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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 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
Zambia’s “cooperating partners” as the western aid donors like to describe from and with apparently a loan from the Peoples’ Republic of China.
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that they had withdrawn financial support from Zambia’s National Strategic The mobile hospitals were without much elaboration cast as an irrelevance
Health Plan(2006-2010), the country’s health master plan for the period. 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 statement on their behalf issued by the co-British High Commissioner to a furtive maneuver on the part of. Government was portrayed as having been
Zambia Tom Carver and Joy Hutcheon, Head of Britain’s Department for acting furtively and to have been proceeding with calculated stealth to acquire the
International Development(DFID) in Lusaka said the cooperating partners hospitals come what may presumably behind everybody’s back.
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 Now, it had been caught at it -in the manner of a naughty school boy who must
the Minister of Health Kapembwa Simbao and his team. The meeting appears to be brought to heel. It was payback time for the government as the donors were
have been a scheduled one but was held against a background of persistent but reported livid and that they would have none of it. They had therefore withdrawn
as it turned out overblown media reports that the donors had “withheld’ aid from support to the health sector. The gist of media reports was basically that the
government had “once more”

Zambian Airways
been caught doing the wrong
thing and the country would have
to pay the price. But perhaps quite

Probe takes step forward

inadvently, they also successfully
painted a picture of an axe-
wielding 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
The docket is now with the Director of Public . decisions of a properly mandated
Prosecutions Inspector-General of Police Francis Kabonde has revealed government!
that more “warn and caution” statements have been recorded
The probe into the affairs of the ill-starred local airline, Zambian from two other directors, one of them Nchima Nchito and That while purporting to be
Airways has taken a step forward. The combined investigating an unnamed one from the Copperbelt. Other statements involved in development
team has handed over the preliminary report on the airline’s have been recorded from equally unnamed people based in cooperation they were in practice
failure to remit about US$1, 793,782 in passenger service South Africa who are said to have had connections with the using their financial muscle to
charges to the Director of Public Prosecutions (DPP). airline. impose their will and prevail-
It is now up to the DPP on the basis of the strength of the Statements were initially recorded from two local directors- effectively using their money to
findings to decide whether to proceed with prosecution or Fred Mmembe and Mutembo Nchito. supplant the government. What
not. was consistently odd though is
Kabonde said investigations into the non-remittance that the reports were obviously
The joint investigating team of the Police, Drug Enforcement of passenger service charges to the National Airports written by Zambians but were
Commission(DEC) and the Anti-Corruption Commission(ACC) Corporation (NACL) constituted the first phase of celebratory in tone! What any
are pursuing the criminal charge of theft by agent against the investigations into the affairs of the airline that abruptly Zambian would have to celebrate
airline’s directors, in contravention of Section 272 and 280 of suspended services in January. He did not elaborate on what To pg 2

Pepsi-Cola: Well on the way - Page 2 Scaling-Up: PMTCT - Page 7

Dora Siliya Tribunal She Flouted

Constitution-tribunal - Page 3 Trade:“Aid For Trade” Initiative Given
The Nod - Page 9
APRM: Zambia Makes Ready - Page 4
Orbituary - Chitalu Sampa - Page 11
Education: High Level Education
Symposium Set - Page 6 Esther Phiri’s rather hollow triumph - Page 12

Executive Issues
News 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 there was only mutual affirmation of the two side’s continuing commitment to work
legitimate interest in line with their function is hard to fathom and suggests a together constructively and under acceptable international rules of engagement
serious comprehension deficit on the part of the writers. This general attitude in between governments towards addressing the health situation in the country.
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 But as soon as it became clear that this was an unsuccessful attempt to contrive
as having hit the skids, the portrayal of the donors was perhaps even worse. 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
They came through as manipulative, always with a hidden agenda and relying why it was bad and donors were expected and needed to trash it! There was little
on blackmail to prevail and not above resorting to old-style “development or no attempt to discuss the merits and demerits of the hospitals and perhaps
cooperation” methods of brow beating aid recipients into line! The impression deliberately so, because a mobile hospital(s) whether from China or elsewhere
gave rise to genuine fears that if this were the state of play, despite years of would be a worthy and quite appropriate addition to the arsenal of the MoH.
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 Mobile hospitals do have applicability in Zambia’s situation and if indeed it is
in some Zambian circles as having with money bought or rented the country’s President Banda’s idea, the honourable thing even for his political detractors might
criminal justice system! Moreover, the lack of real details on what was going on be to accept that in this case at least, he is exploring an idea whose utility people
led to apprehension that the matter could be rooted in the now quite frequent will readily understand.It is their position and attitude that need to be explained
jitters that many “old world countries” respond with to China’s resurgence and and are unlikely to make sense readily.
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. 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.
Hence the statement from the donors set out to clear the air surrounding their What it really was about is a puzzle but perhaps it was the reflection of the chaff
responses and attitudes to this matter that the space of a few days went from that now goes for opposition politics in Zambia and the disgraceful lows it seems
being unknown to one hanging fire. The statement said that the donors had not unable to climb out of. April was not a particularly successful month for vicious
withheld aid and had not issued any ultimatums. But that in the context of the rumour. The statement of the donors closely followed a media advert from the
national health strategic plan previously agreed to and running, they sought former Director -General of the now dissolved Zambia National Tender Board
clarification on the effect, as mobile hospitals were not part of that plan and that David Kapitolo thanking the president for affording him the opportunity to serve in
they were not wielding an axe over anyone’s head contrary. that capacity and pleading that the appointment of a new man in his place to run
the succeeding agency should not be politicized.
Given the meetings, consultations and commitments by both sides by which such
plans come about; the clarification that was sought seemed perfectly legitimate Again this followed media reports that Kapitolo had been sacked because
and normal. The problem was the way information was coming through. It clear he testified in the tribunal that probed the former Minister of Transport and
from the fact there was actually concern about the mobile hospitals that this Communications, Dora Siliya. Though this was low level speculation in the
information originated from the donors themselves at least in some form. Why this circumstances, it was presented as a fact and that what had happened to Kapitolo
should been so when they have interlocutors of long standing at various levels of was the fate that awaited government employees who testified in that tribunal!
government would seem consistent with some form of skullduggery.
Perhaps there is too much of an attempt to recruit people to a position, point of
But their statement dispelled the notion of arm-twisting behind the scenes view or persuasion that they do not subscribe to and have no reason to do so.
and reaffirmed their commitment to work with the government in the spirit Well. So far, it would seem that many people still firmly want to think for themselves
of partnership. The statement said the issue of the mobile hospitals would be and draw their own conclusions according to their own deductions. With the wide
discussed and assessed jointly with the Ministry of Health (MoH). In the end, licence that is being applied, there promises to be more canards and denials.

Zambian Airways Pepsi-Cola:

Probe takes step forward 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 Some specifics of the new Pepsi-Cola bottling plant planned for Lusaka have
briefing followed remarks earlier in the month by the acting director of the come to light. The plant will be constructed and owned by Varun Beverages
Anti-corruption Commission (ACC) Rosewin Wandi that investigations were Zambia Limited, a company wholly owned by Arctic International of Mauritius, a
proceeding apace and the police who were the lead agency in the probe would subsidiary of the RJ Corp, of India. The proposed site is a 20 acre plot in Chinika
give details as deemed appropriate. in the Heavy Industrial area of Lusaka.

