Sunday, August 01, 2010

ZACCI rejects degree requirement for President

ZACCI rejects degree requirement for President
By Joe Kaunda
Sun 01 Aug. 2010, 04:05 CAT

ZAMBIA Association of Chambers of Commerce and Industry has joined several parties in objecting the degree requirement as a minimum qualification required for one to run for presidency as proposed in the NCC draft constitution.

Submitting their comments, ZACCI chairman Hanson Sindowe has stated that his organisation felt the minimum of grade 12 was adequate contrary to the demands by the National Constitutional Conference (NCC).

“The requirement that a Presidential candidate must have obtained a minimum academic qualification of first degree or its equivalent from a recognised university or institution is not necessary. Since the President is also a member of parliament, the minimum academic qualification of grade twelve school certificate of education or its equivalent proposed for a member of parliament would also be adequate for a presidential candidate,” read the submission in part.

“In addition, it is the duty of the people to assess presidential candidates and choose who should lead them.”

Sindowe has also reaffirmed ZACCI’s support for the 50 per cent plus one system of electing the president as this would ensure a stable government elected popularly, supported and accepted by the citizenry.

“It is important that the President has the support of the people to run the country. Stability helps build confidence in the economy and is a necessary condition for an enabling environment to do business,” Sindowe stated.

On the swearing in of the President-elect, ZACCI has expressed concern about the current practise of assuming office immediately or not later than 24 hours after the declaration of the election results.

“There is need for a better mechanism with a handover period of at least one month to allow for security briefings and to help the President elect understand how government operates, choose his team and acclimatise to the news role,” the submissions further read adding; “ we support that the President be sworn in within 24 hours if he is a continuing President.”

The ZACCI chief have also called for the need to have the Vice-President should be a running mate as stated in the Mung’omba draft constitution. They explained that this ensured appropriate stability and security of succession in case anything happened to the President.

“Stability and predictability are necessary factors for development. It also removes the unnecessary expenses and disruptions occasioned by a Presidential by-election,” Sindowe submitted.

On the appointment of cabinet ministers, Sindowe submitted that ministers be appointed froim outside Parliament to ensure proper separation of powers among the wings of government.

He explained that this would enhance checks and balances and improve national governance.

“It will also prevent people from patronising the President to seek nominations as Members of Parliament and subsequent appointments as Ministers,” he stated and further called for the removal of the clause allowing nominated members of parliament.

ZACCI has also proposed that a political party maintains its seat when a parliamentary seat falls vacant and be allowed to provide a replacement except when the seat is held by an independent member of parliament.

“A member of parliament who resigns from a political party should not be eligible to stand in an election. This will maintain the balance of power in Parliament and help reduce costs incurred for holding unnecessary by-elections,” the submissions read.

On the requirements for councillorship, ZACCI proposed that a minimum education level of grade twelve school certificate and that the mayor be elected popularly by direct vote of the electorate.

“He/she should be an executive mayor with a longer term, such as five years, to enable him/her implement strategies. This will ensure stability and credibility of the councils, and will enhance decentralisation by giving power to the people to decide what they would like to see on the ground,” ZACCI submitted.

ZACCI has also proposed for a Federal System of government where provinces are run by Governors with full jurisdiction over affairs of the province. The proposal is aimed at enhancing decentralisation and allowing people to decide on how to govern themselves.

Sindowe noted that the current Constitution was not

“The NCC draft constitution as it is, is not any different from the current constitution therefore begs the question as to why it is necessary to review the constitution and enact a new constitution when a few amendments to the current constitution would suffice,” Sindowe observed.

“The expenses incurred by both the Mun’omba Constitution Review Commission (CRC) and the National Constitution Conference (NCC) will never be justified without any fundamental shifts that would help accelerate development.”

He noted that the lack of proper decentralisation through proper local governance that gave power to the people did retard development as people always waited for guidance and programmes from the central government.

ZACCI’s submissions are in line with the NCC’s call for comments on the current draft constitution.

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Monday, July 19, 2010

(HERALD) Zambian industrialist calls for greater business linkage

Zambian industrialist calls for greater business linkage
By Tawanda Musarurwa

ZAMBIAN industrialist and president of the Zambia Association of Chambers of Commerce and Industry Mr Hanson Sindowe, has called for greater business linkages between Zimbabwe and Zambia’s private sectors for mutual trade and investment growth.

The ZACCI president said that there is need for the Zimbabwean businesses to establish ties with relevant organisations that could help them strengthen their capacities and improve access to markets and investment.

"In promoting the expansion of trade and investment between Zambia and Zimbabwe, we need to foster knowledge-sharing and networking among Zambian and Zimbabwean business communities through regular networking events, bringing together Zambian and Zimbabwean businesses for the purpose of exploring opportunities and making contacts.

