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Lusaka Economist Yusuf Dodia has challenged the Zambia Statistical Agency – ZAMSTATS, to start releasing inflation statistics relevant to the general Zambian citizenry.

Dodia said the current 12.6 percent ZAMSTATS inflation rate as of October 2023 does not reflect the true picture of what is on the ground adding that the Zambia’s inflation is hovering around 20 -30 percent if the key consumer products are considered.

Speaking in an exclusive interview with the Zambian Business Times -ZBT, the Economist explained that, “When you look at our society what are the key consumer products? we are looking at mealie meal prices, minibus and taxi fares, the price of vegetables, meat, commodities such as clothing and so when you take these and decide to use these as parameters for calculating inflation, you find that inflation rate is running at about 20 to 30 %. So the question is which one of these inflation rates reflects what the people on the ground are actually facing? Consumer pricing index is the one that hits the nail on the head. So I am of the opinion that ZAMSTATS is not using the consumer pricing index as their mechanism in calculating inflation. The inflation rate they are giving us is not wrong but it might not be relevant to our general Zambian citizens, “ Dodia said.

“We are being informed through the ZAMSTATS office that inflation rates for October went up to 12.6%, but one wonders if this is reflecting the true picture on the ground. Inflation rate is very much a subjective mechanism and depending on the one who is calculating the inflation rate, they choose the parameters that they want to use when calculating it and that is where the subjectiveness comes in, “ said Dodia.

Dodia explained that Consumer pricing index is the one that hits the nail on the head and is of the view that ZAMSTATS is not using the consumer pricing index as their mechanism in calculating inflation.

“If we were looking at Zambia and wanting to select three criteria for calculating inflation which would be the cost of primary and secondary education in Zambia, the cost of medical care in Zambia and the cost of commercial retail premises in terms of rentals. If we use those as our parameters to calculate inflation, we would see an inflation rate of 1% or 2% because we all know that education is free from grade 1 to 12 in Zambia unless you choose to go to a private school. We all know that under NHIMA the cost of medical services is almost free, children are not paying anything, retiree’s are not paying anything and those that are working are paying a token of k30 to k60 which is almost free. So that gives you a low inflation rate, “

“And when you look at commercial retail premises such as shopping malls you will that many shopping malls are under subscribed in terms of customers renting, rental prices are falling down and when you do a calculation on these three parameters you get a very low inflation rate. So one asks a question that how then do you calculate inflation? The most useful mechanism for calculating inflation that the public can appreciate is the consumer pricing index where you look at consumer prices. What are the most important consumer prices which impact on the people in a given society, “ said Dodia.

Dodia emphasized that if we have low inflation rate that has not improved the lives of the people, then that inflation is simply an academic discussion and is meaningless to the average Zambians.

“if you get an inflation rate that is based on parameters that have very little influence on the day to day economy for every Zambian, you can hit the target of 6% by the end of next year and you prove to the people of Zambia that you have achieved that inflation rate but has it improved the lives of the people? If it hasn’t then it’s an academic discussion and it’s meaningless to the average Zambians. So for me the most important thing to do is to get the inflation rate calculation correct. In other words, use the formula for consumer pricing index to calculate the inflation rate for Zambian people and from there find out how expensive it is to do business in Zambia, what markets do we have in Zambia that we can exploit for the Zambian economy to grow, find out how we can support our small and medium enterprises to become the largest enterprises of tomorrow.

“These are the mechanisms that will grow the economy and bring down inflation rate but if you start with an inflation rate which is calculated from an academic angle, it becomes impossible to improve the economy, ” said Dodia.

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Lusaka Economist Yusuf Dodia has challenged the Zambia

Tech

Questions have arisen as to who is collecting taxes at Zambia’s dry port at Walvis Bay in Namibia as the Zambia Revenue Authority – ZRA whose mandate is to collect tax has denied being responsible for the collection of tax at the port.

The government early this year through the State-owned Company Zambian Cargo – ZAMCARGO, seized Zambia’s Walvis Bay dry port from a South African-based Zambian-born millionaire and promoter of “My Home Town” and owner of Africa Union Cargo, James Ndambo. Government said the move had been necessitated following the expiration of the six months’ notice period following the termination of the concession. due to poor performance and under utilization of the facility.

