1. Editorial Comments
The The interaction that exists among the various players in the market should be one that is healthy and not exploitative. It is important for the interaction to bring about mutual benefits for both, the consumers and the respective business entities in a manner that is sustainable.

Most countries, including Zambia have continued to incorporate and consolidate issues of consumer rights and protection in line with the 1985 United Nations (UN) guidelines. However, the non-existence of a comprehensive consumer protection law in Zambia means that most consumers are ignorant about their rights and hence are being exploited. This is despite Zambia having started the process of formulating a consumer protection law since 1994 and the existence of the Zambia Competition Commission (ZCC), a government agency that has been mandated to check any unfair trading practices (UTPs), and handling general consumer complaints.

Along with liberalisation, a number of investors have entered the Zambian market with a variety of goods and services. This has resulted in consumers having a wide range of goods to but without knowing anything about them. The problem however is that, once these goods fail to perform or live to the consumer’s expectations, there has not been a guarantee to compensate the consumer. This and many other reasons have made the need to have a comprehensive consumer law.

Editor

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2. GTV, Finance Bank in Partnership
Zambia has received new investment in the Pay-Television sector with a view to boost competition among the service providers. The British television company, Gateway Broadcasting Service (GTV), a subsidiary of the London-based Gateway Communications obtained its licence to operate in Zambia in September 2007.

In an effort to improve services for the consumer, GTV Zambia has announced a partnership agreement with Finance Bank to facilitate payment by credit clearing, direct debit or in person at any of the bank’s branches through out the country. The service provider was looking at ways to make the services more accessible to more people and believed the partnership is a perfect way to help potential subscribers.

 The company has been commended for providing affordable subscription prices and expanding its line of new channels and programme, which were attractive to customers. The company operates in Kenya, Uganda, Tanzania, Botswana, Rwanda, Mauritius, Malawi, Ghana, Namibia, Ethiopia, Zambia and Sierra Leone.

                                      (Zambia Daily Mail, 10.03.08)
 

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3. Mechanism for Water Supply
For a long time now, Zambia has been experiencing erratic water supply. This is despite the fact that the country is endowed with enough water resources and the commercialisation of various utilities. Thus, it is imperative that mechanisms are put in place to address such kind of situations, in a most effective and satisfactory manner as consumers are paying for the services. 

It is in this light that the Lusaka Water and Sewerage Company (LWSC) are planning to increase water production from the current 230,000 to 340,000 cubic metres per day. The increased water production would cater to the needs of the newly opened up areas in the city and some areas that had in the past been experiencing poor supply. The targeted areas for water supply include the southern parts of Lusaka, and all the other areas that have low water pressure.

The company hopes to meet its target of at least a minimum of 18 hours of water supply a day to these areas most of which had water supplied to them for less than 18 hours a day, while others were experiencing low pressure.

  (Times of Zambia, 19.01.08)

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4. Consumer Protection Law
The Government of Zambia has been urged to expedite the enactment of a comprehensive consumer protection law as the country commemorates the World Consumer Rights Day, which falls on March 15, is an annual event commemorated worldwide.

Zambia Consumer Association (ZACA) was happy that Government has for the first time taken the effort to celebrate the World Consumer Rights Day. ZACA Executive Secretary, Muyunda Ililonga said the commemoration of the day was a sign of the beginning of a cordial relationship that would recognise the rights of consumers. Issues of consumer rights had been included in the drafted constitutions highlighting the importance of enacting a comprehensive consumer protection law.

The Government should address concerns raised by consumers such as price increases in goods and services, and strengthen institutions such as the Zambia Bureau of Standards and Zambia Weights and Measures Agency.

(Zambia Daily Mail, 14.03.08)

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5. Free Internet Lessons
AFRICONNECT Zambia, an Internet service provider has commenced the provision of free computer and Internet lessons to local people in Namwala district.

The company was offering a wireless broadband Internet Service that covers the whole of Namwala town according to its Marketing and Customer Relations Manager, Raymond Kufekisa. The Internet access by local people was well facilitated by the Internet café that operates in the town centre of the District. The free training sessions will last for a month with the first group graduating.

The Internet could be used by the locals for communication, agriculture and education purposes to reduce the cost of communication and significantly increase their living standards by accessing thousands of free education materials on the internet.

(Times of Zambia, 10.02.08)

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6. Snapshots on Consumer Issues in Zambia

6.1 Promoting Competition in Zambia
The ZCC says there is need to promote competition and consumer welfare in the economy where markets should be arenas for fair entry and co-existence of all players.

According to the Commission’s Acting Executive Director, Thula Kaira, markets should produce tangible results that enhance consumer welfare in the form of products at the right place, right price and right quality. Some skeptics in society are still wondering why the commission regulated competition in a liberalised economy instead of letting commercial activities go on without any control. However, markets are driven by money which is a source of power that needs to be regulated in the public interest.

The Commission’s work was principally driven by protection of consumers against UTPs, regulating mergers and acquisitions and banning abusive behaviour by firms dominating the market, as well as prohibits practices that restrict free trading and competition between business entities.                           

                                                 (Zambia Daily Mail, 17.03.08)

6.2 Price Hike in Mealie Meal
Mealie meal is a basic commodity for most if not all Zambians. However not everyone is able to afford the commodity due to its price. In recent months, the price of the commodity has been increasing with minimal intervention from authorities.

In this light some retailers in Lusaka have increased the price of mealie meal by amounts ranging from Kenyan Shilling 2,000-5,000 (US$32.37-80.91) attributing the increase to market forces. A survey revealed that a number of retail outlets had increased the prices of various brands and weight categories of mealie meal.

Some traders attributed the increase to the millers who they said had increased price of mealie meal, hence the need for them to increase the retail prices as well. Customers wondered why mealie meal prices were being increased every week at their expense when the Millers Association of Zambia (MAZ) had been quoted in the papers assuring that there were enough maize stocks in the country.   

                                                                                           (Times of Zambia, 08.02.08)

6.3 Customers Exploitation Should End   
Despite an increase in the number of lodges in Zambia, some parts of the country have continued to experience shortages in accommodation facilities especially during events. This has led to some lodge owners to indiscriminately increase charges for accommodation. However, Chipata District Commissioner, Nicholas Banda has urged lodge and guest house owners not to exploit customers during the N’cwala traditional ceremony for the Ngoni people.

Chipata and its environs tend to experience a disproportionate demand for accommodation during ceremony periods leading to shortages because of the influx of visitors to the town who come for the traditional ceremony.

The high demand for rooms leads inevitably to increased charges as lodges and guest houses take advantage of the large number of people coming for the N’cwala to hike accommodation rates. Hiking accommodation rates was not a solution for the hospitality industry because it would only serve to chase tourists and local visitors who come to witness the ceremony.      

                                                                           (Times of Zambia, 06.02.08)

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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.

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.