NCC chairman bemoans erratic funding
By Ernest Chanda
Thu 12 Aug. 2010, 04:00 CAT
NATIONAL Constitutional Conference (NCC) chairperson Chifumu Banda has lamented erratic funding to the constitution-making process.
Officially opening the NCC’s final plenary sitting at Mulungushi International Conference Centre in Lusaka on Tuesday, Banda said inadequate and untimely funding had led to the NCC excluding certain activities.
He said the NCC could not go round the country to collect people’s views on the draft constitution because of poor funding.
“Members may wish to know that the funding situation is still critical. It is for this reason that the final stages in the constitution-making process have had to be revised to exclude certain activities such as the collection of views from members of the public in all the seventy three (73) districts of Zambia,” Banda said.
“In the same vein, this session of the Conference will be held for four (4) days only from today Tuesday, 10th to Friday 13th August 2010…. This time around we do not have the luxury of time or financial resources in the face of the 31st August, 2010 deadline when the National Constitutional Conference will stand dissolved.”
Banda urged delegates to be focused and work diligently in view of the limited time and funds. He further pledged the NCC commitment to help the government deliver a new constitution before neat year's general election.
“The NCC is determined to make its contribution towards ensuring that the government delivers the new constitution to the people of Zambia before the 2011 general elections.
So far, our determination to deliver on our mandate has been demonstrated by the speedy pace at which we as members of the NCC have worked to meet all our deadlines despite the numerous challenges,” said Banda.
“It is important to note that the input of the public at large is crucial for the final conclusion of the constitution-making process and the consequent realisation of a truly people’s constitution.”
Labels: CHIFUMU BANDA, FUNDING, NCC
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Govt unable to finance important sectors
February 17, 2009
The Zambian government may not be able to raise enough revenue to adequately finance important sectors like roads because of the global economic down turn.
Works and Supply Minister, Mike Mulongoti, says funds for the construction of roads in the country will mostly cover on-going projects.
Mr. Mulongoti says this will be done in order to record meaningful progress particularly on government funded projects.
The Minister was speaking in Lusaka during the sensitization workshop for members of parliament.
The workshop, which was organised by the Road Development Agency (RDA), discussed the investments made and required in the road sector.
And RDA Board chairperson, Walusiku Lisulo, also emphasised the need to prioritise on-going projects.
Mr. Lisulo said only few projects will be undertaken this year to allow successful implementation.
[ZNBC]
Labels: FUNDING, GREAT DEPRESSION II, INFRASTRUCTURE, MIKE MULONGOTI, RDA, WALUSIKU LISULO
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EIB lends 20m euros to local banks for SMEs
Written by Fridah Zinyama
Thursday, November 27, 2008 11:58:35 AM
(EIB) is lending 20 million euros to five commercial banks in Zambia to support investments by small and medium scale enterprises (SMEs).
And commerce minister Felix Mutati said Zambia needs a stimulus plan to address the financial effects of the credit crunch that the international market is experiencing.
Meanwhile, Investrust Bank managing director Friday Ndhlovu has commended the European Investment Bank for providing finances to five commercial banks in Zambia as liquidity had become a major constraint in the banking sector worldwide.
The five commercial banks that would benefit from the financing agreement with EIB are Standard Chartered Bank, Stanbic Bank, Finance Bank, Investrust Bank and Africa Banking Corporation.
During the signing of the financing agreement between EIB and the five commercial banks in Lusaka yesterday, EIB Head of the Southern Africa and Indian Ocean Division, Serge Klumper, said the loan would have an important developmental impact on Zambia as it would encourage growth in the private sector.
“Accessing long term finance has been a major challenge for most of the SMEs in the country and we hope that funds that EIB is loaning to the five commercial banks will go a long way in improving the situation,” he said. “We have decided not to set the interest at which the banks will pay back the loans because experience has taught us that it makes it difficult for them to pay back the loans.”
