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By Chola Mpasa
I am not sure how and through which channel to forward my proposals for the 2020 budget to the Minister of Finance, and am sure there are many more citizens who are in this position, the least I will do is put them on my FB page or submit to the Zambian Business Times – ZBT hoping someone can deliver my proposals to the right office.

Newly appointed Finance Minister Dr. Bwalya N’gandu on on record to have stated that “I will be presenting the 2020 national budget in the next few weeks and I wish to remind the business community and the public on the need to respond to government’s call for tax and non-tax proposals for the 2020 budget and the 2020-2021 Medium Term Expenditure Framework. We look forward to more engagements and cooperation with both the public and private sectors during the remaining quarters of 2019,” he said.

The Finance Minister was quoted as saying at the recent ZICA Annual Business Conference (ZICA ABC) in a speech read on his behalf. It is one thing to call for budget proposals and it is another to receive, accept and implement the proposals. First let us look at what the budget is.

What Type of Budget Is intended for 2020
A budget is an estimation of revenue and expenses over a specified future period of time and is usually compiled and re-evaluated on a periodic basis. Budgets can be made for a person, a family, a group of people, a business, a government, a country, a multinational organization or just about anything else that makes and spends money. At companies and organizations, a budget is an internal tool used by management and is often not required for reporting by external parties https://www.investopedia.com/terms/b/budget.asp

Having defined a budget, we should now look at what budget the current government is running. This is a difficult question to ask and answer. I am not sure what kind of budget this government is running. Is it an activity based budget?, a cash budget? or a “by election” budget? (a budget where development follows by elections) or whatever name can be given to such a happening.

It is important that before calls are made for people to submit to an important task/activity like a the national budget, there must be clarity and guidelines on the type of budget government intends to put in place for 2020. At least there must be some policy tone or policy statements to give some level of direction to the process.

Otherwise, you may end up submitting capitalist ideas when in fact it is a socialist government in place or it is a pro poor versus private sector driven budget. So, our appeal is that let government come up with some clear indications.

From my experience at company or corporate level, assumptions are made by management and/or board (Cabinet in the case of the national budget), for example on intended growth rates, exchange rates, projected staffing levels, branches and then you ask units (GRZ Spending Agencies and the public) to contribute to the formation and finalization of a budget or a strategic plan. In the absence of that, all submissions will be chaotic. It is like asking for ideas in a wilderness without boundaries.

Review of Past Year(s) budgets 
In order to try and understand what has been done in the past, I went to the Ministry of Finance website and obviously I was looking for the 2018 Annual report. https://www.mof.gov.zm/public- financial-management/

On detailed annual reports, I could only find the ones for 31 December 2011 and 2010 and on the summarised financial report section I could only find reports as at year end for 2012-16. As can be seen, annual reports for 2017 and 2018 are missing or are yet to be uploaded for reasons best known to the finance ministry.

So what does the constitution say about the preparation of these Financial annual reports for the Government of the Republic of Zambia (GRZ) for each year? Article 211 addresses this question and here is what it says. I have added notes in brackets and italics.

“(1) The Minister responsible for finance shall, within three months after the end of each financial year, prepare and submit to the Auditor-General the financial report of the Republic in respect of the preceding financial year. (by 31 March 2019 for 2018 financial year)

(2) The Auditor-General shall, within two months of receipt of the financial report, examine the financial report and express an opinion on the report. (by 31 May 2019 for 2018 Financial year)

(3) The Minister responsible for finance shall, within one month (by 30 June 2019 for 2018 Financial year) after the receipt of the Auditor-General’s opinion, lay the financial report, with the Auditor- General’s opinion, before the National Assembly. (Has this been done for the year ended 2018?Looking at the information available on Ministry of Finance website, are we not right to assume that the accounts for 2018 are not yet ready)?

