PF unstable in W/Province, says Oyati
By Moses Kuwema
Fri 25 May 2012, 13:29 CAT
A MEMBER of the PF's central committee, Winnie Oyati says the party in Western Province is not politically stable because of the intra-party divisions.
And PF secretary general Wynter Kabimba says the party has taken a position not to empower its members using the Citizens Economic Empowerment Commission because the CEEC was a corrupt institution set up by the MMD.
Speaking on Tuesday during consultative committee meeting held at the provincial minister's conference hall, Oyati who is also chairperson for culture, said the party could not afford to have divisions especially in a place like Mongu where there were 'a lot of problems with 'other issues, the other side'.
"Politically, we are not stable, the party is not. On the other hand, we have a lot of problems here in the province and for you secretary general, you are the only person who can really unite us. I can tell you that somehow, the province or the party is a bit divided and we cannot have divisions in the party especially here in Mongu ... We need to be united as a party, but if we are divided it becomes a problem," Oyati said.
Oyati also said the province was too vast and the party was in need of transport in order for it to mobilise members.
"As PF we won not that most of the people were PF, no! We won because people wanted change and out of that change that we have put in, it is better to capitalise on it, to make sure that those who voted for us they don't go back," she said.
In response, Kabimba asked the provincial executive committee to write a report which would be submitted to the Central Committee at its meeting on June 2.
Kabimba said in its report, the provincial committee should suggest remedies to the problems.
"There is a central committee meeting on June 2; I expect a report on this meeting through the provincial committee, which must be submitted, to give an idea to the central committee about the political situation in Western Province. Don't just give what the problem is, recommend what the remedies could be. We depend on your analysis of the situation because we are not here. But also don't exaggerate the situation," Kabimba said.
During the same meeting, Kabimba said the PF had taken a position not to empower its members using CEEC because it was just a corrupt institution that was set up by the MMD.
"We are trying to look for new methods of making sure that this citizen empowerment is fairly and equitably handled. You used to hear huge figures, you know about youth empowerment under MMD, I have not come across any youth that was empowered, it's zero. The chaps were just stealing money," he said.
Labels: CEEC, CORRUPTION, PF, WESTERN PROVINCE, WYNTER KABIMBA
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'CEEC spent K9.1bn without authority'
By Moses Kuwema
Thu 24 May 2012, 12:57 CAT
THE Citizens Economic Empowerment Commission (CEEC) spent a total of K9.1 billion on operational activities without seeking authority from the secretary to the treasury in 2010.
According to the Auditor General's report for 2010 on the accounts of parastatal bodies, the Commission received amounts totalling K21 billion for the empowerment fund.
"A scrutiny of the Commission's accounts receivable age analysis revealed that during the period under review, the Commission had outstanding loan repayments in amounts totalling K159,598,828,919.
However, it was observed that out of the total outstanding loan repayments, K144,085,055,180 which represented 81 per cent of the total receivables had been outstanding for a period exceeding 180 days," read the report.
The report also highlights a number of loans that the CEEC issued without valid collateral.
"On 19 November 2009, the Commission approved a loan of K2 billion to Lukwinu Investment, whose directors were Chikumbi Godfrey, Kapesa James and Kunda Sundie, for the purpose of infrastructure development to put a crushing plant and purchase of capital items including working capital support. However, contrary to CEEC guidelines, it was observed that the loan was issued without valid collateral," reads the report.
The report further adds that a review of the repayment documents revealed that Lukwinu had never made any repayments and this resulted into accumulated arrears in amounts totaling K440 million as of October 2011.
Other organisations that had outstanding loan arrears and repayments with the CEEC include Emmaloy Investment limited K421,564,688, Mwame Coach Services Limited, K428,905,759, Nellas Lodge K612,642,857 and Mutanda Leisure Resort K118,111,111.
Others are Hanshel Girls Secondary School, which accumulated arrears amounting to K164,592,302, Adonai Trading in Chililabombwe K216,250,000, Vengeance Hospitality K376,690,362 and Kechas General Dealers which as of October 2011 had accumulated arrears of K1,114,745,588.
The report further reveals that contrary to financial regulations No. 45 and 52, there were 35 payments in amounts totalling K183,288,963 that were inadequately supported in that they lacked supporting documents such as acquittal sheets, receipts, invoices and goods received notes.
During the period under review, the CEEC also procured goods and services in amounts totalling K102 million involving 17 transactions without obtaining the three competitive quotations.
The CEEC, without seeking authority from board, paid amounts totalling K104.6 million as talk time allowances to various members of staff who were not entitled.
The Commission also owed amounts totalling K10.3 in respect of statutory contributions.
Labels: AUDITOR GENERAL, CEEC
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ACC to probe corruption allegations at CEEC - Sichinga
By Gift Chanda
Tue 07 Feb. 2012, 13:01 CAT
THE Anti Corruption Commission has been engaged to probe corruption allegations at the Citizens Economic Empowerment Commission, commerce minister Robert Sichinga revealed yesterday. And Sichinga says funding to the Citizen Economic Fund (CEF) will remain suspended until the forensic audit by the Auditor General's office is concluded.
Briefing journalists on recent developments in Lusaka yesterday, Sichinga said after a review of the management of CEEC and its funding process, it had come to his attention that some of the officers in the commission were engaging in dubious activities.
He said the officers were asking for bribes before loans could be approved and released.
"In this regard I have invited the Anti Corruption Commission to examine the authenticity of these cases of corruption and ensure that we identify the officers concerned," Sichinga told journalists.
