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The Foundation for Democratic Process (FODEP) says Zambians should demand prudent use of their tax payers’ money by politicians and senior civil servants.
FODEP Executive Director Macdonald Chipenzi says it is unfair for Secretary to the Cabinet to remain mute on how much money was spent on the Presidential delegation to the UN General Assembly to New York recently.
Mr. Chipenzi said the Secretary to the Cabinet should tell the Zambian people where the money to take care of such a huge presidential delegation came from.
He added that Zambia should be ashamed to be given as an example of a country that took a huge delegation of 256 people to the UN General Assembly.Mr. Chipenzi further said that it is sad that while the people of Zambia are suffering, resources are being wasted on things that are trivial.
Lawyers representing former President Rupiah Banda have written to the Anti-Corruption Commission (ACC) questioning the legality, propriety and procedural correctness of the announcement that it had written to the Director of Public Prosecutions appealing his acquittal in the abuse of authority case when they do not have such powers, his lawyers have revealed.
Defence counsel Makebi Zulu has confirmed writing to ACC because it did not have such powers as to direct the DPP to appeal the Nigerian oil case which was also out of time and therefore statute barred.
He also expressed surprise that while the courts normally gave parties 30 days to appeal, the ACC was making its intention known after four months of the former president’s acquittal.
ACC spokesperson Timothy Moono said yesterday in Lusaka at a press briefing that the commission was considering appealing Mr Banda’s acquittal.
And the Gallant Youth in Zambia (GYZ) executive director Henry Mulenga has said the attempt by the ACC to appeal the acquittal of Mr Banda was misplaced and will just waste public resources.
Mr Mulenga said it was for this reason the commission had been doubted in the manner they handle cases, owing to the fact that Mr Banda’s oil deal had been investigated a long time ago before it was committed to the courts of law.
“These are the issues which could have been done a long time back by the same ACC, and the courts could have not even wasted their time, but wanting to appeal the case at this time will be a waste of time and resources, especially that the country is faced with various economic challenges that need attention,” he said. Mr Mulenga urged the Ministry of Justice not to entertain the ACC’s decision to appeal the case, alleging that there might be some individuals who wanted to waste resources for the reason best known to themselves.
Mr Moono said currently, the Commission had taken interested in various cases, citing former president Rupiah Banda‘s case in which he was acquitted of the alleged charge of abuse of authority of office in an oil deal involving a Nigerian company.
He said the process to appeal former President Banda’s acquittal had begun, but was only awaiting the feedback from the national prosecution authority.
And the ACC has recorded 387 reports of suspected cases of corruption during the third quarter of which 62 cases were under investigations.
Mr Moono said the Commission wished to clarify that not all irregularities that were reported in the Auditor-General’s reports fall within the mandate of the ACC, despite the long standing cordial relationship that exists between the office of the Auditor-General and the Anti-Corruption Commission. He said the Commission would endeavour to follow up on reports of suspected corruption and address the corruption scourge from different fronts.
Mr Moono said the Commission believed that a lot of progress had been made towards addressing corruption in Zambia as evidenced from both local and international data. He appealed to members of the public to continue being proactive and report all suspected cases of corruption to the Commission, considering that members of the public actually witnessed those corrupt transactions.
Mr Moono said Commission would not be derailed by any negative comments and unwarranted criticism from any person or entity, but would continue advancing the fight against corruption and strengthening partnership with stakeholders to achieve even greater results.
“According to Transparency International’s Corruption Perception Index (CPI) rating between 2010 and 2014 indicates corruption levels in Zambia are perceived to be decreasing,” he said. Mr Moono said the Commission continued to sit in as an observer capacity on a number of Tender Evaluation Committees constituted by Ministries, Departments and Agencies (MDAs) in order to ensure integrity of processes.
“The Commission continues to conduct different outreach programmes aimed at sensitizing as many people as possible on matters of corruption so that people’s mindsets begin to shift from acceptance of corruption as part of everyday life, to rejection and resistance of corrupt practices,” he said.
The Zambia Chamber of Mines welcomes recent efforts by the government to work collaboratively with the mining industry in addressing the current challenges revolving around recent events in the industry, namely suspension of operations, job losses and the energy deficit.
