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Volume 1 - July 2008

Volume 1 July 2008

Fugitive spymaster in Mozambique

OVER a meal of fresh prawns, at an exotic restaurant near the beach Moise Katumbi, a Governor in the Democratic Republic of Congo. The
in Mozambique, a Zambian family on holiday spotted fugitive former in- corruption charges and allegations against Katumbi were unceremoni-
telligence chief, Xavier Franklin Chungu alias ‘XF’ enjoying a drink. ously dropped by government, further fueling suspicion on the motive be-
He is not a rare sight on the beach front, so they were told. Chungu is hind these deals. Former Zambian Ambassador to the United States Atan
comfortably living in Mozambique with frequent traveling to several Eu- Shansonga was quietly escorted out of the country to his base in London
ropean and African countries. We hear his application for political asylum by the Taskforce on the pretext that he was going to collect incriminating
has received positive consideration from the Mozambican government. documents against Chungu and ex-President Frederick Titus Jacob Chi-
The asylum application was mainly pushed through the United Nations luba. Transparency International Zambia President Rueben Lifuka has
High Commissioner for Refugees (UNHCR). The Zambian government questioned these deals, arguing that the entire anti-corruption fight by
did not openly object to the asylum application. As this was happening, President Levy Patrick Mwanawasa has been put under a serious litmus
the Taskforce on Corruption was also cutting a deal with another fugitive, test. Taskforce chairman Maxwell Nkole believes the Katumbi deal was
worthwhile but he is not giving
the nation full disclosure. Con-
spiracy theories abound. Was
Chungu helped by the state to

The first attempt by Chungu

to escape using a light aircraft
in Mansa was thwarted by
the intelligence officers in the
area. The plane, registered in
the Democratic Republic of
Congo (DRC), was alleged to
have been chartered through
Pilatus Engineering owner,
Josef Niklaus Huweiler, who
was also at large. Huweiler is
back in Zambia and attempts
to arrest him over his role
remains elusive. Chungu re-
mained in Zambia for a while
under constant security sur-
To pg 4

Mwanawasa flirting with a snake - Page 2 Banks - Washing dirty linen - Page 8

MMD presidential woes - Page 3 Inflation - Missing the target - Page 11

Justice Mumba to head ECZ - Page 5 Diplomacy - Levy, Mugabe fights on - Page 13

Who’s who? - Page 7 Financial Briefs - Page 15

Executive Issues
News Volume 1 - July 2008

NCC - Mutilating
Mwanawasa –
flirting with a snake
FOR the last one month, controversy has raged over the “reconciliation” be-
tween President Levy Patrick Mwanawasa and his once arch-rival Michael

the Constitution
Chilufya Sata or ‘King Cobra’. Details of the so-called reconciliation have re-
mained sketchy , plunging their respective political parties into serious internal
gossip. Sata has remained cagey over the deal to the extent that he is avoiding
discussing the matter even with his close party lieutenants. Inside the ruling
Movement for Multiparty Democracy (MMD), the situation is no better. Senior
party officials, most of whom have previously worked with Sata, strongly be-
lieve Mwanawasa is not being strategic in his dealings with Sata. “You can’t
trust Sata,” said Mundia Sikatana, former Minister of Foreign Affairs, who re-
members the day Sata joined the MMD in 1991promising not to occupy any
position. But within a short time, Sata gladly took up successive senior posts BEHIND the scenes lobbying, talks and negotiations are underway to
in the party. So, many MMD members, especially cadres, are unsettled by this get the key civil society and religious bodies join the ongoing National
latest development. Constitution Conference (NCC), which they are boycotting. Stanely
Mhango, President of the Forum for Democratic Process (Fodep) is
Sata is politically astute and playing his game can be dangerous. We gather he
spearheading the initiative, which has so far, proved unsuccessful.
plans to use his ‘reconciliation’ to destabilize the MMD as it picks the succes-
sor to Mwanawasa. That way, he is said to believe, he could re-launch himself
The Oasis Forum, comprising the Council of Churches in Zambia
politically . ‘Mwanawasa is no longer an issue now since he is going,’ Sata (CCZ), the Zambia Episcopal Conference (ZEC) and the Non-Gov-
reportedly told one of his lieutenants when asked about the reconciliation. One ernmental Coordinating Council (NGOCC) has refused to change
of the key agenda items he wants to test Mwanawasa on is the constitution- their mind and join. The Oasis Forum, together with some labour
making process. Sata’s strategy is to push for the reorganization of the ongo- organizations led by the Federation of Free Trade Unions (FFTUZ) in
ing National Constitutional Conference (NCC) to include on their own terms Zambia are demanding a thorough review of the NCC Act, mainly to
the Church mother bodies and the Oasis Forum, which are boycotting. If he reduce government representatives, if they are to join the process.
succeeds , he will claim victory, justify his new partnership and woo the politi- The boycott by these crucial groups may seem to be a failure for now,
cal support of the churches. Also key to the “reconciliation” is his deteriorating
but the impact may be felt once the document is submitted to the Ref-
health. He may need to make a further call on the public purse for future medi-
erendum for adoption. The Oasis Forum plans to campaign against
cal treatment in South Africa, which is fully guaranteed if he remains in good
books with government. His wife, Dr. Christine Kaseba, is believed to be play- the NCC-produced document for lack of credibility. NCC chairperson
ing a vital role in influencing his new course. PF Vice President Dr. Guy Scott Chifumu Banda has pleaded with the boycotting groups to rescind
understands very well the suicidal political game Sata is playing. That is why their decision, knowing too well that the credibility of his draft con-
he had offered that the party refunds government expenses incurred by Sata stitution will be unacceptable among Zambians. Some donor aid
in South Africa. He was ruled out of order. Outspoken PF spokesperson Given agencies have also tried to convince the Oasis Forum and its allies
Lubinda is even more confused over the deal. He was never consulted despite to try and fight from inside the conference, arguing that constitution
being a member of the Central Committee, which is yet to meet to discuss the making is a long battle. NCC Deputy Secretary Newton Nguni met
matter. But PF insiders do not expect anything tangible from such a central
some of the civil society groups to try and get them on board but to
committee meeting since the body is packed with Sata’s place men. Only Scott,
no avail. The resistance has been strengthened by the government
Lubinda and PF chairman of legal affairs Wynter Kabimba could dissent.
move to pack the NCC with mainly unknown pastors and NGO lead-
Some close family members are worried about Sata. They say he has been ers who sympathize with the ruling Movement for Multiparty Democ-
devastated upon finding on his return that his closest and favourite son, Chi- racy (MMD). By and large, the composition of the NCC is considered
lufya, had died. He avoids talking about it, which they say is unusual for Sata. too large for any constructive debate.
Equally, worrying to them, is the fact that he has been issuing media statements
instead of quietly mourning his son until after a certain period. Mutilating the Mung’omba Constitution

Some financiers of the PF have also been demanding a change of manage- The role of the NCC seems misplaced. Recent sittings of the commit-
ment in the party. They want the strangle hold on the party of Sata and Scott
tees of the conference clearly demonstrated a lack of understanding
relaxed and replaced by a more democratic leadership with more party func-
of the role of the NCC. It appears the committees were duplicating
tionaries taking on a role. They also want party funds to be channeled directly
the work already done by the Wila Mung’omba led Constitution Re-
to provinces and districts as opposed to the secretariat in Lusaka. They want
Sata to reconcile with the ‘rebel’ Members of Parliament who defied his order view Commission (CRC), whose Report and Draft Constitution are
to stay away from the NCC. Sata has remained adamant and refused to drop the working documents for the conference. Instead of validating the
charges against the Dr. Peter Machungwa-led lawmakers, insisting that they two documents, NCC has resorted to receiving submissions from the
are indisciplined. Efforts are on going for the two camps to meet
and resolve their differences. A national conference is planned for To pg 3

later this year but few PF members believe it will take off.

Executive Issues
Executive Issues
Volume 1 - July 2008 News
minister David Phiri. The ‘Chewa boys’ is their new tag, referring to
NCC - Mutilating the Constitution their tribe, which is also Banda’s lineage. They seem to have played
same people who presented their views to the CRC. This approach their cards well in organizing the party in the Eastern province but
has been criticized by many experts who think the process will now their uncompromising maneuvers angers fellow Easterners. For
be lengthened. “They are mutilating a good document without any sure, Banda is now a key leading candidate for the MMD presidency
reason,” said Joyce Nonde, FFTUZ President, whose organization even though he has consistently refused to be drafted saying he is
decided to stay away from the NCC. The absence of former com- too old for the job. Opposition Members of Parliament like working
missioners who served on the CRC makes it difficult for the NCC to with Banda, who avoids controversy even in parliament. However, his
have institutional memory on the recommendations made in the draft
chances will depend on whether Mwanawasa will openly give him the
constitution. This has led to the duplication of the work by inviting
support and his ability to spread his messages to other areas.
same petitioners to appear and give the same views they provided
to the CRC.
Another old man’s name has recently surfaced within the MMD -Wila
Interesting, some of the consultants who worked with the CRC have
been re-engaged by the NCC to perform the same tasks. The NCC Disraeli Mung’omba (69 years) or WDM as he is fondly known among
needed the services of the draftspersons as opposed to the general his peers. He has not publicly stated his position though some senior
consultants as if they are rewriting the entire documents. For sure, party officials have already started canvassing for his possible entry
the final document that will come out of the NCC will be totally differ- into the race. Mung’omba is not much of a ‘people’s person’ though
ent from the Mung’omba’s widely accepted draft constitution and it is he has impeccable credentials. His main weakness will be in dealing
likely the Referendum will throw it out depending on how organized with grassroots members. “He is a Muzungu (whiteman),” one insider
the Oasis Forum and allies will be. So far, the role of civil society said. But his resume speaks volumes of a man widely unknown by
groups appears confusing and unfocussed. Maybe, it is a wake up the young generation in Zambia. Former Member of Parliament for
call to them to embrace new strategies and leadership. Mporokoso during the Kenneth Kaunda era, Mung’omba is a qualified
lawyer and banker who once served as President of the Africa Devel-


