Govt underscores investment in economic infrastructure
By Kabanda Chulu
Fri 31 Jan. 2014, 14:00 CAT
THE GOVERNMENT says higher economic growth is meaningless unless there is continued investment in infrastructure, health and education to result in job creation.
And the government has projected agriculture, mining, manufacturing, tourism, energy and construction to be major drivers of GDP growth and job creation over the medium to long term.
According to a fact sheet on developments in the economy released yesterday by Ministry of Finance public relations officer Chileshe Kandeta, economic growth was positive in 2013.
"But higher growth and greater job creation will require continued investment in economic infrastructure as well as health and education. Zambia needs to achieve higher levels of economic growth to make meaningful headway in creating decent jobs and reducing poverty and inequality," it stated. "Government remains committed to maintaining macroeconomic stability characterised by low inflation, stable exchange rate, rising international reserves and expansion in access to credit particularly for Small Medium Enterprises."
It stated that the government was targeting real economic growth of between seven per cent and eight per cent over the medium term (2014 - 2016).
"Budget deficits are expected to be consolidated towards a lower figure of three per cent of GDP in the medium term. Revenues are projected to rise to 23 per cent of GDP by 2016. Inflation is targeted to decline to no more than five per cent by 2016," it stated. "External debt will remain sustainable and well below the threshold of 40 per cent of GDP and there is need to improve access to financial services as well as achieving better health and education outcomes which is critical in making meaningful progress in reduction of poverty and inequality."
In 2013, real GDP was K125.9 billion compared to K106 billion in 2012. GDP growth in 2013 was 6.5 per cent, with average real growth over the past three years (2011-2013) of 6.9 per cent.
"Key contributors to real GDP growth in 2013 were transport, storage and communications (27.1per cent); construction (24 per cent); community, social and personal services (17.4 per cent); financial institutions and insurance (13.7 per cent); manufacturing (8.2 per cent) and mining (5 per cent)," it stated. "Investment in the economy (Gross Fixed Capital Formation) is currently estimated at 29.7 per cent of GDP in 2013, with average investment over the past three years (2011 - 2013) of 27.1 per cent."
On fiscal policy and the budget, it stated that the expansionary fiscal budget was largely aimed at infrastructure development necessary to sustain high levels of economic growth over the medium term.
"Higher deficit in 2013 reflected structural reforms related to management of strategic reserves (FRA), oil procurement (fuel subsidies), and reform of the public service (wage award)," it stated.
"Preliminary data indicates that in 2013 the budget deficit was approximately 6.7 per cent of GDP, compared to the target of 4.3 per cent of GDP. However, this was significantly below the figure of 8.6 per cent of GDP which was initially forecast by the IMF. Government is committed to reducing fiscal deficit to no more than three per cent of GDP over the medium term. This should be possible as Zambia achieves higher growth and greater tax revenues from the mining and other sectors sector as production increases."
On debt policy, it stated that the government was mindful of the need to maintain debt sustainability to safeguard macroeconomic stability.
"Total debt as a percentage of GDP stood at 28 per cent in 2013. External debt stood at US$ 3.1 billion 2013 or 13.7 per cent of GDP, whilst domestic debt stood at K17.6 billion or 14 per cent of GDP," it stated. "External and domestic debt levels remain below their international thresholds of 40 per cent and 25 per cent respectively. Debt service (principal and interest payments) stood at K11 billion or 1.2 per cent of GDP (and approximately six per cent of domestic revenue) in 2013."
It stated that monetary policy remains committed to delivering low inflation and a strong financial sector that continues to expand access to finance, particularly to SMEs.
"Increasing attention is also being paid to improving consumer protection and strengthening corporate governance standards. Inflation remains in single digits at seven per cent in 2013, and the goal is to reduce this to no more than five per cent by end of 2016," it stated.
"Average lending rates have stabilized around 16 per cent and private sector credit grew by 16.2 per cent on an annual basis (as at November 2013)."
It stated that current account and trade balance remain positive with strong Foreign Direct Investment flows.
"But declines in trade balance in recent past reflect the need to promote greater Non-Traditional Exports by diversifying the export base. Agriculture, energy and manufacturing sectors are going to be important sources of diversification over the medium to long term," it stated.
"The nominal exchange rate (kwacha versus the US dollar) remains market determined and depreciated by an annual average rate of 4.2 per cent in 2013 but government is committed to maintaining a flexible and open exchange rate regime with stronger monitoring of external flows so that we can better manage the economy and respond to any global financial shocks."
Labels: INFRASTRUCTURE
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Govt underscores investment in economic infrastructure
By Kabanda Chulu
Fri 31 Jan. 2014, 14:00 CAT
THE GOVERNMENT says higher economic growth is meaningless unless there is continued investment in infrastructure, health and education to result in job creation.
And the government has projected agriculture, mining, manufacturing, tourism, energy and construction to be major drivers of GDP growth and job creation over the medium to long term.
According to a fact sheet on developments in the economy released yesterday by Ministry of Finance public relations officer Chileshe Kandeta, economic growth was positive in 2013.
"But higher growth and greater job creation will require continued investment in economic infrastructure as well as health and education. Zambia needs to achieve higher levels of economic growth to make meaningful headway in creating decent jobs and reducing poverty and inequality," it stated.
"Government remains committed to maintaining macroeconomic stability characterised by low inflation, stable exchange rate, rising international reserves and expansion in access to credit particularly for Small Medium Enterprises."
It stated that the government was targeting real economic growth of between seven per cent and eight per cent over the medium term (2014 - 2016).
"Budget deficits are expected to be consolidated towards a lower figure of three per cent of GDP in the medium term. Revenues are projected to rise to 23 per cent of GDP by 2016. Inflation is targeted to decline to no more than five per cent by 2016," it stated.
