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Human Rights Defender and Alliance for Community Action Executive Director Laura Miti has refused to comment on assertions that she is speaking out on perceived ills in the United Party for National Development – UPND government because she has been left out of the soon to be announced cabinet by President Hakainde Hichilema.

Mitti responded that “ I have no comment and I never comment on such matters”. This was in response to a question that some ruling UPND supporters have accused her of speaking out because of being bitter after realizing that she has been left out of the soon to be announced cabinet.

Miti emphasized that only holders of office that have been officially appointed must be the ones who give information about the affairs of the head of state and not party functionaries.

Speaking in an interview with the Zambian Business Times – ZBT, Miti stated that this stance can be checked if there are some legal backing with qualified lawyers. She however refused to comment on assertions that she was bitter because she has been left out of HH’s cabinet which is expected to be announced soon.

Miti caused a social media stir when she questioned why the ruling UPND Secretary General Batuke Imenda (a Political Party official) was the one to issue a statement that newly inaugurated President Hichilema would not relocate from his private mansion in New Kasama area of Lusaka to Nkwazi house at State House when his is not a government official.

Nkwazi house is and had been the official residence designated for the serving Zambia head of state and President. President Hichilema was also reported to have opted to use a private vehicle after being sworn in, an action that has been reported to have destabilized state security operatives.

She question that “Why would the UPND Secretary General inform the nation where the President will live? Not his role! If the substantive spokespersons are not in place, then let the administration keep quiet about certain matters. There should be a clear separation between party and state. No more anarchy please”.

Imenda has since retracted his statement and clarified that the statement was his own opinion. A scenario that has added for the need and calls for President Hichilema to timely appoint substantive officials to put an end to this “anarchy”.

Miti later on posted on her social media page that “I hope that, one day, our economy will improve so that we don’t have half the country wanting to be Ministers, Ambassadors and Spokespersons in a new government. The stampede for jobs being reported right now is the direct result of government being the main employer and source of business. Gosh, political jobs are even, disturbingly, seen as a source of wealth”.

She further stated that “Anyhow, my hope is that President Hichilema will announce a lean Cabinet – we actually do not need that many Ministers. The reward culture is what kills administrations. It means people who may have contributed long, hard or recognisably to get a President elected, get jobs ahead of people who would better execute the demands of office. That’s not good for the country.

Human Rights Defender and Alliance for Community

Zambia has enough resources and local but internationally renowned expertise that can solve the external debt challenge without the need of getting on an International Monetary Fund – IMF extended credit facility. This follows indications that the new UPND government is set to sign up and get the country on an IMF bail out package.

Patriots for Economic Progress – PeP President Sean Tembo who is also a financial expert has indicated that if the tax leakages were sealed, the country would not need to go for an International Monetary Fund (IMF) programme as it will be able to meet its debt obligations with the available resources. He said PEP was not in support of the country being put on an IMF programme because of its implications on the general economic management.

Tembo explained that when a country subscribes to an IMF programme, it commits itself to run the economy in accordance with the IMF conditions of which some of them were retrogressive. “When you subscribe to an IMF programme you are basically committing yourselves to run your economy in accordance with the IMF conditionalities.

An IMF programme can run anywhere from 12 to 60 months and what you are essentially saying is that during the period of the IMF programme, you are going to handover the running of the economy to the IMF,” he said.

Tembo said, “When you look at the conditions for an IMF programme, you will realise that some are very retrogressive to the proper administration of an economy especially a developing economy.

He said the IMF believes in running the economy as if you are running a private profit seeking company, but you cannot run a nation like that because there are other social considerations that you need to put onboard.

He said for example, if the country goes on an IMF programme, it would mean that some Government programmes such as the social cash transfer and the farmer input support programme (FISP) would have to be discontinued as a requirement of the IMF.

Tembo said some of the conditions might be that you fully or partially privatize parastatal entities that are loss making among others.

“So if you look at those conditions and were we are, it would not be a good idea measure to implement because when you look at things like social cash transfer. And when you look at how the IMF disburses funds, you realise that they do not disburse the money as a lamp some, they disburse in small instalments based on your meeting their conditions,” he said.

