1. Editorial Comments
The advent of liberlisation has resulted in a number of socio-economic problems for the Zambian consumers. While consumers may seem to be benefiting from product ranges and services, there is also a high incidence of consumer abuses. This is as a result of increased competition, coupled with poor regulatory and legal policies in the market place. There is a, therefore, greater need for consumer protection.

Further, it has become a practice for service providers and business community to reap profits from customers without any consideration for customer satisfaction. The situation needs to be addressed through a strong legal and regulatory framework, which will sustain both – business operations and consumer welfare. As is evident, traders and other business houses have taken advantage of the loopholes in the consumer protection laws and institutions, as in Section 12 of the Competition and Fair Trading Act, Cap 417 of 1994, which aim to give both consumers and sellers a fair deal.

Consumer Unity & Trust Society (CUTS) and Zambia Consumer Association (ZACA) have, for a long time now bemoaned the existing market practices that are disadvantageous for consumers. Hence, as a solution package, ZACA and CUTS have been demanding for strengthening the regulatory framework to investigate, litigate and monitor consumer abuses.

Editor

2. Poor Banking Services Haunt Consumers
The financial sector in Zambia has experienced regulatory and policy change, in an effort to ease business and private quality services to consumers. The sector has been cardinal with the rationale of enhancing services delivery to the consumers. However, consumers have continued receiving poor service delivery, high interest rates on borrowing, low interest rates on savings and high bank service charges.

The ZACA Executive Secretary, Muyunda Ililonga raised concerns over the Bank of Zambia’s “arms-length approach” in dispensing their regulatory duties”, adding that “the retail-banking sub-sector in Zambia was now characterised by congested bank, frequent breakdown of Automated Teller Machines (ATMs) and generally a long wait for service”. Customer guidance, in most banks, is also poor characterised by few members of staff, with poor public relations attitude, especially towards the less educated customers.

(Source: Zambia Daily Mail, 06.01.07)
 

3. Rising Fuel Prices
The price of fuel in Zambia is very unstable, and has been subjected to fluctuations as a result of the interference of market forces at the national and international levels. The instability, to a large extent, is a result of weak policies. The Energy Regulating Board (ERB), which is mandated to regulate energy prices, has often attributed the rise in fuel prices to the increase in the prices in the international market. Recently, the ERB announced an increase in the prices for petroleum products. However, any increase in the prices of the commodities is characterised by the absence of long-medium term strategies.

Zambia’s quest for industrialisation may suffer set backs in the absence of long-term fuel price stability mechanisms and strategic fuel reserves. It is feared that consistent fuel price increases may lead to high cost of doing business, consumer’s welfare, loss of investor’s confidence etc.

(Source: Zambia Daily Mail, 24.01.07)

4. Continued Water Blues
Provision of water and sewerage services was traditionally the responsibility of the government through the Ministry of Local Government and Housing. In order to address water and sewerage issues, institutions in provincial centres such as the Lusaka Water and Sewerage Company for Lusaka Province is created. Despite these initiatives, persistent water shortages are still part of the lives for millions of Zambians, especially in semi-urban and rural areas.

Recently water blues have affected most parts of the country. For instance, Lusaka experienced persistent water blues in a number of townships, such as Chilenje and Libala. In addition, Chingola experienced water blues, which affected the provision of health services to the general public, as it led to the closure of some health institutions. Further, Siavonga District had also experienced persistent water blues, resulting in criticisms that the Southern Water and Sewerage Company has failed to provide water to the district.

(Source: Zambia Daily Mail, 15.01.07)

5. Maize Exports to Affect Consumers
The Zambian Government initiated a ban on maize and mealie-meal exports, in an effort to promote food security in the country. This has been criticised as being out of line with the liberalisation policy and the free market concept. The private sector urged the Government to lift the ban. In response, the Government authorised export of a maximum of 20,000 metric tonnes of mealie-meal. According to the Minister of Agriculture, Ben Kapita, the decision aims at creating space for the incoming crop and help millers realise some money for use in purchasing maize from farmers for the next harvest.

While the initiative to allow exports may be good for private sector development, it is a potential threat to the food security in the country and the stable price of maize and mealie-meal.

(Source: Zambia Daily Mail, 16.02.07)

6.Corporate Social Responsibility
Liberalisation and the reduced government role in the day-to-day affairs of its citizens have resulted in a number of dilemmas, ranging from social to economical. In Zambia, liberalisation is being associated with poor wages, counterfeit products, poor environmental considerations, poor workers’ rights, reduced government revenue, reduced social facilities, etc. Both the poor and the rich Zambians have been affected in the miseries as a result of foreign ownerships of firms and companies, aided and abetted with extreme poverty, diseases, HIV/AIDS, hunger, famine and disasters.

Borrowing from its definition, “corporate social responsibility (CSR)” means different things to different organisations and people in this regard, although there is considerable common ground between definitions. CSR may be termed as the continuing commitment by business to behave ethically and contribute to economic development, while improving the quality of life of the workers and their families as well as the local community and society at large.

CSR has become a mainstream term in sustainable development thinking. There is a need for business to move beyond the traditional approach of back-door lobbying to cleaner production and responsible entrepreneurship. The business community in Zambia has demonstrated little regard for Zambians and CSR issue has been defined in a very narrow way by it, so as to mean donations. However, CSR must go beyond small donations to contributing to the welfare of the Zambians.

(Contributed by Vladimir Chilinya)

7. Snapshots on Consumer Issues in Zambia