"External debt will remain sustainable and well below the threshold of 40 per cent of GDP and there is need to improve access to financial services as well as achieving better health and education outcomes which is critical in making meaningful progress in reduction of poverty and inequality."
In 2013, real GDP was K125.9 billion compared to K106 billion in 2012. GDP growth in 2013 was 6.5 per cent, with average real growth over the past three years (2011-2013) of 6.9 per cent.
"Key contributors to real GDP growth in 2013 were transport, storage and communications (27.1per cent); construction (24 per cent); community, social and personal services (17.4 per cent); financial institutions and insurance (13.7 per cent); manufacturing (8.2 per cent) and mining (5 per cent)," it stated.
"Investment in the economy (Gross Fixed Capital Formation) is currently estimated at 29.7 per cent of GDP in 2013, with average investment over the past three years (2011 - 2013) of 27.1 per cent."
On fiscal policy and the budget, it stated that the expansionary fiscal budget was largely aimed at infrastructure development necessary to sustain high levels of economic growth over the medium term.
"Higher deficit in 2013 reflected structural reforms related to management of strategic reserves (FRA), oil procurement (fuel subsidies), and reform of the public service (wage award)," it stated.
"Preliminary data indicates that in 2013 the budget deficit was approximately 6.7 per cent of GDP, compared to the target of 4.3 per cent of GDP. However, this was significantly below the figure of 8.6 per cent of GDP which was initially forecast by the IMF. Government is committed to reducing fiscal deficit to no more than three per cent of GDP over the medium term. This should be possible as Zambia achieves higher growth and greater tax revenues from the mining and other sectors sector as production increases."
On debt policy, it stated that the government was mindful of the need to maintain debt sustainability to safeguard macroeconomic stability.
"Total debt as a percentage of GDP stood at 28 per cent in 2013. External debt stood at US$ 3.1 billion 2013 or 13.7 per cent of GDP, whilst domestic debt stood at K17.6 billion or 14 per cent of GDP," it stated.
"External and domestic debt levels remain below their international thresholds of 40 per cent and 25 per cent respectively. Debt service (principal and interest payments) stood at K11 billion or 1.2 per cent of GDP (and approximately six per cent of domestic revenue) in 2013."
It stated that monetary policy remains committed to delivering low inflation and a strong financial sector that continues to expand access to finance, particularly to SMEs.
"Increasing attention is also being paid to improving consumer protection and strengthening corporate governance standards. Inflation remains in single digits at seven per cent in 2013, and the goal is to reduce this to no more than five per cent by end of 2016," it stated.
"Average lending rates have stabilized around 16 per cent and private sector credit grew by 16.2 per cent on an annual basis (as at November 2013)."
It stated that current account and trade balance remain positive with strong Foreign Direct Investment flows.
"But declines in trade balance in recent past reflect the need to promote greater Non-Traditional Exports by diversifying the export base. Agriculture, energy and manufacturing sectors are going to be important sources of diversification over the medium to long term," it stated.
"The nominal exchange rate (kwacha versus the US dollar) remains market determined and depreciated by an annual average rate of 4.2 per cent in 2013 but government is committed to maintaining a flexible and open exchange rate regime with stronger monitoring of external flows so that we can better manage the economy and respond to any global financial shocks."
Labels: INFRASTRUCTURE
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Govt mulls increasing rural infrastructure funding
By Joseph Mwenda in New York
Fri 27 Sep. 2013, 14:01 CAT
PRESIDENT Michael Sata says the PF government will consider increasing budgetary allocation towards infrastructure development to foster rural maturation. And President Sata says 80 per cent of Zambians living in poverty are women and children.
The President said this in New York on Wednesday when he addressed other Heads of State at the high-level meeting of the UN General Assembly on the follow-up efforts made towards achieving the Millennium Development Goals.
"In line with the MDG Africa report for 2013, our framework enhances efforts to reduce inequality by pursuing inclusive growth strategies. Some of the interventions identified in the framework include, the promotion of rural development through increased budgetary allocations to infrastructure development and maintenance," President Sata said.
He said his government also attached priority to the promotion of labour-intensive methods for community projects such as roads.
The President further said government had been implementing a social cash transfer programme and a public welfare scheme.
"We are implementing this as part of reducing poverty and hunger. The targeting criteria for the two programmes are based on poverty and vulnerability," he said.
And President Sata said Zambia recognises that women and youth empowerment was the quickest way of reducing poverty.
"It is also important to note that despite robust economic growth in the recent years, the broad characteristic of the Zambian poverty profile is that women continue to face severe consequences. Statistics show that 80 per cent of people living in poverty are women and children," he said.
During the same roundtable meeting, President Sata highlighted the scores made by Zambia in attaining MDGs.
"Notable achievements include access to education and reducing child malnutrition. Progress has been made in reducing infant mortality, although much still remains to be done," he said.
Earlier on Wednesday, the President held private talks with Sri Lankan President Mahinda Rajapaksa at the New York Palace Hotel.
Special assistant to the President for press and public relations George Chellah told journalists after the meeting that the two Heads of State discussed a range of issues affecting their countries.
"During the meeting, the Sri Lankan President officially invited President Sata to the forthcoming Commonwealth Heads of State and government meeting," said Chellah.
Labels: INFRASTRUCTURE, MICHAEL SATA, RURAL AREAS
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It's govt's obligation to improve infrastructure - Mubukwanu
By David Chongo in Mongu
Thu 06 June 2013, 14:01 CAT
GOVERNMENT says it has a solemn obligation to improve the state of infrastructure in the country after years of deterioration and neglect.
