Saturday, February 9, 2008
My abiding faith in the Bright side of Mwanawasa!
Indeed, at height of the multi party movement in early 90’s Mwanawasa’ effective use of the injunction clause in our laws did a lot good for the movement. And perhaps as a testimony to his good conscience, he resigned from Chiluba’s corrupt administration.
Since becoming President he has fought corruption with brazen vigor, there is now growing confidence in a public service delivery system that was once openly corrupt.
His recent surge in efforts to leave Zambians, a good constitution is admirable, though he should not have waited till his final term (A good chef must be first to taste his own cooking).
He has also tried to inspire Zambians to do more, to be more productive…. Whatever became of the winter maize project?
It is however, this recent move to bring in more ordinary Zambians in the mining equation, that rekindles my faith in the bright side of Mwanawasa. Nothing has given me as much grief as the marginalization of ordinary Zambians as far benefits from mining are concerned. It has always been a limited elite, in collusion with foreigners that have derived the most benefit from mining, especially gemstones mining. Those that were privy to, mining exploration data got licenses for interest areas and have kept this information and the tremendous benefit from the sell of Zambian gemstones out of public domain. Zambian emeralds account for 20% of global gemstone sells; this is why Kashikulu would like to give three cheers to our most learned president for this statement –
…There are more than 380 gemstone mine owners and over 80 other small scale mining license holders with accumulated unpaid area charges in excess of K10 billion contrary to the law," he said.
President Mwanawasa called on the defaulters to clear the area charges adding that the new mining cadastre system, which will be opened to the public soon after March 31st, 2008, will not accommodate and recognize holders of mining rights who are not compliant with the Mines and Minerals Act.
Government is determined to open up the Zambian landscape to investors.
"We are cancelling licenses not complying with the Mines and Minerals Act regardless of whether the defaulters are holders of large scale or small scale mining rights. This will be done before the new mining cadastre system opens to the public after 31st March, 2008," he said
On the fiscal regulatory reforms for the mining sector President Mwanawasa said there will be no discrimination between owners of the old privatized mines and the new investors... Zambia Daily Mail.
Saturday, January 26, 2008
Magandenomics 101 – How far does $3.6 Billion go!
Given the size and rigidity of the Zambian economy, this year’s national budget of 13.76 trillion kwacha reflects Mr. Magande’s attempt at making the most of both the trickle down and trickle up approach to unlock Resources for Economic Empowerment and Wealth Creation.
Reducing VAT by 1.5% may have the effect of giving some relief to both the consumers and producers putting 21.6 billion at their disposal but does this go far enough?
On the other hand, new tax measures for the mining sector which include corporate tax at 30 per cent, mineral royalty at three per cent and a variable profit of up to 15 per cent on taxable income will increase government revenue.
However might government’s continued borrowing of 1.2% of the national budget from BOZ possibly keep interest rates at uneconomic rate and erode gains from reduced VAT.
The revised Pay As You Earn (PAYE) increases the non-taxable monthly threshold income from K500, 000 to K600, 000 while those getting over K4 million per month will be paying 35 per cent instead of the previous 30 per cent effective April 1, 2008. This is another attempt at trickle up and ZK100, 000 or $26 may go some distance but is it enough to achieve a significant impact on increasing productivity in the economy.
In other aspects of the national budget Mr. Magande promised ZK 120 billion for a Citizens' Economic Empowerment Fund, however do these measures go far enough to uplift the majority of Zambians who have had no real opportunity for economic empowerment?
With unemployment over 70%, the only real relief/empowerment for these people in this year’s budget maybe the VAT reduction and this economic empowerment fund. Mr. Magande needs to do more to create jobs and more private enterprise.
Indeed, ZK 13.76 trillion or $3.6 billion maybe a small piece of cloth for our ever bloated national suit, this is essentially why am glad, Mr. Magande is learning to cut with a little bit more precision and care.
Tuesday, January 22, 2008
O that we might see!
