CUTS-AFRICA RESOURCE CENTRE


CONSUMER WATCH

 A Quarterly Enewsletter, Vol.3, Issue No. 4, December, 2007

CONTENTS

1. Editorial Comments
Consumers in Zambia have long been affected by poor service delivery by utility company providers. In the past, the provision of utility services, such as water and sanitation and electricity, was the sole responsibility of the Government. However, with the advent of privatisation and commercialisation, such benefits have hardly been realised. In most cases, there has been no improvement, as there are reportedly a number of cases involving water blues, inconsistent power supply, electricity tariff hikes, etc. With the economic liberalisation, it is of ultimate importance that effective regulation be put in place, to ensure that the economy works for both the business entities and the general citizenry.

Given the above reasons, Consumer Unity and Trust Society (CUTS) and Zambia Consumer Association (ZACA) have observed the loopholes in the supply and delivery of utilities to consumers, as these have put consumers at disadvantageous position, who are paying dearly for the services. It is for this reason that ZACA and CUTS are demanding for the strengthening of the regulatory framework to investigate and monitor consumer abuses in the utility sector.
 

Editor


2. Compliance with Zambia Bureau of Standards
Since the economic liberalisation, there have been increased investments in various sectors of the economy. One of the sectors which has benefited greatly is the retails business as a result of cheap imports. Unfortunately, there has been an increase in the influx of sub-standard goods in the Zambian market. This has not been corrected, despite the existence of the Zambia Bureau of Standards (ZABS), which is a statutory body entrusted with the responsibility of setting and monitoring standards in the country.

The ZABS has threatened to close down 50 local companies that are failing to comply with the required standards. ZABS Executive Director, Mataa Mukelebai, said that the Institution had so far inspected about 100 local companies countrywide to determine respective companies’ adherence to the required standard regulations. Results from the investigations indicate that out of the 100 companies investigated, 50 were in compliance with the standards requirements, while 50 were not.

Despite these inadequacies, only a handful of companies which are not in compliance with standards have been liaising with the standard setting body to address their inadequacies. And ZABS has threatened to close down companies which are not willing to comply with the required standards.
 

(Zambia Daily Mail, 31.10.07)


3. Shabby Service Supply Threatens Lives
The poor supply of water and electricity in most parts of the country needs to be addressed. The situation is grim, despite the commercialisation of the respective utility companies. The most dominant characteristics have been persistent water blues, electricity power cuts, tariff hikes and poor public complaint response mechanisms. Recently, Nangoma Town has been hit by water shortages, as a result of the failure of a Zambia Electricity Supply Corporation (ZESCO) transformer. The situation has affected most parts of the commercial, residential and strategic institutions. The local hospital has been severely hit by this and the management has been forced to evacuate the patients to other hospitals in Lusaka and Mumbwa.

It is important that the respective utility companies should put in place mechanisms to address such situations in a most effective and satisfactory manner, as consumers are paying for the services.
 

(Zambia Daily Mail, 08.12.07)


4. Cholera Hits Samfya
Cholera, a deadly water-borne disease, has continued to claiming lives in Zambia, despite several years of Zambia’s encounter with the pandemic. The health authorities have not yet developed mechanisms or ways to prevent and contain the pandemic. Cholera has broken out in Samfya and the health authorities in the affected areas have urged residents to improve hygiene.

Samfya joins other districts, vis-ŕ-vis Chiengi, Mwense and Chellenge, which have been affected by Cholera. However, the measures implored by the authorities are inadequate, as the problem of Cholera is not entirely dependant on hygiene but also on the availability of clean drinking water and good sanitation.
 

(Zambia Daily Mail, 19.11.07)


5.Care for Community via CSR
Most Companies operating in Zambia have been criticised for the lack of Corporate Social Responsibility (CSR) programmes. An essential component of CSR is to care for the community. With the privatisation and commercialisation of companies, most Zambians do not benefit from the existence or presence of investments in their localities, despite the worsening social and economic conditions. CSR can be a helpful undertaking.

