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Renowned Zambian economist Professor Oliver Saasa has cautioned that the country should not sacrifice domestic investors to a level where there is more focus on foreign investors.

Speaking in an exclusive interview with the Zambian Business Times – ZBT regarding the current high levels of interest rates which are said to be constraining domestic growth, Professor Saasa stated that the drivers of national development are domestic investors.

When asked to comment on the market sentiment that the current high interest or discount rates offered by the government through treasury bills and government bonds are driving up the overall cost of borrowing for domestic and local investors, Prof Saasa admitted that treasury bills and government bonds rates have an effect on the primary movement in the market interest rates.

He also agreed that there is some pressure on the government by the business community that the current interest rates are too high. The internationally acclaimed economist however was quick to state that obtaining interest rates on treasury bills and government bonds can be a double-edged sword.

When interest rates on treasury bills and government bonds are attractive, they invite foreign portfolio investors into the local market who in turn bring in foreign exchange [which is converted into local currency to buy T-bills and bonds which are denominated in Kwacha].

But this same action of having attractive interest rates or yields on T-bills and government bonds will lead commercial banks and other domestic funds to lock in their funds with the government which results in crowding out or “starving off” the private sector. This results in low availability of credit and was available, Credit is availed to the private sector at high-interest rates especially where the rate of non-performing loans is high.

However, when interest rates are too low for treasury bills and government bonds, this will lead to a market drop in overall interest rates and the credit availability to domestic investors will increase. Unattractive rates for t-bills and government bonds will however result in reduced inflows of forex from foreign portfolio investors.

Prof Saasa stated that one of the commitments of government in the 2024 budget is to minimize the overcrowding effect on domestic borrowers and to increase access to credit for the private sector. This is expected to address the high cost of borrowing.

Interest rates have reached astronomical levels in Zambia where private lenders are charging between 10 to 15% per month, annualized to about 120%. Regulated microfinance lenders are applying about 5% interest per month, annualized to 60% per annum.

Commercial banks which have the biggest portfolio of lending to private and domestic investors have also hiked their effective interest rates to about 30%, levels which the business community says have made the cost of doing business in various sectors unprofitable.

Renowned Zambian economist Professor Oliver Saasa has

North Western Province Chiefs who had earlier demanded a minimum of 15% share from First Quantum Minerals – FQM, Kalumbila mine revenues, and other mining firms harvesting minerals from their chiefdoms have begged the Government to expedite the assignment so that it becomes a reality program for everyone to benefit.

The Chiefs’ request for a 15% mineral royalty tax is a crucial issue that demands the government’s prompt attention. However, to date, the government has not yet taken a position on this important matter.

Chief Dr. Mumena has since called on the government to urgently look into the matter adding that the request is coming from the communities and not Chiefs.

Speaking in an exclusive interview with the Zambian Business Times – ZBT, North Western Chiefs Representative, Chief Dr. Mumena said the Chiefs have not abandoned the request as they are still focused on getting the 15 percent mineral royalty tax they requested from the Head of State President Hakainde Hichilema during the ground-breaking ceremony for the enterprise Nickel Mine in Kalumbila District of North Western Province.

In July last year 2022, Chiefs in North Western Province who are the original and rightful custodians of the wider community interests of the people of the province, requested the government under President Hakainde Hichilema to review the Mining Policy to include provisions where 15% of proceeds from Mining firms will remain in host Provinces.

 “We have not received a position on this matter but we are still optimistic that the Government is going to respond affirmatively to this request because as we said we are looking at communities growing from local resources which is also a Government program. And so this is going to help to alleviate poverty, lift the people’s living standards, help communities feed themselves.” Said Dr Mumena.

“We made our submissions and it’s a waiting game so we are waiting for the government to finalize and tell us how far they have gone with the request that we made from the Province.” Remarked Chief Dr Mumena.

He reiterated that this is not just about one province it is about all other provinces wherever there are God-given resources the law should be the same.

“So it is not for just one Province like the North West but for everyone because I believe that every Province actually has some content of mineral resources and mineral deposits. Others are yet to be discovered so we want a law that is going to embrace everyone.”

Chief Dr. Mumena said that once fully implemented this is going to improve not only by bringing about formal employment but even the informal employment sector is going to be enhanced so we looking at this from the developmental agenda from the grassroots.

“We have not abandoned the plans and remember this calls for policy review registration review and this is what we pushed for when we had the review programs for the Mines and Minerals Act we pushed in that as the province that the 15 percent remains in the province and also remains with the chiefdoms that are hosting the investments. So that’s what we have pushed into the program that we had for the registration review Mining Mineral Act and so we are still looking forward to that being captured, it is still our stand.”

