

He said to advance democracy and national development JCTR is proposing legal reforms, alignment with international human rights standards, effective implementation of access to information act and strengthening of democratic institutions.

“JCTR considers freedom of expression a cornerstone of democracy, as it encompasses the right to express religious and political views, access information, and engage with diverse opinions through various media. In light of this, the Jesuit Centre for Theological Reflection concurs with Khan’s assessment and proposes the following measures to advance democracy and national development: Legal Reforms and Institutional Accountability Zambia requires legal reforms accompanied by clear policies to ensure professionalism among law enforcement and prosecutorial authorities,” Fr. Nyirenda said.

“The fair and non-discriminatory application of laws would encourage equal political participation, uphold the right to religious and political assembly, and foster public trust by reducing suspicions of political persecution and ethnic bias. This political environment aligns with Zambia’s constitutional declaration as a Christian nation and a pluralistic society, where civil society plays a crucial role in providing checks and balances on political authority and social institutions,” he said.

JCTR has published this document, following a 10-day visit to Zambia, by the United Nations Special Rapporteur on Freedom of Expression, Irene Khan, who highlighted both advancements and concerns regarding the right to freedom of speech in the country.

Trust system, FAZ chief urges all

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Trust system, FAZ chief urges all

Amidst anxiety, accusations and speculations, the Football Association of Zambia (FAZ) has urged candidates who have filed in their nominations for the various positions on the FAZ executive committee to allow the process to run smoothly as laid out in the constitution and electoral code.

“For the process to be credible, everyone must play their part and avoid raising unnecessary alarm at every stage. FAZ is committed to running a very free and fair process,” FAZ general secretary Reuben Kamanga says.

FAZ will hold elections on March 29, 2025 in Livingstone where the membership will elect the president, vice president and the women’s representative.

Provincial elections will run from March 15-27 with each of the 10 regions voting for a chairperson, vice chairperson, committee member, women representative and youth representative.

The provincial chairperson sits at the national executive committee.

In a statement today, FAZ updated its members and stakeholders about the progress of electoral activities that have been going on since the announcement of the electoral roadmap on January 11, 2025.

Kamanga says the Governance and Review Committee and the Electoral Committees were currently scrutinising the nomination for integrity and eligibility among other checks as guided by the FAZ Constitution and the FAZ Electoral Code of 2020.

He says members of the Governance and Review Committee, Electoral Committee and Electoral Appeals Committee are appointed by the FAZ Council which is the supreme organ of the Association and are supported administratively by staff members from secretariat.

“We would like to congratulate the various candidates that expressed interest in contesting elections by filing nominations physically, online and through email. The process is now at vetting stage by the Governance and Review Committee that is running the integrity check. After that, the Electoral Committee will deal with the intricate details of eligibility,” Kamanga says.

He says the process is on course in conformity with the roadmap that will see the Electoral Committee unveil the list of successful candidates on February 17, 2025. Unsuccessful candidates will have up to February 22, 2025 to appeal when the final list will be announced.
Nine candidates including incumbent Andrew Kamanga have filed for the presidency of FAZ.
Others are former FAZ vice president Emmanuel Munaile, general secretaries Adrian Kashala and Machacha Shepande as well as two journalists Alex Njovu and Godfrey Chikumbi. The rest are MUZA FC proprietor Keith Mweemba and accountant Mumbo Lombe.

By Benedict Tembo

Vice President Mutale Nalumango Welcomes New Members of Parliament

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Vice President Mutale Nalumango Welcomes New Members of Parliament

Vice President Mutale Nalumango officially welcomed the newly elected Members of Parliament for Kawambwa, Pambashe, and Petauke Parliamentary Constituencies.

Addressing the MPs in Parliament , Mrs. Nalumango emphasized the significance of their role, stating that they have been entrusted with the great responsibility of representing the interests of the people who have placed their trust and faith in them.