The Chamber acknowledges the importance of jointly owning all efforts with government to ensure that current challenges are overcome, if not eliminated in the not too distant future. It is very clear that without such joint ownership, the task of redressing these challenges will be made even more difficult.
The current state of the mining sector in Zambia is grave, if not perilous, and it calls for urgent attention in order to sustain existing operations and avert continuation of the current spate of suspensions and loss of jobs. In this context, the Chamber views the focus on mining in the recently announced 2016 national budget as generally inadequate and at odds with the need to apply urgent and decisive restorative measures to the industry.
In the current environment, the mining industry is faced with a global downturn that draws ominous parallels with the trend last seen in 2008, when prices of commodities on the international markets experienced a severe downturn. In the last few years, the industry has faced a general upward creep in the cost of operating in Zambia due to escalating costs of inputs, labour and various taxation measures, among other things.
In the normal course of business, this has represented a challenge. In a period of declining commodity prices, this challenge represents a considerable obstacle to the viability of several operations in the country, as is currently being experienced.
The Chamber reiterates its support for constructive, effective and urgent dialogue with the government and other partners to resolve the current state of the industry in Zambia.
We fully support the ongoing effort by the government of Zambia to engage with the mining operations in Zambia to achieve this, and we remain committed to the process started by government to discuss urgent solutions to avert the ongoing crisis, which if not managed resolutely and urgently will result in continued job losses and loss of business within the mining sector and related industries.
The Chamber looks forward to working with the government of Zambia and ministries that have been tasked to address the various challenges facing the industry in a decisive and inclusive manner.
The Zambia Fashion Week has cultivated a loyal following within the target audience for local brands, young discerning trend-setters that shape opinions and tastes among Zambia’s elite.
It is that time of the year when all roads for fashion lovers lead to the Zambia fashion week. This year’s event is scheduled to run from October 15th to 17th. Mulungushi International Conference Center will house this year’s shows that promise to be bigger and better. Time for all shows is 18hrs . Tickets on sale at the venue from the New Wing . The theme for this year is Create, Design, Empower.
This year, the fashion show boasts of a record 52 Zambian designers who have confirmed showcasing. This year’s event will also see five designers from the region, including David Tlale, who will be the guest designer.
David Tlale
This year’s fashion week promises to be exciting as the organizers have spiced it up by including plus size or voluptuous male and female models. A total of 42 models are expected to catwalk.
Zambia Fashion Week organizer Karen Nakawala said this theme was chosen after the realization that through creation and design, various designers are empowering other people through the different jobs they are creating. “There are no special categories being showcased but each designer has something unique that they bring to the table, and that is what makes the show very exciting.”
“I see Zambian Fashion week as the hub of fashion in this region in the next five years and being compared to big shows such as Africa Fashion International , Mercedes Fashion Week , Swahili Fashion week and others, but we need to work together to achieve this , and it is not impossible” she said
Zambia Fashion Week has been run by Karen Nakawala since 2009 and has managed to create a platform for both Zambian and regional designers to showcase their work, but equally rekindle what was once a thriving textile industry.
The show will also feature children’s category, and these will be dressed by Charity Nyirongo of Mo Creations.
Zambian Fashion Week will be supported by Alliance Motors, Africa Pride Insurance, National Arts Council, Zambia Tourism Board, Toyota Zambia, Fortress Media, Hotel Intercontinental and Vibriant Trading.
For fashion lovers, this is a must see show.
Let us support our local fashion industry.
On 18th October there will be a Trunk Sale day , from 12hrs to 17hrs at Intercontinental Hotel Pool Side . Get yourself ready to buy whatever design you love. The event will be hosted by David Tlale and the Zambian Fashion Week team .
FILE: National Airports Corporation Limited managing director Robinson Misitala (far left) and Livingstone Mayor Aggrey Njekwa (middle) give caps to visitors upon their arrival at the new international terminal building in Livingstone
WORKS and Supply Minister Yamfwa Mukanga has asked contractors working on the new terminal building at Harry Mwaanga Nkumbula International Airport in Livingstone to complete their works by the first week of next month.
Mr Mukanga, who was impressed with the works done so far when he inspected the premises on Tuesday, said there was need for contractors to complete the project by November 7, 2015 after which the facility would be commissioned.
This was after contractors assured the Minister that the works would be completed by the end of this month (October 2015).