Speaking when he flagged off the KR173 million construction and rehabilitation of 10 kilometres of Mongu roads to bituminous standards on Tuesday, Mongu Central member of parliament Nathaniel Mubukwanu said roads were key to the development of the country.
He said the government would not accept shoddy works considering the huge cost of infrastructure development.
"We need to break away from the practice and culture of shoddy works. The roads should serve the people of Mongu for many years to come. Government cannot afford to repeat maintenance works that are a result of poor workmanship as it is costly. So you better do and get it right so that we get the value for the money you are being paid," said Mubukwanu, who is also North Western provincial minister.
Barotse Royal Establishment representative Induna Inete, who was flanked by Induna Imuwana, urged the government to closely supervise the project and called on CGC not to sideline local youths when recruiting for the project.
China Geo Corporation (CGC) deputy project manager Li Tao promised to deliver a quality road in a year and that it would satisfy users.
According to Li, the road construction firm was expected to create 200 jobs.
And Avic Chief Engineer, Chen Feng, told Mubukwanu earlier that the company , which is constructing bridges on the 67-kilometre stretch to Kalabo across the plain from Mongu, would also employ up to 400 people between July and August.
Labels: CHEN FENG, INFRASTRUCTURE, ROADS
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Chikwanda urges complete overhaul of infrastructure
By Edwin Mbulo in Sesheke
Sat 18 May 2013, 14:01 CAT
FINANCE minister Alexander Chikwanda says the government cannot continue to do business without the complete
overhaul of infrastructure and harmonisation of trade policies.
Speaking when he officially opened the KR30 million Katima Mulilo one-stop border facility, Chikwanda said the government is committed in its resolve to remove bottlenecks such as poor cross border facilities in its quest to promote regional integration.
"The sub-regional economic communities namely SADC and COMESA had identified the North-South corridor as one of the most critical infrastructure requirements for regional integration. The development of the Katima-Mulilo border post is therefore timely and will no doubt significantly contribute towards the fulfillment of the regional integration agenda. We cannot continue to do business as usual without the complete overhaul of infrastructure and harmonisation of trade policies if we want the north-south corridor to meet the challenges of inter regional trade," he said.
Chikwanda said the new border facility would help promote the smooth and efficient flow of goods, facilitate increased intra and inter-regional trade, reduce the cost of doing business and improve the flow of foreign direct investment and ultimately increasing growth and prosperity of the region.
And home affairs minister Edgar Lungu said the Katima Mulilo border post was almost turning into a white elephant in the MMD regime.
He said the border post would ease the movement of the people of Namibia and Zambia especially after the signing of the SADC Protocol by Zambia.
And Western Province minister Mwaliteta said the opening of the border showed the government's commitment to infrastructure development which was critical for social and economic development.
ZRA director general Berlin Msiska said good border facilities would help improve the way the institution conducted its business through increased inspection capacity of targeted traffic.
And a Namibian representative, Cletus Sipapela, said his country was greatly indebted to Zambia for its past assistance during the liberation struggle.
Labels: ALEXANDER CHIKWANDA, CLETUS SIPAPELA, INFRASTRUCTURE, TRADE
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Sata has shamed critics - Katele
By Ernest Chanda
Sat 24 Nov. 2012, 10:50 CAT
KATELE Kalumba says President Michael Sata has shamed his critics in the way he has shown practical commitment to infrastructure development across the country.
Dr Kalumba, who is former Chienge MMD member of parliament and
now village headman Natende Walushiba in the same area, said President Sata had picked up from where Dr Kenneth Kaunda left.
"I'm not a cheerleader for the President, but as a matter of analysis, the man started at point zero in 2001. And progressively he was able to touch on the core nerve of the Zambian people in terms of the basic things they needed to be done. We are moving away from abstract concepts of development to very practical issues where you get water which is needed by the people," Dr Kalumba said in an interview yesterday.
"He is a good reader of the Zambian people's sentiments in terms of meeting their basic needs. And also he is a good reader of the Zambian institutions, their capacity or incapacity. And he was able to articulate this publicly when most of the people were attacking him; 'no he can't be president'. But there he is as President of the Republic of Zambia."
On the Link Zambia 8000 road project which President Sata launched in September, Dr Kalumba described it as a hope for rural Zambia.
He said no one could argue over the question of developing the national infrastructure.
"We have to move goods and services, we have to move people. I think the vision that President Sata has pronounced himself on is a really fundamental filling in of a major gap in our national development," he said.
"First Republican president Kaunda started on the concept well but he fell short of the final objective of linking the whole country. In respect, I'm pleased that President Sata has pronounced himself on linking Zambia in terms of road network linking every district of Zambia. That is a fundamental basis of development."
Dr Kalumba however cautioned government critics against derailing the development process.
He said people should avoid political quarrels and support the road infrastructure development programme.
"But I hope we won't have too many political doomsayers who want to frustrate government. These rural areas really want to see that happening. We have always said we want to develop the northern tourist circuit, but you can't do that without the road network. For example, linking Nchelenge right up to Kaputa, Mporokoso and Nsumbu up to Mbala; that's the Northern Circuit for tourism," said Dr Kalumba.
"Being a visionary, President Sata has been inspirational by saying, 'we can get there, I know it is difficult but we can get there'. He focuses on the practical things, things that make a difference in the day-to-day life of our families: 'Can my child go to school? Can my child be treated when he falls ill? Can we avoid defilement of our children? Can we get from point A to point B?' This is the man I know."
Labels: INFRASTRUCTURE, KATELE KALUMBA, MICHAEL SATA
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Lusaka multi-facility economic zone gets $5m infrastructure
By Henry Sinyangwe
Fri 14 Sep. 2012, 10:20 CAT
INFRASTRUCTURE worth over US$5 million has so far been put up in the first stage of the Lusaka East Multi-Facility Economic Zone. And Zambia-China Economic and Trade Cooperation Zone general manager Zan Baosen has called on local investors to take advantage of the facility and invest in the area.