The developments came as the other locally-owned airline Zambezi Airlines It will consist of an office block, storage sheds, packaging and production halls,
seemed to take to the skies even more. a borehole and water treatment facilities. The production processes will include
delivery of raw materials, .water treatment, syrup preparation, blending of the
It announced the appointment of Cornwell Muleya as the airline’s Chief concentrate with syrup, carbonation, bottling and dispatching of the products to
Executive Officer. He was reported to have previously been Vice-President the market. The period for public comments on the Environmental Assessment
(Finance) for the Mauritian national airline. Report for the Plant drawn up by the Environmental Council of Zambia (ECZ)
was scheduled to close on April24, 2009.
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 With the formalities now out of the way, construction should proceed shortly. The
two so far unnamed airlines. He is a UK-trained chemical engineer and plant is one of two significant Indian investments in Zambia. The other is the
a Fellow of the Chartered Association of Certified Accounts (FCCA). proposed medical diagnosis centre in Lusaka by Bharat Scans (Pvt) Ltd.

Executive Issues
Executive Issues
Volume 10 - May 2009 News

Parliamentary Committees: (Some)

Flogging Of Dead Horses?
Some at the receiving end were not in position when irregularities suspended, dismissed, retired or had died continued to draw full salaries for up
occurred to more than three years!

The system of public hearings by committees of the National Assembly is shaping The committee observed that it was shame that a Ministry that had the responsibility
up and there is a lot of “sound and fury.” No less than two Permanent Secretaries for law enforcement could have such a financial record. The management of the
and one management team have in the recent past been sent away from hearings NCZ was sent packing with the committee chairman completely unimpressed by
for coming inadequately prepared. The National Assembly is in recess and most the NCZ’s complaints about poor funding and not being offered the contract to
of its committees are holding public hearings. 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. He insisted that management should be serious and submit a comprehensive
First, standards for submissions are being progressively set and there is also written report on how it would run the company to full capacity if funded. Again, the
something akin to flogging a dead horse by grilling officers who were not in their Permanent Secretary for Agriculture and Co-operatives Bernard Namachila. was
positions when what is being queried occurred. 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
Local Government and Housing Permanent Secretary Coillard Chibbonta was were not retiring it. The amounts involved were not specified.
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 Milupi observed that some civil servants seemed to have turned imprest into a
the Rural Electrification Programme. Committee chairman Gary Nkombo (UPND- source of cheap loans. It does appear as though the committees are determined
Mazabuka) told the PS to go back and prepare adequately and re-submit on the to make their weight felt. They need to because there are suggestions that
issue because of apparent contradictions in his submission. their functions are not well understood going by the number of “unacceptable”
submissions that must be re-submitted and apparently even some committees
Again, the management of Nitrogen Chemicals of Zambia (NCZ) was similarly would appear not to be too clear about their remit.
ordered to go back and re-submit later by the Lands and Agriculture Committee
chaired by Request Muntanga (UPND-Kalomo). Should civil servants below the rank of Permanent Secretary be accountable to a
Committee of Parliament, isn’t that stooping low?
Newly appointed Home Affairs Permanent Secretary Ndiyoyi Mutiti had a real
hard time explaining the seeming lack financial controls at the Ministry to the Civil servants must remain accountable to their superiors as per chain of command
Public Accounts Committee (PAC). The committee said that the 2007 Auditor- in the civil service and not to some politician whose motive may be to improve
General’s report had highlighted glaring irregularities at the Ministry of Home their political profile or is that part of it as well? The PAC for instance needs to
Affairs and its financial report for that year was the worst in three years. 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
Committee chairman Charles Milupi (Independent-Luena) said some of the hearing.
irregularities were so serious that the Attorney-General and the Public Procurement
Authority (old Tender Board) had expressed concern about them. There was poor Some of the issues they raise need answers but cannot adequately be dealt
record keeping at the Ministry, a trend associated with fiddling and there was with because the officers under interrogation simply do not know the details as
delayed banking of government revenue of between five to 285 days! 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
Thus K6.9 billion in revenue collected by the Immigration Department in 2007 the committees got?
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 Well, it is a developing system. It has at least started and not badly, on the whole.
it needed to deal with them in accordance with law. Some officers who had been 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 of them would not have constituted contravention of the code even had they been
they have not been charged with and whose particulars they have not been proven.
made aware of persist.
She was instead found to have violated the constitution by not going along with
Minister of Communications and Transport Dora Siliya April 21, 2009 resigned the legal advice of the Attorney-General and that was not what was at issue and
her cabinet position following a finding by the Parliamentary and Ministerial Code was not the substance of allegations against her.Siliya subsequently indicated she
of Conduct tribunal that she flouted the constitution by ignoring the advice of the would seek judicial review of the tribunal’s finding because it wasn’t the substance
Attorney-General on a Memorandum of Understanding (MOU) signed between the of the proceedings and she had not been given an opportunity to be heard on that
Government and RP Capital of the Cayman Islands for the valuation of the assets point when the rules of natural justice demand that she be heard.
of the virtually insolvent Zambia Telecommunications Company (ZAMTEL).
It becomes a question therefore whether justice was actually done and was seen
The tribunal had been constituted to probe her conduct on three specific “charges” to have been done in the circumstances. It is an issue that is bound to exercise the
following a string of media allegations against her. 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
On all the three charges formally brought against her, the tribunal found her not they have not been furnished. It doesn’t seem that the matter is at an
to have contravened the Parliamentary and Ministerial Conduct of Code. Some end at all.

Executive Issues
Executive Issues
News Volume 10 - May 2009

APRM: Zambia Makes Ready

It remains to be seen how she’ll fair in both implementation and result 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
The National Governing Council (NGC) of the African Peer Review Mechanism and a supervisory panel of seven eminent persons.
(APRM) in Zambia indicated during April that it had completed work on a
comprehensive multi-media communication strategy for a nation-wide sensitization A country joins by depositing the signed copy of the APRM Memorandum
programme on the process. of Understanding adopted at Abuja, Nigeria on March 9, 2003 by the NEPAD
Heads of State and Government Implementation Committee. As at July 2008,
The sensitization programme is scheduled to run until December 2009. Giving the 29 countries, more than half the 53 countries of Africa had signed up for review.
first update on the APRM process in Zambia, chairperson Tamala Kambikambi Zambia among them.
disclosed that the NGC had selected three technical research institutions to begin
the inquiry process countrywide in the four APRM thematic areas: Democracy Late last year, Zambia appointed a 47-member NGC for the process. It initially was
and Good Political Governance, Economic Governance and Management, headed by the current Special Assistant to the President (Political), Akashambatwa
Socio-Economic Development and Corporate Governance. Mbikusita-Lewanika. He resigned subsequent to his appointment to State House
and Ms. Kambikambi from the Women’s Lobby Group (WLG) replaced him.
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 Preparations for the process are gathering pace. The Panel Leader Ms Machel
been hired for the Democracy and Good Political Governance segment. At the visited in March and held discussions with the government and the NGC. It is
time of the update, the services of a consultant for the Economic Governance and now at implementation stage. It remains to be seen how Zambia will fair both in
Management inquiry were still being sought. implementation and the result.