ZRA has been unable to state the tax revenue collection impact from prior collection to post-takeover collections at the Zambian Dry Port at Walvis Bay which is the busiest regional terminal situated in Namibia.

Months after the government took over the operations of the port, the Zambia Revenue Authority has confirmed that it does not operate the port thereby failing to disclose the taxes that have so far been collected since the takeover.

Questions have however arisen and people are asking who is now collecting taxes when the ZRA has denied doing so.

Efforts to however get a comment from the Minister of Transport and Logistics and the Zambian Cargo – ZAMCARGO on who is collecting tax and how much has been collected after the takeover, are underway.

The Zambia Dry Port aids in the import and export of goods to and from Zambia and other SADC countries via the Port of Walvis Bay. Cargo is transported between Namibia and other SADC countries via road. Cargo typically includes machinery and cars, chemicals, ore, bulk produce, and building materials.

Walvis Bay, with its large bay and sand dunes, is also an important center of tourism activity in Namibia.

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Questions have arisen as to who is

Mining

 The mining industry in Zambia has been a significant contributor to the country’s economy, accounting for a considerable portion of the country’s GDP. 

However, recent events have raised concerns about the government’s role in the industry. The Zambian Government, which owns a 20% stake in KCM through ZCCM-IH, recently signed an agreement that restores the Indian company’s ownership as the majority shareholder of Konkola Copper Mines – KCM.

Mining Expert however has questioned the government’s failure to increase its shareholding in Konkola Copper Mines – KCM, one of the country’s largest copper mines, which is questionable about its commitment to the industry. 

KCM is still majority-owned by Vedanta Resources, a multinational mining company based in India while the Zambian Government though the state-owned ZCCM-IH is a minority shareholder in KCM with only about 20 Percent.  

Speaking in an exclusive interview with the Zambian Business Times – ZBT, Mining Expert Edward Simukonda said the Government could have at least renegotiated for a better sharing ratio from 20 percent to even up to 50 percent before even allowing Vedanta to come back.

He remarked that this has come at a time when the government has been actively seeking to increase its participation in the mining sector. 

Simukonda has also criticized the government’s decision to hand over KCM back to Vedanta expressing disappointment at the Government’s decision adding that history is repeating itself knowing exactly the people that the government is dealing with.

Simukonda stated that this is treachery and the people have been let down stating that if they had not found anybody suitable to take over the mine they could have at least negotiated for a better sharing ratio from 20 percent to even up to 50 percent.

“It is very disappointing and sad because there is nothing that has happened because it’s like we have just gone back to square zero and knowing Vedanta with the treacherous behavior they have, I don’t see them implementing the promises they have. and I don’t think they will deliver what they have promised and if they do am sure there will be strings attached.”

KCM runs Konkola Mine in Chililabombwe, Nchanga Mine in Chingola, Nampundwe Mine in Shibuyunji District and Nkana Smelter in Kitwe.

Simukonda said, “The only exciting thing about it, is that people will start getting their salaries now on the Copperbelt. But otherwise, the money they want to boss about it is the people’s money so why even talk about it because they were supposed to pay it in the first place.” Remarked Simukonda.

He said, “I am very disappointed because I expected more especially where shareholding is concerned, I was expecting the Government to push for an increase.”

“This is a betrayal and people expected more and I can guarantee you only those with political reasons are celebrating but otherwise the fact is bringing back Vedanta is very disappointing.”

“History is likely to repeat itself on KCM because you know the MMD made a mistake they gave that mine for a song, now we have come here when we had an opportunity when these people were asked to leave we had an opportunity to renegotiate the bad deal that was there and nobody now talks about it.” He said.

Simukonda added that, “If this negotiation was done with people who understand the mining sector very well we could have had a better deal today.”

The government has further been challenged to take steps to ensure that its citizens benefit from the sector’s growth. This includes increasing its shareholding in key mines such as KCM and addressing the challenges facing the industry as failure to do so could have significant long-term consequences for the country’s economic development.

