Standard Blog Whole Post - Zambian Business Times

0 likes

Road Transport and Safety Agency (RTSA) says

Companies

Depreciation Kwacha hitting hard on local businesses

The Private Sector Development Association-PSDA says most Small and Medium Enterprises (SMEs) are still facing challenges with their businesses as they were greatly affected by the depreciating Kwacha whose effects are now compounded with the COVID 19 pandemic.

Association Chairperson Yusuf Dodia said inflation which is almost at 15%, deteriorating exchange rates and high interest rates incurred from borrowing money from the bank have negatively affected most businesses.

Speaking in an exclusive interview with the Zambian Business Times-ZBT, Dodia said the high inflation rate means an ordinary producer of goods needs to increase prices which are pegged in Kwacha to have a meaningful return to run their businesses as the currently high inflation rate impacts on almost everything in the economy.

He also told ZBT that with the depreciating Kwacha, it means the prices of imported goods are shooting up to almost double due to buying in foreign currency.imported inflation is also affecting locally produced goods and services which have imported inputs.

“Most of our small and medium size local businesses rely heavily on either importing inputs into their business or trading, which means importing goods and then reselling them therefore with the high exchange rates, most businesses have hiked prices which affect demand and are just managing to survive, he said.”

Dodia added that small and medium size companies that are trying to borrow money from the banks or other financiers have to pay high interest, which means the prices of the products they are manufacturing or buying and selling increase too because of the high interest rates.

He also noted that loadshedding has continued to affect most businesses and with ZESCO announcing going back to the 8-12 hour loadshedding schedule, means that most businesses have to close down for half the day which impacts on the productivity and sales of the businesses.

Stakeholders have warned the government that there is urgent need to manage the macro economic fundamentals to safeguard the socio-economic wellbeing of the people. Large infrastructure projects in the absence of strong management of the exchange rate anencephaly inflation will negate the benefits accruing from the massive infrastructure projects undertaken.

November 12, 2020

1 Comment

0 likes

The Private Sector Development Association-PSDA says most

Companies

GMO imports into Zambia still regulated

The National Biosafety Authority (NBA) has urged everyone who wants to deal in products that contain Genetically Modified Organisms (GMOs) to ensure that they get permits from the authority to avoid having their products seized and destroyed.

NBA Communications Officer Sandra Lombe said individuals that fail to adhere to these regulations can be fined at least 100,000 penalty units, face 10-15 years imprisonment or both in some instances therefore it is important for everyone to adhere to these conditions.

Speaking in an exclusive interview with the Zambian Business Times-ZBT, Lombe said no one has been fined or imprisoned yet because most of the people found wanting are first time offenders but other people should not take advantage of that.

“We seize and destroy products if permits are not produced which is enough punishment because these people suffer losses, imagine you have a truckload of goods worth thousands of kwacha or dollars and these goods are destroyed, it means you have wasted time, money and the profits you would have accrued from the products, she said.”

She also said that it is easy for people to get permits that allow them to trade in products that contain GMOs, therefore it is disappointing to find that some people have chosen not to comply.

“We urge everyone who wants to deal in products that contain GMOs to get permits from the authority or copies of permits from their local distributors where they are getting their products from. They will get it for free from their distributor who is the one that pays therefore it is strange that some companies have continued to trade without permits, she said”.

Lombe said the authority has a mandate to regulate everyone and ensure the safety of humans, animals and the environment.

She has also noted that the number of people getting permits or having them renewed is impressive and this can be seen from the spot and compliance checks that are being conducted that a lot of people are complying.

Some stakeholders have called for the total ban on importation of products and especially foods containing GMOs to safeguard the health of the nation. The increase in cancer incidents and other health related problems among Zambia’s had been attributed to consumption of foods containing GMOs but no full study has been done to confirm these allegations.

November 12, 2020

0 likes

The National Biosafety Authority (NBA) has urged

Why Comprehensive Sexuality Education is necessary in schools

Families are Nations Founder and President Judith Mwila has advised members of the public to understand what is contained in the curriculum of comprehensive sexuality education – CSE before deeming it inappropriate.

Mwila said the curriculum is necessary and has relevant topics that need to be discussed in order for young people to know about their sexuality and sex education especially because we are living in times where information is easily accessible online.

