Making Rides Cheaper

By Derrick Silimina

In Zambia, new mobile-phone based applications ease hailing of taxis and make rides cheaper. However, traditional taxi operators claim the development is running them out of business.

There are new, technology-based smartphone applications that use the customer’s phone to detect their specific location using the global positioning system (GPS). The apps are revolutionizing the transport sector globally, instantly connecting the users to the nearest available driver. 

Inspired by brands like Uber and Taxify, more ride hailing apps are entering the transport business in Africa. These first became popular in South Africa, Kenya and Nigeria.

Now, commuters in Lusaka are excited after the entry of two taxi hailing apps, Ulendo and Yango taxi, into the transport sector. 

“I am a first-time user of Ulendo and I enjoyed the services I received in the past two days while in Lusaka. My movements were made easier and faster”, said Caroline Mwamba. 

The new service providers promise delivery of fast, reliable and affordable rides to consumers in Lusaka. With a regular taxi, a trip from Lusaka’s central business district to Kenneth Kaunda’s International airport costs approximately K500 (€33) but with Ulendo, the offer rate is from as low as K300 (€20).

Yango, a Russian ride-hailing, delivery and e-grocery service app operating in Europe, Africa and the Middle East has recently entered the Zambian market too. Yango is a part of Yandex, a large Russian IT company. 

Yango, currently a cash-only service, allows a user to order a car by inputting their destination address and the app algorithms automatically calculate the price of the trip beforehand. Rides in Lusaka ordered with Yango start at K40 ($2) with a distance of about 3 kilometers. 

However, the market entry of ride-hailing apps has been met with mixed feelings by traditional taxi operators. The lower price rates offered by Ulendo and Yango are very tempting for most clients. 

“As you can see, we are just languishing here. The new taxi app is affecting our business. We urge the government to regulate this industry to enable a conducive business environment for all operators,” says Timothy Tembo, a local traditional taxi driver who operates at Kulima tower bus station.

These traditional taxi drivers attribute their higher fares to operational fees such as tax levies and registration fees they must pay unlike the mobile application operators. 

They also accuse the apps of using aggressive below-cost pricing and using drivers who operate without taxi permits from the local authorities.

Despite these challenges, experts are feeling that tech-based apps are positively disrupting transportation and will lead to better services. 

Jimmy Njobvu, an IT expert, is optimistic and says: “I see growth of the IT sector on the local market. Zambia joins other African countries like Ivory Coast, Ghana, Cameroon and Senegal where apps like Yango have launched their service.”

Covid-19 Impacts Worldwide

 

By Derrick Silimina, Bimbola Oyesola, Rukamanee Maharjan

The pandemic has affected the daily lives of people all over the world. Many lost a loved one and became ill or unemployed. Things that were taken for granted before, such as traveling, shaking hands or one‘s familiar workplace were suddenly in question. We asked some of our authors to share their personal experiences with us. We will present their contributions on our website in three parts. 

This is part one.

Zambia: Running out of medicine

Zambia’s first cases of Covid-19 occurred in March 2020. Since then, life in the country has been disrupted. 

The health sector was affected in particular. Medical facilities ran out of essential drugs such as cough syrups, painkillers and vitamin C supplement drugs. 

The demand was unusually high and beyond health providers’ expectations. This shortage has negatively affected many peoples’ daily lives. For instance, my five-year-old child had been due to undergo a routine surgery at our local hospital at the time Covid-19 broke out. 

However, he could not proceed, because the hospital lacked necessary drugs and surgical tools. Luckily, the surgery has been performed in the meantime. 

The government’s failure to plan ahead and procure enough drugs and health equipment is certainly one of the key lessons of Covid-19 in Zambia. The country needs to better prepare for future health emergencies.

Derrick Silimina is a freelance journalist based in Lusaka, Zambia.

derricksilimina@gmail.com

Nigeria: Travel restrictions and job loss

As a journalist, I used to travel a lot before the pandemic. Once per year, for example, I used to attend the International Labor Conference in Geneva, Switzerland. 

When Covid-19 hit, however, journalists in Nigeria couldn’t even attend assignments on the local level as traveling within the country was restricted. 

Consequently, it has become difficult to generate stories. Some of my colleagues lost their jobs and now work as freelancers without earning much income. I also know of a former leader in the tourism union who became unemployed. 

He used to work in a hotel and now has to move back to his farm. Many workers in Nigeria were eased out with a promise that they would be recalled once the situation would improve. 