In 2010, the Government started constructing a new terminal building in Zambia’s Tourist Capital.
The facility was opened for use in August 2013 before it was fully completed ahead of the 20th session of the United Nations World Tourism Organisation (UNWTO) General Assembly which was co-hosted by Livingstone in Zambia and Victoria Falls town in Zimbabwe.
“We need to finish this job soon and please ensure to be done with the project by the first week of November.
“I have inspected the works and have seen that only few works are yet to be done,” Mr Mukanga said.
He however urged contractors not to compromise with quality as they do the final touches to the project.
“Let ensure to have high quality as real works are expensive. We are expecting the lifts to be installed and the lounges to be available.
“This is a very good piece of infrastructure as it matches with modern airport terminals across the globe. We want to give satisfaction to clients. The Patriotic Front (PF) Government is all about giving satisfaction to citizens,” Mr Mukanga said.
He said he was not happy with delays in contracts as that meant more money had to be spent while contractors had to claim interest from Government.
He also said the Government would review the recently hiked road tax, licences and other traffic fees after people’s cries.
“Cabinet has given us chance to review. We will review the charges and decide on how to proceed whether to increase and maintain old fees,” Mr Mukanga said.
Mrs Mwanakatwe
Commerce Minister Margaret Mwanakatwe says Zambia needs to set a target of 12 percent Gross Domestic Product -GDP- growth rate in order to bring about positive change.
Mrs. Mwanakatwe says the country is rich in various resources making the 12 percent GDP growth target attainable.
Mrs. Mwanakatwe was speaking when she launched “Ready to Work” program by Barclays Bank at the Zambia Centre for Accountancy Studies -ZCAS- in Lusaka .
She observed that the current 7 percent GDP target is not adequate to lift the 70 percent population living in poverty
The Minister says she has in the past five months seen unprecedented high levels of foreign investors expressing interest to tap into the Zambian economy a sign of greater things to come despite the current global economic turbulence which has not spared the country.
And Barclays Africa Regional Management Chief Executive Officer Mizinga Melu says Ready to Work is meant to prepare students for the job market after graduating from school.
Meanwhile Barclays Bank Zambia Chief Executive Officer Saviour Chibiya says the challenge of jobs in Zambia is high especially that three quarters of the population is below the age of 30.
And ZCAS Executive Director Alvert Ng’andu welcomed the program noting that the institution is keen to ensure its graduates are ready to be productive either as employees or entrepreneurs.
This is the group photo for all the graduants who received their certificates in general nursing and others in midwifery after their successful training at St. Paul’s Schools of Nursing and Midwifery.
The Zambia Union of Nurses Organisation (ZUNO) and the Government of the Republic of Zambia (GRZ) have signed the 2016 collective agreement for improved salaries and conditions of service for Nurses and Midwives in the public service ranging from 10.4% to 28.5%.
This draws from the general increment awarded to all the public service workers in the health sector that ranges from 9% to 28.5%.
Speaking during the signing ceremony in Lusaka today, ZUNO President Thom Yung’ana, who also represented the other health sector unions, noted that the salary increments have been set using the principle of graded salary increment as opposed to the across the board salary increment, in accordance with the guiding principles agreed upon to be implemented over the ten year period (2012 to 2021).
Mr Yung’ana said the increment has positive effect on allowances in the health sector as every percentage that has been gained on the basic pay is reflected in allowances such as Housing, Transport, Health Personnel Shift differential, Commuted Night Duty and, Rural and Remote hardship Allowances.
He said the introduction of the Compulsory Group Funeral Insurance Scheme aimed at improving employees’ welfare. The scheme is 1% of the monthly basic salary to be shared between the Government and the employee at the rate of 0.60 % and 0.40% respectively.
Mr Yung’ana further noted that the negotiations were undertaken with the perception that the country currently has a limited finances and has therefore employed government to be prudent in the manner resources are utilised.
Other matters that ZUNO managed to resolve during negotiations includes the engagement for restoration of packages for former dismissed Nurses and Midwives, andthe reinstatement of the health personnel shift differential allowance for the thirty six (36) affected members.
And leader of the government negotiating team, and Public Service Management Division Permanent Secretary Dr Velepi Mtonga, stated that the negotiations were not easy and thanked the unions for exhibiting maturity and applying the spirit of give and take adding that have enabled the government to maintain the GDP ratio which paves way for economic growth.