Inflation Dwarfs Statutory

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

Minimum Wage
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 Inflation up 1.2% in April
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 A surge in inflation in April raised questions of whether the Statutory Minimum
declaration of the 37th Summit meeting of the Organization of African Unity(OAU) Wage at K260, 000 per month was still relevant. The annual inflation rate in April
held in Lusaka’s Mulungushi Hall in July 2001that gave birth to NEPAD. 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
That summit adopted a document setting out a new vision for the revival and mealie-meal for instance was perhaps at its highest during the month.
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 The Central Statistical Office (CSO) also reported rises in the price of cereals and
OAU had transformed into the African Union (AU). More to the point, they added a cereal products, meat, kapenta, fresh vegetables, dried beans, oils and fats, fresh
declaration on “Democracy, Political, Economic and Corporate Governance.” 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
In that document the African leaders undertook to work with “renewed wage, deepening poverty and it is questionable whether in its present form, it can
determination” to enforce, among other things, the rule of law; the equality of all ever be an effective guide to the minimum required to at least make ends meet.
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, It is set periodically and remains in force regardless of the usually rapid and far-
including protection for the independence of the judiciary and the effectiveness reaching changes in economic fundamentals. Further, it doesn’t seem to be the
of parliament. 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.
That declaration committed participating countries to establish the APRM, to
promote adherence to, and fulfillment of its commitments. It is designed as a The General Secretary of the Zambia United Local Authorities Workers
systematic examination and assessment of the performance of a country by Union(ZULAWU), Noah Kalangu who recently toured the North-Western
peers, designated institutions or by a combination of countries and the designated Province disclosed that some permanent council employees there were still paid
institutions. 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.
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 He decried the gulf and called for unity among trade unions to fight for a review
process is based on a self-assessment questionnaire of the APRM secretariat of the statutory minimum. But it may not be enough to merely fight for a new
divided in the four areas in which the NGC has initiated work. It assesses states’ statutory minimum that will be just as rapidly overtaken. Instead it may need to
compliance with a wide range of African and International human rights treaties be fixed by a mechanism driven by core factors on the ground like inflation and
and standards. the cost of food and services.

The questionnaire was adopted by representatives of the heads of state and It also does need to be impressed on “investors” that the statutory minimum is just
governments of all APRM countries in Kigali, Rwanda in February 2004. Its a guide. There are increasing reports of employers who pay just it on the basis
approach is a non-adversarial, interactive dialogue-based inquiry into the four that “that’s what your government says.” Perhaps, it is the perpetual lag in issues
areas and relies heavily on mutual trust among countries involved, as well as their like this that lead to the serious deterioration in industrial relations that has
shared confidence in the process. 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).
There are four types of reviews under APRM: Base Review which is
carried out within 18 months of a country becoming a member, Periodic Without constant review of the fundamentals of the area, they could be a negative
Review carried out every two to four years, Requested Review, any factor in the drive to attract more it.

Executive Issues
Volume 10 - May 2009 News

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
KOD: Cattle Re-stocking
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 A new start in livestock management has of necessity to be based on
in Zambia-the headquarters in exile of the African National Congress (ANC). They disease-management.
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: Government now seems firmly persuaded that the rearing of livestock has the
Duma Nokwe a veteran freedom fighter of the Mandela generation who was the ANC’s potential to expand the agricultural export base. A Ministry of Livestock, Fisheries
General Secretary, Johnstone Makatini who was in charge of international relations and Veterinary Services headed by a cabinet minister is emerging from within
and was succeeded in that role on his death by the former President of South Africa, the current Ministry of Agriculture and Cooperatives. Still, Zambia is far from
Thabo Mbeki, Cassius Maake, the Umukhonto We Sizwe (MK) man who was gunned realizing its livestock potential. There’s is quite a backlog of issues. In fact only
down in Swaziland by a death squad that awaited his return to Zambia via Swaziland that segment of livestock in the hands of commercial farmers has been problem-
from Mozambique where he had traveled in connection with the upheavals wrought by free. Whether it has been profitable given the rather limited local demand and,
the Nkomati Agreement. 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
There are others as well. The one who was popularly known as Chris Hani for instance free reign. Control measures have been tentative, episodic and largely ineffective.
whose assassination in South Africa pushed the country to the brink of civil war had a Stock movement bans have had to be regularly imposed to stop the spread of
strong Zambian background and was over long periods resident in Lusaka. Those who diseases and the diseases have been the same old ones, few new ones.
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 These near endemic diseases have all but decimated the traditional herd. The
African ritual. Among their number was an authoritative traditional doctor or Sangoma. disease known as “corridor” has to be considered endemic in the Southern
They were based at the Lusaka Show grounds where they performed traditional Province. While other cattle rearing areas have had intermittent outbreak of
cleansing rituals and concluded their itinerary by an early morning visit to Leopards such diseases as Foot and Mouth and Bovine Pleural Pneumonia (CBPP) in the
Hill Cemetery where some of the freedom fighters are buried. They picked up a small Western and North Western Provinces. So heavy has the toll been over the years
pebble from there which they went back with to deposit at Freedom Park to signify the that government has had, in the past few years to begin a re-stocking exercise.
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 But even that is threatened by the same diseases which remain latent. Southern
as they flew back to Johannesburg. It was mission accomplished as they departed from Province Permanent Secretary Darius Hakayobe recently called for a halt and
Lusaka International Airport. 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
The Pretoria-based Freedom Park Trust has previously held similar séances in disease. He suggested that the programme be redesigned to concentrate on
Botswana, Lesotho, Tanzania, Swaziland and the United States. In Zambia, there were eradicating the disease first through construction of dip tanks and associated
howls of outrage from some Christians especially of the “born-again” variety. They infra-structure. He indicated that this course of action had already been agreed
were largely upstaged and were in uproar. As far as they could see this was a case with the Ministry of Agriculture but needed to be effected. It is incidentally in line
of “demon worship” and it blended in well with one of Zambian Christendom’s latest with the recommendations of the recent “indaba” which said there should be
terrors-Satanism- much talked about but so far never conclusively proved. They blamed compulsory dipping.
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 The situation in the Southern Province in fact raises serious questions about the
blemish on Zambia’s “Christian nation” status as far as they could see. Some couched whole exercise if it actually introduces new cattle to disease-riddled areas. It should
their disapproval in sermons and biblical quotations. They warned of the certain be better targeted than that to yield any results at all. It is clear that re-stocking
consignment to hell with its brimstone and fire of those who worship spirits “because the will only have the intended results when the diseases are cleared. Emphasis at
bible expressly forbids it.” But most of this condemnation was largely a case of locking the this stage has to be on putting the disease-management infra-structure in the
stable after the horse had bolted. It came after the departure of the “Africanists” and that form of dip-tanks and regular dipping in place before re-stocking. Something
wasn’t the majority view, in any case. Opinion was divided even among Christians with along these lines now appears inevitable. Apart from the Indaba recommendation
some refusing to condemn on the grounds that the Zambian Constitution as at now does for compulsory dipping, the 2009 Budget has an allocation of K70.7 billion for
not prohibit the profession of other religions but in fact says they should be tolerated. As livestock development, up from K29 billion in 2008. One of the objectives this year
far as they were concerned this was just one such religion and the only way to stop it was is the creation of at least one livestock disease free zone in the country.
for Christians to convert the “devil worshippers.”
There is at least some shuffling of feet around the issue of animal health and
It is hardly surprising however that the South Africans left satisfied. They and the particularly cattle. President Rupiah Banda has recently disclosed that Zambia
rituals that they performed were very much at home in Zambia. There were only minor and Brazil are in discussion over cooperating in the manufacture of livestock
differences otherwise most of what they did , including the basic idea itself were no vaccines, seen as critical to the development of livestock. The Livestock Minister
strangers to Zambia being very close to what the Zambians would do and many still Bradford Machila has in his recent tours been giving an out an outline of policy.
do, when they observe their own traditions. Zambian traditional doctors who readily He recently criticized the frequent blanket stock movement bans, so far the main
understood the mission were on hand to facilitate. The Christians felt hard done by and weapon in the arsenal for fighting livestock diseases.
probably justifiably so since these events tended to confirm Christianity for the foreign-
to- Africa religion that it is. Clearly, the Africans had their own religion(s) long before their He said this was costly to farmers who could not then transport livestock and
contact with the Europeans. Like Christianity it was also based on faith and was meant livestock products to the market. Moreover the bans have been imposed mostly
to commune with God. Early missionaries condemned every trace of it to suppress it and without the veterinary officers having the capacity to enforce them properly! Even
make room for their credo. 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.
If the Africans are God’s creation, there is no reason why their religion and attempts This is a case where old methods won’t do. The critical question is
to commune with God should be “demon worship.” It can only be worshipping like the how soon the new can be in place to make a real beginning in modern
Christians do and the contingent from South Africa may have done nothing more than livestock management which is what the current ambitions being
remind everybody who they really are. expressed currently require.
Executive Issues
News 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 it will not be surprising if the next thing won’t be that they will not open for the
doubtful whether performance can improve without the requisite funding second unless they are paid!
and an improvement in industrial relations.
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
The Ministry of Education (MoE) is getting ready for an interrogation. Yes, of a order to break the impasse and that appears to be in process at least. The official
suspect. But only in the form of the current Zambian educational curriculum. reason advanced for the delayed payments is somewhat astonishing; that there
The MoE has called for papers for a high level National Curriculum Symposium was a misunderstanding over the definition of a rural school and that some urban
scheduled for June 1-3, 2009 in Lusaka’s Mulungushi Hall. The symposium is schools had been classified rural! Hence the Secretary to the Cabinet and the
touted as “a critical examination of the curriculum in education at all levels and its Ministry of Education had to revisit the matter.
relevance to the Vision 2030 for Zambia.”
Disruptions issuing from the like have now become more or less the usual cycle.
By all accounts, it is a pivotal undertaking and is preliminary to a process that The MoE and its teachers seem to be locked in a perpetual low intensity combat
could have far-reaching effects: 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
“The agreed framework arising from the symposium will be the basis upon results in public schools. But even the integrity of the results themselves is
which a national curriculum reform at all levels of education will be undertaken.” questionable. The management of examinations results would appear to be
According to the MoE, the symposium will bring together all key stakeholders in quite chaotic and especially so at Grade Nine but even at Grade 12. Many times
the education system to critically look at the current curriculum and its relevance candidates are credited with the wrong set of results and whole classes are
to the Vision 2030. sometimes indicated as having been absent even though pupils sat the exam!

