MALAWIAN MAN CUTS OFF HIS GENITALS TO SELL

“Genitals for Sale” is what seems to be the writing on a Malawian man’s forehead after he cut his luggage to sale to witchdoctors.
Malawi Police confirmed that a man cut off his own penis and testicles with a sharp knife last week.
According to police, Pilirani Lazaro of Dowa is hospitalised at Kamuzu Central Hospital after he cut his genitals which he wanted to sell.
KCH are keeping the genitals and doctors say they could not reattach his genitalia.
“Pilirani Lazaro had indeed severed his own testicles,” a police spokesman for central region John Namalenga said.
Nyasa Times reporter found Lazaro ay on the hospital bed, muttering incomprehensible phrases. “I feel pain all over my body,” he groaned
Issues of cutting genitals have become very common in Malawi .
Mzimba police spokesman Sub Inspector George Kondowe said recently that police arrested four people who attacked Joseph Nyirenda to chop off his genitals with “sharp knives.”
Private body parts of human beings are on a high demand by the witchdoctors and it is believed that people sell the penis and testicles abroad where they fetch a lot of money.
One case of this nature was concluded by the High Court in Blantyre which sentenced Peter Chakuamba to 20 years imprisonment with hard labour for cutting private parts of a fellow man.
Courtesy of Charles Kufa, Nyasa Times

CHINESE OFFICIALS SHOOT, WOUND 13WORKERS AT COLLUM COAL MINE

While officials were working on rescuing miners trapped underground in Chile, in Zambia trigger happy Chinese mine managers were busy shooting at workers at Collum Coal Mine in Sinazongwe District in the Southern Province.

Two Chinese Managers at Collum Coal Mine in Sinazongwe District, Southern Province who allegedly shot 13 miners are still scot free while three alleged master minders of the protest remain in custody. Collum Coal Mine workers on Friday October, 15th 2010 protested over their delayed salaries but two Chinese supervisors opened fire at them using a shotgun hence dotting their bodies with pellets.

As of Saturday more than 24hours after the incident the miners who were admitted at Maamba Hospital still had pellets in embedded in their bodies. Some had as many as nine pellets in their bodies while the doctor was nowhere to be seen. Ward Sianaini of the victims complained that such incidents would not go far because the Chinese officials are in the habit of bribing government officials.

“Even with this situation government will not do anything because the officials (Chinese) say they are above the law because they pay government,” Ward said. However, Sinazongwe District Commissioner Oliver Pelete said justice will prevail and culprits if found wanting will be brought to book.

“I will not say much because the provincial minister has already issued a comment and don’t want to look like I am overriding his authority,” Mr. Pelete said.

And when the DataBank reporter followed the DC and some Chinese officials including one of the mine’s shareholders who had come to visit the patients to the mine, it was discovered that the two alleged shooters were still walking scot free enjoying the nice summer warmth while the three alleged protest ring leaders were in custody.

The DC, mine officials and workers’ representatives went into a meeting that lasted about four hours but still the DC tried to be difficult in issuing a statement.
“I can only confirm that the police officers have recorded a warn and caution statement from the two Chinese managers,” said Mr. Pelete, but when asked about the correct way of doing things whether recording the statements from their premises or the police station, Mr. Pelete said he could not speak on behalf of the police.

Efforts to get a comment from the mine’s shareholder Lui Yao Ping almost proved futile as the DC was protective. However, Mr. Lui confirmed that the matter had been amicably dealt with by all stakeholders but refuted reports of him saying he is above the law.

“We have finalized, all is well, police officials and us as good now…….no no one is above the law, even the president has to respect the law,” he said.

Government speaks out on the shooting
Information Minister and Chief Government spokesperson Lt. Gen. Rev. Ronnie Shikapwasha shocked the country when he bluntly stated that the Chinese governments need no apologies over it because Zambians have been arrested before in that country.
The Minister was responding to some opposition United Party for National Development (UPND) and Patriotic Front (PF) Pact youths who went to lodge in a formal complaint at the Chinese embassy demanding for an apology and subsequent discussions on Zambia’s labour laws with Chinese investors.

The two opposition leaders could however not manage to pitch in their petition because they were manhandled by tens of police officers who were clad in heavy riot kits.

By Brian Mwale.

CUTS INTERNATIONAL ADDS VOICE ON ZAMBIA’S 2011 BUDGET

Despite the Zambian government having increased its national budget from ZMK 16.7trillion to ZMK 20.5trillion kwacha, many stakeholders still have ill feelings about it. Others have described it as an appeasement budget with the 2011 general elections around the corner.

Consumer Unity and Trust Society –CUTS- international has welcomed the 25% increase in The Pay As You Earn –PAYE- threshold in the Friday October 8th 2010 national budget presented to parliament for next year by Finance and National Planning Minister Situmbeko Musokotwane.

CUTS International Zambia centre Executive Board Chairman Love Mutesa says the increase from ZMK 800,000 to ZMK 1,000,000 forms one avenue for easing the burden on consumers.

However, Ambassador Mutesa like many stakeholders is still not satisfied with the increment hence describing it as minimal because of many economic factors like inflation which are very volatile.

“For instance, someone earning ZMK6,000,000-00 gross was subjected to a total PAYE tax of ZMK 1,628,250.15. The new system will entail a total PAYE tax of ZMK1, 553,250.15 representing a mere ZMK75, 000-00 increase in nominal terms. With the projected inflation at 7% for 2011, this means only ZMK70, 000 in real terms. Therefore, as CUTS, we feel this is still a raw-deal and question the so-called relief to workers when only ZMK70, 000-00 is freed as additional purchasing power,” says Ambassador Mutesa.

Infrastructure development
Government has in next year’s budget prioritised infrastructure development as a factor that will contribute to national development. CUTS International feels this is a welcome move under the understanding that a well developed infrastructure provides a number of incentives for business through lowered costs of doing business and accords a widespread supply of goods and services at competitive prices which ultimately benefits the consumer’s welfare.

However the Civil Society for Poverty Reduction (CSPR) Programs Officer William Chilufya feels the move is an appeasement strategy for electorates as government wants to use it as a campaign platform for next year.

The increase in the threshold at which small scale importers are required to engage a clearing agent is equally welcome. This will help address some of the trade facilitation problems by providing them with an opportunity to increase their import volumes and ultimately be able to increase their disposable incomes.

In the electricity sector the CUTS Chief feels the 15% tax scrapping must reflect in the relief to consumers and at least a stabilization of the domestic electricity tariffs.
“ It will certainly be unfair for power utility companies to upward adjust their tariffs in the short to medium term. This relief to power utilities on imported electricity should trickle down to individual consumers, notes Ambassador Mutesa.

Budget deficit and economic diversification
“On the budget deficit we wish to stress that the trade deficit, in itself, is not bad outcome looking at the stage of Zambia’s development projectile. It is an indication that Zambia is importing more than what it is exporting. What matters is the composition of the imports of which the majority for Zambia, as a developing country, must be capital equipment, a source of medium to long term national economic growth” he notes.