As I read this most poignant statement of the Zambian condition, I can indeed, envision Zambians waking up in 50 or less years to find themselves a population without means or recourse against increasing poverty.
If that is a possible future fate, what does our past look like? When westerners, first came to the land without a name, at the time over a hundred years ago; they found then as Equinox, Vedanta and others have now, a land indeed that flows with milk and honey, whose indigenous people lacked then, as now the clarity of vision to fully appreciate or exploit the wealth or opportunity before them.
Confronted with cotton clothing, new crops, horse drawn wagons etc our ancestors by assimilation enhanced some aspects of life as they had it known for generations primarily because they could see that western culture had developed the means for a better way of life. However, there appears then as now, a failure to directly see in Zambia’s abundant natural resources the real and present potential to enhance our personal lives.
I have discussed before, how a young Abe Galuni came to Northern Rhodesia penniless, yet in less than forty years he owned more land than is owned by the entire Zambian population in present day city of Lusaka (residential areas). Foreigners own more and benefit from precious stone mines than ordinary Zambians.
How can indigenous people who have lived in Mapatizya, Chama, and Mushili fail to see and recognize the potential to enhance their personal lives, gemstones in these areas have?
A friend of mine once said perhaps if one (1) million Zambians were put on plane and sent to a city like New York US, to live there for six months then flown back to Zambia, maybe then we would have a revolution!
Is that what it might take to give sight to the multitudes living in abject poverty in a land, Caleb says is so God favored and lucky or might we be blind still as in the story of –
An Old Woman having lost the use of her eyes, called in a Physician to heal them, and made this bargain with him in the presence of witnesses: that if he should cure her blindness, he should receive from her a sum of money; but if her infirmity remained, she should give him nothing. This agreement being made, the Physician, time after time, applied his salve to her eyes, and on every visit took something away, stealing all her property little by little. And when he had got all she had, he healed her and demanded the promised payment. The Old Woman, when she recovered her sight and saw none of her goods in her house, would give him nothing. The Physician insisted on his claim, and. as she still refused, summoned her before the Judge. The Old Woman, standing up in the Court, argued: "This man here speaks the truth in what he says; for I did promise to give him a sum of money if I should recover my sight: but if I continued blind, I was to give him nothing. Now he declares that I am healed. I on the contrary affirm that I am still blind; for when I lost the use of my eyes, I saw in my house various chattels and valuable goods: but now, though he swears I am cured of my blindness, I am not able to see a single thing in it.
Tuesday, January 15, 2008
The Long-lasting fallout of Shock & Awe – Lumwana Mine.
"Impose this overwhelming level of Shock and Awe against an adversary on an immediate or sufficiently timely basis to paralyze its will to carry on . . . to seize control of the environment and paralyze or so overload an adversary's perceptions and understanding of events that the enemy would be incapable of resistance at the tactical and strategic levels."
The Lumwana mine project may not be a military maneuver, however its design and execution smacks of the shock and awe strategy.
After acquiring financing that the mine managing director Hurry Michael calls
“ the largest debt finance package in Africa, five international financial institutions from different countries which include South Africa, United Kingdom, Germany, Australia and Canada have agreed to lend us US$584 million for the development of the project," Post Zambia ( I think this is an overstatement, there are bigger debt package by the Chinese and others).
Equinox the foreign owners dominate the land and copper deposits in Lumwana by a hundred percent and have brought in the largest means to extract the copper.
Michael says Lumwana mine would be among the largest copper mines in the world as evidenced by the equipment that would be used at the mine.
This mine will have the largest mills and to run these mills we will need 18 mega watts of power to run each mill, three times power consumption of the of Solwezi.