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 The mining industry in Zambia has been

Markets

Eastern province has of the month of October 2023 recorded a reduction of about 2.5 percent in inflation to 10.5 percent from 12.8 percent recorded in September 2023.

This has been attributed to reduced smuggling of mealie meal into neighboring countries, and the government’s intervention through the Zambia National Service –ZNS- by distributing cheaper mealie meal. 

Eastern Province Deputy Secretary Beauty Phiri explained that the major drivers of inflation in the province were the issues of smuggling mealie and maize into Malawi thereby causing a lot of havoc in the province. She said with government ensuring that mealie meal is just within Eastern Province, and not allowing anyone to take any maize meal, and maize to Malawi, the situation has quite improved. She said all measures have been put in place to ensure that maize, and mealie meal is not exported out of Chipata into the neighboring countries, in addition to the mealie meal prices that have been stabilized which was one of the major factors affecting inflation in the Province.

Speaking in an exclusive interview with the Zambian Business Times –ZBT, Phiri disclosed that there is currently mealie meal that is being brought in by the Zambia National Service ZNS which has helped to cushion and stabilize the prices within the province. “Government has managed to stabilize the prices of mealie meal, so you see that the inflation rate has quite gone down because no one is moving back and forth to go and either access mealie meal, or sell mealie meal at a very high rate so that it advantages their pockets, and not the people” said Phiri.

Phiri reemphasized that Eastern province is bordering on two countries, and the main business is agricultural produce, which is as well taken to the other countries, and other countries bringing in to the province as well. “The fact that we are sitting at the border line of Zambia, the other side of Eastern province, clearly tells us that our main activity is trading, and we trade with these agricultural products that we produce every year” said Phiri.

Phiri disclosed that recently, Eastern province has been a second contributor to the Gross Domestic Product –GDP- when it comes to agricultural products in the country, though it did not do well last year, only producing about 17, 000 metric tons.

She added that the maize produced in the province is the major trading point between Zambia its two neighboring countries on the eastern side. She said this is what brings in most people as it is their core business.  She said it is due to the reasons of reduced smuggling, and intervention by government through ZNS that inflation in the province has reduced.

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Eastern province has of the month of

Agribusiness

Government through the ministry of agriculture has projected to produce 10 million tons of maize by 2027 from the current from the current about 3.5 metric tons of maize production.

The 10 million metric tons maize production target by the said year is however questionable as Governmnet has not yet fully dealt with key issues that are affecting the country’s maize production as the sector still needs more funding.

Speaking in an exclusive interview with the Zambian Business Times – ZBT, Ministry of Agriculture Permanent Secretary Green Mbozi however said that the 10 million metric tons projection of maize production by 2027 will be a gradual process because to increase production, government will have to first deal with the issues that are currently affecting productivity.

Mbozi said that to hit the projected 10 million target by 2027, government will have to hit 5 million target this year.

“The projection for 10 million metric tons of maize is up to 2027. We would want to reach probably between 4 to 6 million this year, then by 2026, we go to 7, 8 million and then by 2027 we reach 10 million. It’s a gradual process because to increase production, you have to deal with issues of productivity that is how many metric tons you produce per hector, you have to enhance farmers knowledge of agronomic issues such as taking adherence to agronomic practices, weeding early planting and applying the right quantities of fertilizers, that type of thing. If we have to reach 10 million metric tons by 2027, we have to hit probably the 5 million mark this year. So for us to increase, maybe we need to start supplementing the rainfall with irrigation among small scale farmers because it’s becoming erratic because of climate change and because we get most of our production from small scale farmers,” he said.

“We also have to start bringing in the commercial farmers whose yields are higher than the small scale farmers. We can also get a lot of yields from the commercial farmers. Already that is being addressed by making the producer price attractive. So we will have the commercial farmers who will be able to produce up to 10, metric tons or even more per hector. So that will be a process, it cannot be achieved in a year,” said Mbozi.

Mbozi noted that should the country have the conditions that prevailed last year such as prolonged droughts and floods, it is possible that projections will be affected because at the moment, government is still relying on rain fed production than irrigation.

He added that projections will become more realistic if government starts investing more in irrigation.

He therefore encouraged Individuals who have the capacity to start water harvesting to do so by putting up dams in their farms.

