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With the new Energy Regulation Board – ERB leadership opting to adopt a monthly fuel price review model, indications are that fuel pump prices across Zambia are expected to  go up beginning March 2022.

International crude oil prices have climbed up to an all time high of $105 a barrel for the first time since 2014 after failure of diplomatic efforts between Russia and Ukraine failed resulting into military conflict. This has resulted into crude oil prices and the resulting pump prices for consumers going up globally.

Analysts have predicted that the prices will rise much higher amid fears of major disruption to the global energy supply chain. Russia is one of the world’s largest producers of oil and natural gas and disruptions in its output whether as an unintended consequence of military action or as a response to international sanctions is expected to have a telling effect on energy prices.

Energy Expert Boniface Zulu has advised consumers to brace themselves for an increase in fuel prices as world oil prices continue to go up due to the ongoing conflict between Russia and Ukraine. This conflict is also resulting in price speculation for crude oil.

Speaking in an exclusive interview with the Zambian Business Times-ZBT, Zulu said world oil prices are expected to skyrocket in the next coming weeks to the highest since the cold war because such disturbance has never been experienced since the cold war.

He explained that Zambia’s fuel prices would be adversely affected because it has been buying fuel from the Middle East and sometimes from Ukraine and the current destabilization that Ukraine is undergoing will have negative effects on its oil production, adding that Ukraine plays a big role in oil production.

Zulu advised that government should consider re-introducing fuel subsidies in order to cushion consumers from the expected high fuel prices hikes, adding that this also calls for Zambia to reduce its over-dependence on imported oil as the main fuel it uses for transportation.

“We need to consider electrical mobility; it has to be the secondary source of fuel that will enable people to move goods. We produce copper and it is the main material used to produce electric vehicles and electric trains, we should consider to start planning, designing and building these systems utilizing our copper as a country”, he said.

He told ZBT that there is no certainty concerning the extent of the expected fuel pump prices arising from the new world oil prices during this period. Moreover, the Kwacha has not been stable, which is the other lever that could help avert another fuel price hike.

The global economy has been battered by the Covid pandemic and just when it seemed that the world was adjusting to living with the pandemic, the Russia-Ukraine conflict has come in to pose yet another global challenge. Zambia needs to work out it’s own path on how to navigate these global challenges.

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With the new Energy Regulation Board -

Markets

Despite the overall reported annual inflation for February, 2022 easing to 14.2% from 15.1% recorded in January, 2022 mainly attributed to base effects, the prices of key commodities have continued to rise adversely affecting most households whose incomes have remained stagnant.

An analysis by the Zambian Business Times – ZBT of the detailed report availed by the Zambia Statistical Agency – Zamstats reveals that the devil is indeed in the detail. For instance, the price of the country’s staple food mealie meal recorded an increase in price of almost 8% between January and February 2022.

The Zamstats report further revealed that a 25kg bag of mealie meal was fetching a maximum price of K200 in Chinsali, a provincial capital of Muchinga region. Other daily consumer commodities whose prices have surged up include frozen chicken whose price per kilogram has increased from K41.07 in February 2021 to K58.38 in February 2022, an increase in price of about 42%.

Meat prices have also shot up in prices per kilogram with fillet and rump steak posting an increase of about 25% from February 2021 to February 2022. For the non food items, steep price increase has also been reported for bathing and washing soaps which have recorded price increases of between 27 to 41% between February 2021 to February 2022.

The recent overall increase in fuel prices coupled with the local currency – the Kwacha depreciation streak against major international convertible continue to weigh down and push up the cost of living for the majority of Zambians. The stability of the Kwacha remains a challenge.

The central bank – BOZ has set an inflation target of single digit by year end and a target range of between 6 to 8% for 2023. The BOZ governor Denny Kalyalya however hinted that the impending electricity tariff increase pose a threat to achieving the above inflation target.

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Despite the overall reported annual inflation for

Lifestyle

The Psychology Association of Zambia-PAZ says the phasing out of doom and other hazardous chemicals from the Zambian market can help reduce the number of deaths from suicide cases that the country has been recording.

Psychologist and Member of the association Kapambwe Chikontwe disclosed that countries like India and Singapore have succeeded at reducing the number of deaths from suicide cases by banning hazardous pesticides and have carried out studies to that effect.