In the face of this huge display of shock and awe by Equinox, Solwezi district commissioner Albert Chifita and the local people, indeed have much to be fearful of -
"The Kabwe scenario would not be repeated in Solwezi, as you may be aware that the closure of Kabwe mine in June, 1994 brought the economy of the town to its knees and everything in the area changed drastically." ALbert Chifita
The poor are at some risk of not participating in the economic opportunities of mining while bearing many of the costs as well as risks that result from the introduction of a mine in an undeveloped area such as Lumwana.
Chifita explains that government knows that minerals are wasting assets and cannot be relied upon forever adding that government was trying to diversify the economy by emphasizing on agriculture and tourism as a mode of diversification.
Mr. Chifita may be a noble pragmatist in hoping the local people should look into agriculture and tourism as the long term economic activity for the area; however the sheer scale of this mining activity in the area ensures that this remains as the current and future counterpoint of the local economy.
Agriculture, Tourism and other economic activity may thrive during the lifespan of the mine but will they withstand the absence of the multitudes that have been drawn to the area by this huge short term mining activity?
The region lies vulnerable to fallout of shock and awe - the choice of quick profit over sustainable progress.
The rapid construction, commencement of mining and associated population increase does not allow the local to plan or develop sufficient capacity to ensure long lasting benefits from this interaction. Instead the more immediate and transient demands of accommodation and consumables like food, shops etc have boomed.
Because of scale it is usually beyond the capacity of local businesses to meet the demand of high cost business needs like equipment and recurring business needs; hence supply of these needs is outsourced, giving the real business opportunities to outsiders.
Despite Mr. Michael’s pronouncements of good intent that measures will be in place to protect people and the environment from the negative effects and risks of large scale mining, the local people must always be mindful that the implementers of shock and awe have little attachment to local causes and always preclude themselves from legal liability of environmental disasters such as accidental river pollution.
Unless the Zambian government or the local administration take bold and decisive measures to regain dominance –
i) In regulating the framework of business activity between the mine and local economy and ensure local businesses are not marginalized.
ii) Regulate and enforce environmental safety standards now and post mining period.
iii) Local land administration - zoning and property taxes collection to ensure local population also access utilities water, energy.
iv) Support local capacity to develop agriculture, tourism and craft/art through grants and resource personnel.
The people of Lumwana may yet find themselves as the Broken Hill people without copper or a mainstay economy in forty years.
Friday, January 4, 2008
Mwanawasa - King or President?
"Now, let me give a timely warning to people who have been outside. They have been outside living in a foreign environment. They come back to the country and think that we are all foolish; we are all incapable of providing leadership and now they are God sent people,". Mwanawasa.
Does a Zambian citizen lose the rights and privileges of the constitution just because one lives abroad for a period of time?
Might this, also be a symptom of a culture or perhaps politicians, still evolving from the traditional administrative structure of chiefs to the constitutional structure of political leadership elected by universal suffrage.
Of course, there is nothing wrong with an incumbent President endorsing a preferred successor, however in the Zambian scenario, it is the personal ownership of the Presidency that Mwanawasa and Chiluba before seem to claim and enforce that sparks grave concern.
This suck up to me, kneel before me, acknowledge my slightest gesture or movement and by all means ask my permission mentality, is what I as Prof Chirwa find unpalatable.
This mindset sadly, also underscores the reason Mwanawasa and others before him seem to play games with the constitution review process.
What will become of King Mwanawasa’s ego and need for patronage, if the Zambian constitution limits the overreaching powers of the current presidency?
Of course I do not advocate disrespect of the President; on the contrary I believe the office of President is owed no more respect than prescribed by the Zambian constitution.
The Zambian people through several constitution review commissions have stated the need to reduce the executive authority of the president. We need to end the reign of this era, in which a President’s personal views or preference are deemed supreme to the constitution, such that grown men like George Mpombo and Tentamashima are so willing to sacrifice their dignity to the point of kneel or die.
Our national constitution must prescribe and guarantee,
i) Equal standing of all Zambians everywhere - men and women in the bill of rights.
ii) Appropriate due authority and autonomy to key institutions like the electoral commission.
iii) And most importantly prescribe the limit of presidential authority.