Vision 2030 is about transforming Zambia into a “prosperous middle income The kind of problems that habitually arise from marking and compiling results
country” by that year and by then education and training should be “innovative, do not inspire confidence in the system. In this chaos, the possibility that some
productive, life-long and accessible to all,” that is at least what the Vision 2030 candidates go away with the wrong results is real! There is therefore reason
document demands. The issues before the symposium will be to “critically to look forward to the forthcoming interrogation of the educational system as
examine” the nature of the current curriculum, “critically examine” its relevance, presently operating. But it will be worthwhile and useful only if it can produce
create a match between schooling and education and “show linkages to the Vision the required changes and does not end up as one more talk shop on the road
2030.” It is expected that the symposium will help define the type of graduates to the certain ruination that awaits any country that plays fast and loose with the
the country expects and create a conducive environment for the acquisition of educational system.
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 Health: Malaria Retreats
in the educational system; learners, teachers, teacher educators and lecturers;
and support staff-their training, qualification, appointment, service, retention and
…But it was still the second leading cause of mortality in 2008 and the first
Attention will be given to all educational programmes; the institutions, teaching in terms of morbidity.
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 Malaria-the disease transmitted by the female anopheles mosquito- has not been
or otherwise of them by May 8, 2009. Full papers for presentation will need conquered but Zambia has begun to roll it back. Malaria deaths have declined by
to be submitted by May 22, 2009.The symposium comes at a time when some 66%. The World Health Organization (WHO) has traced the decline to measures
concerns have been expressed about the direction of education following the implemented in 2006. The decline in deaths was especially steep after 3.6 million
decision to abolish the cut-off point system at Grade Nine and allow all pupils long-lasting insecticidal bed nets were distributed between 2006 and 2008.
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 During that period malaria deaths declined by 47% and nation-wide surveys
teachers and classrooms resulting in crowding leading to an impossible teacher showed parasite prevalence to have declined by 53%, from 21.8%to 10.2%. The
to pupil ratio. The Catholic Church some of whose schools registered the best percentage of children with severe anemia declined by 68%, from 13.3% to 4.3%.
results at Grade 12 in 2008 was less than impressed by that move. But that is just The WHO said this decline in mortality means that Zambia had achieved the
one. There are several issues in education. 2010 Roll Back Malaria target of a more than 50% reduction in Malaria mortality
compared to the year 2000.
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 Accelerated malaria control activities started in Zambia in 2003 when approximately
and continuation of the policy of “benign neglect” of the past few years should 500,000 insecticide-treated bed nets were distributed and Artemisinin-based
bring them to their knees soon. Further, going by the annual examination results, Combination Therapy (ACT) started in seven pilot districts. A grant from the
the public school system is not performing optimally. In 2008 for instance, no Global Fund of the United Nations (UN) financed the effort. Disclosure of the
public school achieved a 100% pass rate in the school leaving examination! There improving record in the fight against Malaria came during observances of World
are some pointers to why this may be so. Even as the MoE announced the Malaria Day –April 25.
symposium for instance, it was already embroiled in one more of its regular stand-
offs with teachers. Pockets of them went on wildcat strikes as the first school The Ministry of Health used the occasion to launch a new malaria drug for
term drew to a close in April. There were in fact sporadic reports of teachers children known as Coartem Dispersible or Coartem D in short. It is in the form of a
going on strike earlier than that. The source of aggravation this time flavoured sweet tablet which dissolves easily in water. The drug was developed by
was the non-payment of rural hardship allowances to those serving in Medicines for Malaria Ventures and the Swiss pharmaceutical company, Novartis.
rural areas and of housing allowance to teachers across the country. Minister of Health Kapembwa Simbao revealed that malaria testing tools which
In protest, some went on holiday early. Given the general run of things, enable quick diagnosis were available in the health system.