Ambassador Mutesa reveals that the source of worry at CUTS is the type of machinery of which, at the moment, the bulk is mining equipment for digging the country and not those meant for the manufacturing industries. He says such types of machinery do not provide a bed for long term sustained growth but rather end up as a nuisance. He has since called upon government to ensure that the forgone base for future development is compensated by increasing the tax rates and collections from the mining companies and investing in making the manufacturing sector attractive in Zambia.

Zambia must seriously look at diversifying the economy. Strike the iron while it is still hot alternatively make hay while the sun shines. It is in this respect that CUTS supports calls for windfall taxes. If this is done, we at CUTS are sure that consumers will be the major beneficiaries from these developments and the economic diversification that we all want to see develop will not just be a pipe dream.

Following calls for diversification of the economy the Zambian government has in the past two farming seasons recorded bumper harvests with 2008/2009 recording 1.9million metric tonnes with 2009/2010 recording 2.7million metric tonnes of maize. However the calls are that only maize and wheat are recording bumper harvests while other crops have not been prioritized.

By Brian Mwale.

BRAZILIAN INVESTMENT UNVEILED IN ZAMBIA

As concerns regarding the Zambian President Rupiah Banda’s perceived fruitless trips mount, some huge foreign investments have already starting flowing in much to the disappointment of his critiques. Pledges made to the country are now coming to light with visits of high profile presidents and ministers showing fruits.

Brazilian investors have shown commitment in injecting 1billion US dollars in the ARM valley Konkola North Mining project. The investment comes in the wake of that country’s President Luis Inacio Lula Da Silver’s visit last July.
The president was in Zambia with an entourage of businessmen looking at tapping into the untapped investment opportunities. The country’s investment promoters Zambia Development Agency (ZDA) has expressed delight with the interest shown so far.

ZDA Director Andrew Chipwende tells that DataBank that the investment is a good development for the country as it will contribute to economic development through revenue collection and job creation. He further reveals other areas of interest by Brazilian investors as development of the integrated sugar-ethanol and co-generation of power project in Luena district in the Western Province of Zambia.

“Technocrats in the Ministry of Agriculture and ZDA are closely working with Brazil in areas of ethanol production as that country has perfected this field hence Zambia stands a better chance of benefiting from this,” says Mr. Chipwende.

With the country moving towards the digital revolution deadline of 2015, ZDA is also happy that Brazil is also interested in injecting some finances in the transmission technology which will see digital Television sets and others. On the other hand the Brazilian government has confirmed its new investment partnership with Zambia. Brazilian Ambassador to Zambia Josal Luiz Pellegrino tells the Data Bank that his government has consolidated its agreements to assist Zambia in utilizing bio-fuels. He says a delegation has since been to Zambia to ascertain the needs of the southern African country in development of bio-fuel structure.

“We want to see Zambia emerge from its energy crisis the same way our country did years ago through the utilization of bio-fuels. In order to do so Zambia can maximize on sugar and plants like Jatropha,” reveals Mr. Pellegrino.

Fuel challenges in Zambia
Zambia is faced with a challenge of high fuel prices which have continued skyrocketing. Various stakeholders have complained that this status quo is a major contributing factor to the high cost of doing business in the country.
A shift from conversional petroleum products to bio-fuel is a call that many civil society organisations have been supporting because of its cheaper production mechanisms and clean nature which does not pollute the air.

Investment in transport
The Brazilian government is also looking at investing in bus body repairs for huge buses like Marcoplo as a way of reviving them after accidents. ZDA Director Andrew Chipwende has stated that the plant will be an establishment of its kind in this part of Africa as South Africa is the only one assembling.

By Brian Mwale

COMESA WOOS US INVESTORS

COMESA Secretary General, Sindiso Ngwenya, and ACTESA CEO, Cris Muyunda, have made earnest appeals to US investors to invest in Africa. Mr. Ngwenya and Dr. Muyunda were speaking separately in Washington DC and Kansas City in the USA at the ongoing AGOA 2010 Summit.
Mr. Ngwenya said Africa has potential to produce enough food for internal needs and international trade. During a panel presentation entitled, ‘Food Security: opportunities for Africa,’ Mr. Ngwenya said the African market provided a huge opportunity for growth in agricultural development and trade.
“We can produce enough for our needs and for the rest of the world as long as all challenges facing the farmers are dealt with, when farming is considered a business and when farmers get the necessary support from their respective governments and private sector,” he said.
Quoting the Mckinsey and Company 2010 report, “Lions on the move”, Mr. Ngwenya said in 20 years, Africa’s collective GDP would be $2.6 trillion, its consumer spending $1.4 trillion, the number of Africans of working age would be 1.1 billion, and 50% of Africans would be living in cities by 2030, showing the huge potential of the continent.
He further said regional integration through the tripartite COMESA, EAC and SADC agreement had created a bigger market which should be exploited.
Mr. Ngwenya said COMESA was addressing the challenges to agricultural development like infrastructure, technology and market related constraints through the Comprehensive Africa Agriculture Development Programme (CAADP).
He said the way forward was to embrace new innovations and technologies that would efficiently support farming practices for higher and better quality yields, citing the continent’s huge irrigation potential.
Meanwhile, Alliance for Commodity Trade in Eastern and Southern Africa (ACTESA) CEO, Cris Muyunda told American investors it was time to ‘board the plane on flight Africa 1.’
Addressing the AGOA Forum in Kansas City on August 5, during the main Business Roundtable discussion on trading and investing successfully in Africa, Dr. Muyunda, who quoted from the Barrons’s business and financial weekly and Africain Invester, stated that it is time to invest in the “final frontier – Africa” and that “Africa is richer than you think”, respectively, told the forum that key areas ready for investment included agro-processing, warehousing and various commodities including, roots and tubers, oil seeds, livestock and fisheries, forest and natural products, tree and plantation crops and agriculture inputs.
He thanked CARGILL and Pioneer, companies that were already investing in Africa and urged others to emulate them.
“Those remaining, you do have in your hands the boarding card for flight Africa 1, it’s time to board the plane,” he said to thunderous applause.
Dr. Muyunda said ACTESA provided a platform for investors to interact with policy makers in trade and investment.
Meanwhile, Dr. Muyunda was among two dozen senior African leaders who met President Barak Obama at a moving and memorable ceremony at the White House in Washington DC. The occasion was specifically reserved for Africa's top leaders visiting America during the AGOA Forum week.
Among the other leaders in the delegation to the White House were Zambian Minister of Commerce, Trade and Industry, Hon. Felix Mutati, AU Vice Chair, His Excellency Erastus Mwencha, Mauritian Minister of Foreign Affairs, Dr. Arvin Boolel, former Namibian Prime Minister Hage Geingob, EAC Secretary General, Ambassador Juma Mwapachu, Burundese Agriculture Minister and other senior leaders. The US President met the African leaders in the presence of US Trade Representative Ambassador, Ron Kirk.
Earlier during the day, the senior African officials were part of the AGOA meeting that was addressed by US Secretary of State, Hillary Clinton.
The 2010 AGOA Forum was held in two states, Washington and Kansas city. The Washington forum brought together senior US administration officials, African government ministers and senior officials, the AU, RECs, US and African businesses.
The second part of the forum in Kansas City focused on agribusiness, meetings with US business leaders and site visits to US local business. Participants had opportunities to engage with US companies in order to attract investors.
Zambia will tentatively host the next AGOA Forum in 2011.