"I am not making a blanket statement of corruption in the CEEC…some of the officers may have been engaged in corrupt activities and for us to determine this, we have engaged the Anti Corruption Commission."
He said there would be nothing left unturned at the commission, adding that those found wanting would be prosecuted.
Sichinga further condemned the way CEEC was run under the MMD regime.
He said the policy weakness resulted in decisions on who gets the loans being driven by political expedience rather than prudent financial management considerations.
"The politicians were dictating what needed to be funded, how much should be funded and how it should be funded rather than business consideration," Sichinga said, adding that this led to poor loan performance levels.
He said to salvage the commission, funding would remain suspended until all necessary actions aimed at improving the loan recovery rate and the forensic audit are concluded.
Last week, Secretary to the Treasury Fredson Yamba told the Parliamentary Public Accounts Committee chaired by Chipangali member of parliament Vincent Mwale that funding to CEEC had been suspended in a move aimed at reorganising the institution.
Yamba, however, said the government would continue to give the CEEC funds for its day-to-day operations.
Sichinga disclosed the forensic audit to see how the funds were being disbursed was already underway.
Labels: ACC, CEEC, ROBERT SICHINGA
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Government ponders probing CEEC
By Kabanda Chulu
Wed 25 Jan. 2012, 13:59 CAT
GOVERNMENT is considering undertaking a forensic audit at the Citizens Economic Empowerment Commission where empowerment funds have been plundered, says commerce Permanent Secretary Stephen Mwansa.
Appearing before the parliamentary public accounts committee which is considering reports of the Auditor General for 2009 accounts, Mwansa said the previous management committed various offences ranging from failure to prepare financial statements, unretired imprest, and non-remittance of statutory contributions to failing to account for loan application forms amounting to billions of kwacha.
"We have now increased oversight through holding of regular meetings with the board and management and we have also established an audit committee to strengthen internal controls. And loan disbursements has been stopped until we resolve all outstanding issues," said Mwansa.
"We are also considering to carry out forensic audits and inform ZICA (Zambia Institute of Certified Accountants) about the conduct of Dean Chanda, who is the former finance director, because most financial irregularities were avoidable but it seems Chanda has unlimited powers to do whatever he did with the empowerment funds."
But committee chairman Vincent Mwale advised Mwansa to urgently change the way of operations and instill confidence in the Citizens Economic Empowerment Commission so that people could access loans.
"It is depressing to see that CEEC was run in a chaotic manner and instead of empowering people, the managers empowered themselves," said Mwale.
Bweengwa parliamentarian Highvie Hamududu said stiffer punishment must be imposed on culprits to deter current officers from engaging in similar activities.
Chinsali member of parliament Chris Mulenga said the government through the Ministry of Commerce was to blame for lacking oversight on operations of CEEC.
Chembe member of parliament Mwansa Mbulakulima said the massive looting that characterised CEEC operations should stop.
"It seems finance director Chanda was running the show and no one to control him because how can one explain the debt of K4 billion owed to ZRA and NAPSA, yet money was deducted from workers?" asked Mbulakulima.
Labels: CEEC, CORRUPTION, MWANSA MBULAKULIMA
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COMMENT - I don't know whether he has been quoted correctly, but Jack Mwiimbu sounds like an idiot. No one expects that the PF will 'tackle unemployment', whatever that means, in 3 months after being elected. Now if he wants to criticize the idea that the foreign mining companies are here to 'bring jobs' instead of generate the tax revenues by which jobs can actually get created (infrastrucgture, agriculture, manufacturing), then he has a point. However the UPND is also a neoliberal party, so...
PF has failed to tackle unemployment
TIME PUBLISHED - Saturday, December 17, 2011, 8:15 am
An opposition member of parliament has charged that the PF government has failed to tackle unemployment.
UPND’s Jack Mwimbu also said in Parliament that the PF’s promise of tackling many issues within 90 days have not born fruit.
He said with only six days before the 90 days of delivery comes to an end, many Zambians remain unemployed and the promises made in the campaign have not been met.
Mr Mwimbu said many people are unable to access the CEEC fund especially those in rural areas making it even more difficult for them to empower themselves.
[ZNBC]
Labels: CEEC, JACK MWIIMBU, UNEMPLOYMENT
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Lubinda expresses disappointment over 2011 budget
By Kombe Chimpinde
Mon 11 Oct. 2010, 14:01 CAT
KABWATA PF member of parliament Given Lubinda has the government has lost another opportunity to utilize its mineral resources to cover most of its national expenditure. And Lubinda described finance minister Dr Situtembeko Musokotwane ‘s 2011 budget after it was presented to parliament on Friday as disappointing.
“Dr Musokotwane had a very big problem writing that budget and had a big problem reading it because that budget is clearly a campaign budget,” Lubinda said. “To drive the campaign of Rupiah Banda in 2011 that’s the reason why you heard him struggling with the level of detail to which he was presenting the budget. However we have missed an opportunity of raising sufficient domestic resources to finance the huge expenditure they are intending to have in 2011.”
He said it was only logical to subject the country’s mining sector to appropriate taxation because it was the most productive sector at the moment.
“…the minister in one hand told us that the mining sector is doing extremely well producing the highest tonnage of copper in many years and yet shying away from taxing the mine. Now that is imprudent budgeting,” Lubinda said.
“And that’s the reason why you see that they have increased the amount of domestic borrowing. Financial borrowing will have a negative impact on our financial sector as it would crowd out the private sector. What more when they have also reduced the amount of money available for the Citizens Economic Empowerment Commission from K120 billion that was allocated last year to a meager K40 billion.”
