Executive Issues May 2009

Volume 10 - May 2009

Volume 10

May 2009

Donors Deny Withholding Health Sector Support Vicious rumour turns out to be a figment of the originators’ imagination Zambia’s “cooperating partners” as the western aid donors like to describe themselves took the somewhat unusual step at the end of April to publicly deny that they had withdrawn financial support from Zambia’s National Strategic Health Plan(2006-2010), the country’s health master plan for the period. A statement on their behalf issued by the co-British High Commissioner to Zambia Tom Carver and Joy Hutcheon, Head of Britain’s Department for International Development(DFID) in Lusaka said the cooperating partners remained committed to support the Government of Zambia achieve the goals of the plan. Their statement came after a high level meeting between the donors and the Minister of Health Kapembwa Simbao and his team. The meeting appears to have been a scheduled one but was held against a background of persistent but as it turned out overblown media reports that the donors had “withheld’ aid from

the programme because they were unhappy with plans by the government to acquire at a cost of US$53 million, nine mobile hospitals, one for each province from and with apparently a loan from the Peoples’ Republic of China. The mobile hospitals were without much elaboration cast as an irrelevance in a country where hospital coverage is woefully inadequate -the head of the Medical Association was in fact reported to have trashed them out of hand! - and a furtive maneuver on the part of. Government was portrayed as having been acting furtively and to have been proceeding with calculated stealth to acquire the hospitals come what may presumably behind everybody’s back.

Now, it had been caught at it -in the manner of a naughty school boy who must be brought to heel. It was payback time for the government as the donors were reported livid and that they would have none of it. They had therefore withdrawn support to the health sector. The gist of media reports was basically that the government had “once more” been caught doing the wrong thing and the country would have to pay the price. But perhaps quite inadvently, they also successfully painted a picture of an axewielding group of donors actively blackmailing and exercising what the Penal Code, Chapter 87 of the Laws of Zambia. would be an unlawful veto on the . decisions of a properly mandated Inspector-General of Police Francis Kabonde has revealed government! that more “warn and caution” statements have been recorded from two other directors, one of them Nchima Nchito and That while purporting to be an unnamed one from the Copperbelt. Other statements involved in development have been recorded from equally unnamed people based in cooperation they were in practice South Africa who are said to have had connections with the using their financial muscle to airline. impose their will and prevailStatements were initially recorded from two local directors- effectively using their money to Fred Mmembe and Mutembo Nchito. supplant the government. What was consistently odd though is Kabonde said investigations into the non-remittance that the reports were obviously of passenger service charges to the National Airports written by Zambians but were Corporation (NACL) constituted the first phase of celebratory in tone! What any investigations into the affairs of the airline that abruptly Zambian would have to celebrate suspended services in January. He did not elaborate on what To pg 2

Zambian Airways Probe takes step forward The docket is now with the Director of Public Prosecutions The probe into the affairs of the ill-starred local airline, Zambian Airways has taken a step forward. The combined investigating team has handed over the preliminary report on the airline’s failure to remit about US$1, 793,782 in passenger service charges to the Director of Public Prosecutions (DPP). It is now up to the DPP on the basis of the strength of the findings to decide whether to proceed with prosecution or not. The joint investigating team of the Police, Drug Enforcement Commission(DEC) and the Anti-Corruption Commission(ACC) are pursuing the criminal charge of theft by agent against the airline’s directors, in contravention of Section 272 and 280 of

Contents Pepsi-Cola: Well on the way

- Page 2

Scaling-Up: PMTCT



Dora Siliya Tribunal She Flouted Constitution-tribunal

- Page 3

APRM: Zambia Makes Ready

- Page 4

Trade:“Aid For Trade” Initiative Given The Nod

Education: High Level Education Symposium Set

- Page 6

- Page 7

- Page 9

Orbituary - Chitalu Sampa

- Page 11

Esther Phiri’s rather hollow triumph

- Page 12

Executive Issues

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Volume 10 - May 2009

Donors Deny Withholding Health Sector Support From Page 1 about their government being arm-twisted over a matter in which they had a legitimate interest in line with their function is hard to fathom and suggests a serious comprehension deficit on the part of the writers. This general attitude in fact constituted a threat to the sanity of the many Zambians who continue to have hope for their homeland. So, while outwardly it was the government that was being portrayed as having hit the skids, the portrayal of the donors was perhaps even worse. They came through as manipulative, always with a hidden agenda and relying on blackmail to prevail and not above resorting to old-style “development cooperation” methods of brow beating aid recipients into line! The impression gave rise to genuine fears that if this were the state of play, despite years of engagement relations between the two were not on the appropriate footing and at quite critical a time for that matter. It didn’t help that donors are already seen in some Zambian circles as having with money bought or rented the country’s criminal justice system! Moreover, the lack of real details on what was going on led to apprehension that the matter could be rooted in the now quite frequent jitters that many “old world countries” respond with to China’s resurgence and that Zambia could merely be the latest theatre in this new cold war. On both counts, and as it turned out, on both sides too, there was cause for concern. Hence the statement from the donors set out to clear the air surrounding their responses and attitudes to this matter that the space of a few days went from being unknown to one hanging fire. The statement said that the donors had not withheld aid and had not issued any ultimatums. But that in the context of the national health strategic plan previously agreed to and running, they sought clarification on the effect, as mobile hospitals were not part of that plan and that they were not wielding an axe over anyone’s head contrary. Given the meetings, consultations and commitments by both sides by which such plans come about; the clarification that was sought seemed perfectly legitimate and normal. The problem was the way information was coming through. It clear from the fact there was actually concern about the mobile hospitals that this information originated from the donors themselves at least in some form. Why this should been so when they have interlocutors of long standing at various levels of government would seem consistent with some form of skullduggery.

there was only mutual affirmation of the two side’s continuing commitment to work together constructively and under acceptable international rules of engagement between governments towards addressing the health situation in the country. But as soon as it became clear that this was an unsuccessful attempt to contrive a situation, the local politics that partially drove it surfaced. Now, it was said that the mobile hospitals idea was President Rupiah Banda’s and presumably that is why it was bad and donors were expected and needed to trash it! There was little or no attempt to discuss the merits and demerits of the hospitals and perhaps deliberately so, because a mobile hospital(s) whether from China or elsewhere would be a worthy and quite appropriate addition to the arsenal of the MoH. Mobile hospitals do have applicability in Zambia’s situation and if indeed it is President Banda’s idea, the honourable thing even for his political detractors might be to accept that in this case at least, he is exploring an idea whose utility people will readily understand.It is their position and attitude that need to be explained and are unlikely to make sense readily. What can be intrinsically wrong with mobile hospitals? These are after all hospitals to save lives and not Nazi-style gas chambers to exterminate people. What it really was about is a puzzle but perhaps it was the reflection of the chaff that now goes for opposition politics in Zambia and the disgraceful lows it seems unable to climb out of. April was not a particularly successful month for vicious rumour. The statement of the donors closely followed a media advert from the former Director -General of the now dissolved Zambia National Tender Board David Kapitolo thanking the president for affording him the opportunity to serve in that capacity and pleading that the appointment of a new man in his place to run the succeeding agency should not be politicized. Again this followed media reports that Kapitolo had been sacked because he testified in the tribunal that probed the former Minister of Transport and Communications, Dora Siliya. Though this was low level speculation in the circumstances, it was presented as a fact and that what had happened to Kapitolo was the fate that awaited government employees who testified in that tribunal!

But their statement dispelled the notion of arm-twisting behind the scenes and reaffirmed their commitment to work with the government in the spirit of partnership. The statement said the issue of the mobile hospitals would be discussed and assessed jointly with the Ministry of Health (MoH). In the end,

Perhaps there is too much of an attempt to recruit people to a position, point of view or persuasion that they do not subscribe to and have no reason to do so. Well. So far, it would seem that many people still firmly want to think for themselves and draw their own conclusions according to their own deductions. With the wide licence that is being applied, there promises to be more canards and denials.

Zambian Airways Probe takes step forward

Pepsi-Cola: Well On The Way

From Page 1

The next phase appears to be construction of the plant.

the second phase would be or how phases in all were contemplated. Kabonde’s briefing followed remarks earlier in the month by the acting director of the Anti-corruption Commission (ACC) Rosewin Wandi that investigations were proceeding apace and the police who were the lead agency in the probe would give details as deemed appropriate.