I pray that the NCC currently engaged in the review of our constitution will adopt these key recommendations- perhaps then we can see an end to the marginalization of the electorate especially women and Zambian citizens abroad, ineffective institutions and the abuse of presidential authority!
Tuesday, December 25, 2007
Merry Christmas and Goodwill to all!

This day is unprecedented in its ability to bring joy and good will to people everywhere in this vast world. We may not share in the same language, culture even belief but somehow the world on this day shares universal joy and goodwill.
No event is perhaps more poignant than that Christmas during the first world war when warring men ceased hostilities and met on the front line to share in the joy and goodwill of Christmas!
As on the next day after this event, hostilities and suffering continues in this world, we all share yet I and many will forget our universal troubles on this day.
I will embrace joy, hope and goodwill to all mankind.
Merry Christmas and have a prosperous new year!
Monday, December 17, 2007
State of despondence part 3 – How long before Zambia attains the age of enlightenment?
The lack of rationality in the manner Zambians continue to view both their constitution and national resources might evoke the question – how long before our nation attains the age of enlightenment?
How long before the correlation between the individual and the state is widely appreciated?
There is perhaps no better demonstration of the popular expression “insanity is doing the same thing over and over yet expecting different results each time” than Zambia’s constitution review process. We have had the
i) Mvunga constitution review in 1991,
ii) Mwanakatwe constitution review in 1996,
iii) Late Lucy Sichone’s call for a constituent assembly,
iv) Mung’omba constitution review in 2003,
v) Levy Mwanawasa’s Indaba 2003
vi) And now National Constitution Conference.
I expect at this point, that an eminent citizen like John Mwanakatwe or Wila Mung’omba would spearhead an intellectual movement of the Enlightened and advocate reason as the primary basis of authority and straight talk to average Zambians to end this insanity!
We know what Zambians want and expect in their constitution, why should an authoritarian president continue to trample on the greater rights of common Zambians.
On the other hand, against the run of logic and rationality a matter deserving of at least one commission has received none and as a consequence theft, corruption and wanton exploitation of Zambia’s natural resources by foreign interests continues with average Zambians fighting over leftover crumbs.
A more telling example is this recent lament of
“Former Zambia Privatization Agency (ZPA) director James Matale says the destruction of the public enterprises during the Chiluba regime that accounted for over 80 per cent of economic activity was an act of unprecedented vandalism."It surpassed even the destructiveness of the definitive Attila the Hun. Zambia lost economic investments and assets accumulated over a period of 100 years," he says."A large proportion of the famous K7 billion debt was attributable to investments in assets and operations of the public enterprises. For instance, with the destruction of Zambia Airways, Zambia lost the entire stock of civil aviation technology that she had acquired over 30 years at a great cost. I think that, in the fullness of time, when all the numbers are finally tallied up and the last statements recorded, the Zambian privatisation programme will rank as the biggest fraud in economic history."So what went wrong with Zambia's privatisation programme?Matale offers a rare insight into this monster of a programme whose benefits some Zambians have been questioning over the years.Matale explains that the programme faced resistance and opposition from several critical stakeholders.He also explains that there was a deliberate effort by powerful business interests in the government to treat enterprises and assets lined up for privatisation as goods fallen from the back of a delivery truck.The donors too had their own invisible hand on the process.” Extract from Maravi
Also troubling is capitulation of men like James Matale and others like John Mwanakatwe, Alex Chikwanda, Wila Mung’omba, and Prof Mvunga and many other distinguished, well read and educated Zambians.
How can there be, such a disconnect to the affairs of nation?
I admire the courage of Prof Clive Chirwa; and understand his indignation with the status quo. However, like many well educated Zambians before him, that have held positions where they could have at least helped influence rationality in the minds of Zambians- I wonder!
Might he not be a lone voice pushing a nation stuck in a cultural drag with roots stemming from it's past?