Tuesday, August 25, 2020

JICA Plays Significant Role in Zambia’s Development

 AUG 25, 2020

SNA (Lusaka) — Japan has become a formidable pillar in Zambia’s development, and its influence is felt in the fields of business investment, training, and technology. Some have argued, however, that the criteria for accepting trainees and awarding grants needs further clarification.

Japan’s official development assistance to Zambia is delivered mainly through the Japan International Cooperation Agency (JICA). Since it began its activities in 1968, it has been an extraordinary success story that effectively triggered the transformation of the Zambian economy.

JICA’s training programs have enabled many Zambians to go to Japan and participate in training courses. Each year, about 100 to 150 Zambians are trained in the Asian country, and about 3,000 more Zambians receive some form of training inside their home country. JICA’s investments in Zambia have been worth about US$2 billion since its operations began.

“Since the purpose of our cooperation is to help Zambia achieve its Sustainable Development Goals,” Japanese Ambassador to Zambia Ryuta Mizuuchi said recently in Lusaka, “I think we have to take it seriously.”

He added, “One thing that I clearly heard from Republican President Edgar Lungu himself, possibly in this context, was about Zambia’s quest to strengthen the agricultural sector with a view to diversifying the economic structure, and rectifying the overdependence on mining.”

Zambia, Africa’s second-largest producer of copper, is highly dependent on mining as its major productive industry. Mining contributes 78.4% of total export value, and 31.4% of government revenues, according to the latest data from the Extractive Industries Transparency Initiative (EITI).

The Japanese envoy also expressed interest in exploring the potential to achieve a sustainable human resource development chain within Zambia. “Personally, I wish to see a ‘strategic thrust’ in our cooperation with Zambia, in such a way that, for instance, a schoolgirl with excellent talent would be efficiently supported by a JICA scheme in the field of gender, and promoted further to receive Japanese language studies at the University of Zambia, which is already assisted by volunteers who teach Japanese.”

JICA Zambia Office Chief Representative Kazuhiko Tokuhashi affirmed that the agency has been the bridge linking Japan and developing countries. “The actions that drive us as JICA are commitment, working together with the people, thinking and acting together strategically with broad and long term perspective, bringing together diverse wisdom, resources, and innovation that will bring about unprecedented impact,” he asserted.

With more than 4,000 trainees now having been sent to Japan through JICA’s training programs, the ultimate aim is to realize the Vision 2030, making Zambia a prosperous middle-income country by that year.

The Zambian government has commended Japan for being an “all-weather friend” in providing assistance in various economic sectors of the country.

Director of Vocational Education and Training Alex Simumba recently stated, “We will continue to engage in partnerships aimed at empowering our people; we cannot develop the country alone without the support of our partners. Since the launch of the Seventh National Development Plan, our role as government is to scout for partnerships.”

The Zambia JICA Fellowship Association (ZAJIFA), an alumni organization, has been developed as a way to maintain personal relationships between ex-participants and to ensure continued knowledge sharing among various key organizations within the private and public sectors.

ZAJIFA President Joseph Mulenga said that the association plans to shake things up and to get more members involved in projects, as well as to become more visible by having additional collaborations with Japanese counterparts.

Some ZAJIFA members recently made presentations on human resources development and the succession plan in an organization. One of the proposed plans is the development of floating photovoltaic technology on Lake Kariba, and a solid waste management improvement plan.

Although Zambia is endowed with natural water resources that offer significant opportunities to supply fish, the growth in aquaculture and fisheries have not matched the ever-increasing demand.

Current fish production is about 100,000 metric tons per annum, against the demand of over 180,000 metric tons, according to the Zambia Aquaculture Enterprise Development Project.

“Being accepted to attend a five-week course in Kyushu, Japan, in May 2017 was an opportunity of a lifetime,” stated Roster Kawala, a ZAJIFA member who recently attended a course on capacity building for entrepreneurs. “Upon my return, I have promoted aquaculture and encouraged the business community to participate by providing a market, cold storage facilities, and refrigerated transportation, among other things.”

