1. Editorial Comments
Consumers in Zambia have, in the past, complained of erratic fuel supply, high cost of petrol, diesel etc. Hence, the government has had to come up with a solution to avoid such situations, which practically put the nation’s economy at standstill. That is why the Energy Regulation Board (ERB) was formed to act as an autonomous body, to enforce technical standards vis-à-vis the set standards covering quality, safety and reliability of energy and fuel supplies. Electricity consumers in Zambia hope that ERB will look into Kafue Gorge and Kariba North Bank as well as those responsible for building more power stations to ensure adequate power supply and reasonable tariff charges.

Another major issue of concern is the waste materials that are causing serious environmental problems. Environmental Council of Zambia (ECZ) and Zambia Consumers Association (ZACA) are taking it seriously that industries have been indulged in releasing waste materials into the environment, which might cause long-term damage.

Besides, consumer bodies also hope that government would ratify the global tobacco control treaty. The global tobacco treaty sponsored by the World Health Organisation (WHO) bans advertising, promotion and sponsorship of tobacco and protects public health policy from tobacco industry interference. The treaty took effect on February 27, 2005, which more than 85 countries have ratified it.

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2. Zambia Ratifies the Framework Convention on Tobacco Control
The Framework Convention on Tobacco Control (FCTC) is the WHO’s first public health treaty, which was collectively adopted by the 192 member states on May 21, 2003. The FCTC establishes important precedents for the international regulation of the corporations that compromise human and conservational rights.

ZACA and Consumer Unity and Trust Society (CUTS), in association with the Network for Accountability of Tobacco Transnational (NATT), organised a campaign and lobby meeting at the Zambia Competition Commission (ZCC) boardroom in Lusaka, Zambia, on October 07, 2005. The representatives from several civil society organisations (CSOs) and Zambian government attended the meeting. It aimed to address the pressing need for Zambian government to ratify the global tobacco treaty and devising methods for implementing the Corporate Accountability International (CAI).

Earlier, tobacco control activists from CAI, ZACA, Environmental Rights Action (ERA) and members of the NATT, as part of an African Ratification tour, called on the government officials and Parliamentarians’ to push for the prompt ratification of the treaty by Zambia.

The global tobacco treaty, which took effect on February 27, 2005, and more than 85 countries have ratified it, bans advertising, promotion and sponsorship and protects public health policy from tobacco industry interference.

The Zambian government continues to drag its feet in ratifying the tobacco industry, despite its active participation in the negotiations of the FCTC and spending huge resources on delegates that represented the country in the negotiations.

The first FCTC Conference of the Parties (COP) has been fixed for February 6-17, 2006. It is mandatory for Zambia to participate as a voting member during the COP, provided that it must have ratified the FCTC by November 8, 2005.

According to NATT members, it is critical that tobacco-growing countries ratify the global treaty. NATT members are encouraging tobacco growing countries in Africa and elsewhere to become parties to the treaty as quickly as possible in order to have a seat at the table, attempt to play a role in determining the future of giant tobacco, and prepare for the impending change.

In his opening remarks, Muyunda Ililonga of ZACA mentioned that Zambia as a tobacco growing country should be concerned at the first FCTC conference because key decisions regarding the rules governing the treaty and its funding will be established at this meeting.

Megan of CAI said that the treaty would save millions of lives and change the way giant tobacco corporations around the world operate. As the negotiations on the tobacco treaty began, global tobacco corporations have attempted to wash it down.

Environmental Rights Action\friends of the Earth representative from Nigeria, Akin bode Oluwafemi, alleged that giant tobacco corporations have sought to expand aggressively into African countries and the far south whose growth domestic product (GDP) is far less than the investments made by giant tobacco. Consequently, he stressed the urgency with which Zambia should take this issue. Finally, it is vital that nations of the world ratify the FCTC by November 2006, because important decisions regarding funding and implementation will be made at the first COP in February 2006. This will be a conference attended only by countries that would have ratified the global tobacco treaty. The success of the treaty demonstrates that by working together, the nations of the world can stop irresponsible and dangerous actions by tobacco corporations.

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3. Impact of Erratic Fuel Supply on the Economy
Zambia has experienced acute fuel shortages countrywide for four weeks during September/October. The fuel shortage was as a result of the closure of Indeni Petroleum Refinery in Ndola, the country’s sole crude oil process factory. It was reported that the refinery was closed because there was no chemical called Naphtha that is used to purify a Hydro Treater component at the plant. The much-needed Naphtha was expected to be available sometimes in November. Lack of oil reserve over the past several years had been the most crucial factor that caused the erratic supply of fuel in the country.

