Volume 4 - October 2008

Volume 4 October 2008

Presidential Election – Close Contest

RB maintains lead, Sata makes inroads in urban areas while Northern Prov- of the Patriotic Front (PF) was the already known candidate of his party even
ince becomes a major swing area in the October 30 election though his hand-picked central committee went through the motions of formally
rubber-stamping his nomination on August 30. Third in the race is the youthful
The October 30 presidential race has come to be between two grey-haired age- Hakainde Hichilema of the United Party for National Development (UPND) who
mates - they are both 71 years old - acting President Rupiah Bwezani Banda was confirmed the candidate by the party’s National Management Team.
and Michael Chilufya Sata. Both are former Lusaka Urban District Governors in
the administration of Dr. Kenneth David Kaunda. Both have strongholds. But The barometer favours Banda but Sata remains the wild card. He is fighting tooth
at this stage at least, Banda has the lead. His lead is attributable to a number of and nail, employing all strategies to catch up with ‘RB’. Banda’s chances have
factors, including incumbency and the nationwide spread of the ruling party, on been bolstered by the closing of ranks within the MMD after the September 5
whose ticket he is standing. elections. Had the party split after the vote, ‘RB’ would have had a real mountain
to climb. But in the event, all the losing candidates pledged to support Banda and
Banda is the standard-bearer of the ruling Movement for Multiparty Democracy some immediately hit the campaign trail. The MMD has 88 Members of Parliament
(MMD) after he convincingly thumped Finance Minister Ngandu Peter Magande scattered across the country except the Southern Province. This has helped Ban-
and thirteen others in the September 5, election to choose the MMD presidential da’s team to easily put in motion a nationwide campaign more or less immediately.
candidate by the party’s 60-member National Executive Committee(NEC). Sata They all have instructions to deliver their constituencies to Banda if they want to
be re-adopted in 2011. “They have to
prove themselves and show they
can deliver their areas,” said one
Banda campaign organizer. The
hitch however is that not all the
MPs are popular and so they
may not perform to expecta-
tions. Banda’s chances are
also boosted by his incumbency.
He campaigns and travels as
the acting President. He is the
only one who is likely to touch all
the 72 districts within the short
timeline. Even with all these ad-
vantages, Banda faces an uphill
battle to convince Zambians that
his ‘nice and calm personality’ is
not a weakness and that he can
be decisive. There are fears that
his victory could see the return
of the old folks from the United
National Independence Party
(UNIP), a party Banda belonged
to from his youth until 2002. His
opponents have insisted that he
remains a member of UNIP even
though the former ruling party
has disputed his membership.
To pg 2

Contents
Voting Analysis - Page 3 Oil talks fail - Page 8

Sata Vs Banda - Page 4 Zambeef again - Page 9

Campaigns go cyber - Page 5 Where is MOSI? - Page 10

All rights reserved. No portion of this publication may be photocopied, forwarded, reproduced, retransmitted or otherwise redistributed
without prior authorization from the publishers. © 2008 by Brentwood Public Affairs Limited.

Executive Issues
News Volume 4 - October 2008

Presidential Election – Close Contest
This prompted his main rival Sata to dub him “Political Freelancer” who has no
party of his own. The consistent attacks by The Post Newspaper, which has links
to the Mwanawasa family, may reduce Banda’s support base although minimally
as few people take the newspaper seriously nowadays - going by the reactions.
has mainly been confined to the private sector with little exposure to statecraft.
He is expected to win in his native Southern Province and possibly some parts
of Central province. He will probably trail Banda in Northwestern and Western
Provinces. Some of his consolation ballots are likely to be from Lusaka and the
Copperbelt provinces but they are unlikely to catapult him to the top. If he can beat
Sata, then his entry into the race will be justified for future elections.

Zambian Airways -
The high fuel prices and the continued woes at the University of Zambia remain
top on the list of Banda’s negatives-though both are not of his making.

Banda is likely to scoop the entire Eastern province, parts of Northern and Lua-
pula, Northwestern and Western Provinces. He may trail the winner in Lusaka,
Copperbelt and Southern depending on how the other candidates work out their
strategies. This gives him a good lead but not strong enough to assure him of
On Daily Cash
Plan
certain victory.

Sata or ‘King Cobra’ is no pushover. He is not only a populist but has experience
and sheer guile. This election will be the third he will enter as presidential can-
didate. He was twice trounced by the late President Levy Patrick Mwanawasa
in 2001 and 2006. After each defeat, he comes up with a different approach.
He is currently capitalizing on Banda’s perceived weaknesses especially on the
high food and fuel prices, the premature closure of Zambia’s biggest university
(University of Zambia) and the recent salary increments of constitutional office
holders, including ministers. He has back-peddled on his earlier position that he
would deport Chinese investors if elected.
He faces two major negatives. Four months ago, he had to be evacuated
by air to South Africa suffering from what was reported to be an acute heart attack.
His opponents have turned this misfortune into a political sjambok and they are
whipping him pretty hard! It appears to be working especially in the aftermath of
the death in office of President Mwanawasa. People are not quite ready to take
what they perceive to be “another risk.” Sata’s campaign team knows too well the
perils arising from their candidate’s state of health and quickly posted a reply on
his official website. It read; “Sata has one of the best medical histories amongst
all his political opponents. He has only been hospitalized about once in the last
10 to 15 years.” He himself also joined in the defence and threw a challenge to
his rivals: “I’m challenging all the political party presidents that we go and test for
three things, HIV, Kaposi Sarcoma and let them examine our hearts,” Sata said.

Another negative for Sata is the protracted wrangle with the 26 ‘rebel’ MPs from
his party who defied the party directive to boycott the ongoing National Constitu-
tion Conference (NCC), a body that is drafting the country’s new constitution. On
September 6, the rebel MPs through their spokesman Dr. Peter Machungwa an-
nounced that they would not campaign for Sata in their constituencies. “We shall
stay away from the campaigns,” Machungwa said. Most of these parliamentarians
are from PF strongholds. Even though their actions and stance may not be uni-
versally popular, it could make Sata’s campaign difficult as he will now require to
touch almost all the constituencies. We hear some of the rebel MPs have hinted
their support of Banda. Sata is likely to capture Lusaka and Copperbelt provinces
and some parts of Luapula and Northern. He will trail badly in Southern, Western,
Eastern and Northwestern Provinces. Sata will certainly need to do a lot of home-
work in areas such as Southern and Eastern, which command a sizeable number
of registered voters. Without them he is likely to be in deficit yet again. .

The Youngman, Hichilema or HH, will be in the race for the second time. What-
ever his strategy, he probably needed to let go of this one, and possibly enter into
some alliance with either MMD or PF. His chances of winning are slim and even
he must be aware of it. “We want to announce our presence for 2011,” remarked
one of his campaign team members. The much-talked about possible electoral
pact with the PF fizzled out the moment election day was named! Each of the two
would-collaborators went their separate ways!