The Two parties negotiated under the guidance of Mr Vincent Musowe, as Chairperson who also highlighted the importance of the health sector in relation to national productivity.
The salaries agreement was based on the correction of distortions and the Notching System which has been introduced in the single Spine Salary Structure that is based on the Job Evaluation and Re-grading (JERG) exercise.
The Ministry of Agriculture in Muchinga Province says it has received the laboratory test results for the fish samples from Chambeshi and Kalungu Rivers that were taken to Lusaka for testing.
Muchinga Principal Fisheries Officer, Dan Sinyinza has told the ZANIS in Chinsali today that laboratory test results for the fish samples on the diseased fish from Chambeshi and Kalungu Rivers have indicated that the disease affecting the fish in the two water bodies is Epizotic Ulcerative Sydrome (EUS).
Mr. Sinyinza however, said that the fish is safe to be consumed. Mr. Sinyinza has since appealed to local people to continue enjoying the fish.
Chinsali Central Member of Parliament Christopher Mulenga recently appealed to the local people in the area to stop consuming the diseased fish found in Chambeshi and Kalungu Rivers in the Province.
Addressing public meetings in his constituency recently, Mr. Mulenga who is also Defence Deputy Minister said people should stop consuming fish from the two Rivers as government was still carrying out investigations.
People living along the two river banks in Chinsali, Shiwang’andu, Isoka and Nakonde Districts, first spotted the suspected diseased fish about five months ago.
The Electoral Commission of Zambia (ECZ) has dismissed a registration officer who was caught charging members of the public to register as voters.
The registration officer together with his accomplice from the Zambia Police Service, have since been arrested by Police in Kasama.
This is according to a press release by ECZ Public Relations Manager Cris Akufuna, in a statement to ZANIS, today.
The names officer admitted to have been asking eligible voters k20 to have them registered.
Mr. Akafuna has revealed that the Commission has also received a report from Luangwa district where a foreigner, believed to be a Mozambique national, attempted to obtain a voter’s card using a deceased person details.
He said the man is arrested after alert registration officers noticed that the portrait on the voter register was different from the person who presented himself upon verification.
He said police have arrested the suspect and the brother of the deceased voter who are expected to appear in court soon.
Mr Akufuna has remainded the general public that the only requirement for one to register as a voter is to be 18 years and above and possess of green national registration card.
The ECZ has appealed to members of the public to report any voter registration malpractices to the police.
Deputy Minister, Forrie Tembo
Government has expressed disappointed with the pace at which the national card registration and voter’s cards registration were being conducted in Nyimba District.
Information and Broadcasting Deputy Minister Forrie Tembo says the pace at which the registration exercise is being conducted in the district was worrying.
He revealed that only 2, 234 people have obtained NRCs in the category of the first registration while in the category of changing, lost and damaged cards, 1, 244 have so far been recorded since the
commencement of the exercise.
Mr, Tembo, whoHe said this when he inspected several registration centres in the District. He observed that so far Nyimba District has been rated the lowest in terms of the figures captured since exercise began.
He added that at the rate the exercise was going it will be difficult to meet the targeted 15,000 voters.
T he slow pace is due to lack of publicity of the exercise as well as proper coordination between officers issuing National Registration Cards and those issuing Voters’ Cards, he said.
Mr. Tembo observed that there were 16 teams of officers from ECZ against 4 teams of officers issuing NRCs operating in different areas adding that most of the people are only obtaining NRCs without registering as voters.
The Minister wondered why officers from National Registration Office
did not follow the deployment pattern done by ECZ crew, so as to cut down on long distances covered by people from one centre to the other to either obtain an NRC or a Voter’s Card.
” Time is running out and that most of the people will soon be busy with field work especially those in rural areas and it may not be possible for them to be willing to go back to the registration centres once the exercise comes to an end, ” he said.
And commenting on why ZANIS was not been engage to publicize the registration exercise, the deputy Minister said ECZ should revisit the decision and consider to engaging the department for its expertise considering the serious nature of the assignment.
’’ I do not understand why ECZ omitted the component of publicity through the department of ZANIS when the country is undertaking an important exercise,’’ he said.