However, some community members feel that, as much as JICA has been doing through its skills development and capacity building, a lot more still needs to be done in terms of publicizing its criteria for accepting trainees and awarding grants to deserving recipients.

“Some of us are still blank about JICA’s capacity building program, despite having belonged to cooperatives,” stated Amos Chanda, a social worker based in the Kafue district. “The JICA programs ought to be inclusive and embrace many, especially in rural areas.”

Farmer Jane Simate echoed Chanda’s concerns: “The recent Market Oriented Rice Development Project by JICA has so far been selective. The project has only captured a few rice farmers to equip them with skills on how they will become productive. What about other rice producers like myself who need the knowledge?”

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Monday, March 2, 2020

Ease of Business

Streamlined freight service helps goods flow for Zambian startups
By Derrick Silimina | VOL.11 November ·2019-11-06
There's a constant buzz about China's large population always being on the move. Martin Mweenda wants to be part of that buzz as he predicts China to become a booming market for Zambia's emerging entrepreneurs.
It is a tale of two businesspeople with different aspirations - one is a Zambian entrepreneur who needs to grow his business but lacks an efficient way of importing goods from the industrialized world. The other is a Chinese manufacturer and supplier of goods who is looking for new markets.
However, each of the two investors spends sleepless nights thinking of how best their ambitions could be achieved, yet each has the potential to provide solutions to the other's business objectives. All they need is to link up and cut a deal.
Luckily help is at hand. China Katundu Shipping Co., one of the Chinese freight companies based in the Zambian capital of Lusaka, provides its core business shipping and air transportation services to its clientele from China direct to Zambia.
Benefit to local entrepreneurs
Mweenda, 40, is a budding entrepreneur based in Lusaka's sprawling Town Center Market, specializing in mobile phone and telephone accessory retail business for the past five years.
"I started this business from scratch in 2011 by selling second-hand phones along Katondo Street and then after raising enough capital, I switched to cross border trading. Back then, I used to get phone accessories from South Africa and Tanzania," said Mweenda. But he later realized that using one of the Chinese couriers would allow him to import stock from China without having to go there.
"If I decide not to travel, the shipping company will do all the paperwork for me, thereby reducing costs I previously used to incur," he said.
From his humble beginnings at the bustling Katondo Street located in the heart of Lusaka metropolitan area, Mweenda, who is popularly known as "Huawei" among his peers due to his long time dealing in the Chinese mobile phone brands, now prefers to import his goods direct from China.
Christabel Muchindu, another upcoming entrepreneur who deals in second-hand clothing based at the COMESA market, southwest of Lusaka, told ChinAfrica that the Zambia-China bilateral trade relations are hugely positive as it is helping grow local entrepreneurs.
Asked to elaborate more on the viability and sustainability of the trade relations, Muchindu said that after three years in business, the services of the Chinese shipping and air freight company importing her goods has allowed her to realize more profit than before.
"For instance, if I use a groupage loading service from Guangzhou (in south China) to Lusaka, the cost is $260 per cubic meter, duty inclusive. Through China Katundu, I and other traders will be allowed to share container space and this is quite cost-effective. This allows more small scale businesspersons to import their goods at lower duty, which is a bonus to some of us emerging entrepreneurs," said Muchindu.
Considerate service
In a bid to provide a hassle-free trading environment for the majority of Zambian entrepreneurs like Muchindu and Mweenda, China Katundu has risen to the occasion.
With more than a decade of operational experience, the company now offers a considerate service for goods shipped on a loose cargo container from Guangzhou direct to Zambia, an incentive that attracts many small scale traders in Zambia.
"This means we sell space in our company container to individuals who have got goods to ship. The container comes under our company name and is cleared as such, thereby exempting clients whose cargo is on board from paying duty by themselves," China Katundu Marketing Spokesperson Diana Chimy told ChinAfrica.
This commercial idea not only reduces the amount of inconvenience faced by many traders when it comes to dealing with customs issues, but the services are also efficient.
Through its representative based in Guangzhou, Chimy explained, the company has also managed to invest in secure warehousing both in China and Zambia, as well as facilitate the process of Chinese visas and provide free airport pickups for any business person who intends to travel to China.
Statistics from the Global Entrepreneurship Index of 2017 show that Zambia is ranked 10th in Africa and 96th worldwide in terms of entrepreneurship.
Recently, Chinese Ambassador to Zambia Li Jie said the bilateral trade volume between China and Zambia has increased dramatically from $2.36 billion in 2017 to $5.07 billion in 2018.
Li also said China's focus in its economic cooperation with Zambia now promotes direct private sector investments that will not require any sovereign guarantees from the Zambian Government.
Li attributes the positive situation to the strength of the two country's economic partnerships.
Top investment destination
With over 1,000 Chinese enterprises investing more than $4 billion in Zambia, this is evidence that Zambia has become one of the top 10 destinations among all African countries for Chinese investors.
Chimy said her firm is known for its unique products and services that include visa arrangements to China (free if one considers loading a 40-foot container), free pickup from the airport upon arrival, warehousing of goods, group loading, sea/air/road freight, and sourcing of goods, among others.
Asked whether or not the company is violating any tax laws, Chimy said that on the contrary, the company has enough space at some shipping organizations and a wide-enough network with viable agents back in China, that helps speed up the process of cargo clearance.
Recently, the Bank of China in Zambia, in partnership with the Bank of China in the industrial city of Zhengzhou in central China's Henan Province, organized the Henan International Investment and Trade Fair, aimed at spurring cross border investment and trade projects, as well as strengthening domestic and overseas business cooperation.
The bank hosted over 400 small- and medium-sized entrepreneurs and other stakeholders from Zambia and across the globe in Zhengzhou. The region has gained momentum in economic growth and industrial restructuring over the past years in a bid to link investors to potential business destinations.
Mweenda has since implored fellow local entrepreneurs to double up their efforts because their Chinese counterparts have not grown their economy through appeasement.
"They have done so through shrewd business and sustainable deals underscored by hard work. Where others have been seeing challenges, they have been seeing opportunities, which they have gladly taken around the world. This is a strength that Zambians should collectively acquire instead of constantly wallowing in self-pity," he said.
China is indeed a global economic powerhouse, which has the muscle to influence world trade more than any other country, according to Mweenda. It is therefore not surprising that many Chinese companies seek opportunities to expand their investment ties with Africa where countries like Zambia will remain a preferred economic destination.
(Reporting from Zambia)
(Comments to niyanshuo@chinafrica.cn)