Reports have it that UPND insiders warned the Youngman that Sata or King Co-
bra would swallow him alive! He quickly placed Billboards, with his portrait around
town before negotiations with PF could begin. Sata denounced him and imme-
diately hit the campaign trail. The would-be marriage came unstuck. Had the
marriage worked, Banda and the MMD would have faced a very strong contest.
HH officially launched his campaign on September 15. Hundreds of his support-
ers were bussed to Mulungushi International Conference Centre for the occasion.
The rest is as they say history. Hichilema’s main advantage is his relative youth
and he is healthy. But he lacks experience in government unlike Sata
and Banda who both served as Cabinet Ministers, District Governors
and senior party officials before climbing the ladder. Hichilema’s life

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 Volume 4 - October 2008 News

Some Voters will be de-franchised
The October 30 elections will be held on the basis of the 2006 Voter Register be-
cause there has been no new registration of voters and time does not now permit
any such exercise. The law provides for continuous voter registration but this has
never been implemented. There are 3.9 million registered voters on the 2006 roll
out of a population of 11 million plus. Turn out is expected to be slightly low due
to a number of factors. Among the key ones are ; loss of National Registration
Cards (NRC), which is a prerequisite for voting, loss of voters’ cards, deaths or
sickness of voters and the migration of voters to different areas. In Zambia, a voter
can only cast a ballot where they were registered. The Electoral Commission of
Zambia (ECZ) has announced that voters’ who lost their cards will be given fresh
ones. However, it is not clear whether the cash-strapped department of National
Registration will also issue NRCs to those who lost them.
Below are the Statistics on the Voter Register per Province

Central 381,939 Number of eligible voters 3,940,053 Number of Provinces 9

Copperbelt 625,505
Eastern 498,649
Luapula 312,593
Lusaka 592,511
Northern 464, 910
North-western 244,599
Southern 503,221
Western 316,102
Female 52.02% Number of Districts 72
Male 47.98% Number of Constituencies 150
Number of wards 1,422
Number of Polling District 6.456
Number of Streams 9,314

Presidential Voting Pattern Analysis

There are 3.9 million voters on the current roll. But Northern Province – with a
total 464, 910 voters is more likely to determine the winner between acting Presi- 464, 910
dent Rupiah Bwezani Banda and opposition leader Michael Chilufya Sata. If 312,593

the province is split, which is more likely, and then the Banda Bandwagon will
roll into State House with few hitches. Banda has Eastern Province which has
498,649 voters while Sata is likely to take Copperbelt and Lusaka Provinces
which have 625,505 and 592,511 voters, respectively. But Banda may not be far
625,505 498,649
behind anyone in Lusaka, Copperbelt and Southern Provinces (503,221), which 244,599
may help tilt the equation when the overall count is done. Western (316,102)
and Northwestern (244,599) provinces may go Banda way but Luapula province
381, 939
(312,593) could go Sata. However, Sata’s inadequacy lies in the fact that his
592,511
popularity does not transcend Lusaka, Copperbelt and parts of Northern and 316,102
Luapula Provinces. The Youngman Hakainde Hichilema will surely capture 503,221

his traditional Southern and some parts of Central (381, 93) provinces. Central
Total number of voters per provnce
province could go to either Banda or Hichilema but the contest will be close
GENERAL
between the two. Sata may not feature in this equation, ELECTIONS
thereby weakening his 2006
overall result. Presidential - National Result by Candidate

PRESIDENTIAL
National : Zambia RESULTS 2006
Candidate Political Party Votes Votes
Received %
Levy Mwanawasa MMD 1,177,846 42.98%
Michael MC Sata PF 804,748 29.37%
Hakainde Hichilema UDA 693,772 25.32%
Godfrey K Miyanda HP 42,891 1.57%
Winright K Ngondo APC 20,921 0.76%
National Totals : 2,740,178
Registered Voters 3,941,229
Votes Cast 2,789,114
Source: Electoral Commission of Zambia
Voter Turnout 70.77%
Valid Votes 2,740,178
Rejected Votes 48,936
Rejected Votes % 1.75%
Constituencies to Date 150
To pg 4
Report Printed at : 02-October-2006 7:19:30 pm Page 1 of 1
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News Volume 4 - October 2008

Who’s who
The Old Man and the Experience SATA - Man of Action

Rupiah Bwezani Banda or ‘RB’ is an old man with the experience. Had it
not been for late President Levy Patrick Mwanawasa, Banda would have
remained in political retirement at his Chipata Farm. Banda is the undisputed
front-runner for the Presidency due to a number of factors including the in-
cumbency and nationwide character of his Movement for Multiparty Democ-
racy (MMD) party. At 71 years, Banda’s political experience has been vast
although some people believe he belongs to the old school. Banda is perhaps
the most educated of the three Presidential candidates. Holder of a Degree in
Economics and Industry, Banda also holds a post-graduate diploma in Devel-
opment Studies as well as a Diploma in International Relations.
Michael Chilufya Sata is a Man of Action as his slogans portray him correctly.
He owes to his political success to himself and, to his credit, has managed
brand and re-brand himself several times. He is the man to watch in this race
even though his poor health has reduced his support base. He may not be
a graduate, but he commands a good following in urban areas because of
his populist rhetoric and his ’90 day’ theory of development. He is the least
educated among the Presidential candidates. Formerly a policeman, Sata
changes policies rapidly
and yet his support remains unchanged. He will be entering the ring for the
third time.
Born: 1937
Education Background: Unknown

Born: February 19, 1937 Positions Held:

• District Governor Lusaka
• Member of Parliament for Kabwata Constituency
Education Background:
• Minister of state Local Government and Housing
• University: Addis Ababa University (briefly) • Minister of Local Government and Housing
• BA (Economic History): Lund University Sweden • Minister of Health
• Post Graduate Diploma in Development Studies (United King • Minister of Labour and Social Services
• Minister without Portfolio
dom) • National Secretary – MMD
• Diploma in Diplomacy and International Relations • President – Patriotic Front
• Business Consultant
Positions Held:
Experience in Government: Vast
• First Ambassador to Egypt: 1964
• Ambassador to the USA: 1967-1970 PERCEPTIONS
• General Manager, Namboard: 1970 Positives Negatives
• General Manager - Rural Development Corporation to 1974
• Man of Action (Worker) • Brutal and dictatorial tendencies
• Permanent Representative of Zambia to the UN: 1974 • Forgiving personality • Anti Foreign Investors
• Understands government opera • Sick for the Job
• Foreign Minister of Zambia: 1975 • Too Old for the Job
tions
• Member of Parliament Munali: 1978 • Pro-poor leadership • Hyper-active (Needs Control)
• Lacks diplomacy
• Re-elected to Parliament: 1988-1991
•
•
Minister of State - Mines
Senior Governor-Lusaka
Election Budget – Queries Raised
Preparations for the Presidential Elections underway
• Director – National Airports Corporation Limited
• Chairman - Chipoza Holdings The budget of ZMK 231 billion for the forthcoming Presidential Elections has
• Chairman - Robert Hudson Ltd raised dust with key stakeholders disputing the figure because it is higher than
• Vice President – Football Association of Zambia (FAZ) the one spent in the 2006 General Elections. Electoral Commission of Zambia
(ECZ) Director Dan Kalale, has justified it saying it is higher as a result of high
• Chairman - Allenwest Zambia Ltd fuel prices and increased wages for public workers who will be hired to conduct
the polls. Kalale said ECZ would engage a total of 70,000 people for the elec-
Experience in Government – Vast tion because the process will be labour-intensive. But Transparency International
Zambia (TIZ) President Rueben Lifuka said the budget is questionable because
it exceeds the 2006 one, which catered for Presidential, Parliamentary and Local
PERCEPTIONS: government elections. He said ECZ needs to provide convincing answers on the
higher budget for one election. Good question, if you ask. The United Nations
Positives Negatives Development Programme (UNDP), through its Election Fund, will provide about
US$ 11.5 million towards the Election. UNDP Resident Coordinator Macleod
• Experienced and cool headed • UNIP member and Old School Politician Nyirongo said his agency will open an account where donors will deposit their
• Likeable personality • Surrounded by wolves contributions ahead of the elections.
• Able to reconcile the nation • Too Old for the Job
• Able to continue the MMD policies • Too nice for a leader
Preparations for the elections are intensifying with some hiccups. Most materials
• Represents stability and continuity • Return of UNIP
• Well connected in the SADC region
have not arrived even though the commission expects everything to be in place
before t October 30. Kalale said the ECZ had to cut corners and relax tender
procedures in order to organize the elections within the stipulated 90-day period
following the death of President Levy Patrick Mwanawasa who died in Paris on
August 19, 2008.

