COMESA SG attributes economic challenges in the region to lack of fiscal discipline by government

Central Bank Governors in the region are failing tell off politicians that they lack fiscal displine hence the economic impasse. THE Common Market for East and Southern Africa (COMESA) has noted that lack of fiscal displine is the major contributor is the major contributor to economic challenges that most countries in the region are faced with. COMESA Secretary General Sindiso Ngwenya says many Central Bank Governors in the region are aware that lack of fiscal discipline is the core problem in the economic challengs which have led to currency depreciations but are failing tell off politicians. “I am not answerable to politicians so I can easily and freely say that most governments in COMESA lack fiscal displine and this is what has partly led to the prevailing economic challenges,“ Mr. Ngwenya said. He has also stated that while exchange rate stability remains a bigger issue with politicians and stakeholders calling for Governors to address this, nothing much has been done toward archieving economic diversification and structural transformation for many economies. The regional block chief has commended Central Banks and Ministries of Finance in the region having technically competent professionals unlike Ministries of Trade whose focus is the language in trade agreements without focusing on benefits. “Copper producing countries like Zambia and the Democratic Republic of Congo can become part of the global value chain if they were for instance producing wire mesh for the automotive industry which is a by product of copper if they were to invest in value addition unlike is the current situation where they just export raw copper,“ said. Mr. Ngwenya was speaking when he officialy opened the 21st Meeting of the COMESA Committee of Governors of Central Banks in the Zambian capital Lusaka on Thursday November 19th 2015.

Kwacha rebasing affects Cavmont Bank ATM roll out.

It is meant in good faith, but the rebasing of the kwacha has led to pushing further Cavmont Bank’s ATM roll out. Cavmont Capital Bank has revealed plans of rolling out its own Automated Teller Machines –ATMs- across the country. Bank Managing Director Johan Minnar tells ZNBC News in an interview that the exercise will be done this year as the company is currently using Visa Electron Cards for its clients. He says Cavmont had planned to roll out the ATMs last year but the rebasing of the kwacha affected plans as the firm had to spent over Kr 6,000,000 to upgrade its system in readiness for the rebasing of the currency. “If it was not for the rebasing we would have rolled out our ATMs across the country so that we get even more closer to the people…..but the rebasing was law so we could not avoid had but just push our rolle out plan to 2013,” he said. Mr. Minnar says the rebasing involved changing the bank’s operating systems beyond servicing clients but payroll systems for employees among others. Meanwhile Mr. Minnar says the bank recorded growth in its balance sheet last year owing to introduction of new products such as those meant for SME development. He says Cavmont is committed to developing SMEs in the country and will continue doing so in-light of plans of further recapitalization this year. The new rebased kwacha took effect on January 1st 2013 almost a year after a statutory instrument was issued providing for the need to rebase which involved dividing it by K 1,000. A six month transition period running until June 2013 has been provided and during this period both currencies will be used side by side. After that people will only be able to change the old currency over the counter in banks until 2015.

Government ties education to poverty alleviation

Increasing access to education is key to poverty alleviation efforts in Zambia Government says it has highlighted education as one of the key sectors that is critical in poverty alleviation efforts. Ministry of Finance Permanent Secretary Patrick Nkulukusa says education is a cornerstone of making a nation self reliant and an engine of modernity.

Speaking during a signing ceremony of the education joint financing arrangements between government and its cooperating partners in Lusaka today, Mr. Nkulukusa thanked the cooperating partners for continued support despite financial challenges in their countries. He says the joint Financing Arrangement is intended to provide external support to the Ministry of Education, Science, Vocational Training and Early Education toward funding of the National Implementation Framework from 2011 to 2015. “The signing of this Joint Financing Arrangement today is a clear demonstration of the confidence and belief, which the likeminded Cooperating Partners in the Education Sector have in the government of the Republic of Zambia to deliver quality education for all,” said Mr. Nkulukusa. This will be in excess of 40-million US Dollars annually. Under this arrangement Zambia’s Ministry of Finance and National Planning will manage finances for the Ministry of Education. And speaking on behalf of the Cooperating Partners Irish Embassy Head of Development Patrick MacManus says the donor community is happy with President Michael Sata's consistency with massages on financial management and performance. He has since pledged the cooperating partners' continued support to government in social and economic development. Other cooperating partners who signed are Japanese Embassy and DfID.