(4) The financial report shall include information on— (a) revenue received by the Republic during that financial year; (b) the expenditure of the Republic during that financial year; (c) gifts, donations and aid-in-kind received on behalf of the Republic in that financial year (it will be interesting to see gifts that have been received on behalf of GRZ), their value and how they were disposed of; (d) debt repayments; (Very key, a breakdown by creditor will be of great value)(e) payments made in that financial year for purposes other than expenditure; (f) the financial position of the Republic at the end of that financial year; and (g) other information as prescribed.

So in the absence of publicly available latest audited financial statements for the government treasury for detailed accounts from 2012 to 2018 and for summarised accounts from 2017-18, how does the MinIstry of Finance expect people/the public to make informed submissions to the 2020 budget when the past accounts are not available?

My take is that the Ministry of Finance will do better first by complying with the constitutional requirements and making this information publicly available through the website ( we are driving for e-government). Make the detailed and/or audited financial reports for the missing years more especially for 2017 and 2018 available to allow the public review how GRZ finances have fared before asking for submissions.

In the private sector where I am familiar with budgeting process and protocol, there is no way you can go to a board to present a budget for next year in the absence of prior year and the latest audited Financial statements, as the management will get sacked.

We cannot go on as a nation presenting budget proposals year in and year out in the absence of latest audited GRZ Financial reports as required by law, and not just a law, an Act and by the Constitution. i.e. In the absence of proper accountability for past financial periods.

If these latest financial statements  are available, let Ministry of Finance offload them onto their website, so that we and the general public review them, then we can make informed proposals on the 2020 budget. In the absence of that, like I said, it is like making presentations/proposals in the wilderness.

Article 211-4 is very clear on the information that Finance Ministry must provide. It even requires an opinion to be given on “(f) the financial position of the Republic at the end of that financial year;” It is not right or should I say it is unfair to ask for budget proposals when we do not know the financial position of GRZ.

Latest quarterly Budget execution reports for 2019 are also missing on the website. Again how do you make 2020 budget proposals as a public when we are lacking information as to what has happened? so far in 2019 for quarters ended 31 March and 30 June 2019 in the budget execution, why are these reports not made public by updating the website?

Budget and Planning Legislation
In Article 205. The following shall be prescribed:
(a) the financial management and regulation of public funds; (b) the preparation of medium and long-term financing frameworks and development plans; (c) the budget preparation process; (d) public participation, at all levels of government, in the formulation of financing frameworks, development plans and preparation of annual budgets; (e) the content of the financial report of the Republic provided for in Article 211; and (f) the control and disbursement of appropriated funds.

Again article 205 of the Constitution of Zambia is very instructive in summary on the budget process. Has GRZ prescribed as required in d? ; (d) public participation, at all levels of government, in the formulation of financing frameworks, development plans and preparation of annual budgets;

The question is “are these regulations which will enable the public to participate “at all levels of government” in presenting these budget proposals followed? Does this lack of publicity and awareness of the public participation compromise the quality of the budget?.

In conclusion
There is a lot to be said on this call by the Finance Minister for public and institutional proposals for 2020 budget. My proposal to him is that first let him put his house in order. Disseminate to the public the processes as “prescribed” on how these proposals to the budget can be made.

I would even propose that may be he can go round the ten provincial centres like his predecessor did regarding sale tax and hold consultative meetings to enable maximum public participation and engagement.

But even before that, let’s the ministry of finance make available the latest financial statements of GRZ as at 31 December 2018, clearly indication the financial position of the Republic. Once this is availed, then some of us and all those like minded people, experts and other well meaning citizens will gladly present our 2020 proposals for the budget.

For now, there is lack of information on which to base our proposals as a public or organizations. These is need to widen participation and ideas sourcing to unlock the potential that has been talked about that Zambia has.

Chola Mpasa is a Financial Analyst and an ardent ZBT reader. For contributions or comments, post under comments column or send us an email to info@zambianbusinesstimes.com

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By Chola Mpasa I am not sure how

Markets

The Center for e-learning and Information Technology Research CeIT has awarded Atlas Mara a Business Tech Innovate – BTI award of excellence 2019 for the bank’s Tenga Mobile Wallet service. The Tenga mobile money service has now crossed the 300,000 customers mark.