Tembo indicated that, “When you look at money that comes in installments, as a nation there is very little you can do with it, you cannot even refinance your external debt such as the Eurobond. So government may end up spending that money on other things like recurrent expenditure and you find that you remain with the huge IMF loan, which needs to be repaid back because it is a loan and yet you fail to point at what you used that money for.

“If you look at our country’s challenge, you realise that there is largely over borrowing and so if our biggest problem is over-borrowing, then how can the solution to that borrowing be additional borrowing even if that additional borrowing is from IMF, it simply does not make sense.

“We are hopeful that the new government will not go the IMF way because such a root is retrogressive,” he added.

Concerns are now being resounded on the pros and cons of getting on an IMF program. Zambia has had a difficult historical relationship with the fund following the hard experiences during the Structural Adjustment Program – SAP implemented in the late 1980’s which eventually resulted in social and harsh economic challenges for ordinary Zambians.

Indications are that the IMF has since reformed from the proscription based SAP era but it still remains to be seen if their programs actually benefit the ordinary citizens of the countries that get on their programs. Other experts have called on the country to put together a well trained and experienced negotiations team from Zambia to ensure that the program if gotten, is fit for purpose.

 

Zambia has enough resources and local but

Prominent constitutional lawyer and state counsel John Sangwa has weighed in the current debate that newly inaugurated President Hakainde Hichilema has delayed announcing his cabinet pending the swearing in of members of parliament.

Sangwa has clarified that the president can appoint his cabinet even before the swearing in of elected Members of Parliament (MP), bring closure to views that the perceived delay in announcing cabinet is a result of legal impediments.

The constitutional lawyer however clarified that said the elected Members of Parliament cannot transact the business of the house or take their position as members of parliament until they have taken oath or have been sworn in, as required by law.

Speaking in an exclusive interview with the Zambian Business Times – ZBT, Sangwa said the oath is a necessary requirement before the elected members of parliament can start performing the functions of their office.

He said one is a member of parliament the moment they are declared duly elected or winner of a parliamentary seat but the swearing in is a formality which is required before one begins doing the actual work as an MP.

“Just like ministers, even if he appoints them, they won’t just assume office they have to be sworn in, to take oath, so a person that is elected member of parliament once nominated minister he will not assume the office unless he has taken oath”, he said.

Sangwa said there is no timeframe set in which the president should appoint his cabinet but the earlier one does it, the better. “For example, President Lungu must have mentioned some cabinet ministers when he was sworn in in 2016, on the same day he was able to identify a few people as his ministers so there is really no timeline set, it is all based on the discretions of the president”, he said.

President Hichilema has been accused of delaying the announcement of his cabinet when its now over one week from the time he was pronounced winner of the 12 August 2021 polls by the Electoral Commission of Zambia – ECZ.

Prominent constitutional lawyer and state counsel John

The recent appreciation of the Kwacha and the subsequent adjustment in retail prices of Motor vehicles and other imported products in the inflation basket have contributed to the decrease in Zambia’s Annual inflation rate for August to 24.4%

Zambia’s annual inflation rate for August 2021 has decreased to 24.4% from 24.6% recorded in July 2021. This indicates that on average prices of goods and services increased by 24.4% between August 2020 and August 2021 reflecting the easing of inflation for non-food items.

Zambia Statistics Agency (ZamStats), interim statistician General Mulenga Musepa said the decrease in the annual rate of inflation was mainly attributed to price movements in non-food items.

He was speaking during the ZamStats monthly bulletin for August 2021 attended by the Zambian Business Times-ZBT. Some of the motor vehicles sort out for included Toyota Hilux, Toyota corolla, Nissan Almera 1.5 L Acenta, second hand vehicles and Nissan pick Hardbody.

The price of a Toyota Hilux reduced from K1,426,950 in July to K1,085,775 in August (11.77%), Toyota corolla reduced to K885,500 in August from K1,275,195 in July (34.61%), the Nissan Almera 1.5 L Acenta reduced to 553,168 in August from K622,336 (11.88%).