AIRTEL MONEY to transform mobile commerce in Ghana

Development of the mobile telecommunication industry has enhanced transactions of various nature; Airtel Money is one such venture.

Airtel Ghana yesterday December 21st re-launched its award winning mobile money platform, under a new brand name Airtel Money, which is better positioned to provide customers with an efficient alternative to cash transactions and provide millions of subscribers with access to banking services for the first time.

Airtel Money includes the most comprehensive package of m-commerce and payment features currently available on the Ghanaian market and it seeks to empower its customers with access to a convenient, secure and readily available way of making payments through the mobile platform.

A media statement states that Airtel is already in partnership with leading international and regional banks including Ecobank, GT Bank, Standard Chartered Bank, Unibank, United Bank of Africa, Zenith Bank, Energy Bank and Databank to provide customers with more convenient ways of conducting mobile commerce service, deposit and withdraw cash, money transfers, banking services, paying bills, contributing to investments.

There are more than 500 Airtel Money dealers, ensuring the widest availability of Airtel Money throughout Ghana.

Kola Sonola, Mobile Commerce Director at Airtel Ghana explained at the official launch of Airtel Money that the service, which previously was mainly a mobile money platform, had fully evolved into a mobile commerce platform, offering four major services, namely mobile money mobile top-up, money transfer, mobile banking and financial services for micro-finance, micro insurance and B2B services.

Customers, according to him, could therefore pay their utility bills, DSTV subscription fees, buy Airtel credit, pay for goods, servicesand loans through Airtel Money as well as make corporate batch payments and deposit or withdraw cash from a bank.

“Airtel money provides customers with a “mobile wallet” which allows them to use their mobile phones in much the same way as a bank debit card. It provides customers with increased security and flexibility, reducing the need to carry cash and ensuring prompt payments of bills, goods and services”, he stated.

Kola Sonola added that the uniqueness of Airtel Money also allowed customers on other networks to also enjoy the benefits of money transfer.

Managing Director of Airtel Ghana, Philip Sowah explained that Airtel aimed to deliver relevant and innovative mobile solutions to help customers overcome their daily challenges, stating that the companywas once again offering Ghanaians the tools to feel free and improve their lives. “Our goal as a company is to make communications, banking, payments, retail and infotainment affordable and accessible to all in Africa”, he added.

About Airtel in Africa
Airtel is the new brand name for the 16 Zain operations across Africa which was acquired by Airtel International in June 2010. Airtel is driven by the vision of providing affordable and innovative mobile services to all. Airtel has African operations in: Burkina Faso, Chad, Democratic Republic of the Congo, and Republic of the Congo, Gabon, Ghana, Kenya, Malawi, Madagascar, Niger, Nigeria, Seychelles, Sierra Leone, Tanzania, Uganda and Zambia. Airtel International is a Bharti Airtel company. For more information, please visit www.airtel.com

About Bharti Airtel Limited
Bharti Airtel Limited is a leading global telecommunications company with operations in 19 countries across Asia and Africa. The company offers mobile voice & data services, fixed line, high speed broadband, IPTV, DTH,turnkey telecom solutions for enterprises and national & international long distance services to carriers. Bharti Airtel has been ranked among the six best performing technology companies in the world by BusinessWeek. Bharti Airtel had over 223 million customers across its operations at the end of April 2011. To know more please visit,

Kenya-Zambia strengthen bilateral ties

Despite the distance and regional blocks, Kenya and Zambia still see the need to tap into each other’s economies for potential investments.

Zambia and Kenya an East African country have continued working on strengthening bilateral ties with the successful hosting of the 2nd Zambia-Kenya Business Forum in Lusaka. The forum held on December 12, 2011 at the Kenyan Embassy and running under the theme “Exploring the untapped potential in the service industry in Kenya and Zambia,” attracted players from various sectors of the economy especially in the service industries from the two countries.