Some specifics of the new Pepsi-Cola bottling plant planned for Lusaka have come to light. The plant will be constructed and owned by Varun Beverages Zambia Limited, a company wholly owned by Arctic International of Mauritius, a subsidiary of the RJ Corp, of India. The proposed site is a 20 acre plot in Chinika in the Heavy Industrial area of Lusaka.

The developments came as the other locally-owned airline Zambezi Airlines seemed to take to the skies even more.

It will consist of an office block, storage sheds, packaging and production halls, a borehole and water treatment facilities. The production processes will include delivery of raw materials, .water treatment, syrup preparation, blending of the concentrate with syrup, carbonation, bottling and dispatching of the products to the market. The period for public comments on the Environmental Assessment Report for the Plant drawn up by the Environmental Council of Zambia (ECZ) was scheduled to close on April24, 2009.

It announced the appointment of Cornwell Muleya as the airline’s Chief Executive Officer. He was reported to have previously been Vice-President (Finance) for the Mauritian national airline. He is said to have been Chief Executive officer and board director for two airlines as well as Chief Financial Officer and Finance Manager for two so far unnamed airlines. He is a UK-trained chemical engineer and a Fellow of the Chartered Association of Certified Accounts (FCCA).

With the formalities now out of the way, construction should proceed shortly. The plant is one of two significant Indian investments in Zambia. The other is the proposed medical diagnosis centre in Lusaka by Bharat Scans (Pvt) Ltd.

Executive Issues Issues Executive

Volume 10 - May 2009

Parliamentary Committees: (Some) Flogging Of Dead Horses?

News

Some at the receiving end were not in position when irregularities occurred

suspended, dismissed, retired or had died continued to draw full salaries for up to more than three years!

The system of public hearings by committees of the National Assembly is shaping up and there is a lot of “sound and fury.” No less than two Permanent Secretaries and one management team have in the recent past been sent away from hearings for coming inadequately prepared. The National Assembly is in recess and most of its committees are holding public hearings.

The committee observed that it was shame that a Ministry that had the responsibility for law enforcement could have such a financial record. The management of the NCZ was sent packing with the committee chairman completely unimpressed by the NCZ’s complaints about poor funding and not being offered the contract to supply fertilizer for the Fertilizer Support Programme (FSP). Muntanga brushed many of the NCZ’s complaints and warned against under-rating the committee.

It hasn’t been easy going for many of those who have had to appear before them as the committees attempt to assert their authority. Two things are happening. First, standards for submissions are being progressively set and there is also something akin to flogging a dead horse by grilling officers who were not in their positions when what is being queried occurred. Local Government and Housing Permanent Secretary Coillard Chibbonta was asked to leave, go and prepare better and resubmit to the Committee on Energy, Environment and Tourism on the question of the involvement of local councils in the Rural Electrification Programme. Committee chairman Gary Nkombo (UPNDMazabuka) told the PS to go back and prepare adequately and re-submit on the issue because of apparent contradictions in his submission. Again, the management of Nitrogen Chemicals of Zambia (NCZ) was similarly ordered to go back and re-submit later by the Lands and Agriculture Committee chaired by Request Muntanga (UPND-Kalomo). Newly appointed Home Affairs Permanent Secretary Ndiyoyi Mutiti had a real hard time explaining the seeming lack financial controls at the Ministry to the Public Accounts Committee (PAC). The committee said that the 2007 AuditorGeneral’s report had highlighted glaring irregularities at the Ministry of Home Affairs and its financial report for that year was the worst in three years. Committee chairman Charles Milupi (Independent-Luena) said some of the irregularities were so serious that the Attorney-General and the Public Procurement Authority (old Tender Board) had expressed concern about them. There was poor record keeping at the Ministry, a trend associated with fiddling and there was delayed banking of government revenue of between five to 285 days! Thus K6.9 billion in revenue collected by the Immigration Department in 2007 was only banked in February 2009! The committee further observed that it was not enough for the ministry to merely recover money from erring officers but that it needed to deal with them in accordance with law. Some officers who had been

He insisted that management should be serious and submit a comprehensive written report on how it would run the company to full capacity if funded. Again, the Permanent Secretary for Agriculture and Co-operatives Bernard Namachila. was in hot water at the PAC sitting when he was ordered to bring before the committee two people with the highest un-retired imprest so that they could explain why they were not retiring it. The amounts involved were not specified. Milupi observed that some civil servants seemed to have turned imprest into a source of cheap loans. It does appear as though the committees are determined to make their weight felt. They need to because there are suggestions that their functions are not well understood going by the number of “unacceptable” submissions that must be re-submitted and apparently even some committees would appear not to be too clear about their remit. Should civil servants below the rank of Permanent Secretary be accountable to a Committee of Parliament, isn’t that stooping low? Civil servants must remain accountable to their superiors as per chain of command in the civil service and not to some politician whose motive may be to improve their political profile or is that part of it as well? The PAC for instance needs to be talking more to the controlling officers who were in position during the time of the irregularities and not just to controlling officers in position at the time of the hearing. Some of the issues they raise need answers but cannot adequately be dealt with because the officers under interrogation simply do not know the details as they were not in their current positions when the transaction or whatever is being queried occurred. Apart from ordering a re-submission, what other powers have the committees got? Well, it is a developing system. It has at least started and not badly, on the whole. But clearly it will need some refinements and perhaps some real muscle.

Dora Siliya Tribunal She Flouted Constitution-tribunal But troubling questions of whether one can be found guilty of an offence they have not been charged with and whose particulars they have not been made aware of persist. Minister of Communications and Transport Dora Siliya April 21, 2009 resigned her cabinet position following a finding by the Parliamentary and Ministerial Code of Conduct tribunal that she flouted the constitution by ignoring the advice of the Attorney-General on a Memorandum of Understanding (MOU) signed between the Government and RP Capital of the Cayman Islands for the valuation of the assets of the virtually insolvent Zambia Telecommunications Company (ZAMTEL). The tribunal had been constituted to probe her conduct on three specific “charges” following a string of media allegations against her. On all the three charges formally brought against her, the tribunal found her not to have contravened the Parliamentary and Ministerial Conduct of Code. Some

of them would not have constituted contravention of the code even had they been proven. She was instead found to have violated the constitution by not going along with the legal advice of the Attorney-General and that was not what was at issue and was not the substance of allegations against her.Siliya subsequently indicated she would seek judicial review of the tribunal’s finding because it wasn’t the substance of the proceedings and she had not been given an opportunity to be heard on that point when the rules of natural justice demand that she be heard. It becomes a question therefore whether justice was actually done and was seen to have been done in the circumstances. It is an issue that is bound to exercise the minds of lawyers when it comes up-in effect whether a person can be found guilty of an offence they have not been charged with and whose particulars they have not been furnished. It doesn’t seem that the matter is at an end at all.

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Volume 10 - May 2009

APRM: Zambia Makes Ready It remains to be seen how she’ll fair in both implementation and result The National Governing Council (NGC) of the African Peer Review Mechanism (APRM) in Zambia indicated during April that it had completed work on a comprehensive multi-media communication strategy for a nation-wide sensitization programme on the process. The sensitization programme is scheduled to run until December 2009. Giving the first update on the APRM process in Zambia, chairperson Tamala Kambikambi disclosed that the NGC had selected three technical research institutions to begin the inquiry process countrywide in the four APRM thematic areas: Democracy and Good Political Governance, Economic Governance and Management, Socio-Economic Development and Corporate Governance. For Socio-Economic Development, the Steadman Group will provide consultancy and the PMDC will do so in the area of Corporate Governance. A consultant has been hired for the Democracy and Good Political Governance segment. At the time of the update, the services of a consultant for the Economic Governance and Management inquiry were still being sought. Ms. Kambikambi said that the APRM self-assessment process effectively began from the time the Memorandum of Understanding (MoU) was signed with the APRM Secretariat through Ms. Graca Machel, the panel leader for Zambia. The MoU operates effectively as a treaty. The assessment should be complete in time for Zambia to be peer reviewed at the African Union Summit scheduled for January 2010. The APRM is more readily associated with the New Partnership for Africa’s Development (NEPAD). Well, that is the context within which it occurs. But both NEPAD and the APRM have also an avowedly Zambia background. It was the final declaration of the 37th Summit meeting of the Organization of African Unity(OAU) held in Lusaka’s Mulungushi Hall in July 2001that gave birth to NEPAD. That summit adopted a document setting out a new vision for the revival and development of Africa. That is the document that led to the setting up of NEPAD. When the African heads of state met next, it was in July 2002 in Durban and the OAU had transformed into the African Union (AU). More to the point, they added a declaration on “Democracy, Political, Economic and Corporate Governance.” In that document the African leaders undertook to work with “renewed determination” to enforce, among other things, the rule of law; the equality of all citizens before the law; individual and collective freedoms; the right to participate in free, credible, political processes; and the adherence to the separation of powers, including protection for the independence of the judiciary and the effectiveness of parliament. That declaration committed participating countries to establish the APRM, to promote adherence to, and fulfillment of its commitments. It is designed as a systematic examination and assessment of the performance of a country by peers, designated institutions or by a combination of countries and the designated institutions. The goal is to assist the reviewed country to improve its policy making capacities, adopt best practices and comply with established standards and principles. The process is based on a self-assessment questionnaire of the APRM secretariat divided in the four areas in which the NGC has initiated work. It assesses states’ compliance with a wide range of African and International human rights treaties and standards. The questionnaire was adopted by representatives of the heads of state and governments of all APRM countries in Kigali, Rwanda in February 2004. Its approach is a non-adversarial, interactive dialogue-based inquiry into the four areas and relies heavily on mutual trust among countries involved, as well as their shared confidence in the process. There are four types of reviews under APRM: Base Review which is carried out within 18 months of a country becoming a member, Periodic Review carried out every two to four years, Requested Review, any