The price of the Nissan Pick hardbody reduced from 697,840 to 580,233.50 in August (3.34%) while the price for second hand vehicles reduced to K82, 328.58 from K85, 924.25 in July 2021 (27.20%).

“The annual non-food inflation rate for August 2021 was recorded at 16.3 percent from 17.0 percent in July 2021. The decrease in inflation rate was mainly attributed to Price decreases in Purchases of Motor vehicles (Toyota Hilux, Toyota corolla, Nissan Almera 1.5 L Acenta, Nissan Hardbody),” Mupesa said.

He said the annual food inflation rate for August, 2021 was recorded at 31.6 percent compared to 31.2 percent recorded in July 2021, an increase of 0.4 percentage points.

Mupesa said this was mainly attributed to increases in prices of food items such as Meats (Brisket, Mixed Cut, T-bone, Beef Sausages, Goat meat, chicken frozen and chicken live); and Fruits (Oranges, Lemons, Bananas, Apples).

Among the most essential food items, Beef sausages the year on year inflation rate of 67.06%, Brisket 57.71%, Mixed Cut 59.72%, T-bone 60.16%,  Goat meat , chicken frozen  58.90%; and chicken live 88.60% and Fruits (Oranges 38.20%, Bananas 23.82%, Apples 43.97%).

Mupesa said an analysis on a monthly basis, of retail prices between July, 2021 and August, 2021 shows that the national average price of a 25 kg bag of Breakfast Mealie Meal decreased by 0.21% from K141.77 to K 141.47 while the national average price of a 25 kg bag of Roller Mealie Meal increased by 0.5 % from K110.90 to K111.45.

He said the national average price of a 20-litre tin of Maize Grain increased by 2.45% from K58.38 to K59.81.

Mupesa said on an annual basis, the analysis of retail prices between August, 2020 and August, 2021 shows that the national average price of a 25kg bag of Breakfast Mealie Meal increased by 10.69% from K127.81to K141.47 while the national average price of a 25 kg bag of Roller Mealie Meal increased by 12.87%nfrom K98.74 to K111.45.

He said the national average price of a 20-litre tin of Maize Grain increased by 15.13 percent from K51.95to K59.81.

 

The recent appreciation of the Kwacha and

The Competition and Consumer Protection Commission (CCPC) tribunal says the matter in which Lafarge Zambia Plc, Mpande Limestone Limited (commonly known as Sinoma Cement) and Dangote Cement Zambia Limited appealed the CCPC board’s decision of the three companies reverting to pre-cartel prices is still before the tribunal.

Head of Tribunal Secretariat Kalumba Chulu said the matter is still being heard and judgement waited upon but could not confirm when the case would be concluded. This is despite the fact that this directive was issued five months ago.

When contacted for a comment, CCPC Senior Public Relations Officer Namukolo Kasumpa said she could not comment on the matter as it was before the tribunal. CCPC management issued the directive but CCPC appeals tribunal has dragged and is unable to share timelines of when it would reach its decision, a situation that has led to frustrations among expectant members of the public.

On 5 March 2021, the commission confirmed that they had concluded their investigations into cement price hikes after closely observing the operations of the market players in the cement market, which had led to the commission instituting investigations into a possible cartel conduct in January 2020.

This was after a year of investigations, which had seen the price jump to levels, which have resulted in most construction projects across the country stalling due to cost escalations.

On March 31, 2021 the board of commissioners of CCPC fined Lafarge Zambia Plc and Mpande Limestone Limited 10% of their annual turnovers for 2019 and another 10% of their annual turnovers for their the two companies 10% of their annual turnovers for the year 2019 and another 10% of their 2020 annual turnovers for price fixing and division of markets.

The commission’s board further ordered the two companies to revert to pre-cartel prices ranging between USD 4.50-USD 5 (K83 per 50kg bag at current exchange rate of K16.5 per US dollar) for a period of one year from the date of receipt of the board decision pursuant to section 59 (3) (b) of the Act

Dangote Cement Zambia Limited was granted full leniency for having cooperated with the commission during investigations.

A month later, the top three cement companies who were ordered to cut cement prices and revert to what was described as pre-cartel prices ranging between US$4.5 to US$5 per 50kg all defied the order.

