1. Editorial Comments
Zambia opened up its market to goods and services from
foreign countries in an effort to enhance consumer welfare through
provision of affordable and essential commodities, such as foodstuff,
clothing, medicines, electronics and electrical appliances etc.
However, it is not easy to assess whether Zambians actually benefited.
It is quite evident from current developments that a lot needs to be
done, because opening up of the economy has resulted into a number of
challenges for Zambia. Among them, the challenges of counterfeit and
sub-standards products are predominant.
The problem of such products has proved difficult
to address, mainly due to the fact that liberalisation was not
implemented alongside institutional reforms. Most institutions which
are expected to contribute significantly to the protection of
consumers – such as the Zambia Bureau of Standards (ZBS) – have been
criticised as being inefficient, due to the lack of modern equipments
and laboratories.
A consumer has, therefore, been left at the mercy
of traders. Some shops in Zambia display a notice: No Return, No
Refund. Most people have fallen prey to such high-handedness,
especially the illiterate ones due to the inadequacy of the existing
consumer protection law in Zambia.
Consumer Unity & Trust Society Africa Resource
Centre (CUTS ARC), Lusaka, and Zambia Consumer Association (ZACA) have
repeatedly bemoaned the lack of adequate legislation to monitor, probe
and take legal action against consumer abuses.
Editor
2.
Weak Environmental Regulation: A Health Hazard
Privatisation in Zambia has been widely criticised for having been
hastily undertaken. Recently, the river Kafue – one of Zambia’s
reliable source of water for both domestic and industrial purposes –
was reported to have been polluted by a large copper mining company.
Some people were reported to have suffered severe skin infections as a
result of this. The total number of affected people and animal life
has not been determined mainly as a result of unawareness and lack of
proper audit.
What is very astonishing about the entire incident
is the refusal by Konkola Copper Mines (KCM) to take responsibility
for its action and/or the Government to bring KCM to account. Such and
related incidences have occurred in the past in Zambia without
granting compensation to victims. The Environmental Council of Zambia
(ECZ) should be strengthened to adequately deal with cases of such
nature.
(Source: Zambia Daily Mail, 27.12.06)
3. Cement Price on a Steady Rise
The price of cement, which is the basic requirement of the
construction industry, has been on a steady rise. This has been
attributed to increased exports as a result of growing demand of the
products at the regional markets. Levy P Mwanawasa, President of the
Republic of Zambia, expressed disappointment at the continued rise in
cement prices and urged the investors to look beyond satisfying their
profit desires and contribute to the development of the country.
The continued rise in cement prices comes at a
time when Government has provided incentives to the construction
sector. The rise is, therefore, a negation of the expected benefits to
consumers. The cement industry is dominated by Chilanga Cement Private
Limited Company (PLC).
(Source: Zambia Daily Mail, 23.11.06)
4. Zambia to Benefit from Increased Banking
Services
The closure of most commercial banks in rural and
semi-urban areas in the 1990s was viewed as a challenge to the
economic development of Zambia. The country’s second largest economic
activity, namely, agriculture depended on the banking industry for its
survival and growth through loans and access to inputs.
Barclays Bank Zambia Plc, has announced that it
will open 15 branches countrywide in an expansion programme. Managing
Director of the bank, Danie Nel said that the expansion programme
would facilitate creation of 500-600 job opportunities for Zambians.
He said that this was a new innovative banking concept, which aims at
providing affordable banking to various sectors of the Zambian
economy.
(Source: Monitor and Digest, 27.10.06)
5.Inflation
to Remain Single Digit
The Bank of Zambia (BoZ) has indicated that the annual
inflation rate for 2007 is expected to continue on a single digit. Dr
Caleb Fundanga, BoZ Governor, said that there are a number of
challenges ahead, including the higher money supply growth in the last
half of 2006; the lagged cost-push effects of the recent Kwacha
depreciation; and the higher prices of petroleum products in light of
the Organisation of Petroleum Exporting Countries’ (OPEC) decision to
cut production. However, he expressed hope that the future would be
bright for Zambia to continue enjoying the benefits of single digit
inflation.
(Source: Zambia Daily Mail, 28.12.06)
6.Corporate Social Responsibility: STANCHART to Embark upon Health
Care
“Standard Chartered Bank, Zambia has identified health care as
priority on its Corporate Social Responsibility (CSR) Programme for
2007”, according to Thomas Aaker, Bank’s Managing Director. This was
mentioned when Standard Chartered Bank, in partnership with Women’s
Federation for World Peace (WFWP), presented hampers containing
nutritious food to 50 malnourished babies at Kamwala Clinic of Lusaka.
He said that the Bank’s focus on health issues could also be reflected
in its anti-malaria programme where it has distributed mosquito nets.
He also indicated that the company introduced a HIV/AIDS programme for
its employees, which is a clear demonstration of its commitment to
health issues.
(Contributed by Masheta Musamai)
7.
Snapshots on Consumer
Issues in Zambia
Looming Water
Blues
Water is an important commodity for human survival. However, water
blues have hit Lusaka and some parts of Northern Province of Zambia.
This is due to the technical difficulties at the main water storage
tank in Lusaka and the inconsistent electricity supply in Northern
Province. According to Simon Mwale, Public Relations Manager, Lusaka
Water and Sewerage Company (LWSC), the utility provider has been
working on the problems to ensure consistency in supply. The
inconsistent water supply may risk the outbreak of diarrhoeal
diseases, such as cholera and dysentery in the affected townships.
(The Zambia Daily Mail, 03.10.06)
Maize Prices Swell
Maize is the staple food for majority of Zambians and its
affordability is the key to survival of millions. The Zambia
Agriculture Marketing Corporation (ZAMAC) announced that rise in
maize prices were up to five percent in December 2006, which was
mainly caused by diminishing supply. While the strengthening of
maize prices may lead to increased earnings by producers, consumers
are said to lose out if maize prices are let to rise further.
(Source: Zambia Daily Mail, 12.12.06)
Consumers Lose Out on Strong Kwacha
The Zambian currency, Kwacha has continued to
depreciate against major currencies such as US dollar. In 2006, the
Kwacha recorded a gain of about 30 percent. This was due to the
strengthening of the local currency in 2006, which was expected to
benefit consumers due to cheap imported products. This, however, was
long awaited as most consumers did not experience the reduction in
essential commodity prices, which remained high.
(Source: Zambia Daily Mail, 28.12.06)
About the Newsletter
Consumer Watch newsletter is a joint initiative of
the CUTS ARC and ZACA, published with the objective of enhancing consumer
welfare through sensitisation, information dissemination and capacity
building of consumers, business entities and government. While addressing
consumer concerns, the newsletter focuses on bringing out issues such
as violation of consumer rights and measures to be taken by the relevant
authorities to protect stakeholders.
CUTS ARC and ZACA will strive to support and lobby
the Government and the stakeholders to ensure resumption of the process
to eventually enact a functional Consumer Protection Law in the country
and also establish a functional institutional mechanism to implement
the law. This is in line with the changes taking place in other countries
in the region in the wake of globalisation and liberalisation. Apart
from carrying consumer-related information, the publication will also
give an analysis on current consumer concerns in the country.