Speaking in an exclusive interview with the Zambian Business Times-ZBT, Chikontwe said the ban should be done gradually by withdrawing hazardous chemicals from the market and replacing them with less hazardous chemicals, which would not lead to death if consumed.

He noted that people opt for choices that are more humane when they decide to end their lives, so if an individual’s first and last choice when planning to commit suicide is doom, they would go for a less effective chemical, which may in the end, spare their life.

Chikontwe said banning such products is a good move because it is difficult to restrict access to hazardous chemicals which are readily sold on the market, noting that the move should be backed by a policy and clear guidelines on how it will be done and relevant stakeholders including the Ministry of Health should be involved.

He explained that mental health conditions are the main causes of suicide because people experiencing mental health conditions are predisposed or vulnerable to self-harm. The Psychologist added that people who are depressed, schizophrenic, bipolar, have anxiety and substance use disorders are more vulnerable to suicide thoughts.

Chikontwe revealed that poverty, debt and bankruptcy also account for quite a number of people who have considered taking their life, adding that some people who are sexually abused also turn to suicide including people with low self-esteem who are not likely to share their problems.

Debate has arisen with some members of the public calling for the ban on doom pesticides after reports of most deaths from suicide from both adults and children are related to ingesting doom – a pesticide that is readily sold across Zambia. Efforts to get a comment from Doom distributors proved futile by press time.

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The Psychology Association of Zambia-PAZ says the

Lifestyle

The state of the Lusaka – Ndola highway which is one the busiest highway roads in Zambia needs urgent attention to avert the loss of more lives and property as most parts of the busy road is now posing a danger to users. A random check on the busy road shows that the number of road traffic accidents on this road are now officially an emergency.

And a check with the Road Transport and Safety Agency (RTSA) has revealed that over 80% of the road traffic accidents that have been recorded this year are as a result of human error coupled with dilapidated roads.

RTSA Head of Public Relations Fredrick Mubanga said the causes of the road traffic accidents are a consortium of many factors such as the poor state of roads especially on the Lusaka-Copperbelt road.

Speaking in an interview with the Zambian Business Times-ZBT, Mubanga said RTSA is working on changing the bad driver attitude and is putting in place corresponding counter measures to address issues such as excessive speed and dangerous driving among others, adding that the agency aims to see a sense of responsibility among drivers.

He has warned drivers to desist from being a danger on the road noting that going forward the agency will start revoking driving licenses of motorists who are proving to be a nuisance on the road and disregarding traffic rules.

Mubanga explained that motorists who do not follow the rules risk being charged as that is an offence and the agency would also evoke the provisions of the Road Traffic Act No. 11 of 2002 that empowers RTSA to revoke licenses of drivers that tend to be a danger to other road users.

“I will give you an example of the driver of the fuel tanker that caused an accident in Kapiri involving a fuel tanker and a train. The agency is of the view that the driver acted negligently and violated the driver’s duty of care and we have since proceeded to engage such a driver to show cause why his license should not be revoked”, he said.

Mubanga has specifically warned drivers of public service vehicles, in particular those driving goods to be cautious on the road as most of the accidents involve distant trucks because drivers are having disregard for other road users especially those using small vehicles noting that all those found causing an accident with impunity risk having their licenses revoked.

“We have to take measures and vigorously tackle the problem before us. We also seek the cooperation of all road users, individual drivers to take it upon themselves to see that they promote or adhere to all traffic rules and regulations”, he said.

He mentioned that the agency has also enhanced the traffic enforcement operations and taken advantage of the period following the N’cwala ceremony to heighten its publicity activities and set out enforcement points to screen drivers who may be driving under the influence alcohol as well as drivers that are driving at excessive speed among others.

Mubanga stressed that the agency will implement Road Traffic Act No. 11 in totality to ensure that immediate ways of putting an end to the road traffic accidents are realised adding that the agency will provide the quarterly statistics of road traffic accidents at the end of the quarter.

Despite the efforts of RTSA, the route cause of the increase in road traffic accidents on the Lusaka to Ndola Highway is down to the dilapidated road. The road has developed big potholes which are not being fixed even through patching up. There are stretches were the road has basically become deformed and needs urgent and emergency attention.