Klupmer said the loans were being provided at very competitive interest rates and were meant for long term financing which goes up to ten years.
“Most importantly, these funds will go towards diversifying Zambia’s economy which is highly dependent on copper and will create jobs for local communities across Zambia,” said Klupmer. “This project is also supported by the Zambian government and will be used to finance investments by small companies from a wide range of sectors including industry, agriculture, tourism and infrastructure.”
And Mutati said the funds would go towards Zambia’s stimulus plan which needed to be urgently implemented because of the financial shock that the world was currently experiencing.
“As government, we would like to continue with policies that are going to ensure that a good business environment is created where business can be freely conducted,” said Mutati.
And Ndhlovu, who gave a vote of thanks on behalf of the five commercial banks, said the Zambian economy needed more funds for its continued growth.
“We are optimistic that the Zambian SMEs will greatly benefit as the funds come with favourable interest rates, longer repayment periods and the currency choice of disbursement to support export trade,” he said.
Ndhlovu said Zambia had for a long time not had access to long term financing, adding that the 20 million euros would therefore provide the much needed leverage for the growth of the SMEs.
Labels: EIB, FELIX MUTATI, FRIDAY NDHLOVU, FUNDING, INVESTRUST BANK PLC, SMEs
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CEEC to revise its strategy
November 24, 2008
The Citizens Economic Empowerment Commission (CEEC) is exploring various options to ensure that all citizens have access to the empowerment fund.
CEEC Director General Mable Mungomba told ZANIS in an interview in Lusaka today that the move has been necessitated by the absence of commercial banks in some districts to facilitate access and distribution of the funds.
Ms. Mungomba said some options so far discussed are the use of micro-finance institutions, District Councils and Postal services.
She explained that each avenue is being assessed for its merits adding that the Commission has since tasked a team of staff to travel to various districts without banks to make an on-the-ground assessment on the best and most efficient strategy for citizens’ access to the funds.
A financial inclusiveness survey undertaken by CEEF has revealed that 21 districts operate without banking services.
Ms. Mungomba’s was responding to reports that funds meant for Citizens Economic and Empowerment Commission (CEEC) for Chavuma District are lying idle at the Zambia National Commercial Bank in Solwezi because Chavuma District does not have a commercial bank to facilitate access and distribution of the funds.
Chavuma District Commissioner Frobisher Fulayi, who is also Chavuma District CEEC Chairman, recently launched a passionate appeal to the CEEC to review the system of accessing and distributing the funds as some districts lack commercial banks.
CEEC funds are presently accessed and distributed exclusively through commercial banks.
Categories: Economy
Labels: CEEC, CEEF, FUNDING
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Govt to start trust funds in mining communities
By Kabanda Chulu
Monday July 14, 2008 [04:00]
DEPUTY mines minister Maxwell Mwale has said the government will soon establish trust funds that will make mining companies contribute funds towards the sustainability of local communities. And the ministry of mines has granted a grace period of one year for the implementation of the new mines and minerals development Act that came into effect on 1 April 2008 in order to allow stakeholders to comply with new requirements. Mwale said the trust funds would be controlled and managed by the communities themselves.
"We are in the process of establishing community trust funds where mining companies will contribute towards the sustainability of the communities in which the mines operate from and these trust funds will be administered by the communities themselves," he said.
Mwale also said the government was currently improving laboratory facilities at the Mines Safety Department (MSD) in order to enhance efficiency and higher standards.
And director of mines in the Ministry of Mines Gerhad Kangamba stated that the new Act became law on April 1, 2008 but the government granted a transition period of one year from April 2008 to March 2009.
"During the transition period all holders of mining rights and non-mining rights and firms operating mineral analysis, geological or mining consultancies are expected to fully comply with the requirements of the new law," Kangamba stated. "And all holders of renewed licences that do not conform to the Act should resubmit fresh applications to comply with the new law by 1 April, 2009."