"There is need to cultivate business ties between the two states aimed at enhancing and increasing commercial links between Zambian and Zimbabwean businesses.

"May I take this opportunity to invite the Zimbabwean private sector to come to Zambia and explore available opportunities in agriculture, energy, construction, manufacturing, mining and tourism," said Mr Sindowe.

Zambia has traditionally been a lucrative market for a wide range of Zimbabwean products and according to Central Statistical Office figures, trade in the first quarter of 2010 between Zimbabwe and Zambia shifted in Zimbabwe’s favour as indicated by declining imports and increasing exports to its northern neighbour. The Zimbabwe-Zambia trade reflected Zimbabwean imports worth US$14,2 million and its exports amounting to US$15 million.

Mr Sindowe also called upon Zimbabwean officials to prioritise the expansion and rehabilitation of key infrastructure for the country to attract investor capital and establish an effective growth path.

"Infrastructure is critical to the growth of the Zimbabwean economy as sound infrastructure for moving goods around Africa is absolutely vital for businesses and investors.

"It is good to note that Zimbabwe has adequate internal transportation and electrical power networks; however, there is need to ensure that all economic infrastructure is brought to a level that will attract and support investment in the country.

"Other than infrastructure, the importance of energy and Information Communication Technology cannot be over emphasised in the quest to achieve economic growth. Energy, communication and technology are catalysts for development and investment and will benefit key sectors of the economy and facilitate growth," he said.

Zimbabwe has so far sunk around US$100 million of its Special Drawing Rights allocation from the International Monetary Fund into a number of infrastructure development and rehabilitation projects, including road and rail infrastructure, energy, water and sanitation, and ICT infrastructure.

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Monday, July 05, 2010

ZACCI welcomes Zamtel sale to Lap Green

COMMENT - Just more after the fact justification for government corruption. Selling ZAMTEL to the Libyian government is not 'privatisation', it is just transferring an asset from one government to another government. 25% share ownership does not give the Zambian government an 'active role' in management of the company, it gives it a minority stake. And lastly ZAMTEL was making losses because the neoliberal MMD government deliberately ran it into the ground, with an eye on privatisation. They didn't pay their bills, the way they are paying their bills to ZAIN. Hanson Sindowe is doing himself no favours shilling for the government.

ZACCI welcomes Zamtel sale to Lap Green
By Misheck Wangwe in Kitwe
Mon 05 July 2010, 14:30 CAT

ZAMBIA Association of Chamber of Commerce and Industry (ZACCI) has welcomed the sale of Zamtel to Lap Green Networks, saying the investor has committed a five-year plan which will foresee rapid and sustainable growth.

Commenting on government’s move to sale 75 per cent shares in Zamtel to Lap Green Networks of Lybia at a cost of US $257 million, ZACCI president Hanson Sindowe said it was understood that government would retain 25 per cent shares and would continue to have an active role in management and direction of Zamtel’s future.

Sindowe said the Chamber was happy that the substantial proportion of the total purchase had been allocated to the settlement of full redundancy packages, and that as part of the process Lap Green Networks would retain the proportion of the workforce sufficient to operate Zamtel in an optimal manner and in line with the five-year business plan.

He said it was understood that government would retain 25 per cent of Zamtel and would continue to have an active role in the management and direction of the company’s future, returning to seats of the board out of seven and veto rights to key decisions concerning the company.

Sindowe said the publicly available information was that Zamtel was making losses for years and government as the only shareholder was duty-bound to cover the losses in order for the parastatal to continue operations.

“Government’s allocation to such a cause derives from taxes on its citizenry. This means that as long as making losses remains under the auspices of government, taxes can only continue to increase and certainly not abate and privatization of Zamtel has positive effects,” Sindowe said.

He added that for Lap Green Networks to invest in Zamtel, it had done an economic evaluation of the company and determined that in the long-term the investments would yield returns in excess of its current investment.

“It could be argued that if a foreign investor can see such benefits in an institution like Zamtel, why haven’t we seen the same benefits and reorganised the company into a profitable entity and run it as such instead of selling it? The answer is that even if we see the benefits there is often a myriad of non-economic considerations that stand in the way of progress,” Sindowe said.

He said the decision to privatise Zamtel was to the benefit of both the country and the company.

Sindowe said it was positive that government and the people who were the taxpayers were relieved from the burden of keeping Zamtel afloat when it was economically sustainable in its own rights.

He said it was expected that the 25 per cent stake remaining in the hands of government would finally be divested to the public through a listing at the Lusaka Stock Exchange.

Sindowe said ZACCI had further recommended that measures be taken to ensure that Zamtel Technical College continues to operate in the post privatisation era either under the Copperbelt University or the University of Zambia or through a public-private partnership.