Zan said the US$5 million had been used to construct a road and an initial structure at the site. He also said about eight foreign investors had expressed interest to invest in the area.
"We treat all the investors the same regardless of where they are coming from. And the minimum amount to invest in this place is US $500,000 because we need to enhance the industrial image, so one needs to have enough initial capital to maintain the place," said Zan.
Meanwhile, commerce permanent secretary Stephen Mwansa says the government was putting up roads infrastructure in rural areas to enable easy accessibility to all parts of the country by investors.
"The idea is to ensure that every part of Zambia is accessible. At least the trunk roads, once they are done, they will make it easy to be able to deal with secondary roads and feeder roads to allow access to every part of Zambia and bring development into the hinterland of Zambia," Mwansa said.
He said most of the money from the US$500 million Euro-bond which has since received a B+ rating from global rating agency Fitch, and soon to be issued, would go towards road infrastructure.
"Government is putting in as much resources as possible and recently you heard that government is floating the Euro-bond to the value of $500 million and most of that will go towards infrastructure development, and especially road infrastructure. That is the broad-based vision which is to make Zambia a good place to do business and live and we will be able to attract more investment into the rural areas by making sure that these places are passable, and they have the basic infrastructure to make somebody live a normal life," said Mwansa.
Labels: BONDS, INFRASTRUCTURE, LUSAKA, MFEZ, ROADS
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KK predicts Zambia as next southern African economic hub
TIME PUBLISHED - Monday, September 10, 2012, 9:17 am
FIRST President Kenneth Kaunda says he is hopeful that Zambia will soon be one of the economic hubs of southern Africa following President Sata’s intentions to revamp most of the defunct industries.
Dr Kaunda was speaking during a service at the United Church of Zambia(UCZ) Northrise congregation in Ndola yesterday.
“We are lucky that our President is a true son of Zambia and knows the importance of reviving and maintaining the industries we once had,” he said.
He said the problem of unemployment will be solved once industries like Mwinilunga Pineapple Plant, Mansa Batteries, Luangwa Bicycle Assembly in Eastern Province and Nitrogen Chemicals of Zambia in Kafue are revamped.
“We are suffering because investors are enriching their countries when we have the capacity to improve our lives,” he said.
Dr Kaunda, who also took time to interact with Sunday schoolchildren, did not leave out his usual message of peace.
He said Zambia is one of the few countries that enjoy peace, making it an envy of the region.
He said the motto “One Zambia, one Nation” should be the foundation on which the country should stand.
And congregants, especially children and youths, were happy that Dr Kaunda spared time to attend the service with them.
Busaka Kalima, a member of the girls brigade, said it was her first time to see Dr Kaunda whom she described as her hero.
“I am very excited to see him in person. I have always just seen him on television,”she said.
[Zambia Daily Mail]
Labels: INFRASTRUCTURE, KENNETH KAUNDA, REGIONAL INTEGRATION
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South Africa and Angola to collaborate on infrastructure development
July 22, 2012
Luanda, Angola
South Africa and Angola, through the Regional Spatial Development Initiative Programme (RSDIP) and the Industrial Development Institute of Angola (IDIA), have signed an agreement on technical cooperation.
The agreement is aimed at further stimulating infrastructure development in Angola, according to South African deputy Minister of Trade and Industry, Elizabeth Thabethe on Sunday.
“The intention of the agreement is to support the infrastructure development that is currently taking place in Angola and make sure that small and big industries are supported through such programmes,” Thabethe said.
Speaking during the signing ceremony, Thabethe said the South African government was committed to taking the implementation of the programme to the next level, as infrastructure development was high on Pretoria’s priority list.
Angola’s deputy Minister of Geology, Mines and Industry, Kiala Gabriel, said the agreement would assist with the infrastructure backlog that his country was currently facing.
“We acknowledge the work done by the South African government and businesses in our country. We are now saying our market is ready for investment and cooperation with other countries,” Gabriel said.
The agreement emanates from the Memorandum of Understanding on Trade and Industrial Cooperation the Minister of Trade and Industry Rob Davies and his counterpart in Angola signed in 2009.
The agreement also marks a great step forward for South Africa – Angola relations. South Africa had until 2009 largely ignored the Angolan market and South African business activity in that country was mostly driven by private businesses mainly in the IT and financial sectors and such businesses rarely liaised with the South African government.
The move also opens great opportunities for an ailing South African economy, with Angola needing an estimated ZAR 20bn spending on infrastructure following years of civil war. Angola is also a top exporter of oil and draws the greatest foreign direct investment (FDI) on the African continent; mostly from China, Russia and Brazil.
- Political Analysis South Africa/APA/SAN
Labels: ANGOLA, INFRASTRUCTURE, SOUTH AFRICA
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Infrastructure key, says Nkana mall developer
By Misheck Wangwe in Kitwe
Tue 04 Sep. 2012, 19:16 CAT
THE developers of the US $20 million (K100 billion) ultra-modern Nkana Shopping Mall in Kitwe say there is need to pay particular attention to infrastructure development which is the key to the attainment of sustainable development in the country.
Speaking during the official launch of the construction of Nkana Mall at the Civic Centre in Kitwe yesterday, Akrasi properties managing director Steven Voyiatzis said there was need to strengthen the commercial life in the City of Kitwe and Zambia as a whole for the country to see tangible development.
"Our company, Akrasi properties limited, strongly believes that the economic sector plays an outstanding role and no social or political progress is successful and sustainable without economic development," Voyiatzis.