He observed that the private sector was going to denied access to affordable funds.
“...in a nutshell it is a very disappointing budget. The sector is the one that is the most productive and the one which is remitting the highest turn instead they have decided to go and tax somewhere else,” said Lubinda.
Labels: 2011 BUDGET, CEEC, GIVEN LUBINDA, SITUMBEKO MUSOKOTWANE
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CEEC launches school’s Graduate Empowerment Programme
By Salim Dawood
Thu 05 Aug. 2010, 14:00 CAT
Citizen's Economic Empowerment Commission (CEEC) yesterday launched the Graduate Empowerment Programme at Lusaka’s Munali High School with a call on youths to explore entrepreneurship and self-employment.
The programme which is yet to be taken to other secondary schools and high learning institutions in the country is aiming to promote and cultivate an entrepreneurship culture and enhance business leadership skills in the youth.
And Ministry of Education permanent secretary Nalituba Mwale observed that many 90 per cent of the young people were unable to access the Citizens Economic Empowerment Fund (CEEF) because they were unable to meet the selection criteria.
Speaking during the launch, CEEC director general Mable Mung'omba encouraged young people to explore entrepreneurship and self-employment through the recognition and development of their inventive, critical thinking and problem-solving skills.
“The Programme will target TEVET Graduates and University to be graduates with the hope of assisting them in developing attributes and skills associated with entrepreneurs and leadership,” she said.
She said the Graduate Empowerment Programme was aimed at transforming the minds of young people in secondary schools and high learning institutions to prepare them to succeed in the entrepreneurial economy.
Mwale said for entrepreneurship to flourish people needed to cultivate transformed minds that can adopt innovative, self confidence, leadership skills and traits in adopting into an entrepreneurial culture.
She said government had developed policies, legal and legal frames to create an entrepreneurial environment.
“These developments have resulted in a considerable increase in the number of people registering business and accessing credit, including the Citizen's Economic Empowerment Fund.,” she said.
Mwale said the funds extended to lending institutions including the Citizen's Economic Empowerment Fund were targeted at individuals with knowledge of the undertaking entrepreneurship.
“From the type of the CEEF Proposals submitted by the youth, more than 90 per cent do not match the selection criteria. This has been exacerbated by the inability of the entrepreneurs and youth in particular to articulate and sell bankable projects through robust plans,” she observed.
Mwale said in most instances, youth have not been able to find formal employment because of the inability of the job market to create sufficient jobs to absorb these new entrants.
“The Graduate Empowerment Programme is one such programme that has been created to help and prepare the youth get but viable employment opportunities,” said Mwale.
And Munali Boys High Head teacher Cyrus Chikanta said the school was grateful that CEEC chose to launch the programme at his school.
“We will harness it and make sure it is a success he said,” said Chikanta.
Labels: CEEC, TEVETA
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Women's body seeks K1bn loan from CEEC for sub-lending
By Florence Bupe
Wed 14 July 2010, 15:30 CAT
THE Zambia Federation of Associations of Women in Business (ZFAWIB) has applied for a K1 billion loan under the Citizens Economic Empowerment Commission (CEEC) for the purpose of sub-lending to women entrepreneurs.
ZFAWIB chairperson Christine Mulundika disclosed that her organisation had already drafted a proposal to the CEEC for the loan facility to help ease women entrepreneurs’ access to funds.
She said limited access to funds for business purposes was still a major hindrance to the development of most women entrepreneurs in the country.
“We have been having hitches in accessing funds as women entrepreneurs and we have written a proposal to the CEEC to give us money which we will be able to sub- lend to members of our association. We are looking at an initial amount of K1 billion,” she said.
Mulundika said ZFAWIB was partnering with banks to educate women entrepreneurs on prudent financial management and business proposal writing skills.
“We are currently working with Stanchart (Standard Chartered Bank) to train about 130 women in writing business plans and proposals and we would like to urge other banks to partner with us to empower our women for economic development,” she said.
Mulundika urged Zambian women to grow out of cultural beliefs that border on dependence on men and venture into programmes that would make them self reliant.
She observed that the rate of widowed women was increasing, hence the urgent need for women to be enterprising for their sustenance in the event of their spouses’ death.
Mulundika called on lending institutions to support women in ZFAWIB and assured that members would always pay back loans.
ZFAWIB is a country level non-governmental organisation spearheaded by the International Labour Organisation (ILO) aimed at promoting women’s entrepreneurial activities in all sectors of the economy.
The organisation has earmarked September this year to honour excelling Zambian women entrepreneurs under the theme “Women Entrepreneurs: Creating Employment amid the Global Economic Crisis”.
Labels: CEEC, ZFAWIB
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Use empowerment funds to improve livelihoods, CEEC challenges Zambians
By Kabanda Chulu in Kitwe
Thu 01 Apr. 2010, 04:00 CAT
CEEC director general Mable Mungomba has challenged Zambians to use empowerment funds as a catalyst to improve their livelihoods through embarking on economically viable projects.
And Copperbelt Permanent Secretary Villie Lombanya has advised people in his province to take advantage of the Citizens Economic Empowerment Commission (CEEC) and realise that not only the mines can provide ‘three meals a day’ on the table.
During a stakeholder consultative meeting with Fisenge Dairy Farmers’ Cooperatives to see how CEEC could finance some of the projects being undertaken, Mungomba said the Commission was considering a three way business model that would result in increased productivity of dairy herd as well as increasing production of horticulture crops and fodder.