Amongst other provisions, the new Act would require that all holders of gemstone licences, mining licences and mineral processing licences obtain annual operating permits from the MSD, meaning that an entity could not operate even if it has a mining licence.
Also all mining rights for industrial minerals shall only be granted to citizens of Zambia and citizen-owned companies.
Other requirements would be that all small scale mining licences, including gemstone and prospecting permits shall only be granted to Zambian citizens and citizen-owned companies.
It is expected that all mining and non-mining rights granted under the repealed Act of 1995 shall cease to be valid by April 2009.
Labels: FUNDING, MINING
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ZDA plans to raise $100m for SMEs
By Fridah Zinyama
Tuesday June 17, 2008 [04:00]
ZAMBIA Development Agency-Exports Fund of Zambia managing director Glyne Michelo has said the agency hopes to raise K319 billion (US$ 100 million) in order to help the development of the Small and Medium Enterprises (SMEs) sector in the country. According to Michelo, once raised, the funds would help the SMEs sector which had been for a long time failing to access financial assistance.
“These funds will help the struggling SMEs to improve their packaging so that their products will be acceptable on the international market,” he said.
Michelo explained that ZDA had a role in promoting both new investments into Zambia and the diversification of productive economic sectors and exports of goods and services.
“Not only should we be working to maintain our overall competitiveness onexports but also endeavour to stimulate growth in other sectors that have potential to earn the country new streams of foreign exchange,” he said.
Michelo noted that the main impediment to the growth of the non-traditional sector and to more rapid socio-economic development as a whole, in the past, had been lack of access to affordable financing for small and medium enterprises engaged in the business of exporting and or supplying large export companies.
“With improved significant access to affordable finance, which the Exports Fund of Zambia will be aiming to do through ultimately raising US$ 100 million for the sector, we expect fostering growth of our non-traditional export contributions to both foreign exchange and GDP growth,” said Michelo.
Labels: FUNDING, PACKAGING, SMEs, ZDA
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Govt seeks funds for Zesco's new projects
By Chiwoyu Sinyangwe
Sunday June 15, 2008 [04:00]
GOVERNMENT is seeking to contract new non-concessional external borrowing of about US$450 million (about K1.4 trillion) needed for Zesco’s implementation of new projects to expand electricity generation facilities. And the government has committed itself to paying all debts owed to Zesco by public institutions by the end of this year.
According to the Letter Of Intent dated May 7, 2008 written by finance minister Ng’andu Magande addressed to International Monetary Fund (IMF) managing director Dominique Strauss-Khan, the government is also in the process of adjusting electricity tariffs to reflect the cost of service.
Magande explained that Zesco was currently looking for financing to carry out three investment projects namely Kariba North Bank power station extension, Itezhi-Tezhi power station and at the same time to complete the rehabilitation project.
“The amount required is US$450 million about 1.4 trillion. Given the importance of raising electricity supply to achieve the medium-term growth objectives, as well as limited availability of grants or concessional financing, the government and or/Zesco may likely need to contract new non-concessional external borrowing for these projects in 2008,” he stated. “Government is conscious of the gravity of the current shortage of electric power and the risk it poses to sustained growth. Development of the electricity sector is vital to achieving sustained high growth and reducing poverty.”
And Magande said the Ministry of Finance and National Planning (MoFNP) was in the process of instructing all ministries, provinces and spending agencies to be paying their utility bills promptly.
“Further, as a first step to improve the financial footing of Zesco, the government will ensure that all arrears to Zesco from ministries, provinces and spending agencies are paid by end-December 2008,” Magande stated. “Moreover, the MoFNP will issue a circular instructing all ministries, provinces and spending agencies that all utility bills for each quarter are paid from quarterly budget funding and also that all funds released for payment of utility bills should not be reallocated to spending agencies.”
He also observed that there was need to strengthen policies to ensure that sufficient electricity generation capacity was installed as quickly as possible to meet a rapidly growing demand.