A check done by the Zambian Business Times – ZBT with all the three cement producers who had been ordered to cut prices revealed that none of them had reduced prices. One of the cement companies ordered to cut prices – Lafarge Zambia confirmed with ZBT that they had mounted a legal challenge against the decision.

Lafarge Zambia also confirmed that they had appealed against the Competition and Consumer Protection Commission (CCPC)’s decision alleging that the company contravened the Competition and Consumer Protection Act.

The company denied participation in an alleged price-fixing and market allocation collusion in the cement market and looked forward to presenting its case.

Responding to ZBT, Lafarge Corporate Affairs and Communications Manager Sarah Banda said in its notice of appeal filed before the Competition and Consumer Protection Tribunal, the company emphasized that it cooperated with the CCPC throughout its investigation into the cement industry.

Banda said Lafarge provided numerous detailed submissions, documents and testimonies to demonstrate the lawful nature of its operations in the market. The prices had therefore not been reduced pending the tribunal process.

A further check with the other cement firm that was also fined and ordered to cut cement prices, a source who asked for their details to be withheld from Mpande Limestone Limited ( popularly known as Sinoma cement) confirmed that the company had not reduced its cement prices.

Speaking exclusively to ZBT, the source said according to the information circulating within the company, Sinoma did not intend to revert to pre-cartel prices.

“Before any price adjustment or increment they need to inform us internally, so we haven’t been informed, it means we are not reducing. We need adequate time to communicate to our clients to say okay, cement prices are going up or they are being reduced”, the source told ZBT.

The most shocking thing is that even the cement company that was not fined but ordered to cut prices, Dangote Cement, also refused to badge. Dangote Cement also confirmed that the company had maintained its cement prices.

Cement prices were expected to come down at the beginning of May 2021 after CCPC confirmed that they had given the cement companies one month probation to implement the order. It seems instead that the cement firms opted to use the one month to put together a legal defense that would effectively derail the order.

Court processes in Zambia take time to settle, some legal experts have estimated an average of three years needed to litigate and have a judgment issued in complex cases such as this one.

 

The Competition and Consumer Protection Commission (CCPC)

About forty (40) top and attractive government  jobs at Ministry of Foreign Affairs are up for grabs as the President-elect Hakainde Hichilema prepares to swear in his new cabinet and appoint new heads of foreign missions or ambassadors.

Zambia has about 40 missions, which means that most of them, if not all of them will need to be filled up with new staff following the change of government. Zambia has been preaching about moving from political to economic diplomacy and this provides a fresh starting point to achieve this ambition.

A source at the Ministry of Foreign Affairs whose identity has been withheld told the Zambian Business Times – ZBT that the President-elect HH is expected to appoint about 40 heads of mission or ambassadors as he takes over from President Edgar Lungu.

It is expected that the current serving ambassadors or heads or mission will be recalled from service sooner or later as it has been the trend with previous changes in Government. However, this may not be implemented as fast as many new Government enthusiasts would wish because prudence has to be exercised due to the current state of the treasury. There is a constraint on availability of funds as the economy has just emerged from a period of economic contraction.

Nonetheless, for the few that were seen to be more outrightly aligned to the outgoing Patriotic Front – PF, we expect to these recalls happening earlier than others. It’s an expensive exercise as it involves relocation of families from abroad.

However, the turn of events may be different this time around. According to the President-elect Hakainde Hichilema, his cabinet, heads of government and quasi government institutions including High Commissioners and Ambassadors will be drawn from all the ten provinces of the country.

The president also said the appointments would be based on merit, competency, qualifications and ability to deliver. “We would like to state that our cabinet, heads of government and quasi government institutions including Ambassadors and High Commissioners will be drawn from all corners of Zambia. The additional criteria will be competency, qualifications and ability to deliver,” President elect Hichilema said.

Some ruling United Party for National Development – UPND insiders are currently lobbying for appointments though the government has not yet stated what criteria would be used to make the final appointments.

Experts have been calling for career diplomats to be appointed in these positions to part ways with appointing political party zealots who at most times are under-qualified. Some of the foreign missions Zambia maintains include Angola, Australia, United States of America, European Union, Zimbabwe, Tanzania, India, Germany and Botswana among others.