The Kenyan government through its Minister of Information Samuel Poghisio highlighted the vital role that Information Communication Technology (ICT) plays in economic development. Mr. Poghisio revealed that the continent has over the years recorded tremendous development in this sector as evidenced with the laying of optic fibre cables cross cutting the continent. He has however cautioned African nations to exercise care in receiving donations of ICT nature which might be detrimental on the economy.

“It is very clear from the beginning to demand the best in technology and there are many places to benchmark with not to accept technology just because it is being pushed by some one as a donation, technology does not have to be a donation because it can be very dangerous for us,” said Mr. Poghisio.
The Minister further appealed for linkages among African nations in order to foster economic development.
“We have had close relations between Africa and the US, Africa and Europe, Africa and Asia, but what we need is good bilateral relations among African nations,” he added.

And officiating at the occasion Commerce, Trade and Industry Deputy Minister Keith Mukata lamented unbalanced trade between the two countries despite being members of the same regional group.

“You may wish to know that Kenya’s exports to Zambia were at US$ 35million in 2010 and Zambia’s exports to Kenya in 2010 were US$ 33million,” he said.
“These figures are not impressive especially that both Zambia and Kenya are members of the COMESA Free Trade Area.”

Mr. Mukata says notes that Zambia has massive investment opportunities in sectors like health, education, banking and communication adding that platforms like the Business Forum are valuable for networking.

“In this way we shall be able to reap the full benefits of Trade and Investment, create jobs and foster economic growth and development,” said Mr. Mukata.
The business forum has seen business gurus from Kenya represnting various service delivery sectors such as health, education, manufacturing and retail among others coming through seeking prospective investment opportunities in Zambia.

ZCF in K 7.5billion fertilizer deal with Nyiombo Investments

While the vision of recapitalizing the coorporative movement is gaining momentum ZCF has scored big in a fertilizer distribution deal.

THEZambia Co-operative Federation (ZCF) has signed a US$ 1.5million (K7.5bn) deal with Nyiombo Investments on Fertilizer Distribution amongst small holder farmers country wide. The deal signed on December, 7, 2011 will see the federation utilize its infrastructure dotted across the country to distribute Urea and D-Compound fertilizer to it’s over 4,500 members.

ZCF Director General James Chirwa says this further increase the contribution that small holder farmers make to the country’s agriculture sector beyond the current 80percent. Mr. Chirwa adds that the project will be a form of supplement on the existing Farmer Input Support Program (FISP) by government. “Farmers have remained small in the country despite having started benefiting from FISP in 2002…we want to avert this situation as a federation through this deal with Nyiombo Investments,” said Mr. Chirwa.

He said the deal provides for a competitive price by Nyiombo to ZCF which will in turn be passed on to beneficiaries across the country with three provinces namely Northern, Western and Southern earmarked in the first phase which commenced on December, 8, 2011. The prices will not go beyond the existing market price of K 200,000 per 50kg bag. Mr. Chirwa was however quick to mention that co-operative members who have already made their K 50,000 contribution toward the recapitalization program from among the federation’s over 4,500 members will be given the farming input at a good price as part of incentives.

“We want to recognize the role that our members have played in the recapitalization program hence we will award them with a good price for the fertilizer so that they can increase on the yield,” stated Mr. Chirwa.

Meanwhile speaking at the same occasion which was held in the ZCF Boardroom, Nyiombo Investments Limited Operations Manager Kwazi Dlamini said his firm was happy with the deal entered into with ZCF. He is optimistic that the fertilizer will reach its targeted beneficiaries the small holder farmers who are the drivers of the country’s economy.

“We are confident that farmers in the rural areas will greatly benefit from this program so that they can be motivated to increase their yields owing to availability of the farming input,” he said. Mr. Dlamini further revealed that Nyiombo Investments is looking at going beyond supplying of fertilizer but also other farming inputs.

The US$ 1.5million between ZCF and Nyiombo Investments will continue beyond the current farming season. Market analysts are expectant that ZCF’s active participation in developing the small holder farmers will further enhance their contribution toward agriculture development making Zambia a regional food basket through successive bumper harvests.