additional review on request and Crisis Review. The APRRM is voluntary and is open to all member states of the AU. It has a secretariat at Midrand in South Africa and a supervisory panel of seven eminent persons. A country joins by depositing the signed copy of the APRM Memorandum of Understanding adopted at Abuja, Nigeria on March 9, 2003 by the NEPAD Heads of State and Government Implementation Committee. As at July 2008, 29 countries, more than half the 53 countries of Africa had signed up for review. Zambia among them. Late last year, Zambia appointed a 47-member NGC for the process. It initially was headed by the current Special Assistant to the President (Political), Akashambatwa Mbikusita-Lewanika. He resigned subsequent to his appointment to State House and Ms. Kambikambi from the Women’s Lobby Group (WLG) replaced him. Preparations for the process are gathering pace. The Panel Leader Ms Machel visited in March and held discussions with the government and the NGC. It is now at implementation stage. It remains to be seen how Zambia will fair both in implementation and the result.

Inflation Dwarfs Statutory Minimum Wage Inflation up 1.2% in April A surge in inflation in April raised questions of whether the Statutory Minimum Wage at K260, 000 per month was still relevant. The annual inflation rate in April increased by 1.2 percentage points from 13.1% in March to 14.3 %.The jump is accounted for by a 7.8 percentage points rise in the price of food. The price of mealie-meal for instance was perhaps at its highest during the month. The Central Statistical Office (CSO) also reported rises in the price of cereals and cereal products, meat, kapenta, fresh vegetables, dried beans, oils and fats, fresh milk, tea and coffee, sugar, table salt and other processed food products. Inflation would seem to be steadily eating away at what remains of the statutory minimum wage, deepening poverty and it is questionable whether in its present form, it can ever be an effective guide to the minimum required to at least make ends meet. It is set periodically and remains in force regardless of the usually rapid and farreaching changes in economic fundamentals. Further, it doesn’t seem to be the case that it is always adhered to. It would seem that even bodies close to the government can turn a blind eye and apparently get away with it. The General Secretary of the Zambia United Local Authorities Workers Union(ZULAWU), Noah Kalangu who recently toured the North-Western Province disclosed that some permanent council employees there were still paid as low as K150,000 and K250,000 per month. But in the same councils some chief officers were getting as much as K5 million per month. He decried the gulf and called for unity among trade unions to fight for a review of the statutory minimum. But it may not be enough to merely fight for a new statutory minimum that will be just as rapidly overtaken. Instead it may need to be fixed by a mechanism driven by core factors on the ground like inflation and the cost of food and services. It also does need to be impressed on “investors” that the statutory minimum is just a guide. There are increasing reports of employers who pay just it on the basis that “that’s what your government says.” Perhaps, it is the perpetual lag in issues like this that lead to the serious deterioration in industrial relations that has occurred from time to time. Industrial harmony and not just tax breaks is a factor for attracting the much-sought after Foreign Direct Investment(FDI). Without constant review of the fundamentals of the area, they could be a negative factor in the drive to attract more it.

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Sangomas Light Up Zambia They came, they saw and perhaps conquered A contingent from the Freedom Park in Pretoria, the official final resting place of all fallen South African freedom fighters that visited Zambia at the beginning of April had perhaps the greatest impact of any group from that country. They had a mission: to repatriate to Freedom Park the spirits of South African freedom fighters who died or were killed in Zambia-the headquarters in exile of the African National Congress (ANC). They came to “heal and cleanse” and take the spirits of the freedom fighters buried in Zambia home. There are several South African freedom fighters buried in Zambia. Among them: Duma Nokwe a veteran freedom fighter of the Mandela generation who was the ANC’s General Secretary, Johnstone Makatini who was in charge of international relations and was succeeded in that role on his death by the former President of South Africa, Thabo Mbeki, Cassius Maake, the Umukhonto We Sizwe (MK) man who was gunned down in Swaziland by a death squad that awaited his return to Zambia via Swaziland from Mozambique where he had traveled in connection with the upheavals wrought by the Nkomati Agreement. There are others as well. The one who was popularly known as Chris Hani for instance whose assassination in South Africa pushed the country to the brink of civil war had a strong Zambian background and was over long periods resident in Lusaka. Those who came to Zambia to “heal and cleanse” and as the logic goes, assuage the spirits of the dead freedom fighters went the African route and their observances were steeped in African ritual. Among their number was an authoritative traditional doctor or Sangoma. They were based at the Lusaka Show grounds where they performed traditional cleansing rituals and concluded their itinerary by an early morning visit to Leopards Hill Cemetery where some of the freedom fighters are buried. They picked up a small pebble from there which they went back with to deposit at Freedom Park to signify the return of the spirits of the departed freedom fighters to their homeland and designated final resting place. They said their mission was successful and were very effusive about it as they flew back to Johannesburg. It was mission accomplished as they departed from Lusaka International Airport. The Pretoria-based Freedom Park Trust has previously held similar séances in Botswana, Lesotho, Tanzania, Swaziland and the United States. In Zambia, there were howls of outrage from some Christians especially of the “born-again” variety. They were largely upstaged and were in uproar. As far as they could see this was a case of “demon worship” and it blended in well with one of Zambian Christendom’s latest terrors-Satanism- much talked about but so far never conclusively proved. They blamed government for having allowed the “demon worshippers” in. Zambia, they argued is a Christian country which should not tolerate anything bordering on Satanism. This was a blemish on Zambia’s “Christian nation” status as far as they could see. Some couched their disapproval in sermons and biblical quotations. They warned of the certain consignment to hell with its brimstone and fire of those who worship spirits “because the bible expressly forbids it.” But most of this condemnation was largely a case of locking the stable after the horse had bolted. It came after the departure of the “Africanists” and that wasn’t the majority view, in any case. Opinion was divided even among Christians with some refusing to condemn on the grounds that the Zambian Constitution as at now does not prohibit the profession of other religions but in fact says they should be tolerated. As far as they were concerned this was just one such religion and the only way to stop it was for Christians to convert the “devil worshippers.” It is hardly surprising however that the South Africans left satisfied. They and the rituals that they performed were very much at home in Zambia. There were only minor differences otherwise most of what they did , including the basic idea itself were no strangers to Zambia being very close to what the Zambians would do and many still do, when they observe their own traditions. Zambian traditional doctors who readily understood the mission were on hand to facilitate. The Christians felt hard done by and probably justifiably so since these events tended to confirm Christianity for the foreignto- Africa religion that it is. Clearly, the Africans had their own religion(s) long before their contact with the Europeans. Like Christianity it was also based on faith and was meant to commune with God. Early missionaries condemned every trace of it to suppress it and make room for their credo. If the Africans are God’s creation, there is no reason why their religion and attempts to commune with God should be “demon worship.” It can only be worshipping like the Christians do and the contingent from South Africa may have done nothing more than remind everybody who they really are.