“From the past 3.2 million metric tons produced las year. It could have been higher but again if you remember there were prolonged droughts and floods. We could have reached 4 million. So those are the issues. We can make a projection but I think, the projections are based on assumptions that we will have a relatively normal rainfall. Should we have conditions that prevailed last year such as prolonged droughts and floods, It is possible that again that our projections will be affected because at the moment we are relying on rain fed production than irrigation. So as we move forward if we start investing more in irrigation, our projections will become more realistic because we will have most of these predictions in our hands than relying on the rainfall,’’ he said.

“Well for rain harvesting first of all we have to have the rains? Where are the rains? We can only harvest if it’s raining and to harvest rain you need to have to create water bodies such as dams, so that when it rains, that water collects in those dams which you can then use after the rains. So the water harvesting is easier to talk about and we are talking about it but we still require a lot of things for us to start the process. We encourage Individuals who have the capacity to start water harvesting by putting up dams in their farms.   but going forward that the way we are looking at it. Currently there is water harvesting but not at a larger scale. For it to make an impact we need to do quite a lot in terms of making investments n both private and public investment. At the moment we are focusing on mechanization so that people within the shortest possible time when it rains, they can cultivate as much land as possible as a way of improving production and productivity,” said Mbozi.

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Government through the ministry of agriculture has

Tech

The Southern Africa Development Community –SADC- Truck Drivers Association of Zambia has bemoaned the increase in toll tariffs for heavy duty trucks by about 50 percent from K200 to K300 taking the new payment to K500.

In the 2024 National Budget, Finance and National Planning Minister Dr. Situmbeko Musokotwane announced an increase in toll tariffs for heavy duty trucks with 4 axle and above by K100, and abnormal load vehicles by K300.

SADC Truck Drivers Association President Eugene Njovu however said, the move will affect the truck drivers negatively, especially that transporters are still struggling with the high cost of doing business due to high cost of fuel pump prices.

Speaking in an exclusive interview with the Zambian Business Times –ZBT, Njovu said the association welcomes the initiative of road tolls, with the understanding that they are meant to ensure that the country has very good roads that will enhance smooth trade locally, and regionally.

Njovu however noted that despite this initiative, roads continue to deteriorate. “There is nothing to show that these tolls are working in terms of rehabilitation of the roads, or construction of other economic roads” said Njovu.

He said they expected government to exercise some leniency especially that they indicated they will embark on the Public Private Partnership –PPP-. “So we expected government to give a leverage to our transporters, some kind of reduction, or just maintain the current prevailing fees, so that transporters can have a breathing space in terms of tear and wear” said Njovu.

He said from the time the tolls were introduced, roads keep deteriorating, and are in a deplorable state thereby damaging vehicles extensively. He said the people charged at the end of the day are drivers, as they are the people who drive through the same bad roads. “When they get back to their employers, for purposes of maximization of their profits, they will throw the blame again on the driver” said Njovu.

Njovu said transporters are not happy, as they expected the opposite. He disclosed that there have been high level meetings that focused on discussing SADC trade protocols in terms of best practices across the region. He disclosed that for every one hundred kilometers, the standard fee is supposed to be 10 United States dollars, but has lamented over the increment made in the 2024 budget.

He noted that the abnormal load trucks which have been hiked to pay a toll price of five hundred kwacha, are the trucks that transport equipment needed for the mines to produce what will translate to revenue for the country.

He said there was need for serious consultations before the minister went ahead to make this pronouncement. He said it is unfortunate that whenever key decisions are made in the road and transport sector, it is rare that key stakeholders are consulted starting from the transporters associations, and drivers representatives. “We feel it is never too late. I think by bringing all key stakeholders together, this issue can be revisited, and a decision made that will not cause anarchy” said Njovu.

He said the members of the association expected something that will speak to improved conditions of service going into 2024. He said transporters will use the increment as an excuse, noting that fuel has increased, road tolls have increased, and their rates are still the same, thereby making it hard for drivers to improve conditions of service. He said this will cause a lot of problems in the driving fraternity, and that as long as transporters say they have low business, and they cannot pay to the expectations of the drivers, there is a possibility of protests taking place to seek government intervention.