Asked why the Government has delayed giving a response, Chief Dr. Mumena said, “I may not know exactly what has caused the delay on the part of the Government but we do know that Government programs take time and that they are also systematic so we are optimistic that we are going to receive a positive result on this assignment and I will just implore the government to look at this issue urgently. This is already the Government’s call as they are also looking at how best they can help communities and improve rural development.”

Dr Mumena noted that when that money remains in provinces it is going to be used for infrastructure development, boost agriculture production, boost livelihoods, bring in rural electrification, build the road network around communities and better housing among many others, and bring in home-grown solutions.

“We think that this is also the money that is going to be used to boost and enhance food production and at the same time be able to participate in the programs that are coming in such as the Lobito Corridor which runs through our province and we think that the local people can only meaningfully participate when they have the power and the money.”

Asked if there is a timeframe set for this important request to be realized, Chief Dr. Mumena said, “Right now we have requested meetings with the government at the highest level and this is one of the items on the agenda that we are going to look at so the request has already been pushed in and the outcomes so far are that the Chiefs are still Focused on the request which we made because this is not just about the Chiefs, when we are talking about the Chiefs we are talking about the communities and the chiefs are just institutional leaders representing the communities. So we really talking about the voice of the people and trumpeting the voice of the people that over and above are voiceless so they come out through their leaders and the call by the Chiefs is actually a Leadership assignment because we know what is on the ground, we have the data on the fingertips, we know what can be developed there even the participation of our people in the small scale and large scale mining we also looking at the participation of Zambians that will be able to come on board and develop large scale mines.”

“So far with the exception of Dr Sixtus Mulenga who has developed a mine in Luapula, we have not seen any Zambian that has been involved in developing a mine as the rest that are into mining the majority of them are there as employees when we want Zambians that are going to own mines and develop the mines and control the proceeds of trade and at that stage we are going to say we are creating Zambians that are billionaires and obviously what they will be doing will scale back into the communities where they hell from.”

“This is our prayer that Zambians get involved meaningfully in mining and not just there as employees and observers. So we need to be into proper Zambians that are going to be in the mining sector, industrial sector, manufacturing sector, and agriculture sector, but what do we need, seed money and part of that seed money also goes with the structures that are going to be developed with the 16 percent mineral royalty tax remaining in the particular provinces.”

He added that the request is holistic and is going to impact positively on economic development education, health, and everything else so we are looking at a big picture.

“I can only implore the Government to expedite this assignment so that it becomes a reality program for everyone besides we currently have a government that is looking at economic enhancements and this has been exhibited through the release of more money through the Constituency Development Fund CDF and NAPSA partial withdraw so we feel that it’s the other side of the coin where we are still looking at the unlocking of resources to the citizenry so I could only implore Government to expedite on this assignment because this is about political will, leadership, we cannot look at developing these natural resources or indeed extracting them if we don’t have the resources so the resources we are talking about are therefore resources that are going to unlock the great potential that is around us and seats within us.”

Chief Mumena also has appealed to the media institution to continue helping with trumpeting the need for unlocking the resources to help communities process the natural wealth that God has richly endowed them.

The government should carefully consider this request and take a proactive approach in engaging in constructive dialogue with the Chiefs as this could lead to a mutually beneficial solution that supports sustainable development and promotes economic growth which will have a significant impact on the local communities and the mining industry.

North Western Province Chiefs who had earlier

The Zambia Consumer Association ZACA said the increase in the license fee for commercial Kapenta Operators from K3, 333 to K4, 000 about 40 percent will only increasing further the cost of doing business in Zambia.

In the 2024 National Budget presentation Finance and National Planning Minister Dr. Situmbeko Musokotwane proposed to increase the license fees for commercial kapenta operators to K4, 000 from K3, 333 last revised in 2011.

ZACA Executive Director Juba Sakala has questioned as to why such an increase has been made in light of the prevailing economic challenges that the people are facing. He said kapenta is the livelihood of many of people, and that it is already expensive on the market, hence an increase in the fee will hike its price.

Speaking in an exclusive interview with the Zambian Business Times, Sakala said the reparations of such decisions will cause a further increase in food items, and the cost of living will never go down, but keep getting higher.

“No one will get a license of kapenta at k4, 000, and sale a bag of kapenta at k2, 000. Everyone wants to make profit, because the cost of doing bringing the kapenta from the source to the seller is so high” said Sakala.