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 Volume 4 - October 2008
Who’s who
The Youngman and the Boards
The Youngman, Hakainde Hichilema or ‘HH’ should have been the sure
front-runner in the forthcoming Presidential Elections had he played his po-
litical cards well. He is the only one young man in the race and belongs to
the new generation but his failure to unite his party and lack of nationwide
support will affect his chances. Intellectually, he seems to be the man of the
moment even though he has the demeanor of arrogance at times. The lack
of charisma is not doing him any good. Hichilema has an impressive educa-
tional background – Holder of BA in Economics and Business and an MBA in
Finance and Business Strategy.
Born: 1962
Education Background: BA Economics and Business (Zambia)
MBA Finance and Business Strategy
(United Kingdom) • Entrepreneur with a number of • No experience in statecraft
Presidential Campaigns go Cyber
Three special websites of presidential candidates go live
The stakes in the forthcoming Presidential Elections have risen. All the three
candidates have launched their websites, featuring their agenda and vision
for the country. The www.michealsata.co.zm was the first one to go up with
pictures of the 2006 General Elections showing Patriotic Front candidate
Michael Chilfuya Sata addressing huge crowds. Within weeks, new infor-
mation, including latest pictures from recent rallies was uploaded. “Man of
Action,” the site proclaims, with another link asking people to donate funds
towards the campaign. “The presidential election in the next few weeks is
going to be faster and tougher than anything we have faced so far, and our
opponents will do everything they can to tear us down,” Sata declared.
The next website to go up was the www.hakainde.com which caused a
controversy when it carried a story alleging that PF leader Sata had endorsed
the youngman Hakainde Hichilema as the preferred candidate for the 2008
Presidential Elections. Sata and Hichilema had hinted on a possible elec-
toral pact following their successful joint rally to protest against salary incre-
ments for ministers and other constitutional office holders. Immediately the
story was posted on the Hakainde website, Sata’s campaign team uploaded
a disclaimer, attacking Hichilema as a liar. “I cannot be a vice to someone
who is under five and inexperienced...He has never met me to discuss a
government of national unity...it’s a lie”, the statement issued by Sata said.
“If in his eyes I am too old, why then should he consider me for vice? It’s all
in his dreams and wishful thinking. We are filling nominations next week and
are very confident PF will form the next government”. It is difficult to discern
who was telling the truth.
The third website to go live was the www.banda4zambia.com, which equal-
ly features his profile and a huge photo gallery depicting the acting President
Rupiah Bwezani Banda in different situations with world leaders and sports
personalities of his time. “Building on the Promise – Continuity, Good Gover-
nance, Prosperity for All,” read the slogan posted on the website.
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News
Position Held:
Partner – Grant Thornton (Audit Firm)
Chairman – Barclays Bank Zambia Plc
Chairman – Sun International (Z) Limited
Chairman – Media Trust Fund
Chairman – Export Development Programme
Director – Zambia Investment Board
Director – Seedco Zambia Limited
Director – African Life Financial Services Limited
Director –Zambezi Nickel (Bermuda) Limited
Director – West Lake Investment Limited (Mauritius)
Experience in Government: Nil
KEY PERCEPTIONS
Positives Negatives
• Young and Healthy • Arrogant
• Educated (Economist) • Regional leader
private sector investments • Lacks Charisma
Political Blogs
The language could be said to be uncouth and at times totally defamatory – but
that is the nature of blogs. Zambians are drifting to blogs as a source of informa-
tion following the dismal performance of newspapers, which tend to censor letters
to the editor that oppose their preferred candidates. No doubt, the best run and
most popular blog is the www.lusakatimes.com , which has huge traffic. Most
young Zambians are feeding mainly that blog with a number of comments espe-
cially on the upcoming Presidential Elections. Another one that has gone up is the
www.zambia.co.zm/president , which is slowly becoming popular.
INFLATION – Going up and up
September inflation hits 14.2 percent
The officials in the Central Bank or Bank of Zambia should now begin to face
the reality. The much touted single-digit inflation for the year-end seems to be a
pipedream. The Central Statistics Office (CSO), through its monthly survey on
consumer prices, announced that the annual inflation rate has gone up again for
the month of September. It is 14.2 percent, a rather high figure for a country that
projected inflation to be in single-digit. This rate is 1.0 percent point higher than
the August one which stood at 13.2 percent. “The September 2008 inflation rate at
14.2 percent means that prices as measured by the all items Consumer Price In-
dex (CPI) increased by an average of 14.2 percent between September 2007 and
September 2008,” said William Mayaka, acting Director of Census and Statistics
at CSO. He attributed to the rise in the inflation rate to the increase in the cost of
transport, fuel, airfares, new motor vehicles, rent, household energy, furniture and
household goods. Of the total 14.2 percent annual inflation in September 2008,
food products accounted for 7.8 percent points while non-food products in the CPI
accounted for a total of 6.4 percent points.
Weather Forecast: Normal Rain begins
The 2008/09 rainy season to have normal rainfall is most parts
The rains are back at least soon. In October, most parts of Zambia are expected
to experience normal rainfall except in the extreme north and eastern parts of
the country which will alternate between normal and below normal rainfall. The
Meteorological Department of Zambia said the 2008/9 rainy season, which begins
in October, is likely to be normal in most parts of the country. Director of Meteorol-
ogy Maurice Muchinda said the state of the area surface temperatures indicate
neutral conditions although there was a chance of flash floods in some areas.
He said between October and December 2008, most parts of Zambia will have
normal rainfall but after January to March 2009, the country may have
normal to above normal rainfall, Muchinda said.
To pg 6
News
Oil Procurement – talks fail again
PTA/Finance bank picked to finance crude oil importation after talks with
ZANACO collapse while ABSA bank sues government for breach of con-
tract
There must be something terribly wrong at the Ministry of Energy. Ever since a
US$ 1.2 billion tender was awarded to Independent Petroleum Group (IPG) of
Kuwait for the long-term supply of crude oil, government has failed to organize a
financier for the deal. A competitive tender went up and Standard Bank of South
Africa was picked as the best bidder among the rest. But within a short period
of time, the negotiations failed after the Zambian government, we hear, failed to
provide guarantees for the transaction. Another tender was placed and the par-
tially state-owned Zambia National Commercial Bank (ZANACO) emerged win-
ner after a three-horse race. The bank scooped the tender after beating Citibank
and a joint bid by Finance Bank Zambia and the PTA bank. Negotiations with
ZANACO took long and Energy Minister Kenneth Konga issued a number of
deadlines which the parties failed honour until September 11 when government
formally terminated negotiations. It appears that it is the Zambian government
that was unable to satisfy would be financers once again. ZANACO Managing
Director Mark Wiessing said the Zambian negotiators wanted his bank to dis-
burse the funds without providing any security, an unwise thing for any serious
bank to undertake at this time. Commercial terms between the two parties had
been agreed and the agreement was sent to the Attorney-General Mumba
Malila to provide legal opinion. However, the lack of government guarantees
is understood to be what messed up the conclusion of the transaction. Energy
Ministry Permanent Secretary Peter Mumba said the Zambia National Tender
Board (ZNTB) had allowed his team to open negotiations with another financier
for the purposes of fast-tracking the procurement of 1.5 million tonnes of crude
oil. ZNTB spokeswoman Hazel Zulu confirmed that they had allowed govern-
Yellow Card to Total – BP Zambia
BP and Total drag Competition Commission to court but authorities main-
tain demand for an end to the two firm’s monopoly in the petroleum
sector
The market dominance of two key foreign oil marketing companies, Total
and BP, is raising alarm in regulatory circles. Regulators have observed a
growing trend towards retrogressive competition and unfair trading prac-
tices, which marginalizes small locally-owned companies. Government
has joined the chorus and asked the Zambia Competition Commission
(ZCC) to intervene. Experts say the current fragmented and uncoordinat-
ed regulation of the petroleum sector has affected outcomes. “We would
propose a review of the energy policy in so far as it relates to the procure-
ment, storage and transportation of petroleum products to ensure that no
less than two players monopolise any part of the petroleum chain” said
Thula Kaira, ZCC Executive Director. Currently, it appears that there are
a lot of ad-hoc arrangements, which make regulation problematic. For ex-
ample, some mining companies have tied themselves to some “strange”
and long-term supply arrangements that have affected their freedom of
trade when the preferred supplier fails to meet contractual obligations.
“We believe that long term strategic planning in the petroleum sector in-
volving a large spectrum of entrepreneurs is essential,” Kaira said.
Ideas of how to change the status quo abound. Many believe
that the Citizens Economic Empowerment Commission (CEEC)
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Executive IssuesIssues
Volume 4 - October 2008
ment to proceed with negotiations on a joint bid between PTA bank and Finance