Yet, they never got a second chance as the country is still in an economic crisis. One positive aspect of the Covid-19 pandemic is that Nigerians are now more conscious of their health.

Bimbola Oyesola is a Lagos-based journalist.

oritokeoyee@gmail.com

Nepal: Mourning society

Nepal is a grieving nation. All of us have lost someone near and dear to us during the first, second or third wave of the Covid-19 pandemic, including family members, friends and coworkers. 

My maternal aunt caught the virus and did not receive intensive care on time. She died. I survived two infections and feared for my small kid while staying at home in isolation. 

At present, there is a lot of talk about the “new normal” or about digitisation. However, we did not talk much about what we have been through. 

Moreover, it hurts to know that much suffering could have been avoided if Nepal had a better health-care system. During the second wave, too many people died because they lacked oxygen. 

Some of them might still be alive if more hospital beds had been available, especially in intensive-care units. However, the government failed to respond promptly and take necessary measures.

Rukamanee Maharjan is an assistant professor of law at Tribhuvan University, Kathmandu.

rukumaharjan@gmail.com

Wonders of A Versatile Plant

By Derrick Silimina

Bamboo, the giant grass, is a plant with the fastest growth, and due to its high productivity rate, is a valuable source for a large number of durable products and sustainable year-long income. 

The International Bamboo and Rattan Organization, an intergovernmental organization registered with the United Nations that promotes the growing of bamboo, says the global bamboo economy is now valued at $60 billion, and is a potential income generator for rural communities. 

But it was not until recently that widespread commercialization of bamboo began taking root in Uganda and the African continent as a whole, spurring hopes of generating income and creating jobs for the rural poor. 

When Uganda’s then Minister of Water and Environment Flavia Munaaba Nabugere visited China to attend a ministerial seminar on bamboo in 2011, she was inspired by China’s ingenious bamboo innovation. The event served as an eye-opener to the abundant potential of the plant. 

“It got me interested and as minister then, I was able to nominate people from the government and from the community to attend training seminars on bamboo in China. I started mobilizing people countrywide to plant bamboo while demonstrating products that are made out of bamboo,” Nabugere told ChinAfrica. 

To tap into this lucrative green resource, Nabugere, against all odds, made a bold decision to enter into the forestry business through bamboo nursery production in a bid to add value to the plants. 

Nabugere noted that since 2016 when her ministerial term of office came to an end, Chinese experts on bamboo production have conducted training on construction, furniture-making and wetland management. 

“I value the knowledge transfer from China as crucial to stimulate the interest in bamboo as it gives the chance to promote a green economy. I do seedling generation and supply seedlings to farmers. I also plant bamboo and encourage people to plant and join the Uganda Bamboo Association,” she said.

   

Green economy 

Some farmers have since begun to commercialize bamboo because the profit potential has become even greater as bamboo plays an important role in climate change mitigation, and bamboo growing offers the possibility of increased income through carbon credits. 

The Uganda Bamboo Association has 400 enterprises engaged in different facets of the bamboo economy. The former minister revealed that she has up to 6 hectares of mature bamboo and engages her members to do restoration planting on 500 hectares of degraded forest.  

Nabugere, who is also the secretary general of the association, incubates bamboo enterprises through training in value addition and by supplying bamboo raw materials including bamboo poles, bamboo seedlings and shoots. 

“Bamboo looks simple, but it is complicated to grow it. With time, I have learned through training and day-to-day experience which seedlings survive, how to manage bamboo and which bamboo is mature for use,” she said.  

According to the Uganda National Bamboo Strategy and Action Plan (2019-29), the government aims to use bamboo in rehabilitating 375,000 hectares of degraded land by 2029 at a cost of about $45.8 million to protect the environment and provide income to rural communities. 

Vital source of income 

The bamboo strategy is designed to improve the livelihoods of Ugandans, especially those living in rural areas, through raising the incomes of the poor people, increasing the number of jobs and enhancing the contribution of bamboo forests to Uganda’s economic development. It is aimed at propelling the green economy development, and achieving the domestic and international development targets and commitments of the Government of Uganda. 

As the world bamboo market grows, led by China and an increasing demand for sustainable products in Europe and the U.S., bamboo enterprises in Uganda have over the years introduced various products for the local market, including toothpicks, chairs, tables, ornaments, mortars and pestles, among others. 

“Apart from growing bamboo plants, our members make and sell bamboo products and crafts like furniture, jewelry, desk organizers, wine holders, saving boxes, sugar bowls, tins, and toys,” Uganda Bamboo Association Administrator Precious Kavubu said. 