He said the cost of doing business, and production is so high in Zambia, and is the root cause of the high cost of living causing people to barely make it a day.

Sakala said government should look at the matter, and possibly consider bringing it down, or hike by minimal amount so as to avoid constraining the operators, and consumers.

He said it does not matter as to when it was last revised, the increase should at least be by K300. He said as much as it was revised about 12 years ago, it is important the current situation is considered.

“The increment could be necessary, but let us look at what percentage we can put so that it does not have a negative impact on other issues around,” said Sakala.   

The Zambia Consumer Association ZACA said the

The move by governments to increase the Constituency Development Fund – CDF – has been called into question by many especially since it seems to be coming at the expense of efforts to cushion fuel prices.

Although others have argued that it could be a political move aimed at winning support from certain constituencies, it’s important to consider the potential impact of these decisions on the wider economy and the public.

Economist Naylor Kopakopa has expressed displeasure over the government’s decision to increase the constituency development fund –CDF- from the current 28 million Kwacha to 30 million Kwacha at the expense of cushioning the fuel prices which has a direct impact on the economy.

Finance and National Planning Minister Dr. Situmbeko Musokotwane announced during the presentation of the 2024 National Budget that the CDF will next year be increased to 30 million kwacha from the current 28 million kwacha.

However, Kopakopa noted that more subsidies have been given to CDF and Education which are key sectors, but is of the view that part of that money should have been taken to cushion the fuel price.     

Speaking in an exclusive interview with the Zambian Business Times – ZBT, Kopakopa noted that the country is not meeting its growth target this year which was revised due to various reasons, as well as the inflation target, which may the country to end at a higher inflation rate.

He said the target of 6 to 8 percent inflation target by the Central Bank has been maintained for next, in addition to a target of 4.8 percent GDP growth rate, but has however questioned if the factors that have caused the country to fail to reach this target, not affect it next year, and what is being done to address the negative impact of these factors.

Kopakopa said the prices of goods have now doubled compared to the recent past due to the hiked fuel pump prices which is negatively affecting the majority of the Zambians.

“The economy is not growing, the inflation is growing. Now when you keep the subsidies constant, it means that their value is not as high as you want it to be, and the next thing that you would want to do, is to increase the allocation towards those subsidies so that you buy the same amount of goods that you intended to be buying” said Kopakopa.

He however said because the economy is not growing and has not been taken care of, and inflation growing, there will be no capacity to increase the allocation. He has therefore questioned why areas that have a direct impact on the economy are not being prioritized in order to create the ability to make money, and later allocate it to the preferred area of subsidies.

Kopakopa is of the view that instead of allocating more to CDF and education, part of that money must go to the support of fuel prices to have a more positive impact on the economy, and the lives of the people. “The minister acknowledges that fuel is the driver of economic growth, he mentioned it. But if you recognize that fuel is very important, what are you doing about it, because the oil price worldwide is beyond our control, and we want not to do anything to manage our exchange rates, how do we then grow the economy so that we create more money for subsidies” said Kopakopa.

He said there is no logic in setting very good targets, but almost doing nothing about it. He said it will not be by chance that the targets of inflation, and growth will be achieved, but needs to work for them and invest in them.

He said the exchange rate is the driver of inflation as well as fuel, but wondered what exactly is being done to address them.

He said there was no need to increase the CDF and education subsidies, but instead half of them, and take the money to fuel, and later come back and double the subsidies into education, and CDF when the economy has stabilized.

The move by governments to increase the

Mwinilunga Member of Parliament Newton Samakayi says the reopening of the Kasenseli gold mine is likely to face further delays as the matter is now actively in court.

Speaking in an exclusive interview with the Zambian Business Times – ZBT, the area Member of Parliament said for now there is nothing that can be done to reopen the gold mine until the court issues conclude.

According to Mwinilunga Member of Parliament Newton Samakayi, this is with regard to the latest development where the three prominent mining entities, ZCCM-IH Investment Holdings, Zambia Gold Company, and Kasenseli Gold Mine, have taken legal action to request a stay of a recent High Court Order in a dispute over the small-scale mining license of Kasenseli Gold Limited.

PCB Mining Limited had earlier demanded the Ministry of Mines and Minerals Development to immediately re-instate its license no.24988-HQ-SEL, being 375.443 hectares of the Kasenseli gold mine area in its original shape as per the High Court judgment dated September 11, 2023.

High Court Judge, Edward Musona, ordered ZCCM-IH and its subsidiary, Zambia Gold Company Limited, to forthwith transfer the said licence to the rightful owners, PCB Mining Limited.