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Monday, June 14, 2010

Zambians will not understand Zamtel sale – Mutati

COMMENT - I think the Minister knows Zambians WILL understand - and understand all too well, exactly what happened. The comedy stylings of Minister Mutati. His argument: lack of transparancy is traditional. Heck, that is how we always do things in the MMD... Check out Cho's post here. Also check out the follow-up to this article in The Post: Mutati under fire over RP Capital (Tue 15 June 2010). If any reader would like to send an e-mail to minister Mutati and tell him that they would want to read the RP Capital evaluation report, and explain why they would be able to understand a simple evaluation report, please send your request here: felixmutati *** yahoo.co.uk, fmutati *** parliament.gov.zm (thanks to Whisper and Anonymous at Cho's blog).


Zambians will not understand Zamtel sale – Mutati
By Mutale Kapekele
Mon 14 June 2010, 04:50 CAT

COMMERCE minister Felix Mutati has said Zambians will not understand government’s decision to privatise Zamtel even if the RP Capital valuation report is released. But Zambia Association of Chambers of Commerce (ZACCI) president Hanson Sindowe has insisted that the government must release the RP Capital report.

In an interview on Saturday, Mutati said the citizens could not understand the RP Capital report on Zamtel and should rely on the government’s explanation on the sale.

“Zamtel is not the first company to be privatised and at no time did the government ever release valuation reports for any of the privatised companies,” Mutati said.

“I don’t see how releasing the RP Capital report will help the citizen because they will not even understand it. It is just figures on paper. I would advise people to instead listen to the rational explanation of the government over the Zamtel sale.”

He said Zamtel was like a patient who was almost terminally ill and did not contribute anything to the revenue of the country.

“Zamtel has for many years not remitted any tax, which amounts to denying the country of resources for development purposes,” Mutati said.

[Do you mean - like the privatised MINES? - MrK]


“That company has been a big liability to the nation because of its inability to make profit. It is like a patient who is almost terminally ill. The government only had two options to save it. One was to recapitalise it by diverting funds meant for other programmes like health and education. Or to sell it and allow an investor to pump money in the company as well as address issues that have led to the near-collapse of the company.”

[Or, to run it well without political interference. And have the government pay it's bills. - MrK]


He said compared to the other two telecommunication companies (Zain and MTN) in the country, Zamtel had over-employed and failed to raise its client base.

“The fact that the other two telecommunications companies have managed to realise huge profits with relatively small numbers of employees is a sign that there is something seriously wrong with Zamtel,” he said.

[It is called political interference. - MrK]


“There is no way a company can have 2,400 employees and still maintain a 200,000 client base. That is not normal. Look at Zain, they have over three million subscribers in the few years they have been operating in the country, what does that tell you?”

[That they don't have landlines. - MrK]


Commenting on the price which has been described as a song by former vice president Enoch Kavindele, Mutati said the government made comparisons with other telecommunication companies that were recently sold on the continent.

“Ghana Telecoms only got US$900 per employee when it was been privatised but we have managed to get as much as US$1700 for each Zamtel employee,” Mutati said.

[Oh, so the value of a company is based on a selling price per employee, right mr. Minister? Not the value of it's assets like real estate, land and landlines, growth potential... - MrK]


“We are getting much more. We made comparisons before we made a judgment. It is not fair to say we sold the company for a song.”

He said those calling for the reverse over the sale of Zamtel were like doctors who re-infected a recovering patient.

[Made sick by the abuse by the MMD government - with the purpose of getting kickbacks from privatisation. Privatisation is just an invitation for corruption, because it relieves the Zambian government of the obligation of running it's parastatals profitably. - MrK]


And in a separate interview, Sindowe demanded that the government must release the Zamtel valuation report.

Sindowe said while the privatisation of Zamtel was good, the manner in which it was done left a lot of unanswered questions.

“Zamtel is unique in the telecommunications industry but it has not been doing well and privatising it was a good thing but the process that was followed was not proper,” Sindowe said.

“Once the new owners pump in money in the company, it’s structure will make business sense.

What I don’t appreciate is that information over the sale has not been made public. This is a public institution and the government must release the valuation report. Why shouldn’t the people know the procedure that was followed? What are they trying to protect?”

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Tuesday, March 25, 2008

ZACCI urges govt to create new power plants

ZACCI urges govt to create new power plants
By Florence Bupe and Chiwoyu Sinyangwe
Tuesday March 25, 2008 [03:00]

Zambia Association of Chamber of Commerce and Industry (ZACCI) has said the government’s move to zero- rate energy saving equipment is not a solution to the prevailing power crisis in the country. Commenting on the statutory move, ZACCI chairman Hanson Sindowe said although the move was well intended, there was still need for the government to consider setting up new power generation stations.

Sindowe explained that zero-rating energy saving equipment was only a medium term solution to the power crisis that had rocked the country. Sindowe, who is also Copperbelt Energy Corporation (CEC) chairman, said there was need to get the public more involved in dealing with the power crisis through responsible use of the commodity.