She said the CEEC funded three way-business model would aim at increasing Fisenge dairy farmers’ productivity to include full utilisation of their farm areas by involving crop production as well as growing animal foodstuff throughout the year.
Mungomba said people should start looking at empowerment in a broader way.
“The model we want to implement in Fisenge is workable and it will change the lives of many people since already these farmers are doing it and CEEC should just be used as a catalyst to improve on what they are doing through implementing economically viable projects,” said Mungomba.
“We have realised that there is need to have animals that can be able to produce on average of 20 litres of milk per day and we shall go flat out to search for these required breeds and also farmers don’t get higher yields because their farms are not mechanised hence we shall partner with Saro Agro to supply irrigation equipment and Amiran Limited to help provide extension services when implementing the three way business model for Fisenge Dairy.”
And commissioning the Mukuba Breweries plant in Kitwe, Commerce Deputy Minister Lwipa Puma said CEEC was not a social fund.
“It is given out with a view that people pay back. It is a revolving fund and government would like to see CEEC to be self-reliant through those loans that will be paid back,” said Dr Puma.
And Lombanya said there was need as a country to move away from metal-based economy.
“… Let us think of things to do and not just queue at the mine’s offices. People should take advantage of the CEEC funds and implement workable projects,” said Lombanya.
Mukuba Breweries got K480 million from the CEEC as part of its working capital after facing problems in starting production following the acquisition of plant machinery.
Labels: CEEC, MABLE MUNG'OMBA, VILLIE LOMBANYA
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Address high cost of doing business, Zam Tells govt
By Kabanda Chulu in Kitwe
Tue 23 Mar. 2010, 04:01 CAT
ZAMBIA Association of Manufacturers (ZAM) has challenged the government to urgently address the high cost of doing business so that local industries are not jeopardised through the flooding of cheaper imported products under the free trade regional integration markets.
And ZAM chief executive officer Roseta Mwape has advised the government to reinstate the 25 per cent duty that has been reduced on imported finished products under the common external tariff (CET) for the COMESA Customs Union.
But commerce and trade minister Felix Mutati said the government is ready for continuous dialogue with all stakeholders to address their concerns.
In an interview last week, ZAM vice president for the northern region Eugene Appel said the coming of CK regional markets would result in mass production of goods that would see Zambian producers disadvantaged due to the high cost of borrowing that hindered their capacity to expand.
“Producers exporting into Zambia borrow funds at lower interest rates in their countries hence whatever they produce will be cheaper so our goods will not compete favourably and this will negatively affect local industries,” Appel said. “So government should urgently address the high cost of doing business in the country otherwise benefits of regional integrations will by-pass us just because we cannot borrow to invest and expand since interest rates are too high.”
He said the Citizens Economic Empowerment Commission’s financing to Kechas General Dealers for iron sheet manufacturing was a good initiative that would result in a positive impact on the economy.
“But this financing facility should be done on a large scale and we need to see such financing being available to many projects because it shows that economic development is possible when funds are readily available,” Appel said.
He said it was encouraging to see the government talking about joint ventures with foreign investors especially those from the Asian block.
“But this has not materialised into actual and meaningful partnership because certain mechanisms are not in place hence government should ensure that guidelines are there and should be implemented,” said Appel.
Mwape said ZAM would like the government through the Ministry of Commerce, Trade and Industry to consult widely on all products manufactured in the country so that the manufacturing sector was not disadvantaged following the launch of the Common Market for Eastern and Southern Africa (COMESA) Customs Union.
She said Zambia had a low manufacturing base that needed to be revamped to facilitate and promote competitive industries on the local market.
“In addition, promotion of value addition to primary goods and transfer of appropriate technology is instrumental to increased productivity and competitiveness especially with the advent of the COMESA Customs Union and the Economic Partnership Agreements (EPAs),” Mwape said.
“But the removal of duties on products has affected the performance of local manufacturers and we implore government to reinstate the 25 per cent duty on finished products for those that have been reduced under the CET for the Customs Union.”
She said COMESA was offering a large market that Zambia lacked as a country, but that there was need to identify products that could be sold under the Customs Union.
“There is need for an aggressive programme on export facilitation since currently there is a lot of red tape bureaucracy in exporting and this has led to most products being manufactured to be consumed locally with very few exports and with the coming of the Customs Union under COMESA and the planned SADC Customs Union, the onus is on us to identify products that we can sell since value addition is key to diversification from raw copper,” Mwape said.
She further said there was need for deliberate policies to promote partnerships that could be split between local and foreign investors.
Mwape proposed that the government should put in place deliberate policies to promote partnerships that would encourage more local shareholding than foreign ownership.
“The main problem we have in the manufacturing sector is that there is no direct policy that spells out how the sector should operate and how market access for industries whether locally or abroad should be addressed hence the need to have deliberate policies to promote partnerships which should be split 70 and 30 per cent for the local and foreign investor respectively,” said Mwape.
“We are calling on government to seal the existing loopholes in the current policy so as to protect the local industries and that majority shareholding should be by local Zambian companies.”
But Mutati said the government was addressing various concerns from many stakeholders and continuous dialogue was important.
He said it was important for stakeholders to engage the government on national issues and challenges facing the people.
“We cannot be left behind on economic issues about world trade because if we do not participate we are going to sink as a country but we are addressing those issues so that we can also enter into trade agreements that will benefit us as a country,” said Mutati.