Bank Zambia Limited, which lost the initial tender. We hear cabinet has asked
Konga to make sure that the delay in the deal does not affect the fuel supply in
the country.
Meanwhile, the Amalgamated Bank of South Africa (ABSA) has decided to open
old wounds by taking the Zambian government to court over alleged unpaid dues
for the importation of crude oil in 2001. The South African bank is demanding to
be paid US$ 74.3 million following the termination of a crude oil importation deal
involving Trans-Saharan Trading or TST which won the tender to supply Zambia
before the deal was cancelled.
Slashing Fuel Prices
Acting President Rupiah Bwezani Banda gave clear instructions in his first
National Address to Finance Minister Ngandu Peter Magande to find ways of
reducing the fuel prices, which are said to be the highest in the Southern Africa
Development Community (SADC) region. At current prices, Petrol went up from
ZMK 8,355 to ZMK 9,458 per litre, Diesel from ZMK 7,232 to ZMK 8,190 per litre
and Kerosene from ZMK 5,104 to ZMK 5, 745 per litre. Magande was to form a
taskforce jointly with the Ministry of Energy to find ways of, firstly, reducing the
taxes levied on fuel in order to bring down the price. The Energy Regulation Board
(ERB) reduced the prices on September 24. ERB chairman Sikota Wina said
petrol and diesel pump prices were reduced by ZMK 1, 956 and ZMK 1, 091 re-
spectively while that of Kerosene went down by ZMK 852. The opposition claimed
the move was a political ploy to win votes ahead of the Presidential Elections.
Magande has hinted that the effects of the new prices to be announced will be felt
only in November, a month after the elections, because the existing fuel stock was
acquired on the old prices.
through its Fund could help balance the equation. Deliberate attempts
should be made to encourage Zambian entrepreneurs to invest in the
importation of petroleum products as well as in storage and logistical
capacities. “Until critical logistical capacity is built and developed to sus-
tainable levels through attractive entry conditions, it is likely that the pe-
troleum industry in Zambia will continue to be vulnerable to the activities
of dominant firms in the sector,” ZCC said. Entry into the market requires
huge capital investment, which most small Zambian firms are unable to
organize. Suggestions have been made to encourage mining companies
to enter into supply contracts with small Zambian firms in order to lessen
the dominance of BP and Total. But most large mining firms are unable
to take such big risks because some of the oil marketing firms may not
deliver on time. Currently, BP Zambia and Total are in court following
decisions that ZCC made against them in their attempt to “monopolise
and duopolies” the Jet-Fuel market.
Currency Buying Selling
US Dollar 3,550.18 3,570.18
GB Pound 6,585.59 6,624.48
Rand 435.82 438.81
Euro 5,219.84 5,249.96
 Volume 4 - October 2008
Standard Chartered Bank
– Flirting with SMEs
The bank plans to sponsor 50 entrepreneurs to the Hong Kong Expo
SMEs or Small and Medium-scale Enterprises have become the target of al-
most every commercial bank in Zambia. Every bank is developing innovative
products targeted at the SMEs. Standard Chartered Bank appears far ahead
of competitors. The bank has dedicated an entire month - September 15 to
October 15 – during which it will unveil various new products and services
for the customers. “The SME sector is a very important and strategic seg-
ment to Standard Chartered Bank Zambia and is an important contributor to
our growth momentum in 2008,” said Mizinga Shansonga Melu, the bank’s
CEO and Managing Director for Zambia. She said Standard Chartered Bank
under the ‘SME Trade Corridor’ initiative tries to assist the SME customers to
grow their business with Asia or China in particular through their participation
in the annual Hong Kong World Trade Expo. “This year we are planning to
take about 50 SMEs to the Expo,” said Melu. Zambian SMEs should be on
the look out for this trip. Last year, according to Melu, 14 Zambian SMEs were
assisted to attend the Expo where they met and discussed trade networks
with their Asian counterparts.
The other key advantage of taking part in the ‘SME Trade Corridor’ Initiative
is that it provides the entrepreneurs with the opportunities to open accounts in
multiple countries away from their home markets but able to manage all their
accounts through a single-internet banking facility called Straight-to-Bank.
This facility allows customers to access international markets and gives them
control over their finances, Melu said. During the month, the bank plans to
launch dynamic products such as the SME Express Credit and SME Busi-
ness Credit Accounts. “The roll out of these new products will enable us to
significantly enhance our service to our SME customers in Zambia and to
further assist their growing businesses,” said Richard Wright, Head of SME
Africa for the bank.
Standard Chartered Bank believes that SMEs in Africa currently account for
between 30% and 60% of GDP and predicts that the SMEs will be a key driver
of sustainable economic growth on the continent in the next 10 years.
And on a good note, Standard Chartered Bank recorded a 50% profit increase
during the first half of the year. This increment is attributed to the exceptional
performance of consumer and wholesale banking. The bank recorded ZMK
40 billion profit mainly through the various businesses developments in the
mining, agriculture, manufacturing and SMEs sectors. Melu said the bank has
also grown its balance sheet y 30 percent on a year-on-year basis to ZMK
955 billion in 2008, a good record if you ask.
Mizinga – A Rising Gem
Within a short time, she appears to have settled in the big job. Mizinga Shan-
songa Melu is the Chief Executive Officer (CEO) of Standard Chartered Bank
Zambia Limited, who assumed the position in January this year. A Zambian,
Mizinga has over 10 years experience in banking working within the Standard
Chartered Bank Group. She has held various positions in Tanzania, Uganda,
Kenya, South Africa and now Zambia. Before she was promoted to take up the
big job in Zambia, Mizinga served as Global Head of Development for the bank.
She also previously held the positions of Treasurer, Head of Sales and Regional
Head of Financial Institutions within the international bank. Holder of an MBA
from Henley Management College in the United Kingdom, Mizinga is a truly ris-
ing “precious gem” within the banking world. She is the second Zambian woman
to head a big international bank after Margaret Mwanakatwe, who was CEO of
Barclays Bank Zambia.
Executive
Executive IssuesIssues
News
ZANACO Expands Ahead of Listing
The bank injects US$ 25 million in the expansion project while new in-
novative products and services hit the Zambian market
‘The people’s bank”, Zambia National Commercial Bank or ZANACO, has be-
come one of the good examples of a well-thought out privatization. Its sale was
controversial and anti-privatization campaigners opposed the deal for fear
of job losses and the closure of unprofitable rural branches. But within a year
after partial privatization, good news seems to be the only thing coming out of
ZANACO – Thanks to Netherlands Rabo Bank, which has kept its word. “The
new management has not sacked anyone as earlier anticipated. It has been a
good privatization,” admits Cephas Mukuka, President of the Zambia Union
of Financial and Allied Workers (ZUFIAW). The bank intends to issue an Initial
Public Offer (IPO) of 25.8 percent shares on the Lusaka Stock Exchange
while the Zambia National Farmers Union (ZNFU) has been offered a separate
set of shares in the bank. Members of staff in ZANACO will be given an op-
portunity to buy a stake under the Employee Share Ownership Program.
A year after Rabo Bank of Netherlands bought 49 percent stake in the once
state-owned commercial bank, the balance sheet has grown tremendously .
And so have the products! Managing Director Mark Wiessing had reasons
to wear a smile when he delivered a speech at the signing ceremony of a
US$ 25 million senior debt facility, which has been entered into to expand the
books of the bank. “This is the first ever long term financial debt ZANACO has
ever raised in the international markets…,” Wiessing said. It is FMO of Neth-
erlands and Proparco who have decided to provide a debt facility to ZANACO
to strength the bank’s performance. “It will also be used for on lending to our
customers, particularly those in the agriculture sector,” the CEO said. The
Netherlands Embassy in Zambia has also committed Euro 2 million in grants
to facilitate improvement projects within the bank.
New Products for ZANACO Customers
The new team has also managed to transform the bank into a truly commercial
bank with international scope. All the ZANACO Automated Teller Machines
(ATM) cards have been converted to VISA-Election Cards, which will enable
customers access their accounts on all the Visa-enabled ATMs worldwide. The
ATM machines have also been increased from 35 to 58 and the target is to grow
them to about 100 by the end of 2008, said Wiessing. While some branches
have been going through refurbishment, the bank launched the GPRS en-
abled Point of Sale terminals in the branches. Farmers should be trooping to
ZANACO following the launch of an agriculture product called Munda Scheme,
a seasonal finance facility for peasant and small-scale farmers.
In the first half of the year, the bank grew by over 40 percent in revenue
compared to last year, Wiessing said. “This is an encouraging statistic…,” he
boasted.
The most exciting service to which ZANACO has beaten all other competitors
is the Xapit, a kind of cell phone banking that allows customers to buy airtime,
pay bills such as DSTV and make money transfers to third parties using the
ATM. ZANACO is the first bank to implement such a service, which will oper-
ate 24 hours a day. “It will be made available to the existing customers, but
ultimately also to the (two) 2 million people who have a cell phone but not
a bank account,” said Wiessing. This facility, if well implemented, will allow
most Zambians who have no access to banking facilities to access financial
services using their cell phones.
7
Business News Volume 4 - October 2008