Courtesy of ACTESA

KENYAN AIRWAYS: FROM THE PRIDE TO THE SHAME OF AFRICA

What many Africans look up to as one of the most successful airlines still under government operations is in fact a shame for Africa to boast of. It is an open secret for frequent travelers that while Kenyan Airways plays a cardinal role in Africa’s aviation industry; the service is horrible and leaves much to be desired.

Flight cancellations, delays and lies about pilots being sick are a daily routine for Kenyan Airways an airline that was once the Pride of Africa.
Passengers have continued complaining but nothing positive seems to come out of this.
While we appreciate the role that the airline plays in africa’s international trade and networking, its operations leave much to be desired.

On July 29, 2010 while connecting from Dar-es-Salaam, Tanzania to Lusaka, Zambia vis Nairobi Kenya, I was made to wait for more than two hours in the name of the pilot being sick and officials were looking for a replacement who would arrive in twenty minutes time which ended up being two hours.
September 5, 2010 while waiting for a plane going into Lilongwe whose flight was scheduled for 11:15hrs world from the Kenyan officials was that the flight would be delayed because the plane had apparently over fueled hence causing a malfunction on one engine forcing the pilots to heard back to Nairobi. This saw tens of people being affected.
Fortunately for us heading for Lilongwe an arrangement was made with bumpy Air Malawi and sad for others who had to wait for the midnight flight. As though that was not enough, flying from Malawi was challenging as the pilot was again reported to be sick on Wednesday September 8th forcing the cancellation of the flight to the next day which saw Lusaka bound passengers having their one hour thirty minutes flight being prolonged by first going to Nairobi and waiting for four hours before connecting.
These are just but a few memorable incidents of the many complaints that many people have raised against this airline whose Corporate Affairs department seems to be sleeping as no official statement or apology is issued apart from the cliché now turned Kenyan Airline Daily anthem of “We would like to apologize for any inconveniences caused.”
Reports of strikes and lack of motivating factors for workers have been heard but nothing much seems to be done to turn tables.
Jomo Kenyatta International Airport in Niarobi is one of the busiest airports in Africa putting Kenya on the map for international trade and connections, however, the operations of the National flag carrier are what are making Africans like us now start felling ashamed.
What is need is a complete over haul of the airline and put some people that are able to perform. In as much as the aviation industry is very costly and involving, the need for better players and managers are of the essence.
As the world is now turned into a global village and the need for networking among professionals from various nations and sectors of the economy, I can not do away without Kenyan Airlines as it seems to be monopolizing certain routes hence need for improvement in service delivery.
Free advice in running a service based business “don’t take more than what you can carry or manage.” Kenyan Airway needs to enhance its network with its African and overseas partners in the routes instead of getting a huge client base which it can’t manage.

BUFFETT AND GATES ON CHINESE MISSION

(FT) -- Having persuaded many of their billionaire peers in the U.S. to give away chunks of money, Bill Gates and Warren Buffett are traveling to China to sell newly minted Chinese tycoons on the value of philanthropy.

But the fear of being seduced into giving up part of their fortunes might have scared some of the tycoons away from a dinner that the crusading U.S. billionaires are hosting in Beijing this month.

The exclusive list of attendees includes Zhang Xin, CEO of Chinese SOHO China, the real estate developer, and Wang Chuanfu, head of BYD, the car and battery maker, who counts Buffett as an investor.

But according to the Chinese media, the head of the Bill and Melinda Gates Foundation in Beijing is worried that some invited guests might be reluctant to come.

"A small number of people declined the invitation to attend, while many of the invitees called to ask whether they would be required to pledge a donation at the dinner," the director of the foundation's China program, Ray Yip, was quoted as saying.

"Their biggest fear is being embarrassed and put on the spot." Yip's spokesperson did not dispute his comments, carried on a major news portal and the Economic Observer, when contacted on Friday.

Yip said the dinner was intended to allow Gates and Buffett to get to know friends and exchange ideas about partners interested in charity, not to convince Chinese tycoons to make donations.

Gates and Buffett might send out an explanatory letter reassuring their guests that they would not be put on the spot in the way their U.S. counterparts had been, according to Chinese media reports.

The pair's initiative, launched in the U.S. in June, has already secured support from many wealthy American individuals and their families.

Rupert Hoogewerf, who compiles the Hurun Report, China's rich list, said many Chinese remained sceptical of the motivations of people donating money.

"The most important stakeholder in all charities in China is always the government, and there is usually a suspicion that a lot of donations are not pure philanthropy but rather influence-buying by wealthy business people."

But Hoogewerf was optimistic about the U.S. pair's work in China, especially after the 2008 Sichuan earthquake, which changed the priorities of many Chinese entrepreneurs.

"Bill Gates and Warren Buffett are idolised by Chinese entrepreneurs," he said. "Their coming out here is likely to kickstart philanthropy in China."
By Jamil Anderlini, FT.com

ZAMBIA RANKED A-PLUS INVESTMENT DESTINATION

Despite the increasing cost of doing business in Zambia, some international firms like SAFAL Group of companies is happy with the investment climate the Southern African nation provides.
An international Investments firm has ranked Zambia as an A-Plus investment destination.
SAFAL group to which SAFINTRA Zambia local Steel is a part has identified Zambia as an investment hub in Southern Africa because of its conducive investment climate.
SAFINTRA Zambia Limited Director Ashok Kumar Sood says this has seen the group of companies intensifying plans of setting up a nail and terrace manufacturing plant in Zambia. He says his firm is also looking at increasing its 5million US Dollars investment in Zambia to five fold in the next five years.
The SAFINTRA Director also reveals that his firm has been sourcing for funds from various financial institutions.

“SAFAL has borrowed some finances from the International Finance Corporation –IFC- which is a member of the World Bank as part of its investment strategy in many nations, but as SAFINTRA we have borrowed some money from Stanbic Bank Zambia” says Mr. Sood.
Meanwhile Mr. Sood has appealed to the Zambian government to consider standardizing the sector. He says introducing standards will protect consumers from exploitation.
Mr. Sood says government should take a leaf from Kenya and Uganda which have an effective standards system. Mr. Sood further notes that he has since made a recommendation to the Zambia Bureau of Standards –ZABS- for the matter.

“I have submitted some papers on how standardization has been working for countries like Kenya which I feel would work well for Zambia……..if this happens many firms will be looking at providing quality goods and not compete on prices,” adds Mr. Sood.
He was speaking during a conducted media tour of the firm in Lusaka today.
By Brian Mwale.

MMD PRESIDENTIAL HOPEFUL MANHANDLED BY PARTY CADRES AS MUVI TV NEWS CREW GETS DEATH THREATS

An effort aimed at paying respect to the deceased found former Finance Minister and MMD Chilanga Member of Parliament Ngandu Magande in a physical fiasco with angray cadres turning the mourning house into a fighting zone.
Movement for Multi Party Democracy –MMD- cadres in Lusaka has physically manhandled the party’s presidential hopeful Ngandu Magande when he visited late Mpulungu Member of Parliament Lameck Chibombamilimo’s house of mourning.
Mr. Magande who is Chilanga Member of Parliament says he was blocked from entering the yard by cadres who were chanting funeral songs outside Mr. Chibombamilimo’s premises.