He said the company was confident that the government would facilitate the introduction of good construction works, introduce good laws for the investors, issue necessary instructions and regulations for the enhancement of infrastructure development.
Voyiatzis said investors should bravely come forward and work hand-in-hand with the government and the Kitwe City Council in rebuilding the city and the country.
"There is no doubt that this significant project will be a turning point for the concepts of renewal and modernisation and for working and marketing methods. The project will make retail and commercial working standards, systems and methods better and easier. Commercial dealings will be handled in a modern way," he said.
Voyiatzis said for the design and construction of the mall, Akrasi had appointed one of the leading contractors, Mohamed Salama and Mohammed Mousa, chief executive officer and directors of Flame, respectively.
Kitwe mayor Chileshe Bweupe said the commencement of the construction of the mall had brought a sigh of relief in the residents of Kitwe because the site which was regarded as a white elephant would become a source of pride for them.
"I have said at so many fora that the great city of Kitwe has been a sleeping giant which previously has lacked proper infrastructure development in the past," Bweupe said.
Labels: INFRASTRUCTURE, KITWE
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‘Landlocked no curse’ – Mugabe
August 5, 2012 | Filed under: Local News | Posted by: web editor
By CHARLES MUSONDA
PRESIDENT Robert Mugabe has said Zimbabwe and Zambia should stop looking at their ‘land-locked’ geographical position as a curse and work to turn it into an economic opportunity.
Officially opening the 86th Zambia Agricultural and Commercial Show in Lusaka Saturday, Mugabe suggested the southern African neighbours start considering themselves as “land-linked” as opposed to “land locked”.
“Being at the heart of the southern African region,” President Mugabe said, “Zimbabwe and Zambia offer a good location for regionally targeted industrial investments and infrastructure development projects.”
He added that opportunities for investors to undertake infrastructure development projects that are critical for industrial development and facilitation of competitive trade abound for the two neighbours.
“It is important for our two countries to prioritise inter-related infrastructure development projects in the transport, communications and energy sectors in order to increase the competitiveness of our productive sectors and facilitate trade,” Mr Mugabe said.
He said this when he officially opened the 86th Zambia Agricultural and Commercial Show in Lusaka yesterday on invitation from his Zambian counterpart Michael Sata.
President Mugabe restated that the government and people of Zimbabwe are profoundly thankful for the invitation to participate and preside over this year’s important agriculture event.
Mr Mugabe said the theme of this year’s show, ‘Building on today’s Prosperity’, is appropriate as it rightfully points to the Zambian economy’s potential in Southern Africa and the rest of the world.
“I am pleased to note that Zambia has continued to maintain a trade policy aimed at enhancing productivity and competitiveness of Zambian products, on both the domestic and international markets, in order to achieve higher levels of economic growth and development,” he said.
Mr Mugabe called for diversification of economic activities in the agricultural, mining, manufacturing, and service sectors by placing increased emphasis on value addition.
“Dependence on the production and export of primary commodities, whose demand and prices are externally driven, will not lead us to the economic growth paradise that we so desire,” he said.
On this score, Mr Mugabe is pleased to note that Zambia’s industrial policy aims at improving and facilitating investment in the manufacturing sector, which will lead to increased value addition and manufactured exports, job creation, and generation of foreign currency.
By using the same policy direction, the Zimbabwean government is also committed to driving the country through economic empowerment for the majority of its people.
“We therefore welcome bona fide investors from all over the world who wish to seize the investment opportunities in various sectors of our economy on a win-win basis for the benefit of our country and her people,” he said.
He added that the volume of trade between Zambia and Zimbabwe is continuously increasing and rose to US$300 million last year, up from US$220 million in 2010. President Sata toured the show also.
And KAPALA CHISUNKA reports that five companies have been awarded in different categories in this year’s 86th Agricultural and Commercial Show. The Zambia Sugar Plc walked away with Best Overall Exhibit, while the Zambia Information Communication and Technology Authority (ZICTA) was awarded for the best interpretation of this year’s theme.
Best International Exhibit went to Afrox Limited and Commercial category’s men in Zambia trophy went to Sylva Catering Services while Eastern Province walked away with the National Productivity award in the Agriculture category. The Cattle Competition Category was given to Zambeef.
Meanwhile, President Michael Sata and visiting Zimbabwean President Robert Mugabe toured the stands separately.
The two Presidents then proceeded for lunch hosted in their honour before returning to the main arena in the afternoon for the official opening of the show.
Labels: INFRASTRUCTURE, MICHAEL SATA, ROBERT MUGABE, ZAMBIA AGRICULTURE AND COMMERCIAL SHOW
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Being land-locked is no curse: Mugabe
05/08/2012 00:00:00
by
Zambia Daily Mail PRESIDENT Robert Mugabe has said Zimbabwe and Zambia should stop looking at their ‘land-locked’ geographical position as a curse and
work to turn it into an economic opportunity.Officially opening the
86th Zambia Agricultural and Commercial Show in Lusaka Saturday, Mugabe suggested the southern African neighbours start considering themselves as
“land-linked” as opposed to “land locked”.
“Being at the heart of the southern African region,” President Mugabe said, “Zimbabwe and Zambia offer a good location for regionally targeted industrial investments and infrastructure development projects.”
He added that opportunities for investors to undertake infrastructure development projects that are critical for industrial development and facilitation of competitive trade abound for the two neighbours.
“It is important for our two countries to prioritise inter-related infrastructure development projects in the transport, communications and energy sectors in order to increase the competitiveness of our productive sectors and facilitate trade,” he said.
The Zimbabwean leader said the theme of this year’s show, ‘Building on today’s Prosperity’, was appropriate as it pointed to the Zambian economy’s potential in Southern Africa and the rest of the world.