KOD: Cattle Re-stocking A new start in livestock management has of necessity to be based on disease-management. Government now seems firmly persuaded that the rearing of livestock has the potential to expand the agricultural export base. A Ministry of Livestock, Fisheries and Veterinary Services headed by a cabinet minister is emerging from within the current Ministry of Agriculture and Cooperatives. Still, Zambia is far from realizing its livestock potential. There’s is quite a backlog of issues. In fact only that segment of livestock in the hands of commercial farmers has been problemfree. Whether it has been profitable given the rather limited local demand and, the absence of a real local meat processing industry and of an organized export market, is another matter. In the past few years livestock diseases have had virtual free reign. Control measures have been tentative, episodic and largely ineffective. Stock movement bans have had to be regularly imposed to stop the spread of diseases and the diseases have been the same old ones, few new ones. These near endemic diseases have all but decimated the traditional herd. The disease known as “corridor” has to be considered endemic in the Southern Province. While other cattle rearing areas have had intermittent outbreak of such diseases as Foot and Mouth and Bovine Pleural Pneumonia (CBPP) in the Western and North Western Provinces. So heavy has the toll been over the years that government has had, in the past few years to begin a re-stocking exercise. But even that is threatened by the same diseases which remain latent. Southern Province Permanent Secretary Darius Hakayobe recently called for a halt and re-designing of the whole restocking exercise in that province because the same cattle that was issued out as part of restocking were dying from the corridor disease. He suggested that the programme be redesigned to concentrate on eradicating the disease first through construction of dip tanks and associated infra-structure. He indicated that this course of action had already been agreed with the Ministry of Agriculture but needed to be effected. It is incidentally in line with the recommendations of the recent “indaba” which said there should be compulsory dipping. The situation in the Southern Province in fact raises serious questions about the whole exercise if it actually introduces new cattle to disease-riddled areas. It should be better targeted than that to yield any results at all. It is clear that re-stocking will only have the intended results when the diseases are cleared. Emphasis at this stage has to be on putting the disease-management infra-structure in the form of dip-tanks and regular dipping in place before re-stocking. Something along these lines now appears inevitable. Apart from the Indaba recommendation for compulsory dipping, the 2009 Budget has an allocation of K70.7 billion for livestock development, up from K29 billion in 2008. One of the objectives this year is the creation of at least one livestock disease free zone in the country. There is at least some shuffling of feet around the issue of animal health and particularly cattle. President Rupiah Banda has recently disclosed that Zambia and Brazil are in discussion over cooperating in the manufacture of livestock vaccines, seen as critical to the development of livestock. The Livestock Minister Bradford Machila has in his recent tours been giving an out an outline of policy. He recently criticized the frequent blanket stock movement bans, so far the main weapon in the arsenal for fighting livestock diseases. He said this was costly to farmers who could not then transport livestock and livestock products to the market. Moreover the bans have been imposed mostly without the veterinary officers having the capacity to enforce them properly! Even small-scale livestock farmers and traders have complained about the effects of the constant stock movement bans. Everybody it seems has had enough of them. This is a case where old methods won’t do. The critical question is how soon the new can be in place to make a real beginning in modern livestock management which is what the current ambitions being expressed currently require.

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Volume 10 - May 2009

Education: High Level Education Symposium Set It is an appropriate forum for a frank examination of the system but it is doubtful whether performance can improve without the requisite funding and an improvement in industrial relations. The Ministry of Education (MoE) is getting ready for an interrogation. Yes, of a suspect. But only in the form of the current Zambian educational curriculum. The MoE has called for papers for a high level National Curriculum Symposium scheduled for June 1-3, 2009 in Lusaka’s Mulungushi Hall. The symposium is touted as “a critical examination of the curriculum in education at all levels and its relevance to the Vision 2030 for Zambia.” By all accounts, it is a pivotal undertaking and is preliminary to a process that could have far-reaching effects: “The agreed framework arising from the symposium will be the basis upon which a national curriculum reform at all levels of education will be undertaken.” According to the MoE, the symposium will bring together all key stakeholders in the education system to critically look at the current curriculum and its relevance to the Vision 2030. Vision 2030 is about transforming Zambia into a “prosperous middle income country” by that year and by then education and training should be “innovative, productive, life-long and accessible to all,” that is at least what the Vision 2030 document demands. The issues before the symposium will be to “critically examine” the nature of the current curriculum, “critically examine” its relevance, create a match between schooling and education and “show linkages to the Vision 2030.” It is expected that the symposium will help define the type of graduates the country expects and create a conducive environment for the acquisition of knowledge, skills and entrepreneurial skills to learners in and out of school. The centre-piece of the interrogation will be presentations; discussion of expert opinion papers and other empirical and non-empirical researches focusing on players in the educational system; learners, teachers, teacher educators and lecturers; and support staff-their training, qualification, appointment, service, retention and retirement. Attention will be given to all educational programmes; the institutions, teaching and learning resources and institutional structures. The MoE has already called for papers. It will accept proposals up to April 30, 2009 and will notify acceptance or otherwise of them by May 8, 2009. Full papers for presentation will need to be submitted by May 22, 2009.The symposium comes at a time when some concerns have been expressed about the direction of education following the decision to abolish the cut-off point system at Grade Nine and allow all pupils with full certificates to proceed to Grade Ten. It is a bold move but one that has been questioned and not without justification on the grounds of the inadequacy of teachers and classrooms resulting in crowding leading to an impossible teacher to pupil ratio. The Catholic Church some of whose schools registered the best results at Grade 12 in 2008 was less than impressed by that move. But that is just one. There are several issues in education. The central one being that despite increasing allocations, it is far from being funded to the requisite levels. Tertiary educational institutions are mainly in decay and continuation of the policy of “benign neglect” of the past few years should bring them to their knees soon. Further, going by the annual examination results, the public school system is not performing optimally. In 2008 for instance, no public school achieved a 100% pass rate in the school leaving examination! There are some pointers to why this may be so. Even as the MoE announced the symposium for instance, it was already embroiled in one more of its regular standoffs with teachers. Pockets of them went on wildcat strikes as the first school term drew to a close in April. There were in fact sporadic reports of teachers going on strike earlier than that. The source of aggravation this time was the non-payment of rural hardship allowances to those serving in rural areas and of housing allowance to teachers across the country. In protest, some went on holiday early. Given the general run of things,

it will not be surprising if the next thing won’t be that they will not open for the second unless they are paid! The Zambia National Union of Teachers (ZNUT) has called for the release of the K60 billion budgeted for housing and rural hardship allowances in 2009 in order to break the impasse and that appears to be in process at least. The official reason advanced for the delayed payments is somewhat astonishing; that there was a misunderstanding over the definition of a rural school and that some urban schools had been classified rural! Hence the Secretary to the Cabinet and the Ministry of Education had to revisit the matter. Disruptions issuing from the like have now become more or less the usual cycle. The MoE and its teachers seem to be locked in a perpetual low intensity combat and mainly over delayed payments. It probably has the worst industrial relations record of any ministry and that outwardly at least, may be part of what is impacting results in public schools. But even the integrity of the results themselves is questionable. The management of examinations results would appear to be quite chaotic and especially so at Grade Nine but even at Grade 12. Many times candidates are credited with the wrong set of results and whole classes are sometimes indicated as having been absent even though pupils sat the exam! The kind of problems that habitually arise from marking and compiling results do not inspire confidence in the system. In this chaos, the possibility that some candidates go away with the wrong results is real! There is therefore reason to look forward to the forthcoming interrogation of the educational system as presently operating. But it will be worthwhile and useful only if it can produce the required changes and does not end up as one more talk shop on the road to the certain ruination that awaits any country that plays fast and loose with the educational system.