She urged them to work tirelessly towards the betterment of the people and the nation.

The Vice President also highlighted the importance of President Hakainde Hichilema’s upcoming address to the House on the progress made in the application of national values and principles. She noted that this undertaking enables the country to evaluate the strides being made in national development.

Mrs. Nalumango has since encouraged all MPs to be receptive to the President’s address to the House.

Leader of the Opposition in the House, Robert Chabinga, stated that opposition MPs are eager to receive President Hakainde Hichilema’s address on the progress made in the application of national values and principles.

Mr. Chabinga emphasized that opposition MPs will ensure they provide alternative perspectives and solutions on how to promote a deeper understanding of national values and principles.

He also commended the government for implementing the cash-for-work program, which has enabled citizens to engage in community projects and earn a decent living.

Meanwhile, Mr. Chabinga congratulated the three newly elected Members of Parliament on their successful entry into the House.

Bank of Zambia to Introduce New Banknotes on March 31, 2025

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Bank of Zambia to Introduce New Banknotes on March 31, 2025

The Bank of Zambia (BoZ) has announced that it will introduce new banknotes for the local currency on March 31, 2025.

The updated currency will include the introduction of 500 and 200 kwacha notes. Additionally, new coins will be issued in denominations of 5 kwacha, 2 kwacha, and 1 kwacha, along with smaller units of 50 ngwee, 10 ngwee, and 5 ngwee.

BoZ Governor Denny Kalyalya confirmed that while the new currency will feature updated designs, the fundamental elements will remain unchanged. The alpha code for the Zambian kwacha (ZMW), the numeric code 967, the currency symbol K, and the value of the currency will not be altered.

Dr. Kalyalya emphasized that the new currency design is inspired by Zambia’s rich heritage, incorporating elements that celebrate the nation’s unique flora, fauna, and breathtaking waterfalls.

The introduction of these new banknotes and coins is expected to enhance the security and efficiency of Zambia’s monetary system while reflecting the country’s cultural and natural beauty.

Zambia Participates in AUDA-NEPAD Heads of State Meeting

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Zambia Participates in AUDA-NEPAD Heads of State Meeting

Zambia participated in the 42nd virtual Session of the AUDA-NEPAD Heads of State and Government Orientation Committee Meeting, chaired by His Excellency Abdel Fattah El-Sisi of Egypt. The virtual meeting served as a vital platform for discussing key developmental issues across Africa.

The AUDA-NEPAD meeting, reviewed activities from 2024, including developments related to the feasibility study for establishing the African Development Fund and the second ten-year plan for implementing Agenda 2063. Discussions focused on addressing challenges such as poverty, unemployment, and declining rates of food, water, and energy security.

President Hakainde Hichilema, representing Zambia, highlighted the country’s progress in preparing to host the 2025 World Skills Africa Competition and Conference Day. He reaffirmed Zambia’s commitment to advancing skills development and fostering innovation to drive economic growth and youth empowerment.The 2025 WorldSkills Africa Competition and is scheduled to take place from April 7 to 12, 2025, in Livingstone. The competition will feature 20 skill categories, reflecting both continental demands and Zambia’s national development priorities, particularly in sectors like agriculture, mining, manufacturing, and tourism.

In his address, President Hichilema also underscored the significance of infrastructure development, energy sufficiency, and regional interconnectivity in accelerating Africa’s economic transformation. He emphasized that strategic investments in these areas would enhance trade, improve livelihoods, and strengthen Africa’s position in the global economy.

Zambia’s participation in the AUDA-NEPAD meeting reflects its ongoing commitment to regional collaboration and sustainable development, reinforcing the shared vision of a prosperous and interconnected Africa.

UPND Dissolves Eastern Province Party Structures

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UPND Dissolves Eastern Province Party Structures

The United Party for National Development (UPND) has dissolved its Eastern Province party structures in a bid to address internal conflicts.