Zambians choose Chinese cures


 – by Derrick Silimina
Nowadays
As in many facets of life in Zambia, the influence of China is visible in the country's health-care sector.

China’s ancient healing arts are gaining a strong following in Zambia. Residents of the south-central African country are increasingly visiting Chinese-owned clinics offering a variety of ancient cures, including acupuncture, herbal medicines, massage, exercise regimes, dietary therapies, and creams and ointments against aches.
Traditional Chinese cures avoid many side effects associated with modern medicine, its advocates say. At least 70% of Zambians use traditional medicine, according to the World Health Organization.
Zambia’s government has noticed the growing popularity of Chinese cures. Health Minister Chitalu Chilufya said recently the government is reviewing its rules on traditional medicine with a view toward making such practices more accessible. 
“We have identified the need to strengthen collaboration, in particular with China, in research on traditional herbal medicines,” the minister told a visiting delegation from Jiangxi University. “Zambia will collaborate to strengthen the cultivation of medicinal plants and to share experience and knowledge.”
Chinese medical practitioners in Zambia have been happy to meet the growing demand. “I attend to patients suffering from stroke, HIV/AIDS, hypertension, paralysis, and diabetes among others,” said Feng Kehong, owner of the Zhong Yi Surgery. She opened the private clinic in 2002, five years after arriving in Zambia.
Of the wide range of traditional Chinese cures on offer, acupuncture has seized Zambians’ imagination the most. In this traditional Chinese therapy, needles are inserted into affected points on the body to relieve pain and cure illnesses.
For Bernard Siwale, a Lusaka based taxi driver, the results of the procedure are worth some discomfort. He turned to the Zhong Yi surgery in Lusaka after modern medicine did not cure a partial paralysis he suffered early this year. “The doctor pricks you with small needles and you feel slight discomfort,” he said. “After 30 minutes the needles are removed. The process is repeated for 10 days, but thereafter the pain disappears.”
Other patients are equally enthusiastic. “A Chinese health practitioner recommended herbal medicine and acupuncture for my abdominal pains, and after 10 days the pain was gone,” said Belinda Ngulube, a pharmacist. “Acupuncture is based on the interconnectivity of our hormones and nervous system. It has helped many patients.”
Three months of acupuncture and Chinese herbal medicines treatments were the solution to severe bleeding for Angela Nkandu, age 38. “I used to bleed badly even with a slight injury and conventional medicine couldn’t help much,” she said. “Doctor Tiang gave me blood boosters and acupuncture and it worked wonders.”
Traditional Chinese cures are longer-lasting than cures from modern medicine, according to Chris Banda, a teacher in eastern Zambia. He traveled to Lusaka for treatment at a private Chinese clinic and said it was worth the trip. “Western medicine couldn’t cure my chronic headache. Conventional medicine can reduce pain but afterward the pain comes back.”