Health: Malaria Retreats somewhat…

…But it was still the second leading cause of mortality in 2008 and the first in terms of morbidity. Malaria-the disease transmitted by the female anopheles mosquito- has not been conquered but Zambia has begun to roll it back. Malaria deaths have declined by 66%. The World Health Organization (WHO) has traced the decline to measures implemented in 2006. The decline in deaths was especially steep after 3.6 million long-lasting insecticidal bed nets were distributed between 2006 and 2008. During that period malaria deaths declined by 47% and nation-wide surveys showed parasite prevalence to have declined by 53%, from 21.8%to 10.2%. The percentage of children with severe anemia declined by 68%, from 13.3% to 4.3%. The WHO said this decline in mortality means that Zambia had achieved the 2010 Roll Back Malaria target of a more than 50% reduction in Malaria mortality compared to the year 2000. Accelerated malaria control activities started in Zambia in 2003 when approximately 500,000 insecticide-treated bed nets were distributed and Artemisinin-based Combination Therapy (ACT) started in seven pilot districts. A grant from the Global Fund of the United Nations (UN) financed the effort. Disclosure of the improving record in the fight against Malaria came during observances of World Malaria Day –April 25. The Ministry of Health used the occasion to launch a new malaria drug for children known as Coartem Dispersible or Coartem D in short. It is in the form of a flavoured sweet tablet which dissolves easily in water. The drug was developed by Medicines for Malaria Ventures and the Swiss pharmaceutical company, Novartis. Minister of Health Kapembwa Simbao revealed that malaria testing tools which enable quick diagnosis were available in the health system.

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Volume 10 - May 2009

Scaling-Up: PMTCT Combating Mother- To- Child Transmission seems to be the “new frontier” in the anti- HIV/AIDS programme. There is increasing focus on the component of the HIV/AIDS programme known as “Prevention of Mother to Child Transmission (PMTCT).” There is a scaling up of interventions. The main actors are the Ministry of Health, Bilateral and Multilateral donors and the UN-anchored Global Fund. In rapid succession, Zambia has recently been the beneficiary of two grants-all aimed at scaling-up activity in the area of PMTCT. Zambia was among nine African countries to benefit from a 15 million Canadian dollars grant from the Canadian International Development Agency (CIDA) for scaling up PMTCT. Health Minister Kapembwa Simbao has indicated that the programme’s overall target is to reach over three million people especially pregnant women and HIV-exposed children.

was the largest source of HIV infection in children below the age of 15. He said more than 90% of the children who acquired HIV got it before birth, during birth and through breastfeeding. Of the total burden of HIV in Zambia, 130, 000 of the people living with HIV were children and HIV was more aggressive in children. One third of the babies could die by their first birthday and half of them by their second birthday. The government target is to reduce new infections in babies by 50% by 2010 and to provide care and treatment to 80% of all infected children. The “whirlwind” around PMTCT came in the same month as the National Aids Council (NAC) went on the worldwide web at: www.nac.org.zm. The website was launched in Lusaka April 10, with considerable fanfare and coincided with discussion of the Joint MidTerm Review (JMTR) which measures performance levels of interventions in HIV/ AIDS.

The Canadian grant will go towards implementation of the programme in eleven districts across the country. Again, on the eve of World Malaria day-April 25- the United Nations Children’s Fund (UNICEF) and the Global Fund donated a total 73 vehicles worth US$2 million to the PMTCT programme. UNICEF donated two four-wheel drive vehicles to be used as mobile PMTCT clinics in Kalabo and Milenge districts.

Speaking on the occasion Deputy Minister for Health Mwendoi Akakandelwa said the website was rich in content since it provided up to date information on Zambia’s effort in HIV/AIDS prevention, treatment, care and support. Invariably, there was some discussion of the general HIV/AIDS situation in the country and the JMTR conducted by the NAC in 2008 indicates a marginal reduction in the prevalence rate. From 15.6%, it is down to 14.3%.

There is concern about the threat poised by and incidence of PMTCT. An estimated 80,000 infants are born to HIV positive mothers annually due to the high prevalence of HIV among women in Zambia at 16.7%. But while the PMTCT programme is being expanded to cover the whole country, services are still more readily available along the line of rail. The mobile clinics will be deployed to ensure that more “out of the way” women and children access PMTCT services in rural Zambia. There is consensus that “a comprehensive PMTCT programmeis the single most effective tool to significantly reduce the numbers of new HIV infections among children.” On the ground, the programme suffers from a human resource crisis, inadequate capacity in skills and knowledge, inadequate supervision and monitoring and inadequate infra-structure. The UNICEF donation is targeted specifically to enable the programme reach the “hard to reach.”

According to the 2008 Economic Report, AIDS remained the leading cause of death during the year. But actual deaths due to AIDS declined to 1,285 from 1,417 in 2007. A key achievement in the effort to roll back the pandemic has been the expansion of the prevention and treatment infrastructure. There is for instance a notable increase in the number of voluntary counseling and testing service centres.

Receiving the vehicles, Mr. Simbao observed that mother to child transmission

Currently, over 200, 000 people countrywide are on anti-retroviral therapy (ARVs). There were only 137,000 in 2007.There has also been an expansion of the PMTCT services, in 2008, there were 935 PMTCT centres, up from 678 the previous year. “The success in the expansion of infrastructure has translated into saving lives of people on ARVs therapy. People are now enjoying quality life, living longer and becoming productive again,” Mr. Akakandelwa said. At the current rate, Zambia is thought to have a fighting chance of meeting the Millennium Development Goal number six: combating HIV/AIDS, malaria ad other diseases.

Flu Epidemic: What is in a Name? As Influenza A (H1 N1) or Swine Fever the bug is abroad and has unsettled the world in a short time. The name has changed officially. It is now Influenza A (H1N1) and not Swine Fever as it was known when it began the current visitation. World pork producers were concerned that “swine fever” would kill their business even though the affliction is not transmitted by eating pork. A (H1N1) has unsettled the world in a very short time. Until now few had heard of swine fever let alone of its consequences. But as if from nowhere it emerged in Mexico which remains the epicenter and quickly became an international emergency. More than a 100 people, many of them young adults were reported dead from the virus in Mexico as April drew to a close and the world was on the tenterhooks. Cases were reported successively in the US, Canada, Spain and the bug was suspected to have spread as far afield as New Zealand and South Africa. By the beginning of May it was present in 18 countries on all continents! The Mexican Government urged its people to stay home, avoid crowded places and wear face masks as more cases surfaced. Some of European countries proposed an end or suspension of flights to and from Mexico. But few were initially persuaded of the relevancy of that in the fight against the flu. But as the jitters grew some airlines did just that and Mexico came to be embroiled in a diplomatic spat with the Peoples’ Republic of China. The World Health Organization (WHO) feared that the virus could mutate into a more virulent type capable of touching off a pandemic. Fears of such a flu

pandemic have been latent in health circles for some time now. The WHO thus regularly reviewed its classification of the epidemic but initially always upwards as more and more cases surfaced around the world and the death toll in Mexico rose to over to 200. By the end of April it was classified one wrung away from being a pandemic-a generalized outbreak. The virus that is proving this deadly and sent the world into commotion is described as of the common influenza sub-type and mostly affects pigs. It rarely affects humans but when it does the cycle begins with someone being in contact with an infected pig. It is then spread human to human through coughing and sneezing and has the same symptoms as the common flu; fever, coughing sore throat and body aches. Some patients have suffered diarrhea and vomiting, pneumonia and respiratory failure. What worries the medical people is that it has been kind of selective and has tended to be more lethal among young adults in the age range 25-45 years and that is ominous because that is the age group that the Spanish flu pandemic of 1918 affected. It killed millions around the world. But just as suddenly as it had appeared, the threat seemed to recede and by the beginning of May it begun to leave the world headlines and seemed under control, at least it seemed that it could be controlled. There is for now a kind of a sigh of relief. The question is for how long? An influenza pandemic such as the earlier ones remains a major international health threat and the best stance is for countries to keep their eyes open despite the apparent lull.

