1.
Editorial
Comments
With the advent of liberalisation, expectations of an economy vary
from country to country. However, the general view is that
liberalisation should, ultimately, lead to social and economic
benefits for consumers, as well as service providers. While it could
be said that consumers may seem to be benefiting from the available
product range and services, it is also important to note that service
delivery, in many instances, is poor. Incidences of consumer being
provided with sub-standard goods and services have also become high
and thus need to be addressed.
Furthermore, the reaping of profits from customers
by service providers and business community, without considering
customer satisfaction, is a practice that needs to be curbed. In the
recent months, Zambian consumers have experienced poor service
provision, ranging from power outages, water shortages, as well as
shortages of goods. The ever-increasing fuel prices have also
adversely affected the consumer, as it has led to price increases in a
number of commodities, as well as services.
Consumer Unity and Trust Society (CUTS) and the
Zambia Consumer Association (ZACA) have, for a long time, been working
on the existing practices that disadvantage consumers. For this
reason, CUTS and ZACA have continued to speed up advocacy for a
regulatory framework that will investigate, litigate and monitor
consumer abuses.
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
2.
Combine Resources, Service Providers Urged
Zambian consumers, in recent times, have expressed their displeasure
at the high cost of various services. This could, however, change as
service providers dealing in telecommunication facilities have been
urged to pool resources in building infrastructure jointly, so that
there is a reduction in costs, and it also offers affordable services
to consumers. A communications consultant, John Munsaka, said that by
harnessing resources, the firms who has set up fibre optic networks,
including Zambia Telecommunications Company (ZAMTEL), the Zambia
Electricity Supply Corporation (ZESCO) and the Copperbelt Energy
Corporation (CEC), could all reduce costs for consumers. The bandwidth
services in Zambia were expensive due to costs incurred by the
providers. Zambia also needs a deliberate policy to help educational
institutions improve their provision of online education, so that the
country could produce more trained personnel.
In the same vein, the Zambia Research and Education
Network (ZAMREN) was working on setting up linkages to develop and
improve interconnectivity between research and educational
institutions. Professor Simukanga, chairperson of the Zamren
organisation and the University of Zambia (UNZA) Vice-Chancellor, said
the linkage would entail establishing a network of fibre optic line to
connect colleges and research centres to the bandwidth line to link
the UNZA and the Copperbelt University (CBU). The Government is also
creating a platform to improve connectivity by service providers and,
through ZAMTEL, was rolling out the national fibre network, as well as
nurturing ZAMREN as a deliberate initiative to expand the provision of
telecommunications connectivity in Zambia.
(Source:
Times of Zambia, 18.04.08)
3. Customers to Benefit from New Air Routes
The launching of new routes from Livingstone to Johannesburg by the
Zambian Airways will help ease the travelling problems faced by most
Livingstone residents. Zambian Airways launched another International
route from Livingstone to Johannesburg, thus making flying from
Livingstone to Johannesburg much easier and affordable. The
four-times-weekly route will limit the costs of customers who
initially would travel to Johannesburg via Lusaka. The announcement
was made by the Zambian Airways Chief operations officer, David Evans.
This will showcase the newly refurbished interiors and also mark the
debut of the airline’s high quality cabin services being offered.
The pricing is highly competitive and fuel
surcharges have been kept to minimum levels, which is way below the
competitors. This is in order to cater to the needs of the customers.
Zambia Airways had-s the potential to become one of the best supported
airlines in the Southern region, as it is developing and growing due
to support from both business and leisure travellers.
(Source: ZDM, 02.05.08)
4.
Sugar Shortage Hits Zambia
The issue of food shortage has continued to hit most parts of
the world. Basic commodities, such as rice, sugar, mealie meal, etc.,
have continued to be scarce in many parts of the world. Recently,
Zambia was hit by sugar shortage. Many shops, including big renowned
supermarkets like Shoprite, had run out of the commodity. This
resulted in shop owners taking advantage of the shortage and selling
the commodity at exorbitant prices. A kg of sugar was being sold at
Zambian Kwacha 9,000 (US$2.60), instead of Zambian Kwacha 4,000
(US$1.16) and two kg is being sold at Zambian Kwacha 19,000
(US$5.51), instead of Zambian Kwacha 8,000 (US$2.32).