Speaking in an exclusive interview with Zambian Business Times – ZBT, Mwila said the only thing that needs to be observed is age appropriacy ensuring that the right information is given to the right age groups.

She stated that there is nothing outside of Zambia’s teaching practice in the comprehensive sexuality education curriculum, therefore individuals should take time to read and understand before dismissing it.

“The only thing we need to do is determine in what ways we give the information because as Africans we have a different way of explaining certain things to different age groups, she said”.

She added that people should not be ignorant about the curriculum and only question when to teach what and to whom, as this information should be given to our learners from official sources, otherwise there is nothing wrong with providing comprehensive sexuality education in schools.

Mwila has urged the individuals spearheading comprehensive sexuality education to allow and encourage people to discuss it more so that they can understand it. Sexuality is part of adult life and children need to given vetted and good quality information so that they take the right decisions as they approach adulthood.

Most learners in Zambia have no official source to learn sexual education and end up getting wrong information from peers and friends who in most instances are also ignorant. With the advent of technology, especially mobile internet, most learners get exposed to sexual content and have no one to ask to get formal and approved information on best practices.

More over, most of the cultural practices in Zambia does not give a platform for parents or guardians to discuss sexual education with their children and especially teenagers who urgently need this information, so children or teenagers end up with limited or become miss informed on sexual education.

November 11, 2020

0 likes

Families are Nations Founder and President Judith

Tech

Curriculum in Universities to blame for low ZIALE pass rates

Former Law Association of Zambia (LAZ) president Eddie Mwitwa says there is need to interrogate the curriculum that students are getting from their various universities before enrolling into the Zambia Institute of Advanced Legal Education (ZIALE).

Mwitwa said LAZ has the mandate to influence the curriculum of universities, therefore it should examine the quality of learning that law students are getting from their various institutions before they enroll at ZIALE.

Speaking in an exclusive interview with Zambian Business Times – ZBT, Mwitwa said ZIALE works with by products or lawyers that have been prepared by various learning institutions and it only helps these lawyers to become practitioners, therefore there is more work that needs to be done at the grassroot level.

Mwitwa also said that in an effort to improve the pass rate, the previous ZIALE students underwent a pilot project where students were given six months to do attachments and six months to attend classes which has never happened in the previous years.

“These results are for students who were taken on a parallel stream in an effort to produce better results. They were given time to do attachments and time to attend classes as opposed to the usual set up where they would do attachments during the day and attend classes in the evening, he said.”

He said there is need to do a scientific analysis and determine what impact the pilot project had on this year’s pass rate.

Mwitwa also explained that some students face challenges in terms of getting attached to law firms or legal institutions because there are more students enrolling into ZIALE compared to the number of law firms or legal institutions in the country.

He further said that this negatively impacts students because ZIALE courses are practical, so students need to get practical experience in order to appreciate what they are being taught.

The former LAZ President further added that students were having online classes and may have had challenges logging in, asking lecturers questions as well as with load-shedding, so this can also interrupt students’ ability to participate fully.

Mwitwa also notes that only 14 students out of 179 (about 9%) cleared all courses in full in the recently held 2020 Zambia Institute of Advanced Legal Education (ZIALE) examinations but it may be that the majority only failed in a few courses.

Some stakeholders have called on ZIALE to decentralize their operations and demonopolize the bar exams. Having only one centre when the country has expanded may be one of the reasons stifling innovation and alternative thinking around how best to offer bar training.

Moreover, Zambia has a disproportionately higher number of lawyers in Lusaka leaving the other provinces with little legal options. Most of these lawyers that pass the bar exams end up settling either in Lusaka or Copperbelt leaving the other provinces with limited options.

November 11, 2020

0 likes

Former Law Association of Zambia (LAZ) president

Lusaka records the highest child defilement cases

Lusaka has so far recorded the highest girl child defilement cases with about 301 reported and confirmed cases. The cases of child defilement are still rife even after stiffer punishment being meted out to offenders.

Despite the efforts by both government and non-governmental organizations in the past few years, children, especially the girl child have fallen victim to defilement. Child defilement cases are complex as the children are in some cases defiled by close relations.

The government through the law enforcement have been trying to fight defilement through stiffening the punishment for perpetrators but cases have still continued to rise. There is need for members of the public to continue to report all cases despite the consequences so that this scourge is brought to an end.