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Volume 10 - May 2009

NFCA Takes Over and to Re-Open Luanshya Mine Chinese company wins bid as local MP engages in mysterious campaign China Non-Ferrous Metal Mining Company (NFCA) is the successful bidders for the purchase of the closed Luanshya copper mine. NFCA is set to take the 85% stake which was previously held by the Enya Group who closed the mine. Announcing the NFCA as the successful bidder in Luanshya May 8, 2009, President Rupiah Banda also made the startling revelation that the Patriotic Front (PF) Roan Member of Parliament (MP) Chishimba Kambwili who had gone into over drive over the issue of a new investor for the mine was in fact agitating for ownership to be restored to the same company that had so non-chalantly closed it down in January! The revelation left the opposition MP looking pretty much like a prima-facie candidate for a probe by a tribunal under the Parliamentary and Ministerial Code of Conduct Act. With the latest developments, shareholding in the mine is now anticipated to be as follows: the NFCA with 85% and the state-owned mining investment company, ZCCM-IH retaining the 15%. t was expected that following the announcement a government technical committee and the NFCA would go into negotiations immediately to finalize the sale by May 22, 2009 in readiness for the handover on May 30, 2009. The mine is scheduled to re-open June 1, 2009. The Chinese company is reported to have undertaken a comprehensive duediligence study of the mine in the period before the announcement. At a public rally in Luanshya, President Banda said NFCA had indicated that it would not lay-off workers but would instead increase investment and improve efficiency at the mine as well as re-hire most of the 1,700 workers who had been laid off when it closed down. In addition to the mine, the NFCA will run the mine hospital, the trust and craft schools and the sports facilities in the town. There were two other bidders; Vedanta Resources Plc, owners of the largest mining company in the country, Konkola Copper Mines (KCM) and the other bid was from Luanshya Mineral Resources Ltd. A third bid from a local company, Exco Management Limited was for the non-core assets of the mine. But those appear to be the subject of the negotiations between the technical committee and the NFCA. A decision on them is likely to emerge from those talks. The NFCA offer is understood to be around US$65 million. Its stated aim is to invest US$400 million to recapitalize operations across the mine in order to turn it into “one of the most competitive operations in the region.” It is expected to immediately re-open the old mine and bring it to full pre-closure production and just as immediately resume development of the ore-rich Mulyashi mine to produce 30,000 tonnes of copper cathodes. Mulyashi is a major resource and is perhaps the real attraction. It is expected to have a lifespan of over 20 years, once it comes on stream and it is estimated that it could produce up to 600,000 tonnes of copper per annum by 2010. “I want to assure you that this investor knows and understands the business of mining. This investor is not in Zambia just to make quick money and get out at the first sign of stress in the business. This investor is expected to reopen the mine at the end of May and will develop the (the new) ore body,” declared President Banda. “They will support those local enterprises that are capable of supplying materials, equipment and services, will assist in setting up and implementing local business plans and providing expert advice on long-term trading businesses,” he said. He then revealed that the Roan MP Mr. Kambwili who sought quite hard to be associated with a quick identification of a new investor for the mine ostensibly in order to safeguard the livelihoods of his constituents had in fact been in favour of giving it back to the company that closed it at short notice! .The MP had staged a one man demonstration at State House, was pictured in a local newspaper in a miner’s hardhat and toga and brandishing a clenched fist. He was active in the two demonstrations by miners for a quick identification of a new investor so that life could go back to normal in the town.That clearly could not be achieved by giving back the mine to the same people who shut it down at the first hint of stress in the business and the MP would not have not known that. So, why did he do it, “fronting” for a company that had thrown his constituents out of employment?

There is a reason obviously. Perhaps, the company that closed the mine may have began to discover that it wasn’t such a smart move after all and wanted to come back through the agency of a local leader seen to be championing local interests? There was also the issue of the debt owed by the closed mine which may have been a source of discomfort for the company hence the need for “a quick identification of a new investor “– something that the MP championed. The question is whose interests was he serving, that of his constituents, and in return for what and to whom? The issue appears to lend itself well to a probe by a tribunal. It is not everyday that an elected MP is driven to act questionably towards the interests of the electorate to the extent suggested. In the absence of a tribunal to establish the motivation, the answer(s) will never the known. Yet they exist.

Kwacha Pulls Itself Together A rare 10% appreciation in a week recorded The kwacha recorded a 10% gain against the US Dollar in the first week of Maythe single highest appreciation since the onset of the global economic downturn and the decline in the price of copper. Some financial analysts said that such a gain by the Kwacha in one week had not in fact been recorded in the last three years or so! It has largely been attributed to the approval by the Board of the International Monetary Fund (IMF) of a US$250 million loan for Zambia. Around US$160 million of it is already reported to have been disbursed. Zambia sought the loan for precisely that reason – to shore up the country’s foreign exchange reserves and strengthen the local currency. Since the on-set of the global economic recession, the kwacha has exhibited extreme volatility and traded at historical lows especially at the end of 2008. It started off 2009 largely in tatters and gains remained marginal fueling fears of an upwards spiral in the cost of living and doing business. The IMF loan was agreed to more or less when the application was made and it only remained for the IMF board to give its official approval at its May meeting. It was forthcoming. In the light of the deteriorating levels of copper prices then, it was expected that the loan would among other things act as a cushion to shore up the local currency and stop it from nose-diving further. That is beginning to happen at least going by the jump recorded at the beginning of May. Analysts expect the Kwacha to gain further and stabilize. A basis for the optimism is that copper prices have of late been resurgent. Copper has been selling at around US$4,500 tonne, roughly half its peak price of USD8, 800. This has given hopes of a revival of the Kwacha as the economy is lifted from the depths it had been thrown into following the recession. The improving price has had the effect of dissuading mining companies from closing down shafts. All that had indicated such plans have now officially shelved them although that has now stopped rather large retrenchments. At the time that they considered closure of some mines most mining companies had indicated that a minimum price of US$3,500 per tonne was necessary for the working of many underground mines to remain economical. That barrier has been broken in recent weeks and confidence seems to be returning. It does seem as though most mining companies of themselves are now persuaded of the prudence of remaining open. Mopani Copper Mines (MCM) which had announced plans to suspend operations of the large Mufulira mine have changed their mind and will now remain open. Long term, some analysts now believe that the Kwacha will stabilize and trade around K5, 250 to Dollar in the second quarter of 2009 despite the IMF loan and the recovery in copper prices. But any stabilization is expected to be influenced by the level of domestic demand for foreign currency. The improvement in the copper prices so far recorded is expected to lead to a smaller deficit in the current account than presently projected even by the IMF.

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Volume 10 - May 2009

Trade:“Aid For Trade” Initiative Given The Nod In this case, the devil will more be likely in the implementation. Increasingly nowadays, development thought has come to be riveted on the pivotal role that trade even among the not so well off, can play in development

Investment: Still Some Tourism tops pledges list The global economic downturn has seen to the slowing down of foreign investment into Zambia. The mining industry has been particularly-hard hit. The enthusiasm at the height of the copper price boom to explore, expand and open up new mines has largely dissipated. Labour and Social Security Minister Austin Liato recently revealed that about 10,000 mine and related-jobs have been lost since mid-2008. He said the effects of the global downturn had been less severe in other sectors although slowdowns had been recorded in tourism, agriculture and manufacturing. But even in mining, there are some positive developments even if only from the past. During April for instance, President Rupiah Banda officially commissioned the Lumwana copper/ uranium mine, one of Africa’s largest new mines with a year end production target of 172, 000 tonnes of copper. Further, Mopani Copper Mines (MCM) has announced the reversal of its decision to close down Mufulira mine and place its Kitwe shafts on a care and maintenance basis. Both operations will now remain open and it now seems only a matter of time before the closed Luanshya mine is re-opened. Bids have closed and are being evaluated before the new investors are named. The mine is expected to stir back to life by June. The focus of foreign investment interest is now tourism. Overall, Permanent Secretary for Commerce, Trade and Industry Dr. James Mulungushi disclosed April 25, in Kitwe that government had secured US$250 million in investment pledges under the Zambia Development Agency (ZDA) and that government would strive to ensure that at least US$200 million of that is actually invested. For local investors, K6 billion under the Citizen’s Economic Empowerment Fund has been disbursed. The ZDA subsequently revealed that it had secured a total of US$110.3 million in investment pledges during April. More than US$73 million, 65% of total pledges were in the tourism sector. For manufacturing, pledges totaled US$16 million while agriculture had US$7 million. Among some of the significant foreign investments during April were: •

•

Government April 25, 2009 signed a Memorandum of Understanding (MoU) with Bharat Scans (Pvt) Ltd of India for the establishment of an ultra-modern medical diagnosis centre in Lusaka. Bharat Scans is India’s largest medical diagnosis company Commerce, Trade and Industry Minister Felix Mutati disclosed that government would facilitate the establishment of the centre with an initial capital of US$3 million to cover the provision of the necessary medical experts. It will operate as a joint venture of the Indian company and a consortium of Zambian doctors and will open this year. Government is also considering a multi-million Kwacha bio-fuel project being promoted by the Canadian company-Bedford Bio-Fuels. It involves the cultivation of Jatropha and harvesting it for bio-fuel. Bedford Bio-fuels is looking a 100,000 hectares for a Jathropha plantation. Mr. Mutati said the project would make Zambia a bio-fuel exporter. The President of the Canadian company David Mc Clure who met with Mr. Mutati in Lusaka said if land was provided, his company would immediately go into cultivation and create jobs for thousands of people. He said if they got land in the next six months they would plant faster than anyone else. His company was a consortium of business partners and if given land would bring in other partners to ensure long-term viability.