opment Bank (AfDB) (1980-85). He is a shareholder and chairman
of New Capital Bank Plc and sits on several boards of companies in
Zambia and abroad. He chaired the Constitution Review Commis-
THE race for President of the ruling Movement for Multiparty Democ- sion (CRC) from 2003 to 2006 which drafted the constitution widely
racy (MMD) is quietly heating up. The MMD is divided into different seen as representing the people’s will. But it is unlikely that Mwa-
camps, with members shuffling around self-anointed presidential hope- nawasa can back him after he produced a Constitution that literally
fuls. Names keep propping up as possible successors to President went against the President’s wish. Another threat he has is his distant
Levy Patrick Mwanawasa. The President himself seems to be losing involvement in internal MMD politics. He is a northerner and elder
grip on the party and may not contain the rancorous atmosphere which brother to the late maverick politician, Dean Namulya Mung’omba.
is slowly building up within. The Christine Moonga, affair was only the
tip of the iceberg. The now expelled member of the National Executive The young Turks have not been left out of the race. Stan Bwalya
Committee (NEC) was always a political nonentity but she managed Chiti, a lawyer, is among the “busybodies.” He has been meeting with
to hit the party where it hurt when she openly accused Mwanawasa key potential backers within the party in readiness for the launch of
of practicing tribalism. Moonga is well connected to the party heavy- his campaign. Chairman of Goldman Insurance, Chiti is not politically
weights, who include her husband Paul Moonga, an ex-MMD Lusaka known, though he briefly served as Member of Parliament for Mpika
District chairperson as well as Mbita Chitala, the recently sacked Am- and consecutively on the African Parliament. He tried to contest for
bassador to Libya. Many more disgruntled MMD cadres are patiently the MMD Vice-President at the last convention but the elections were
waiting for their turn to join the Moonga bandwagon, which is slowly called off. ‘He needs to grow,” said one of the senior party officials.
beginning to roll. He is a northerner and looks to be financially ready for the battle. But
he is also too smart for grassroots politics though he wears a very
As insiders fight, most United National Independence Party (UNIP) friendly demeanor.
members are quietly jumping ship to join the MMD. Their main attrac-
tion is the possibility of seeing current Vice President Rupiah Bwezani Sebastian Kopulande, an ex-aide to President Mwanawasa is equally
Banda or ‘RB’ become President. Banda, a veteran politician and diplo- in the race but very few people take him seriously. He has been ap-
mat, has never renounced his UNIP membership. So many UNIP mem- proaching strategically placed people to back his bid but it appears a
bers see him as their own man. Strategically, he has stayed away from lot of them do not think he will go far. Mbita Chitala is another politi-
the ongoing campaign by his lieutenants who are pushing his name as cian who should be watched closely. Not that he can turn tables, but
the suitable successor to Mwanawasa. Chief among the campaigners he has the capacity of causing consistent troubles in the
is Lusaka Province minister Lameck Mangani and Deputy Information MMD, which can eventually weaken the party. He is more of
To pg 4

Executive Issues
Executive Issues
News Volume 1 - July 2008

From front pg
Emily Sikazwe –
Faces fresh

VJ, FTJ reconcile go is on his way back after his stint in Windhoek.
Nyirongo, who also once served as Zambia?s
Former President Frederick Titus Jacob Chiluba has Ambassador to Belgium, has been recalled and re-
joined the reconciliation club and has made peace with placed by former presidential aide, Mavis Muyun-
his one time close friend and confidante, Vernon John- da. Muyunda worked as poitical advisor to Presi-
son Mwaanga or ?VJ?. The two fell out after President dent Levy Patrick Mwanawasa from 2001 until she
Levy Patrick Mwanawasa appointed Mwaanga tothe was retired from her post early this year.Zambia?s
position of Information minister, prompting mistrust be- deputy Ambassador to China, Chilufya Kapwepwe
tween the two. At that has also been brought back home after serving for
time Chiluba was having a big fight with Mwanawasa several years in missions abroad. Chilufya, daugh-
following allegations that he stole millions of dollars ter of Zambia?s liberation struggle hero, Simon
when he ruled Zambia from 1991 to 2001. However, Mwansa Kapwepwe, served as deputy High
after a spell in government, Mwaanga equally fell out Commissioner in Namibia before her Beijing ap-
of favour with Mwanawasa and he was unceremoni- pointment. She is being replaced by
ously sacked from cabinet. Thereafter, Mwaanga re- Zambia?s first secretary in Washington.
tired from active politics.The reconciliation of Chiluba Kapwepwe?s ?purge? came at a time when her
and Mwaanga coincided with that of President sister, Chileshe Kapwepwe was also unceremo-
Mwanawasa who made peace with his long-time niously removed as Managing Director of the Na-
archrival, Michael Chilufya Sata of the Patriotic Front. tional Airports Corporation (NAC), in a move the
We hear, United Party for National Development authorities said was to stop her from ?going for a
(UPND) President third term?. Few knew that the principle also ap-
Hakainde Hichilema or ?HH? is making overtures to plied to parastatal chiefs.Zambian Ambassador
Sakwiba Sikota, or ?Saki? to re-join the UPND which to Japan, Godfrey Simasiku, we hear, is probably
he left on the ground of tribalism. Sikota runs the small next on the flight home. Former Central Province
United Liberal deputy minister, Kennedy Shepande will replace
Party (ULP).There are indeed ?no permanent enemies him, so we are told. Shepande, former a member of
in politics but permanent parliament and chief whip of the opposition United
interests.? Party for National Development (UPND) joined the
ruling party in 2003.
Diplomacy - More pack bags

Zambia High Commissioner to Namibia Griffin Nyiron-

From front pg
Fugitive spymaster in Mozambique
veillance. However, he quietly sneaked out of the country in what the been seen openly checking-in at airports in the Democratic Republic
nation was told an ‘escapee’. But the ongoing deals and counter deals of Congo, Kenya, Rwanda, South Africa and Mozambique as well as
in the fight against corruption raises a lot of questions on his escape. Portugal, Belgium and France without any difficulties.
Over and above, Chungu has been seen flying around European capi-
tals, with a base in Portugal. How did he get the European visa? Many The absence of Chungu in court has, no doubt, made the corruption
ask. More complicated is the fact that his passport was confiscated and cases more complicated. He was at the apex of the corruption allega-
deposited in the magistrate’s court in Zambia as part of his bail tions. However, it also puts his co-accused, mainly Faustin Mwenya
condition. So, how did he get the new passport? Chungu has Kabwe, Aaron Chungu and Chiluba is a precarious situation.

Executive Issues
Volume 1 - July 2008 News

Labour – minister quizzed over new Bill

The Zambian delegation, headed by Labour and Social Security Minister state-run Zambia National Building Society (ZNBS). “In other words, the ILO
Ronald Mukuma, was quizzed by the International Labour Organisation (ILO) supervisory bodies consider that provisions which require all trade unions of-
in Geneva for introducing an obnoxious amendment Bill to the Industrial and ficers to be actually employed in the respective occupation or undertaking are
Labour Relations Act. Workers should be thankful to Joyce Nonde, President of contrary to the guarantees set forth in the Convention…,” ILO told the Zambian
the Federation of Free Trade Unions in Zambia (FFTUZ), who put up a spirited delegation. Interestingly, ZCTU President Leonard Hikaumba, who was part
lobby in Geneva during the ILO annual meetings. Despite having been left out of the Zambian delegation, did not raise objections to the Bill in Geneva even
of the government delegations, in preference to the rival Zambia Congress of though his Secretary General, Ian Mkandawire, had written to ILO to express
Trade Unions (ZCTU), Nonde managed to find her way to Switzerland to put objections to the Bill. But on May Day, Mwanawasa said the Bill was being re-
the Zambian case in perspective. An ILO committee on freedom of associa- jected by trade union leaders because they had personal interests to serve and
tion summoned Mukuma with his delegation to explain the rationale of the new some wanted to overstay in office. However, former Secretary to the Cabinet
amendment Bill, due to be presented in Parliament in July. The UN agency is and Labour Commissioner Sketchley Sacika disagreed with the President,
reported to have prevailed on Mukuma and his Permanent Secretary, Ngosa arguing that trade union members should decide on their own as to who should
Chisupa, to immediately withdraw the Bill and not to table it until the discrimi- rule them. “The election or appointment of officers of a trade union is a matter
natory clauses were removed. In particular, ILO wants Zambia to convene a for the members of a trade union, and the labour commissioner should have
meeting with trade unions to agree on the content before proceeding. nothing to do with such elections,” Sacika argued.