Edwin Mwesigwa, one of the exhibitors at the just-concluded Harvest Money Expo 2022, Uganda’s largest agricultural exhibition held in Kampala, said many visitors passing through his exhibition stall were awed by the products made out of bamboo.  

“I like being creative, and out of the bamboo poles I purchase from local farmers, I can make various products for sale and this is what sustains my family. In future, I will consider planting bamboo,” Mwesigwa said. 

Ruth Biyinzika, one of the visitors, shared her excitement after she bought a souvenir made out of bamboo. 

“It’s interesting to see the by-products from bamboo that are made by our local producers here in Uganda. I thought products like toothpicks, ornaments and others I have known all my life can only be made in China; but it’s amazing to see them being produced here,” Biyinzika stated. 

Asked how the Chinese training in the bamboo value chain is contributing to growth of the association’s members, Nabugere said that her association’s experience has been both exciting and challenging.  

“First, we realized that with simple tools, we are able to make products out of bamboo, and saw the potential for youth employment. Now, the challenge is to obtain technology to make products such as charcoal, timber, and timber boards for export, as we are still doing manual value addition with simple tools,” she said. 

Solwezi Select VC win pre-season tourney

By Derrick Silimina

Solwezi Select, a volleyball club dedicated to providing its athletes with technical, strategic, physical and mental training needed to reach their goals has become a force to reckon with in the north western province.

Recently, the Solwezi based youthful Volleyball club won all the games for both ladies and gents team during the pre-season tournament organized and hosted by the North western University College of Health and Applied Sciences. 

The Solwezi Select VC ferociously beat their opponent teams including North western university, Barrick Lumwana, Kalumbila council, and Catholic of Lumwana.

“We believe in winning, and in enjoying the experience, but these are both components and by-products of a goal which is more immediate and far reaching: hard work!” Solwezi Select Club Admin Mufwaya Kyembe said.

Kyembe said the tournament was held in view of the college or Barrick lumwana’s quest to sponsor the 2022 Independence tournament.

As a youthful VC, Solwezi Select is composed of players from five (5) schools within Solwezi district including North west school of excel, Big brother school, Tumva'ganai school, Kalumbi school and Kyawama sec school.

With its motto dubbed; “Clear head. Full heart. Can't lose,” the club is indeed reimagining the future of volleyball by building young ones in the city with a community foundation of enthusiastic junior volleyball club.

“We hope to provide players of every caliber with an opportunity to play volleyball in life and sports because what you put in is what you get out and we try to teach our players how to create real results by having a great attitude, giving 100 percent and being a team player,” Kyembe added. 

EVs Gain Traction Worldwide

 

By Derrick Silimina

Use of electric vehicles is gaining traction worldwide due to their low carbon footprint.

The governments of Zambia and the Democratic Republic of Congo (DRC) are partnering to invest in production of lithium-ion batteries which power these electric vehicles (EVs).

Zambia and DRC have vibrant mining sectors. They form part of the so-called “Copper belt” which stretches from the Central African Republic, the DRC and Zambia. 

This region accounts for the world’s largest supply for cobalt, a mineral used in the production of lithium-ion batteries.

A June 2020 report by the United Nations Conference on Trade and Development (UNCTAD) predicts that some 23 million electric vehicles will be sold over the coming decade. “The market for rechargeable car batteries, currently estimated at $ 7 billion, is forecast to rise to $ 58 billion by 2024,” the UN report says.

Benchmark Mineral Intelligence, a body that researches and publishes market data on the lithium-ion battery and EVs supply chain, states that global demand for cobalt has tripled since 2011 in the battery sector alone. It further predicts that demand for cobalt will reach 190,000 metric tons by 2026.

Whereas the precious metal cobalt is sourced largely from the DRC and Zambia, refining and value addition to the metal takes place elsewhere, in countries such as Belgium, China, Finland and Norway. 

Zambia has advanced its manufacturing sector with potential to produce car batteries.

For this reason, the southern Africa country has sought for a partnership with its neighbor DRC to boost their mining and manufacturing sectors to be able to take advantage of the global demand for cobalt and lithium-ion batteries. By doing so, they hope to shorten supply lines between cobalt refineries and battery-making plants.

