1. Editorial Comments
The issue of consumer protection is gradually
gaining world wide prominence. It is no longer easy to gloss over
consumer issues, as there has been a realisation that interaction in
the market should result in mutual benefits to consumers and
businesses in a sustainable manner. As such, countries are
incorporating and consolidating issues of consumer rights and
protection in national legislation seemingly in line with the United
Nations Guidelines on Consumer Protection, 1985 though with a slow
pace.
The process to formulate a new Act to tackle issues of competition and
consumer protection in Zambia has been going on at a steady pace. The
Zambia Competition Commission (ZCC) – the body that presides over
competition matters in the economy – has continued its consultation
process with various stakeholders. The recent workshop held in
Livingstone, in May 2007, brought to the fore some major concerns and
aspirations of the stakeholders.
The proposed Competition and Consumer Protection Act should have, in
principle, sufficient provisions to protect consumers. However, it is
vital to note that the new Act seems unlikely to tackle matters of
consumer abuse in Zambia, as it only focuses on abuse resulting from
unfair trade practices (UTPs). Instead, it may be more effective to
have a Commission specifically targeted at consumer education and
protection, and harmonising the various pieces of legislation relating
to consumer protection.
Editor
2. Loopholes on Standards
The issue of consumer protection
will remain a challenge for Zambia, if the quality and standards
setting bodies continue to lack capacity and mandate. While consumers
have the responsibility to be cautious against fake and sub-standard
products, legal institutions have the responsibility to provide
standard products to consumers.
For example, Zambia like any other sub-Saharan African (SSA) country,
is largely affected by lack of clean drinking water. Technological
advancement in the purification of drinking water such as bottled
mineral water is expected to reduce some of the risks of drinking
water. However, this has not been the case with Zambia. Trading in
bottled mineral water has turned out to be a major business and the
list of companies producing and providing mineral water on the market
is expanding.
In practice, sub-standard and fake products have not been protected by
the Zambia Bureau of Standards (ZABS). The approved standards have to
be labelled ZS 388 but most of the products do not carry that approved
label.
(CUTS ARC)
3. Escalating Fuel Prices
Zambia has continued to experience hike in
fuel price, which is posing a serious challenge to the growth of the
economy and well-being of consumers. The recent announcement by the
Energy Regulation Board (ERB) that petrol and diesel prices had been
hiked from Zambian Kwacha 5,939 (US$1.5) per litre to Kwacha 6,513
(US$1.7) and Kwacha 5,595 (US$1.48) from Kwacha 5,204 (US$1.38)
respectively. The fuel price in Zambia is among the highest in the
region.
The Government has been called upon to reduce taxes on fuel so as to
cushion consumers. The Zambia Consumer Association (ZACA) has
condemned the increase arguing that despite the price dynamics, it is
the constitutional duty of the Government to safeguard its citizens
(consumers) from exploitative prices.
(Zambia Daily Mail, 13.04.07)
4. Erratic Power Supply
Zambia is one of the largest producers of hydro-electricity in the
region. In spite of that erratic power supply has been prevalent in
most places of the country in the name of load shedding. Moreover, the
utility provider charges high tariffs though fails to offer quality
service supply to its consumers.
For instance, in Livingstone, power cuts have continued with Zambia's
largest power utility, Zambia Electricity Supply Corporation (ZESCO),
citing the failure of one of the transformers at the Victoria Falls
power station as the main cause. While the utility company is
struggling to maintain its supply it has ambitiously taken over the
operations at Kariba North Bank power station.
(Zambia Daily Mail, 06.04.07)
5.Corporate Social Responsibility: Case of First Quantum Mine
In Zambia, a number of business organisations are involved in
projects or activities aimed at benefiting local communities, i.e.
education, health, sport etc. Zambia’s economy is still largely
dependent on mining, and there is concentration of capital
investments, labour etc. Hence much is expected from the mines in
relation to “Corporate Social Responsibility (CSR)”.
Konkola Copper Mines (KCM), First Quantum Mine (FQM), has taken up
steps to offer its return to the communities in the form of CSR. FQM
has set aside a sum of Kwacha one billion (US$265,934) for various
community development projects in its host city, Ndola for the year
2007. The money is earmarked to be used to rehabilitate roads, carry
out malaria control programmes, improving schools and sinking
boreholes in rural communities of the district.
(Zambia Daily Mail, 28.04.07)
6.
Snapshots on Consumer
Issues in Zambia
Street Vendors
Sucked
Lusaka City Council has swept the central business district from
street vendors in a move aimed at keeping the town clean and promote
law and order. The move has been welcomed by various stakeholders
including shop owners who have had the corridors of their outlets
crowded by street vendors.
The exercise will provide consumers in the central business district
more room to do their shopping without harassment from vendors who
display their merchandise along the streets. Further, food products
will be traded in markets where sanitary conditions are better and
thus will promote the health and safety of consumers.
(Contributed by Masheta Musamai)
Celtel Introduces
New Tariff Plans
Celtel, one of the leading mobile communications company in
Zambia, has introduced new tariff plans, which are Kwacha
denominated. The new denominations are expected to cater to various
categories of people according to their needs and financial
position. The new tariff plans are: the freedom; family; and
generation-X.
The tariff changes applied by Celtel received mixed feelings from
the public. Many subscribers have expressed concern that Celtel did
not consult its clients and many found the new tariffs confusing and
expensive. The recent concerns over the billing system add to the
growing concerns over poor services offered by mobile communication
sector, and Celtel, in particular.
(Contributed by Masheta Musamai)
Fluctuating Food Prices
Small-scale farmers have expressed unhappiness at the pegging
of the floor price for maize at Kwacha 38,000 (US$10) by the Food
Reserve Agency. Farmers and representatives of farmers’
organisations expressed disappointment over the continued
intervention by government in determining the commodity prices
despite the liberalised economic system at a workshop organised by
CUTS Africa Resource Centre (CUTS ARC), Lusaka and Organisation
Development and Community Management Trust (ODCMT) in Chipata.
Often the prices determined by the Government are too low and have a
huge implication on farmer’s sustainability. Therefore, farmers
called for a fair deal through the Zambia National Farmers Union (ZNFU),
which received little attention from the Government. There is a need
for the Government to initiate dialogue with stakeholders for
determining staple food prices.
(CUTS ARC)
Spiralling Rental
The cost of renting shelters has been steadily increasing in
Zambia. This situation can be attributed partly to the sale of
government houses during the 1990s, and lack of mechanism to
construct additional housing units.
Considering the present economic conditions characterised by high
unemployment, underemployment, poor salaries and the levels of
poverty, it has become unrealistic for Zambians to afford decent
accommodation. Further, this situation has been worsened by the
inconsistencies and in some cases, absence or weak legal agreements
between tenants and house owners. This has resulted into frequent
increments on rentals and in some instances evictions without prior
notice. To overcome the crisis, there is need to introduce
mechanisms to regulate and protect consumers in the real estate
industry.
(Contributed by Masheta Musamai)
Misleading Sentiments
Research has indicated that currently there is no cure for
HIV/AIDS, which has affected millions of people across the world.
Efforts to develop a cure for HIV/AIDS have taken a heavy toll, and
in some cases this has lead to misleading the public on the
availability of the AIDS cure.
In Zambia, today some people have claimed to have devised a cure for
the lethal ailment. Unfortunately, the public eager to be cured from
the disease is giving room to fake drugs at the expense of human
life. On the other hand, this signifies the weakness of national
legislation, which has allowed the mushrooming of fake medicines and
medical practitioners.
(Zambia
Daily Mail, 02.06.07)
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.
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