ILO contends that the proposed law, which President Levy Patrick Mwanawasa But government insists that the Bill is aimed at protecting workers from leaders
said will be passed without changes, is a total violation of international con- who misuse their contributions, strengthen the collective bargaining process
ventions on labour. In particular, the proposed amendment that requires trade by introducing ‘one-union, one-industry’ principle to avoid formation of splinter
union leaders to be employees was ruled to be a violation of Article 3 of the unions and prevent the public from being affected by strike actions in the so-
ILO convention number 87, which promotes freedom of association. No doubt, called essential sectors. Under the proposed bill the minister will have wide
the proposal was targeted at Nonde, an outspoken union leader, who is cur- powers to declare any sector essential. [ok]
rently serving as General Secretary of the Zambia Union of Financial and Allied
Workers (ZUFIAW) despite having retired. Nonde previously worked for the

Justice Mumba to head ECZ

PRESIDENT LEVY MWANAWASA has quietly appointed Supreme Court
Judge Mumba was born on 17 December 1948 in the copperbelt town of
Mufulira in Zambia. She began her legal career in 1973 when she was
called to the Zambian bar. She practiced law for many years before she
was appointed Director of the Department of Legal Aid in 1978. In 1980,
Judge, Florence Ndepele Mwachande Mumba the new chairperson of Mumba was appointed Judge of the High Court. She headed various
the Electoral Commission of Zambia (ECZ), subject to ratification by the national commissions. In 1989, she was appointed Investigator-General,
National Assembly. Mumba, one of the most experienced legal minds in which is Zambia’s Ombudsman, a post which she held until her appoint-
Zambia, was tipped to takeover as Deputy Chief Justice when Justice ment as Supreme Court Judge in I997.
David Mberere Lewanika passed on. However, her name was suddenly On the international scene, Judge Mumba represented Zambia at the
dropped in preference for the younger , Justice Ireen Mambilima, who Conference on Women in Nairobi in 1985 and at the African Regional
has since been appointed, ratified and sworn in as Deputy Chief Jus- Conference on Women in Senegal in 1994. Within the International Com-
tice. We hear there was a lot of talk over her proposed appointment, with mission of Jurists, of which she has been a member since 1993, she
some questioning her parent’s nationality. However, despite missing the participated in the work of the Committee of Legal Experts for the Protocol
key judicial appointment, Justice Mumba is believed to have the best cre- to the African Charter on the Establishment of an African Court on Human
dentials to handle the ECZ. “She is a tough woman, so politicians should Rights organised in South Africa in 1995. Finally, Judge Mumba took part
watch out,” one lawyer remarked. in the Sixth World Conference of Ombudsmen as African Regional Direc-
tor and Vice-President of the International Institute of Ombudsmen held
Mumba appeared before the Select Committee of the National Assembly in Argentina in 1996.
on April 21st, appointed to scrutinize Presidential nominees. Her name, She has also been a member of various national and international com-
backed with impeccable credentials, is expected to pull through the Na- missions such as the Commission of the Law Development of Zambia
tional Assembly without difficulty. But who is she? from 1976 to 1979, the Council of Law Reporting Editorial Board of Zam-
bia from 1981 to 1983, the Council of Legal Education from
Florence Who? To pg 6

Executive Issues
News Volume 1 - July 2008


THE race for President of the ruling Movement for Multiparty Democracy is not much of a ‘people’s person’ though he has impeccable credentials.
(MMD) is quietly heating up. The MMD is divided into different camps, with His main weakness will be in dealing with grassroots members. “He is a Mu-
members shuffling around self-anointed presidential hopefuls. Names keep zungu (whiteman),” one insider said. But his resume speaks volumes of a
propping up as possible successors to President Levy Patrick Mwanawasa. man widely unknown by the young generation in Zambia. Former Member
The President himself seems to be losing grip on the party and may not of Parliament for Mporokoso during the Kenneth Kaunda era, Mung’omba
contain the rancorous atmosphere which is slowly building up within. The is a qualified lawyer and banker who once served as President of the Africa
Christine Moonga, affair was only the tip of the iceberg. The now expelled Development Bank (AfDB) (1980-85). He is a shareholder and chairman of
member of the National Executive Committee (NEC) was always a political New Capital Bank Plc and sits on several boards of companies in Zambia and
nonentity but she managed to hit the party where it hurt when she openly ac- abroad. He chaired the Constitution Review Commission (CRC) from 2003 to
cused Mwanawasa of practicing tribalism. Moonga is well connected to the 2006 which drafted the constitution widely seen as representing the people’s
party heavy-weights, who include her husband Paul Moonga, an ex-MMD will. But it is unlikely that Mwanawasa can back him after he produced a Con-
Lusaka District chairperson as well as Mbita Chitala, the recently sacked stitution that literally went against the President’s wish. Another threat he has
Ambassador to Libya. Many more disgruntled MMD cadres are patiently is his distant involvement in internal MMD politics. He is a northerner and
waiting for their turn to join the Moonga bandwagon, which is slowly begin- elder brother to the late maverick politician, Dean Namulya Mung’omba.
ning to roll.
The young Turks have not been left out of the race. Stan Bwalya Chiti, a
As insiders fight, most United National Independence Party (UNIP) mem- lawyer, is among the “busybodies.” He has been meeting with key potential
bers are quietly jumping ship to join the MMD. Their main attraction is the backers within the party in readiness for the launch of his campaign. Chair-
possibility of seeing current Vice President Rupiah Bwezani Banda or ‘RB’ man of Goldman Insurance, Chiti is not politically known, though he briefly
become President. Banda, a veteran politician and diplomat, has never re- served as Member of Parliament for Mpika and consecutively on the African
nounced his UNIP membership. So many UNIP members see him as their Parliament. He tried to contest for the MMD Vice-President at the last con-
own man. Strategically, he has stayed away from the ongoing campaign by vention but the elections were called off. ‘He needs to grow,” said one of the
his lieutenants who are pushing his name as the suitable successor to Mwa- senior party officials. He is a northerner and looks to be financially ready for
nawasa. Chief among the campaigners is Lusaka Province minister Lameck the battle. But he is also too smart for grassroots politics though he wears a
Mangani and Deputy Information minister David Phiri. The ‘Chewa boys’ is very friendly demeanor.
their new tag, referring to their tribe, which is also Banda’s lineage. They
seem to have played their cards well in organizing the party in the Eastern Sebastian Kopulande, an ex-aide to President Mwanawasa is equally in the
province but their uncompromising maneuvers angers fellow Easterners. For race but very few people take him seriously. He has been approaching stra-
sure, Banda is now a key leading candidate for the MMD presidency even tegically placed people to back his bid but it appears a lot of them do not
though he has consistently refused to be drafted saying he is too old for think he will go far. Mbita Chitala is another politician who should be watched
the job. Opposition Members of Parliament like working with Banda, who closely. Not that he can turn tables, but he has the capacity of causing consis-
avoids controversy even in parliament. However, his chances will depend tent troubles in the MMD, which can eventually weaken the party. He is more
on whether Mwanawasa will openly give him the support and his ability to of an anarchist and strives where there is trouble. Depending on which camp
spread his messages to other areas. he will support, Chitala can, at times, be a good mobiliser of grassroots sup-
port. Former Member of Parliament for Mbala, Chitala is one of the founder
Another old man’s name has recently surfaced within the MMD -Wila Disraeli members of the MMD.
Mung’omba (69 years) or WDM as he is fondly known among his peers. He
has not publicly stated his position though some senior party officials have
already started canvassing for his possible entry into the race. Mung’omba To pg 7

Justice Mumba to head ECZ

tor Vs Blagoje Simic et al. As Appeals Chamber Judge, she sat on various
cases: The Prosecutor Vs Dusko Tadic, the contempts proceedings insti-
tuted against Milan Vujin and The Prosecutor Vs Zlatko Aleksovski.
1985 to 1990, the Electoral Commission from 1992 to 1994 and the Unit- Her major achievement was when she was elected Vice-President of the
ed Nations Commission on the Status of Women from 1992 to 1995. ICTY between November 1999 and November 2001. After her term end-
In 1997, Judge Mumba was appointed Judge of the International Criminal ed, she returned to Zambia where he sat on the Supreme Court bench
Tribunal for the former Yugoslavia on 20 May 1997. Among the famous until her recent appointment as chairperson of the ECZ.
cases she handled includes: The Prosecutor Vs Drazen Erdemovic, The She married Fleming Mumba , a renowned Lusaka motor rally driver who
Prosecutor Vs Anto Furundzija, The Prosecutor Vs Dragojulb died this year in a traffic accident.
Kunarac et al., The Prosecutor Vs Milan Simic and the Prosecu-

Executive Issues
Volume 1 - July 2008 News

Dr. Katele Kalumba or ‘Ka Ka’ is one of the most watched politicians in
the battle for succession. He has been in the race for the presidency for a Who’s who?
longtime now though his close associates say he has given up because of
the protracted cases of corruption against him. He has conspicuously gone
quiet, leaving most key decisions to his deputy Jeff Kande. Kalumba is very Wila Mung’omba – The old man and the medals
popular in the MMD and cadres see him as their messiah. Two key issues
work against his presidential bid. One, he is from Luapula Province, which Wila Disraeli Mung’omba’s (WDM) name is now constantly mentioned in
produced Zambia’s second President Frederick Jacob Titus Chiluba. Most political circles as the potential successor of President Levy Patrick Mwana-
Zambians would love the presidency to rotate to other provinces. Second, his wasa. [See our main story]. Even though he has never openly indicated his
involvement in the corruption cases has terribly dented his image for public
position on the matter, he has become the subject of discussions among some
office. Member of Parliament for Chiengi, Kalumba is one of the longest serv-
Zambians. The bow-tied man and former President of the Africa Development
ing lawmakers in Zambia. He remains a man to watch.
Bank (ADB), is the recipient of six Ordre Nationale du Merit or Order of Merit
medals bestowed on him by the Governments of Ivory Coast, Cameroun, Togo,
Inside cabinet, the battle is even hotter. Of late, Finance Minister Ngandu
Tunisia, Senegal and then Zaire (now Democratic Republic of Congo). He has
Peter Magande appears to be taking a strong lead ahead of his peers. Mwa-
nawasa has a soft spot for him because of his articulation on the country’s also been decorated with the Honour of Distinguished Diplomatic Services by