Labels: CEEC, FELIX MUTATI, ROSETA MWAPE, ZAM
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Former MP accuses MMD of politicising CEEC funds
By Christopher Miti in Chipata
Tue 16 Mar. 2010, 03:00 CAT
FORMER Chipangali member of parliament Lucas Phiri has accused the MMD of politicising the Citizens Economic Empowerment Commission (CEEC) funds. In an interview over the weekend Phiri, who is also Patriotic Front (PF) member of the central committee, said the MMD had abused the CEEC which had good intentions.
“You know the Constituency Development Fund is continuously abused by the MMD because they involve cadres who later on politicize it.
Now there is CEEC which is also politicised. Most of the beneficiaries of this funding are MMD women clubs and some MPs’ wives are busy controlling everything," Phiri said.
He advised the people who wanted to apply for CEEC funds to do so without political interference.
"You should not be cheated by MMD that no...you can be given money because of the MP or because of MMD, no. That money is supposed to be given to people who want to help themselves and pay back without looking at the face of a politician or whatsoever.
MMD wants to mislead you on this point," said Phiri. “What MMD is doing here in Eastern Province, here in Chipata they go to Mchini compound, Nabvutika compound, going to our villages and cheat people that MMD has set aside funds for women clubs or the youths, that's a blue lie.
These monies are for everybody but if what is happening continues we are going to ask donors to stop funding the CEEC until after the elections next year when there is change of government.”
Labels: CEEC, CORRUPTION, LUCAS PHIRI
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Indigenisation regulations take effect
by Lebo Nkatazo
02/03/2010 00:00:00
A NEW law requiring “indigenous Zimbabweans” to take 51 percent shareholding in major foreign firms came into effect on Tuesday as a minister warned there was “no going back” on the controversial policy.
The Indigenisation and Economic Empowerment Regulations have caused a split in the unity government of President Robert Mugabe and former opposition rivals, Prime Minister Morgan Tsvangirai and Deputy PM Arthur Mutambara. Tsvangirai describes the policy as “dangerous” and claims he was not shown the regulations before they were gazetted.
“They were published without due process as detailed in the constitution and are therefore null and void,” Tsvangirai said two weeks ago.
But on Tuesday, Indigenisation Minister Savior Kasukuwere, a member of Mugabe's Zanu PF party, said: “The regulations are already in place. There is no going back.”
The regulations require all existing businesses with assets valued over US$500,000 to declare their shareholding status to the government within 45 days from March 1.
New enterprises would be required to do so within 60 days. Businesses that fail to meet the 51 percent shareholding are required to submit a plan within 45 days from March 1 on how they intend to meet the requirements.
The regulations give effect to the Indigenisation and Economic Empowerment Act passed by parliament in March 2008.
Labour unions and economists are warning that the new regulations will hurt the country’s chances of attracting critical foreign investment, an argument dismissed by Mugabe over the weekend.
"Our indigenisation policy, like the land reform programme, is meant to correct historical imbalances in the ownership of our resources," Mugabe said last Saturday.
Labels: BEE, CEEC, INDIGENIZATION AND EMPOWERMENT ACT (ZIMBABWE), SAVIOUR KASUKUWERE
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Mufumbwe DC lauds CEEC initiative to promote development
By David Chongo in Solwezi
Sun 28 Feb. 2010, 03:20 CAT
MUFUMBWE District Commissioner Robert Muyutu has welcomed the initiative by the Citizens Economic Empowerment Commission (CEEC) to promote the development of service stations in rural areas by providing funds for the establishment of a service station in the district.
He said the economy of Mufumbwe had been adversely affected by the lack of a permanent filling station leading to many consumers obtaining the fuel commodities from the black market some of whom he said were supplying contaminated stock.
“It’s a welcome idea. It’s a good business arrangement and I think Mufumbwe is a good business place also. It will lessen carrying of fuel in bountiful containers. It will also stop the black market where we have been getting a lot of impurities,” he said.
Muyutu said Mufumbwe, like most districts in the province was relying on fuel supplies from Solwezi which had led to a proliferation of illegal dealers.
“They have to fetch fuel from Solwezi. It’s good setting up service station in Mufumbwe because we are adversely affected in Mufumbwe. We rely on illegal dealers of fuel. It comes in containers, which means it may even be contaminated. That’s not good for vehicles,” he said.
And YamBEEji Honey and Rice Products Limited chief executive officer, Chibbonta Chilala has commended the idea, saying the setting up of such stations would likely reduce the pump price of fuel in Zambezi and encourage mobility and raise the economic status of the district.
“I feel it’s a very good idea. This is so because currently fuel is very expensive from the black market. Petrol is K12,000 per litre. Most diesel engines have packed due to bad fuel (from illegal market),” said Chilala.
The CEEC has developed a project which is aiming to promote rural development through the promotion of investment in rural service stations in fuel deficit areas of Zambia by establishing mobile, new fixed stations or rehabilitation of existing dry service stations.
Mufumbwe is one of 17 fuel deficit areas that have been identified by the CEEC countrywide together with Mwinilunga, Kabompo and Zambezi, in North Western Province, which has the second highest number of such locations after Northern Province with five districts.
Labels: CEEC, ROBERT MUYUTU
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Don’t be used by foreigners in accessing CEEC funds - Solwezi DC
By Kabanda Chulu in Solwezi
Sat 20 Feb. 2010, 03:00 CAT
SOLWEZI District commissioner Frobisher Fulayi has warned Zambians not be used as ‘fronts’ by foreigners in accessing funds from the Citizen Economic Empowerment Commission (CEEC).