The UPND Secretariat, Secretary General, Batuka Imenda disclosed that the party has dissolved its Eastern Province Provincial Committee, the district committee and community ward committee in Petauke.

ZANIS reports that Mr Imenda says the decision comes after prolonged divisions within the party, which have hindered its progress in the region.

Speaking during a press briefing, Mr Imenda said the party had been plagued by serious differences since the last election, resulting in the formation of two rival camps.

He said despite efforts to reconcile the factions, the divisions have persisted, affecting the party’s performance at the district, constituency, and ward levels.

Mr Imenda emphasised that the party’s rules and regulations must be adhered to, warning that failure to comply would have consequences.

He stated that the Secretariat decided to take measures to restore order and discipline within the party.

He noted that the dissolution of the Provincial, District and Ward committees will not affect Lusangazi and Kaumbwe, which are part of Petauke.

Mr Imende added that all district structures will be reporting directly to the Secretariat, which will work to fill the vacancies created by the dissolution.

And Mr Imenda congratulated the Tonse Alliance for its victory in Petauke and the UPND in Pembanshe, Mpongwe, and Nalikwanda by-elections

Economic Costs of Informal Businesses

Chief Editor
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9
Economic Costs of Informal Businesses

How Informal Sector is undermining Zambia’s Economic Development

By Mwansa Chalwe Snr

“ The Trump administration has already frozen almost all foreign assistance and made moves to dismantle USAID,” CNN reported in a story of President Trump’s Executive Order suspending AID to South Africa.

The Trump administrations decision to cut foreign aid should serve as a wake-up call to Sub-Saharan Africa, including Zambia, highlighting the reality that no nation can achieve sustainable development through reliance on handouts. Zambias reliance on foreign aid has masked the need for homegrown solutions to drive development. It is now imperative for Zambia to develop homegrown solutions and leverage our natural resources to generate income for economic progress.One of the most viable solutions I have consistently advocated for in my commentaries in the past ten years to solve youth unemployment especially, is addressing the vast informal sector, which is estimated to account for 90% of the economy in Zambia and other Sub-Saharan nations. Reducing the size of the informal sector can have a significant impact on the countrys economic growth.Empirical evidence shows that no country can develop with a huge informal sector. Now is the time to implement the formalization solution.

Formalization is supported by many international organizations like the International Monetary Fund (IMF) who believe that : "Informality critically affects how fast economies can grow, develop, and provide decent economic opportunities for their populations. Sustainable development requires a reduction in informality over time. Economic growth in regions or countries with large informal sectors remains below potential. Addressing informality is thus essential and urgent to support inclusive economic development and reduce poverty worldwide”.

They are supported by the African Development Bank who in a 2018 study entitled “Informal Sector and Economic Development in Africa” observed : "The informal sector accounts for a significant share of economic activity in Africa, but its potential can only be fully realized through formalization, which can provide access to finance, markets, and social protection. Formalization of the informal sector is crucial for Africas economic transformation, as it can lead to increased productivity, improved working conditions, and enhanced economic growth.

There is no doubt that Zambia’s current size of the informal sector carries significant economic costs, and
this article will outline those costs to encourage authorities to prioritize solving this issue, which offers
substantial benefits for economic recovery and development.

Suboptimal Production
The informal sector often operates with limited access to advanced technology, skilled labor, and efficient production methods. This results in lower productivity and output compared to formal enterprises.Suboptimal production not only limits the growth potential of these businesses but can lead to a waste of resources, reduced economic growth, and lower living standards.

Low Investment
Informal businesses typically have limited access to formal credit and financial services because they often lack collateral or formal financial records, making it difficult to secure loans or attract investment from formal sources which restricts their ability to invest in capital, technology, or expansion which leads to reduced job creation. Additionally, informal enterprises often reinvest less of their profits into their businesses due to uncertainty and the need to prioritize short-term survival over long-term growth.