economic policy. But too, he lacks party grassroots connections. Formerly the Government of South Korea as well as the Honour for Distinguished Ser-
with the opposition United Party for National Development (UPND), Magande vices to Development in Africa by Mercury International.
plays his cards well. He is a media man and journalists love him because he But who is WDM?
does not carry any ‘airs’ around him. Former Secretary General of the ACP
Countries, Magande’s resume is equally impressive. He hails from Southern Born on October 18, 1939, Mung’omba is a Lawyer, Banker and Development
province. Consultant with over 30 years of experience working in Africa, United Kingdom
and the United States. Below are the key positions he has held;
Next in the race is foreign minister Kabinga Pande, a North-westerner.
A journalist by profession, Pande worked as Public Relations Manager at the
Bank of Zambia before he joined politics. He is very friendly and likes associ- • Member of Parliament – Mporokoso Constituency (1973-74)
ating with the grassroots supporters of the MMD. ‘He gives us attention when • Chairman - Public Accounts Committee in Parliament
you are talking to him,” said one cadre. However, his political experience is
very minimal though he strategically won the position of deputy chairman of • President – Africa Development Bank (1980-85)
the MMD at the last convention. Mwanawasa may just back him if he runs • Legal Advisor – Zambian Mission to the United Nations
out of options.
• Counselor – Zambian Embassy in Washington DC (1968-70)
Felix Mutati, commerce minister, personally sells his candidature through his • Partner – Jacques and Partners law firm (1971-74)
impressive articulation of national issues. But odds are against him. He is a
Bemba from Northern Province and it is unlikely that Mwanawasa can give • Executive Director – International Monetary Fund (IMF) (1976-78)
him support. Crucially, he seems to be a ‘show off’ and cadres detest him for • Senior Executive Officer – Standard Chartered Bank London (1979-80)
that. Though he usually helps them once in a while when they are in trouble.
• Legal and Financial Advisor – Zambia Privatisation Team -retained
Home Affairs minister Lieutenant General Ronnie Shikapwasha and Health by the World Bank (1995-98)
minister Brigadier General Brian Chituwo’s candidatures will be the most dif-
ficult to sell. Firstly, they are widely seen as part of the family tree of Mwana- • Member - University of Zambia Council (1988-91)
wasa. Therefore, any perceived family ties to Mwanawasa will disadvantage • Chairman - New Capital Bank Plc (2003 to date)
such a candidate. Clearly, they will not go far. As for Shikapwasha, who calls
himself reverend, some have raised concerns over his leadership when he • Chairman – Constitution Review Commission (2003-06)
was in Zambia Air Force (ZAF). He will have an uphill battle should he decide
to throw his hat in the ring. Mung’omba holds a BA (Economics) degree from Makerere University in Ugan-
da. He is a lawyer and graduate of the Honourable Society of the Inner Temple
in London, holds a Postgraduate Certificate in International and Comparative
Law from the International and Cooperative Law Centre in Dallas Texas, United

He is a widower with two daughters.

Executive Issues
Business News Volume 1 - July 2008

Banks- Washing dirty linen

THE English cliché of ‘washing dirty linen in public’ could best describe the performance Nigeria, is scheduled to begin operating soon. We hear also that FNB of South Africa
of Barclays Bank Zambia new boss Zafar Masud and his Standard Chartered Bank has shown strong interest in launching a branch in Zambia. Analysts say more big
counterpart Mizinga Shansonga Melu at the recent Euromoney conference. At the cen- players are needed to enter the Zambian market which is small but with potential to
tre of the rampus were the current commercial bank lending rates, which have remained grow especially with the growth in the mining sector. Citibank Zambia managing direc-
high despite the reduction in Inflation and Treasury bills rates. Masud is with the people, tor Saviour Chibiya says more players are needed on the market because no single
and agreed that the current interest rates in Zambia were unjustified. But Melu could bank in Zambia can provide a credit line of over US$100 million without syndication.
not take that. Central Bank Governor Caleb Mailoni Fundanga opened the debate, ear- Justice Chinyanta, Zambia’s foremost banker and chief executive officer of the South
lier, by questioning the current lending rates. In his keynote address to the conference, African-based LOITA Group of Companies agrees that competition is likely to change
Fundanga observed that the bank interest rates had not scaled down as fast as the the market. He observed that only 20 percent of the Zambian population is bankable
reduction in inflation. On average, the lending rates fell from 54.6 percent in December and so the market is larger and new players to tap in.
2001 to 24.4 percent in December 2007, which is slower than expected. Masud, who For instance, the Small and Medium Enterprises (SMEs) should be the market to
is also President of the Banker’s Association of Zambia (BAZ), said lower lending rates target, Chinyanta argued. He blamed the bigger banks for lacking innovation and only
were indeed expected with the current low inflation. With inflation projected at 7.0 per- offering Zambians copycat products and services. Standard Chartered bank has al-
cent by December this year, the interest rates should naturally fall, analysts say. But ready planned a major product targeting the SMEs, which is to be launched soon.
Melu thinks customers have over amplified the issue of lending rates, and argued that It is also building on its mortgage scheme, which has attracted a large number of
in most cases the rates were not as high as they were portrayed to be. Her comments Zambians from the formal sector.
drew a sharp reaction of disapproval from the packed hall at The Pamodzi Hotel. And
Masud openly disagreed with her, attracting a round of applause, for coming out more Loans for the ‘unbankable’
sympathetically to the business community. A study has now been commissioned by
BAZ to thoroughly investigate the reasons behind the persistent high interest rates. We One area that has steadily developed in recent years is the micro-financing sector.
hear Bank of Zambia officials are also part of the team. The idea is to reduce the cost of A number of institutions have been established to provide credit lines to less well to
doing business in Zambia, which is said to be higher at present than in other emerging do Zambians who, until recently, were considered ‘unbankable.’ Teachers, soldiers
markets. and civil servants now queue up at a number of micro-financing institutions in order
to acquire salary-backed loans. But government wants to tighten the noose on these
More banks enter the market institutions, arguing that a stronger regulatory regime is needed to deal with the mush-
rooming of micro-finance lending institutions. For instance, the BOZ survey on micro-
With more players entering the Zambian banking sector, competition is expected to help finance institutions conducted in 1999 showed that most of them were operating with
push down lending rates. The bigger players, Barclays Bank and Standard Chartered inadequate capital while their corporate structures were too weak. There were about
Bank, who have been dominant in the market, will face stiff competition from new en- 98 microfinance institutions operating in Zambia in an unregulated environment and
trants. Zambia has 13 operating commercial banks. The 14th one, Access Bank of
To pg 9

Analysis- Beware of the strong Kwacha

THE Zambian Kwacha was a key beneficiary of the initial wave of new portfolio investor According to one civil society report (‘For whom the windfall?’), the Zambian state re-
interest in Sub-Saharan African markets last year. It now looks likely to strengthen again. ceived USD 71mn in tax from mining companies over the 2002-06 period, against re-
This time, economic fundamentals will play a greater role in the currency’s apprecia- ported mining sector profits of USD 652mn. Further copper price strength more recently
tion. 2005 was an important year for Zambia. The country received sizeable debt relief is likely to be even more favourable for the profitability of the sector, although a substan-
under the World Bank’s Heavily Indebted Poor Countries (HIPC) programme and the tial sector-wide investment program is underway. With companies able to carry forward
G8-sponsored Multilateral Debt Relief Initiative. Zambia’s external debt fell from over costs associated with this investment, tax revenue was - until now - slow to rise, despite
USD 7bn to just USD 500mn by the end of the year. The good news coincided with a rally the copper boom. A World Bank study conducted in 2005 suggested that the impact of
in copper prices, and a revival of activity on the copperbelt. Inflation was still high, but the development agreements (put in place to secure investment from new operators at
nominal T-bill yields were attractive. Investors bought into the Zambian story, seemingly a time of weak international prices) was to create an effective marginal tax rate of 0%
unaware of, or perhaps unconcerned that revenue earned from copper was negligible. for the mining sector against much higher marginal tax rates for other sectors of the
High yields, currency appreciation and the benefit of leverage delivered more than 50% economy. Mining has however always been of strategic importance, as a formal sector
returns within a few short weeks. The ‘Zambian experience’ was pivotal, stimulating employer and as a contributor to export earnings. Despite extensive foreign ownership
more interest in African markets, and a new scramble for African assets. Risk appetite in the copper sector post-privatisation, fortunes on the copperbelt have always been
may have changed since the heady liquidity-fuelled days of late 2005, but the ZMK now synonymous with Zambia’s own economic performance. Between 2005 and 2006, the
looks set to appreciate again, this time for reasons related to the imposition of a windfall value of Zambia’s copper exports more than doubled, reaching USD 2.78bn, and has
tax on copper earnings. The amount of tax revenue earned from copper, and the incen- risen further since. Pressure from the political opposition, as well as encouragement
tives granted to investors in Zambia’s copper sector have long been a source from donors, helped to bring about a change in the tax regime, announced in this year’s
of controversy. budget.
To pg 9

Executive Issues
Volume 1 - July 2008 Business News
Now the mining sector faces a higher royalty rate (from 0.6% to 3%), higher corporate reduce the ‘upturns’ in the cycle. Given the structure of the windfall tax, for some of
taxes (from 25% to 30%, although losses may still be carried forward according to a pre- Zambia’s mine operators, further upside when LME copper prices rise will be negligible.
determined 75:50:25 formula), and – most significantly - will see a windfall tax imposed This will impact investment on the copperbelt in the long term. For new operators even in
on copper earnings of up to 75%. Moreover, it is the midst of a copper boom, it may well be a choice between additional investment spend
probable that these payments will be made in ZMK, significantly increasing the demand in Zambia, or elsewhere, and the upside elsewhere may be higher.
for ZMK relative to the FX inflows to which the market is accustomed. There is some
possibility that payments might be made in USD to the Zambia Revenue Authority, which Another potential problem with the windfall tax is that it is based solely on the sales
will then convert the proceeds at an average interbank USD-ZMK rate in an off-market price for copper - it does not take into account the fact that different producers face dif-
transaction with the Bank of Zambia, thus preventing the inflows from impacting the ferent costs of production, depending on how the copper is extracted. In some cases,
market severely. A sizeable currency appreciation appears imminent. ore grades in open pit mines have declined and production has been depleted, creating
a need for mining at greater depths. Costs in the Zambian mining sector are in general
Gauging the impact of the sudden ‘windfall’ already higher because of the existence of underground operations (in particular the
Konkola Deep Project which was necessary to prolong the life of one of Zambia’s largest
What will the impact of all of this be? Official attitudes to currency appreciation are still mines beyond 2011). This means that development overheads are also higher. But even
ambiguous. While Zambia, as a net oil importer, will benefit in the near term from a within Zambia, there is wide variation in the depth of the mines. The difficulty with the
stronger currency, other factors are likely to windfall tax is that it discriminates against the higher cost producers, and may discour-
dominate government thinking. Although Zambia plans to reduce its traditional reliance age the development of more marginal producers. In the context of a copper-related
on donor financing, for the moment, the contribution of donors to Zambia’s budget is boom, this is unlikely to matter. Should copper prices correct down in the future, in line
large enough for the authorities to be wary of seeing dramatic and sustained currency with weaker international growth, it might exacerbate Zambia’s vulnerability to global
strength. (The proceeds of the windfall tax have not been included in the 2008 budget). cycles. Clearly, there are various issues that may need to be revisited.
With domestic revenue collection set to surge, Zambia will be able to make rapid prog-
ress in reducing its traditional donor reliance, should it wish to do so. But questions But in the near term, it looks likely that Zambia will go ahead with its plans for the windfall
about revenue sustainability and the optimal means of development financing must still tax. Although royalties are paid monthly, the windfall tax is due at the end of each quarter
be considered). (based on daily LME prices - averaged out for a month). The ZMK has already been ap-
preciating, helped by flows related to a recent telecoms sector IPO. But the continuation
In recent years, Zambia has also tried to boost its ‘non-traditional’ sectors, especially of significant FX inflows looks likely to drive USD-ZMK to even lower levels. The new tax
agriculture and tourism. While we believe that demand for high-end tourism may be rela- regime became effective from the start of this fiscal year -April 1st. With a 3 month grace
tively inelastic with respect to the exchange rate, and that a stronger ZMK may actually period on the windfall tax, ZMK appreciation pressures are likely to be most pronounced
help with the cost of imported inputs for agriculture, such as fertiliser, (to say nothing of between June and September (unless of course the government puts in place corrective
the cost of much-needed infrastructure development), the authorities - under the influ- measures). Given the history of ZMK appreciation in leading portfolio investor interest in
ence of various lobby groups - may not be receptive to this view. There is therefore a risk African markets, global slowdown or not, we could be in for another wave of FX euphoria.
that sharp ZMK appreciation might be met with an official effort to reverse or slow the In the short term, at least. [Courtesy of Razia Khan of Standard Chartered Bank.
currency’s gains. We have incorporated this into our currency forecasts, with a mid-09