“To this end, government will develop policies with specific strategies to gradually adjust electricity tariffs to reflect the cost of service, increase operational efficiency of Zesco and strengthen its governance, and also ensure Zesco has sufficient resources to implement the planned rehabilitation and new projects,” stated Magande. “Given the urgency, government intends to complete this action plan not later than June 2008.”
Recently, IMF stated that Zesco was a financially unviable company that is incapable of mobilising resources for the necessary expansion of power generation and the electricity grid.
Labels: DOMESTIC DEBT, FUNDING, INFLATION, MAGANDE, ZESCO
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HH on Obama's nomination
By Sunday Chanda
Monday June 09, 2008 [04:00]
Zambians know the influence and character of the original UPND under the capable leadership of Mwana Mubotu, the late Anderson Kambela Mazoka. Zambians also know how the party was embarrassed soon after his demise. The hypocrisy with which our political players want to live is worrying. After reading UPND's HH talk about the Obama nomination in the US and further condemning tribalism, I am forced to remind this politician that he was politically propped up by regional and tribal politics.
I read Choolwe Mweetwa's article on Obama and I think he made a whole lot more sense than HH on this matter. How I wish HH would have taken time to read the context of Choolwe's article before commenting on this historical event.
As the editorial in The Post has correctly observed, " sometimes people pay too much attention to form and not content or substance of the matter", and this is in reference to the Obama nomination. It is wrong for HH to use the Obama fever to justify his political skeletons.
Such should not be politics in this time and age. Zambians recall very well how Sakwiba Sikota and his team were treated at the UPND convention, at Mulungushi International Conference Centre. What is important for politicians such as HH who seek political leadership of this country is that they must be able to candidly face their past and not make political statements just when its suitable to do so.
You cannot reduce such an important event in the diary of every sensible black person as the Obama nomination to justify your ascendacy to leadership of a political party when we know what actually propelled you. It was not merit because others could have done better. It was something between money and tribe or both. Zambians are not suffering from political amnesia that they would forget what transpired to oust Sakwiba strategically because appratently he was different from Mazoka and therefore could not take over.
I remember how The Post were accused of being anti-Tonga when they brought to the fore the happenings within the UPND after Mazoka's death. My word of advice for HH is that it will be impossible for him to strike the Obama fever in Zambia because he has not addressed his past with honesty. UPND conceived tribalism and regionalism after the Mazoka demise and gave birth to the HH administration. Obama never had such a tainted political CV and as a new phenomenon, he has proved to be his own leader and not ridding on some negative agenda such as race and tribe to enter the political limelight.
HH has this type of political stigma that only he can deal with, and he can only do so if he accepts that this is where his party is coming from but reforming in the process. You cannot be in denial when facts are all over the wall!
http://www.postzambia.com/post-read_article.php?articleId=42548
Empowerment funds
By Concerned citizen
Monday June 09, 2008 [04:00]
Allow me to air my views on the Citizen Economic Empowerment Commission (CEEC) because it seems not to be functioning on time.
The commission has been in existence for some time now since its establishment by the Act of 2006. The youth empowerment funds and the funds for agriculture have been transferred to the commission for some time now. In this year’s budget, funds have also been allocated to the commission.
A few weeks ago, the commission assured the nation that the funds applied through the youth ministry would be disbursed. This was after the intervention by the President in his speech on Youth Day. The commission said they were just working out modalities of disbursing the funds to remote areas.
To date, all the commission tells us is that they are still 'putting' the guidelines in place. The funds applied through the ministry had their own guidelines which were suited for the youth entrepreneurs to access the funds. These are to be disbursed according to the guidelines set. The guidelines should be established; they are overdue.
By delaying the disbursements, the commission is denying the youths and citizens their empowerment and wealth creation opportunities, contradicting one of the most critical objectives of the commission. We will soon be in the rainy season.