He has also urged stakeholders in the transport sector, which include the transporters, trade unions, ministry labor and social security, ministry of transport, Zambia federation of employment, as well as mother body unions, ZCTU, and FFTUZ,   the ministry of labor came up with an initiative to conduct an indaba on the 25th of October to discuss issues that are affecting the road subsector in order to harmonize on a number of issues that have been causing a lot of noise. He has called on all parties to approach to this opportunity with an open mind so as to speak to real issues that will enhance change so that government can also collect the right needed revenue, and transporters can also make their right profit, and drivers can make their good monies.

“For us to get to that position, to a win situation, we all need to be honest with each other, and face the issues that re affecting us with sincerity so that we reduce on the amount” said Njovu.                    

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The Southern Africa Development Community –SADC- Truck

Agribusiness

The bakers’ association of Zambia has lamented that their sales and their customer turnout has reduced due to the high cost of living.
According to the October report of the Jesuit Centre for Theological Reflection – JCTR, the cost of living for a family of five in Lusaka has increased to K9, 294.76 In comparison to the recorded figure of K9, 146.06 in September 2023 which signifies an increase of K148.70.
The report by JCTR contradicts governments efforts of working towards arresting the high cost of living.
The report revealed an increase in food items such as roller mealie meal beans, kapenta, charcoal and a decrease in fruits such as mangoes, oranges and apples.

In an exclusive interview with the Zambian Business Times -ZBT, association chairman Aziz Kapdi revealed that bakeries are finding it very difficult to increase prices of their food items which is making it hard for them to make profit.
Kapdi added that the bakeries are complaining because the prices of raw materials like wheat, flour, yeast, the cost of electricity and fuel has gone up.

“The sales have reduced and the customers are complaining that the cost of bread is high, how will they manage to buy? We are finding it very difficult to increase the prices because if we increase what will the locals eat? If bakeries have to make any profit it means that bread has to be k18 to k20 at the moment they are not even breaking Even, “he said.
“The bakeries are complaining very bitterly because everything has gone up from the wheat, the flour, the yeast, the cost of electricity, fuel and everything has gone up. Import duties on raw materials is heavy, sugar is expensive, “said Kapdi.

Kapdi appealed to the government to look into wheat prices and remove Import duties on raw materials.
“Our appeal to government is that that Government should look into the wheat prices. If wheat prices go down, the flour will go down. If we get some concession on electricity, bakeries will benefit because then the prices will come down. If Government starts removing Import duties on raw materials so that means that the cost will come down, “said Kapdi.

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The bakers’ association of Zambia has lamented

Tech

The Bankers Association of Zambia – BAZ, says the increase in the minimum statutory reserve ratio will further reduce liquidity available to the commercial banks to lend and make profit noting that money that sits in the statutory reserve ratio does not earn any interest.

On the 6th of November 2023, the Bank of Zambia – BOZ announced through that effective Monday 13th November 2023, the minimum statutory reserve ratio on both local and foreign currency deposits, including government deposits and Vostro accounts deposits, will be increased by 3 percentage points to 14.5 percent from 11.5 percent. it was further stated that the revised statutory reserve ration of 14.5 will be based on the weekly return of selected assets and liabilities as of Wednesday November 8, 2023. The measure is aimed at relieving the persistent foreign exchange market pressure with a view to reining inflation.

Reacting to this, BAZ president Leonard Mwanza noted that if the banks are challenged in terms of having liquidity that they can lend, it will be a disadvantage for businesses that may need money from banks. He said this may further raise the cost of funds in the market. “To a business person, they might not borrow at the rate they were borrowing yesterday because of this decision. The rate may increase, but also the available funds that will be going to the market will reduce because of this statutory requirement to keep money on the statutory reserve ratio” said Mwanza.  

Mwanza however noted that the overall picture is to term inflation and control the depreciation of the kwacha.

In an exclusive interview with the Zambian Business Times (ZBT), Mwanza said if the two objectives are attained and inflation starts coming down, it will reduce the cost of doing business. “If the kwacha can stabilize and appreciate because of this measure, it can also help to reduce the import cost for those in businesses, and just generally the price around things” said Mwanza. He said in the immediate sense and /or direct reaction, there will be a possible increase in the cost of funds on the market, and because of the scarcity, the flow of money that perhaps should have gone to support the economy, will be reserved under the statutory reserve ratio requirement.           