US ISSUES TRAVEL WARNING FOR ZAMBIA AHEAD OF 2011 ELECTIONS

Is this a predication of violence ahead of the much anticipataed 2011 tripartite elections in Zambia?

The United States government is urging its citizens to take precautions when traveling to Zambia ahead of September 20th national and local elections, saying there is a potential for unrest.

The U.S. State Department yesterday urged Americans traveling to Zambia during or immediately following next month’s elections to monitor local news, assess travel routes when making plans, and to avoid all demonstrations. It said even peaceful protests can quickly become unruly.

During the September vote, Zambia's President Rupiah Banda will seek his first full term in office. The president took power during special elections in 2008, after the death of his predecessor, Levy Mwanawasa. During that election, Mr. Banda narrowly defeated rival Michael Sata.

This year’s elections have been marred with a lot of political violence with the country’s major opposition party Patriotic Front being confident of winning.

Voice of America

FNB-ZAMBIA AWARDS EMPLOYEES SALARY INCREAMENT

First National Bank (FNB) Zambia has joined many local financial institutions trying to sustain its worksforce through increament of salaries in th advent of new entrants in the sector.
The Zambian financial sector has continued responding to increases in the cost of living through increased packages for its workforce.

Zambia Union of Financial and Allied Workers (ZUFIAW) President Cephas Mukuka says his union has been advoctating for increased salaries for its members owing to inflationary changes and cost of living. Mr. Mukuka tells the DataBank that the latest institution is FNB Zambia which has nodded to a ZMK 700,000 salary hike across the board.

“I can safely confirm that my union did sign a collective agreement with FNB Zambia on August, 8, 2011 after negotiations,” Mr. Mukuka said.

FNB is the third bank to have awarded its workers a salary hike after Investrust Bank and Standard Chartered Bank which equally gave its employees the same amount.
By Brian Mwale

IS ZAMBIA’S ATTAINMENT OF THE MIDDLE INCOME TARGET MEANINGFUL?

Excitement is in the air among different stakeholders about Zambia’s reclassification into the Lower Middle Income bracket by the World Bank, but a few meters from its central business district of the capital city Lusaka in a place called Chibolya where people are languishing in abject poverty.

The Zambian government has attributed the country’s attainment of the vision 2030 target of becoming a middle income country 19 years earlier to good economic policies. Zambia’s Finance and National Planning Minister Situmbeko Musokotwane at a media briefing in the capital city Lusaka today stated that good policies have allowed increased investments especially in the mining sector which coupled with huge exports have increased earnings.

Dr. Musokotwane said the reclassification of the Lower middle income status means that the Southern African nation will now have access to non-concessional loans which are high value and good for developing the country; a step ahead of the concessional loans which were limited in nature as the World Bank only offers US$ 70,000,000 under t his category.

“The reclassification now allows us as a country to borrow more for investments as we have the capacity to pay back as has been seen from increase earnings from copper exports,” said Dr. Musokotwane adding that “our status now makes the country known to the international community as a hub for good investment.” And when asked about how soon the gap between the rich and the poor will be narrowed, the Minister stated that the poor are a common sight even in the world’s huge economies.

In a Wednesday edition of the United Kingdom-based newspaper The Guardian the World Bank reclassified Zambia as a middle-income country along with Ghana. The World Bank said the upward adjustment in Zambia’s income growth is a result of foreign aid-driven interventions and surging prices of copper in the last few decades.

“Zambia and Ghana are ranked 27th and 28th among 63 countries which the World Bank has reclassified as middle-income countries since the year 2000,” The Guardian newspaper reported. Low-income countries are those with the average gross national income (GNIs) of less than US$1, 005 per person annually. Lower middle-income countries have per capita GNIs of between US$1,006 per year and upper middle-income countries have per capita GNIs between US$3, 976 and US$12, 275.

The middle-income countries now account for most of the world’s population living in absolute poverty and they need aid allocation models which will take account of poor people and deprivation beyond income. On the Millennium Development Goals, the Guardian newspaper states that Zambia and Ghana have done well although the progress to attain the goals is slow.