“I am pleased to note that Zambia has continued to maintain a trade policy aimed at enhancing productivity and competitiveness of Zambian products, on both the domestic and international markets, in order to achieve higher levels of economic growth and development,” he said.
He also called for diversification of economic activities in the agricultural, mining, manufacturing, and service sectors by placing increased emphasis on value addition.
“Dependence on the production and export of primary commodities, whose demand and prices are externally driven, will not lead us to the economic growth paradise that we so desire,” he said.
He commended Zambia’s industrial policy which aims at improving and facilitating investment in the manufacturing sector, which will lead to increased value addition and manufactured exports, job creation, and generation of foreign currency.
By using the same policy direction, the Zimbabwean government was also committed to driving the country through economic empowerment for the majority of its people, Mugabe added.
“We therefore welcome bona fide investors from all over the world who wish to seize the investment opportunities in various sectors of our economy on a win-win basis for the benefit of our country and her people,” he said.
He added that the volume of trade between Zambia and Zimbabwe is continuously increasing and rose to US$300 million last year, up from US$220 million in 2010.
Labels: INFRASTRUCTURE, ROBERT MUGABE, ZAMBIA AGRICULTURE AND COMMERCIAL SHOW
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MMD and PF will never match infrastructure development under UNIP reign
TIME PUBLISHED - Friday, August 3, 2012, 10:45 am
United National Independence Party (UNIP) President Tilyenji Kaunda says the Movement for Multiparty Democracy (MMD) did not exhibit Christian values during its twenty year rule because abuse of authority and misapplication of funds was the order of the day.
Mr Kaunda observed that a number of irregularities in the use of public resources were reported in the Auditor General‘s report each year adding that some went scot free.
He commended the Patriotic Front (PF) government for exposing the MMD corrupt ways of governing the country.
Mr Kaunda was speaking when he officially opened the UNIP audit and mobilization meeting at Fern Guest House in Chipata yesterday.
“A lot of money went missing from government coffers, yet very little was done to curb the situation,’ he said.
Meanwhile, UNIP Vice President Njekwa Anamela said the MMD has nothing to show for its twenty year rule of the nation.
Mr Anamela said the MMD failed to deliver to the people of Zambia during its tenure and noted that last minute efforts to construct and rehabilitate roads failed because the party was already out of favour hence its losing the election.
He boasted that the MMD and the ruling PF have never and will never match what UNIP did in infrastructure development.
“Our party has a track record that will never be matched by even the PF which has already exhibited an incoherent manner of governing,” he said.
And Mr Anamela said there was need to have good agriculture policies that will motivate farmers in the country.
He stated that the capitalist way of thinking that the forces of demand and supply determine prices of products will lead to an economic downfall.
“Government should not allow farmers to be subjected to poor market prices of cotton on pretext that prices are determined by demand and supply,” he said.
The UNIP Vice President stated that it is sad that farmers who account for more that 50 percent of the Zambian population have been denied and government should have considered addressing the cotton issue.
ZANIS
Labels: INFRASTRUCTURE, TILYENJI KAUNDA, UNIP
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COMMENT - Translation: Africa must do what is in the interests of the oligarchs that rule the United States and 'the West'. They want our resources, and they need roads and energy to get them out. Securing Africa's resources for the oligarchs is the reason for the creation of AFRICOM.
Africa must focus on transportation facilities, energy - US
By Kabanda Chulu
Thu 14 June 2012, 13:23 CAT
AFRICAN countries must focus on developing energy and transportation facilities if they are to increase benefits from AGOA, says a senior United States government official.
In a teleconference with Zambian journalists on Tuesday ahead of the 11th African Growth and Opportunity Act (AGOA) forum on US-sub-Saharan Africa trade and economic cooperation, director of economic policy at the Bureau of African affairs, Amy Holman, who could, however, not give categorical answers to several questions asked, said the forum that started in 2001 has been the US government's signature trade initiative with Africa aimed at diversifying exports and expanding economic opportunities for Africans.
"AGOA aims at creating jobs and reducing barriers to trade and with 6,000 products receiving duty free treatment when exported to the US market. AGOA has helped generate hundreds of billions of dollars in trade and investment opportunities in its short lifespan," Holman said.
"To keep this momentum, this year's AGOA forum will focus on enhancing infrastructure development in Africa, which is a critical part of unleashing Africa's economic potential, including the tremendous intellectual, technical and business capital represented by Africa's youth, women and entrepreneurs."
And Director for African Affairs under the Office of the US Trade Representative Dean Coleman said AGOA provided a framework for improved access to US credit and technical expertise and establishes a high level dialogue on trade and investment.
"It is an integral component of the United States' overall trade with sub-Saharan Africa, increasing the two-way trade between the US and Africa to over US$95 billion in 2011, which is an increase from the US$13 billion recorded in 2010, thus bringing a total of US$716 billion in the two way trade since 2001," said Coleman.
The AGOA forum started earlier this month with a series of trade networking events and meetings aimed at linking African entrepreneurs and their US counterparts but the main conference will take place from June 14-15, and the Zambian delegation is led by commerce, trade and industry minister Bob Sichinga.
Labels: AGOA, ENERGY, INFRASTRUCTURE, TRANSPORT
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Economists call for strategic planning to uplift economy
By Nicholas Kalungi
Posted Thursday, June 7 2012 at 00:00
Different economy stakeholders have asked the government to undertake calculated methods of intervention for the economy to attain higher levels of growth in both the shorter and longer run.
Speaking at the State of the Economy public dialogue organised by 93.3 KFM in partnership with ACODE and supported by NTV and KCB in Kampala, the panelists said even though the NRM has had undisputed achievements, it is currently faced with multiple shortcomings which need planned and strategic approaches.