And CEEC director general Mable Mung’omba has advised people accessing the empowerment fund to stay focused since business success does not happen overnight.
During commissioning and monitoring of various projects funded by the CEEC on Thursday, Fulayi said the funds were aimed at reducing poverty levels in the country as well as giving people an opportunity to enhance their livelihoods.
“We challenge people to take advantage of these funds and explore the immense potential which this province has in terms of natural resources and the growth in mining activities is giving an opportunity for other sectors to grow such as supplying goods and also skills training like schools,” Fulayi said.
“CEEC will continue developing various products so that the funds go in the right direction of empowering citizens but we are warning people not to be used as fronts by foreigners to access these funds. We are not against joint ventures but people should be careful to avoid being pushed out after accessing the funds and companies become successful.”
And Mung’omba said sticking to a business plan was important in any business environment.
“Some people are struggling to pay back the loans because they are busy diverting money obtained from CEEC to invest in something they wrongly think that will make quick returns for them to pay back,” Mung’omba said.
“But put money on a project you intend to do and stay focused because business success does not happen overnight and we are advising people to stick to their business plans. For example, others when they hear that it is lucrative to trade in goats in the DR Congo they want to go there.
If they hear that rice business is booming in Angola, they want to get there but businesses should not be run like this since things do not happen this way.”
She commended the proprietors of Hanshel Girls High School which got K617 million and Sunrise Milling which got K243 million, for showing commitment and determination to implement their projects.
“They have showed clear demonstration and commitment and their repayments are on track and we will not have reasons to say no when they ask for more funds to expand since they have shown commitment and we only gave them working capital because they already had established structures,” said Mung’omba.
Out of the K10 billion budgetary allocations to the North Western Province, the CEEC has disbursed about K5 billion to finance 19 projects, which Mung’omba and her team are now monitoring and commissioning.
Labels: CEEC, MABLE MUNG'OMBA
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Mung’omba clarifies issuessurrounding CEEC funds
By Kabanda Chulu in Mwinilunga
Thu 18 Feb. 2010, 09:10 CAT
CITIZEN Economic Empowerment Commission (CEEC) Director General Mable Mungomba has said there is need to change the wrong perception that the Commission only funds projects that have collateral such as physical assets.
Addressing Mwinilunga residents on Tuesday on the possibility of funding local people to revive the pineapple cannery and factory, Mungomba said CEEC funds were development focused aimed at capacity building to result in ownership and empowerment.
The once vibrant pineapple cannery has been vandalised with no existing structures in place. Mungomba explained that disbursing citizen’s empowerment funds were like a learning curve and not every beneficiary would succeed at the first instance.
“There has been a communication breakdown because when we ask about collateral, we are not asking for a house since we are not like a bank and this perception about empowerment funds should be corrected especially that some people get scared when they hear about loans and certain conditions,” Mungomba said.
“The collateral we want is your bankable business proposal because if we go ahead to fund a plan which is not bankable then we are creating space for that person to fail since CEEC is not just about funding but we need to create skills development and capacity building hence empowerment. For example, if you want a tractor, CEEC can buy it without asking for anything but how you intend to use that equipment and it becomes yours after loan repayment.”
Labels: CEEC, MABLE MUNG'OMBA
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Magande expresses concern over empowerment programmes
By Florence Bupe
Thu 18 Feb. 2010, 08:50 CAT
NG’ANDU Magande has expressed concern at the implementation of empowerment programmes in the country. Magande, who is former finance minister, said the current system of disbursing empowerment facilities was inefficient and needed to be revised. He charged that institutions mandated to empower citizens, such as the Citizens Economic Empowerment Commission (CEEC), need a facelift to make them more effective.
“We need to have a review of the current empowerment programmes if we are to meaningfully reduce poverty levels in the country,” Magande said. “The CEEC in its current form is a mockery and there is need to revise the implementation of the programme.”
Magande lamented that poverty had become a trend in Zambia, despite the country’s vast resources.
He called for a change of mindset among citizens and challenged civil society organisation to spearhead this change.
“Back in the days, problems like those of street kids were unheard of. Now it has become a norm, and most of the problems we are facing are linked to the high poverty levels,” Magande said. “Something has just gone wrong with us and we seriously need to address it. It appears that poverty has become fashionable and we have accepted it that way.”
Magande said Zambia could only register meaningful and sustainable development if she reduced her dependence on foreign aid.
He urged all stakeholders involved in the drafting and implementation of the Sixth National Development Plan (SNDP) to ensure that it focuses on strengthening local investment as opposed to reliance on foreign handouts.
Magande further emphasised the importance of women empowerment under the next national development plan scheduled to run from 2011 to 2016.
Labels: CEEC, MAGANDE
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Irrigation can raise farmers’ income by 500% - ZNFU
By Mutale Kapekele
Tue 16 Feb. 2010, 04:00 CAT
LOCAL farmers will increase their incomes by 500 per cent if they build irrigation systems, a senior official of the Zambia National Farmers Union (ZNFU) has said.
ZNFU head of outreach member services Coillard Hamusimbi said
if farmers could build irrigation systems and produce crops like tomato and green maize all year round, their incomes would greatly improve.
“If a farmer grows tomatoes all year round by building irrigation systems, they will have 500 per cent more income than when they depend on rain,” Hamusimbi said. “If they grow green maize, they will have 250 per cent more income than when they sell dry maize.”