“However, in both Ghana and Zambia, the number of children in primary school has climbed along with literacy rates and infant mortality has fallen. Even if they are not on track to meet the MDGs, quality of life is getting much better,” it states.
There are only 35 low-income countries remaining out of the countries being assessed by the world.

ECONOMIC POLICIES FOR FOREIGN INVESTMENTS

Zambia’s provide for externalization of profits by foreign investors as a policy aimed at attracting Foreign Direct Investment (FDI). The Country’s Commerce Minister Felix Mutati and Zambia Development Agency (ZDA) have on several platforms stated that foreign investors are free to bring in as much money as they want and take out as much as they want.

This policy has been attacked by many people like independent Economist Robert Sanyikosa who says affects development of the local economy. Mr. Sanyikosa says that owing to control of mines by foreign investors the reclassification of the country as a Lower Middle Income status has nothing to be excited about because people are still wallowing in poverty in most of Zambia’s rural areas.

“The yardsticks that the World Bank is using to reclassify Zambia is copper exports when allnot all earnings from the venture come back home because of the profit externalization policy,” says Mr. Sanyikosa. His sentiments have been supported by opposition Forum for Democracy and Development (FDD) President Edith Nawakwi has called for change of policies. Ms. Nawakwi is an opposition leader who has never run for presidency during elections since formation of her party in 2001 but only endorses other presidents.

By Brian Mwale.

LIBYAN ASSETS HELD BY LEADING GLOBAL BANKS

Some of the biggest and best-known financial institutions in the world held billions of dollars of Libyan state funds, a leaked report has revealed. Principal among them were HSBC, Royal Bank of Scotland, Goldman Sachs, JP Morgan Chase, Nomura and Societe General, Global Witness said. The banks refused to say whether they held, or are still holding, the funds.

All the assets have now been frozen by the European Union and United Nations. The document, dated June 2010, showed that HSBC held $292.7m (£179.9m) in 10 cash accounts, with a similar amount invested in a hedge fund, while Goldman Sachs had $43m in three accounts. Almost $4bn was held in investment funds and structured products, with Societe General alone holding $1bn.

“Start Quote
All the banks refused to make any public comment on the funds they received and managed on behalf of the Libyan Investment Authority, citing client confidentiality”
Robert Peston Business editor, BBC News

• Peston: Where Libya invests $53bn
Japanese bank Nomura and Bank of New York also held $500m each. A much larger proportion of Libyan Investment Authority's assets - $19bn in total - were held by Libyan and Middle Eastern Banks, the document revealed. It also showed that the Libyan Investment Authority (LIA) holds billions of dollars in shares in global corporations such as General Electric, BP, Vivendi and Deutsche Telekom.
It had already been widely reported that the fund held stakes in UK publishing group Pearson, Italy's Unicredit bank and industrial group Finmeccanica, as well as Canadian oil exploration group Verenex.

'Economic sanctions'
"It is completely absurd that HSBC and Goldman Sachs can hide behind customer confidentiality in a case like this," said Charmain Gooch, director of campaigning group Global Witness.
"These are state accounts, so the customer is effectively the Libyan people and these banks are withholding vital information from them." Established in 2006, the LIA holds about $70bn of assets and is the 13th largest sovereign wealth fund in the world, according to the Sovereign Wealth Fund Institute. The fund, built on Libya's oil wealth, scores two out of 10 on the institute's transparency ranking.
Earlier this month, the EU extended its economic sanctions against Libya to include the LIA and the country's central bank. It had already frozen assets of Libyan leader Muammar Gaddafi and some members of his family. It did not initially target the LIA as there was some debate about whether its assets belonged to the Gaddafi family or the Libyan people, analysts said.

Source: BBC.

ZAMTEL INTEGRATES CALL CENTRE FACILITIES

With only a few months after taking over Zambia’s public owned telecommunication firm ZAMTEL, Lap-green Networks of Libya has embarked on intensive transformation of the local call centre through unleashing of a lot of packages out of the bag.

The company has announced that it is integrating its call centre facilities as part of the company’s strategy to deliver improved customer facilities across its three brand portfolios.