The project would be capable of producing one million litres of diesel a day. Suitable land and lease arrangements still have to be identified.

and poverty reduction and so it was that at a pledging conference in Lusaka on April 6, 2009 “development partners” pledged over US$1.5 billion for the development of the North-South trade corridor. The North-South Corridor project aims at improving key trade routes across eight African countries; Tanzania, the Democratic Republic of the Congo(DRC), Zambia, Malawi, Botswana, Zimbabwe, Mozambique and South Africa. It is a pilot “aid for trade” initiative spearheaded by three regional bodies: the Common Market for Eastern and Southern Africa (COMESA), the Southern African Development Community (SADC) and the East African Community (ECA). It aims at making the existing trade routes more efficient by speeding up border crossings, improving railways, roads and ports across east and southern Africa. It is targeted to upgrade 8,000 kilometres of road and rehabilitate 600 kilometres of railway.It will seek to remove red tape and facilitate products to be transported more quickly. By so facilitating trade, it is expected that it will not only improve the flow of trade but open up new business opportunities. The Lusaka pledging conference was high-level. No less than four African heads of state were presentthe host Rupiah Banda of Zambia, Yoweri Museveni (Uganda), Kenya’s Mwai Kibaki and Kgalema Motlanthe of South Africa. The World Bank delegation was led by its Vice-President for Africa Obiageli Ezkwesili British Minister for Trade and Development, Gareth Thomas attended while Japan was represented by the Special Advisor to the Minister of Foreign Affairs Keitaro Sato, The European Investment Bank (EIB) and several other development-financing . Institutions were present. The World Bank pledged US$ 1 billion - half for projects along the corridor and the other for projects complementing the corridor. The European Commission(EC) weighed in with US$150 million, the United Kingdom (UK) one hundred million pounds sterling and the African Development Bank(AfDB) pledged US$600 million. Japan undertook to mobilize concessional loans of up to US$4 billion over five years and also implement projects worth US$2 billion through grant aid and technical cooperation. The EIB undertook to be proactive in funding projects in the corridor. The Development Bank of Southern Africa (DBSA) committed US1.2 billion towards energy, transport and information communication technology development in the next three years. The World Bank launched a US$40 million Multi-Donor Trust Fund to help countries improve their competitiveness and reduce trading costs through such measures as improving infrastructure ,transport logistics and customs procedures. This Trade Facilitation Facility (TFF) will support the implementation of practical initiatives in key areas such as border management improvement, institution development, trade procedures, logistics services and gateway infrastructure.The North South corridor is in fact being developed as a model trade facilitation initiative. At the end of the whirlwind, two-day conference African governments and organizations had “pledges” of their own to make. They would show commitment to the project by providing the necessary counterpart funds, harmonizing and implementing supporting policies to attract more funding. They agreed that high level political commitment was crucial to spearhead and monitor implementation of agreed policy reforms to deepen regional integration and they saw the need to develop similar aid for trade programmes in respect of other priority regional transport and transit corridors, notably improving the Central Corridor from the port of Dar-Es-Salaam in Tanzania to Rwanda and Burundi; the Northern Corridor from Mombasa in Kenya to Ugandan Rwanda, Burundi and DRC and the Lamu-Southern Sudan-Ethiopia Corridor. The conference underscored the need to put in place an institutional arrangement to programmme and manage the North-South Corridor pilot model for trade and to devise a mechanism for accessing the committed funds; identify funding gaps; propose a sequence of implementation and seek ways in which the private sector can come on board and complement public sector investment and financing for infra-structure development. The meeting went well and there seemed to have been a genuine meeting of minds. Despite the crippling global economic downturn, financing institutions seemed keen to invest, cooperating partners ready to assist and the countries of the corridor eager and willing to jump-start the project. Often nowadays, it is said that the devil is in the detail. In this case however it promises to be more in the implementation.

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Volume 10 - May 2009

Capital Budget 2009: Better Early Than Late Disbursements are in line with fiscal focus on infra-structure in 2009 Disbursement of funds for the 2009 capital budget has begun. Budget execution especially for capital projects has historically been the Achilles heel. Late disbursement and inadequate execution capacity have resulted in the constant aberration of funds under the capital budget being returned unused and that in a bottomless pit of want! Together with the large component for personal emoluments, poor and uneven execution of the capital budget continue to be among some of the major shortcomings of the national budget. Budget execution has just not been at the required level and it is clear by now that it has to improve for the budget to have any meaning at all. There have of late been discussions around the need for a Budget Act and for some years especially during the tenure of the late Gibson Chigaga as Finance Minister, the budget for the next year was presented in the preceding one to allow enough room for execution. If anything changed, it was hardly discernible. The central issue would appear to revolve around execution capacity. Perhaps things are beginning to change? So far 24.7%, K440.8 billion of the K1.781trillion capital budget has been released to the various ministries and spending agencies. A Ministry of Finance and National Planning statement at the end of April said the disbursements were in line with the 2009 fiscal focus on infrastructure and social services. The Ministry of Works and Supply which has responsibility for most basic infrastructure received one of the largest allocations. At least K165.2 billion for roads has been disbursed from the Fuel Levy. Other Disbursements: •

K6 billion for the construction of new office blocks in Lusaka ad Chongwe; • K6 billion for border facilities at Katima Mulilo Bridge (K2 billion for construction of houses and K4 billion for other border facilities); • K7.6 billion for the Chirundu border infrastructures comprising a freight terminal, Passenger control building, sewerage disposal system, street lighting and construction of a dog kernel for the Drug Enforcement Commission. • K10 billion for construction of houses for the Zambia Army, Zambia National Service and Zambia Airforce. • K2 billion towards the completion of the new office block for the Central Statistical Office (CSO) in Lusaka. • K29.3 billion for construction and procurement of housing units, construction of a Forensic Laboratory and hospital infra-structure for the Ministry of Home Affairs • K2.3 billion for prisons infrastructure • K2.7 billion for the construction of Immigration Department headquarters offices and border control posts • K2 billion for the Rural Electrification Fund (K300 million for electrification of the Nansanga Farm Block in Serene and K1.7 billion for electrification of Kasaba Bay. • K2.9 billion to the Ministry of Local Government and Housing for water supply and sanitation and K1.78 billion for construction of low cost houses. • K18 billion to the Ministry of Education for construction of high schools; • K23.4 billion for construction of basic schools • A total K7 billion for infra-structural development at the three public universities.

Exports Increased Sugar Exports as Factory produces own power The Zambia Sugar Company Plc has indicated that will be in a position this year to export over 130,000 metric tonnes of sugar to the European Union(EU), up from an average 15,000 metric tonnes in the past. This follows the removal of the quota trading system and Zambia’s qualification to export additional sugar to the EU under preferential terms.Zambia Sugar will no longer ordinarily tap power from the national electricity grid as it has commissioned 160-tonnes per hour boiler and power plant that will turn steam into electrical energy to produce 30 Mega watts of electricity. The factory will be self-sufficient in power and will only use the national grid when the factory is not operating. The company has recently successfully completed a K840 million expansion project at its Nakambala Sugar Estate in Mazabuka. Beginning April 1, 2009 factory capacity doubled to 440,000 tonnes from 246 tonnes per year previously. Production this year is expected to be around 420,000 tons, exceeding all previous records. Zambia will be in a position to export up to 135,000 tonnes per annum, produce 130, 000 tonnes for the domestic market and another 120 tonnes for the regional market and the Democratic Republic of the Congo (DRC) in particular. Under the old “Everything But Arms” regime, the EU had operated a quota system for African, Caribbean and Pacific countries. But under new arrangements as a result of Zambia having signed a new Economic Partnership Agreement with the EU that will fall off opening the way for increased exports by Zambia. The company has announced an interest to acquire a stake in Nanga Farms also in Mazabuka in order to secure future cane supplies to the factory. The acquisition is now only subject to the conclusion of “certain conditions and the conclusion of all regulatory matters.”