Executive Issues
Volume 10 - May 2009 News

Scaling-Up: PMTCT
Combating Mother- To- Child Transmission seems to be the “new frontier” was the largest source of HIV infection in children below the age of 15. He said
in the anti- HIV/AIDS programme. 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.
There is increasing focus on the component of the HIV/AIDS programme known One third of the babies could die by their first birthday and half of them by their
as “Prevention of Mother to Child Transmission (PMTCT).” There is a scaling up of second birthday.
interventions. The main actors are the Ministry of Health, Bilateral and Multilateral
donors and the UN-anchored Global Fund. In rapid succession, Zambia has The government target is to reduce new infections in babies by 50% by 2010 and
recently been the beneficiary of two grants-all aimed at scaling-up activity in the to provide care and treatment to 80% of all infected children. The “whirlwind”
area of PMTCT. Zambia was among nine African countries to benefit from a 15 around PMTCT came in the same month as the National Aids Council (NAC) went
million Canadian dollars grant from the Canadian International Development on the worldwide web at: The website was launched in Lusaka
Agency (CIDA) for scaling up PMTCT. Health Minister Kapembwa Simbao has April 10, with considerable fanfare and coincided with discussion of the Joint Mid-
indicated that the programme’s overall target is to reach over three million people Term Review (JMTR) which measures performance levels of interventions in HIV/
especially pregnant women and HIV-exposed children. AIDS.

The Canadian grant will go towards implementation of the programme in eleven Speaking on the occasion Deputy Minister for Health Mwendoi Akakandelwa
districts across the country. Again, on the eve of World Malaria day-April 25- the said the website was rich in content since it provided up to date information on
United Nations Children’s Fund (UNICEF) and the Global Fund donated a Zambia’s effort in HIV/AIDS prevention, treatment, care and support. Invariably,
total 73 vehicles worth US$2 million to the PMTCT programme. UNICEF donated there was some discussion of the general HIV/AIDS situation in the country and
two four-wheel drive vehicles to be used as mobile PMTCT clinics in Kalabo and the JMTR conducted by the NAC in 2008 indicates a marginal reduction in the
Milenge districts. prevalence rate. From 15.6%, it is down to 14.3%.

There is concern about the threat poised by and incidence of PMTCT. An According to the 2008 Economic Report, AIDS remained the leading cause of death
estimated 80,000 infants are born to HIV positive mothers annually due to the during the year. But actual deaths due to AIDS declined to 1,285 from 1,417 in 2007.
high prevalence of HIV among women in Zambia at 16.7%. But while the PMTCT A key achievement in the effort to roll back the pandemic has been the expansion of
programme is being expanded to cover the whole country, services are still more the prevention and treatment infrastructure. There is for instance a notable increase
readily available along the line of rail. The mobile clinics will be deployed to ensure in the number of voluntary counseling and testing service centres.
that more “out of the way” women and children access PMTCT services in rural
Zambia. There is consensus that “a comprehensive PMTCT programmeis the Currently, over 200, 000 people countrywide are on anti-retroviral therapy (ARVs).
single most effective tool to significantly reduce the numbers of new HIV infections There were only 137,000 in 2007.There has also been an expansion of the PMTCT
among children.” On the ground, the programme suffers from a human resource services, in 2008, there were 935 PMTCT centres, up from 678 the previous year.
crisis, inadequate capacity in skills and knowledge, inadequate supervision and “The success in the expansion of infrastructure has translated into saving lives of
monitoring and inadequate infra-structure. The UNICEF donation is targeted people on ARVs therapy. People are now enjoying quality life, living longer and
specifically to enable the programme reach the “hard to reach.” becoming productive again,” Mr. Akakandelwa said. At the current rate, Zambia is
thought to have a fighting chance of meeting the Millennium Development Goal
Receiving the vehicles, Mr. Simbao observed that mother to child transmission 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 pandemic have been latent in health circles for some time now. The WHO thus
the world in a short time. 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
The name has changed officially. It is now Influenza A (H1N1) and not Swine Fever to over to 200. By the end of April it was classified one wrung away from being a
as it was known when it began the current visitation. World pork producers were pandemic-a generalized outbreak.
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 The virus that is proving this deadly and sent the world into commotion is described
short time. Until now few had heard of swine fever let alone of its consequences. as of the common influenza sub-type and mostly affects pigs. It rarely affects
But as if from nowhere it emerged in Mexico which remains the epicenter and humans but when it does the cycle begins with someone being in contact with an
quickly became an international emergency. More than a 100 people, many of infected pig. It is then spread human to human through coughing and sneezing
them young adults were reported dead from the virus in Mexico as April drew to a and has the same symptoms as the common flu; fever, coughing sore throat
close and the world was on the tenterhooks. and body aches. Some patients have suffered diarrhea and vomiting, pneumonia
and respiratory failure.
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 What worries the medical people is that it has been kind of selective and has
beginning of May it was present in 18 countries on all continents! The Mexican tended to be more lethal among young adults in the age range 25-45 years and
Government urged its people to stay home, avoid crowded places and wear face that is ominous because that is the age group that the Spanish flu pandemic of
masks as more cases surfaced. Some of European countries proposed an end 1918 affected. It killed millions around the world. But just as suddenly as it had
or suspension of flights to and from Mexico. But few were initially persuaded of appeared, the threat seemed to recede and by the beginning of May it begun to
the relevancy of that in the fight against the flu. But as the jitters grew some leave the world headlines and seemed under control, at least it seemed that it
airlines did just that and Mexico came to be embroiled in a diplomatic spat with could be controlled.
the Peoples’ Republic of China.
There is for now a kind of a sigh of relief. The question is for how long? An influenza
The World Health Organization (WHO) feared that the virus could mutate into pandemic such as the earlier ones remains a major international health threat and
a more virulent type capable of touching off a pandemic. Fears of such a flu the best stance is for countries to keep their eyes open despite the apparent lull.