*Derrick Silimina is a freelance journalist based in Lusaka, Zambia. He focuses on Zambian agriculture and sustainability issues.
derricksilimina@gmail.com

Saturday, February 29, 2020

A pivotal time for Zambia’s economic future

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Zambia is facing a number of macro-economic challenges but has set itself on a path back to economic stability and growth.
The depreciation of the kwacha which triggered inflationary pressures, sluggish credit growth, decreased agriculture output arising from the poor rainfall and debt servicing burdens negatively affected the overall performance of the economy.
On the global front, mounting geopolitical tensions between the US and China and the rise in oil prices have also contributed to Zambia’s economic slowdown.
It is for these reasons that the 2019 National Budget theme, dubbed “Delivering Fiscal Consolidation for Sustainable and Inclusive Growth” was clearly aimed at stimulating Zambia’s declining economic performance through domestic resources mobilization.
2019 Economic Performance
Initially projected at around 4 percent, economic growth in 2019 slowed down to around 2 percent, compared with 3.7 percent growth in 2018.
In his maiden budget speech, Minister of Finance Dr Bwalya Ng’andu highlighted that although revenues and grants exceeded targets by 9.1 percent in the period from January 2019 to August 2019, expenditure exceeded targets by 3.4 percent.
Dr Ng’andu noted that this was mainly due to depreciation of the kwacha and under-subscription of government securities resulting in increased debt service costs which left an overall budget deficit of 6.5 percent of GDP on a cash basis.
According to the Bank of Zambia, inflation remained broadly in line with the 6 to 8 percent target range in the earlier part of 2019. In the second quarter, inflationary pressures built up, resulting in inflation breaching the upper bound of the target range in May 2019 at 8.1 percent. By the end of August 2019, inflation rose further to 9.3 percent. This was largely on account of higher food prices and the pass-through effects from the depreciation of the kwacha against the US dollar.
To counter inflationary pressures, the Bank of Zambia adjusted the policy rate upwards to 10.25 percent in May 2019 from 9.75 percent in December 2018.
Growth has further been adversely affected as commodity prices had generally been lower over the first eight months of 2019 due to a fall in global demand. Copper prices averaged US$ 6,091 per metric tonne compared to US$ 6,723 per metric tonne over the corresponding period in 2018. Over the same period, crude oil prices averaged US$ 63 per barrel compared to US$71 per barrel.
In addition, tight liquidity conditions mainly attributed to external debt servicing and as reflected in the accumulation of domestic arrears, have contributed to slower economic growth.
Notwithstanding the general slowdown in the economy, the service sector has however performed favorably, especially the wholesale and retail trade, information and communication technology and financial services.
Non-traditional export earnings increased by 17.2 percent to US$ 1.1 billion from US$ 911 million over the first half of 2018. This outturn was attributed to higher exports of gemstones, cement, lime, sulphuric acid, and sugar.
But in terms of debt position, the external debt stock as at end of June 2019 increased to US$10.23 billion from US$ 10.05 billion at the close of 2018. This was mainly on account of disbursements on existing loans. The rate of debt accumulation at 1.9 percent was lower than the 7.6 percent recorded in the corresponding period in 2018.
2020 Economic Outlook
The 2020 national budget, under the theme ‘Focusing national priorities towards stimulating the domestic economy’ is clearly aimed at dealing with the economic challenges the country is currently facing.
In a bid to achieve more with less, the tight fiscal space for 2020 requires refocusing resources on priority areas of economic diversification and job creation.
“We are confident that economic diversification and job creation can be attained with continued public and private investments in the agriculture, tourism, mining, energy and manufacturing sectors,” Dr. Ng’andu stated during his 2020 budget presentation.
Policy Monitoring and Research Centre Executive Director Bernadette Deka Zulu shared recently in response to the 2020 national budget reveal: “With relation to agriculture, we call for scaling up of the Farmer Input Support Program with more priority being given to the E-voucher as opposed to Direct Input Supply (DIS) so as to promote agriculture diversification.”
With decreased electricity output over the years, which has negatively affected the economy, the government has plans in place to upgrade its power plants and increase output. Power projects such as Bangweulu and Ngonye Solar Power plants generating a combined total of 90 megawatts have been completed and are operational. Further, the construction of the 750 megawatts Kafue Gorge Lower Hydropower Station Project and upgrading of Lusiwasi Upper Hydropower Station to 15 megawatts are expected to be completed in 2020. The upgrading of Chishimba Falls Power Station from 6 megawatts to 15 megawatts will commence in 2020. In addition, the developer of the 2,400 megawatts Batoka Hydropower Plant between Zambia and Zimbabwe has been identified.
It’s also encouraging to note that under the National Industrial Policy, the government aims to promote export-oriented industrialization as progress is being recorded in the export of products such as cement, honey, and detergents. In line with the National Local Content Strategy, these products are being manufactured from local raw materials.
Economic priorities for 2020 include creating a foundation for improved economic management, sustainable power generation and safeguarding people’s welfare through consistent public investments in education, health, and agriculture. These all fall in line with the country’s aspirations outlined in the Seventh National Development Plan (7NDP).