Banks- Washing dirty linen

USD-ZMK rate of 3500, compared with a rate of 3120 by the end of this year. But it is
not just the currency impact of kwacha strength on the economy that should be con-
sidered. The impact on future mining sector developments is equally important. Mining
companies have too much invested in Zambia to walk away now. The authorities appear
confident that the structure of the windfall tax will not act as a constraint on Zambian cop- this led to the BOZ introducing the ‘Microfinance Regulations’ of 2006, on the basis of
per output. Although a maximum windfall tax of 75% applies, the government estimates the Banking and Financial Services Act. These regulations managed to bring down the
that this (together with mining number of microfinance institutions to thirteen, Fundanga revealed, though he hinted
sector royalties and the higher rate of corporate tax) will increase the total mining tax that the number may rise again going by the number applications under consideration.
rate from 31% to 49%. Clearly, opinions differ, but for now it is assumed that the extent of
investment spending already undertaken by existing mine operators will mean that they
The high interest rates charged on the poor is also alarming government. Finance and
are unlikely to exit Zambia as a result of the imposition of the windfall tax. (One of the
largest operators has already invested around USD 900mn in growth projects and the National Planning minister Ngandu Peter Magande wants stronger protection against
rehabilitation of the mines since 2004, and still awaits significantly higher production). what he calls ‘exploitative interest rates’ by micro finance institutions. But the micro-
Simultaneous investment in refining capacity means that Zambia will have to remain on finance institutions argue that tightening their operations is not the answer but rather
track to achieve its aspirational production target of 1mn tonnes of finished copper, for closer monitoring to remove the ‘logs’ in the sector. For instance, Microfin Africa Zambia
it all to pay off (although copper from the Democratic Republic of Congo may also be
Limited Managing Director, Ruskin Jere, says micro-financing has managed to capture
refined in Zambia). There is some truth to this argument. The importance of economies
the majority of Zambians who were considered ‘unbankable’ by the bigger banks. “No
of scale has driven the revival of the copperbelt in recent years. Significant investment
has already been undertaken, and only more production will now help to drive costs bank looked at these people as customers…we managed to bring them on board as
down. This is especially true in some of the ‘wetter’ copper mines, where water pumping microfinance institutions,” said Jere.
can account for as much as 30% of the total running cost of the mine. If the pumps stop
operating, the mines would flood within hours. For at least one of Zambia’s largest mines, However, the risk factor of such lending is also high because most of the creditors have
a tripling of mine production is planned, and much of the investment spend has already
no fixed abode and can even forge documentation. And this explains the high interest
been committed. The huge increase in production will however require only a small in-
rates these institutions charge, another analyst explained. However, business is flour-
crease in the pumping requirement. Economies of scale will help lower production costs
and also help the mine to absorb more overhead costs. Having doubled output, Zambia’s ishing in this sector. Bigger players such as Barclays Bank have joined the bandwagon
Copperbelt looks to do it again soon. Having invested considerably in Zambia, it may not and recently opened the micro-finance wing. But should the big guys be allowed to
make too much sense for mining companies to withdraw at this stage. join the lower league? This is a question which micro finance institutions have been
asking Central Bank. And many agree that big banks should be barred from getting into
However, there are still important factors that should be noted. The investment cycle
microfinance business.
in mining is notoriously pro-cyclical, but the imposition of the windfall tax on mines will
Executive Issues
Business News Volume 1 - July 2008

LOITA – Smiling to the bank

LUMWANA - Its hooray! AFTER selling 40 percent shares in Finance Bank Zambia Limited, LOITA
Holdings Corporation Chairman, Justine Chinyanta, is smiling all the way to
FROM massive copper deposits, to the discovery of Uranium, and acquiring an the bank – and he now plans to take a year sabbatical to study at Harvard
University. One of Zambia’s foremost bankers, Chinyanta proudly admits that
additional 35,000 hectares of land, Lumwana Copper Mine (LCM) is Zambia’s
the deal was so good to refuse. “The price was also good,” he told Executive
success story. The mine, with a capital base of US$ 882.7 million is on course
Issues, but held back the figures due to confidentiality agreements. He said
to be commissioned in July. Over 75 percent of the work has been completed
the investment in Finance Bank had matured and he managed to source a
with a current workforce of 4,700. The copper project will mine and process 20
“higher quality investor” in the name of Credit Suisse. However, LOITA will,
million tonnes per year of copper ore, which will produce copper concentrates
in the meantime, manage the affairs of Finance Bank for “a period of time” to
of an average 156,000 tonnes annually. A deal has been cut with the Chi- allow a smooth handover. LOITA had a management contract with the bank,
nese-owned Chambishi Copper Smelter (CCS), currently under construction which will expire with their exit.
in Chambishi, to process the ore produced by LCM.
Up for sale next is the Industrial Credit Company (ICC), owned by LOITA. We
Graig Williams, LCM chief executive officer, must have reasons to smile espe- gather negotiations with a local consortium have reached an advanced stage,
cially after successful electrification of the 33KV Lumwana substation by Zam- but Chinyanta could not disclose when pressed, citing regulatory constraints
bia Electricity Supply Company (Zesco). The substation connects the mine and confidentiality surrounding such deals. “I promise to give more after Au-
to the national electricity grid. The water extraction system has also proved gust 1,” he said. But why is he disinvesting in Zambia? “We want to do what
reliable after testing, pumping 500m3 per hour, in readiness for the commis- we know best…” – was his answer, as he disclosed his stake in ZAMLINK, a
firm that has been approved by the Bank of Zambia to be the fulcrum for the
sioning of Africa’s largest known mine with huge untapped copper deposits.
national financial switch. The project will enable electronic funds transfers to be
more efficient in Zambia. ZAMLINK, which LOITA owns 50 percent, will also
Intense negotiations with traditional leaders, local authorities and the Ministry
help improve the efficiency of Automated Teller Machines (ATMs), which have
of Lands almost threw the project into disarray when objections were raised
become widespread in Zambia.
over the acquisition of 35,000 hectares of land for a new mine township. But
in May, the authorities gave in and allowed the mine to take possession of the For now, LOITA will concentrate on structured finance or merchant-banking type
massive land, located in the North-western province of Zambia. It is hoped that of transactions, which it has specialized in for years. Chinyanta has now set his
the traditional rulers in the area will benefit from the grant of their customary eyes on the US$ 100 million Export Fund for Zambia, which was launched
land to the foreign investor, Equinox Minerals Limited of Australia. recently. LOITA was appointed manager for the fund. Chinyanta predicts that
his firm will “most likely take an equity interest.”
Good news for LCM is the final confirmation that the Uranium, situated within To pg 11
the mining area, is economically viable and will be mined and stockpiled during

Oil – ZANACO scoops tender

the same period as of copper. The feasibility study carried out from April 2007
to May 2008 confirmed the availability of huge Uranium deposits within the
Mulundwe and Chimiwungo zones of Lumwana. The news coincided with the THE partially state-owned Zambia National Commercial Bank (ZANACO)
International Atomic Energy Agency (IAEA) approval of Zambia’s regulations has been awarded the tender to finance the US$ 1.2 billion oil procurement
to guide the country in Uranium mining. Mines and Mineral Development min- deal after it emerged winner in the three-horse race. The bank scooped the
ister Kalombo Mwansa announced that the regulations will encompass guide- tender after a competitive bid, so we are told, beating Citibank and a joint
lines on mining, milling and transportation of Uranium and other radioactive undertaking by Finance Bank Zambia and the PTA bank. Energy Perma-
products in the country. The Bill, regulating Uranium, is due to be presented nent Secretary Peter Mumba said negotiations with ZANACO were expected
to parliament in July. to conclude soon. The government selected International Petroleum Group
(IPG) of Kuwait to supply the crude on a longer term basis to avert possible
For now, LCM has lodged documents with the Environmental Council of Zam- fuel shortages that had hit the nation last year. Initially, Zambia picked Stan-
bic Bank Zambia Limited, a subsidiary of Standard Bank of South Africa, to
bia (ECZ), asking for authorization to proceed with Uranium mining, as per
finance the 1.5 million tonnes crude oil procurement but the deal went sour
Zambian law. The Environmental Impact Assessment (EIA) provides details
after the two parties disagreed on the technicalities. We hear South Africa’s
on how the company intends to mitigate the environmental concerns which the
Ned bank was also interested in the transaction even thought it never ten-
project will raise. All things been equal, the LCM Uranium project is expected
dered. In the meantime, PTA bank will finance the procurement of crude while
to begin construction activities during the third quarter of 2008. The project is
talks between ZANACO and government go on. So far, some 90,000 tonnes
tentatively set to open by 2010, the company said in a statement. of crude, financed to the tune of US$75 million dollars by PTA bank, arrived
in the country and the second consignment due in July.