Executive Issues
News Volume 10 - May 2009

NFCA Takes Over and to

Re-Open Luanshya Mine
Chinese company wins bid as local MP engages in mysterious campaign 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
China Non-Ferrous Metal Mining Company (NFCA) is the successful bidders to come back through the agency of a local leader seen to be championing local
for the purchase of the closed Luanshya copper mine. NFCA is set to take interests? There was also the issue of the debt owed by the closed mine which
the 85% stake which was previously held by the Enya Group who closed the may have been a source of discomfort for the company hence the need for “a
mine. Announcing the NFCA as the successful bidder in Luanshya May 8, 2009, quick identification of a new investor “– something that the MP championed.
President Rupiah Banda also made the startling revelation that the Patriotic Front
(PF) Roan Member of Parliament (MP) Chishimba Kambwili who had gone into The question is whose interests was he serving, that of his constituents, and in
over drive over the issue of a new investor for the mine was in fact agitating for return for what and to whom? The issue appears to lend itself well to a probe by a
ownership to be restored to the same company that had so non-chalantly tribunal. It is not everyday that an elected MP is driven to act questionably towards
closed it down in January! 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.
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
Kwacha Pulls Itself Together
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 A rare 10% appreciation in a week recorded
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 due- The kwacha recorded a 10% gain against the US Dollar in the first week of May-
diligence study of the mine in the period before the announcement. At a public the single highest appreciation since the onset of the global economic downturn
rally in Luanshya, President Banda said NFCA had indicated that it would not and the decline in the price of copper. Some financial analysts said that such a
lay-off workers but would instead increase investment and improve efficiency gain by the Kwacha in one week had not in fact been recorded in the last three
at the mine as well as re-hire most of the 1,700 workers who had been laid off years or so! It has largely been attributed to the approval by the Board of the
when it closed down. In addition to the mine, the NFCA will run the mine hospital, International Monetary Fund (IMF) of a US$250 million loan for Zambia.
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 Around US$160 million of it is already reported to have been disbursed. Zambia
the country, Konkola Copper Mines (KCM) and the other bid was from Luanshya sought the loan for precisely that reason – to shore up the country’s foreign
Mineral Resources Ltd. exchange reserves and strengthen the local currency. Since the on-set of the
global economic recession, the kwacha has exhibited extreme volatility and
A third bid from a local company, Exco Management Limited was for the non-core traded at historical lows especially at the end of 2008. It started off 2009 largely
assets of the mine. But those appear to be the subject of the negotiations between in tatters and gains remained marginal fueling fears of an upwards spiral in the
the technical committee and the NFCA. A decision on them is likely to emerge cost of living and doing business. The IMF loan was agreed to more or less when
from those talks. The NFCA offer is understood to be around US$65 million. Its the application was made and it only remained for the IMF board to give its official
stated aim is to invest US$400 million to recapitalize operations across the mine approval at its May meeting. It was forthcoming. In the light of the deteriorating
in order to turn it into “one of the most competitive operations in the region.” It levels of copper prices then, it was expected that the loan would among other
is expected to immediately re-open the old mine and bring it to full pre-closure things act as a cushion to shore up the local currency and stop it from nose-diving
production and just as immediately resume development of the ore-rich Mulyashi further. That is beginning to happen at least going by the jump recorded at the
mine to produce 30,000 tonnes of copper cathodes. Mulyashi is a major resource beginning of May.
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 Analysts expect the Kwacha to gain further and stabilize. A basis for the optimism
600,000 tonnes of copper per annum by 2010. “I want to assure you that this is that copper prices have of late been resurgent. Copper has been selling at
investor knows and understands the business of mining. This investor is not in around US$4,500 tonne, roughly half its peak price of USD8, 800. This has given
Zambia just to make quick money and get out at the first sign of stress in the hopes of a revival of the Kwacha as the economy is lifted from the depths it had
business. This investor is expected to reopen the mine at the end of May and will been thrown into following the recession. The improving price has had the effect
develop the (the new) ore body,” declared President Banda. 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
“They will support those local enterprises that are capable of supplying materials, large retrenchments. At the time that they considered closure of some mines most
equipment and services, will assist in setting up and implementing local business mining companies had indicated that a minimum price of US$3,500 per tonne was
plans and providing expert advice on long-term trading businesses,” he said. necessary for the working of many underground mines to remain economical. That
He then revealed that the Roan MP Mr. Kambwili who sought quite hard to be barrier has been broken in recent weeks and confidence seems to be returning.
associated with a quick identification of a new investor for the mine ostensibly in It does seem as though most mining companies of themselves are now persuaded
order to safeguard the livelihoods of his constituents had in fact been in favour of of the prudence of remaining open. Mopani Copper Mines (MCM) which had
giving it back to the company that closed it at short notice! announced plans to suspend operations of the large Mufulira mine have changed
their mind and will now remain open.
.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 Long term, some analysts now believe that the Kwacha will stabilize and trade
was active in the two demonstrations by miners for a quick identification of a new around K5, 250 to Dollar in the second quarter of 2009 despite the IMF loan and
investor so that life could go back to normal in the town.That clearly could not be the recovery in copper prices.
achieved by giving back the mine to the same people who shut it down at the first But any stabilization is expected to be influenced by the level of domestic demand
hint of stress in the business and the MP would not have not known for foreign currency. The improvement in the copper prices so far recorded is
that. So, why did he do it, “fronting” for a company that had thrown his expected to lead to a smaller deficit in the current account than presently projected
constituents out of employment? even by the IMF.

Executive Issues
Volume 10 - May 2009 News

Trade:“Aid For Trade” Initiative Given The Nod

In this case, the devil will more be likely in the implementation. 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
Increasingly nowadays, development thought has come to be riveted on the development of the North-South trade corridor.
pivotal role that trade even among the not so well off, can play in development
The North-South Corridor project aims at improving key trade routes across

Investment: Still Some

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
Tourism tops pledges list Development Community (SADC) and the East African Community (ECA).

The global economic downturn has seen to the slowing down of foreign investment It aims at making the existing trade routes more efficient by speeding up border
into Zambia. The mining industry has been particularly-hard hit. The enthusiasm crossings, improving railways, roads and ports across east and southern Africa.
at the height of the copper price boom to explore, expand and open up new mines It is targeted to upgrade 8,000 kilometres of road and rehabilitate 600 kilometres
has largely dissipated. 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
Labour and Social Security Minister Austin Liato recently revealed that about the flow of trade but open up new business opportunities. The Lusaka pledging
10,000 mine and related-jobs have been lost since mid-2008. He said the effects conference was high-level. No less than four African heads of state were present-
of the global downturn had been less severe in other sectors although slowdowns the host Rupiah Banda of Zambia, Yoweri Museveni (Uganda), Kenya’s Mwai
had been recorded in tourism, agriculture and manufacturing. But even in mining, Kibaki and Kgalema Motlanthe of South Africa. The World Bank delegation was
there are some positive developments even if only from the past. During April for led by its Vice-President for Africa Obiageli Ezkwesili British Minister for Trade
instance, President Rupiah Banda officially commissioned the Lumwana copper/ and Development, Gareth Thomas attended while Japan was represented by
uranium mine, one of Africa’s largest new mines with a year end production target the Special Advisor to the Minister of Foreign Affairs Keitaro Sato, The European
of 172, 000 tonnes of copper. Investment Bank (EIB) and several other development-financing .