MAIZE MARKETING – In a Catch 22

FRA extends marketing season after recording drastic drop in maize pur-
chases ahead of the onset of the rainy season
Good prices come to those who wait – is perhaps the wrong message which
the Food Reserve Agency (FRA) has sent to farmers. FRA Chairman Costain
Chilala announced on September 16 an increment in the floor price of Maize at
the last minute. The 50 kilogramme bag of maize has gone up by ZMK 10,000
from the initial ZMK45, 000 to ZMK 55,000. In future, FRA should not blame
the farmers if they decide to hoard their produce in anticipation of a last minute
increase in price. “The FRA would like to once again appeal to all its esteemed
farmers who may be keeping maize to quickly bring such maize to the buying
depots so that it can be bought, paid for and secured, before the onset of
the rains,” Chilala said. The FRA has also extended the crop marketing sea-
son from September to the end of October following complaints from farmers
who had not offloaded their maize on the market. The 2008 marketing season
started on a very slow note due to the high moisture content of maize in some
areas as a result of the prolonged rainfall. As at September, the Agency had
only procured 45,000 metric tonnes of maize, with Northern Province record-
ing the highest number of purchase at 36, 725 metric tonnes as at September,
FRA Director General Dr. Anthony Mwanawumo said. “The Agency realizes
that there is a drastic drop in purchases in comparison to the last two years, but
that should not cause any alarm…,” Mwanawumo said, adding that the private
sector had been active in buying off some of the maize. However, the FRA
boss said the role of the private sector in agricultural marketing should be regu-
lated to ensure that they serve the interests of farmers. “Specifically, we urge
government to regulate the use of scales so that farmers especially small-scale
farmers get full value for their maize,” he said. The other reason for the drastic
drop in maize purchases is the low crop production in most parts of the country
as a result of the floods that hit Zambia in he 2007/08 farming season.
The decision by FRA to increase the floor price of maize had two major effects.
On the positive side, it allowed farmers who had been hoarding their produce
in anticipation of a higher price to offload the maize ahead of the close of the
marketing season on October 31. This will enable farmers fetch more money on
their maize, which they could not have realized if they had sold it in July when
the marketing season opened. “While the speculation by some farmers is good
for their pockets, we also have an obligation to ensure that maize is purchased
and secured in time before the onset of the rains,” FRA said. Some roads will be
impassable when the rainy season begins this month and therefore the FRA and
the private sector may not be able to purchase the remaining bags in most areas,
Mwanawumo said. The FRA pays farmers within seven days and at the moment,
it claims to have no outstanding debts to farmers unlike in the past.
Secondly, the decision by FRA to increase the maize floor prices has had a chilling
effect on the price of mealie-meal in Zambia. Millers have also increased the price
of mealie-meal, the country’s stable food, in most parts of the country with a 25
kilogram going at over ZMK 55,000. We understand the FRA had held a meeting
with the Millers Association of Zambia (MAZ) over the increments and the mill-
ers had promised that the prices of mealie-meal would remain stagnant despite
the increase in maize floor price by the FRA. “In view of the looming global food
crisis, the FRA would like to highlight the fact that this matter is not for the Agency
alone but for the industry as a whole,” Mwanawumo said. The government had
set up a taskforce under the ministry of agriculture and cooperatives which is
trying to come up with short, medium and long-term measures to mitigate the situ-
ation. FRA has been drafted into the taskforce as member. The country still has
enough stock in the Strategic Food Reserves which is been used for food relief
programmes for vulnerable communities, FRA said.