Samakayi however said the people on the ground are eagerly waiting for the mine to start operating and boost the economy.

I wish that the court process will be concluded quickly so that the way forward is found to begin mining the gold so that the people and the country can benefit.

The Kasenseli gold mine has great potential to positively contribute to the economic development of the region.

The reopening of the mine will not only create employment opportunities for the locals but also contribute to the country’s GDP.

The mine has the potential to generate significant revenue for the government, which can be used for various development projects. Therefore, it is essential to resolve the ongoing court case surrounding the mine’s reopening to ensure its contribution to the economic growth of the area and the country at large.

Mwinilunga Member of Parliament Newton Samakayi says

Zambia Air Force (ZAF) instructor and fitness trainer Joseph Mtonga has suggested that Nshima should be eaten once in a while, if possible people should eliminate it from their diet.

According to a research conducted by Lilongwe University of Agriculture (Luanar), Nshima cooked using maize flours and recipes would continue to raise blood sugar levels in the long-term considering high glycaemic load figures recorded.

The report also revealed that food that increases blood glucose level faster after consuming it, is said to have a high glycaemic index.

Glycaemic index is a system that ranks foods on a scale from 1 to 100 based on their effect on blood-sugar levels.

In an exclusive interview with the Zambian Bussiness Times -ZBT, Mtonga noted that In Zambia Nshima is the reason there are lot of diabetic cases.

He alleged that
too much Nshima is also the reason most people have all these potbelly’s around.

He added that in Zambia, cases of diabetes are very high because of people incorporating unhealthy foods in their diet.

Mtonga said in villages it’s rare to find cases of diabetes because people in rural areas don’t only concentrate on Nshima and fast foods but incorporate health foods in their diet and that one way of overcoming diabetes is by having a shift in diet.

He alleged that for farmers, farming is not about the health of the nation but bussiness.

He said cultivating health foods should not be left to farmers alone but people should take it upon themselves and plant health foods for there own benefits.

Meanwhile, Mtonga expressed concern on the culture of exercising in Zambia which he termed as being very poor.

He alleged that in Zambia people hate exercising and feel it’s a waste of time.

He added that in most cases people who exercise are mostly teased by neighbors and friends.

“Sometimes when you jogging, your friends and neighbors will be teasing you and asking you questions like why you are punishing yourself or what are you chasing that you will never catch?. ” it’s because they don’t understand the importance of exercising, ” said Mtonga.

He added that his heart bleeds when he sees people gaining weight but not incoperating exercises in their daily routine.

Zambia Air Force (ZAF) instructor and fitness

Mansa airport is undergoing preliminary rehabilitation work to improve its safety and efficiency. The project, which began recently, has been long-awaited by residents and travelers in the area. The rehabilitation works are being carried out by the Zambia Airports Corporation Limited (ZACL), which is responsible for the management of all airports in the country.

Luapula province Permanent Secretary Mighty Mumba has disclosed that preliminary works have begun for the rehabilitation of the Mansa Airport in Luapula Province.

The Mansa the Airport is one of the four airports earmarked for rehabilitation. Other airports include, Mongu, Mbala, and Solwezi airports, with 700.7 million kwacha set aside for all together with the development of Chinsali, Choma, and Kasaba Bay Airports.  

In an exclusive interview with the Zambian Business Times –ZBT, Mr Mumba said the contractor is already on sight undertaking the necessary preliminary works, and are yet to meet to share the scope of works, and discuss on what is contained in the contract that will be executed.

Mumba said that some of the issues that were being highlighted included the absence of lighting. He noted that Mansa airport has not had a lighting system to allow plains to land and take off in the night which will be part of the contract.    

He also mentioned that there was talk of enhancing security around the airport, and putting up of cold storage facilities. “These were the issues that we have been talking about, but in terms of the actual content of the contract, and what is supposed to be implemented now after the contract has been awarded,  I am not preview to it, until after the courtesy call on my office” said  Mumba.  

The Mansa airport rehabilitation works are an important step towards improving the infrastructure and connectivity in Zambia.

Once the rehabilitation works are complete, the Mansa airport is expected to be safer and more efficient, which will benefit both residents and travelers.

With continued investment in key sectors such as aviation, the country is well-positioned to achieve sustained economic growth and development in the years ahead.

Mansa airport is undergoing preliminary rehabilitation work

Economist Yusuf Dodia has lamented at the lack of attention towards the enhancement of the private sector environment to stimulate more growth so as to be able to meet the demand of higher taxes as demands the 2024 National Budget.