The BTI award of excellence recognizes firms or companies that have introduced innovations in technology that advance business and information technology. Presenting the award at the Bank’s head office in Lusaka on 12 September 2019, CeIT Representative Kibly Lungu commended that Bank for its initiative of using technology in the way business is conducted.

He said Atlas Mara has engaged society in providing an excellent digital financial service and that its 2019 digital wallet “Tenga Mobile Money” on financial inclusion aspect has nailed desirable financial services to most customers.

The Bank has at the same time gotten recognition of the Global Banking and Finance Award for the fastest growing Retail Bank in Zambia 2019, reflecting the innovation, achievements, strategy and inspirational changes taking place within the Global Financial community.

And Atlas Mara Managing Director James Koni pledged the Bank’s commitment to continue investing in digital channels which enable customers make payments through mobile banking. Koni announced that the bank has to date crossed the 300,000 customer mark of customers registered on Tenga since its launch in January 2019 and has thanked its partner Zoona for being part of its milestone.

“Having created such a versatile mobile banking solution for our customers, we have also created value by allowing our physical branch infrastructure to be more focused on customer service by allowing more routine customer transactions to be carried out through mobile banking,” he said.

At the same event Bank of Zambia – BOZ Director, Banking, Currency and Payment Systems Lazarous Kamanga said Atlas Mara’s achievement in digitizing Zambians is clear testimony that the country’s banking system is moving to ensure every Zambian is financially included.

He said BOZ is pushing the agenda of financial inclusion and had identified digital financial services as one of the pillars of ensuring that every Zambian gets access to financial services. Kamanga added that BOZ welcomes innovations such as “Tenga” and has hoped for more innovations to be developed from Atlas Mara to provide services in people’s hands.

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The Center for e-learning and Information Technology

Markets

The Zambia Institute for Policy Analysis and Research – ZIPAR, a think tank organisation has disclosed that Zambia has since 2012 not yielded a positive economic growth rates despite the massive infrastructure investments being undertaken across the country.

Research findings by ZIPAR indicates that Zambia’s growth rate since 2012 has slowed down from the highs of about 7.6% to about 3.6 % in 2018 and that this years’ growth rate has been projected to further slow down to about 2 to 3 %.

Speaking during a seminar held in Lusaka on 12th September, 2019, ZIPAR Acting Executive Director Caesar Cheelo says there is need to cover infrastructure development gaps to help address poverty and improve inclusive development if the country is to recover macroeconomic resilience growth in the economy.

Cheelo said while public expenditure has been high through increased level of debt and debt service burden, it has not resulted in the expected increased economic growth rates, adding that, the massive fiscal expansion and borrowing has not unlocked greater economic growth rates.

“The economy is struggling to create jobs and industrialize. Over the time, the fiscal expansion has resulted in fiscal deficits that have been persistently higher than programmed, rising public debt stock, an escalating debt service burden and heightened risks of debt distress, which have muted economy growth rate,” he said.

At the same event, ZIPAR researcher Mbewe Kalikeka said there is need to reduce on public expenditure stating that optimal use of public resources is crucial in the country’s ability to stabilize the economy and put it back on the sustained and inclusive growth path.

Mbewe notes that government’s wage bill has been the single largest expenditure item on the annual budget adding that the Economic Stabilization and Growth Programme 2017 -2019 – ESGO has to this effect acknowledged that the budget had over time eroded the fiscal space for funding other developmental programs and infrastructure.

Analysts have however pointed out that the lack of direct impact of the infrastructure investments into the current economic growth rates may be attributed to a lagged effect that comes with capital investments, while others have questioned that way the current national Growth Domestic Product – GDP is measured with the government announcing that it would rebase and recalibrate the GDP, an exercise that has dragged but was due to be done this year 2019.