Goods may be insured, but how many human lives should be lost before action is taken. There is need for emergency patch up works even as the long term re-surfacing is contracted as this will take time. The Lusaka – Ndola road is in such a bad state that even getting out of Lusaka, getting into Kabwe and getting into Ndola is so congested as if there are no authorities to come up with immediate solutions.

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The state of the Lusaka - Ndola

Agribusiness

The Dairy Association of Zambia (DAZ) is importing pure dairy cow breeds from South Africa on behalf of farmers in order to assist with meeting the growing demand for improved dairy cows as well as to improve the quantity of milk production among smallholder and emerging dairy farmers.

In an exclusive interview with the Zambian Business Times-ZBT, DAZ Public Relations Manager Sampa Chipemba said it is expensive and difficult for farmers buying in small numbers or quantities to access animals of their choice from out of the country on their own, therefore the need to work with the association.

Chipemba said apart from the actual costs of importing a single animal, protocols like getting an import permit, quarantine costs and insurance costs among others make it very cumbersome if one is importing a single or few animals.

He told ZBT that the farmers themselves purchase the animals and the association simply facilitates the purchase, therefore the farmers are bearing all the costs of ensuring that the animals get in the country. Farmers that intend to get high quality pure breeds should engage the association to benefit from this initiative.

Chipemba said the association decided to work with the farmers in order to lift the burden of the long process of importing animals on small-scale farmers and starter farmers to access pure high yielding dairy breeds.

“We have come on board to merely provide a service of aggregating the orders for farmers so that the costs are spread over many animals and at the same time access animals from reputable cattle breeders and suppliers”, he said.

He said the target is to facilitate the purchase of 200 animals on behalf of the farmers per quarter and the first purchase was in December 2021 adding that the association has facilitated the purchase of  114 Friesians and 27 Jersey for the farmers.

Chipemba mentioned that the next batch is expected into the country in the second week of March 2022 and then the subsequent will follow in June/July and September/October respectively. He has urged farmers who would like to purchase these good breeds to contact the association’s secretariat in Lusaka.

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The Dairy Association of Zambia (DAZ) is

Companies

The Competition and Consumer Protection Commission (CCPC) has disclosed that of all the 39 cases it received concerning ZANACO, the Bank was not found wanting under the Competition and Consumer Protection Act (CCPA) No.24 of 2010, and that all the complaints brought before the Commission were fully resolved.

CCPC Public Relations Officer Rainford Mutabi said the commission investigated and concluded a cumulative 117 cases relating to the provision of banking and financial services in 2021. Out of the 117 cases, 39 cases from the public were concerning challenges to do with services offered by the Zambia National Commercial Bank (ZANACO).

In response to the Zambian Business Times – ZBT, Mutabi said the 39 ZANACO complaints that were handled by the Competition and Consumer Protection Commission were all investigated. He explained that the complaints bordered on failure to reverse failed transactions within time, delays in refunding complainants for failed ATM transactions, queries on increased loan tenure/instalments, unauthorized deductions on customers’ accounts and delays in processing digital payments.

He further urged the public to report to the Commission all complaints relating to unsolicited deductions, queries in loan deduction periods and amounts, unfair clauses in contracts, delays in transfer/reversal of funds, over or double deductions for transfers/ withdrawals, display of disclaimers when accessing financial services among others were the financial institutions fail to resolve them in a satisfactory manner.

The Public Relations Officer however said, it is important to note that in a situation where a complaint brought to the Commission is outside its mandate, the Commission refers the complaint to the relevant authority/investigative wing.

Mutabi mentioned that the Commission handles cases where customers suffer continued deductions after fully settling loans, reversal of failed ATM transactions where funds have been debited, cases to do with extended loan tenures/increased repayment instalments and wrongful listing on the Credit Reference Bureau.

Other cases that the commission handles include failure to have access to funds in one’s account, unauthorized deduction on customer accounts and delays in processing digital payments.

He said the banking sector has continued to advance technologically and this has seen a potential in vulnerable customers being exploited due to lack of adequate knowledge therefore it is imperative that consumers with plausible suspicion of unfair treatment in their interaction with banking financial service providers come through to the Commission or any relevant Regulator (authority) and  seek assistance.

Mutabi mentioned that it is also important to note that the Commission, through Memoranda of Understanding with other regulators is also able to undertake joint investigations with other regulators. In this sector, the Commission works in consultation with the Bank of Zambia to achieve comprehensive complaint resolution and customer satisfaction.