Mwanza explained that among the tools the Central deploys to carry out its primary mandate of price stability in the financial markets are tools that help to contain inflation and align the kwacha to some form of stability. He said the statutory reserve ratio is one of the tools the Central Bank has at its disposal to help term inflation.

He mentioned three tools the Central Bank has at its disposal to help contain inflation. He said the Bank can either increase the statutory reserve ratio as has been done which is increasing it by a 3 percent margin. He noted that the last increment was 9 months ago when it was increased to 2.5 percent. “Within the year of 2023, the cumulative increase on the statutory reserve ratio is 5.5 percent. It has increased from 9 when we crossed the year to now 14 and half percent.  It is basically a tool that the central bank can deploy to control the flow of liquidity in the market” said Mwanza. He noted that the action is meant to reduce the amount of liquidity that will be circulating within the market as banks will have to increase the amount of liquidity that they will be keeping in the statutory reserve ratio with Central Bank.

He said the other tool that can be deployed which is being used is on the open market operations to determine the interest rate at which money is borrowed on the interbank. He noted that the interbank rate is around 26 and half percent. The third tool he said is the monetary policy rate which is most common. He noted that there has been a year on year adjustment of 100 basis points on the monetary policy rate noting that it was 0.25 in February, 0.25 in June and 0.5 in August.  “All these are measures which the Central bank can utilize with intent of carrying their primary function of financial sector price stability, but with an overall objective of containing inflation” said Mwanza. He noted that the country is far away from its target band of 6 to percent hence the measures to try and term inflation.

Mwanza noted that when the first increment was done for the statutory reserve ratio this year from 9 to 11.5 percent, inflation began moving to single digits until the second quarter going into the third quarter when it started going upwards. He noted that there was an accelerated increase in inflation for the months September and October which was a matter of concern. He said the measures the Monetary Policy Committee (MPC) took in August were meant to try and term inflation from moving away from the target band. “Even this particular measure, the tightening measure around liquidity speaks to the same thing in terms of what we want to achieve” said Mwanza.  

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The Bankers Association of Zambia - BAZ,

Mining

Economist Yusuf Dodia has emphasized the need for Government through the Zambia Consolidated Copper Mines Investment Holdings – ZCCM – IH to have a checklist of the commitments made by Vedanta Resources in regards to the operation of Konkola Copper Mines – KCM if the country is to have great benefit economically.

The Zambia Consolidated Copper Mines Investment Holdings – ZCCM – IH and Vedanta Resources Limited Company have signed two agreements to revamp the operations at Konkola Copper Mines – KCM with several pledges from Vedanta resources.

Speaking in an exclusive interview with the Zambian Business Times – ZBT, Economist Dodia hoped that the agreement signed between ZCCM – IH AND Vedanta resources has in it milestones and targets set accompanied with consequences or penalties if the agreed commitments are not met.

Dodia said with “with agreements, the devil is in the detail” hence depends on what details have been put into the agreement. He mentioned that from experience Zambians sign a lot of agreements and in many cases the investor does not honor the commitments made in the agreement. “But the problem is that there is also no penalty or sanction for not honoring the agreement” said Dodia. He is therefore hopeful that the agreement signed between ZCCM-IH and Vedanta Resources in respect to Vedanta continuing to operate KCM that there are milestones and targets set in the agreement which come with consequences or penalties.

Dodia recalled that in the last relationship between ZCCM-IH and Vedanta Resources, Vedanta was ready to put KCM on care and maintenance because they did not have the resources to recapitalize the business. He is hoping that this has been taken care of, with milestones and targets set, as well as penalties in place. He said this gives the freedom to be able to remove them as operators of KCM if it so happens that they forego their commitments, and find new partners that are more committed and have the resources.

Dodia is of the view that the most important and legal mechanism at hand is for ZCCM-IH to have a checklist of the commitments that Vedanta is making towards the operation of KCM, and follow the checklist to ensure that Vedanta is meeting its obligations. He said if Vedanta fails to meet the set obligations, ZCCM – IH should be quick to take action to remedy the situation.