Data on Maize by province for the 2007/08 Agricultural season

Area Expected Basal Fert Top Fert
Area Harvested production Yield Expected Applied Applied
planted (Ha) (Ha) (MT) (MT/Ha) Sales (MT) (MT) (MT)
Maize
Central 166,513 97,846 313,694 5 176,444 16,068 16,457
Copperbelt 55,728 44,658 104,748 5 56,018 3,693 3,986
Eastern 199,715 156,635 267,596 4 56,686 7,833 8,603
Luapula 20593 19205 40008 4.6 18386 1477 1467
Lusaka 30,568 14,999 40,692 5.04 23,444 3,180 3,011
Northern 80081 70540 171,232 5.19 89,970 6621 6597
Northwestern 41123 34994 60561 4.84 29764 1344 1480
Southern 212,600 58,362 106,891 2.17 18,142 7,899 7258
Western 109815 42632 36,007 2.99 4,310 531 527
Total 916,736 539,873 1,141,429 1.95 473,163 48,646 49,386

Source: Central Statistics Office

New Technology Boost Tobacco Farmers

Data on Sorghum by province for the 2007/08 Agricultural season
Multi-purpose barns to reduce deforestation and gas emissions Area cal officer of ProBEC. In the past, about four people
Expected Basal were needed Top
Fert to loadFert
wood in
Area Harvested production the barn, but with ProBEC
Yield one is enough.
Expected Applied Applied
There is cause for celebration in Southernplanted
Province(Ha)
– at least among This will inevitably allow tobacco farmers to have a competitive edge on the mar-
(Ha) tobacco (MT) (MT/Ha) Sales (MT) (MT) (MT)
farmers. A new technology has entered the Province and it will drastically reduce ket and fetch higher prices at auctions.
the human resourceCentral
Sorghum requirement in the curing of tobacco.
2677 The name is ProBEC
2395 or 972 1.16 70 3 3
Programme for Basic Energy and Conversation, a new678
Copperbelt 582 less So far,
technology that uses 310eleven (11) farmers in Choma have gone through training and construction
1.87 37 2 0
curing the tobacco and produces better quality grades. “Based of the new barns has begun. Already, three small-scale farmers and one com-
wood in Eastern
1,765 1,509 984 0.42 6 0 0
on research and initial tests by university students, the barns use 60% mercial farmer in Zambia are using the rocket barn, with a unique design, which
Luapula
less wood than the traditional model,” said Brighton Mubanga, techni-
1954 1839 burns wood
1885 very efficiently
1.17 and requires less
70 labour. “Ordinary
0 barns require regu-
0
Lusaka 428 139 65 0.33 0 0 To pg09
Northern 519 505 370 1.06 100 0 0
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Northwestern 2,893 2,561 1,669 0.54 184 0 0
 Volume 4 - October 2008
lar maintenance due to their high heat, while these do not,” Mubanga said. The
rocket barn technology, which has multi-purpose applications, is widely used in
neighbouring Malawi because it can also be used to dry maize, vegetables and
timber. “Furthermore, such barns can also help vegetable farmers to plant in two
crop cycles in the wet season without putting vegetables at the risk of rotting”
ProBEC, a project within the Southern Africa Development Community (SADC),
said. GTZ or German Technical Co-operation is the implementing agent in Zambia
of the project that is aimed at preserving the environment. “Such low-wood rocket
barns are given preference on the international market because of the environ-
mental benefits,” the statement said, adding that the new technology will help
minimize deforestation and the emission of greenhouse gases and toxic smoke
that contribute to climate change.
Alliance One, the primary buyer of tobacco in Zambia, has worked a scheme with
the farmers where the company will provide support towards the procurement of
material inputs for the construction of the new barns. This project will, no doubt,
raise the profile of Alliance One among the environmental groups for taking such
an initiative. “These barns are also safer and have less risk of catching fire,” the
ProBEC said.
Intermarket under
new bosses
Regulator allows sale of majority shares in Intermarket Bank
It is a done deal! Intermarket Banking Corporation is now under new own-
ers – Sabre Capital Worldwide Limited of Mauritius. The Zambia Com-
petition Commission (ZCC) has given approval for the 57 percent share
acquisition of the bank, which had suffered balance sheet woes for a while.
ZCC said the deal was approved without any conditions because Sabre
Capital Worldwide had no presence in Zambia and, in any case, the trans-
action will help raise the investment profile of the country. The acquisition,
according to ZCC board, will increase investor and depositor confidence in
the Zambian financial sector. “It is likely that the percentage of unbanked
Zambians may reduce in the long run,” ZCC said in a statement.
Sabre Capital Worldwide had acquired a controlling stake in Intermarket
with a projected capital injection of US$10 million. As at June 2008, Sabre
Capital had pumped in US$3 million to beef up the share capital, which
was said to be dwindling. The balance of US$7 million will be released
within a year.
The owners of Intermarket, ZB Financial Holdings Limited (ZBFH) of Zim-
babwe, have scaled-down their stake in the bank. With Sabre Capital tak-
ing a leading management role in the bank, it is expected that Intermarket
will expand its products and client reach. Sabre Capital was founded in
2002 by Rana Talwar, a former Chief Executive Officer of Standard Char-
tered Bank. Sabre focus is to build consumer and SME financial services
in emerging markets like Zambia through “organic growth and acquisition.”
The firm has investments and management agreements with banks in In-
dia, Bahrain, Nigeria, so they say in their profile. The firm, they disclosed,
is about to invest between US$250 – 300 million in a private equity fund
under the Sabre African Financial Services Fund (SAFF I), which is in for-
mation.
Executive
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Business News
Agriculture – It is Zambeef again!
Zambeef has finally bought majority stake in Nanga Farms Plc
The ever-growing Zambeef Products Plc has added another one to its empire
– Nanga Farms Plc, a cane sugar growing enterprise which was owned by
the Commonwealth Development Corporation (CDC). Zambeef has taken up
85.73 percent in Nanga Farms following a September approval by the Zam-
bia Competition Commission (ZCC). The Farm is expected to produce about
10 percent of the total (raw) cane sugar production. “The board noted that
Zambeef was currently not involved in the growing and/or processing of sugar
cane, which was the main line of business for Nanga Farms Plc,” said Thula
Kaira ZCC Executive Director. He said the acquisition of Nanga Farms by
Zambeef will not remove any competitor from the market and therefore de-
cided to approve the takeover without conditions. Zambeef has indicated that
it will inject capital and investments into the undeveloped areas of the Nanga
Farms, which is likely going to increase sugar production in the country and
generate employment.
Recently, through its bullish expansionist agenda, Zambeef acquired Amanita,
Lendor Agriculture Holdings and Master Pork Limited.
Railway Project – It’s Three in One
Feasibility studies for three railway lines to begin despite court case
The State Proceedings Act prohibits the Courts from issuing injunctions to
refrain government from making decisions. And so, on September 5, the Zam-
bian government went ahead to sign a Memorandum of Understanding (MOU)
for the construction of three key railway systems despite the being before the
courts. The North Western Railway (NWR), owned by former Vice President
Enock Percy Kavindele, is in court seeking judicial review of the manner
that the Minister of Communications and Transport Dora Siliya withdrew their
construction permit.
“I don’t understand why they have gone ahead when the matter is still unre-
solved in court,” said Kavindele.
The MOU has been signed for the development of new railway lines in North-
western and Central Provinces. A consortium lead by China Railway Engi-
neering Group (CREG) and AYR Infrastructure of Australia has been granted
the initial deal to conduct feasibility studies and, if found economically viable,
proceed to construct three railway lines. The MOU was signed by Siliya on
behalf of Zambia and Ron Forless, a representative of the AYR group. “Gov-
ernment may have gone to sleep about this important issue but it is time to
wake up because the railway system is important,” Siliya said. Initially, the
two parties signed a communiqué in June 2008, which facilitated negotiations
culminating in the signing of the MOU. “The consortium undertakes to comply
with the government of Zambia’s legal and regulatory framework, including the
Citizens Economic Empowerment Act, and any other guidelines which may be
promulgated from time to time,” the agreement read in part. The consortium
comprised of CREC/AYR and a Zambian firm called Trans-Zambezi Railway
Limited, co-owned by ex-Football Association of Zambia President Teddy Mu-
longa and Zambia’s former Ambassador to Brussels Kapempe Nsingo.
Three separate but interlinked railway lines have been proposed for develop-
ment, including one that will link Zambia to neighbouring Angola. It will be called
Jimbe-Mwinilunga-Lumwana. The second one will be Chingola-Solwezi-
Lumwana. The third is Lumwana-Kasempa-Mumbwa-Kapiri Mposhi. Huge
sums of money in the form of compensation to person who will be displaced
and in royalties to the chiefdoms through which the railway lines will pass. The
railway lines are expected to help address the transport requirements arising
from key mining developments in both Northwestern and Central Provinces. 9
News
Refugees – Go and See
New initiative launched to entice Congolese to return home.
Go-and-See-Visit - is the latest campaign by the United Nations High Com-
missioner for Refugees (UNHCR) in Zambia to entice about 30,000 Congo-
lese refugees to return home. The campaign, launched in October, will facili-
tate refugees from the Democratic Republic of Congo (DRC) to travel to their
country and see for themselves that fighting is a thing of the past. “We will
assist those that want to go back, through the available assistance package,”
said James Lynch, UNHCR resident representative in Zambia. Other initia-
tives that have been launched include radio programmes, door-to-door infor-
mation dissemination and come-and-tell visits to the DRC, which are aimed at
kindling interest in the repatriation exercise. “This has resulted in an increase
in the number of refugees now expressing interest to go back home,” Lynch
said. The campaign is targeted at moving the returnees ahead of the rainy
season, which usually makes the roads impassable in the rural areas.
Only 5, 961 Congolese returned under the voluntary repatriation exercise
which resumed in May 2008. “You have to go back home to help in the recon-
struction of your home through skills you have acquired while in Zambia,” said
Mumpa Flo, a Congolese embassy official who toured the refugee camps in
northern Zambia. Last year, only 7, 323 refugees went back to DRC, bringing
the total number of returnees to 13, 284 since the exercise kicked off. Most of
the refugees are living at Kala and Mwange camps in northern Zambia near
the border with DRC. The World Food Programme (WFP) is providing food
aid to the refugees while the Organisation for Migration (IOM) has provided
transportation for the group. Some refugees cited insecurity in DRC, lack of
education for the children and agricultural harvests in Zambia as the main
reasons for signing up for repatriation. Under the UNHCR rules, refugees
should only be repatriated to areas which are accessible by road, landmines
must be removed and basic infrastructure such as schools, health centres
and potable water supply in place.
Zambia has 87, 223 refugees scattered around the camps in the country with
Congolese constituting the biggest population at 51, 073 as at August 2008.
Angolans trail with 27,376 after 74, 000 returned home between 2003 and