Sunday, January 12, 2020

Engulfed by the lake


 – by Derrick Silimina
Nowadays
Fishermen who depend for their livelihoods on Zambia’s Lake Kariba are increasingly drowning in the lake, victims of fierce storms that are likely related to climate change.
Early this month, in the latest instance of a series of tragic accidents, two fishermen drowned on Lake Kariba after a massive wave, driven by furious winds, hit their fishing rig and caused it to capsize. Two other fishermen on the rig survived. Last month, five fishermen drowned on Lake Kariba in separate incidents. In general, the rate of deaths by drowning for fishermen on the lake has been rising steadily in recent years.
The incident in early November followed a sadly familiar course: In the wee hours of the morning, a massive storm built upon the lake and overwhelmed the fishing vessels moored there.
The latest victims were based in Siavonga District on Lake Kariba’s northern shore. The lake, which lies along the border between Zambia and Zimbabwe, is among the world’s largest man-made lakes by volume. The men had been fishing for kapenta, a type of sardine.
Drowning has become an increasing concern in other coastal regions as well. According to the World Health Organization (WHO), drowning is the third leading cause of unintentional injury-related deaths worldwide. In 2015, there were an estimated 360,000 annual drowning deaths worldwide.
The deaths, while tragic in themselves, also cast a cloud on the region’s economic future. After tourism, fishing is the second most important source of employment in the Siavonga district. In Zambia, fish is an important component of food security, with Lake Kariba accounting for 70 % of fish protein, according to the Fisheries Department.
Climate change is a likely cause of the series of drownings since vessels that previously were seaworthy have proved no match for more powerful storms.  Missing upgrades to the vessels may also be an issue. “I suspect that the fishing rig sunk because most of these rigs have mechanical challenges,” said Felix Kanyembo, a Siavonga fishmonger.
Accordingly, local authorities have called for tighter construction standards and other security measures to protect the lives of fishermen on the lake.
Others in the region see the problem entirely differently. Local folklore holds that ‘Nyami Nyami’ or ‘Water Spirits’ are causing fishermen to drown on the lake. According to African mythology, ‘Nyami Nyami,’ the River god who lives in Lake Kariba, is a serpent-like creature about three meters wide.
Some members of the local Tonga tribe who witnessed the construction of the Kariba dam wall in the 1950s add a further interpretation. They say the River god is married and that the building of the Kariba dam wall separated him from his wife. To the tribesmen, the recent series of drownings is nothing more than the River god’s revenge.
Moses Haambote, a Siavonga resident, is one who believes in this interpretation. Locals usually consult elders and perform rituals before going out on the lake, he notes. “If you ignore their guidance, you embark on a trip at your own risk,” he adds.