The impact of this four-week long erratic supply of fuel had a crippling effect on various sectors of the economy. The worst affected being the transport sector where thousands of people across the country had to face transport difficulties. Bus crews on local routes had taken advantage of the situation to increase fares by as much as 50 percent in some cases.

The Millers Association of Zambia (MAZ) said the industry had not been spared, as significant loses were recorded by various milling companies, and failed to deliver mealie-meal to several parts of the country.

The Zambia Association of Manufacturers said that companies in this sector also had their businesses adversely affected and this was not only in the production of goods and services but also in the distribution process.

The Mining sector had also been severely hit by the fuel crisis with several major and small-scale mining firms suffering revenue losses.

In the Agriculture sector, the crisis affected the distribution of agro-inputs to farmers in time for the farming season that started in early October. Most of all, commercial farmers largely depend on mechanised equipment.

The persistence erratic supply of jet A1 fuel spread to affect the aviation sector where it forced some local airlines to start rescheduling their flights. Zambian Airways chief Executive, Don Macdonald said the erratic supply of oil did not only result in passenger flight delays but also had an effect on the number of the visitors coming to Zambia. He however stated that the sector recognises the efforts made by both government and BP Zambia in easing the supply situation for the airlines and the economy as a whole.

The government tried as much as possible to correct the situation. In addition to the waiving of the five percent duty on all products and appointing a five-member ministerial team, a forensic and technical team to undertake verification process of Indeni’s management of resources amid allegations of heavy financial blunders.

Source: Zambia Daily Mail (ZDM 09/10/05)

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4. Zesco Load Shedding: Effects on Consumers
Electricity consumers in Zambia have been experiencing power cuts as a result of the national load shedding that is currently going on countrywide by the Zambia Electricity Supply Corporation (ZESCO), a National Utility Company. This load shedding is seemingly affecting both domestic users as well as industrial users. Recently, in Lusaka, scores of consumers held a public discussion with ZESCO management to address the company’s on going load shedding exercise. According to the reports, they have been complaining that the exercise was being done selectively though high-density areas are more affected than low-density areas.

On the other hand, ZESCO denied load shedding was being implemented selectively. Load shedding was meant to ensure that ZESCO did not cause damage to the equipment, adding that the national control centre determines the bulk deficit on the system. Without load shedding, the electrical power system would collapse due to imbalance. Load shedding is not aimed at causing inconvenience to the customers. There is currently a shortfall in electricity supply due to the rehabilitation works on major hydroelectric power stations. In the mean time, ZESCO is spending about US$1mn on power importation alone from neighbouring countries, which is expensive but necessary for the country.

ZESCO said the demand for power in Zambia had increased with the simultaneous increase in economic activities in the country. Some of the commercial activities, including new projects cited are: the Chilanga cement expansion project, a new steel plant in Kafue; an Iron plant to be set up in Kabwe; Zambezi portlands’ cement factory in Ndola; Lumwana mine in Solwezi; and housing estate development such as Lilayi development and Meanwood housing that would require additional power.

ZESCO is mindful of these projects and have taken into account while during planning fulfill he need to start building power stations and lines ahead of increasing commercial activities. This is why ZESCO is upgrading its machines at Kafue Gorge and Kariba North Bank.

Meanwhile, ZESCO says the US$250mn Power Rehabilitation Programme (PRP) embarked on by the utility company will only be concluded towards the end of 2007.

However, according to sources from ZESCO, there has been no clear schedule for power cuts. This is attributed to ZESCO importing power from South Africa, which is not guaranteed because the South African electricity company would only export power after meeting local demand and having enough for export, said the source.

The company does receive complaints on electrical appliance damages that may be caused due to abrupt power cuts and lack of prior notification, but refuses to be held responsible. According to the company sources, load shedding is taken as a natural issue and no one could be held responsible in such a case. Instead, the consumers are advised to buy protective gadgets for their electrical appliances.

Source: The Post, (22/10/05)

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5. Formation of a Zambia National Airline: Prospects and Constraints
Zambia’s Tourism industry possesses good potential to provide employment and income opportunities for the people if the sector is properly planned and managed. Tourism in Zambia is expected to become one of the three pillars of the economy together with agriculture and mining.

As tourism and national airline complement each other; it is difficult to promote tourism if you do not have a national airline. Most tourists would like to travel on the national airline of the holiday destination. This prominent role gives a psychological assurance to the tourist that within no time he/she will be in the country. As for those not traveling, it gives a sense of pride just by seeing the national flag and colours.