The two governments recently signed a memorandum of understanding; “Zambia–DRC Battery Council” which they hope will make them massive producers and refiners of cobalt for electric vehicle batteries. “Our focus is job creation for the people of our two countries through economic diversification, job and wealth creation for the economic and social transformation of our citizens,” said president Hakainde Hichilema of Zambia when he signed the agreement in Lusaka alongside his DRC counterpart president Felix Tshisekedi.

The move by the two countries has received support from environmentalists and climate change activists who see it as a step in the right direction. 

“If our country effectively mines cobalt and copper for the electric vehicle battery value chain, it’s going to be a win for Zambia, a win for the EVs industry and a win for the environment as we look to cut fossil-fuel emissions on a global scale,” said Robert Chimambo, a local environmental activist.

Zambia’s foreign affairs and international cooperation minister Stanley Kakubo expressed support for the partnership saying: “The joint Zambia-DRC battery precursor initiative has a vision to create a competitive electric vehicle battery value chain aimed towards sustainable development and inclusive growth. It is in line with the country’s development aspirations to bring about a more diversified and industrialized economy which will contribute towards job creation and the improvement of the Zambian people’s livelihoods.”

Several Chinese, Japanese, US and European automakers have assembly plants in South Africa for traditional cars but electric car producers like Tesla are absent. 

It is only hoped that as EVs become more popular and initiatives like that of Zambia and DRC take off, the situation will change.

Landmark Industrialization Agenda

By Derrick Silimina

In many Zambian schools, students do not have desks to sit during the lessons. In addition, most of the furniture used in schools is imported. 

For this reason, the “2,000 Desk project” has been launched in the town of Solwezi by the government to equip school kids with capacity and competences through a youth skills empowerment training programme.

The programme supported by the Solwezi Trades Training Institute (SOTTI) and Kansanshi Mines is creative because it will tackle multiple challenges in Zambia. 

Schools will be provided with the much-needed furniture for their pupils while the government will attain its objective for skilling citizens and creating much needed jobs.

Kansanshi Mining, a subsidiary of the global copper company First Quantum Minerals, has offered to supply steel and wood for the project. 

SOTTI on the other hand will train the artisans who will produce the desks for the schools. The institution is already training 80 women in various skills programs under the support of the Africa Development Bank (ADB).

“We should no longer import desks because as a country we have more than sufficient capacity and capability to be able to make our own desks. We are answering that call saying that yes, we can,” said Felix Mutati, the minister of technology and science.

The 2,000 Desk project has so far absorbed 30 students in metal fabrication and 30 students in carpentry and joinery. 

The government sees the initiative as a reflection of its development objectives encompassed in the 2030 agenda and the revised 8th National Development Plan which are in line with SDGs.

Mutati believes the initiative can absorb thousands of unemployed youth who drop out of school due to various challenges. 

He says that SOTTI is providing training for youths with little or no education. Most of them will work as carpenters or metal fabricators in the formal and informal sectors.

North-western province minister Robert Lihefu described the project as a landmark aspiration of Zambia’s new government saying, “I am extremely excited to be part of this launch and I hope to see more youths benefit not only from here in Solwezi but also in other parts of the province because we have adequate land and forests to support the initiative.”

Kansanshi Mine General manager Anthony Mukutuma believes the project represents sustainable community empowerment. “On behalf of Kansanshi as well as my team, we are always very happy to take part in sustainable projects such as this one and we look forward to continued involvement in other programmes in the district,” he said.

“The school’s desk project will definitely enhance our local industrialisation agenda and create the much-needed jobs, reduce poverty, promote self-sustainability among the youth and economically empower them to play a more meaningful role in the development and uplifting of their communities and the nation at large,” Boyd Muleya, a Lusaka based economist says.

Zambia’s Long Walk to Debt Recast

By Derrick Silimina

In his quest to jump-start the ailing economy, tackle external debt, tame inflation, create jobs for young people and inspire the confidence of international investors, President Hakainde Hichilema’s administration recently secured a deal in principle with the International Monetary Fund (IMF) that it hopes will anchor talks with creditors.

While the debt crisis is once again in the spotlight, stakeholders have been playing hide-and-seek over who is responsible for blocking a comprehensible deal to restructure the country’s debt stock. 

Although Zambia seeks to rework as much as $17.3 billion of external debt, it faces a complex test case for international efforts to tackle the looming crisis. 

United Kingdom Minister for Africa Vicky Ford recently said that Zambia’s debt restructuring efforts are being delayed by one international creditor that seems to be taking more time to make a decision.