He said irrigation farming would guarantee food security and improve household incomes for many small-scale farmers. He also disclosed that ZNFU has partnered with Citizens Economic Empowerment Commission (CEEC) to help local farmers access funds to build irrigation systems.
Hamusimbi said following the collapse of the Irrigation Development Fund (IDF), which the government set up in 2007, farmers in the country had problems in writing proper business proposals, which would enable them to access funds from CEEC.
“We didn’t want to make farmers special when it comes to the CEEC funds,” Hamusimbi said.
“They have to follow CEEC guidelines. We noticed that proposals from our farmers to the CEEC were taking long to be reviewed and accessed, so we agreed to work with CEEC and they have written to us and as we speak, a technical committee is being instituted to specifically look at irrigation projects.”
He said the committee would include officials from the ministry of agriculture, ZNFU, CEEC and the private sector.
Hamusimbi said the move would help farmers to come up with viable irrigation projects and the committee would also help farmers to focus on production and marketing of their produce.
“As a union ZNFU, we will filter potential projects and this will help to ensure that irrigation projects are part of those that the CEEC will give money,” he said.
“The committee will evaluate and select projects before they are passed on. This will not just help improve the quality of projects but also increase on the number of farmers applying because now they will have people to assist them with the paper work which has kept most of them from applying for funds from the CEEC.”
He said ZNFU would use its local structures in the districts to identify farmers that had potential for irrigation projects.
Hamusimbi also urged farmers to be business minded if they were to progress from small scale to commercial farmers.
“If the CEEC defied business projects just to accommodate farmers who were not business minded, then they will fail,” he said.
“If a farmer is business minded and they are given funds for irrigation, immediately the benefits will be seen because their production will improve and their marketing as well because they will not just irrigate but also find the market.”
Hamusimbi said this needs to improve as many small- scale farmers lived in areas where there were plenty of water sources.
“Empowering the small scale farmer with irrigation will greatly improve farming in general and reduce our country’s poverty to minimum levels,” said Hamusimbi. “As a union we can’t wait to see that day!”
The multi million US dollar IDF was introduced in 2007 to improve productivity of the farmers but was later moved to the CEEC after the formation of the commission.
Labels: CEEC, COILLARD HAMUSIMBI, IRRIGATION, ZNFU
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ZAM urges govt to protect local industries
By Kabanda Chulu in Kitwe
Sat 13 Feb. 2010, 04:00 CAT
ZAMBIA Association of Manufacturers (ZAM) yesterday challenged the government to urgently address the high cost of doing business so that local industries are not jeopardised through the flooding of cheaper imported products under the free trade regional integration markets.
And ZAM vice-president for the Northern Region Eugene Appel has said there is need for mechanisms to ensure that proposed joint ventures with foreign entities result into meaningful partnerships.
In an interview in Kitwe, Appel said the coming of regional markets would result in mass production of goods that would see Zambian producers disadvantaged due to the high cost of borrowing that hinders their capacity to expand.
“Producers exporting into Zambia borrow funds at lower interest rates in their countries hence whatever they produce will be cheaper so our goods will not compete favourably and this will negatively affect local industries,” Appel said.
“So government should urgently address the high cost of doing business in the country otherwise benefits of regional integrations will bypass us just because we cannot borrow to invest and expand since interest rates are too high.”
He said the Citizens Economic Empowerment Commission’s financing to Kechas General Dealers for Iron sheet manufacturing was a good initiative that would result in a positive impact on the economy.
“But this financing facility should be done on a large scale and we need to see such financing being available to many projects because it shows that economic development is possible when funds are readily available,” Appel said.
He said it was encouraging to see government talking about joint ventures with foreign investors especially those from the Asian block.
“But this has not materialised into actual and meaningful partnership because certain mechanism are not in place hence government should ensure that guidelines are there and should be implemented,” said Appel.
Labels: CEEC, EUGENE APPEL, MANUFACTURING, ZAMBIA ASSOCIATION OF MANUFACTURERS
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Lip servicing to agriculture
By Editor
Wed 10 Feb. 2010, 04:00 CAT
AGRICULTURE still remains a very important part of our country’s economic development and food security.
Not only does agriculture tend to feed the entire population, it correlates and interacts with other related industries. A country is actually socially and politically stable with the availability of food. We have always said food security is a key requirement and no nation can effectively grow with a stable agricultural base while harbouring an army of hungry people.
Over the years, there have been many pronouncements from the government on developing the agriculture sector. In last year’s budget, finance minister Dr Situmbeko Musokotwane emphasised the need to build on various economic diversification programmes, which the government had pursued over the years.
Dr Musokotwane said the development of agriculture was one of the main pillars of the country’s poverty reduction programmes especially in rural areas. This year’s K16.7 trillion budget also hinges on enhancing growth through competitiveness and diversification and the government actually increased the allocation to the agriculture and livestock sectors to K1.139 trillion from last year’s K1.096 trillion.
However, all these allocations and pronouncements will not help the agriculture sector if some of the challenges faced by our farmers are not addressed. That is why we agree with the observation by Pemba UPND member of parliament David Matongo that the difficulty with implementing our country’s agriculture policy from theory is precisely the reason we are still a food deficit country. Matongo has touched on many areas such as the inputs distributions, reliance on rain-fed agriculture and animal diseases as some issues that need serious evaluation and reflection. We cannot agree with him more.
