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Indo Zambia Bank – IZB has defended it’s quarter three (3) 2023 record of having posted higher earnings from securities than the core business of making loans.

Indo Zambia revealed that despite posting higher earnings from securities than loans, the bank has posted the second-highest loan-to-deposit ratio among the top 10 banks in Zambia, at the end of Q3 2023.

According to the latest Q3 quarterly results seen by the Zambian Business Times – ZBT, IZB’s loan-to-deposit ratio stood out in comparison to its peers, some of which seems to also have concentrated more on investing in government paper at the expense of banks core business of raising deposits and making loans.

The Indo Zambia bank’s management team is confident that it can continue to grow its loan book while maintaining a strong liquidity position and upholding its commitment to responsible lending practices.

Responding to ZBT on why the Bank is not channeling more funds into the local market through making more loans and advances as opposed to locking more funds in Government and other securities, the bank’s Managing Director Kowdichar Shashidhar revealed that the bank’s deposits consist of both long-term and short-term deposits, with various tools and benchmarks employed to ensure that funds are channeled into the local economy through loans, while also meeting the liquidity requirements of depositors.

Shashidhar told ZBT that “the composition of the Bank’s deposits consists of both long-term and short-term deposits, the latter of which is available for removal/withdrawal by the respective depositors, on demand. As a result of this, the Bank has various Asset-Liability management tools and benchmarks that it employs to ensure that it is able to channel funds into the local economy, by way of loans, as well as meet the liquidity requirements of depositors, when called upon.

The Indo Zambia MD further stated that there are also regulatory requirements on the amount the bank is able to lend in relation to its deposits.”

The Loan to deposit ratio – LDR is generally considered to be the amount that a bank invests into the society in which it generates its deposits. It is therefore critical for economic development that banks post a healthy loan to deposit ratio that can support and fund innovation and business growth.

A review of the Indo Zambia balance sheet further revealed that the Bank’s Q3 loans-to-deposit ratio was about K4.8 billion to about K10.5 billion i.e. 46% of deposits are used to make loans which is below 50% threshold needed to inject a multiplier effect into the Zambian economy.

Shashidhar however said that regulatory requirements limit the amount of lending the bank can do in relation to its deposits. The bank has a commitment to its depositors and shareholders, including the government of Zambia.

The Indo MD explained that the Statutory Reserve ratios (SRR) require the bank to reserve a percentage of its deposits with the Central Bank, which is not available for onward lending or investment. “As of Q3, SRR was 11.50% and has subsequently increased to 14.50% and now at 17%, which denotes that the Bank will be required to increase the number of its deposits which will be held in reserve with the Central Bank, and thereby reduces the amount that will be available for Lending.”

He said Considering the regulatory environment, as well as liquidity considerations highlighted above, it may be noted that at the end of Q3, IZB had the second-highest Loan to Deposit Ratio amongst the top 10 Banks in Zambia, which may be considered a clear indication of the bank’s commitment to supporting the local economy.

He added that the bank has a responsibility to ensure that its Lending decisions are prudent and well-judged. “The Bank’s commitment to Shareholders and Depositors is therefore best demonstrated by the Quality of Lending, and the Quality of the Bank’s Loan Portfolio.”

Shashidhar said It may however be noted that the Bank’s investments in Government securities also provide support to the Government for various activities such as social spending on healthcare, education, etc, which is also essential for the local economy.

He told ZBT that regulatory requirements limit the amount of lending the bank can do in relation to its deposits. The bank has a commitment to its depositors and shareholders, including the government of Zambia.

Asked if it’s ndo Zambia strategy to be earning more from investments in securities [about K260 million] and only about K179 million from banks core businesses of loans and overdrafts as the bank seems to be more concentrated on investment in government securities [which results in crowding out effect] than the actual business of lending?

Shashidhar responded that the bank’s long-term strategy is to grow its loans and advances as part of its core activities.

The Indo MD defended the banks record stating that “the bank saw a 14% growth in loans and advances by Q3, with a further increase to 32% when considering the bank’s performance up to October 31, 2023. However, there was a decline in investments by about 13% by Q3”.