“Whatever efforts government is instituting to address the power outages we are facing will be futile if people remain unconscious of how much energy they are consuming. People should be encouraged to install solar supported equipment, such as solar geysers, to cut down on energy consumption,” said Sindowe.

And Saro Agri Equipment Limited has said it is inevitable that the cost of production for most goods would go up as companies start substituting conventional electricity in their production process. Oza said producing goods on generator sets was more expensive compared to using conventional electricity.

He singled out the manufacturing sector as the segment of the economy that was likely to be most hit by the power outages adding that the industry’s competitiveness was under threat.

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Saturday, January 26, 2008

Zambia needs other sources of power, says Seshemani

Zambia needs other sources of power, says Seshemani
By Kabanda Chulu
Saturday January 26, 2008 [03:00]

ZAMBIA Chambers of Commerce and Industry (ZACCI) chairman Hanson Sindowe has said the country risks losing the economic gains recorded if new electricity generation plants are not developed to meet the current required demand. And University of Zambia Economics lecturer Professor Venkatesh Seshamani has said the country should look for alternative and cheaper sources of power such as nuclear energy. Sindowe said there was need to urgently attract investment in the sector in order to sustain the economic growth being recorded.

“Our immediate concern which requires much attention is that if Zambia does not move fast enough to have new power generation plants to meet required demand, the country risks to lose all the economic gains she has recorded during the past few years,” he said.

Sindowe, who is also Copperbelt Energy Corporation executive chairman, said the company’s long term plan was to enter into partnership with other entities in power generation operations.

“We are talking to various entities that we want to partner with for the purpose of developing power generation projects but it is too early to disclose any information since discussions are underway, but participating in electricity generation is part of our long-term plans,” he said.

And Prof Seshamani said uranium mining provided the prospects for a long-term solution in terms of an alternative and cheaper source of energy for Zambia.

“The Lumwana copper mines are known to have significant deposits of uranium that are mixed with the copper deposits. So along with the mining of copper, uranium can also be mined. Indeed, Zambia is planning to mine and export uranium which would bring high returns to the country especially since the international price of uranium has risen nearly ten-fold over the past decade,” said Prof Seshamani.

“But Zambia must not be content with mining and exporting uranium. She must see how the uranium can be used within the country itself to provide nuclear energy which would be cleaner, enduring and economical in the long-run.”

And Lusaka businessman Mark O’Donnell said the country should focus on attracting more investments in the power sector as a means of mitigating electricity problems.

“We need to see more investment in electrical power generation since dam sites have been known for many decades, yet the last time we built a dam was in the 1970’s. There should be no further delay in investing in more power generation.

There is an abundance of private capital in the world and to mobilise some of this to invest in electrical power generation is not a huge challenge, but why do we fear using this foreign capital?” O’Donnell asked.

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Monday, January 14, 2008

CEC chief urges quick tariff review for mines

CEC chief urges quick tariff review for mines
By Kabanda Chulu
Monday January 14, 2008 [03:00]

Copperbelt Energy Corporation (CEC) chairman Hanson Sindowe has said there is need to urgently complete negotiations with the mining companies with a view to increasing electricity tariffs. Last month, domestic power charges were increased by 27 per cent by Zesco Limited, but Sindowe declined to say how much the tariffs would rise for the copper and cobalt mining companies.

“Negotiations of the electricity tariffs with mining companies is an urgent matter that required thorough analysis and understanding especially that power supply is a key feature of development in the country and renegotiations are very complex and challenging in that the tariffs should be set at appropriate levels whereby they should not be too low or too high in order to attain the balance needed among the parties involved," Sindowe said.

"Currently, CEC is meeting representatives from the mining firms with a view to revise the tariffs upwards, but the challenge is that some mines are still waiting for approval from the company's boards and on our part we have to renegotiate on two fronts; Firstly with Zesco and secondly with the mines."

The mining companies pay lower rates compared to most industries after they negotiated lower tariffs at the time Zambia was privatising its copper mines in a bid to keep them running.

Nevertheless, Sindowe said the tariff rise negotiations were almost concluded with various foreign mining firms.

"We are currently negotiating with the mines and we are almost there, especially that we have agreed on the approach,” he said.

Sindowe explained that the power tariff increase by Zesco was a positive development because the company needed to become economically viable in order to ensure that Zambia reaped greater benefits from profits that foreign mining firms were reaping from higher global metal prices.

Since 1997, Copperbelt Energy has a Bulk Supply Agreement (BSA) with Zesco that is effective until 2020. This agreement entails CEC to buy electricity for onward transmission to its customers, which are mainly the mining companies.

CEC was formerly a Power Division under the defunct state mining conglomerate, Zambia Consolidated Copper Mines (ZCCM), and was established to ensure reliable and available supply to the mines.

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