About forty (40) top and attractive government

Arlington, VA – Today, Enoh T. Ebong, Acting Director of the U.S. Trade and Development Agency, led a U.S. Presidential delegation to Zambia that will attend the inauguration of President-elect Hakainde Hichilema on Tuesday, August 24.

“The people of Zambia exercised their political rights and voted in historic numbers in Zambia’s August 12 general elections. We congratulate them, and President-elect Hichilema, on this momentous occasion,” Ebong said. “Across the U.S. government, agencies such as USTDA look forward to building a strong bilateral relationship with Zambia as it strengthens the institutions that undergird its democracy.”

USTDA has a long history linking U.S. businesses to export opportunities by funding project preparation and partnership building activities that develop sustainable infrastructure and foster economic growth in partner countries such as Zambia. Over the last two decades, USTDA has supported 19 projects in Zambia, including recent support for the roll-out of solar microgrids and the development of the country’s renewable energy sector.

Arlington, VA – Today, Enoh T. Ebong,

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Buya Bamba, Zambia’s largest potato producer has disclosed that they have completed the construction and intend to commission their US$7 million new factory that has been built over the last three years in Lusaka.

The new factory will be one of its kind and is expected to cut on the importation of frozen chips from mostly South Africa, which will lead to forex savings for the Zambian economy. Zambia has had no commercial frozen chips plant which had led to imports for frozen chips.

Company Managing Director Anthony Barker told the Zambian Business Times – ZBT that the commissioning of the factory would enable the company to supply potatoes to fast food chains such as Hungry Lion that had previously been importing frozen chips.

When asked on market sentiment that his company has been restricting seed access to control the local market, Barker told ZBT that seed potatoes are perishable products and cannot be kept in a warehouse for long, therefore they are kept in a cold store.

So there has been some misunderstanding when people are making orders, at times, our Lusaka warehouse may have run out and the orders can only be fulfilled by getting the seed potatoes from our Mbala cold stores.

Baker stated that Buya Bamba is able to supply the potatoes once orders are placed and when the seedlings are available. He noted that it also depends on order sizes, noting that certain quantities can be readily available, so those interested should proceed to make orders, even farmers who are not buying in bulk have access to seed potatoes.

He further stated that Zambia has peculiar weather, “unlike other countries that have more than one potato growing season, Zambia only has one season when seed potatoes are planted which is after the rainy season. Moreover, Zambia’s potato industry is in its infancy, overproduction or underproduction can destroy this industry overnight, therefore an estimated number is grown in order to avoid wastage and loses”.

He said the company estimates its orders for the next year and grows a quantity that the Zambian market can buy because seed has to be kept in cold stores, which are capital intensive to put up, adding that the seed potato product also have a limited lifespan in the storage facility in order to avoid compromising the quality.

He said the planting of seed potatoes is mostly done in Mbala around May-June, which are the coldest months and harvested in September adding that Mbala is a good place to grow the seed crop specifically because of the appropriate height of the land, temperature and being isolated from other agricultural areas, so viruses or diseases found close to Lusaka or other areas cannot attack the crop.

Baker explained that once the seed is harvested, variables such as the seed cleaning and quality controls are put in place before it is put in a cold store.

“Seed will only be available in November because now is our window period when we are growing it. We cannot store it for a long time, so November to December we load our cold store and release the seed to the market”, he said.

Barker said selling of seed begins in November-December because farmers with no or limited irrigation cannot plant later than January as the crop takes about four months to mature, so if farmers plant in January or February, they will need irrigation by the time the crop matures.

“When they come to buy the seed, we advise them to say, do you have irrigation, if yes, how much hectarage do you have, if they don’t have irrigation, we advise them to plant certain varieties or not to plant at all as they will lose money because it won’t mature”.

We have seed available for anyone who wants, when they make an order, we will bring it from the cold store. Otherwise, if we bring it in advance and wait for customers, the seed will get spoilt and we will have to be thrown away ”, he said.