Free Rider Phenomenon
The informal sector often benefits from public goods and services (e.g., infrastructure, security, and education) without contributing to their funding through taxes. This creates a “free rider problem, where informal businesses enjoy the benefits of public investments without sharing the costs. This undermines the governments ability to fund and maintain public services, placing a heavier burden on formal businesses and taxpayers.

Unfair Competition to Formal Enterprises
Informal sector businesses often operate outside of regulatory frameworks. They often avoid taxes,regulatory compliance costs, and labor protections, allowing them to operate at lower costs than formal enterprises. This creates an uneven playing field, where formal businesses struggle to compete with informal ones. Unfair competition can undermine the formal sectors ability to create jobs, drive innovation, and contribute to economic growth. Over time, this can discourage formalization and reduce the competitiveness of the formal sector.

Low Innovation
The informal sector generally lacks the resources, incentives, and institutional support needed for innovation. Informal businesses often focus on survival and short-term gains rather than investing in research and development or adopting new technologies. This limits their ability to improve products,processes, or services, which in turn hinders overall economic progress and technological advancement.Low innovation in the informal sector can limit its ability to create new jobs, drive economic growth, and improve living standards.

Large Uninsured Population
Workers in the informal sector typically lack access to social security, health insurance, and other safety nets. This leaves them vulnerable to economic shocks, health crises, and other risks. A large uninsured population increases the burden on public healthcare systems and social services, as informal workers often rely on government assistance during emergencies. This also perpetuates poverty and inequality.

Conclusion
The informal sector poses significant economic challenges, including inefficiencies, inequality, and reduced growth potential. Addressing these issues requires initiatives and policies that encourage formalization, improve access to finance and social protection, and create a level playing field for all businesses. By integrating informal workers and enterprises into the mainstream economy, governments can unlock greater economic potential and ensure more inclusive development.

To implement the formalization program, there is no need for the Zambian government to reinvent the wheel. The Zambia Chamber of Commerce and Industry (ZACCI) has already developed a well-researched formalization solution that leverages mobile technology and Artificial Intelligence (AI).ZACCI has partnered with the Industrial Development Corporation (IDC) and plans to collaborate with key government agencies such as the Citizen Economic Empowerment Commission (CEEC), the Zambia Revenue Authority (ZRA), the Bank of Zambia, the Patents and Companies Registration Agency (PACRA), the National Pension Scheme Authority (NAPSA), National Health Insurance Management Authority (NHIMA) and various economic cluster ministries. The objective is to implement an innovative and sustainable formalization program under a soft Public Private Partnership (PPP) model which is designed to rapidly transform Zambias economy in a very short period of time.

ZACCI has benchmarked its initiative on Latin American countries like Brazil, Mexico, Peru, Columbia,Chile, Argentina, Uruguay and Ecuador who successfully implemented similar programs between 2000 and 2015 and transformed their economies. Brazil had the most dramatic transformation because its formalization program was multifaceted like the ZACCI one.

By 2012, Brazils economy had surpassed that of the UK, becoming the 6th largest in the world. The countrys GDP had grown from $552 billion in 2000 to over $2.5 trillion, GDP grew by 4.5% per annum between 2000 and 2012; foreign investment increased from $20 billion in 2000 to over $60 billion in 2012; tax revenue increased from 24% of GDP in 2000 to over 30% in 2012 ; poverty reduced as millions of Brazilians – 89%were lifted out of poverty – with the poverty rate declining from 35% in 2000 to under 20% in 2012; the middle class grew from 40% of the population in 2000 to over 50% in 2012 and
unemployment rates dropped from over 12% in 2003 to around 5% in 2012.

By addressing the informal sector, Zambia can unlock its economic potential and accelerate its move towards sustainable development, regain its economic sovereignty by doing away with excessive foreign borrowing and dependency on foreign Aid with its attendant black mail on economic, political and social policies.

The writer is a Chartered Accountant, Author and an independent financial analyst and Economic Commentator.

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