Arguably, China is the largest creditor in Africa and it is part of the G20 Debt Service Suspension Initiative (DSSI), which is supported by the World Bank and the IMF, and has suspended debt payments to dozens of the world’s poorest countries. 

Zambia’s commercial and state-owned Chinese lenders account for over $5 billion, making the Asian country by far the biggest creditor, according to data from the Ministry of Finance. 

According to financial analysts, Chinese creditors helped finance a spending splurge that led to a socio-economic crisis under Edgar Lungu’s fallen regime.

In this context, Minister of Finance and National Planning Situmbeko Musokotwane has shared his hope for rapid progress on Zambia’s debt restructuring. 

“The New Dawn administration of President Hakainde Hichilema has a duty to the Zambian people to transform the country’s economy, so that it achieves sustainable growth, becomes resilient, more attractive to investors and internationally competitive. This methodical approach will help us lift our people out of poverty through the creation of decent jobs, development of enterprises, and sustained formation of wealth,” Dr Musokotwane said. 

This was during the just-ended World Bank Group and its Bretton Woods Partner, the IMF Spring meetings at the IMF Headquarters in Washington, DC, United States of America. 

COMPLETED 

The IMF has since confirmed having completed a joint debt sustainability analysis for Zambia to assess debt relief and strengthen its return to sustainable debt levels.

 

Speaking during the same event, IMF Managing Director Kristalina Georgieva commended Zambia for making impressive progress in implementing measures under the country’s economic reform programme. 

“We share the hope for rapid progress on Zambia’s debt restructuring so that the IMF Board can soon consider the authorities’ (Zambia) programme. This comes at a crucial time when we are entering a new phase of the debt restructuring process with the critical path to form the Official Creditor Committee,” Georgieva said. 

Following the Zambian Government’s concern at the delays in the formation of the Official Creditor Committee under the G20 common framework for debt restructuring, the IMF further announced that China is now committed to join the creditors’ committee on Zambia’s early debt resolution. 

Zambia, which became Africa’s first pandemic-era sovereign defaulter in 2020, has been seeking to restructure its dollar obligations under the Group of 20’s Common Framework, a set of guidelines that the most powerful countries drafted to mitigate debt crises in poorer countries. 

Speaking during the G20 Finance Ministers meeting, China’s Finance Minister Liu Kun affirmed that China, with the principle of collective action and fair burden sharing, is willing to implement the G20’s Debt Service Suspension Initiative in a methodical fashion on a case by case basis. 

In its latest report, World Bank Group President David Malpass met with Minister for Finance and National Planning Situmbeko Musokotwane of Zambia. 

COMMENDED 

President Malpass has commended Zambia’s progress in implementing fiscal and structural reforms and improving public service delivery in health and education. 

President Malpass also welcomed Minister Musokotwane’s thoughts regarding the impact of the war in Ukraine on Zambia. 

Malpass and Musokotwane further discussed the World Bank Group’s (WBG) support through IDA19 and IDA20, with projects under preparation for FY22 for a total amount of U$560 million. 

Malpass underscored to Dr Musokotwane the need for a deep and rapid debt restructuring for Zambia. 

The World Bank head welcomed China’s announcement to join the creditors committee for Zambia under the G20 Common Framework adding that a potential budget support operation from the World Bank could accompany a debt treatment plan by creditors and an IMF programme once it is approved. 

“Urgent action from the international community is critical at this point to support Zambia’s macroeconomic stability and debt sustainability to spur growth and poverty reduction,” Malpass stated. 

POSITIVE 

Some local financial experts are positive about the outcome of the debt talks at the just-ended Spring summit and they anticipate the strengthening of the economy. 

Zambia Revenue Authority Board chairperson Dr Caleb Fundanga recently acknowledged that the slight appreciation of the Kwacha in recent days can be attributed to China’s commitment to join the Official Creditors Committee for Zambia’s debt restructuring. 

According to ZANACO’s Indicative Forex Rates as at April 26, the Kwacha was buying at K17.03 and selling at K17.36. 

And economist Chibamba Kanyama says most foreign investors believe in President Hakainde Hichilema as evidenced by the number of invitations he receives to officiate at international investment forums. 

“Zambia is on the international radar. Foreign investors are highly confident about the prospects of the Zambian economy,” Kanyama said. 

Certainly, in the spirit of progressive economic fundamentals, China’s recent pronouncement and commitment is an important building block to cement Zambia’s case for debt restructuring. 

“Thank you to China and other creditors for agreeing to join the common framework on debt restructuring... we are on course,” Hichilema stated.