Further, Mopani Copper Mines (MCM) has announced the reversal of its decision Institutions were present. The World Bank pledged US$ 1 billion - half for
to close down Mufulira mine and place its Kitwe shafts on a care and maintenance projects along the corridor and the other for projects complementing the corridor.
basis. Both operations will now remain open and it now seems only a matter of The European Commission(EC) weighed in with US$150 million, the United
time before the closed Luanshya mine is re-opened. Bids have closed and are Kingdom (UK) one hundred million pounds sterling and the African Development
being evaluated before the new investors are named. The mine is expected to stir Bank(AfDB) pledged US$600 million. Japan undertook to mobilize concessional
back to life by June. The focus of foreign investment interest is now tourism. 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
Overall, Permanent Secretary for Commerce, Trade and Industry Dr. James to be proactive in funding projects in the corridor. The Development Bank of
Mulungushi disclosed April 25, in Kitwe that government had secured US$250 Southern Africa (DBSA) committed US1.2 billion towards energy, transport and
million in investment pledges under the Zambia Development Agency (ZDA) and information communication technology development in the next three years.
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 The World Bank launched a US$40 million Multi-Donor Trust Fund to help
Empowerment Fund has been disbursed. The ZDA subsequently revealed that countries improve their competitiveness and reduce trading costs through
it had secured a total of US$110.3 million in investment pledges during April. such measures as improving infrastructure ,transport logistics and customs
More than US$73 million, 65% of total pledges were in the tourism sector. For procedures. This Trade Facilitation Facility (TFF) will support the implementation
manufacturing, pledges totaled US$16 million while agriculture had US$7 million. of practical initiatives in key areas such as border management improvement,
institution development, trade procedures, logistics services and gateway
Among some of the significant foreign investments during April were: 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
• Government April 25, 2009 signed a Memorandum of Understanding governments and organizations had “pledges” of their own to make. They would
(MoU) with Bharat Scans (Pvt) Ltd of India for the establishment of an show commitment to the project by providing the necessary counterpart funds,
ultra-modern medical diagnosis centre in Lusaka. Bharat Scans is India’s harmonizing and implementing supporting policies to attract more funding. They
largest medical diagnosis company Commerce, Trade and Industry agreed that high level political commitment was crucial to spearhead and monitor
Minister Felix Mutati disclosed that government would facilitate the implementation of agreed policy reforms to deepen regional integration and they
establishment of the centre with an initial capital of US$3 million to saw the need to develop similar aid for trade programmes in respect of other
cover the provision of the necessary medical experts. It will operate as a priority regional transport and transit corridors, notably improving the Central
joint venture of the Indian company and a consortium of Zambian doctors Corridor from the port of Dar-Es-Salaam in Tanzania to Rwanda and Burundi; the
and will open this year. Northern Corridor from Mombasa in Kenya to Ugandan Rwanda, Burundi and
• Government is also considering a multi-million Kwacha bio-fuel project DRC and the Lamu-Southern Sudan-Ethiopia Corridor.
being promoted by the Canadian company-Bedford Bio-Fuels. It
involves the cultivation of Jatropha and harvesting it for bio-fuel. Bedford The conference underscored the need to put in place an institutional arrangement
Bio-fuels is looking a 100,000 hectares for a Jathropha plantation. Mr. to programmme and manage the North-South Corridor pilot model for trade and
Mutati said the project would make Zambia a bio-fuel exporter. The to devise a mechanism for accessing the committed funds; identify funding gaps;
President of the Canadian company David Mc Clure who met with propose a sequence of implementation and seek ways in which the private sector
Mr. Mutati in Lusaka said if land was provided, his company would can come on board and complement public sector investment and financing for
immediately go into cultivation and create jobs for thousands of people. infra-structure development. The meeting went well and there seemed to have
He said if they got land in the next six months they would plant faster than been a genuine meeting of minds. Despite the crippling global economic downturn,
anyone else. His company was a consortium of business partners and if financing institutions seemed keen to invest, cooperating partners ready to assist
given land would bring in other partners to ensure long-term viability. and the countries of the corridor eager and willing to jump-start the project.

The project would be capable of producing one million litres of diesel a day. Often nowadays, it is said that the devil is in the detail. In this case
Suitable land and lease arrangements still have to be identified. however it promises to be more in the implementation.

Executive Issues
News Volume 10 - May 2009

Capital Budget 2009: Exports

Increased Sugar Exports as Factory produces own power

Better Early Than Late 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
Disbursements are in line with fiscal focus on infra-structure in 2009
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
Disbursement of funds for the 2009 capital budget has begun. Budget execution
power plant that will turn steam into electrical energy to produce 30 Mega watts
especially for capital projects has historically been the Achilles heel.
of electricity.
Late disbursement and inadequate execution capacity have resulted in the
The factory will be self-sufficient in power and will only use the national grid when
constant aberration of funds under the capital budget being returned unused and
the factory is not operating. The company has recently successfully completed
that in a bottomless pit of want!
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
Together with the large component for personal emoluments, poor and uneven
tonnes per year previously. Production this year is expected to be around 420,000
execution of the capital budget continue to be among some of the major
tons, exceeding all previous records. Zambia will be in a position to export up to
shortcomings of the national budget.
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
Budget execution has just not been at the required level and it is clear by now that
Congo (DRC) in particular.
it has to improve for the budget to have any meaning at all.
Under the old “Everything But Arms” regime, the EU had operated a quota system
There have of late been discussions around the need for a Budget Act and for
for African, Caribbean and Pacific countries. But under new arrangements as
some years especially during the tenure of the late Gibson Chigaga as Finance
a result of Zambia having signed a new Economic Partnership Agreement with
Minister, the budget for the next year was presented in the preceding one to allow
the EU that will fall off opening the way for increased exports by Zambia. The
enough room for execution. If anything changed, it was hardly discernible.
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
The central issue would appear to revolve around execution capacity. Perhaps
is now only subject to the conclusion of “certain conditions and the conclusion of
things are beginning to change? So far 24.7%, K440.8 billion of the K1.781trillion
all regulatory matters.”
capital budget has been released to the various ministries and spending agencies.

Global Recession:
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

The Ministry of Works and Supply which has responsibility for most basic infra-
structure received one of the largest allocations. At least K165.2 billion for roads
Some Positive Elements in
has been disbursed from the Fuel Levy.
the Usa
Other Disbursements:
“Sense of unremitting freefall has ended”
• K6 billion for the construction of new office blocks in Lusaka ad
Chongwe; “We’ve a long way to go. There are still serious problems in this economy.” That
• K6 billion for border facilities at Katima Mulilo Bridge (K2 billion for was Lawrence Summers, a senior economic advisor to US President Barack
construction of houses and K4 billion for other border facilities); Obama talking about the American economy at the end of April.
• K7.6 billion for the Chirundu border infrastructures comprising a freight
terminal, Passenger control building, sewerage disposal system, street He should know. Apart from his present position he served as Treasury Secretary
lighting and construction of a dog kernel for the Drug Enforcement (Finance Minister) under President Bill Clinton and though cautious, his overall
Commission. assessment of the world’s largest economy-the locomotive of the rest of the world
• K10 billion for construction of houses for the Zambia Army, Zambia economy was upbeat and noteworthy especially for developing countries like Zambia
National Service and Zambia Airforce. whose economic fortunes largely depend on a return to growth of the US economy:
• K2 billion towards the completion of the new office block for the Central
Statistical Office (CSO) in Lusaka. “The sense of unremitting freefall in the US economy has ended and the picture
• K29.3 billion for construction and procurement of housing units, is no longer completely negative, but rather mixed. Six or eight weeks ago, there
construction of a Forensic Laboratory and hospital infra-structure for were no positive statistics to be found anywhere. The economy felt like it was
the Ministry of Home Affairs falling vertically. Today, the picture is much more mixed.” Negative indicators
• K2.3 billion for prisons infrastructure remained but there were also positive ones. One positive indicator is that steep
• K2.7 billion for the construction of Immigration Department headquarters drops in consumer spending and home sales appear to be easing raising hopes
offices and border control posts that the worst may be over.
• K2 billion for the Rural Electrification Fund (K300 million for electrification
of the Nansanga Farm Block in Serene and K1.7 billion for electrification The group of seven industrial powers also reached the same conclusion. But
of Kasaba Bay. the US Treasury Secretary Timothy Geithner has warned against confusing an
• K2.9 billion to the Ministry of Local Government and Housing for water easing in the downturn for recovery. The US he said would “sustain action as long
supply and sanitation and K1.78 billion for construction of low cost as necessary to see growth resume not just nationally but globally.” The Obama
houses. administration is implementing a US$787 billion economic stimulus for the world’s
• K18 billion to the Ministry of Education for construction of high schools; largest economy now in recession for slightly over 16 months. Already US banks
• K23.4 billion for construction of basic schools which were in serious trouble not too long ago are reported to be well capitalized-
• A total K7 billion for infra-structural development at the one more hopeful sign that recovery could firm up by the end of the year.
three public universities.