People spent resources to come up with their business proposals. It is time to disburse the funds as the other guidelines for the fresh funds are being awaited since the commission had also confirmed that they had received the successful proposals from the youth ministry whose funds are already with the commission.
http://www.postzambia.com/post-read_article.php?articleId=42549
Role of opposition parties
By Chilufya Chanda
Monday June 09, 2008 [04:00]
I'd like to air my views on PF leader Michael Sata and President Mwanawasa’s reconciliation. In commenting on this matter, I will restrict myself to what I perceive to be the role of the opposition and based on that, argue as to whether Sata’s reconciliation is suitable and reasonable for the opposition.
This is important because any failure by the opposition to understand themselves and their mandate will result in their being rendered irrelevant to the cause for which democracy exists.
In competitive multi-party politics, such as we have embraced in Zambia, the party that forms the incumbent government seeks to enact into law a number of policies and programmes (oftentimes consistent with their election manifesto). Opposition political parties are free to criticise the ruling party’s policies, ideas and programmes and offer alternatives.
Democratic parties recognise and respect the authority of the elected government even when their party leaders are not in power. This is possible because democratic societies are committed to the values of tolerance, cooperation and compromise. Democracies recognise that consensus building requires compromise and tolerance. Mahatma Gandhi famously argued that “intolerance is itself a form of violence and an obstacle to the growth of a true democratic spirit”.
The notion of a loyal opposition is central to any democracy. It means that all sides in the political debate-however deep their differences–share the fundamental democratic values of freedom of speech, the rule of law and equal protection under the law. Parties that lose elections become the opposition. The opposition, then, is essentially a 'government-in-waiting'.
For a culture of democracy to take hold, opposition parties need to have the confidence that the political system will guarantee their right to organise, speak, dissent and/or criticise the party in power. Opposition parties need to constructively engage the government of the day on critical issues without being combative. The opposition were never meant to be detached; they are expected to build bridges among themselves and with the government.
By design, opposition political parties play an increasingly important role in shaping policy agendas, conducting civic education, fighting corruption, singly or in alliance with the media, and do not necessarily need to perceive the the party in power as an enemy.
There is nothing fundamentally flawed with the reconciliation between Sata and Mwanawasa.
This change of approach in politics can be expected to result in political development and maturity by breaking the myth of separation between the opposition and the party in power. President Mwanawasa understands that his government is not an island, so does Sata.
This reconciliation needs to be energised by other stakeholders coming on board and can only survive the test of time if other stakeholders get on board such as the ZEC, CCZ, ECZ, NGOCC and the labour movement.
May this reconciliation lead to compromise on the disputed NCC and other serious national issues.
Labels: BARACK OBAMA, FUNDING, HAKAINDE HICHILEMA, OPPOSITION
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IMF approves K261bn plan for economic growth
By Chiwoyu Sinyangwe
Friday June 06, 2008 [04:00]
THE International Monetary Fund (IMF) has approved a US $79 million (about K261.9 billion) three-year plan to support Zambia’s efforts in poverty alleviation and sustained economic growth. According to a press statement released on Wednesday, the new Poverty Reduction and Growth Facility (PRGF) plan succeeds a previous arrangement successfully completed last year.
Following the IMF executive board's discussion, Takatoshi Kato, deputy managing director and acting chairman, commended the Zambian authorities “implementing prudent macroeconomic policies, which, in the context of high copper prices and debt relief, contributed to robust economic growth, markedly lower inflation, a reduction of poverty, and a build-up of international reserves.”
“The authorities remain committed to maintaining prudent macroeconomic policies and pursuing structural reforms to sustain high economic growth, further reduce poverty, diversify the economy and preserve macroeconomic stability and debt sustainability,” Kato said.
The statement further noted that the new PRGF arrangement would support the government's objectives of boosting economic growth and enhancing employment and income opportunities, especially for the poor, while maintaining macroeconomic stability.