Dr Fred Muhumuza, a Makerere University economist said with the current state of the economy, the government should deliberately invest in infrastructure development for it to economically out match its neighbours.
“This country does not have the right infrastructure to favourably compete with her neighbors. The way forward is very simple. If you do not have the required infrastructure then you need massive investments. If you are so much in a deficit then you need a good strategy,” Dr Muhumuza said.
Prof Augustus Nuwagaba, an economist at Makerere University said Uganda had failed to implement its brilliant poverty eradication policies.
He said: “Our 1997 poverty eradication plan was wonderful, however, fifteen years down the road, we have failed to implement it and many people continue to live on the wrong side of the economy”.
Changing attitude
Meanwhile, Mr Francis Kamulegeya, a partner at PriceWaterhouseCoopers (pwc) said Uganda has a good tax system but needs to work more on changing people’s attitudes towards taxes.
“So many people are not paying taxes because they have negative perceptions. We need accountability and trust from the authorities. We need to improve on this for more revenue collection.”
On the issue of unemployment and entrepreneurship, Mr Charles Ocici, the executive director of Enterprise Uganda said: “Young people should stop looking at employment as an address outside home. Truth is that there are not enough jobs. Let us begin from our homes with small businesses. Everyone should have a mindset of an investor if we are to address this problem.”
nikalungi@ug.nationmedia.com
Labels: ECONOMY, INFRASTRUCTURE, UGANDA
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Zinara collects US$57m in toll fees
Saturday, 19 May 2012 00:00
Peter Matambanadzo Senior Reporter
A total of US$57 million in toll fees has been collected since the toll system was started three years ago. In a statement yesterday on the collection and utilisation of toll fees, Secretary for Transport, Communications and Infrastructural Development Mr Partson Mbiriri said US$57 million was collected from August 18, 2009 to April 2012.
“Since we started collecting on August 18, 2009 to April 10, 2012 the Zimbabwe Revenue Authority has collected US$56 552 513,39 and remitted a total of sum of US$47 026 318,83 from toll fees to Zinara after retaining 10 percent for administration purposes and US$49 000 for security each month,” the statement reads.
During the same period, Zinara in turn disbursed US$34 million to the Department of Roads for regional, primary and part of the secondary road network maintenance.
The Ministry of Transport, Communications and Infrastructural Development said US$16,3 million went towards routine road maintenance, US$10,2 million to road dualisation and road
rehabilitation of the Harare-Masvingo Road, Harare-Gweru Road to Norton and Asphalt overlay from Tynwald and the round about near Snake Park.
At least US$2,9 million was used for construction and improvements of temporary tollgate shelters, construction of detours, road widening sites, traffic counts and purchase of office equipment, while US$1,6 million for purchase of 48 pick up trucks and 14 medium size lorries and vehicle maintenance and other activities.
The Harare Airport Road expenditure was US$2 million and a further US$164 447 was used for borehole drilling, fuel procurement and domestic travel expenses.
The Ministry said US$7,8 million was used for the repayment of a loan to the Ministry of Finance through the Infrastructural Development Bank of Zimbabwe.
The money had been borrowed to fund the road dualisation of Harare-Masvingo and Harare Gweru roads. Zinara recently came under fire for blowing over three times what the law allows it to spend on itself in 2010.
The Office of the Comptroller and Auditor-General in a draft audit report for 2010 noted that Zinara was allowed, under the Roads Act, to spend only 2,5 percent of the money it collected for the roads fund on administration, but it spent eight percent.
The Auditor-General said the amount could have been spent on roads.
The law expects Zinara to spend at least 97,5 percent of what it collects in tolls, vehicle licence fees, fuel levies, overload fees and transit coupon fees on maintaining and extending Zimbabwe’s road system.
While the Auditor-General made no allegations of a criminal nature it was concerned that this overspending was done without the written authority of the parent ministry, that of Transport, Communications and Infrastructure Development.
Zinara collects money for Government’s roads pool and distributes it to councils and the District Development Fund for road maintenance.
Labels: INFRASTRUCTURE, TOLL ROADS, ZINARA
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Malawi officials in Mozambique to discuss Nsanje port
By Nyasa Times Reporter
Four delegates from Malawi’s Ministry of Transport and Infrastructure Development led by Minister Sidik Mia are in Mozambique to discuss with authorities of the most strategic country in the entire Nsanje world inland Port which has been unused since it was launched in October 2011.
This is the 11th of joint technical meeting on Shire Zambezi waterway project between the countries involved and has been facilitated by the regional trade block, Comesa.
Transport Minister Mia confirmed the development but refused to shed more light until he comes back from the meeting.
The Malawian inland port entails linking to Mozambican ports on the Indian Ocean through the Shire and Zambezi rivers. But the Mozambique government has demanded an inclusive feasibility study on the navigability of the Zambezi and shire waterway before they can buy into the project.
The Shire River borders Malawi and Mozambique to the south and flows into the Zambezi River before feeding into the Indian Ocean via Chinde port in Mozambique. The Malawian inland port which is funded by the Africa Development Bank, World Bank, European Union and the Japanese government is about 238 km from Chinde.
President Bingu wa Mutharika sees the Shire-Zambezi waterway as a key route for Malawian trade and expressed hopes that it would also serve countries in the region.
Malawi has already completed the first phase of the construction of the port of Nsanje, which is being undertaken by Portuguese contractor Mota Engil. Traders have moved into the area around the port, buying up land to set up businesses. The proposed developments include warehouses, office blocks, houses and hotels.