Most banks in Zambia are currently using their deposits generated from the market and investing them mostly into government securities resulting in low availability of funds available for investment for firms.

The Government is simply crowding out the private businesses and firms, a situation that is not ideal for supporting private sector led economic growth.

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Indo Zambia Bank - IZB has defended

Agribusiness

bread prices to go up 7%The Bakers Association of Zambia (BAZ) has revealed that bread prices are expected to go up by about 7% due baking ingredients and flour prices which have gone up from k900 to k960.

Speaking in an exclusive interview with the Zambian Business Times – ZBT, BAZ Chairperson Aziz Kapdi confirmed that flour prices which is the main ingredient has now gone up following the high cost of doing business which is threatening the prices of the final product.

Kapdi lamented that bakeries are now being forced to sell bread to please and attract customers and not to make profit for the fear of losing customers.

He said whenever bakeries decide to increase the price of bread to meet the cost of flour and baking ingredients, the customer turnout decreases.

He has since appealed to the government to consider subsidizing or introducing a price ceiling on wheat flour.

“The current price of flour is k960 for a bag of 50kg they increased to k60 at a go. The cost of flour and all the major ingredients like yeast, salt and plastics have gone up. Bakeries are crying, they don’t know what to do. Whenever bakeries manage to try and increase the price, there are no customers. Customers are complaining. So we don’t know what to do.”

“We are asking government if they can put some subsidies in the bakery industry or have a standard price for flour just as they have done for mealie meal because we don’t know which direction to go at the moment. Bread is selling at k13 when a loaf should be k20 that’s when some bakeries will manage to make profit and to replace their equipment’s over time,” said Kapdi

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bread prices to go up 7%The Bakers

Lifestyle

The Lusaka City Council (LCC), has failed to discipline the unregistered churches with no track record for fear of being labeled as people who do not believe in God.

The Council of Churches in Zambia – CCZ, one of the church’s mother bodies, has been calling on the government to protect citizens from unscrupulous individuals pretending to have powers to deal with people’s problems.

The organization has been urging the government to come up with measures to control the operation of churches in the country, saying the conduct of some churches is tarnishing the image of the church as News headlines of clerics engaging in illegal and undercover activities in the name of the church have become common in the country.

CCZ general secretary Fr. Emanuel Chikoya expressed concern that LCC is more focused on disciplining businesses operating without licenses a situation he believed is the major contributing factor to the current mushrooming of Churches in Zambia especially in the shanty compound which he said is a danger to society.  

Reacting to this in an exclusive interview with the Zambian Business Times – ZBT, LCC public relations manager Chola Mwamba confirmed that the authority already has complaints from members of the public on churches operating in residential areas and that the authority is working on how best they are going to carry out their enforcement. “In this Nation, when one talks negatively about Godly things people would rise against that person.”

Mwamba however, said the local authority is not going to threaten unregistered churches for fear of being labeled as people who don’t believe in God by the members of the public.

“We already have complaints of churches operating in residential areas but when you talk negatively about Godly things you know how people would rise against you. So we are trying to see how best we can phrase that statement that will sit well with society and our norms but we are working on it. So there have been all sorts of complaints of churches in residential areas disturbing neighbors but then as a local authority we need to sit and analyze how we are going to do our enforcement,” she said.

Mwamba noted that it’s illegal for people to turn their homes into churches without informing the local authority.


“It’s illegal for people to turn their homes into churches without informing the local authority. As a local authority, we want sanity and ordering residential areas. So to turn your home into a church, you are actually disturbing your neighbors. As a local authority, we are going to ensure that we enforce the law where issues to do with gatherings are concerned and where issues to do with change of use are concerned. Because for you to turn your home into a church you have to apply for change of use and it has to pass through the council for it to be approved or disapproved,” she said.


“We are appealing to members of the public to follow the law where issues to do with change of use are concerned. When you are having a gathering of more than 20, or 30 people and you don’t have public facilities like washrooms would cholera spare you? So we are appealing to all those that are coming up with illegal churches to desist from doing so,” said Mwamba.