He says his jacket has been torn and cell phone stolen from him.
Mr. Magande has attributed the fiasco to certain top party officials who are jittery that he will take over national leadership.

And efforts to get a comment from MMD Lusaka Province Chairperson William Banda who was at the scene proved futile as he was heavily protected by the cadres.
And MMD Lusaka Central Youth Chairman Chilekwa Munkonge who was also part of Mr. Banda’s entourage refused to comment despite having approached the Muvi TV Crew as he stated that it was in his constituency.

“How can I help you? You are in my constituency, I am not aware about any incident her,” said Mr. Munkonge before he moved away straight to his car and drove off.
Meanwhile, a three man Muvi TV Crew was issued with death threats should pictures of MMD Cadres singing in buses air on the TV station’s news bulletins.
A grey haired MMD Cadre who emerged from Mr. William Banda’s car threatened to grab the camera and ordered the Muvi TV cameraman to give him the tape.

However, when he was told that the camera was digital and did not use any tape, the man said he knows where to find the crew and that politics is about life and death and he will deal with them should they report about the incident.
“I know all of you and where you are found……if you run anything on Muvi TV tomorrow I know how to get to you, politics is about life and death,” threatened the old man.
The crew was saved by another cadre who was civil in his dealings.
Police officers stationed at the funeral house watched helplessly as the MUVI TV crew was harassed despite them being a meter away from the scene.

GOVERNMENT CONCERNED WITH AUDITOR GENERAL’S REPORT ON RDA

Reports on misappropriation of funds in RDA as shown in the Auditor General’s report is worrisome, but should not affect infrastructure development. With this status quo, the Zambian government has engaged cooperating partners to study the report together.

President Rupiah Banda has disclosed that Government is studying the Auditor General’s report on the reported gross misappropriation of public funds at the Road Development Agency (RDA).President Banda also revealed that Government is discussing the report with cooperating partners and the Auditor General’s Office with the urgency it deserved so that it does not become prone to ridicule. Mr. Banda said the matter surrounding the RDA should not stop the country from developing its infrastructure.

President Banda was answering questions from Journalists shortly before he left for France where he is scheduled to attend the France- Africa summit. “Government is studying the AG RDA report and we are discussing the report before it becomes prone to ridicule,” the President said.

The Auditor General’s report has revealed huge misappropriation of public funds at the RDA. Meanwhile, President Banda has left for Nice , France where he is going to attend the 25th France -African two-day Summit . The presidential plane carrying Mr. Banda left at the Lusaka International Airport at exactly 07-25 hours local time.
Mr. Banda who will be among other African Heads of States disclosed that Zambia is likely to benefit from France by way of accessing credit for the construction of the country’s infrastructure.

Mr. Banda observed that though Zambia was not colonised by the French government, he expressed happiness that there was room for Zambia to woo French investors to come and invest in the country. He said Zambia and that country enjoys a warm and cordial relationship that has existed for many years ago. The Head of State paid gratitude to France for the services rendered during the hospitalization of the late president (Dr Mwanawasa) in that country and the transportation of his body to Zambia after his death.

“ As I go to France, I would like to thank the president of France for his efforts during the illness of our beloved president the late Dr. Mwanawasa and subsequent death and flowing Dr. Mwanawasa’s body home (to Zambia). Mr. Banda is accompanied toFrance by Foreign Affairs Minister Kabinga Pande, Energy Minister Kenneth Konga, Finance and National Planning Deputy Minister Chileshe Kapwepwe and Southern Province Minister Daniel Munkombwe and other senior government officials.

President Banda was seen off at the airport by Vice President George Kunda, Defence Minster Kalombo Mwansa, Home Affairs Minister Mkhondo Lungu, Secretary to the Cabinet Dr. Joshua Kanganja , Chief Government Spokesperson Ronnie Shikapwasha, Sports Minister Kenneth Chipungu, Lands Minister Gladys Lundwe, Works and Supply Minister Mike Mulongoti, Lusaka Mayor Robert Chikwelete and senior government officials.

The two-day summit which starts on Monday is a gathering aimed at strengthening ties between African countries and France .
The last summit was attended by Late republican President Dr Levy Mwanawasa in 2008. France which is expected to take over presidency of the G-12 is determined to understand the needs of African countries. France ’s policy is to open itself to all African countries whether or not they are its former colonies.
ZANIS

ESTHER “THE AFRICAN KILLER BEE STINGS” DUDA

Zambian female boxing sensation Esther Phiri has proved her new title by adding another international title to her name through a ten ring stinging on Brazilian born Duda Yankovich.

Esther Phiri punished title holder champion in recess Duda Yankovich this evening to lift the WIBA welterweight belt at Mulungushi International conference Centre in Lusaka. Esther dominated the ten round bout to record a win via a unanimous point’s decision over the Brazilian-Serb whose last fight was in June last year.
Duda has not been active in boxing owing to a nose injury. Esther relentless punished Duda who seemed to be under pressure by holding in most of the rounds. The 33year old She Brazilian boxer also kept on receiving warnings from the referee for hitting Phiri on the back of the head and at some point using an elbow which also saw her loose some points.

Esther’s stance in this evening’s fight showed signs of steadiness following her stint in Miami to over come the tough challenges she faced from Terri Blair in a WIBA welterweight title elimination bout at the same venue last November.
Despite the well publicized scolongingo punch, Esther failed to unleash it although she put up a good fight by over loading a whole lot of punches on Duda’s face. Duda also had little to offer in the counter punch with air shots, holding and slapping the hallmark of her display throughout against Esther.

Duda who jetted in the country full of promises announced her interest for a rematch stating that her long absence from the ring made her loose some focus.
“Esther is a good fighter and I congratulate her for putting up a splendid fight….I would like a rematch because I felt I lost because I had stayed away from the ring for too long so this was like a warm up for me,” said Duda.
She however expressed disappointment in Esther for calling her an old lady.
“I am not just happy with Esther’s sentiments that I am an old woman, I would want to see her fight for long and get to my level at my age,” added Duda.

On the other hand the 23year old Zambian boxer stated that boxing is about using one’s head and not bulging muscles.
“I showed today that boxing is about using your head and not about one having muscles,” Esther said.
In the supporting bouts , Kenneth Kanyanta stopped his Kenyan opponent Twalib Mubiri through a technical knock out in the third round to return his Africa Boxing Union Battamweight belt.
Isaiah Chilufya beat Pathias Kambemba on split points decision in a non title fight while Innocent Kalamashi beat Floyd Chongo by a technical knock out in the third round.

By Brian Mwale.

AIR INDIA JET CRASH INVESTIGATION BEGINS IN MANGALORE

An investigation into the cause of the crash of a passenger jet at Mangalore's Bajpe airport that left 158 people dead is under way. Indian officials say there were just eight survivors from 166 passengers and crew on board Air India Express Flight 812 from Dubai.