Mr. Tembo said the exercise cannot be completed without publicity adding that the low turnout in the registration process is testimony of lack of publicity.
And some people interviewed at Lupala Primary School told ZANIS that
there is need to harmonise the whole process by making sure that the two groups are found at one point as doing so will encourage more people to register
Government has bailed out the Football Association of Zambia (FAZ) ‘s outstanding hotel bills amounting to K50, 000.
The money released to Cresta Golf View hotel were over an unpaid 2011 Chipolopolo camp bill which led to bailiffs acting behalf of the hotel attempting to seize Football House property this morning.
The bailiffs managed to get some equipment from the Licensing Department, reception and Secretary General’s PA’s desk.
This is according to a statement by FAZ Communications manager Nkweto Tembwe, in Lusaka today.
The hotel bill arose after the AFCON2012 Qualifier match between Zambia and Comoros and has remained unpaid by the Ministry of Sports since the match was played.
Mr. Tembwe in the same statement said that following the action of the bailiffs, FAZ, the Ministry of Sports and Hotel management held a series of meetings where the Ministry of Sports acknowledged the outstanding amount and committed an immediate payment of K50,000 (with a balance of K90,000 to be paid out over the coming month).
Cresta Hotel General Manager Fungai Makani regretted the action stressing that lack of communication over the settlement of the amount outstanding and pressure from their holding company to explain it led to the drastic action.
The hotel has since reiterated its commitment to working with both the FAZ and Ministry adding that had they been informed of challenges the ministry was facing, they would not have engaged bailiffs.
There is no doubt that the 2016 budget does contain some very positive policy initiatives that the government intends to pursue but at the same time it has been prepared with the 2016 election in mind and political rather than economic considerations must have influenced the allocation of funds and the type of projects that needed to be prioritized in some instances. The budget looks good on paper in the light of the targeted economic objectives on growth, inflation, deficit, debt levels etc.
In this article, i will briefly outline the positive aspects of the budget as far as their impact on the economy is concerned and thereafter discuss the elephant in the Zambian economy – massive infrastructure programme – which the budget did not address and is likely to negate some of good initiatives in the budget – at least in the next twelve months – as the budget deficit may not go down substantially and might even get worse given that it is election year!
My analysis of the budget is based on the fact that I listened to what the finance Minister was not saying and in reviewing the actual document, i read between the lines so that I give the readers a differentiated interpretation and different angle to the budget. My analysis of the budget will fall into the following categories: diversification, mining, citizen empowerment, employment creation, foreign exchange and kwacha depreciation, public debt, debt policy and infrastructure
Diversification
The budget went to great lengths to put policy initiatives meant to diversify the economy from mining. The targeted areas are agriculture, energy, tourism and manufacturing. In agriculture, the government’s intention of providing technical and financial support to the Livestock and fisheries sub sectors is laudable. The planned provision of disease control measures for livestock and rehabilitation and construction of deep tanks throughout the country is a great initiative. The setting up of a fish fund to provide credit to small scale fish farmers and the building of fish hatcheries in each provinces is also welcome .
In energy sector, the policy of encouraging private sector participation in electricity generation by adjusting tariffs is certainly going to have an impact on availability of electricity. In addition, given all the initiatives and projects in the pipeline that were announced, if they are implemented, this is likely to result in Zambia being a net exporter of energy within a year.
The Tourism sector interventions are so thin that i do not see any major impact in the foreseeable future as the diversification is all premised on the ill conceived national airline as the magic wound. The government majority owned national airline’s costs may even exceed the revenue from the tourism industry. There is a fallacious belief that the national airline is a panacea to Zambia’s tourism sector problems. The other factors like the importance of domestic tourism, the costs of running tourism business, the taxes, licences, the visas etc are ignored. It is clear from the budget presentation that diversification through tourism was not properly thought out got lip service. They should involve private sector stakeholders and find out the practical impediments to tourism growth in Zambia.
Mining
The Minister recognized that mining is still an important sector but we should not just rely on Copper. He pointed out that other minerals like gemstones, diamonds, manganese, gold should be encouraged in order to diversify the mining sub sector. He called upon IDC and ZCCM to work together to exploit opportunities available. This is a good initiative but we should now ensure that Zambian entrepreneurs are involved in mining rather than remain as spectators in their own country.