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The Zambia Institute for Policy Analysis and

Agribusiness

Tobacco Board of Zambia – TBZ has projected this year’s (2019) tobacco production to grow by 16% and hit 36 million Kilograms (Kg’s) compared to 31 million Kg’s in 2018.

TBZ Chief Executive Officer James Kasongo has confirmed that this year’s marketing season for the tobacco industry has improved compared to previous years attributing the improvement to the new information system introduced by the board and the active participation by stakeholders in the industry.

Kasongo told the Zambian Business Times – ZBT in an exclusive interview that the introduction of the new system has enabled most farmers get registered hence making it easy to monitor the production.

When asked by ZBT on who the top Tobacco producers and out-growers in Zambia are for the 2019 season, Kasongo disclosed that the key contributors in the industry include Tombwe processing, Alliance One, Japan Tobacco International – JTI leaf, Pemba leaf and Copper leaf, who he said have greatly contributed to the growth of the industry and the country’s production at large.

The TBZ CEO commended the improvements in Zambia’s production to enhancements of the country’s marketing and pricing system of tobacco, which has increased in the past 6 years from US$2.39 per Kg to the current US$2.80 per Kg ,while barley ranged from US$1.20 per Kg to US$1.80 per Kg hence becoming competitive on the regional market.

He is however confident that Zambia will by the end of its production season in September close with a high production in tobacco as Zimbabwe had for the 2019 marketing season closed with an average of US$2.3 per Kg, Malawi at US$1.36 per Kg while Zambia is to date standing at US$2.16 per Kg.

He added that the industry has received support from government and players in the industry have also been very supportive as among the factors that have led to a good and conducive marketing season in 2019.

“In terms of production last year, we had 31 million Kg’s of tobacco while this year’s projection before the end of the marketing season is about 36 million Kg’s of tobacco. This is an indication that production is increasing. In previous years, we would have people waiting for 3 to 4 days just to have their tobacco bought but now we have quite a number of buyers in the industry,” he said.

Kasongo has further noted the need to stabilize, support and grow the small scale farmers in the tobacco industry as they constitute 90% of tobacco production in the country, hence its prudent that small scale farmers are organized into cooperatives where irrigation schemes can be delivered.

In addition, Kasongo has called for participation of stakeholders in the industry on the legislation saying there is need to recognize it and bring it to the level where it can be competitive in the region as other countries tend to have more players and volumes compared to Zambia.

TBZ has opened registration of growers of tobacco till 31st October 2019 and has called on small, medium and large scale tobacco growers to get registered as the board has already given licenses to buyers who have provided an opportunity for farmers to invest in the industry.

The set up of local tobacco processing plants by BAT and the planned expansion by Roland Imperial tobacco are now providing a ready market for local produce. Zambia has the suitable soils and weather conditions in some identified tobacco producing areas.

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Tobacco Board of Zambia – TBZ has

Markets

ActionAid Zambia has welcomed the decision by the President Edgar  Lungu, in revoking the recent appointment of the Financial Intelligence Centre – FIC Board Chairperson George Siame, but questions have arisen on who conducted the security checks and cleared Siame for appointment.

The Minister of Finance had on September 10th , 2019 announced the appointment of the new FIC management board to be chaired by George Siame. President Edgar Lungu has since revoked the appointment of Chilengwe as FIC board chairperson  as he is believed to be under a court ruling for a case of Gender based violence.

It is a routine but important process that security and vital statistics checks are conducted on all proposed appointees but how did this one go through? Someone or a committee made this decision to clear the name but there has been no feedback and accountability for such blunders, which are embarrassing for the finance minister, the state and the office of the president.

In a statement made available to the Zambian Business Time – ZBT, Action Aid Country Director Nalucha Ziba has commended the act by government saying it shows the President’s commitment to protect the integrity of the institution as well as upholding the gains registered in the fight against Gender Based Violence.