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The Lusaka City Council (LCC), has failed

Markets

The Zambia Statistical Agency –ZAMSTSATS- has defended what some experienced experts have described as “lower than actual” inflation numbers stating that the agency at all times upholds high standards in its production of statistics strictly guided by international guidelines.

Independent economic and business experts have expressed doubt and concern over the ‘lower than expected’ inflationary figures and exclusively told the Zambian Business Times –ZBT- that the inflation figures were much higher than what the agency is reporting.

An independent and experienced economist had challenged the government’s official statistics agency to start releasing realistic inflation statistics relevant to the general Zambian citizenry.

Other concerned stakeholders had also expressed concerns that the ZAMSTATS inflation rate of 12.6 as of October 2023 did not reflect the true picture of what is on the ground, adding that Zambia’s inflation is hovering around 20 to 30 percent if the key consumer products and obtaining prices on the ground are considered.

Some ZBT readers also concurred that the official rate of 12.6% for October 2023 was rather low compared to what is obtaining on the ground. It’s not clear if base effects may also be at play.

However, ZAMSTATS Statistician General Mulenga Musepa has responded stating that the production of statistics is strictly guided by international guidelines in conformity to the Statistics Act No. 13 of 2018 which among others provides for the agency to give effect to the UN fundamental principles of official statistics and principles of the African Charter on Statistics.  

Musepa said the production of statistics such as inflation (CPI) is guided by the manual developed by the International Labor Organization –ILO, International Monetary Fund –IMF, and the World Bank among others.

He further mentioned that the production of inflation like all other statistics is undertaken by well trained and experienced statisticians that undergo regular capacity development. He said the methodology is regularly reviewed with partners such as ILO. IMF, UNSD among others, and that the items in the basket are classified using an international classification called Classification of Individual Consumption by Purpose (COICOP).

Musepa disclosed that price data of all 448 goods and services in the basket is collected every month from the 1st to the 10th in all the 116 districts of the 10 provinces with over 23 thousand quotations.  He said the goods and services considered are the most or commonly purchased and consumed.

Musepa has therefore dispelled inflation figures attributed to unofficial sources as misleading and has called on the public to rely on official numbers produced and published by the agency.

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The Zambia Statistical Agency –ZAMSTSATS- has defended

Companies

Prudential Pensions Management Zambia (PPMZ) has solidified its commitment to fostering financial inclusion with the signing of a strategic partnership agreement with First National Bank (FNB) Zambia.

This collaboration, set to commence in December 2023, follows the execution of a memorandum of understanding by both entities.

The partnership underscores a mutual commitment between PPMZ and FNB to champion a range of investment funds within the Zambian market.

Addressing the longstanding challenge of savings accessibility and affordability for many Zambians, the collaboration aims to empower individuals and families to create and cultivate wealth.

The partnership further opens new doors for customers through collective investment schemes and managed mutual funds.

The collective investment schemes form part of tailored investment solutions and will be provided through the FNB branch network, predominantly in Premier and Private Client Suites.

The official launch ceremony was presided over by PPMZ Chief Executive Officer, Kanyifwa Nyirongo, and supported by FNB Zambia Head Retail Banking, Mwamba Musambo, FNB Zambia Head Corporate & Investment Banking, Luyanga Mufungulwa and Misozi Hope Masengo, representing the Board Chairman for Prudential Pensions Management Zambia, marked a pivotal moment in the financial landscape of Zambia.

Speaking at the launch, Kanyifwa emphasized the transformative potential of the Prudential Investment Fund (PIF), providing investors with a seamless avenue to save, whether through a one-off investment or by becoming part of the “WISE” family.

The WISE campaign encourages investors to Work, Invest Steadily, and Enjoy (WISE) the benefits envisioned upon investment maturity.

Expressing gratitude, Kanyifwa extended appreciation to FNB management for fostering an enabling environment that facilitates impactful partnerships, and deepening financial service accessibility for the average Zambian.

And FNB Zambia’s Head of Retail Banking, Mwamba Musambo said that the Bank was particularly excited to partner with Prudential Pensions Management Zambia in offering investment options as this speaks to FNB Zambia’s constant drive to evolve and reimagine help for customers.