2007 under the voluntary repatriation. Rwanda, Burundi and Somalia have
few refugees in Zambia.
Chinese Investors – Come In
Please
More Chinese companies express interest in Zambia
IS it another China town? This is the question many Zambians are asking
following the announcement that a Chinese company plans to invest US$ 2
billion in Northwestern Province. The investment, we are told, will involve the
setting up of an ultra modern mining town or city complete with a hydropower
station and water supply system. ZHONGHUI Mining Industry Limited plans
to set up mining ventures in Northwestern and Luapula Provinces of Zambia if
the prospecting licenses are approved by the government on time. Company
President Charles Shi said his company was ready to set up the new city
once the paper work is completed. He made the announcement when Zam-
bia’s Commerce and Industry Minister Felix Mutati visited the headquarters
of the Chinese company in Beijing. Russian Investors have also expressed
similar ideas. They intend to set up mines and new cities within Zambia at an
estimated cost of US$ 2 billion.
10
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Volume 4 - October 2008
Conspiracy to Kill MOSI?
Shortages of MOSI lager hit the market as Zambian Breweries blame lack of
bottles for the scarcity
Something is missing in Zambian bars nowadays and it is none other than that
Zambian mainstay –the precious MOSI Lager! Suddenly – MOSI - Zambia’s most
famous lager is no longer found in most bars, forcing patrons to resort to rival the
CASTLE lager. Conspiracy theories abound with the majority of Zambians believing
that the South African Breweries (SAB) Miller Group, which bought Zambian Brewer-
ies, wants to phase out the brand. But what is the reason for the sudden shortages of
MOSI? “We have been experiencing a shortage of Returnable Glass Bottles (RGB)
due to the inability of our Zimbabwean supplier to meet our orders,” said Pearson
Gowero, Zambian Breweries Plc Managing Director. “We have since ordered bottles
from SA which are now being delivered. The supply position should normalize to-
wards the end of October”. But why is there no shortage of CASTLE?
Many now believe that SAB Miller wants to concentrate on marketing “their best
brand,” CASTLE, at the expense of local lagers. For instance, the once prestigious
MOSI Sevens, an annual Rugby tournament has been renamed CASTLE Sevens.
“As you know Mosi is a local brand and Castle is our Pan African brand which makes
it more appropriate for sponsoring this tournament,” Gowero said rather unconvinc-
ingly. The MOSI Sevens tournament has been relegated to the Copperbelt in the
meantime. Zambian Breweries also parried fears of Mosi disappearing, saying it
will not phase it out but will instead introduce new packaging. “There are no plans
to phase out Mosi. In fact we are in the process of rolling out new packaging for the
brand. This will include a new 375ml RGB, 340ml NRB and a 330ml Can,” Gowero
said.
SAB bought Zambia Breweries in 1994 for US$14 million during the privatization
programme. The company was in 1997 voted, the best privatized company with
a clear social responsibility policy that included the sponsorship of the MOSI Cup
Football tournament. However some local brands like the popular Rhino Lager and
Rhino “Special Dark” have been phased out leading to real fears that the same fate
may befall Mosi.
Welcome back Mr. PEPSI
Coca-Cola faces competition once again
Those who were there in the early 1970’s will remember the competition
which PEPSI gave to Coca-Cola. It was a tight race until PEPSI exited from
the Zambian market. Commerce Minister Felix Mutati recently announced
the re-entry of PEPSI into the Zambian market at full production level. This
will certainly enhance competition in the market of carbonated soft drinks.
Zambia Competition Commission (ZCC) is excited with the announcement
saying the reentry of the PEPSI brand will result in less or no shortages of
carbonated soft drinks as well as “favourable distribution and pricing ar-
rangements in the sector.” ZCC Executive Director Thula Kaira said the
coming in of PEPSI will greatly change the market, which has been domi-
nated by one brand. “The current competition and consumer welfare ben-
efits in the sector leave much to be desired and there is need to support the
PEPSI announcement,” he said.
Volume 4 - October 2008
The Editorial that Disappeared!
In the event that you didn’t notice, The Post Newspaper on September
18 posted an Editorial Comment on its website, which was discreetly with-
drawn – without any explanation - around 09:00 hours the same day, we will
reproduce it below. The Editorial was different from the one which appeared
in the printed version of the newspaper that day. Titled “Rupiah may have to
vacate the Office of Vice President”, it argued wrongly, that acting President
Rupiah Bwezani Banda would cease to be Vice President upon lodging his
nomination papers for the presidential election. The argument advanced in
the editorial was interesting even though frivolous and vexatious. Had the
author(s) read Article 71(2) (d) of the Constitution, they would have known
better. The said Article clearly states that a Member of Parliament can only
vacate his seat if he is elected and assumes the office of President.
The Editorial :
“Rupiah may have to vacate the Office of Vice-President
“Whoever wants to keep the Law must learn what the law means” (Sirach
21:11).
“Every lawless act leaves an incurable wound, like one left by a double-
edged sword” (Sirach 21:3).
“A group of people who have no respect for the Law is like a pile of kindling;
they will meet a fiery end” (Sirach 21:9).
This is what the Bible tells us about the Law.
And according to the Constitution of the Republic of Zambia, the supreme
Law of our country, Vice-President Rupiah Banda may on Tuesday next
week after he files his nomination papers as a presidential candidate in the
October 30 elections will have to vacate the Office of Vice-President.
We say this because Article 45(1) (2) states that the Vice-President shall
be appointed by the President from amongst the members of the National
Assembly. And under Article 65(1) (2), a person shall not be qualified to be
elected as a member of the National Assembly if he holds, or is a validly
nominated candidate in an election for, the Office of the President. Article
71(1) (2) (f) states that a member of the National Assembly shall vacate
his seat in the assembly if any circumstances arise that, if he were not the
member of the assembly, would cause him to be disqualified for election as
such under Article 65.
We have sought legal interpretation of these articles from very senior law-
yers belonging to the opposition, the ruling MMD, the government and some
who have no political affiliation at all. And their interpretation of the Constitu-
tion is that Rupiah will have to vacate the Office of Vice-President if he files
nomination papers to contest the October 30 presidential elections.
This will mean that if he doesn’t do so, legal challenges may be commenced
against him before even the elections are held. If not so, there will be seri-
ous election petitions against his election after October 30.
This will also mean that Rupiah will become an ordinary citizen and will not
be allowed to use government motor vehicles, Zambia Air Force planes and
other state facilities that are not extended to the other candidates. This may
be a big blow to Rupiah’s campaign. But if this is what the law demands,
then let it be so.
This constitutional requirement does not only apply to Rupiah. If Sakwiba
Sikota on Tuesday files nomination papers to contest the presidency, he will
have to vacate his seat in parliament. This is what the Constitution requires.
For Rupiah he will not only vacate his nominated seat in Parliament, he will
also have to vacate the Office of Vice-President which he can’t occupy if he
ceases to be a Member of Parliament.
We know that in trying to justify the adoption of Rupiah as the MMD’s presi-
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Executive Issues Issues
News
dential candidate, Tetamashimba told the nation that in doing so, they
were seeking a constitutional advantage because Vice-President Rupiah
would be able to use state facilities and resources in his campaign. We do
appreciate that the party in power may enjoy advantages of incumbency,
but the rules and conduct of the election contest must be fair and within
the law.
So far, Rupiah has not kept strictly within the law. The distribution of sugar
and mealie-meal in Katete last week cannot be said to have been within
the law. Attempts have been made to justify Rupiah’s distribution of sugar
and mealie-meal in Katete.
It has been argued that Rupiah was not campaigning but merely perform-
ing an official function as Vice-President of the Republic of Zambia. This is
a lie. Today we have produced the verbatim speech of Rupiah as he was
distributing sugar and mealie-meal in Katete. And it shows clearly that he
was campaigning to be elected as president.
We are advised: “Admit when you are wrong, and you avoid embarrass-
ment” (Sirach 20:3).
Anyway, when you have got power and influence, many people will come
to your defence even when you are clearly wrong: “When a rich man
stumbles, his friends will steady him, but if a poor man falls, his friends will
have nothing to do with him. When a rich man makes a mistake, there are
many people to cover up for him and explain away all the things he never
should have said. But let a poor man make a mistake, and he gets nothing
but criticism. Even if what he says makes good sense, nobody will listen”
(Sirach 13:21-22).
There are many people who seem to be very ready to lie for Rupiah so
that he becomes president and they benefit from his appointments and
other favours. Today, all sorts of creatures surround Rupiah simply be-
cause they think he will be able to give them jobs and other favours if he
becomes president. But let him lose the October 30 elections and see how
many of these creatures will surround him! But probably they have gone
to Rupiah because he is their kind. It is said that “every creature prefers
its own kind, and people are no different. Just as animals of the same spe-
cies flock together, so people keep company with people like themselves”
(Sirach 13:15-16).
There is need for Rupiah and his sponsors to pay a lot of attention to
the law of the land and to learn to respect the rights of others. There is
no need for them to be so desperate for power and become blinded by
this desire. They should realise that the exercise of the power they today
have, albeit in a limited and acting way, must be the constant practice of
self limitation and modesty.
We urge the Zambian people to make sure that all those competing for
political office do so within the confines of the law. And no one should
be blinded by the personal benefits they may get if the person they are
supporting wins. Lawlessness, arbitrariness and intolerance should be
opposed at all times. And in saying this, we are reminded of what Martin
Luther King Jr said in a sermon at Ebenezer on November 5, 1967: “I say
to you, this morning, that if you have never found something so dear and
so precious to you that you will die for it, then you aren’t fit to live.
You may be thirty-eight years old, as I happen to be, and one day, some
great opportunity stands before you and calls upon you to stand up for
some great principle, some great issue, some great cause. And you refuse
to do it because you are afraid. You refuse to do it because you want to
live longer. You are afraid that you will lose your job, or you are afraid that
you will be criticised or that you will lose your popularity, or you are afraid
that somebody will stab you or shoot at you or bomb your house. So you
refuse to take the stand.
Well, you may go on and live until ninety, but you are just as dead
To pg 12
Business News Volume 4 - October 2008