“By revoking the appointment of a man who was reported to have assaulted a female Human Resource Manager whilst he served as a Senior Commissioner at Zambia Revenue Authority in 2009. The President’s decision is timely, amidst the rising number of reported GBV cases.” She saidt

She added that it is ActionAid Zambia’s sincere hope that the President continues on the same path adding that consideration should  be given to capable women when appointing the next FIC Board Chairperson as the country seeks to put more women in decision making positions.

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ActionAid Zambia has welcomed the decision by

Tech

The Zambia Airports Corporation Limited – ZACL has successfully managed to dodge the list of unprofitable list of state owned enterprises – SOEs and presented a dividend cheque to government worth K5 million ( US$385, 000) dividend.

ZACL has for the third time in four years presented dividend to government aiming at illustrating it’s commitment towards the growth of the country. Presenting the cheque to Minister of finance Dr. Bwalya Ngandu at the Ministry on September 11, 2019, ZACL Board Chairperson Milingo Lungu disclosed that the Corporation had for the period ending December made a profit of K80.4 million and paid taxes to government in an amount of K3.2 million.

Milingo added that on the infrastructure perspective, the Corporation has continued to upgrade projects with the Greenfield airport in Ndola currently standing at 48 percent of work done and the upgrade works at Kaunda international Airport currently at 85 percent.

“The cooperation kindly requests the shareholders to consider the extension of the Economic Tax Free status given to the Airport Multi – Facility Economic Zone to include Kenneth Kaunda International Airport as this will help in ensuring that the airport is positioned to become the next regional air transport hub in Africa.

And Dr. Ngandu said despite being in the midst of the economic challenges ZACL continues to strive in delivering world class airport and air navigation services which has seen the coming of new airlines hence a positive sign of governments investments being put to good use.

He has since commended the cooperation for the gesture of hard work and consistency in ensuring there is a proper management and utilisation of resources. The Minister added that government is however focused on constructing and upgrading airport infrastructure in all provinces to provide modern facilities that will enable the country handle higher volumes of traffic and give airline’s better services. The Finance Minister is also confident that enhancing the aviation industry will not only yield economic results but attract tourism.

Analysts at the Zambian Business Times have urged ZACL to now look at enhancing returns especially following the huge investments that have gone into the various airports. The board and management should now look at delivering tens of millions of dollars commensurate with the level of investments put in. Posting US$385 million is a good start but needs to be scaled up as return on capital injected needs to be above the interest rate applied on the loans obtained.

Zambia has aggressively invested over US$1 billion in Airport Infrastructure with Lusaka’s Kenneth Kaunda International Airport – KKIA and Copperbelt’s Simon Mwansa Kapwepwe International Airport under construction. The tourist capitals Harry Mwaanga Nkumbula Airport upgrade is completed while women regional and provincial airports had also received terminal and runway upgrades.

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The Zambia Airports Corporation Limited - ZACL

Mining

The Zambia Chamber of Mines – ZCM has disclosed exclusively to the Zambian Business Times – ZBT that the mining industry prefers the Value Added Tax – VAT system as opposed to the proposed Goods and Services Tax – GST also referred to as simply sales tax, stating that the copper mines through ZCM have collectively proposed measures to shore up VAT revenues for the government.

Speaking to ZBT following the chambers announcement on the projected drop of Zambia’s copper production by 100, 000 tonnes in 2019,  Chief Executive Officer Sokwani Chilembo stated that the mines have proposed to reduce the limit of VAT claims on fuel and electricity to 90%.

When asked by ZBT if the mining industry is ready for sales tax in 2019, Chilembo stated that “ No, the mining industry prefers to remain with Value Added Tax – VAT to Sales Tax, we have made proposals on how we can help to shore up VAT regime, the mines have proposed to  limit the claim-ability of VAT on fuel and electricity to 90%”.

He stated further that “ this 90% claim-ability is a reasonable amount and if it’s reduced too far, it’s going to escalate the production costs for the mines with the effect resulting in reduced production and eventually reduce the intended tax revenues”.