He noted that some varieties allow farmers to plant late and harvest early as they grow quickly, farmers can plant in January, and the potatoes can grow after four months taking advantage of the rainy season.

He said some commercial farmers plant in winter as they have irrigation while other varieties do well in the rainy season, noting that specific varieties are grown for specific uses such as for crisps and other varieties are grown for making chips or table potatoes.

When asked what Investments are needed to make Zambia self sufficient in potato production and even become a net export, Baker told ZBT that there is need to invest in more cold storage facilities if there is to be supply of potatoes all year round, adding that the company experiences supply challenges in March to May when there are not enough potatoes available.

Barker further told ZBT that with more people consuming potatoes, the demand has increased and the current national consumption is around 120,000 metric tonnes annually, adding that some potatoes from Tanzania also come into the country unnoticed.

He mentioned that population growth and urbanisation have also contributed to more people moving towards consuming potatoes which has also caused various fast food businesses to grow, noting that an additional 10,000 metric tonnes of demand is being added annually.

On the issue of expanding production through an outgrowing scheme for local farmers, Baker stated that financing outgrower schemes has been a challenge and the company tried it in the past but it was not successful. The company experienced various challenges and did not yield expected results.

To expand national production, Baker stated that there is need to identify areas where potatoes grow with little to no challenges and have various farmers grow the crop there, adding that having a centralised place where farmers take all their produce, which Buya Bamba could do on behalf of the farmers, would help increase production.

He mentioned that the company is having discussions with various stakeholders in order to have similar crops taken to a central point because as long as individual farmers do it on their own and find a market in places like Soweto, they will experience challenges.

He emphasized that irrigation is important for potatoes as they can best be grown in one season and this affects their prices when demand for the products becomes too high. When asked to give an estimate of capital needed to engage in winter Potato cultivation, Baker estimated that one would require about US$10,000 to grow a hectare of potatoes as they require high input.

“Limiting factors of small scale farmers is access to the formal market, small scale farmers grow their potatoes during the rainy season, so they have to clean their produce and sometimes don’t have proper cleaning equipment and the formal sector requires a certain  quality standard, so with the coming of the factory, the produce will go straight for processing”, he said.

He mentioned that the company has heavily invested in the potatoe industry in order to make the country’s potato production sustainable, adding that Buya Bamba has invested in over 30,000 tonnes of cold storage facilities In Zambia.

Buya Bamba, Zambia’s largest potato producer has

The Association of Mine Suppliers and Contractors of Zambia – AMSCZ has bemoaned the low volume of business given or subcontracted to local mine contractors and suppliers by Chinese owned mine companies in Zambia.

AMSCZ president Augustine Mubanga said currently very few suppliers are getting business from most of Chinese owned mines in Zambia like CNMC Luanshya Copper Mines.

Speaking in an interview with the Zambian Business Times-ZBT, Mubanga said, “Business in Chinese owned mines is not so much to write home about because most of the goods and materials are procured from China, so they bring all that stuff from China by themselves.

Mubanga said this situation does not allow local suppliers opportunities to business with the said companies.

“We have very few suppliers supplying CNMC Luanshya Copper Mine, business in Chinese owned mines is not so much to write home about because most of the goods and material are procured from China, so they bring all that stuff from China by themselves which does not give opportunities to local contractors and suppliers to do business,” he said.

Mubanga said the business that is given to locals is very insignificant and nothing to write home about. He said the association has been pushing to have a meeting with the Chinese Ambassador to Zambia to discuss the same issues of local Mine suppliers and contractors doing more business in Chinese owned mines.

Mubanga said unfortunately, the association has not been able to secure a meeting with the ambassador, as there has been no response from him. “From our previous push, we were requesting for a meeting with Chinese Ambassador to Zambia to discuss the same issues of business in Chinese owned mines,

“Unfortunately we could not secure a meeting with the ambassador, so that we can table all those issues. We could not get any response at all. He however, said, for the few that are doing business with the Chinese companies, they have not had issues with payments.

Some of the notable Chinese owned mines in Zambia include, CNMC Luanshya Copper Mine, Chibuluma Mines Plc and Chambishi Copper Smelter among others.

The Association of Mine Suppliers and Contractors