“This partnership with Prudential Pensions Management Zambia is a first on-the-market partnership between a bank and a pension fund, and a first on the market of pension and investment solutions. At FNB Zambia, we are optimistic about the opportunities that lie ahead so that we can continue to demonstrate value for our customers as we embark on a journey of financial empowerment and a brighter, more secure future for all”, Musambo said.

Within the comprehensive range of Unit Trusts (Investment Vehicles), Prudential Pensions Management Zambia offers options such as Pru Post Retirement Investment Care Investment Fund (PReCIF), Pru-Balanced Fund, Pru WiseKid, Pru-Income Fund, and Pru Personal Retirement Plan. Each is meticulously crafted to fulfill specific investment objectives.

Minimum monthly contributions starting at K500 can be remitted in advance on a monthly, quarterly, semi-annual, or annual basis.

With 23 branches across Zambia, FNB will ensure distribution of PPMZ products nationwide highlighting the bank’s resolve to reach the whole of Zambia without leaving anyone behind.

Customers will have the option of getting these investment solutions through their Relationship Managers, Branches, or in the comfort of their homes through the FNB Contact Center, supported by experts from Prudential Pensions Management Zambia.

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Prudential Pensions Management Zambia (PPMZ) has solidified

Tech

Zambia continues to struggle with high levels of unemployment, particularly among the youth. Despite efforts to address the unemployment rate, the situation is made worse by the fact that more graduates are being churned out of universities and colleges with limited prospects for employment.

Currently, the country is facing a significant challenge as over 10,000 job seekers have applied for only 250 positions in the immigration department which is a clear indication of the high levels of unemployment in the country and the desperation among job seekers to secure any available opportunity.

The Department of Immigration has exclusively told the Zambian Business Times – ZBT, that a total of 10, 529 youths countrywide have applied for the 250 immigration positions which were recently advertised.

According to the Department of Immigration public relations officer Namati Nshinka, a total of 7,113 applications were received for 150 immigration assistant positions Countrywide while 3,416 applications were received for 100 border guard positions countrywide.

Lusaka Province had the highest number of applicants with 4, 446 followed by Southern Province with 888 applicants. Central province was third with 875 applicants followed by Eastern province with 716 applicants.

Western Province was fifth with 569 applicants followed by North Western Province with 559 applicants. Luapula Province had 458 followed by Muchinga province with 431 applicants while Northern Province had the lowest number of applicants with 412.

The high number of job seekers in Zambia highlights the need for urgent measures to address the problem of unemployment. The government needs to create more job opportunities, particularly in the private sector, to absorb the growing number of graduates and reduce the levels of unemployment in the country.

It is also important for the government to heavily invest in vocational training programs that equip young people with skills that are in demand in the job market.

According to the Population Council and UNFPA Report of 2018, Youths comprise the majority of Zambia’s population. The government has since been implored to work towards fulfilling the potential demographic dividend its youth population presents such as investing in enhanced education quality and skills development, increasing access to education opportunities such as enabling higher education by as many youth as possible, reforming the curriculum by ensuring that it focuses on meeting the labor market demands so that youths are effectively prepared for good paying jobs, creating more jobs through various economic diversification programmers, fortifying governance and accountability systems and ensuring that commitments to youth programs are fulfilled and effectively supported through budgetary allocations and exploring a youth accountability framework to monitor the implementation of youth policies.

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Zambia continues to struggle with high levels

Companies

Airtel Africa has successfully launched Nxtra by Airtel (“Nxtra”), a new data center business founded on a commitment to meet the continent’s growing needs for trusted, and sustainable data center capacity and to serve the fast-growing African digital economy.

Airtel Africa’s Group CEO, Segun Ogunsanya noted that a rapid increase in data center capacity is needed to support the growth potential of Africa’s digital economy. 

“We’re proud to drive the future of Africa’s digital infrastructure, unlocking opportunities for businesses to grow and fueling economic prosperity.”