The Boeing 737 overshot the airport's hilltop runway as it tried to land and burst into flames in the valley beyond. Indian Aviation Minister Praful Patel says he feels "morally responsible".
ANALYSIS
Mangalore airport has been built on a plateau on top of a hill, ending in a sharp drop leading into a deep gorge. Although the runway length is long enough to operate aircraft like the Boeing 737, if a pilot miscalculates the height and distance at which to land, he could be in trouble.

The Air India Express aircraft was operated by a two-member crew, an Indian and a Serbian national who was in command. Many Indian pilots have complained that foreign pilots are not subject to rigorous checks and some have had problems in communicating with their Indian counterparts.
Pilots also complain that they are overworked and not given enough time off.
But much of the focus will also be on Air India. Many believe it is badly managed by the government and plagued with political interference.
Shadow cast on India's air record
The plane's data and voice "black box" recorders have yet to be found.
All the passengers on the flight were Indian nationals, with many returning from jobs in the Gulf to visit their families, says the BBC's Sanjoy Majumder in Delhi. There were up to 20 children on board, our correspondent adds.
The survivors, some of them severely burned, are being treated in hospital in Mangalore, a southern port city.

"As head of the civil aviation family I feel very saddened and a great sense of anguish," the civil aviation minister told reporters in Delhi after briefing Prime Minister Manmohan Singh on the crash.
"I also feel personally morally responsible that such a sad and tragic incident has taken place."

The airline said the plane had overshot the runway as it came into land at about 0600 (0030 GMT) and crashed into a wooded valley.
Light rain was reported to be falling in the area at the time of the crash but the head of the Indian airport authority, VP Agarwal, said visibility was not a problem. He said the pilot had given no distress call to the control tower.
Mangalore's airport lies on top of a hill with steep drops at the end of each of its two runways. One of the runways was extended in 2006 to accommodate larger planes like the Boeing 737.

Analysts say the position of Mangalore's runways poses challenges for pilots, but the secretary of India's Civil Aviation Ministry, M Madhavan Nambiar, told reporters: "This runway has been in operation fully from 2006... and I would like to emphasise that from 2006 there have been over 32,000 landings in this Mangalore runway."
He added that the Boeing 737 was a fairly new aircraft and that both pilots had experience of landing at Mangalore.
'I just jumped'
Speaking to Indian TV from his hospital bed, survivor Umer Farooq said he heard a loud thud as the plane touched down.
"Then the plane veered off toward some trees on the side and then the cabin filled with smoke. I got caught in some cables but managed to scramble out," he said.
Mr Farooq was being treated for burns to his arms, legs, and face.
Another survivor, KP Manikutty, said the landing had at first appeared to be smooth and then the plane had crashed with no warning.

Plane crash survivor: "It caught fire and we fell out"
"Immediately on touching the ground, the aircraft jerked and in a few moments hit something," he said.
"Then it split in the middle and caught fire. I just jumped from the gap," he added.
Air India Express began operations about five years ago as an offshoot of the state-run Air India.

Its Boeing 737-800 jet that crashed was less than three years old.
India's air safety record has been good in the past decade, despite a rapid increase in the number of private airlines and air travel in the country.
The last major crash happened in the city of Patna in July 2000, killing at least 50 people.
The recent months have seen a number of planes crushing with the Libya accident only having an eight year old survivor while the Polish plane crash claimed the lives of the President and his wife, army officials and seniors government officials like the Bank Governor on Russian soil.
BBC.

THAI PROTESTERS DEFY ORDERS TO LEAVE THEIR BANGKOK CAMP

Anti-government protesters in Bangkok have defied orders to leave their fortified camp in the Thai capital.

The protesters - many of them women - continued to clap and cheer speakers on stage in the centre of their vast camp as a deadline passed. Soldiers have been shooting live rounds to keep protesters at a distance as one government minister said the operation to "seal the area" would continue. Violence since Thursday has left 36 dead, and some 250 injured. Renegade Thai general Khattiya Sawasdipol died on Monday, five days after being shot as he spoke to reporters about his backing for the protest movement.

The government says it will talk to the protesters as long as they show "sincerity" by leaving their camp. The protest leaders, for their part, have offered UN-mediated talks on condition the government pulls back its troops.

'Don't be afraid'
Loudspeakers, TV announcements and mobile phone messages were used to warn the protesters - particularly women, children and the elderly - they should leave by 1500 (0800 GMT).
The government offered free transportation home for those who left, and warned that the area was not safe and anyone who stayed could face up to two years in prison.
But few of the 5,000 remaining protesters appeared to heed the call.
The BBC's Rachel Harvey, in the protesters' camp, said that as the deadline passed speeches were still being given and people - the majority of them women - were clapping and cheering them on. We will stay here persistently. And we'll ask (tell) every people don't be afraid. Just sit still and stand still here. And don't fight back. And if they would like to kill us, let them kill us," protest leader Weng Tojirakarn told demonstrators. A group of more than 300 people who sought refuge in a nearby temple have told volunteers there that they do not trust the government's offer of safe passage and do not dare to leave, the BBC was told.
Satit Wonghnongtaey, a minister attached to the prime minister's office, said the government would not back down in its attempt "to tighten the seal around the protest area".

"We would like to urge fellow citizens to be careful and protect themselves," he said. The BBC's Chris Hogg is out on the streets of Bangkok and says the situation remains very tense.

He says Thai soldiers are pursuing a policy of containment by fire, shooting live rounds towards the encampment in an effort to keep protesters at a safe distance from them.
There was fresh fighting along a street of upmarket hotels overnight, which saw the first death among the soldiers.
Guests at one of the hotels, the Dusit Thani, were rushed from their rooms into the building's basement after gunfire and explosions shook the area.
A state of emergency has now been declared in 22 provinces across the country - mostly in the protesters' northern heartlands - in a bid to stop more demonstrators heading to the capital.
Protests have spread outside the capital with a military bus set afire in the northern city of Chiang Mai and demonstrations in two north-eastern towns in defiance of a government ban.
Prime Minister Abhisit Vejjajiva has declared Monday and Tuesday as public holidays and delayed the start of Bangkok's school term, but a planned curfew was cancelled.
Many of the protesters, called red-shirts after the colour they have adopted, are from poor rural areas in northern Thailand where support is still strong for former Prime Minister Thaksin Shinawatra, who was ousted in a 2006 coup.
He is living abroad to avoid a jail term on a corruption conviction.
The protesters say the current government is illegitimate, having come to power in a parliamentary vote after a pro-Thaksin government was forced to step down in December 2008 by a Constitutional Court ruling that it had committed electoral fraud.
________________________________________
Are you in Thailand? What is your reaction to what is happening in the capital right now? What is the best way out of the conflict? Send us your views using the form below.

Courtesy BBC News.

RB’S “PUPPY” CHAINED DURING MUFUMBWE BY ELECTIONS

“Don’t let my puppy out, keep it indoors until the voting period in Mufumbwe closes.”