Dodia said there are a lot of areas in the budget where government is expecting to collect more taxes such as income tax, PAYE, VAT among others, but noted that there is no area where the private sector is being stimulated in order to grow and be able to pay the higher taxes.

“If we are expecting for example to raise an extra four billion kwacha in PAYE, it suggests that we have to employ another possibly five hundred thousand people in employment. We need to see half a million people newly employed between now and December this year to be able to meet that revenue collection” said Dodia. He said these are challenges in the budget that need to be looked at critically.

He said it is the same with the 2 billion increase in custom duty collections, and 2 billion in exercise duty collection which suggest that the country has that much more exports and imports. He said looking at the income tax and extra 4 billion to be collected, it means companies need to be able to perform much better in 2024 in order to deliver this kind of taxes”.

Speaking in an exclusive interview with the Zambian Business Times – ZBT, Dodia however mentioned that there are no indications in the budget that will stimulate this kind of growth, noting that electricity tariffs are going up this year, next year, and the year after, and that fuel prices are going up in relation to the high oil prices noting that the war in Ukraine and Russia has pushed up the price of oil, fertilizer, wheat, and soya beans.

He said collecting more revenues from increased business performance does not seem to be very apparent with regards to next year’s budget.

He said perhaps the magic bullet would be what government announced through the secretary to the cabinet, that government was implementing the Export Proceeds Tracking Framework. He said the mechanism suggests that whatever exports are being done by any company in Zambia, be it in mining agriculture, tourism, or manufacturing, export earnings must come into a bank based in Zambia. “Now if that will be implemented, this will give us an opportunity to recapitalize our economy, and through that mechanism, we can begin to see our economy grow, and we can be able to see ourselves addressing the challenge of servicing debt, and also growing our private sector through cheaper access to capital” said Dodia.        

Economist Yusuf Dodia has lamented at the

Annual inflation for October 2023 increased to 12.6 percent from 12.0 percent recorded in
September, 2023. This development has been attributed to the increase in prices of food and non-food items.

The continued acceleration of Zambia’s inflation rate to have had several negative effects on the already struggling economy. This will likely lead to a decrease in purchasing power as prices of goods and services increase which would in turn lead to a decrease in consumer spending and a slowdown in economic activity. This will be particularly challenging for especially low-income households who are already struggling to afford basic necessities.

The 12.6 percent is against the central banks 6 – 8 percent target for this year.

According to the official statistics obtained by the Zambian Business Times – ZBT, of the overall 12.6 percent annual inflation, Lusaka province contributed the highest at 4.2
percentage points followed by Copperbelt and Central provinces which contributed 2.3 and1.3
percentage points respectively.

Southern contributed 1.1 percentage points while North-western
province had the lowest contribution of 0.4 percentage points.
details to follow….

Annual inflation for October 2023 increased to

The Lusaka City Council (LCC) has been accused of shielding and deliberately preventing accountability by withholding the names of the council police who confiscated the wheelchair of Mr. Daniel Mwamba, a physically challenged street vendor, an action that has caused great concern to members of the public.

According to media reports, LCC confiscated a wheelchair that Mr. Mwamba was using for his mobility and to trade in plastic bags, an ction

But LCC dispelled social media reports and defended the act by saying that council police only confiscated a wheelchair that Mr. Mwamba was using for displaying his merchandise and not the one he was using for mobility.

The authority also revealed that the wheelchair and his merchandise were returned to him the same day when the incident happened and that the confiscation was only meant to caution him that street vending is prohibited.

In an exclusive interview with the Zambian business times – ZBT, LCC public relations manager Chola Mwamba said she was not in the best position to reveal the names of the council police who confiscated Mr. Mwambas wheel chair.

Mwamba said LCC is going to secure Mr. Mwamba a trading place within the central business district.

She noted that allowing all the people who are physically challenged to vend in the CBD will mean that the authority’s aim of ensuring that street vendors do not return will be all in vain.

She reiterated that the local authority has great respect for human rights and the social inclusion of differently-abled people in society.

Meanwhile, the Human Rights Commission has condemned the Lusaka city council for confiscating a wheelchair from a person with a disability as punishment for engaging in street vending.

According to a statement made available to the Zambian business times – ZBT, Human Rights Commission spokesperson Mwelwa Muleya described the act by the council police as cruel, inhuman, and degrading punishment.

Mr. Muleya said the commission received the report of the confiscation with utmost shock.

He therefore called for the immediate restoration of Mr. Mwamba’s rights and dignity and empowering him with a trading place within the central business district as an act of humanity and minimizing the trauma caused on him.  

The Lusaka City Council (LCC) has been