Ogunsanya said Airtel Africa’s team has consistently shown the ability to deliver on infrastructure projects across Africa, “and we are confident that our next-generation data centers will support our ambition to become the partner of choice for global customers and Africa’s newest tech unicorns alike.”

Nxtra aims to build one of the largest networks of data centers in Africa with high-capacity data centers in major cities located strategically across Airtel Africa’s footprint, complementing its existing edge sites.

This is expected to serve the growing needs of African enterprises and its data center infrastructure will be designed to host the next generation of computing while providing multi-MW capacity in a phased manner.

These facilities will meet stringent global security requirements and meet ‘five nines’1 availability. Coupled with Airtel Africa’s extensive fiber footprint, Nxtra offers secure and scalable integrated solutions to global hyper-scalers, large African enterprises, startups, SMEs, and governments.

Through locally available data center capacity, speed to access digital services will improve and the cost of managing data will be reduced, thus helping power increased innovation, while supporting a new generation of African tech talent. Furthermore, Nxtra is enabling customers to meet data sovereignty requirements while at the same time enabling more local cloud services to be offered in the countries where Airtel Africa operates.

The first major Nxtra facility in Lagos, Nigeria, will deliver 34 MW of total power. It is designed to host high-density racks and integrate the latest best practice construction to achieve 1.3 power usage effectiveness (PUE). It is expected to be live in mid-2025.

To deliver on Nxtra’s vision, Airtel Africa has appointed Yashnath Issur, the former head of Global Data Centre Portfolio Management at Amazon Web Services, as CEO of Nxtra by Airtel. Yashnath has 16 years of experience in the industry and has, over the past year, built a team of experts to execute the strategy.

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Airtel Africa has successfully launched Nxtra by

Tech

The Kasama Chamber of Commerce says the upgraded facility and functioning of the Kasama airport in Northern Province will be a major boost to the growth of tourism in the northern circuit as well as enhance economic activities.

President Hakainde Hichilema recently commissioned the Kasama airport after major rehabilitation works were done on it.

Speaking in an exclusive interview with the Zambian Business Times –ZBT-, Kasama Chamber of Commerce Executive Secretary David Chanda said there has been for a long time talk of promoting tourism in the northern circuit and that one of the things which has been hampering the growth of the tourism sector in the country is poor infrastructure mainly in the transport sector.

Chanda said with the official commissioning of the Kasama airport, it is anticipated that business will improve noting that the amount of time for people to travel to and from Kasama will be shortened especially for tourists who can visit the many tourist attractions in the province such the Chishimba falls, Kalambo falls among others.  

He mentioned that it is tiring for tourists coming from Europe to travel for many hours into Zambia land in Lusaka, and travel for another many hours to Kasama adding that with the airport now commissioned and functioning such inconveniences will no longer be a hindrance. “Now that we have a functional airport that has been commissioned, we are just waiting for flights to land at our airport and we anticipate that tourism will see a boost,” said Chanda.

Chanda said the country really needs an efficient transport system that includes a proper road network, efficient air transport, as well as efficient rail transport which are cardinal to the overall development of the country. “This is what you call capital for an economy to thrive on and grow,” said Chanda.

He said this is a major mile stone for Kasama and the province at large as the standards have been set quite high. He said the airport can land big planes and Cargo planes as the runway is able to accommodate all those. “This is a major milestone in the development of the country especially its tourism sector.”

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The Kasama Chamber of Commerce says the

Markets

The Zambia Institute of Chartered Accountants -ZICA- says the initiative by the Bank of Zambia -BOZ- to raise the Statutory Reserve Ratio to 17 percent has a huge disadvantage for Small and Medium Enterprises and it is a delay in the growth of entrepreneurship.

Speaking during the quarterly media briefing attended by the Zambian Business Times -ZBT, ZICA President Yande Mwenye said the move by BOZ will limit access to funds to small businesses as banks will ultimately deal with larger corporates. “Simply put, BOZ’s move has effectively squeezed money or liquidity out of circulation which will force commercial banks to only deal or lend money to pristine clients like the mines or big businesses,” said Mwenye.