Executive Issues
Volume 1 - July 2008 Business News

LOITA – Inflation – Missing the target

ONE question that unsettles the maverick Finance Minister Strong Kwacha is back

Smiling to Ngandu Peter Magande is the imminent possibility of missing

the projected year-end inflation target of 7.0 percent. Asked
whether he was on track with his inflation target especially that
Away from inflation, Zambians are also grappling with the
re-emergence of the “strong Kwacha,” which has been trig-

the bank
the figure is showing an upward trend in midyear, Magande’s gered, we are told, by good economic performance mainly
tone changed: “Why do you want to know? Do you use inflation in the mining sector. For instance, copper output shot-up
in your planning at home?” the minister queried the reporter at by 101.6 percent between 2000 and 2007, bringing in more
a recent news conference. foreign exchange on the market. This was further beefed up
by the upsurge in copper prices on the international market.
He is a Zambian resident The earnings from the Non-Traditional Exports (NTEs) tripled,
He has every reason to be riled because recent developments
in South Africa who will BOZ claims [see graph], though analysts argue that this sec-
show that he may miss his much acclaimed target. Reasons?
tor has been badly affected by the strong Kwacha. “Only few
be taking a sabbatical in The ongoing electricity outages, the rising in global oil prices NTEs performed well, the majority did badly,” said Trevor
August this year as a fel- and the food shortages facing the world. These factors are put- Simumba, an economist who has been following the trends.
low of the Weatherhead ting a strain on government’s intention to tightly hold inflation at He argued that cotton and tobacco industries are performing
Center for International single-digit level. Dr. Denny Kalyalya, Deputy Governor of the badly due to the strong currency leading to job loses in rural
Affairs at Harvard Uni- Bank of Zambia (BOZ) in-charge of operations, admitted the areas where the sectors employ a lot of labour and Indeed,
versity, though he will problem, but was quick to point out that the 7.0 percent is still the figures from BOZ show a decline in some of the NTEs in
realistic, “at least for now.’’ recent years.
continue as non-execu-
tive chairman of LOITA. “I “There are challenges in reaching that (inflation) target but we
can’t give up yet,” Kalyalya told members of the Economic As- The country is also enjoying huge savings from lower for-
will be there for one year eign debt servicing after the country qualified for the Highly
sociation of Zambia (EAZ). Many economic pundits agree that
and intend to consolidate Indebted Poor Countries (HIPC) initiative after which the debt
it may be difficult to achieve the 7.0 percent target if the current
the Group’s potential stock decreased to US$2.1 billion as at December 2007 from
trends of power outages and rising global oil prices continue.
base in the US market,” US$7.3 billion in 2001. Foreign Direct Investment (FDI) has
“After all, high inflation is not always a bad thing,” Barclays also picked up in the aftermath of the HIPC debt relief. And
Chinyanta said. A lawyer Bank Managing Director Zafar Masud, chipped in, defending so? It’s a strong Kwacha! But is it good or bad? - That is a
by profession, Chinyanta Magande at the Euromoney Conference. question that still begs an answer.
has over 25 years of ex-
perience in investment
banking, having worked
as Vice-President of Ci-
tibank Africa region as
well as HSBC Africa be-
fore venturing into LOITA.
He is an executive Vice-
President of the Southern
Africa Chapter of the Af-
rica Business Roundtable

LOITA Holdings Corpora-

tion, founded by Chinyan-
ta who is Group chair-
man and chief executive
officer, is the holding
company for LOITA Capi-
tal Partners International
– an investment banking
firm – and Fintech, an IT
company. The Group also
has interests in LOITA
Transaction Services,
which has a stake in Afri-
can Financial Switches.
Source: Bank of Zambia

Executive Issues
Business News Volume 1 - July 2008

Telecoms: Zamtel – Big boss wanted

THE cash-strapped Zambia Telecommunications Company Limited (ZAMTEL) pleaded with the subscribers to stay the course, promising better things to
is looking for a new boss to stir the company to profitability. The board wants come, though few believed him.
a Managing Director who has a master’s degree in Business Administration,
a degree in Economics, Business Administration, Engineering or Information But at LuSE offices, Celtel Managing Director, David Venn, was in a cham-
Technology. The candidate must have at least 10 years experience working at pagne popping mood. There, it was fanfare, bells ringing to signify the opening
senior management level in a large commercial organization. of the trading of Celtel shares, which went on public offer between April 30 and
May 20th 2008. It was Zambia’s largest Initial Public Offer (IPO), so we are
Zamtel has financial woes that have led to management suspending its spon- told, with over 150 percent oversubscription. Applications from international
sorship of the company’s football team. It also plans to downsize staff in a institutional investors were cut back to 20 percent from their origin bid of 51.5
major restructuring exercise. The new boss will have an uphill battle turning percent. And so did the Zambian institutional investors get affected, by a 12
the company around while at the same time managing the political interfer- percent cut, in order to allow ordinary Zambians acquire shares. Celtel Africa
ence that comes with such jobs. Group chief executive officer Chris Gabriel was also in attendance, witnessing
the first trading of the 20 percent shares at LuSE alongside finance minister
Vodacom - Kavindele fights on Ngandu Peter Magande and transport and communications minister Dora
Enock Percy Kavindele or ‘EPK’ rarely gives up on business fights. He has “It is one of the biggest IPO in Zambia,” declared LuSE acting Chairman Lewis
won round one against the Communications Authority of Zambia (CAZ) over Mosho, adding that refunds will be made soon. But, he promised, not to Zam-
the fourth mobile phone licence which was issued to his Vodacom consortium bian investors.
in 2001 but was later withdrawn. The reasons given for the withdrawal was that
the main consortium member, Vodacom International Holdings had pulled out Celtel Zambia is the largest mobile phone operator in Zambia with more than
of the Zambian venture and that decision altered the suitability of the consor- 2.1 subscribers (as at March 2008) and its network has expanded to most
tium to proceed with the venture. Kavindele insisted that he would proceed parts of the country. It claims to have a market share of 78 percent in Zambia
with the venture through his company, Unitel Communications Limited, by and that it why the Zambia Competition Commission (ZCC) is now pushing for
bringing in other investors. Lusaka High Court Judge Philip Musonda has, in a fourth player to immediately enter the market to undo the Celtel monopoly.
the meantime, halted the CAZ from going ahead to award a licence to a differ- But in the meantime, Celtel will have to deal effectively with the congestions
ent group and ruled that Kavindele is still the lawful owner of the licence. But and connections woes on its network if it has to satisfy the customers.
CAZ said it is appealing to the Supreme Court against the high court order. We
hear the Attorney-General may join the legal battle against Kavindele. Here are the owners of Celtel Zambia Limited

The CAZ advertised for investors to tender for the fourth mobile telephone • CIBV – 78.9%
licence. The tender also raised a lot of questions among investors, includ- • IFC - 1.1%
ing questions over the requirement to pay a non-refundable fee of close to • Zambian Public – 3.4%
US$100,000. And yet the tender was only to run for four weeks. Conspicu- • Celtel Employees – 0.2%
ously, the tender did not talk of bringing Zambians on board as an advantage • Local Institutional investors – 6.3%
in line with the Citizens Economic Empowerment Commission (CEEC). Ru- • Foreign institutional investors – 10.1%
mours flared that some Indian group, with strong political connections, had
been assured of wining the tender. For now, everyone will wait for the long Fuel prices – Going up and up!
battle of EPK who, surely, will not give up without a big fight. But as the fight
goes on, there is a list of investment lobbyist circling government departments “Brace yourselves for high fuel costs,” was the timely warning from Presi-
dent Levy Patrick Mwanawasa. Indeed, Zambians have already started
with proposals for the fourth mobile telephone company.
feeling the pinch over the global rising in oil prices. Finance Minister
Ngande Peter Magande announced measures, insignificant though, of
Celtel – Please try your call later! trying to keep the fuel prices within reach of the majority. He reduced
excise duty on petroleum products with the rate of diesel coming down to
When the shares of Celtel Zambia Limited began trading on the Lusaka Stock 15 percent from 45 percent while petrol was reduced to 45 percent from
Exchange (LuSE) on June 11, 2008, company Director of Finance, Randell 60 percent. Kerosene has been zero rated. The measures will result in
government losing revenue to the tune of K127 billion, Magande said.
Hato, was answering tough questions from customers at a sideline meeting
However, the reduction in excise duty will not in anyway push down the
during the Euromoney conference. Subscribers wanted to know why the com-
pump prices of fuel. Economic experts have questioned the rationale of
pany is expanding so fast but yet the network is performing poorly and annoy- government maintaining the excise duty on fuel when it is scrapping the
ingly so. fuel subsidies. Since October 2007, government has been toping up on
Hato, in a calm and cautious tone, assured customers - some threatened to pump prices in order to mitigate high fuel prices. So far, ZMK 96 billion
abandon the network – that the problems affecting the quality of Cel- has been spent on the fuel subsidies, which government says must be
stopped. Indeed, Zambians must begin preparing for high fuel costs in the
tel had been caused by the delay in moving their call-centre operation
coming months if the rising oil prices on the international market continue
from Central Park to the new building in Lusaka showgrounds. He
with an upward swing.