He further added that it is important for government to look at the capacity of Vedanta resources adding that there are allegations that points to the difficulties Vedanta is going through abroad in terms of meeting its obligations to pay off bonds that they had issued and other financial commitments that is forcing them to look for investor partners to bail them out.

“That should impact on our relationship with them because on the one hand we are noting that they are facing difficulties in running the international operations, and on the other hand making commitments to Zambia which might be in contradiction to what is happening on the international scene” said Dodia.  He said it is important that this should be taken into account following the signed agreement, and in terms of the monetary mechanism they are putting in place.

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Economist Yusuf Dodia has emphasized the need

Lifestyle

The Zambia medicines regulatory authority (ZAMRA) has admitted that the authority has no capacity to regulate traditional herbal remedies at the moment because they cannot be proven scientifically.

According to the national center for biotechnology information the use of herbal medicinal products and supplements has increased tremendously over the past three decades with not less than 80% of people worldwide relying on them for some part of primary healthcare. Although therapies involving these agents have shown promising potential with the efficacy of a good number of herbal products clearly established, many of them remain untested and their use are either poorly monitored or not even monitored at all. The consequence of this is an inadequate knowledge of their mode of action, potential adverse reactions, contraindications, and interactions with existing orthodox pharmaceuticals and functional foods to promote both safe and rational use of these agents.

Since safety continues to be a major issue with the use of herbal remedies, it becomes imperative, therefore, that relevant regulatory authorities put in place appropriate measures to protect public health by ensuring that all herbal medicines are safe and of suitable quality.

Sneaking in an exclusive interview with the Zambian business times – ZBT, ZAMRA public relations officer Ludovic Mwape explained that ZAMRA is a scientific institution that regulates medicinal products or allied substances such as cosmetics. 

Mwape noted that the selling of unauthorized products is posing a danger to members of the public and therefore advised members of the public to look out for unregistered products.

“Traditional herbal products, we don’t have the capacity to regulate them at the moment because they cannot be proven scientifically. We are a scientific institution, we don’t regulate oils or chemicals, mostly what we regulate are medicinal products or allied substances such as cosmetics. If the product is medicinal then it falls within our mandate to regulate it but if it’s not medicinal, it’s not in our mandate to regulate it,” he said.

“So when you label a product and you claim that it can cure certain diseases, we need to prove it scientifically through our evaluation and our analysis. And also we’ve got guidelines on labelling, manufacturing of products because we need to inspect your facility and so on. Mostly what we are seeing are products that are not authorized being sold. We don’t even know where they are manufacturing them from. So that is posing a danger in terms of use of those products by the members of the public. So we advise members of the public to look out for unregistered products,’’ said mwape.

Mwape said ZAMRA has a challenge in regulating traditional herbal medicines but the authority has been working closely with the traditional healer’s association to give guidance on traditional herbal medicines.

He advised people to make informed decisions on traditional herbal medicines adding that regulating such products is beyond the authority’s regulatory mandate.

Mwape also revealed that the authority has developed guidelines on certain cosmetics such as skin lightening creams which will be implemented soon.

“We have to work closely with the traditional healer’s association. At the moment there is no law. I understand there is a bill which will be in effect to control traditional healers and the products that fall under them. On the traditional ones that is where there is a bit of a challenge. We need to work together and we have been working closely with the traditional healer’s association to give guidance in terms of products that affect the people but we usually come in to advise when it comes to advertising. For products which we can’t prove, it goes on to the conscience of the consumers. It’s up to people to make an informed decision because that is beyond our regulatory mandate because that is now spiritual, it’s not medicinal. So spiritualism cannot be regulated unless with the traditional healers,” he said.

“Maybe we can come in the form of sensitization by making people aware and they should be careful. People should be given a choice to choose whether they want to go in the spiritual route or to the scientific route. We have also developed guidelines and soon, we are implementing those guidelines on controlling certain cosmetics. So there will be certain cosmetics that will be removed from the market because we want a certain percentage of ingredients,’’ said mwape.

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The Zambia medicines regulatory authority (ZAMRA) has