On November 13th, 2023, the Bank of Zambia increased the statutory reserve ratios for both the kwacha and foreign currency by 3%, from 11.5% to 14.5%. This was done to address the persistent increase in inflation and the continued depreciation of the kwacha. To further address these issues, the central bank increased the statutory reserve ratio by an additional 2.5% to 17% on November 27th, 2023. The revised statutory ratio of 17% is based on the weekly return of selected assets and liabilities from that date. The aim of these actions was to tighten liquidity in the market and relieve the persistent pressure being experienced by the local currency.

ZICA president however noted that after a cumulative appreciation of 17% in the previous quarter, the kwacha depreciated by 5.8% against the US dollar in the third quarter of 2023. She further noted that between 1st September and 21st November 2023 the kwacha depreciated by a further 10.9% per dollar and that the depreciation trend of the kwacha has persisted in the fourth quarter with the kwacha trading at K23.3 per US dollar as of 21st November 2023.

She noted that the key drivers of the depreciation of the kwacha are low foreign exchange supply particularly from the mining sector, High demand by market players for various purposes including critical import of fuel, medicines, and agricultural inputs, tighter global financial conditions causing an outflow of foreign currency as foreign holders of Government securities divest from the domestic market thereby reducing forex inflows who have been typically suppliers of foreign exchange, as well as negative sentiments associated with the conclusion of protracted debt restructuring negotiations.

To potentially aid the downward depreciation of the Kwacha, ZICA has proposed some recommendations to the government which include, addressing Zambia’s deep-rooted structural disparity that has manifested itself in a mono-economy still heavily reliant on copper mining.

Mwenye added that the government must expedite the diversification of the country’s export base towards sectors such as Agriculture, Manufacturing, and Tourism as espoused in the 8th National Development Plan -NDP- and other policy documents. “This will ensure a multiplicity of sources of foreign currency thereby arresting depreciation overtime” said Mwenye.

Mwenye further mentioned that there is a need for BOZ to assess the impact of financial practices by large firms and how they influence the forex market to strengthen its interventions aimed at curbing these practices.

“From a fiscal policy angle, the Government must continue the work they are doing to reduce its debt service costs to decrease its demand for foreign currency, which has a direct effect on the depreciation of the Kwacha,” said Mwenye. She noted that the restructuring of the country’s debt is in the short term paramount and should be expedited as it will help reduce interest payments.

“In the long term, the government must continue to prioritize fiscal adjustment through containment of capital expenditure, which persistently widens the fiscal deficit and leads to further borrowing,” said Mwenye. She notes that the exchange rate remains a significant variable in Zambia’s economy hence the persistent depreciation of the Kwacha continues to pose economic challenges. She said going forward, a combination of short-term and long-term measures must be used to arrest the perpetual depreciation of the Kwacha. “This way, the Kwacha can be redeemed, and consequently the economy insulated from the shocks arising from the Kwacha’s depreciation,” said Mwenye.  

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The Zambia Institute of Chartered Accountants -ZICA-

Lifestyle

The Water Resources Management Authority -WARMA, has appealed to Members of Parliament –MPs- to help influence policy change that will allow for commercial entities to pay the full amount of water usage as opposed to being subsidized.

WARMA Director General Engineer Kenneth Nyundu said only vulnerable communities should be subsidized noting that the money should be channeled to subsidize those who do not have portable water in rural communities, but that those using water for commercial purposes should be able to pay for it. He said commercial entities only pay about a percentage thereby not contributing to the management of the resource.

Speaking during a meeting attended by the Zambian Business Times-ZBT, with Parliamentarians, and members of the Energy, Water, and Tourism, Planning and Budgeting Committee, aimed at educating them on the challenges being faced by the authority in ensuring the sustainability of the source, Nyundu said more emphasis has been placed on water supply which is important, but noted that the source is being neglected.

“So when the source dries, these will be white elephants, there will be no water to supply. It is commendable that investment has been done in this to make sure that we have infrastructure in place, but it is time we addressed this part because from our information, water availability is diminishing” said Nyundu. He noted that some time back in the 1960s, per capita availability of water resource thousand cubic meters, but is now at five thousand per capita due to population increase.