The government says Malawi may save $175m of its total annual import bill when the new port becomes fully operational. The government hopes that the reduced transport costs will facilitate increased production of agricultural crops such as maize, cassava, sweet potatoes and rice.
Malawi’s transport ministry senior bureaucrat, Victor Lungu, who is part of the delegation to Mozambique remain optimistic that a solution to the standoff is within reach.
Labels: BINGU WA MUTHARIKA, COMESA, INFRASTRUCTURE, MALAWI, MOZAMBIQUE, SHIRE-ZAMBEZI WATERWAY
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Mpezeni urges Government to rehabilitate, construct roads
TIME PUBLISHED - Sunday, November 13, 2011, 6:17 am
Paramount Chief Mpezeni of the Ngoni people of Eastern Province has appealed to government to draw up a programme of constructing and rehabilitating roads in all parts of the country.
Paramount chief Mpezeni said road infrastructure was the driving force toward economic development because they connect productive areas to markets. He told the media at his Ependukeni palace during the week that all sectors of the economy depend on a good road network hence the need to improve road infrastructure.
Meanwhile, paramount chief Mpezeni has commended government for rehabilitating roads in his area.
He noted that the Patriotic Front government had already started showing its commitment to improving the road sector.
And a senior citizen, Webster Shawa, urged the Patriotic Front (PF) government to diversify crop production by moving away from promoting maize production only.
Mr. Shawa noted that until research for alternative crops was done and markets found for these crops, the agricultural sector will continue to face challenges.
He said the province required positive agricultural policies for economic growth.
ZANIS
Labels: CHIEF MPEZENI, EASTERN PROVINCE, INFRASTRUCTURE, NGONI, ROADS
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KK on a reconciliation mission to Angola
By Bright Mukwasa
Thu 20 Oct. 2011, 14:00 CAT
PRESIDENT Michael Sata has sent first Republican president Kenneth Kaunda to Angola to apologise to that government over the MMD's treacherous conduct during that country's civil war led by the late rebel leader Jonas Savimbi.
Speaking at State House yesterday when he received credentials from Sudan, Angola, Royal Kingdom of Norway, South Korea and Finland envoys, President Sata apologised to Angola on behalf of Zambia.
"I must apologise that MMD was very treacherous during your struggle against our late brother Savimbi. I apologise on behalf of Zambia that what our colleagues in MMD did was fraudulent, was greed.
"And as I am talking, our first president Dr Kenneth Kaunda is in Angola. I sent him as my envoy to go and personally apologise to the President," President Sata said.
Savimbi was the founder of the UNITA movement in March 1966, that first waged a guerrilla war against Portuguese colonial rule between 1966-1974, then confronted the rival Movement for the Liberation of the People of Angola (MPLA) during the decolonisation conflict between 1974 and 1975. After independence in 1975, Savimbi fought the ruling MPLA in the Angolan civil war until his death in a clash with government troops in 2002.
"Is it not a shame that Angola will be developing an US$8 million refinery and we are in Zambia and we are not benefiting from what Angola is doing. Through that we will be meeting my brother or send some people we want to link by road, by railway to your great country and see how we can strengthen our mutual benefits."
President Sata said Zambia and Angola had similar problems which had forced some of the people from that country to run into Zambia and there was need to strengthen the relationship of the two governments.
"Those who don't want to go back to Angola, this is their country, they can stay. They are Africans. Those who want to go, they can go. This question of refugees must come to an end because in borderlines people cultivate in Angola, others cultivate in Zambia, people marry in Angola, others marry in Zambia there's no passport when they are doing those."
And President Sata called on African countries to strengthen their co-operations in various areas.
He said his government would also consider opening up missions in countries where there was none.
"The reason we don't cement our relations Africans it's one-way traffic. So we need to have two-way traffic. The Europeans one time they had a plan route sea to sea, Cape to Cairo. How have we failed to achieve that? We understand the difficulties in which your country is going through and in one way or the other, we might not be having armed conflict but we also have the same thing," President Sata said when he received credentials from Sudanese Ambassador-designate Mohammed Isa Edam Balila.
Labels: ANGOLA, INFRASTRUCTURE, KENNETH KAUNDA, MICHAEL SATA
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PF to dedicate one third of the national budget to infrastructure development-Sichinga
TIME PUBLISHED - Wednesday, August 17, 2011, 1:30 pm
The Patriotic Front (PF) has promised to dedicate one third of the national budget to infrastructure development once voted into power.
Speaking during the ongoing political debates organised by the Economic Association of Zambia to highlight various political parties’ strategies for development of the country last evening, PF representative Bob Sichinga said the MMD government has neglected infrastructure development during the last 20 year. He says infrastructure development is critical to the sustenance of various sectors of the economy.
Mr. Sichinga says the PF would institute measures to curb corruption in the construction of major infrastructure like roads to ensure that only high quality infrastructure is put in place.
He says most of the roads that had been constructed or rehabilitated under the MMD government were of low standards because the process of engaging contractors was marred with corruption.
He stated the MMD had been given enough time to implement infrastructure development projects but had failed and therefore there is no need to vote the party back into office because nothing would be done differently.
And Mr. Sichinga says the PF would convert the Zambia National Broadcasting Corporation (ZNBC) into a real public broadcaster as opposed to the current situation where the national broadcaster is a mouthpiece of the ruling MMD.
He says his party would also immediately implement the freedom of information (FOI) Bill as it realized that Zambians have the right to information.
Mr. Sichinga further adds the MMD leadership was deliberately delaying the implementation of the FOI Bill because the party was engaged in activities that are not transparent.
Mr. Sichinga further stated the PF would review the railway and aviation sectors to enhance operations and offer relief to the road network.
QFM
Labels: BUDGET, INFRASTRUCTURE, PF, ROADS
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