Citizen empowerment
The government recognizes the importance of empowering Zambians and the interventions like the reservation policy on procurement by public institutions for purchases below K3m being reserved for Zambians. The allocation of K187.5m to CEEC, K199mm to youth programmes, K35.7m women, should all be commended. The only problem is that, in practice there is the lack of transparency and fairness in accessing these funds. There is too much corruption involved and the funds are politicized as the bulk of the money goes to cadres of the ruling party. It is my view that the empowerment policy should be looked at broadly rather than from the finance point of view only but to include the following: requiring foreign investors to partner with Zambians with land and minerals used as contribution in case of mining, skills and technology transfer requirements from foreigners, restriction of certain mundane and easy businesses like restaurants, butcheries bars, etc for Zambians.
Employment
The budget has gone some way to address the unemployment situation in the country and initiatives like the reduction of borrowing by government from the domestic market will help reduce interest rates and help the private sector to borrow for expansion and thereby increase employment. The banning of the importation of edible oil will ensure that we stop exporting jobs but rather create them right here. The preferential procurement from Zambians will also help job creation. The revamping of the cooperative movement and extending it other sectors rather than restricting it to agriculture will certainly help in employment creation. The Cooperative movement needs to be marketed aggressively and explained so that people can participate. As most people especially young people do not understand the concept.
Foreign exchange/Kwacha depreciation
The finance Minister recognized the depreciation of the kwacha as the foremost problem facing the economy. He further elaborated that it has been caused by external factors like the dollar strength, low copper prices and noticeable reduction in portfolio investment inflows. He also recognized the local factors like net low supply of foreign exchange and widening of fiscal deficit but he did not mention low investor confidence in economic management which is local also! The budget, however, does not mention any short term controllable measures in to be implemented in 2016 to improve value of the kwacha. One would have expected announcement of government restrictions non essential imports and suspension of some infrastructure programmes which are done by foreigners who externalize dollars. The suspension of some Capital projects would have addressed three causes of kwacha depreciation which are too much demand by contractors when they are paid, reduced the budget deficit and brought back investor confidence and improved foreign direct investment inflows.
Public Debt
The government has undertaken to reduce public debt especially domestic borrowing in the 2016 budget. This is a welcome move and it is gratifying they have listened and realized the damage that excessive borrowing was doing to the country. The public debt currently stands at $6.3billion foreign and K26.5 billion domestic. I have argued before that our borrowings are excessive but the government and the President have argued that it is below 40% of GDP and within internationally accepted norms! This argument can longer hold water as the 2016 budget has vindicated most of us in that the debt has started suffocating the economy and diverting resources from other sectors including the social sector. The servicing of the total debt including the setting aside for the sinking fund for 2016 is (K7.7billion) K7, 701,062,972 (K7.7billion) which is 14.5% of the total expenditure for 2016. This is higher than the Health budget at 8.3%, the Social protection at 2.4% and Farmer input support and FRA procurement budget at 3.3%! As the kwacha depreciates the share of debt servicing budget will keep on increasing and I will be not surprised that it will start chewing 30% of the budget very soon.
I predicted two months ago that the excessive borrowing will affect us all but some doubted my prediction and criticized me but the results are there for all to see given the high cost living. It is in this vein that i appeal to fellow Zambians on social media and the rest of the country, including the outspoken PF officials such as Mr. Chishimba Kabwili, Mrs Mumbi Phiri, Mr. Sunday Chanda, Mr. Davies Chama, Mr. Amos Chanda etc to learn to respect other people’s professions and try to learn from them and desist from commenting on macro economic issues which are inherently complex,interrelated and which are beyond their competences. The practice of commenting blindly on issues just exposes one’s ignorance because too little knowledge is very dangerous. It is the decision making process of PF leaders at the very top with too little knowledge and understanding of the consequences of critical economic decisions that has messed our economy and not global factors which could have been mitigated against if we had competent managers! Many of us predicted the mess we are in three to four years ago.