Global Recession: Some Positive Elements in the Usa “Sense of unremitting freefall has ended” “We’ve a long way to go. There are still serious problems in this economy.” That was Lawrence Summers, a senior economic advisor to US President Barack Obama talking about the American economy at the end of April. He should know. Apart from his present position he served as Treasury Secretary (Finance Minister) under President Bill Clinton and though cautious, his overall assessment of the world’s largest economy-the locomotive of the rest of the world economy was upbeat and noteworthy especially for developing countries like Zambia whose economic fortunes largely depend on a return to growth of the US economy: “The sense of unremitting freefall in the US economy has ended and the picture is no longer completely negative, but rather mixed. Six or eight weeks ago, there were no positive statistics to be found anywhere. The economy felt like it was falling vertically. Today, the picture is much more mixed.” Negative indicators remained but there were also positive ones. One positive indicator is that steep drops in consumer spending and home sales appear to be easing raising hopes that the worst may be over. The group of seven industrial powers also reached the same conclusion. But the US Treasury Secretary Timothy Geithner has warned against confusing an easing in the downturn for recovery. The US he said would “sustain action as long as necessary to see growth resume not just nationally but globally.” The Obama administration is implementing a US$787 billion economic stimulus for the world’s largest economy now in recession for slightly over 16 months. Already US banks which were in serious trouble not too long ago are reported to be well capitalizedone more hopeful sign that recovery could firm up by the end of the year.

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Volume 10 - May 2009

Obituary

Chitalu Sampa [1932-2009]

Chitalu Sampa was no rabble-rouser. Instead he was a quiet and rather retiring man with a staying power that kept him in public life from 1974 until his death in Lusaka, April 4, 2009. He was one of a troika that assumed leadership of the Zambia Congress of Trade Union (ZCTU) after 1974. It comprised Frederick Chiluba who that year took over from Newstead Zimba as President before the position was re-designated Chairman-General since under the one-party state, the view was that the title “President” should be reserved for the head of state. Newstead Zimba stood down as president to become General-Secretary- a full time position. Chitalu Sampa was Assistant Secretary-General and that is how the ZCTU line up remained until 1991. Under their leadership, the ZCTU transformed into a formidable trade union movement Both Chiluba and Zimba were outspoken. Sampa was quiet but remained firmly on side. They called him Stalin-man of steel- in their circles. In his trade union days, he warranted that name every bit. He was steadfast and would neither betray nor publicly contradict his colleagues and it could and did get hot those days. The authorities many times turned up the heat on the ZCTU. He was one of the long-time lieutenants of former President Chiluba who to the

end of his days did not to disparage him despite his difficult circumstances he was to find himself in. He had been born on January 6, 1932 at Mporokoso, Northern Province and worked for what was then the General Post Office(GPO) now Zampost rising to the position of Post Master at a number of Copperbelt Post Offices. His trade union activities started from there when he rose to be President of the Postal Workers Union thence to the ranks of the ZCTU. He was elected Member of Parliament for Wusakile in 1991 and subsequently served as deputy Minister for Labor and Social Security. He was later Home Affairs Minister, Minister of Mines and his last cabinet post was as Defence minister. He was named deputy Defence Minister in 2002 but politely declined the demotion –one of the few ever to do so. He resigned from the Movement for Multi-Party Democracy (MMD) and joined the Party for Unity, Democracy and Development (PUDD). Subsequently he joined the Patriotic Front (PF) and was the party’s National Chairman, a position he retained up to the time of his death at the University Teaching Hospital (UTH) in Lusaka on April14, 2009. He was buried in Lusaka with full state honours. At the core he was a decent man.

M.H.S.R.I.P

It’s Show Season Time (Almost) With the global economic recession Show Societies are walking the tight rope but the shows must go on.

flavour. Going by the level of investment in mining before the global economic downturn that is far from being far-fetched.

The show season is fast approaching and preparations for the three premier showcases-the Copperbelt Show in Kitwe, the Zambia International Trade Fair (ZITF) in Ndola and the Zambia Agricultural and Commercial Show in Lusaka - are gaining momentum.

All things being equal, it has the potential to grow into a major regional show. It is this year scheduled for May 27-31, under the apt theme: “Productivity in Adversity.” In Lusaka, the Show Society, organizers of the Zambia Agricultural and Commercial Show more commonly known as the Lusaka Show - the last in the circuit- called the first meeting with exhibitors interested to participate in the forthcoming 83rd edition, on April 17, 2009. The meeting laid the groundwork for the show due in August.

There is now under a month before the first in the circuit, the Copperbelt Mining, Agriculture and Commercial Show (CMACS) opens and as the date rapidly approaches, there is more than shuffling of feet from that end. But already, the global recession has forced five withdrawals from CMACS- Barloworld Equipment, Boart Long Year, BP, Action Auto and Hybrid Poultry- have indicated they will not take part. There are seventy confirmed bookings and Show Society chairman Bill Osborn has said many exhibitors are already on site. The South African Ministry of Trade and Industry earlier on completed arrangements for more than 15 companies from that country to participate in the CMACS under its aegis for the first time. The15 expressed early interest to participate and the list could lengthen. In recent years, the CMAS has sought to upgrade its status from the rather lowly provincial agricultural show that it started off as to a wider showcase preferably anchored in mining but taking in the agricultural and commercial as well. The poor world economic situation is a negative factor this year for all three shows. But the mining aspect of CMAS will in better times attract a wealth of international exhibitors eager to do business with the mines and that will give it a unique international

The ZITF is also well out of slumber and plans are underway for the country’s premier trade showcase. It is the case of course that during Zambia’s “hard times” of the recent past, these shows were seriously affected and despite their grand sounding names, they increasingly became local shows exhibiting what could be in those circumstances. But they have enjoyed a certain renewal in recent years. Their fortunes and importance have been steadily raising and as the country seeks to boast its nonmining exports and develop the private sector, they are bound to become a major shop window of what is on offer. A number of international traders are already a fixture at these shows. Such countries as Egypt and Iran have regularly been represented. This year isn’t clearly the most auspicious. Still, the shows must go on and live to thrive in better times.

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Volume 10 - May 2009

Esther Phiri’s rather hollow triumph Fourth round knockout leaves many unfazed Zambia’s female boxing “phenomenon,” the Global Boxing Council(GBC) Lightweight world champion Esther Phiri administered a fourth round knockout of her last opponent Viparat Lasuwan of Thailand in a fight staged in the Kenyan capital, Nairobi at the end of April. A fourth round knockout is an impressive result by any measure. But few were impressed. The victory was questioned. Not that it was not achieved but on the basis of the quality of the opponent. That she was more of a “dud” than a real fighter and that the fight may have been no more than a charade promoted by a Kenyan who doesn’t sound like he enjoys a good reputation in boxing circles. There was something to questions about the quality of the opposition and even preparedness for the fight. The fighting Thai arrived late for the fight and Esther was holed up in Nairobi waiting for her touch down. She appears to have hit the ground running and the fight was on. The view is quite strong that from the way she went about things, the Thai was an amateur, inexperienced at the very least and some even said it appeared to be her first real fight. That she appeared illprepared and not at all ready for the “rumble in Nairobi.” Esther dispatched her to the canvass-“never to rise, never to try again at least on that occasion! Questionable as the fight was cast to have been, it brought Esther considerable international attention. Women International Boxing Association (WIBA) super featherweight champion

Melissa Hernandez of Puerto Rico immediately indicated that she was willing to fight the Zambian pugilist in Zambia or Kenya. But her trainer Anthony Mwamba who has spoken up for his boxer through criticisms of the Nairobi fight has said that while that fight could be staged if a willing promoter was found, Esther’s sights are now set more firmly on the World Boxing Council (WBC) Women’s lightweight title and this quest would require that she goes head to head with the reigning champion Jelena Mrdjenovich of Canada to decide the new world champion between the two in that division. Mwamba said his boxer’s victory in Nairobi showed that she had outgrown “small titles” and must now go for the big one. But that possibility was dampened by Esther’s up to now faithful sponsors, the National Milling Corporation (NMC) who have said the capital outlay required to stage such a fight was beyond what they could manage. Criticism of the Nairobi fight seemed to increase after Esther was invited to State House for a luncheon with President Rupiah Banda, a sports enthusiast of record and long standing.The point however seems to be that if Esther’s career is to blossom she will need to square up against credible boxers and she will need to attract the attention and arouse the interest of promoters with deep pockets if she is to advance. She can only achieve that by fighting and winning against world –rated fighters. What she can’t afford is another fight that generates the kind of publicity and suspicions that the Nairobi fight provoked.

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