When further pressed to confirm some allegations that the timing of  chambers statement that the drop of 100,000 tones of copper production is meant to influence the 2020 national budget which is due to be announced in the next few week, Chilembo stated that the statement is meant to get government to consider the facts as the situation is very dire, and that we have seen how production is dropping and if we don’t make changes, these figures [of reduced copper production] will continue to slide next year and we will see more mines and smelters going into care and maintenance.

The ZCM CEO further stated that “we are now at a point where we have to do something to stop the industry from further decline and distress”.

On attributing the projected drop of 100,000 tones of Zambia annual copper production to the take over and liquidation of KCM, Chilembo admitted that KCM has operational challenges of its smelter but he was quick to mention that the chamber speaks about issues across the mining sector issues and that business stress is one of the realities.

The Chamber of Mines told ZBT that if sales tax is effected, it’s going to wipe out a substantial amount of jobs in the mines supply sector (mine suppliers). Sales tax if implemented is estimated to escalates costs in the mining industry by about 35 to 40%. The implications is that mines will stop buying locally and buy directly from multinational suppliers, cutting off the local offices, jobs will eventually at risk.

A further check by ZBT on Zambia largest mining company, First Quantum Minerals – FQM shows that its Zambian mine, Kalumbila Sentinel Q2 2019 copper production was comparable with Q2 2018 producing 54,977 tonnes of copper while its solwezi based Kansanshi copper mine production was reported to have been impacted by the lower grades in the oxide ore circuit and lower recoveries in the oxide and mixed ore circuits slightly offset by higher throughput in all circuits.  Kansanshi Copper production totaled 58,634 tonnes for Q2. 

The Zambian fiscal authorities have proposed to implement sales tax in 2020, after its implementation was postponed three times in 2019. The 2020 national budget due for announcement in last week of September or first week of October 2019 is expected to shade more light on weather this law will be implemented or shelved. VAT refunds have been reported to be a heavy drain on the treasury and this regulation is meant to plug that hole boost domestic resource mobilization to finance the ambitious infrastructure projects that the government has embarked on.

However, experts have called for a measured approach to ensure that the sales tax measures do not result in disruption of the copper mining industry which accounts for over 70% of the country export earnings and forex inflows.

 

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The Zambia Chamber of Mines – ZCM

Companies

A new board for the Financial Intelligence Centre – FIC has been unveiled with a reminder that its operations are 100% funded by government. The new board effectively terminates the contract of its controversial former board chair – John Kasanga.

The board appointment is in accordance with section 6 of the FIC Act number 46, of 2010. The new board is to be chaired by George Siame is expected to monitor and review the administrative performance of the centre in carrying out its functions under the act and approve the proposed budget of the centre.

Announcing the change at Ministry of Finance in Lusaka on September 10, 2019, the Ministry’s Minister Dr. Bwalya Ng’andu said other members include Hon. Justice Prisca Nyambe, Pelagia Kalunga, Mike B. Goma and Regina Mulenga who are further expected to approve policy guidance for the proper administration and management of the centre and review the implementation of cooperation agreements between the centre and domestic or foreign designated authorities.

Dr. Ngándu said the appointment comes at the back of the end of tenure of the previous board in January 2019. He has since commended members of the previous board for their tireless efforts in furtherance of the objective of the FIC and has also thanked Dr. John Kasanga for his contribution as interim board chair.

“I have no doubt that with your diversity and experience; you will be equal to the task and continue to make the financial intelligence centre the leading institution in the anti-money laundering and countering the financing of terrorism regime,” he said.

The Financial Intelligence Centre – FIC is a statutory body established under the financial intelligence centre act no 46 of 2010 (as amended by act no. 4 of 2016). It is an independent and autonomous government institution under the Ministry of finance.

The core function of the FIC is to receive and analyse financial transactions reports bordering on suspected money laundering terrorist financing and proliferation submitted to it by accountable institutions. The FIC is 100% funded by the ministry of finance.