Debt policy
The budget’s debt policy section was had very little detail. The finance minister merely said “Government will, therefore, limit domestic borrowing and focus on accessing external financing with lower interest rates and longer repayment periods”. The meaning of this statement is that the Government will no longer borrow Euro bonds because they are now expensive following our credit rating down grade but will approach multi -lateral institutions, which in this case is the International Monetary Fund(IMF).Once the a deal is reached with IMF, it will unlock loans from bi-lateral partners like USA ,UK, Germany, France, Scandinavian countries etc These are the loans that have lower interest rates and longer repayment periods that the minister was referring to. He could not mention the IMF by name in an election year budget! The debt policy did not also mention the issue of setting up an independent Debt Management Office (DMO) made up of professionals to help us manage the debt which is becoming larger by the day. The Debt Management Office’s purpose will be as follows: resource mobilization, debt and risk analysis, management of information systems and settlements.
Infrastructure
The infrastructure budget in 2016 must huge and it has not been fully disclosed in this budget. The road infrastructure alone is (K6.7 billion) K6, 629,938,778 which is 12.5% of the total revenue which is higher than health, defence, social protection and farmer input support! The other infrastructure budgets like creation of districts, hospitals, schools, universities etc are hidden in other budgets and if there will be included as one, it could be K8 billion or more which is over 15% of the budget. It is because of this reason that I call it “a sugar coated election budget”. It is because of this that the ruling PF is confident of winning the election but at great damage to the short term economy. The confidence of PF winning election is infrastructure as the trump card is clearly demonstrated by The Party Secretary General’s recent statement, Mr. Davies Chama, “ We are winning next year’s general election……… we are working on the roads, we are constructing hospitals and schools and this is what the people of Zambia want and not politicking.”
The problem that is being forgotten is that it is the fast track, massive infrastructure projects that have caused the problems we have today of high public debt, depreciating kwacha and consequently the high cost of living! As Zambians, we should ask as to whether this is a price worth paying! To destroy the whole economy just for the purpose of roads! Is this the route others followed to development? The answer is a categorical no! My take is that these projects should have been shelved for now for the sake of the economy and implemented in a sequential and orderly manner with a heavy involvement of Zambians after building their capacity or invited experienced Zambians in the diaspora who have built sophisticated infrastructure in foreign countries to avoid loss of foreign exchange through foreign contractors. They could have certainly waited as nobody is putting a gun to the PF to build a university in Luapula or Western province, create a district in Western province etc In insisting on going ahead with these projects, leaves one to conclude that the motivation is to win election and for person benefits emanating from the contracts for the ruling class.
Recommendations
I still believe that given the dire economic situation we are in and in order to ensure that budget proposals are implemented, I believe it is important that the President gets involved by appointing temporary Czars rather than rely on the civil service bureaucracy for the purpose of coordinating activities especially that some of them cut across different ministries. The critical areas where he should appoint Czars are: Employment, Energy, Import and export, Mining, Infrastructure, Fiscal discipline.
In view of the fact that we need to restore investor confidence in the Zambian economy and remove uncertainty, and we can only restore confidence in our economy with involvement of the IMF as Ghana painfully found out, and it is also a fact the PF administration cannot start negotiating with the IMF before the election, i would recommend that the Government should call an early election say in April, 2016. This will facilitate starting negotiations with the IMF at the earliest opportunity in order to save our economy and before it gets worse. In view of the fact that PF is confident of winning the 2016 election, i guess this proposal should sit well with them and should not be be out of place! It may be suicidal, economically, if we delay and wait to finish the infrastructure projects and for the copper prices to improve before calling the general elections.
I would also advice government to consider setting up a Debt Management Office (DMO), they should also consider postponing some of the infrastructure programmes which will just make the economy worse in the short term by increasing the budget deficit and unlikely to win them more votes. In addition, they should consider setting up an Export credit Guarantee and insurance Scheme in order to promote non traditional exports. In the tourism sector, they should engage the Private sector in the tourism industry and interrogate them about short term and long term measures to boost both domestic and foreign tourism. They should also consider studying how successful countries in African including our neighbours manage their tourism sectors and learn from them.
Conclusion
I am not very optimistic that most of the 2016 budget objectives of: achieving 5.0% GDP growth rate, increasing domestic revenue mobilization to 20.4 %, reducing the budget deficit to 3.8%, maintaining single digit inflation at 7.7%, maintaining international reserves above 4 months of import cover will be achieved given the PF past record of financial indiscipline, their obsession with winning the 2016 election. The PF would need a “capitao” like the IMF to supervise them in order to ensure that the economic benchmarks are achieved. The PF’s mind set is one where political considerations are deemed more important than economic ones and that may be their Achilles heel because most Governments fall because of poor economy.