Executive Issues
Executive Issues
Volume 1 - July 2008 Diplomats

Diplomacy – Levy, Mugabe fights on

ZAMBIAN President Levy Patrick Mwanawasa’s credentials as a regional leader Zambia. Mwanawasa has already said he is not ready to accept an estimated 25,
have been bolstered, following his strong stance as SADC chairman on neigh- 000 Zimbabweans fleeing xenophobic attacks in South Africa who had indicated
bouring Zimbabwe. Western countries have used superlatives to describe his willingness to re-locate Zambia. Only genuine asylum seekers, whose lives were
leadership of the regional body. But the majority of his peers in SADC view him in danger, would be granted entry. On June 10, Zambia granted political asylum to
as something of a sell-out who is conniving with the West to press for “regime 12 supporters of Zimbabwe’s main opposition Movement for Democratic Change
change” in Zimbabwe. By and large, the allegations against Mwanawasa are (MDC) who fled the escalating violence ahead of the presidential run-off election.
unfounded but they persist. Out of the 14-member countries of SADC, only Bo- The United Nations High Commissioner for Refugees (UNHCR) in Lusaka is cur-
tswana’s new President Ian Khama and to some extent Tanzania’s Jakaya Mrisho rently screening more MDC supporters before recommending them to Zambia for
Kikwete, seem to be in concert with Mwanawasa over Zimbabwe. President Rob- asylum. The Maheba Refugee Camp in North-Western Province, which sheltered
ert Gabriel Mugabe and his government consistently portray Angolans during the civil war, will be the new home for the Zimbabweans. But
Mwanawasa as a Western puppet especially after he quite undiplomatically char- Zambia has asked UNHCR to provide funds for the refugees because the country
acterized the political and economic meltdown in Zimbabwe as a case of the has no budget line.
‘Sinking Titanic’. The remark did not go down well in Harare, which immediately
dispatched the veteran political bruiser, Didysmus Mutasa (Minister of State for Divisions within SADC over Zimbabwe have increased with the majority of the
National Security) to Lusaka to lodge a complaint. Thereafter, a long political and member countries accusing Mwanawasa of failing to follow procedure in handling
diplomatic fight between the two governments ensued. the crisis. The Zambian leader confirmed at a news conference that President
Mbeki has not been consulting with him as chairman and he had the cheeky of
A last minute cancellation of a planned official visit to Zimbabwe by Zambia’s Se- ignoring his telephones calls – a worrying development for SADC. While attending
curity and Intelligence Service Director-General Regis Phiri signaled the continu- the Tokyo International Conference on African Development (TICAD) in Japan,
ation of problems between the two countries. We hear Phiri had been Mwanawasa called for a sideline meeting with SADC leaders to discuss Zim-
invited by Zimbabwe to workout an amicable détente. Mwanawasa responded by babwe. Mwanawasa wanted a quick resolution of the deployment of the SADC
dispatching Vice President Rupiah Bwezani Banda as a Special Envoy to assure Observer Mission to Zimbabwe for the presidential run-off election. In attendance
Mugabe that he was not trying to destabilize his presidency as alleged by his of- were South African President Mbeki, Nambia’s Pohamba, Malawi’s Bingu wa
ficials. Banda managed to calm the situation down but Zimbabwean government Mutharika, Tanzania’s Kikwete, Swaziland King Mswati and the Prime Minister of
suspicions of Mwanawasa’s hand in their problems continued. They were re-kin- Lesotho Pakalitha Mosisili. The rest of the countries were represented by their for-
dled anew when Mwanawasa invited Zimbabwe’s main opposition leader Morgan eign ministers. Zimbabwean foreign minister Simbarashe Mumbengegwi raised
Tsvangirai to the April extra-ordinary summit in Lusaka to discuss the Zimbabwe a point of order, asking whether Mwanawasa was right to raise the issue of the
elections. The summit was heated and Mwanawasa seemed isolated with the SADC Observer Mission without consulting Mbeki, who is the SADC mediator
other leaders taking the view that the invitation of Tsvangirai was irregular. The on Zimbabwe. Mbeki supported Zimbabwe on the point and the other countries
Zambian leader defended his position, insisting that the invitation was made after joined in support. They wondered why Mwanawasa called the meeting when
consulting South African President Thabo Mbeki and Khama. Thereafter it was Angolan President Eduardo dos Santo who chairs the SADC Organ on Politics,
open season. Zimbabwe’s state-run Herald newspaper published a chain of edi- Defence and Security was supposed to do that.
torials and feature articles critical of Mwanawasa.
Mwanawasa was unanimously ruled out of order and we hear he threatened to
The Zambian government was forced to lodge a formal diplomatic complaint by resign from his position though his Foreign Minister Pande denied the report. On
way of a note verbale , a form of diplomatic communication, as relations between June 5, Zambian Information minister Mike Mulongoti, castigated SADC leaders
the two neighboring countries worsened, as accusations by Zimbabwe that Zam- for failing to send the mission to Harare when it was agreed to do so at an extraor-
bia received US$71 million in ‘aid’ from the United States for ‘regime change” dinary heads of state summit held in Lusaka on April 13.
in that country flew. Zambia denied the accusations. Foreign minister Kabinga “President Mwanawasa found it difficult to reconcile his conscience when some
Pande announced on June 5 that the Zambian government was shocked by the heads of state and government spoke at length, deliberating on the procedural
persistent attacks on Mwanawasa who was genuinely trying to help resolve the debate and consequently ended the meeting inconclusively,” Mulongoti said.
crisis on Zimbabwe. The trouble with Mwanawasa and indeed other leaders in the region is that they
Zimbabwe’s outspoken Justice and Constitutional Affairs Minister Patrick China- do not trust Tsvangirai whom they consider to lack presidential qualities. In fact,
masa insists that Mwanawasa has failed to implement a Southern Africa SADC Mwanawasa’s government once deported Tsvangirai from Livingstone where he
resolution that mandated him to engage Western countries in order for them had sneaked in with his Movement for Democratic Change (MDC) leadership to
to end their sanctions on Harare. Mwanawasa is SADC chairman until August hold their strategic meeting. The MDC promised to take on Mwanawasa but aban-
when Mbeki takes over. Zambia and Zimbabwe have almost suspended routine doned that mission on the way. Mwanawasa is now hitting hard on Zimbabwe
diplomatic briefings, through their legations. But Mwanawasa is insistent that he as he prepares to handover the chair to Mbeki in August. “Last kicks of a dying
will not keep quiet when the political and economic meltdown in Zimbabwe is horse…,” a Zimbabwean official remarked, counting days of Mwana-
affecting Zambia. Zambian authorities have now tightened border controls with wasa’s time at the helm of SADC. No doubt, he will be remembered for
Zimbabwe in an attempt to block hundreds of Zimbabweans from crossing into taking such an unprecedented position as chairman. To pg 14

Executive Issues
Executive Issues
Diplomats Volume 1 - July 2008

Diplomacy: Russian money to flow into Zambia?

Russia’s outgoing Ambassador to Zambia Dr. Anvar Azimov raised dust

Bon Voyage to Obote

on the international scene after he disclosed that three Russian compa-
nies are planning to invest a staggering US$2 billion dollars in Zambia.
Initially, Azimov said the three Russian companies will pump in US$ 3 bil-

lion dollars in Zambia’s mining sector. But international investment advi-
sors doubts the figures especially that Russian investors rarely cuts such
kind of deals in Africa. The Mineweb quoted a South African mining ad-
visor as saying “it sounds like unlikely story to me. Russians never ac-
tually invest their money into Africa, and especially into Zambia.” When
The Zambian government has finally managed to secure a deal on behalf pressed for details, the Russian Embassy in Lusaka opted to remain mute.
of the over 200 supporters of the late former Ugandan President Milton The three Russian companies are said to be exploring the possibilities
of launching Greenfield mining investments, including setting up a multi-
Apollo Obote for them to return home after years in exile. Obote who had
million smelter, a power station, railway line and a mining town with hun-
been a guest of the Zambian government died in October 2005 in a South dreds of houses for mineworkers. The representatives of these companies
African hospital where he was evacuated after an illness. The Ugandan team are due to arrive in Zambia this month to conclude on the negotiations.
has been living in Zambia since 1985 after they fled their country following
the overthrow of Obote’s government by President Yoweri Kaguta Museveni. RusInvest partner (Renova Groupe), ECN Groupe and Aurora Capital are the
three companies said to be interested in Zambia and their key officials have
Home Affairs Permanent Secretary Susan Sikaneta bid farewell to the first
already opened talks with government. Joint ventures with Zambians are the
batch of the returnees on May 21, 2008 at Lusaka International Airport where possibility but the Russian should take not less than 70 percent sharehold-
they boarded a Kenyan Airways flight to Kampala. Most of the Ugandans, ing, Azimov was quoted as saying. “They are interested in huge projects, not
who were given political asylum by then President, Kenneth David Kaunda, small ones,” Azimov said. We understand they have already put in a propos-
al to develop a smelter at Lumwana Copper Mines (LCM) in northwestern
have been living in fear of returning home after they were accused of com-
Province at a cost of US$ 400 million dollars. LCM, due to be commissioned
mitting atrocities during the Obote rule. Now Museveni has agreed to allow
this month, has no smelter and it plans to process its copper ore at the Chi-
them back without facing repercussions even though others are still scared nese-owned Chambishi Copper Smelter (CCS) currently under construction.
and do not trust Museveni.
However, we understand the Russian investors have faced difficulties in
finding mine areas where to exploit because most mineral areas with huge
The United Nations High Commissioner for Refugees (UNHCR) has provided
untapped deposits have already been granted to investors. The Ministry of
US$ 210,000 for the voluntary repatriation of the Ugandans. For the purpose Mines and Mineral development is working out a process of repossessing
of their return, the returnees have been given Voluntary Repatriation Forms the exploration licences issued to investors who have never used them.
(VRFs) issued by the UNHCR since most of them have no valid passports. Luapula province may also be the only available land for the Russians, who
Besides providing transportation to the Ugandans, UNHCR will also assist have also pledged to support sport. Another option which the Russians are
considering is outright purchase of the exiting mines from the current own-
them with small grants to help them during the journey as well as use part of
ers. “This story is too good to believe,” said one mining investor in Zambia.
the funds for re-integration in Uganda. But he was quick to point out that it will make a lot of sense if the Russians
were eyeing Uranium, which has been discovered in most parts of Zambia.
UNHCR said the political, economic and social conditions in Uganda are now
About 30 other Russian investors have visited Zambia in recent months to explore
ripe for such an organized repatriation.
the business opportunities in Zambia. Meanwhile, the Russian government
has disclosed that it intend to strengthen its military cooperation with Zambia.