This seemed to be the situation in the recently held Mufumbwe by elections after opposition United Party for National Development (UPND) President Hakainde Hichilema was forced to stay indoors in his room at some lodge during the voting time.
The opposition leader who Zambian President Rupiah Banda calls his puppy was told that his presence in the polling stations would steer further violence which has left many cadres both from the opposition and ruling party with serious life long scars.
Mr. Hichilema’s camp accused the police of placing their leader under illegal house arrest. However acting police service spokesperson Moses Suwali who was on the ground in Mufumbwe says the police has no power to place any one under house arrest. He has stated that the move was just meant to prevent the opposition leader from going closer to any polling station during voting as it was tantamount to indirect campaign.
Sleazy tricks by the UPND leader to dodge the police on claims that he was in the area as an election observer were not convincing enough hence he had no option but stay indoors as the place was heavily guarded by armed police officers.
The puppy was in chains through out while the father (President Banda) was in Lusaka anxiously waiting to hear his candidate Mulonda Muzungu take the day, unfortunately that was not the case as amidst heavy tension and violence in the two camps the UPND carried the day.
Various stakeholders have described the violence in Mufumbwe as barbaric, ancient and un-Zambian. Others have stated that the President who is the father of the nation should not sink so low to start trivializing politics through personal attacks.
Campaign period
While Mufumbwe situated in the North Western province of Zambia faces serious challenges of poor road networks, lack of health facilities and serious unemployment among the youth, politicians were busy talking about each others looks at demonizing each other during campaigns at the expense of serious issues.
Marcopolo buses carrying hundreds of blood thirsty cadres from both the opposition and ruling parties travelled from Lusaka and Copperbelt provinces to tear up Mufumbwe and anything that blocked there way including the Inspector General of Police who could not contain the pressure put on him by the cadres.
Mr. Kabonde who is the top dog in Zambia’s police service looked like a simple police officer straight from school in Lilayi scared for his life when confronted by hungry wolf like carders who broke wind screens of cars at the police post in full view of his watchful eyes but powerless body.
He looked like a toothless bull dog compared to late Super Cop Wazakaza Nguni who was Lusaka province Commanding Officer who feared no one and nothing.
By Brian Mwale.

STANCHART ZAMBIA LAUNCHES US DOLLAR DEBIT CARD

As competition continues growing in the Zambian banking sector, many institutions are now looking at pulling sharper thans on others by improving on service customer needs through launch of products and services that have never been. Stanchart one of the leading Zambian banks now looks at launching a US Dollar debit card on the market.

Standard Chartered Bank Zambia has introduced another first on the market – the US Dollar Debit Card which will be issued on the US Dollar Account and can be used worldwide at over 1 million Visa branded ATMs and any Points of Sale terminal.

The US Dollar Debit Card will enable the customer to withdraw cash from their Dollar Account 24 hours a day, any time, anywhere. Benefits accrued include access to the account with local withdrawals accrued in Kwacha and withdrawals outside Zambia will be in respective currencies.

Customers will also enjoy the benefit of Internet and Points of Sale transactions to purchase products and services at Visa branded terminals, both locally and internationally. US Dollar Debit Card holders will also enjoy insurance cover for fraud, ATM cash robbery, purchase protection and personal accident death only. The US Debit Card will be issued to customers at no cost. Commenting on the latest product launch, Standard Chartered Bank Zambia Plc Managing Director, Mrs. Mizinga Melu, reiterated the banks move to meet customer needs.

“We are very excited about the US Dollar Debit Card and the greatly enhanced service and convenience it offers to our customer.” She says. We differentiate our Brand in Africa through our ability to leverage on our international expertise and product capabilities to introduce innovative services into our African markets. The launch of the US Dollar Debit Card is yet another example of this competitive advantage, and further evidence that we are continuing to invest heavily in our African franchises.”

Meanwhile Stanchart Zambia Head of Consumer Banking Mr. Ralph Watungwa further adds that the US Dollar Debit Card is the latest in a list of ‘alternative banking channels’ introduced by Standard Chartered Bank in Zambia.

“We are committed to providing world class and relevant products and services to all our customers. The US Dollar Debit Card empowers all Zambians and provides a unique opportunity for all our customers to access their financial services and transact “any time, any where,” says Mr. Watungwa.

By Brian Mwale.

STANCHART ZAMBIA TO INVEST US$ 75MILLION TOWARD AGRICULTURE SUPPORT

Agriculture has been regarded as a major sector to be used in Zambia’s diversification program which banks like Stanchart are now looking at supporting its growth through huge investments.

Stanchart Zambia Managing Director Mizinga Melu says her bank is this year planning to spend US$ 75million in support of the country’s agriculture sector. Mrs. Melu says this is because her bank considers agriculture as an important economic contributor hence needs to be supported. She says her bank has in this vain extended its support to the school of Agriculture and Natural Resources at Kabwe’s Mulungushi University as a sign of support to its growth.

“As Stanchart we are also supporting students’ development through provision of internship to two students and skills to others regarding agriculture business development,” Mrs. Melu says. And Mulungushi University Vice Chancellor Professor Vernon Chinene says the partnership will help in strengthening the relationship between the two institutions. Professor Chinene has expressed gratitude with the MoU saying it will help students understand how to access finance for agriculture proposals.

By Brian Mwale.

ZESCO SIGNS US$ 100 UPGRADE CONTRACT

After being castigated by many people and stakeholders regarding its service provision, ZESCO now looks at El-Sewed of Egypt to aid in improving on service delivery through old substations upgrade.

An effective provision of electricity from the generating point to consumers has been a major challenge in Zambia as many people are subjected to heavy load shedding despite settling their bills on time.
Zambia’s power supply firm Zambia Electricity Supply Corporation –ZESCO- has attributed this to lack of financial muscle to upgrade the existing old infrastructure and machinery.
ZESCO has in this vain signed a US$ 100 million project with an Egyptian Firm El-Sewed to improve its services through existing substation and pylons upgrades.
Speaking during the signing ceremony ZESCO Acting Managing Director Ernest Mupwaya says the project has come at the right time when the nation is entangled in a power crisis and faced with a huge power deficit.
Mr. Mupwaya has further stated that vandalism has adversely affected the company’s huge investments in various parts of the country.
“Vandalism has remained a major challenge that ZESCO is faced with as we are forced to replace vandalized equipment which also comes at a greater cost,” Mr. Mupwaya said.
And El-Sewed Managing Director Khaled Samir is confident of more jobs being created as a result of this project.
“The US$ 100million project will see a number of locals being employed in areas where the projects will be implemented….this is good for economic development of the nation as it will translate into more households having an income,” said Mr. Samir.
Meanwhile with the huge power deficits that the country faces, Energy Deputy Minister Lubinda Immasiku reiterates government’s commitment to developing the energy sector to match economic development.
ZESCO to invest more in expansion projects
ZESCO Board CHAIRMAN Kwalela Lamaswala says the power utility company is planning on investing further in the hydro power generation as it is a vital economic driver. Mr. Lamaswala says ZESCO is this year planning to invest 400million US Dollars in the Kariba North Bank power project and a further 200billion kwacha on various other projects.
“Our huge investment in the hydro plant is at enhancing the company’s operations following the Key Performance Indicator (KPIs) that were given to us by the Energy Regulation Board (ERB),” says Mr. Lamaswala.
Background
ZESCO is working on modalities to increase electricity generation capacity and access following the US$75 million loan obtained from the World Bank meant for a number of projects in some parts of Southern, Lusaka and Copperbelt Province, to improve access to electricity.
ZESCO Limited has also proposed to increase electricity tariffs for 2010/11 by 36 per cent in line with the roadmap to reach cost-reflective levels.
“Zesco’s current tariffs are still far below the cost-reflective levels required to maintain the power generation and supply infrastructure,” ZESCO Acting Managing Director Enerst Mupwaya said.
He has stated that the tariff adjustment would help Zesco to mobilise huge funds required for investing in new generation and transmission facilities needed to meet the growing power demand in the aftermath of the global economic recession which dampened electricity demand by most key consumers like mining companies and other industries.