Nyundu warned that Zambia will face a crisis if the country continues ignoring the water bodies which are supposed to sustain it as there will be no water to supply, but infrastructure in place. He said serious attention needs to be given to this sub sector to ensure that the country secures what it has, as opposed to waiting until the country is in an awkward situation like some countries in the region.

Nyundu said that for the authority to be fully operational, the budget needed annually is 249.8 million without capital expenditure. He however noted that currently the authority is lingering around 61 million, with government grants which are around 18.5 million, and a financing cap of 169. He said with this, the authority is stuck and cannot progress.

“Whatever we get in terms of fees, we are only able to discharge 30 percent of our mandate. We cannot move forward, and the reason is simple, the numbers we cannot employ, we do not have state of art equipment and tools to use” said Nyundu.

He reemphasized that that the annual budget need to 385 million kwacha against the less than 100 million kwacha being used now to operate.

He disclosed that currently there are about 2,139 individuals, and entities that have been permitted to use water commercially, but are not paying enough to help maintain the resource in comparison to what they use.

Nyundu said the numbers are good, but because of the fee structure used 1,519 out of the 2,139 pay from the ranges of K10 to K3, 000 only. “What the majority pay is very little. The following category which is paying between 3,000 and 100,000 per annum are only about 500, and the bigger guys who are able to pay us more than 100 thousand per annum are only 120” disclosed Nyundu.

He added that the increase in population and economic activities is literally impacting on the country’s risk resource in terms of pollution, and that if there is no capacity to manage it, it will be a disaster especially for ground water which is difficult to clean up. He said there is need to prevent than to start curing.

Nyundu noted that the increase demand for development of land has led to people are building in the river birds where it is supposed to be recharge area, claiming marshlands, swamp areas, and seem not to understand why such areas should not be tempered with. He explained that these areas are the ones that are supposed to sustain the flow of water in rivers throughout the year.

“So when it is not raining, these are the areas which discharge that water they keep to the rivers for the rivers to flow. Most small rivers here in Lusaka have dried up because where the marshlands were supplying which were the source of water for those, we have since built, and we get surprised when the rivers are dried up” said Nyundu.

He added that deforestation has also contributed to the reduction of water availability, noting that there is too much evaporation, and runoff. He said this is what is leading to load shedding; noting that load shedding is not an energy problem, but a water problem evidenced by the dependence on hydro power.   

Nyundu further mentioned that local authorities continue to move on within their mandate to things without consultation from an institution like WARMA which is negatively impacting on the resource. He also mentioned that there is no appreciation of the value water resources have and bring to any product or service being given. Nyundu said that if the country continues in this trajectory, the capital availability of water will reduce to 1, 000, and will be no different from water stressed countries like Botswana, and Namibia among others, and will be too late to reverse it.

He said due lack of resources, the authority is failing to map the country to ensure that areas of need are identified and declared as protected areas for future use owing to the increasing population.

Nyundu has therefore appealed to members of parliament to fully support the water sector particularly the subsector of Water Resource Management, and appreciate the challenges being faced.

Nyundu therefore said there is need to influence policy change, which can only be done through the members of parliament. He has called on the MPs to support bills that will be presented in parliament by the responsible minister in a bid to secure the natural resource and avoid a water crisis.

And Acting Chairman for the joint Committee of Energy, Water and Tourism, Planning and Budgeting Committee, Dr. Chitalu Chilufya who is also MP for Mansa Central has called on WARMA to review the system to make it transformational to ensure resilient and sustainable financing, and translate Zambia’s into wealth for the people.

He noted that the members have heard WARMA’S challenges on financing, and has urged that the authority’s system must include sustainable and resilient financing. He noted that relying on grants may not adequate. He has advised the authority to engage stakeholders to ensure that the process of reviewing fees is expedited. “You do need to be apologetic charging those small fees when people are actually making huge profits” said Chilufya. He     He has therefore assured WARMA the support of the MPs.   

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The Water Resources Management Authority -WARMA, has