Both the Government and the people of Zambia called
on the Zambia Sugar Company to rectify the problem. In the same vein,
Mazabuka residents, where the sugar factory is situated in the
Southern province of Zambia, said it was disappointing to note that
they were experiencing shortages of sugar when the factory is just a
few metres away from the shops. With the shortage being experienced in
the country, the corporate sugar affairs manager still insisted that
the company had enough stocks
(Source: Muvi TV, 06 .06.08)
5.
ZACA Urges Government to Find Nearer Oil Sources
The Zambian Government has been urged to find a nearer source
for importing crude oil at a cheaper price to effectively mitigate the
escalating oil prices. According to the ZACA, a nearer source could
help reduce the frequent hikes in fuel pump prices, as the country
could access crude oil from neighbouring Angola. Despite the
Government’s effort to reduce the excise duty on diesel, petrol and
kerosene, consumers might not appreciate the effort, as pump prices of
fuel have also gone up.
The Government was also challenged to take the lead
in ensuring that it controlled the use of fuel among the officers, by
limiting the number of government vehicles moving around burning fuel.
As a way of mitigating the escalating global oil prices, the Finance
Minister, N’gandu Magande, had announced the reduction of excise duty
on petroleum products. The excise duty on diesel was reduced from 15
to 30 percent and petrol from 45 to 60 percent, while the 15 percent
duty on kerosene had been zero-rated.
(Source:
ZDM, 28.06.08)
6. Needed Quality Water Service Delivery
The importance of water cannot be over emphasised, as the
saying goes “Water is Life”. For this reason, the water utilities need
to deliver, both in quality and quantity, so as to satisfy the
customer. It is always satisfying to the customer to realise that the
service paid for is delivered satisfactorily. In this light, the
National Water Supply and Sanitation Council (NWASCO) has urged all
water utilities in the country to work hard towards the improvement of
service delivery in their respective areas. Water utilities have been
urged to be accountable to the consumers in their works, because they
often demand money from them. The NWASCO has promised to involve the
media to elucidate and also to allow customers seek clarification on
what is happening.
The Kafubu Water and Sewerage Company – the water
utility – has engaged in the upgrading of the sewerage network in the
townships to prevent close contamination. The utility company has also
appealed to the consumers to tackle leakage problems, if services were
to be improved.
(Source: TZ, 17.06.08)
7.
Snapshots on Consumer Issues
in Zambia
7.1 ZACA Opens Another Office
The ZACA has opened an office in Lusaka, which has three
staff members: a Programme Manager and two Organisers. According to
the ZACA Executive Secretary, Muyunda Illilonga, the opening of the
new office in Lusaka was a milestone in the history of the
organisation. The decision to open an office was the result of the
long standing calls by the consumers in Lusaka to have the consumer
body’s presence in the Capital. Lusaka is where policy makers are
and the association has to interact with the policy makers. The
association also needs to respond in a positive manner to requests
from the Consumers.
(Source: ZACA)
7.2 Warning Demand for Kwacha Fish and Chips
Consumers always love and enjoy walking into an eatery that
saves mouth-watering foods. Apparently, this is what Kwacha fish and
chips take away on Lusaka’s Freedom Way offers. Although the eatery
no longer specialises in fish and chips, it now mostly sausage and
chips, most customers still enjoy buying their meals from there. The
eatery is one place in Lusaka which has been around for ages now and
some aged Lusaka residents still feel great to be associated with it
when most competitors have come on the scene and evaporated into
oblivion in less than no time. One is still sure of buying a hot and
crisp packet of chips straight from the fryer, instead of the cold
and limp potato strips that pass for chips in some outlets. It would
be important to realise, of course, that the effectiveness of any
unit within an organisation is as good as the people who man it,
capable and qualified people to control these units will be an
asset.
(Source:
TZ, 17.06.08)
7.3 High Quality Products Cardinal
Local manufacturers in Zambiahave been urged to strive to
attain the highest standards in production, if they are to succeed in
accessing regional and international markets for their products. The
ZACA executive secretary, Muyunda Ililonga, said local manufacturers
should prove that they were able to compete with imported goods, by
ensuring quality. Ililonga was appealing to the local manufacturers to
produce high standard products if they are to compete with foreign
goods. He said, although the association was concerned about the
failure of local products to access the market in multinational retail
outlets in Zambia, the issue of quality was very important, as it
breeds dissatisfaction and complaints from consumers.
(Source:
TZ, 17 .06.08)
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.