“…Upwards trends in demand for electricity indicate that the global economy has begun its recovery and this will bring about further pressures on the electricity supply and perhaps a return of load shedding if the necessary investments in generation and transmission are not effected,” stated Mupwaya.

Last year, Zesco applied for 66 per cent tariff rise in electricity, but the ERB approved a 35 per cent average increase in electricity tariffs effective August 1, 2009 to 2010.
By Brian Mwale.

PRIVATE SECTOR PARTICIPATION KEY TO ZAMBIAN POWER DEFICITS

Following the revision of the legal framework, the private sector is now slowly but steadily contributing to the Zambian energy sector. Lunsemfwa Hydro Company is currently contributing 48megawatts to the 1,400megawatts being generated nationwide.

Zambia is currently faced in a six hundred megawatts power deficit due to heavy industrial activities following economic growth. Energy being the life blood of economic development has remained a cardinal issue in Zambia whose 1,400Megawatts generation capacity is surpassed by its 1,500mega watts consumption at peak hours. ZESCO the main utility company has not upgraded its hydro plants in decades hence making the nation continue experience serious load shedding which is also concentrated on the peri-urban areas while the suburbs are usually spared.

With the relaxing of the legal framework, Lunsemfwa Hydro Power Company a private owned firm has embarked on expanding its 48megwatts output from its two power plants, Lunsemfwa and Mulungushi both located in the Central Province of Zambia. The company which is solely owned by Zambians has seen the expansion project starting with upgrading of machines as of 2009 replacing the 1925 installed ones. Company Electrical Technologist Chileshe Mutengo says the new Chinese machines have eased operations as the system has been digitized hence controls being done in one room and on one computer.

“We are now able to digitally control our operations here following installations of three new machines last year……our system at both plants is able to show what the other one is also doing and how much power is being generated,” Mr. Mutengo said.

The soft spoken technologist says the new machines are also able to generate maximum power regardless of the water levels in Lunsemfwa and Mulungushi rivers. He says the company is also looking at expanding generation capacity with the target of 200Megawatts on a long term basis.
“We are starting expansion works before the end of this month with a generation capacity of 6megawatts to raise our capacity to 54megawatts which will end some time next year,” He adds.
ERB calls for private sector participation

The Energy Regulation Board –ERB- which regulates the country’s energy sector has called for private sector participation as a mitigating measure for current power deficits that Zambia is experiencing.
On Wednesday the board held a one day workshop for the media in the Central Province provincial headquarters, Kabwe which was preceded by a tour of Mulungushi plant.
When officiating at the workshop, ERB Acting Executive Director Mushiba Nyamazana called for more private sector participation in exploiting the vast 6,000megawatts hydro power potential in Zambia.
“Lunsemfwa adds to a number of projects that government is working on in increasing power generation to match economic growth due to a number of activities,” Dr. Nyamazana said.

By Brian Mwale.

ZAMBIA LAUNCHES FOOD PROCESSING PLANT

Zambia has in the past seen many foods including fruits rotting due to lack of processing plants. This situation is now changing as the defunct Zambia Horticultural Company takes a new shape.

As calls for diversification of the Zambian economy continue, more developments are being made in the agriculture sector which will see more than five thousand peasant farmers get business. Freshpikt a fruit and vegetable canning and processing plant has been commissioned at a cost of US 5million dollars with support of the American government and some Zambian investors.

Speaking when he officiated at the opening event, Zambian President Rupiah Banda says the plant has come at a time when the country’s agriculture sector is faced with challenges of agro processing and value addition.

“I am happy to commission this plant which I was first Managing Director and I believe it will contribute to exports of Zambian products,” President Banda says.
And American Embassy Charge de Affaires Micheal Koplovsky says broad based economic growth is key to economic growth as Zambia poverty rates especially in rural areas have remained high despite the recent economic growth.

“The American governments is committed to contributing to economic development of Zambia and help it attain the vision 2030 of becoming a middle income country,” He says.
And Freshpikt chairman and prominent Lusaka businessman Chance Kabaghe expressed happiness with the quality of the processed foods. Mr. Kabaghe who is also Zambia Association of Manufacturers –ZAM- President says the company processes more than twenty locally grown products.
“ Our products are already becoming competitive in the Southern African region because they are meeting internationally accepted standards,” says Mr. Kabaghe.

History of fresh pikt
Freshpikt has succeeded the defunct Zambia Horticultural Products Limited -ZAMHORT- whose first Managing Director was now Zambian President Rupiah Banda.
The plant which was financed by the Italian AID to Zambia at a cost of 28million US Dollars was privatized following economic reforms initiated in the 1990s.
Freshpikt is expected to provide employment to more than five hundred people mainly women.
By Brian Mwale

ZAM COMPLAINS OF HINDRANCES IN PERFORMANCE

The manufacturing sector has been greatly contributing to Zambia’s Gross Domestic Product –GDP- but its competitiveness on the international market is a source of concern.

The Zambian manufacturing industry is faced with various challenges hence making it difficult to internationally.

Zambia Association of Manufactures –ZAM- President Chance Kabaghe says huge taxes when importing make it difficult for local products to compete with imported ones.

Mr. Kabaghe adds that only processing of agriculture produce is cheaper because of their easy availability.

He has however expressed optimism by government to make it easy for local manufactures through policy regulation.

Mr. Kabaghe was speaking in an interview with Muvi TV News in Lusaka.

By Brian Mwale

STANCHART RECORDS 13PERCENT GROWTH IN OPERATING PROFIT

2009 seems to have been a good year for Standards Chartered group after scoring record high income and operating profits worth billions of dollars seventh year running.

Standard Chartered PLC has today March 3rd 2010 announced a seventh successive year of record income $15.18 billion and $5.15 billion operating profit before tax during 2009, demonstrating the underlying strength and momentum across its markets and businesses, despite the ongoing adverse global economic conditions. The Bank’s strong liquidity and capital position enables it to continue building out market share across its footprint, generating positive business momentum for 2010.

A News release made available to The DataBank in the Zambian Capita Lusaka by Stanchart Zambia states that 2009 delivered strong and diversified profit and income growth across the bank’s markets in Asia, Africa and the Middle East. It further states that five markets delivered income of over $1 billion, with India and Hong Kong also delivering over $1 billion in operating profit before tax (OPBT). Wholesale Banking continued to demonstrate strong business momentum with significant increases in both client and own account income growth, while Consumer Banking saw a strong upturn in performance during the second half of the year.