The writer is a Chartered Accountant by profession and a financial management expert. He has lived in the diaspora in England, South Africa and Botswana for over 25 years. He is an independent and non partisan financial and economic commentator.
Lusaka Dynamos talented teenage striker Conlyde Luchanga is elated to be included in the Zambia squad for Saturday’s 2016 CHAN final round qualifier against Mozambique set for Levy Mwanawasa Stadium.
Coach George Lwandamina on Monday summoned Luchanga who has impressed in his debut Super Division season for the promoted side.
“I feel very great to be part of the national team. It is a dream come true for me,” Luchanga said.
Luchanga, who has scored 8 goals for Dynamos, is set for his debut senior call-up just weeks after Fighton Simukonda handed him an Under-23 call-up for November’s 2015 CAF U23 Cup team selection.
“It’s not by power nor by mighty but by the spirit of the Lord that I was called,” he said.
Luchanga is pledging to work hard.
“I will just continue working very hard to prove my self,” he added.
Mozambique’s have kept faith in the team that served them in the first round ahead of this Saturday’s away game against Zambia in the CHAN qualifiers.
Coach Mano Mano and his charges have spent the last week camped across the border in Nelspruit en route to Ndola to face Zambia in a final round first leg qualifier.
The team includes Luis of Ferroviario Beira who scored four goals The Mamba’s 9-1 aggregate first round win over The Seychelles, three of those in the 5-1 home leg win.
His clubmate and midfielder Reinildo, who scored two goals in the first round, is also set to make the trip to Zambia on Thursday.
Zambia, who have never lost to Mozambique from 15 games, are hoping to end an eight-year absence from the CHAN tournament since winning Bronze at the inaugural tournament in Cote d’Ivoire in 2009.
Mozambique will host Zambia in the final leg on October 24 in Maputo with the winner over both leg qualifying for next January’s finals in Rwanda.
The CHAN is a second tier Africa Cup for domestic league players.
Defenders:Chico, Edmilson e Jeitoso (Fer. Maputo); Gerson (Costa do Sol), Chico II (Liga Desportiva), Norberto (Fer. Nacala) e Cremildo (HCB);
Midfielders: Momed Hagy (Liga Desportiva), Parkim e Ussama (Costa do Sol), Diogo e Sassi (Fer. Maputo), Nelito, Reinildo e Gildo (Fer. Beira), Kambala (HCB); e cinco
Strikers: Isac (Maxaquene), Luís Miquissone e Maninho (Fer. Beira), Lanito (Desp. Maputo) e Nelson (1.º de Maio de Quelimane)
The Immigration Department has launched the Electronic Visa application aimed at providing an expedient and paperless work when acquiring a visa.
Speaking during the launch in Lusaka today, Immigration Department Director General, Moola Milomo says when fully implemented, the e-visa has the potential to enhance monitoring of migrants and tapping of revenue collection for the national treasury.
Mr. Milomo says the online visa will undoubtedly add value to the broader management capacity, adding that not only is the department contributing to the internal security of the country, but also to the sustainable social economic development through revenue collection.
He points out that the Immigration Department has been consistent in its contribution to the national treasury, stating that in the past five years, the department collected seven hundred and eight million, seven hundred and thirty eight thousand kwacha in terms of revenue, adding that what was collected was well above target.
Mr. Milomo states that the Department of Immigration attaches great importance to information technology enhancements that promote efficiency and effectiveness in the delivery of services.
And in a speech read on his behalf by his deputy Colonel Panji Kaunda, Home Affairs Minister Davies Mwila says the benefits of implementing the e-visa facility will include efficient provision of public services, better use of human resources, increased training levels and public service competences.
Mr. Mwila says e-Visa will also offer outreach benefits to visitors and tourists such as easy access to information about foreign nationals, streamlining of visa application processes and many other economic benefits for tourists.
He adds that the Department of Immigration being a public service institution operates in the public trust and must constantly earn trust through the provision of services that are of high quality and more efficient.
Mr Mwila notes that initiatives aimed at minimizing the need for human contact with clients reduces temptation for corruption and thefts of the much needed government resources.