The PRGF is the IMF's concessional facility for low-income countries. PRGF loans carry an annual interest rate of 0.5 per cent and are repayable over 10 years with a five-and-a-half-year grace period on principal payments.
Recently, a group of IMF executive directors that visited Zambia early this year indicated that the new financing package to replace PRGF would come with a smaller amount of money saying: “We can't give as much money as previously because we feel your economy is in a better shape than previously.”
Zambia’s previous PRGF expired at the end of September last year and the IMF indicated that the country had performed well under the financing facility that had been in place since June 2004.
The PRGF arrangement was approved on June 16, 2004 in the amount equivalent to SDR 220.1 million (approximately US$333.6 million or K1.3 trillion).
The PRGF-supported programmes are based on country-owned poverty reduction strategies adopted in a process involving civil society and development partners and articulated in the Poverty Reduction Strategy Paper (PRSP).
Labels: FUNDING, IMF, POVERTY
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CEC to disburse K140bn equitably, says Lintini
By Jack Zimba
Wednesday May 07, 2008 [04:00]
THE Citizenship Empowerment Commission (CEC) has assured equitable disbursement of the K140 billion allocated to it by Parliament in this year’s budget. Appearing before the committee on economic affairs and labour, interim director general, Gideon Lintini, said the commission had embarked on sensitisation programmes to educate people on how to access the funds. He said the commission would also translate its act into seven local languages and Braille to ensure that no one was left out.
But chairperson of the committee, Given Lubinda, said it was wishful thinking for the commission to say that it would distribute the funds equitably when it had not defined equity in its plan.
Lubinda said as long as the fund was not segmented for distribution to various groups of society, such as women and the youth, equity would not be possible. He said the commission would not attain equity if it operated as a high street bank.
“Are you segmenting these funds to ensure that women have their own competition? If that is not there, then this equity we are talking about is nothing but wishful thinking,” Lubinda said.
But Lintini said the commission was only mandated to implement the programme.
“We got the marching orders from you the parliamentarians, so if this is wishful thinking then it originated from you,” he said.
Lukulu West member of parliament Charles Kakoma wondered why the commission did not have guidelines on its operations months after its establishment.
Lintini explained that the commission was only set up in 2007 and its director was yet to take up office.
He assured the committee that the guidelines would be put in place after the director assumes office on May 12.
However, Lubinda wondered whether the commission needed more time to implement its programme.
“My concern is that we gave you (K140 billion) as parliament, but there are these issues to be put in place. Are we forcing you to swallow this bone even before you develop teeth to chew?” he asked.
Lintini said: “It would have been desirable if we had more time.”
President Levy Mwanawasa on Labour Day gave a directive for the commission to speed up its implementation work.
Lintini said the commission did not have the “luxury of time” and that it would abide by the presidential directive.
He said the commission expected its first initiative to be implemented in June this year.
Labels: CEC, FUNDING
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Levy, NEC differ over administration of youth and women's funds
By Lambwe Kachali and Mwala Kalaluka
Thursday March 13, 2008 [03:00]
MMD members of parliament and some national executive committee (NEC) members on Tuesday differed with President Levy Mwanawasa during a caucus meeting at State House over the administration and implementation of youth and women empowerment funds through the Citizens Economic Empowerment (CEE) Act. And former lands minister Judith Kapijimpanga fumed at State House security personnel after they blocked her from driving into State House premises using her personal vehicle.
MMD sources disclosed yesterday that that MMD MPs and NEC members expressed concern over intentions by the government to administer the Youth Empowerment and Women Empowerment funds under the CEE.
The source said some members argued that the transfer of such funds would disadvantage the rural youths and the womenfolk, as they would not be able to meet the required conditionalities attached in accessing the money.
The sources said some members of parliament indicated that the step that the government had taken on the funds had the potential to worsen the poverty situation in rural areas.