Konkola Copper Mines (KCM), has undertaken initiatives to help the communities, and spent over US$1.5mn on the ‘Roll Back Malaria’ programme since its inception. The ‘Roll Back Malaria’ programme is a national initiative which pledges to halve malaria deaths by 2010. According to the KCM Manager, Henry Chavula, the company has sprayed three townships, which include Nampundwe, Chingola and Chililabombwe. The efforts by KCM have resulted in a reduction in malaria cases in the respective townships by 83 percent and zero mortality rate in the last four years.

To further these efforts, KCM introduced the Garden House Competition, which aims at encouraging appropriate maintenance of homes and gardens to control mosquito breeding. The programme was being implemented as part of its social responsibility programme and it was undertaken in partnership with the National Malaria Control Centre, the Environmental Council of Zambia, the District Health Teams, the Local Authorities and the World Health Organisation (WHO).
 

(Zambia Daily Mail, 24.11.07)


7. Snapshots on Consumer Issues in Zambia

Persistent Fuel Crisis
Zambia has been experiencing fuel shortages for a long time, as a result of lack of reservoirs and a long term national strategy. The fuel shortages have negatively affected consumers, as bus users and motorists, as well as in terms of commodity prices, which heavily depend on fuel in the production process. The Zambia Chamber of Commerce and Industry (ZACCI) has urged the Government to come up with specific measures which would ensure the sustenance of single digit inflation through the control of the fuel prices, which were one of the principal factors affecting high inflation levels.

According to the ZACCI Chief Executive, Justine Chisulo, it was possible to control the price of fuel and keep them within manageable levels, as a way of keeping inflation levels lower. The bulk of the inflation was food-related and there was need to look at the pricing of other non-food-related items, such as fuel, if single digit inflation levels were to be sustained for a long time.
 

(Zambia Daily Mail, 21.10.07)

Consumers Lose out on Increases Sugar Production
Zambia Sugar PLC has been recording a steady increase in its sugar production. However, unfortunately, this has not been translated into lower prices for consumers in Zambia, who are paying prices higher than some net sugar-importing countries. In 2007, Zambia Sugar PLC has recorded an increase in production from 244,840 metric tonnes to 255,000 metric tonnes. This increase in sugar production is a result of the expansion programme being undertaken at Nakambala. The local consumer demand for sugar has been strong. In this regard, there is need for consumers to benefit from the increased sugar production through lower consumer prices.

(Zambia Daily Mail, 25.10.07)

 

Zambia to Phase out Leaded Petrol
There have been concerns over the effect of leaded petrol on the well-being of the environment and human health. Some of the effects of leaded petrol include ill health (damages to the brain of babies and young children), elevated blood pressure, causing hypertension, heart attacks and premature deaths. Zambia has joined the rest of the world in protecting human health, as it related to the use and emission of leaded petrol by phasing out the use of leaded petrol.
 
According to the statement made by the Energy and Water Development Permanent Secretary, Peter Mumba, Zambia will phase out the use of leaded petrol by March 31, 2008. And, to sustain this objective, the National Oil Refinery Company, INDENI, has undertaken measures and made adjustments to its refinery process to ensure that it can produce unleaded petrol.
 

(Zambia Daily Mail, 21.12.07)


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.

Contact Us
Consumer Watch Newsletter: Composed, published and distributed by: -

Consumer Unity & Trust Society – Africa Resource Centre (CUTS-ARC)
4th Floor, Main Post Office Building, P.O. Box 37113,
Cairo Road, Lusaka, Zambia,
Ph: 260.1.22 4992,
Fx: 260.1.22 5220,
E-mail:
lusaka@cuts.org
Web Site: www.cuts-international.org

and

Zambia Consumers Association (ZACA)
Suite 91, 2nd Floor – Afcom House Building,
Corner of Obote / Zambia Way Avenue
P.O. Box 21641, Kitwe, Zambia,
Telephone:  +260 2 224193, Fax:  +260 2 224193
Mobile:  +260 97 800018 / 095 910691 / 095 910692,
E-Mail: zaca@zamnet.zm

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.

Copyright 2005 Consumer Unity & Trust Society (CUTS), All rights reserved.     
D–217, Bhaskar Marg, Bani Park, Jaipur 302 016, Rajasthan, India
Ph: 91.141.2282821, Fax: 91.141.2282485