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A new board for the Financial Intelligence

Companies

The Business Confidence Index – BCI for the second quarter (Q2) of 2019 has shown a further decline from the first quarter (Q1) of 2019  mainly due to the depreciation of the local unit, the Kwacha, leading to negative sentiment among the business community.

According to the Zambia Chamber of Commerce and Industry – ZACCI business confidence survey conducted on over 300 members of ZACCI across all sectors, the recorded BCI of 51.3 points is lower by 100 points hence signifies negative sentiments about the business climate in quarter 2 of 2019.

Addressing the Media in Lusaka on September 6 2019, ZACCI president Chabuka Kawesha explained that recorded negative sentiments we’re mainly due to the depreciation of the Kwacha, low sales due to reduced demend, delayed payments by Government, Poor liquidity, increased competition from foreign goods, policy uncertainities, uncertainities around the introduction of sales tax and the initiated liquidation process of Konkola Copper Mines – KCM on the Copperbelt.

The survey further revealed that the performance of business did not record an improvement in Q2 of 2019 compared to Q1 of 2019 due to the cited reasons and that most businesses experienced decreased demand for their products in the period.

“Additionally, the survey reveals that the general cost of doing business increased in Q2 of 2019. Further, that businesses expect the overall performance of the economy not to grow from the current level,” he said.

ZACCI has however called on government to quickly address the uncertainty surrounding sales tax and maize adding that there is need for new investments in the energy sector both for off-grid and on- grid clean or renewable energy. Meanwhile, the ZACCI president recognized and applauded government on the promotion of the fish farming and processing industry and the increased interest nationally.

Zambian authorities have struggled to manage the Kwacha to US dollar exchange rate pair due to lack of a clear policy and accountability among the various government wings on who should take leading responsibility.

The devaluation of the Kwacha is so pervasive that it seeps into the core of the economy, not only wiping out value for Kwacha savings but driving imported inflation. The Central Bank who the public defaults to think are the custodians of the value of Kwacha value and savings preaches that it practices a free market economic policy, leaving no clear accountability on who is responsible and accountable.

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The Business Confidence Index - BCI for

Markets

The Competition and Consumer Protection Commission – CCPC is as of 1 st September 2019, running a six-month Amnesty Programme up to the 28th of February, 2020 aimed at raising awareness and compliance with CCPC Act No 24 of 2010.

The Act avails persons or enterprises engaged in cartel conduct and restrictive business practices (RBPs) an opportunity to desist from further abrogating the Act in exchange for a waiver of fines as well as immunity from possible prosecution.

CCPC Director Legal and Corporate Affairs Maureen Mwanza has told the Zambian Business Times – ZBT in a statement that the programme focuses on all subsectors of the economy and covers agreements deemed as anti-competitive or restrictive of competition under the Act.

“The Commission through this programme and in line with Section 79 of the Act encourages persons and enterprises to come forward to the Commission with information that helps to demonstrate the existence of a prohibited agreement. The said information should be of such quality and degree of detail that it increases the chances of proving the existence of the prohibited agreement which the Commission would ideally have not been privy or have access to at all without investigation,” She said.

The Commission has further offered an opportunity to persons or enterprises to apply for amnesty and subsequently become good corporate citizens by complying with the Act. Mwanza added that persons or enterprises who may not be sure whether their conduct or agreement is in breach of the Act are free to engage the Commission in person or through their legal representatives anonymously or otherwise.

She further explained that the Amnesty Programme is restricted to Part Ill of the Act, and will therefore not extend to Mergers or Unfair Trading covered under Parts IV and VII of the Act respectively.

There are sectors in the economy that are dominated by a few related firms or firms acting in cohort which prevent competition and entry of new players, thereby sustaining higher prices at the expense of local consumers. The Zambian Business community and persons are now free to report all suspected anti-competitive business practices to the CCPC.

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The Competition and Consumer Protection Commission –