The bank’s performance despite the global crisis

Throughout the tough environment, Standard Chartered has continued to provide support for its customers and corporate clients, significantly increasing lending and other forms of support across it’s markets. 2009 total lending climbed 13% per cent ($28 billion) to $250 billion. The bank helped many of its customers buy homes, increase their mortgage lending by nearly 21 per cent to US$58 billion. Stanchart helped small and medium enterprises –SMEs- start up and grow with an extra 14 per cent increase in lending to more than $13 billion. The Group continued to focus on the basics of good banking, keeping a tight grip on costs and risk control and maintaining a liquid and conservative balance sheet. Normalised cost/income ratio fell to 51.3 per cent from 56.1 per cent in 2008, although expenses rose slightly by 4 per cent vs 2008. Strong organic equity growth of over US$3 billion supplemented by a successful capital raising saw core tier 1 capital rise to 8.9 per cent, with total capital at 16.5 per cent. The advances to deposits ratio remains strong at 78.6 per cent, while continued action to de-risk the asset book positions us well to deal with any future economic uncertainty.

A clear strategic focus saw Wholesale Banking deliver another year of strong performance, with income up 24 per cent to US$9.29 billion and OPBT rising 36 per cent to US$4.08 billion. An ‘open for business’ approach to our client base throughout the financial crisis resulted in client income growing 22 per cent to US$6.88 billion, accounting for 74 per cent of all Wholesale Banking revenue. Client income growth was driven by the lending, corporate finance and financial markets businesses, coupled with an expansion in product capability and increased cross-selling opportunities. Own account income climbed 30 per cent, on the back of ALM and leveraging client flows, particularly on the back of intra-day credit and commodity trading.

Consumer Banking continued its repositioning strategy to build longstanding and multi-product relationships with customers. Further investment in the branch network, marketing and relationship management capability helped build a strong foundation for growth. While full year income and OPBT fell due to margin compression, business performance showed positive momentum through the year, delivering progressively stronger performance with income climbing every quarter. Deposits grew 11 per cent, while customer lending climbed 17 per cent as we took market share from competitors. Mortgage lending also rose by 21 per cent, whilst retaining a low average loan-to-value of around 50 per cent. Income and profit climbed strongly during the second half – income rose 10 per cent H209 vs H109, whilst OPBT climbed 49 per cent in the same period. Wealth Management products also delivered strong fee income, climbing 35 per cent from the first quarter of 2009 to the last.

Loan impairments for both Consumer and Wholesale banking showed a significant reduction during second half of the year. Consumer Banking loan impairments fell 13 per cent H2 vs H109, whilst Wholesale Banking loan impairments declined 19 per cent in the same period.

Markets showed strong performance in 2009, reinforcing the underlying strength of our business footprint. Hong Kong, Singapore, Korea, India and the UAE individually delivered income of over US$1 billion. India produced profits in excess of US$1 billion for the first time, supporting our intention to list IDRs during 2010 in this critical market. On the back of increasing Asian inward investment the Africa region produced very strong growth, with income climbing 20 per cent to over $1 billion, and profits climbing 54 per cent.

Africa also recorded an excellent set of numbers in 2009: income growth increased by 20% to $1.09billion and operating profits increased by 54% to $482million. Both our Consumer and Wholesale Banking businesses showed very good momentum, recording double digit, broad based income growth. Wholesale Banking delivered an exceptional performance, growing income by 30 per cent and deepening client relationships across the region. Consumer Banking growth was driven by SME and Wealth Management, whilst liability products have benefitted from the flight to quality in the wake of the financial crisis.

Peter Sands, Group Chief Executive, Standard Chartered says “2009 was the seventh consecutive year when we produced record income and profits. The bank has used its strong capital and liquidity position and its increasingly powerful brand to capture market share from competitors and to deepen relationships with customers and clients. We enter 2010 with real resilience and momentum.”

Commenting on the Africa results, Mike Hart, Regional Chief Executive Officer, Africa, says “Africa recorded extremely strong income and profit growth in 2009, driven by an exceptional performance in our Wholesale Banking business. Across the region we remain in a position of strength- our balance sheet remains in very good shape with liquidity closely managed, whilst the investments we have made in our distribution channels, in our products, our services, our people and our systems are realising immediate value. We continue to differentiate our brand and have confidence in our strategy for long-term, sustainable growth”.

Brian Mwale

“NON REMITTANCE OF DOMESTIC WORKERS’ CONTRIBUTIONS TO ATTRACT PENALTY’ NAPSA MANAGER SAYS.

Domestic workers are now formally recognised through preparation for their retirement packages by remittance of monthly contributions by their employers. Employers failing to do so are likely to face punitive measures.

The National Pension Scheme Authority (NAPSA) has warned of stiff penalties for employers who do not remit contributions to the authority for their domestic workers. NAPSA Lusaka area Manager, Tapeya Phiri says it is a requirement for every worker to contribute to NAPSA. He notes that most people that have employed domestic workers have not registered them with the authority hence not contributing.

Mr. Phiri has also urged domestic workers to demand that they are registered to safeguard their future. He was speaking at a one day employer/employee seminar in Lusaka’s Chongwe District. And NAPSA inspector, Gideon Situmbeko, has urged employees to report employers who do not remit NAPSA contributions. He says the law provides for penalties against employers who do not remit contributions.

Brian Mwale.

HIGH LENDING RATES AFFECT ZAMBIAN SHOEMAKER’S EXPANSION

A local shoe maker can not hire more employees to expand his business because banks have not made it easy for him to access funds. For many Zambian Small and Medium Enterprises –SMEs- interest rates ranging from 25% to 30% on loans by banks are scaring them to borrow money for expansion.

A Zambian Shoe maker has called on the Bank of Zambia –BOZ- to regulate banks so as to enhance access to funds by Small and Medium Enterprises –SMEs-. Kingsley Mwewa who operates his workshop in the Zambian Capital, Lusaka says many local banks do not have a provision for SMEs to borrow money. He says banks’ requirements for one to get a loan are too harsh for businessmen like him. “I have tried to get a loan from the bank but I can not afford the collateral which they are asking for,” says Mwewa. Mr. Mwewa’s story is like that of many business people in the country.

Their operations are going through stagnation because of what they term being sidelined by giants in the financial sector. Meanwhile Bankers Association of Zambia –BAZ- says its members have attached stringent measures toward loans because many SMEs have defaulted in the past. Association Vice Chairperson Mizinga Melu says the core of banks is to make a profit hence defaulters force institutions out of business. “ Statutory measures by government have greatly affected our rates hence many banks still find it difficult to reduce their rates compared to other countries in the region,” she says.

Could Islamic banking aid SMEs?

The Central Bank says the country lacks competition in the banking sector to force the rates downwards. BOZ Governor Caleb Fundanga further adds recovering of loans from borrowers who fail to pay back through the Credit Reference Bureau will help in lowering interest rates. “The introduction of Islamic Banking which does not provide for borrowers to pay interest on loans would work well in Zambia. However the Bank of Zambia can only facilitate for this if an interested firm requests for its registration,” Dr. Fundanga says.

And Private Sector Development Association –PSDA- President Yosouf Dodia says high interest rates are retrogressive on economic development. He says the SMEs are the economic drivers of Zambia hence need to be considered in access to finance. “More than 80% of the employed population in Zambia is in the informal sector which is being run by SMEs.” Brian Mwale