at thirty-eight as you would be at ninety. And the cessation of breathing in

your life is but the belated announcement of an earlier death of the spirit. You
died when you refused to stand up for right. You died when you refused to
stand up for truth. You died when you refused to stand up for justice…

“Don’t ever think that you are by yourself. Go on to jail if necessary, but you
never go alone. Take a stand for that which is right, and the world may mis-
understand you, and criticise you. But you never go alone, for somewhere I
read that one with God is a majority. And God has a way of transforming a
minority into a majority.
Walk with Him this morning and believe in Him and do what is right, and He
will be with you even until the consummation of the ages. Yes, I have seen
the lightning flash. I have heard the thunder roll. I have felt sin breakers dash-
ing, trying to conquer my soul, but I heard the voice of Jesus saying, still to
fight on. He promised never to leave me alone, never to leave me alone. No,
never alone. No, never alone.”
We have a choice to make between right and wrong; one can even say be-
tween life and death; and we will get whichever we choose. But let us not
forget that the road that those who choose wrong walk, over right, is smooth
and paved, but it leads to the world of the dead.
Executive Issues, a new intelligence newsletter, was primarily established to
become the ultimate source of reliable information on Zambia. It will provide
timely and up-to-date, informed and in-depth analysis into the country’s po-
litical, economic and financial activities. This unique publication will mainly
provide coverage on hard-to-find confidential news for specialized readership
that will include diplomats, chief executive officers, managers, banks, law-
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links to either government or political movements. With a chain of experienced
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decision making processes which might affect various interests.

It is said that “fools say whatever comes to mind; wise people think before
they speak. When a wicked man curses his enemy, he is cursing himself”
(Sirach 21:26-27).
Rupiah and his sponsors should try to address some of these issues in an
honest manner because whatever they do, these issues will never disappear.
Even if they win the October 30 elections, these issues will still resurface to
hound them. It is better for them to lose an election than to go into office
with such burdens. If they do, they will not enjoy a single day of their victory
because it will be a very meaningless one, a hollow one. There is still time for
them to redeem themselves. Again, the choice is theirs.
Executive Issues is a subscription-based newsletter, which will also provide
tailor-made Special Reports for clients who may need detailed analysis on
any subject matter on and about Zambia.
Founded and registered in Zambia as a newspaper, Executive Issues went
through a thorough process of thinking and planning before finally launch-
ing in 2008. It is published by Brentwood Public Affairs Limited, a premier
media advisory firm, specializing in profiling, media monitoring and tracking,

Our Team
research and business and political risk advisory.
Executive Issues for Executive People
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