ZAMTEL Senior Manager for Corporate Communications Kennedy Mambwe says this caters for the company’s converged telecommunication solutions such as fixed lines, GSM mobile and data services as it has an internet service provider license. Mr. Mambwe adds that ZAMTEL has equally employed more personnel to handle the anticipated surge in call volumes from customers across the country.

He further disclosed that in the telecommunication firm plans to build an ultra modern call centre in the near future.

About ZAMTEL
ZAMTEL is part of the LAP Green Network, which has a footprint in six African markets to more than 4 million active subscribers. Lap Green owns 75% shares in the company with management control, while 25% shareholding is retained by the Zambian Government.

By Brian Mwale

ZAMBIA FINALLY SIGNS CAADP COMPACT AFTER TWO POSTPONEMENTS

The Zambian agriculture story is set to record further growth as the country finally signs the long awaited Comprehensive Africa Agriculture Development Program (CAADP) Compact.
After postponing the signing on two occasions in 2008 and 2010, the Rupiah Banda led government has appended its signature to an agreement which now compels it to allocate at least 10% of the annual budget toward development of the agriculture sector and work toward a sector growth target of 6%.
Launching the signing ceremony in the Zambian capital Lusaka today, (January, 18, 2011) Republican President Rupiah Banda through his vice Gorge Kunda says the CAADP Compact is in line with the country’s policies.
Mr. Banda says the country has deliberately created the Livestock and Fisheries Development Ministry which supports growth of the sector. “We are increasing the quality and quantity of livestock by products being exported as the current levels are not good enough,” says the Mr. Kunda.
And the Zambian Head of state says despite the country having recorded consecutive bumper harvests, many challenges still need to be addressed. He says poor road network, storage facilities, and lack of adequate funding and research have to be addressed in order for the country to go beyond its current production levels.
Comesa sentiments on CAADP
The Common Market for East and Southern Africa (COMESA) has expressed delight with Zambia accenting to the CAADP Compact.
COMESA Secretary General Sindiso Ngwenya says Zambia has signed at the right time when it has showed its agriculture potential through consecutive bumper harvests in the agriculture sector. He says this in the midst of the country having recorded a 2.8million metric ton maize bumper harvest in the 2009-2010 farming season an increase from the 2008-2009 farming season which saw Zambia’s staple food hitting a 1.9million metric ton bumper harvest.
“Zambia signing the CAADP Compact brings the number of countries in the COMESA region that have signed to eight which is a good indication,” Mr. Ngwenya reveals.
He says his organization and Zambia’s Ministry of Agriculture are working together to solicit for some technical support from the Food and Agriculture Organization –FAO-. Meanwhile Agriculture and Corporative Minister Bradford Machila says the CAADP Compact fits in Zambia’s Vision 2030 target of becoming a middle income country.
Mr. Machila says the program will be in line with government National Development Programs –NDPs- such as the current Sixth National Development Plan –SNDP- which runs from 2011 to 2015.
Finance and National Planning Minister Situmbeko Musokotwane signed on behalf of Zambia alongside his Agriculture Minister Counterpart Eustakio Kazonga and Zambia Association of Manufacturing –ZAM President Chance Kabaghe singed on behalf of the private sector.
About CAADP
CAADP is an initiative that aims at accelerating Africa’s development by using agriculture as the engine to drive such development.
The CAADP was formulated by African government under the African Union/New Partnership for Africa’s Development (AU/NEPAD) in 2003. In this regard, an annual agriculture growth target of 6% was set, which would be realized in part by allocating at least 10% of the country’s total annual budget to the sector.
The Zambian government in collaboration with COMESA has been engaged in the process of accelerating the implementation of the agriculture development agenda in line with the Comprehensive Africa Development (CAADP) framework.
CAADP’s four fundamental pillars
1. Extending the area under sustainable land management and reliable water control systems,
2. Improving rural infrastructure and trade related capacities for market access,
3. Increasing food supply and reducing hunger
4. Agricultural research, technology dissemination and adoption.

The pillars are deemed critical to sustainably accelerate agricultural production and productivity in countries on the continent.

By Brian Mwale

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.