Executive Issues
Volume 10 - May 2009 News

Chitalu Sampa
Chitalu Sampa was no rabble-rouser. 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,
Instead he was a quiet and rather retiring man with a staying power that kept him Northern Province and worked for what was then the General Post Office(GPO)
in public life from 1974 until his death in Lusaka, April 4, 2009. He was one of a now Zampost rising to the position of Post Master at a number of Copperbelt
troika that assumed leadership of the Zambia Congress of Trade Union (ZCTU) Post Offices.
after 1974.
His trade union activities started from there when he rose to be President of the
It comprised Frederick Chiluba who that year took over from Newstead Zimba Postal Workers Union thence to the ranks of the ZCTU.
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 He was elected Member of Parliament for Wusakile in 1991 and subsequently
reserved for the head of state. served as deputy Minister for Labor and Social Security.

Newstead Zimba stood down as president to become General-Secretary- a full He was later Home Affairs Minister, Minister of Mines and his last cabinet post
time position. Chitalu Sampa was Assistant Secretary-General and that is how the was as Defence minister.
ZCTU line up remained until 1991.
He was named deputy Defence Minister in 2002 but politely declined the demotion
Under their leadership, the ZCTU transformed into a formidable trade union –one of the few ever to do so.
movement Both Chiluba and Zimba were outspoken.
He resigned from the Movement for Multi-Party Democracy (MMD) and joined the
Sampa was quiet but remained firmly on side. Party for Unity, Democracy and Development (PUDD).

They called him Stalin-man of steel- in their circles. In his trade union days, he Subsequently he joined the Patriotic Front (PF) and was the party’s National
warranted that name every bit. He was steadfast and would neither betray nor Chairman, a position he retained up to the time of his death at the University
publicly contradict his colleagues and it could and did get hot those days. The Teaching Hospital (UTH) in Lusaka on April14, 2009.
authorities many times turned up the heat on the ZCTU.
He was buried in Lusaka with full state honours.
He was one of the long-time lieutenants of former President Chiluba who to the At the core he was a decent man.


It’s Show Season Time (Almost)

With the global economic recession Show Societies are walking the tight flavour. Going by the level of investment in mining before the global economic
rope but the shows must go on. downturn that is far from being far-fetched.

The show season is fast approaching and preparations for the three premier All things being equal, it has the potential to grow into a major regional show.
showcases-the Copperbelt Show in Kitwe, the Zambia International Trade Fair It is this year scheduled for May 27-31, under the apt theme: “Productivity in
(ZITF) in Ndola and the Zambia Agricultural and Commercial Show in Lusaka Adversity.” In Lusaka, the Show Society, organizers of the Zambia Agricultural
- are gaining momentum. 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
There is now under a month before the first in the circuit, the Copperbelt Mining, forthcoming 83rd edition, on April 17, 2009. The meeting laid the groundwork for
Agriculture and Commercial Show (CMACS) opens and as the date rapidly the show due in August.
approaches, there is more than shuffling of feet from that end. But already, the
global recession has forced five withdrawals from CMACS- Barloworld Equipment, The ZITF is also well out of slumber and plans are underway for the country’s
Boart Long Year, BP, Action Auto and Hybrid Poultry- have indicated they will not premier trade showcase. It is the case of course that during Zambia’s “hard times”
take part. of the recent past, these shows were seriously affected and despite their grand
sounding names, they increasingly became local shows exhibiting what could be
There are seventy confirmed bookings and Show Society chairman Bill Osborn in those circumstances.
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 But they have enjoyed a certain renewal in recent years. Their fortunes and
from that country to participate in the CMACS under its aegis for the first time. importance have been steadily raising and as the country seeks to boast its non-
mining exports and develop the private sector, they are bound to become a major
The15 expressed early interest to participate and the list could lengthen. In recent shop window of what is on offer.
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 A number of international traders are already a fixture at these shows. Such
in mining but taking in the agricultural and commercial as well. The poor world countries as Egypt and Iran have regularly been represented.
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 This year isn’t clearly the most auspicious. Still, the shows must go on
eager to do business with the mines and that will give it a unique international and live to thrive in better times.

Executive Issues
News Volume 10 - May 2009

Esther Phiri’s rather hollow triumph

Fourth round knockout leaves many unfazed Melissa Hernandez of Puerto Rico immediately indicated that she was willing to
fight the Zambian pugilist in Zambia or Kenya.
Zambia’s female boxing “phenomenon,” the Global Boxing Council(GBC)
Lightweight world champion Esther Phiri administered a fourth round knockout But her trainer Anthony Mwamba who has spoken up for his boxer through
of her last opponent Viparat Lasuwan of Thailand in a fight staged in the Kenyan criticisms of the Nairobi fight has said that while that fight could be staged if a
capital, Nairobi at the end of April. 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
A fourth round knockout is an impressive result by any measure. But few were she goes head to head with the reigning champion Jelena Mrdjenovich of Canada
impressed. The victory was questioned. Not that it was not achieved but on the to decide the new world champion between the two in that division.
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 Mwamba said his boxer’s victory in Nairobi showed that she had outgrown “small
Kenyan who doesn’t sound like he enjoys a good reputation in boxing circles. 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
There was something to questions about the quality of the opposition and even have said the capital outlay required to stage such a fight was beyond what they
preparedness for the fight. The fighting Thai arrived late for the fight and Esther could manage.
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 Criticism of the Nairobi fight seemed to increase after Esther was invited to State
she went about things, the Thai was an amateur, inexperienced at the very least House for a luncheon with President Rupiah Banda, a sports enthusiast of record
and some even said it appeared to be her first real fight. That she appeared ill- and long standing.The point however seems to be that if Esther’s career is to
prepared and not at all ready for the “rumble in Nairobi.” 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
Esther dispatched her to the canvass-“never to rise, never to try again at least on she is to advance.
that occasion! Questionable as the fight was cast to have been, it brought Esther
considerable international attention. 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
Women International Boxing Association (WIBA) super featherweight champion suspicions that the Nairobi fight provoked.

Arthur Simuchoba
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