Derrick Silimina is a freelance journalist based in Lusaka, Zambia. He focuses on Zambian agriculture and sustainability issues.
derrick.silimina@gmail.com

Tribal leaders disagree on copper mine


 – by Derrick Silimina
Nowadays
Adding to the controversy over a proposed open-pit copper mine in Zambia’s Zambezi National Park, various local tribal leaders are speaking up – on both sides of the issue.
While some tribal leaders in Zambia align themselves with the developers, saying the project will bring much-needed jobs and prosperity, others support tour operators and environmental activists, who say the mine will pollute the environment and damage wildlife.
The controversial Kangaluwi mining project – in the Lower Zambezi National Park, which lies on the north side of the Zambezi River – recently won a go-ahead from Zambia’s High Court.
The project’s licensee, Mwembeshi Resources Ltd. and its owner, Dubai-based Grand Resources Ltd, could soon start clearing land at the site, which lies between two seasonal rivers that flow into the Zambezi.
Now, tribal leaders are joining the debate, on both sides of the issue. Chieftainess Chiawa of the Goba people in Kafue district – to the west of the mine –  raised objections. “What will happen to all those animals when mining starts with all its noise?”, she asked. “I am really scared.” She notes that the Lower Zambezi valley provides a critical biodiversity link between animals in the Kafue and the Luangwa valleys.
However, Chief Mburuma of the Nsenga-Luzi speaking people in Luangwa district said the court should hold the project’s opponents in contempt. “The mine is in my chiefdom and we in Luangwa District are the people that need to be asked first,” he said. “I condemn certain chiefs who say this mine should not go ahead. It’s not in their chiefdom.”
The Kafue district “is far away from the mine,” he told journalists. “People in my district want the mine. We have no jobs here, due to lack of economic activities.”
Similarly, another tribal leader, Chief Mpuka of Luangwa district, said the proposed mine will create much-needed jobs. He added that tour operators – the major opponents of the mine – are the ones responsible for depleting animal herds in the park.
“They are airlifting the animals to other places that we don’t know,” Chief Mpuka said. “Most of the species, especially in the feline family, are depleted in this area. Where you find the animals are in Kafue, not here. So which animals are they protecting?”
Unemployed young people also support the project. “We welcome it, as it will be a source of alternative income for the people here in Luangwa district,” said Wisdom Mpundu, a 25-year-old youth of the Luangwa district. “The only usual source of income we have here is fishing, but the fish are being depleted and this problem is growing.”
Another youth, Moses Nkumbu, agreed that the government should not listen to the mine’s opponents. And Pauline Kalasa, also a young person in Luangwa, said many people will benefit from the mine project. “Look at the north-western and Copperbelt provinces, they are developed because of mining,” she said. “This is why we want the mine to come here.”
Environmentalists and tour operators argued unsuccessfully in court that the proposed mining operation threatens the park’s wildlife and environment.
Speaking with opponents of the mine before the high court decision, Ronald Chitotela, Minister of Tourism since July 2019, said the court should keep environmental concerns in mind when deciding on the appeal filed against the mine permit.
Noah Chongo, the national coordinator of the Zambia Community Based Natural Resources Management Forum, an organization launched by the former Tourism Ministry, said the government should revoke the mining license to protect the park and its wildlife.

Derrick Silimina is a freelance journalist based in Lusaka, Zambia. He focuses on Zambian agriculture and sustainability issues.
derrick.silimina@gmail.com