Diplomacy – Levy, Mugabe fights on

plan of President Robert Gabriel Mugabe who will, undoubtedly, be declared
winner unopposed. This is what the ruling ZANU-PF wanted – to get victory at
all cost. The opposition Movement for Democratic Change (MDC leadership is
divided on the matter. One camp feels that boycott of the polls will definitely help
Meanwhile, Zambia’s first President Kenneth Kaunda is pushing for a new initia- Mugabe consolidate his position and anoint a successor within his ranks and file.
tive on Zimbabwe, asking SADC to push for a Mugabe-led unity government. He This will surely change the political landscape of Zimbabwe. But the other groups
argues that whatever the outcome of the June presidential run-off, the problems argues that violence participating in the sham elections will only give credence to
of Zimbabwe will not be solved more so that the security and defence forces have Mugabe to claim fake victory based on intimidation. And in any case, they argue,
joined in the political bandwagon. He suggested that opposition leader Tsvangirai the outcome of the presidential run-off was already predetermined following the
should accept the position of Prime Minister to be created with equal powers with announcement by the defence and security chiefs that they will not accept an
the President. Losing independent candidate in the first round, Simba Makoni, is opposition victory. Both sides have valid arguments. However, the boycott has
said to be pushing for a unity government as well. made Mugabe to consolidate his hold on Zimbabwe. We hear he is now pushing
a smooth succession plan involving his trusted minister and friend, Emmerson
Side Bar Mnangangwa, to takeover the reign. However, within ZANU-PF, strong opposition
against Mnangangwa, is also strong – mainly spearheaded by the powerful retired
The last minute pull-out from the run-off by opposition leader Morgan Army General Solomon Mujuru. Mujuru is pushing for the wife, Joyce Mujuru, to
Tsvangirai was ill-timed strategy. This will definitely works in the game- takeover. She is current Mugabe’s number two but without any influence.

Executive Issues
Executive Issues
Volume 1 - July 2008 Profiles

Financial Briefs – Key Appointments ACC - Nix to Nixon Banda

Sometimes it does not pay to act professional, at least the Anti-
Chikolwa – A moving boss
Corruption Commission (ACC) Director-General, Nixon Banda,

Joseph Chikolwa, Chief Executive Officer of Zambia Consolidated Copper must have learnt by now. Banda has been a thorn in the fresh of
Mines- Investment Holding (ZCCM-IH) has been appointed new managing most senior government officials serving in the current govern-
director of Stanbic Bank Zambia Limited, taking over from Larry Kalala who ment. And it was not a surprise that his contract has not been
has become the bank’s chairman. Chikolwa has held key positions within renewed. The reasons given for the non-renewal is that Banda
the financial sector, including that of general manager/ chief executive of- had reached the legal retirement age of 65, ACC said. Com-
ficer of the Lusaka Stock Exchange. He also held senior positions in Zambia missioner Akashambatwa Mbikusita-Lewanika tried to justify
National Commercial Bank Plc, Standard Chartered Bank Zambia Plc and the decision saying it what the ACC Act provided. But the list of
Investrust Bank Plc. retired senior government officials serving in key positions, in-
cluding in the defence and security, is good testimony to expose
Holder of a degree in Economics from the University of Zambia, a master’s government’s double-standard. For instance, Police Inspector-
degree in Finance from University of Wales, a diploma in finance from the General Ephraim Mateyo and Zambia Air Force Commander
Institute of Financial Services, Chikolwa is a fellow of the Zambia Institute General Samuel Mapala are all on contracts. We understand
of Bankers. that Banda was due to get a fresh contract but suddenly things
changed, prompting speculation on the real reasons behind his
Chipwende – Homecoming exit. Ever since he was appointed to steer the ACC, Banda had
been upright in his dealing. His boldness to fight corruption often
Andrew Chipwende had been appointed chief executive officer of the re- landed him in problems with influential people in the current gov-
cently created Zambia Development Agency (ZDA). Chipwende held senior ernment. One prominent case is that of the Drug Enforcement
positions with the disbanded Zambia Privatisation Agency (ZPA), which he Commission (DEC) where he steadily intervened and arrested
later headed before its dissolution. He specializes in policy formulation, pro- key persons, including former Commissioner Ryan Chitoba for
gramme design and strategy development. After his stint at ZPA, Chipwende corruption. Chitoba and his ex-deputy Jacob Koyi are current-
was appointed advisor to the government of Sierra Leone in-charge of priva- ly in court facing criminal prosecution. Chitoba promised t fix
tization, which focused mainly on sector reforms and improving business
Banda. Attempts to discredit him in the media as a corrupt-man
conditions ahead of the country’s privatization programme. We hear he faced
were orchestrated but to no avail. At some point, the Law As-
a big competition at ZDA during the interviews but he emerged the favourite
sociation of Zambia (LAZ) intervened in the matter after Banda,
within government circles.
a lawyer and member of the LAZ, was accused of corruption.
LAZ cleared him after he appealed before one of its commit-
Chewe – Eating with Nigerians
tees. Banda was never short of controversy. He angered the
magistrates’ after he accused them of lacking capacity to handle
David Chewe has been appointed first chief executive officer of Access Bank
high profile cases. Subordinate courts boycotted handling ACC
Zambia Limited, which is a subsidiary of Access Bank of Nigeria. Chewe is
cases until he apologized for his remark. And government has
the current President of the Zambia Institute of Banking and Financial Ser-
now said ‘nix’ to Nixon.
vices. He is a renowned banker who has served at senior and executive lev-
els at Standard Chartered Bank Zambia Plc, Stanbic Bank Zambia Limited,
Barclays Bank Zambia and Zambia National Commercial Bank Plc.
Key Events in July
Mung’omba – The perseverance
Mable Mung’omba has been appointed first director general of the Citizens • Zambia International Trade Fair – [2-8th July 2008]
Economic Empowerment (CEE) Commission. Immediate past president of
the Zambia Institute of Marketing, Mung’omba has over 18 years of experi- • Commonwealth Parliamentary Association –
ence in the private sector where she held senior executive positions, includ-
Africa Region Conference [11-19 July, 2008]
ing that of general manager at former International Chemicals (Z) Limited.
Mung’omba holds an undergraduate degree in Business Administration from
• Smart Partnership Conference – [28 – 31 July, 2008]
the Copperbelt University and three postgraduate qualifications.
She has among other qualifications a Masters in Business Administration
• Commissioning of first phase of Lumwana Copper Mines
with a major in Multinational Finance and International Business, diploma
from the Chartered Institute of Marketing, United Kingdom (CIM) and a Cross (LCM) – Dates to be announced
Sector Partnership qualification from Cambridge University.
She also worked as chief executive for the Africa Health Services, an Anglo
American Corporation subsidiary, before joining the start-up team that led to
the vision and development of Celtel.
Executive Issues
Executive Issues
Profiles Volume 1 - July 2008

Executive Newsman Executive Issues

Executive Issues was founded by Dickson Jere, a Zambian-based Journalist Zambia has become one of the key emerging markets in Southern Africa
and Media Consultant who specializes on Africa. He is an analyst in business with Foreign Direct Investment (FDI) on the increase. The capital market is
and political intelligence, media advisory, lobbying and profiling, with a unique opening up while the banking sector is going through unprecedented expan-
network of contacts in key institutions and organizations within Southern Af- sion. In the midst of these developments, politics is also passing through an
rica. His services have been sought by international risks consulting firms interesting phase, with campaigns for possible successors of President Levy
such as Control Risks Group, Leriba Risks and Cross-Border Information. Mwanawasa heating up. This phase, undoubtedly, require stead monitoring
and tracking.
Jere has worked with multi-national media outlets, including the leading inter-
national newswire, French News Agency (AFP), British Broadcasting Corpo- Executive Issues, a new intelligence newsletter, was primarily established to
ration (BBC) and Radio France International (RFI). As AFP Correspondent, become the ultimate source of reliable information on Zambia. It will provide
Jere traveled extensively covering major stories and events in France, Kenya, timely and up-to-date, informed and in-depth analysis into the country’s po-
Senegal, South Africa, Zambia and Zimbabwe. He features regularly as Politi- litical, economic and financial activities. This unique publication will mainly
cal Commentator on South Africa’s foremost talk-show radio, 702. Currently, provide coverage on hard-to-find confidential news for specialized reader-
he writes for specialized international publications, which includes; ship that will include diplomats, chief executive officers, managers, banks,
lawmakers, lawyers, politicians and academicians. The publication will have
• Africa Confidential no links to either government or political movements. With a chain of expe-
• African Energy rienced correspondents, Executive Issues will strategically position itself as
• Africa Report a ‘must-read’ publication for people interested to know Zambia, its movers
and shakers; and the risk factors for investors or would-be investors; and the
Jere began his media career with The Post newspaper in Zambia before ven- general decision making processes which might affect various interests.
turing in international reporting, mainly covering Africa. Jere is also founder
and Chief Executive Officer of Brentwood Public Affairs Limited, an emerg- Executive Issues will be a subscription-based newsletter, which will also pro-
ing consultancy firm that provides a chain of communication strategies and vide tailor-made Special Reports for clients who may need detailed analysis
advisory services. on any subject matter on and about Zambia.

Founded and registered in Zambia as a newspaper, Executive Issues went

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Plot No. 62, Central Street
Chudleigh, Lusaka ing in 2008. It is published by Brentwood Public Affairs Limited, a premier
P.O. Box 32295 media advisory firm, specializing in profiling, media monitoring and tracking,
e-mail: research and business and political risk advisory.
Phone +260-977-767887

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