With the Visit Zambia 2005 campaign, the current air service providers may not cope with the current increase in tourism demand. In addition, with the current aviation fuel problem where foreign airlines like British Airways allegedly requesting the government to waive landing, over flying and navigation fees for them to resume cargo flights into Zambia, this flight suspension may be extended to the passenger flights as well.

Already, there exists a problem for the passengers failing to secure seats out of Lusaka to other parts of the world. As a temporary solution, a few flights are forced to travel to Harare and Johannesburg for disembarking the passengers to help them catch flight for Europe.

Increased pressure from the private sector coupled with a growing tourism inflow into the country has prompted the Zambian government to consider reviving the national airline before the end of the year.

The government closed Zambia Airways in 1995, citing a heavy debt burden to creditors and other service providers. The airline had not been recapitalised since it was set up in 1967. Zambia’s first President, Kenneth Kaunda, recently urged the government to revive its national carrier. In response, the Transport and Communications Minister, Abel Chambeshi said that negotiations with foreign aviation experts to revive the national airline are in top gear.

Chambeshi told Parliament recently that the airline would be 90 percent private sector-owned, while the government would own a 20 percent ‘golden share’ to promote efficient services and competition in the industry.

He said although the government has mobilised some money to revive the national flag carrier and engaged aviation experts to seek partnerships with foreign airlines and experts, it relied on the private sector’s direct control to ensure profitability. “We are working towards reviving the airline as soon as we formalise discussions with various interest groups to enable us meet the demands for improved services as well as facilitate easy and reliable transport for our tourists”, he told the 155-member Parliament.

Tourism minister Patrick Kalifungwa said that the government had rescinded its earlier decision to leave the aviation services to foreign airlines because of the increased tourism traffic in Zambia and the need to provide services at affordable cost.

“We are consulting various airlines and aviation experts in Zambia and other parts of the world to enable us re-establish the Zambia Airways to meet the increasing number of tourists”, he said. “There has been increasing demand to transport various goods and services with reduced costs but we are lacking an airline of our own”, he added.

Aviation consultant Tom Ngenda said that consultations have been initiated with Irish carrier Aer Lingus and Virgin Atlantic, amongst others, ostensibly to set up the partnership. Virgin Atlantic would be expected to assist Zambia lease a Boeing 767 and an Airbus to service the Lusaka-London and Lusaka-Frankfurt routes. The Airbus 320 would be expected to service the Lusaka-Johannesburg route and other destinations in the region.

Source: Business Post (13/08/05)

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6. Barclays Bank’s Corporate Social Responsibility
It has been argued that taking up corporate social responsibility (CSR) is the best way business entities would express their appreciation and pay back to the community for the continued support they receive in addition to committing themselves in contributing to economic development and general welfare of the society. And Barclays Bank has just done that.

The Bank has set aside Zambian Kwacha 100mn (US$31, 412) for 30 community projects around the country. It has since embarked on a project called, ‘2005 Madd Activity’, which is aimed at assisting different communities in constructing make shift schools among other projects.

Head of Corporate Affairs, Simon Bota, said the project was in line with the Bank’s commitment to assist the community for sustainable development. Bota said that the project was started by 450 bank employees in which every year they would dedicate some time and resources to charity work. This was disclosed recently at Mwambula Settlement that has been in existence for 100 years without a school prompting the bank to build a makeshift.

Bota further added that the project would involve all executives departments traveling approximately 25 kilometers east of Lusaka in an area called Mwambula Settlement. He explained that a few months ago, members of the community got together and agreed to start an open-air school. So far, 200 potential students were registered between the ages of 4 and 25 and about 50-60 pupils turn up for school. The school will have two classes, one for nursery level and other for grade one.

A volunteer teacher John Nkandu commended the bank’s gesture saying it would go a long way in enhancing educational levels in the area and appealed to the business community to come to their rescue by donating schoolbooks, a library, help improve sanitation and other financial assistance.

And Mwanga Shachibamba, headman of Machinshi village, also commended Barclays Bank management for the kind gesture and also appealed to the business community to come to their aid. He said, “now that the Bank has constructed a make shift school, we shall need a clinic, and clean water in order to live a better life”.

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The news/stories in this Newsletter are compressed from several sources. The sources given are to be used as a reference for further information. CUTS-ARC and ZACA gladly welcome comments, suggestions and contributions from our esteemed readers.