CUTS-AFRICA RESOURCE CENTRE


CONSUMER WATCH

A Quarterly Enewsletter Vol.4, Issue No. 2, 2008

CONTENTS

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.

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.     
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Ph: 91.141.2282821, Fax: 91.141.2282485