Defilement victims usually suffer from physical, emotional and mental trauma and this poses as a threat to their wellbeing. Others fall pregnant while others suffer from health complications such as HIV\AIDS, other Sexually Transmitted infections or fistula.

In a statement made available to the Zambian Business Times – ZBT by Zambia Police Spokesperson Esther Katongo, Lusaka province recorded the highest number of child defilement cases with 301 translating to 42% of the child defilement cases reported countrywide.

She further stated that Central Province recorded the second highest with 102 cases translating to 14% followed by Eastern province with 89 cases translating to 12%. Southern Province had 48 cases translating to 6% of all the reported defilement cases.

She added that other provinces like North western recorded 35 cases representing 5%, Luapula had 27 cases representing 4%, Western and Muchinga recorded the lowest cases of 23 each representing 3%.

Due to the complex nature of child defilement cases, some provinces record lower cases not because there is low occurrence incidents, but due to the failure by relatives to report the cases to law enforcement agencies. It is therefore incumbent upon all members of society to take these matter seriously and were it occurs, report to police so that offenders are made to account for their actions.

November 11, 2020

0 likes

Lusaka has so far recorded the highest

Companies

ZRA impressed with rental income tax compliance

The Zambia Revenue Authority (ZRA) has revealed that there has been positive response from the public regarding payment of withholding tax – WHT on rental income.

ZRA Acting Corporate Communications Manager Robert Zawe said it is every landlord’s duty to pay tax through the tenant and has encouraged everyone to do so in order to ensure that they contribute to the main source of the country’s revenue.

Speaking in an exclusive interview with the Zambian Business Times – ZBT, Zawe said ZRA has various sensitization programs on various tax matters He urged the public to voluntarily comply in order to avoid being penalized as the goal is not to penalize but build consensus and create mutual relationships through tax education.

He explained that taxes build the nation as they help to develop the country’s public goods such as health, education and infrastructure systems therefore it is everyone’s responsibility to ensure that they contribute to funding the needs of living in a civilized society.

He added that it is a requirement by law that everyone pays tax therefore whoever chooses not to remit tax is evading it and the law will soon catch up with them. Landlords should take this opportunity to regularize their withholding tax due on rental income to avoid penalties.

2 Comments

0 likes

The Zambia Revenue Authority (ZRA) has revealed

Current economic recession hurting households

The current economic recession if not well handled and supported will a properly implemented stimulus package will lead to social unrest as the cost of living continues to rise while incomes remain stagnant with more people losing jobs in both the formal and informal sector.

Zambia is among countries whose economy has been adversely affected by covid-19 pandemic with the partial lockdown lagged effects now conning to the head. Many businesses like bars, hotels etc which also have downstream and upstream supply chains have all been adversely affected and are still struggling to get back on their feet.

Many Zambians are struggling to survive because the cost of living has gone up and average Zambians are finding it difficult to survive. Though the official statistics are reporting moderate inflation upswings, the reality on the ground is that people are hurting.

In a press statement made available to Zambian Business Times – ZBT, Chama Bowa-Mundia Social and Economic Development Manager at JCTR said that Zambia has seen a rise in the cumulative number of COVID-19 cases which now stands at 16,770 since two first cases were recorded in March 2020.

Chama said that the nation has in the past few months witnessed job losses, reduced economic activities and is projected to close the year with an economic [recession] growth rate of minus 4.2%.

JCTR added that the current context is also characterized by 16% inflation rate ( year on year for month of October 2020), discussions around Zambia’s increasing debt levels and the call by Government for debt cancelling to free up its fiscal space in view of COVID-19.

Zambia also has in the past few weeks witnessed a shortage in the supply of fuel in some parts of the country. He also explained that the shortage brings about its own challenges in the production chain crippling businesses activities as fuel is an essential input in the economy.

Furthermore, JCTR said that the cost of living for a family of five is measured by the JCTR for the month of October 2020 stood at K7,060.29, a decline of k11.08 from September basket of K7,071.37. He said that the reduction the basket can be attributed to reductions in some food items.

Chama further explained that other fruits moved from K261.19 to K206.65 for 14kg, showing a reduction of K54.54, kapenta reduced by K40.22 moving from K231.62 to K191.40 per kg, banana reduced from K181.66 to K163.57 showing a decline of K18.09, soya pieces reduced by 14.97 moving from K104.85 to K89.88.