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The Competition and Consumer Protection Commission (CCPC)

Markets

The Bank of Zambia – BOZ, which is the central bank has admitted that the impending electricity price hikes to cost reflective tariffs will pose an upside risk  to inflation. Electricity tariff are expected to go up with the cost of connection fees already adjusted upwards.

Speaking during the Monetary Policy Committee announcement attended by the Zambian Business Times – ZBT, BOZ Governor Dr. Denny Kalyalya explained that there are upside risks to the inflation outlook, which include increase in crude oil prices, initial effects of implementing the transition to cost reflective electricity tariffs.

He further stated that other factors that may lead to an inflation increase are the possible lower crop production due to adverse weather conditions, lingering supply chain bottlenecks induced by the Covid-19 pandemic and tightening of monetary policies in major economies.

The Governor noted that the transition to cost reflective electricity tariffs may also have short-term effects on inflation although over the medium to long-term, this is expected to have positive economic benefits through for example increased investment, supply, and access to electricity as well as exports.

The Bank of Zambia (BOZ) has maintained the Monetary Policy Rate at 9% citing the sharp deceleration in inflation and its projected continued downward trend towards the 6-8 percent target range over the forecast period (Q1 2022-Q4 2023) as one of the key factors in arriving at the decision.

Dr. Kalyalya said inflation is projected to continue trending downwards towards the 6-8 percent target range over the forecast period, averaging 13.2 percent in 2022 and 7.3 percent in 2023.

The BOZ Governor who is also the head of the monetary policy committee said underlying the projection are mainly the catalytic benefits of securing an IMF programme such as access to budget support, reduction of the external debt burden through restructuring and unlocking investments as well as the positive impact of higer copper prices mainly through the exchange rate.

Dr. Kalyalya further said that the committee has welcomed government’s medium-term budget plan (white paper) adding that the importance of successful execution of this plan is deemed critical to the achievement of macroeconomic stability, including low inflation and a stable financial system.

He added that in January 2022, inflation fell further to 15.1 percent from 16.4 percent in December 2021 largely because of improved supply of fruits and vegetables.

Annual overall inflation declined sharply to an average of 18.9 percent in the fourth quarter of 2021 from 23.7 percent in the third quarter. This was largely driven by the appreciation of the kwacha against the US dollar and the dissipation of base effects, particularly for meat and poultry products. As a result, both food and non-food inflation declined to 24.5 percent and 12.5 percent from 30.8 percent and 15.6 percent respectively.

Decisions on the policy rate will continue to be guided by inflation forecasts, outcomes and identified risks including those associated with financial stability and the Covid-19 pandemic, BOZ reiterated.

 

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The Bank of Zambia - BOZ, which

Lifestyle

Governance Expert George Chimembe says the recommendation by the European Union Election Observation Mission (EU EOM) to remove from the law undue campaign privileges for the President and Vice President to ensure equal campaign conditions for all candidates should be supported.

Chimembe, who is also former Foundation for Democratic Process (FODEP) Executive Director said the recommendation is progressive, as it will ensure that there is a level playing field for everyone contesting at presidential level.

Speaking in an interview with the Zambian Business Times-ZBT, Chimembe said the campaign privileges given to the President and Vice President disadvantage the other competitors while the political parties that the President and Vice President belong to are advantaged.

“We have also seen some abuse of public resources or even those privileges, they are used to disadvantage the competitors, we saw the former Vice President going around giving lifts to the running mate of a former president, which was against the provisions of the electoral code of conduct”, he said.

He said another abrogation of the provisions of the electoral code of conduct was to extend the privileges accorded to the President and the Vice President to candidates that were contesting in those particular general elections.

Chimembe noted that during his stay at FODEP, the organisation proposed that when campaigns begin, the president should no longer continue being the president and the speaker should instead take over the executive functions so that the president can be looked at like any other presidential candidate adding that some countries like Malaysia have done that.

However, Chimembe has expressed displeasure at the European Union Election Observation Mission’s recommendation to remove the G12 academic qualification requirement from aspirants for elective political positions.

Chimembe said the issues that are debated in parliament border on policy and law making among others therefore the need to have people who are not ill qualified as they would not be able to provide quality contributions and their debate would not be detailed, analytical and informed.