The country’s low performance in the agriculture sector is partly attributed to the high cost of inputs and the government has not made things any easier for our people. We are aware that the government has introduced the Farmer Input Support Programme (FISP), which now provides 200,000 farmers with cheap fertiliser. However, this country has other farmers who are not on that programme who still need affordable farming inputs. The government has neglected the Nitrogen Chemicals of Zambia (NCZ), a company that could have helped the country with cheaper and readily available fertiliser to encourage more people to get into the agriculture sector.
In any case, the government spends half of the budgetary allocation to the agriculture sector on the FISP, which runs on imported fertiliser and yet NCZ needs far much less than this amount of money to be up and running. The reason for this is not difficult to understand when one critically examines who is involved in the importation of fertilisers and the benefits that go into their pockets.
Apart from the problem of inputs, the agriculture sector is affected by limited access to credit, inadequate infrastructure and extension services. We are aware that over 1,700 extension workers were recruited in 2008 and money was last year allocated for procurement of motorbikes and bicycles as well as construction of staff houses. However, farmers in rural areas still lack proper extension services for them to be able to run their farms effectively and ensure a meaningful yield without expert help.
The livestock sector has also suffered severely due to poor management and unending animal diseases which have almost become a perennial phenomenon. We are aware that the government has created a separate ministry specifically for livestock and fisheries and we hope this will help the sector, which has suffered numerous setbacks with farmers in Southern and Western provinces losing most of their animals. We have over the years continued to depend on imported vaccines and there is no talk of establishing a strong local livestock back-up vaccine production plant yet as a long-term solution to the problem of animal diseases. We still lack routine surveillance exercises which can help identify potential outbreak areas before an actual outbreak unlike in countries like Botswana where livestock disease control strategies are a general knowledge to every traveler and screening points are applied to all parts of the country whether there is an outbreak or not.
The country, in its quest to curb animal diseases, has also not taken advantage of the OIE terrestrial code that provides principles for the application of zoning and regionalisation in the control of infectious diseases based on sound risk assessments rather than risk avoidance.
These principles recognise that factors such as physical and geographical barriers and epidemiological considerations relevant to a particular disease are more appropriate mechanisms for defining areas from animal movement restriction or control. We do not even know how much local research has been applied in the epidemiological investigations of diseases that frequently break out in the country. What the country needs is a common voice and purpose of action that will save the beleaguered livestock industry.
There has also been a lot of concern about rain-fed agriculture and there have been calls for government to help promote irrigation. An irrigation fund was set up and it is now being managed by the Citizens Economic Empowerment Commission. We do not know how much has been done to promote irrigation and the matter will only be heavily debated when the country faces a drought.
The marketing system of farming produce is another area that still needs to be addressed to ensure that our farmers are given a just return for their labour. Those who grow our tomatoes, cabbages and other vegetables and fruits often have to endure the pain of seeing them rot due to lack of market.
These challenges in the agriculture sector actually make the industry very unattractive to private investment. As long as these issues are not addressed, we will continue to talk about developing our agriculture sector for many years to come instead of focusing on another sector.
Agriculture is the mainstay of the rural people and they need affordable inputs for them to be able to produce food for sale and consumption. Agriculture is also a critical component in the country’s efforts to reduce poverty and if the government wants to reduce the poverty levels further from the current 64 per cent, they need to pay special attention to this sector.
We have difficulties understanding the government’s commitment to growing the country’s economy because at times their pronouncements do not tally with their actions. In countries where agricultural productivity has risen, the fastest rates of economic growth have occurred. Actually, we need to understand that an increase in agricultural yields could go a long way in reducing the number of people currently living below the poverty datum line. Arguably, hunger and food insecurity have many causes often outside agriculture but it remains a vital contributor to national household food security.
Undoubtedly, food security is central to the country’s economic, political and social future and meeting the basic food needs of our people must be top priority in our government planning. Hunger is a sign of gross injustice and a block to development. We need to pay serious attention to our agriculture sector.
Labels: AGRICULTURE, CEEC, FISP, HUNGER, IRRIGATION
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Mutati castigates provincial PSs over CEEC-funded projects
By Florence Bupe
Wed 03 Feb. 2010, 04:00 CAT
COMMERCE minister Felix Mutati has castigated provincial permanent secretaries for not taking keen interest in projects funded by the CEEC in their respective areas.
Speaking during a consultative meeting between provincial permanent secretaries and the Citizens Economic Empowerment Commission in Chisamba on Monday, Mutati challenged permanent secretaries to be in the forefront of promoting developmental projects in their areas.
“In some cases, you find that controlling officers don’t even know what to tell their people when they inquire about the activities of the CEEC because they have chosen to remain spectators instead of partners in implementation,” he said.
The two-day consultative meeting has drawn permanent secretaries from all the nine provinces and other participants from the CEEC.
Mutati urged the participants to come up with a performance review method to ensure that they are on track in implementing government development programmes.
“You need to come up with a method of carrying out independent performance reviews to enhance ownership of developmental programmes,” Mutati said. “There is need for controlling officers to change their mindset.”
Since the inception of the CEEC, about 3,500 funding applications were received, of which 352 have been approved with a total disbursement of K136 billion.
And CEEC chairperson Jacob Sikazwe said there is need to develop a culture of support for local entrepreneurs.
“We need to inculcate a supportive culture for local entrepreneurship development. We need good political and corporate governance to promote a transparent and viable entrepreneurship base,” he said.
Sikazwe said Zambia had been manipulated by foreign investors and advised that the only way the country was going to achieve sustainable development was through enhancement of local entrepreneurship.
Labels: CEEC, FELIX MUTATI, PERMANENT SECRETARIES
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