However, that was offset by increases in items such as mealie meal which moved from K164.85 in September to K187.28 showing an increase of K22.43, vegetables increased by K39.49 moving from K31.00 in September to K70.49 in October and the price of charcoal increased by K18.67 moving from K273.33 to K292.00.

Chama said that undoubtedly, individuals, households and firms are facing significant challenges given the prevailing economic context. He disclosed that the JCTR therefore calls on the government to address the key challenges that the nation is facing. They added that the shortage of fuel needs to be urgently addressed given the important role it plays in facilitating various economic activities.

JCTR also explained that the center also continues to put emphasis on the need to guard against increases in macroeconomic variable such as inflation which further erodes the disposable incomes of households thereby compromising living standards.

Chama said that the JCTR reiterates the need to rein in an expansionary fiscal stance that has over the years threatened the delivery of robust and inclusive social and economic development. He said that “in our quest for better Zambia, the poor and the marginalized must be ignored.”

0 likes

The current economic recession if not well

Counterfeit notes and money circulating scams on the rise!

The Drug Enforcement Commission (DEC) has arrested 10 people who include one juvenile for being in possession of counterfeit notes amounting to K42,000 and US$20,800 just in the third quarter of 2020 (July to September 2020).

DEC has noted that there has been an increase in the number of money circulation schemes (some WhatsApp scams) and has received several complaints and reports from the members of the general public regarding the matter. The commission has since urged members of the public to continue reporting such cases as well as seek clarity before investing their monies.

DEC’s Anti-Money Laundering Investigations Unit has concluded investigations into 38 cases involving over K106 million and about US$ 2 million for various money laundering related offences in the third quarter of this year.

The Commission said the formal sector dominated with 17 cases involving about K70 million and about US$2 million followed by the public sector with 12 cases involving about K31 million.

According to statement made available to Zambian Business Times – ZBT, DEC Public Relations Officer Theresa Katongo said the other seven cases involved individuals in the informal sector involving a total of about K6 million

She said five convictions were recorded from the seven concluded cases in court with one acquittal and one discontinued case. Katongo said the commission conducted nine money laundering awareness activities country wide in which 182 persons were sensitized.

0 likes

The Drug Enforcement Commission (DEC) has arrested

Agribusiness

Issue maize export permits on a quota system – Govt challenged

The Grain Traders Association of Zambia – GTAZ has disclosed that government has insisted on NOT issuing farmers with export permits which will allow them to export some of their maize even when they have worked hard and achieved a bumper harvest.

GTAZ President Chambila Simwinga said the association has on various occasions engaged government to allow their members to export maize but has not received a positive response.

Speaking in an exclusive interview with the Zambian Business Times – ZBT, Simwinga said government should allow farmers to export a reasonable quantity of maize (agree a quota system) and see what impact that would have on the country’s food reserve and market prices before ruling out the option.

“We have been lobbying with the government to say let us do the quarter system where we export say 50,000 tonnes of maize or mealie meal and then do an impact analysis and see whether we have depleted our stock or still have enough maize and decide whether to export again or not, he said.”

Simwinga added that government is still using the old sampling system and has overestimated the crop focus survey. “The current sampling number is 13,400 households out of the population of over 17 million, you cannot sample 13,400 households and arrive at the quantities of 3.4 metric tonnes to be harvested, it is not possible, their is need to look at the sample size, he said.”

He also notes that as an association, they have NOT been able to meet their target of buying 500,000 metric tonnes of maize. Simwinga said the government should consider the issuance of export permits as this will bring in the much needed forex and have an impact on the exchange rates.

Zambia has the potential to expand its maize production and make this an all year crop as the demand within the region continues to expand in line with population growth. Maize prices on the export market are also rising which makes maize cropping a potential high employment and high income earner for the country.

But the Ministry of Agriculture and its Agency, the Food Reserve Agency – FRA had been directed to buy up 1 million tons from the current farming season. FRA says they can buy the requisite stocks but the challenge has been on funding from the treasury (Ministry of Finance) which has not matched the targeted stock levels.

If there was competent implementation by both Ministries of Agriculture and Finance, the country by now should have bought the 1 million tones out of the estimated 3.4 million tons and started the exporting of the reported excess to gain forex which can support the local currency, the Kwacha which has depreciated by over 60% in 2020 alone.