The source said upon realising that the issue was getting hot, President Mwanawasa said it was not right for NEC and members of parliament to fight the government. The sources said the members told President Mwanawasa that it was not a question of fighting the government but a question of ensuring that the national cake was equally shared among Zambians.
“They said that the way things stand, the rich will become richer and the poor, most of whom are rural dwellers, will become poorer. What criteria will be used to access this fund taking into account that the Act itself is not clear? This was their argument and they wanted proper clarification from the President. But to our surprise, the President thought they are fighting the government,” the source said.
The sources further said they were servants of the people in their respective constituencies and were in dire need of accessing those funds.
It took the members more than 45 minutes arguing and stressing their points to convince President Mwanawasa.
When they failed to reach a compromise, President Mwanawasa declared a division and called for a vote. The source said after considering the impression that might have been created to vote against the President, some members unwillingly voted in favour of President Mwanawasa’s wish.
“You know, you cannot bite a finger that feeds you. Even when all of us were raising our hands up, we still did not agree with the President,” the source said.
And another source said the other issue on the agenda was the revision of the road user fees proposed by RTSA.
The source said it was resolved that the public should be consulted before the Statutory Instrument was signed.
And Kapijimpanga, who went to attend the caucus meeting was told to park her car in the general car park outside State House, as ministers and deputy ministers were ushered in through the main gate after screening. Kapijimpanga, who is MMD chairperson for lands, obliged with the security officers’ advice and parked her car in the general car park.
She was later joined by another NEC official who wanted to know why only those who had flag-flying vehicles were allowed to drive into State House.
“So does it mean that these with flags are more important than NEC members who are the supporters of the party?” the unidentified NEC member asked the security officers.
Kapijimpanga and her colleague, however, went into State House but returned shortly after seeing that another NEC member by the name of Munkole was allowed to drive through the main gate despite him not being a minister or deputy minister.
The duo confronted one of the security officers and asked him why Munkole had been allowed to drive in when they were blocked from doing that.
“I have been a minister; I have been a deputy minister and why are you treating me like this?” Kapijimpanga asked the security officer, who responded that Munkole told them that he was a ‘honourable’.
Kapijimpanga said Munkole was not a ‘honourable’ and that he had just joined the ruling party NEC a few weeks ago.
“Actually, I demand an apology from you because you have treated me like a street pushover,” said Kapijimpanga. “When you set standards, they have to be levelled. I am going to drive in because I was also a minister and deputy minister.”
Labels: CEE, FUNDING, GOVERNANCE, NEC
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K3bn north tourism fund to boost economy - Kaingu
By Fridah Zinyama
Thursday October 25, 2007 [04:00]
The allocation of K3 billion to the northern circuit for tourism development will boost further growth of the economy, tourism minister Michael Kaingu has said. And Kaingu has called on financial institutions in the country to lend flexibly to people who want to invest in the tourism sector.
Kaingu said the K3 billion injected into the northern circuit out of the K3.5 billion allocated to the Tourism Development Credit Facility (TDCF) would give impetus to the growth of the tourism sector in the region through infrastructure development and other projects that will help to add value.
He said the northern circuit has been recognized as a tourism gem because of its richness in flora and fauna.
Kaingu also disclosed that Nsumbu National Park would be restocked with various animal species.
He said government through the Kasaba Bay Tourism Development Project was promoting holistic public-private sector partnerships to accelerate tourism development in the northern region.
And in an appeal to financial institutions, Kaingu said it was important to introduce flexible lending terms such as longer re-payment periods so that more people could borrow to invest in various sectors of the tourism industry.
He said the rate of failure in tourism and hospitality sectors was minimal compared to other sectors of the economy.
Kaingu said it was important that banks and other financial institutions supported tourism investment because of the proven economic benefits the industry was bringing to the country.
He also encouraged Zambians to ensure that they paid back loans in order to cultivate trust for further borrowing.
Labels: FUNDING, TDCF, TOURISM
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