He said there is need for people with some level of education to represent the people, which will enable them to analyse issues brought in parliament with some educational framework adding that people with no requisite qualifications will not be able to understand some of the issues that will be brought into the house thereby disadvantage the representation of the people.

“Our colleagues who are bringing these proposals, what is their standard there, we need to ask our colleagues from Europe what their standard is, do they allow anybody just because he is a citizen, I don’t think so. At the level of parliamentary candidate, I think grade 12 is very fair, otherwise we could have even asked for a diploma as a minimum and a degree would be ideal. At councilor level you tend to have problems getting people that are qualified, we saw that a lot of political parties cried foul but at the end of the day they looked for those people and those people were able to compete so let’s not downgrade.”, he said.

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Governance Expert George Chimembe says the recommendation

Lifestyle

By staff analyst

Government has increased salaries for local authorities’ employees across the board by 12%. This is on the back of the country experiencing a double digit inflation rate, with the move expected to help workers maintain their purchasing power.

Ministry of Local Government and Rural Development Permanent Secretary-Technical Services Wisdom Bwalya said the increment is meant to ensure that Local Authorities, among other things, maintain a positive work environment that boosts employee morale, retention and productivity.

Bwalya reiterated that Government is committed to improving the welfare of employees as demonstrated by the award of the said 12 % Salary increment amidst hard times. “I now challenge the Local Authorities’ employees to reciprocate this gesture by working hard to improve service delivery to the people,” Mr Bwalya said.

The PS said the 2022 improved salaries/wages and conditions of service will be financed using the 2022 Local Government Equalisation Fund and locally generated revenues. He has since directed principal officers of Local Authorities to develop strategies to improve revenue collection to provide satisfactory services to communities and raise resources to pay salaries/wages on time.  

Local Authorities, and Zambia United Local Authorities Workers Union (ZULAWU) and Fire Services Union of Zambia (FIRESUZ) concluded negotiations for the 2022 improved Salaries/Wages and Conditions of service for Local Authorities employees. The negotiations, for the employees in Division II, III and IV, were held from 27th January to 5th February, 2022 in Lusaka.

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By staff analyst Government has increased salaries

Lifestyle

The confirmed 100% failure of the entire complement of grade nine 9 pupils at Mumena Secondary school of Kalumbila District of North Western Province has exposed the inequalities that rural learners face compared to their urban counterparts.

The saying that education is a great equalizer is more easier said than done. Mumena Secondary school is a rural school in Kalumbila District of North Western Province, located about 30 km away from Solwezi town. Imagine schools that are 100 or even 200 kilometers from the provincial capitals.

The Examinations Council of Zambia – ECZ by this revelation should now be compelled to be making the entire country school examinations results statistics available than continue with the current masking were only the high level national and provincial averages and statistics of exam results are publicly available.

ECZ as a matter of national interest and equity should publish the examination results statistics that shows how rural schools have been performing relative to their urban schools, so that government policy can be informed as regards to resource allocation. How many rural schools recorded over 90%, 80% or even 70% failure rate?

To further investigate if such results were there is 100% failure rate are feasible, the Zambian Business Times – ZBT exclusively interviewed Author of Exams made Easy, Rozious Siatwambo who diclosed that it is difficult to understand that all the 38 candidates at the school who had sat for the 2021 grade 9 exams failed.

Dr. Siatwambo, who is also CEO of Great North road Academy, noted that where the matters of exams is concerned, it would be unfair to put a blame on the learners or the examiners adding that other pupils who had sat for the same exam in different schools performed better than the said school.

He added that it is a concerned school and it really need to look into its teachings. Meanwhile, the National Action for Quality Education in Zambia (NAQEZ) has described the 100% failure at mumena secondary school as an academic taboo.

NAQEZ Executive Director Aaron Chansa said the ugly reality at Mumena School, has raised fundamental academic, social and cultural questions about this school. Chansa further noted the need for honest scanning of the academic background of the said candidates, the absenteeism rate by both teachers and learners, the school environment, teacher motivation at the school, the attitude of the learners and the community towards school as well as the relationship between teachers and the school administration.

He has also urged the Ministry of education to further investigate the levels of parental support the school received, the commitment of teachers to work as well as availability of teaching and learning materials at the affected school.

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The confirmed 100% failure of the entire