Chris Mfula | LUSAKA
A Zambian court will rule next week on whether to throw out a treason case against the leader of the main opposition party whose lawyers say the charges are vague and ambiguous, a magistrate said on Thursday.
United Party for National Development (UPND) leader Hakainde Hichilema was arrested last week in a police raid on his home and charged with trying to overthrow the government.
His lawyers asked the court on Wednesday to dismiss the case, saying the charges were not specific.
Magistrate Greenwell Malumani said he needed time to decide whether to dismiss the treason charge and consider other preliminary issues that had been raised by the defence.
“The issues involved are many and complex and therefore I cannot hurriedly make a ruling. I will adjourn the matter to Wednesday, 26th April for ruling on the preliminary issues raised,” Malumani said.
Hichilema has been charged with plotting with other people between October 10 of last year and April 8 to overthrow the government. The arrest has raised political tension in Zambia, Africa&#8217;s second-biggest copper producer.
The Southern African country has traditionally been relatively stable but relations between the government and opposition have been fraught since last August, when President Edgar Lungu&#8217;s Patriotic Front (PF) party beat the UPND in a presidential election marred by violence.
The opposition says the vote was rigged but Hichilema has so far failed in his legal challenge against the result.
(Reporting by Chris Mfula; Editing by Tom Heneghan)

Zambia court to rule on opposition leader’s treason case next week

Chris Mfula | LUSAKA
Zambia opposition leader Hakainde Hichilema, arrested last week on suspicion of treason, was charged in a magistrate&#8217;s court on Tuesday with trying to overthrow the government.
Relations between the government and opposition have been raw since last August, when President Edgar Lungu&#8217;s Patriotic Front (PF) party beat Hichilema&#8217;s United Party for National Development (UPND) in a vote the opposition says was rigged.
Police in Africa&#8217;s No. 2 copper-producing country raided Hichilema&#8217;s house on April 11 to arrest him and he was initially charged with treason for obstructing Lungu&#8217;s motorcade.
In court on Tuesday, he was charged with treason in that &#8220;(he together with other persons did prepare or endeavoured to overthrow by unlawful means the government&#8221; between Oct. 10 last year and April 8 this year.
The charge in the motorcade incident was changed to disobeying instructions from a police officer by failing to give way to a presidential motorcade and using insulting language.
The court directed that Hichilema should be allowed visits by his children and at least five other family members following an application by his defence lawyers, who said he had so far been allowed to see only his wife.
Dressed in a red coat and khaki shirt, Hichilema waved his party symbol to supporters in court and stood throughout.
The prosecution is expected to respond to the issues raised on Wednesday after which the magistrate will make a ruling. Hichilema and five others facing the same charges, who are all members of his party and include his driver, did not enter pleas as treason can only be tried in the high court.
Lungu has narrowly beaten Hichilema, an economist and wealthy businessman who goes by the nickname &#8220;HH&#8221;, in two presidential elections by a razor-thin margin.
Rising political temperatures in Zambia, a landlocked and impoverished southern African nation, has come against the backdrop of an economy hobbled by low commodity prices, mine closures, rising unemployment, power shortages, a widening budget deficit and diminishing foreign-currency reserves.
The political turbulence, however, does not appear to have closed the taps of international finance or aid. The presidency said on Tuesday Zambia was on the verge of a possible $1.2 billion programme with the International Monetary Fund (IMF), saying it was expected to be sealed by the end of April.
(Reporting by Chris Mfula; Writing by Ed Stoddard; Editing by Alison Williams and Angus MacSwan)

Zambian opposition leader charged with trying to overthrow government

Zambian police detained opposition leader Hakainde Hichilema on Tuesday after raiding his home, his spokesman said, but authorities could not immediately say why he was being questioned.
Hichilema, a wealthy economist known as &#8220;HH&#8221;, was defeated by President Edgar Lungu in an election last August, which he described as fraudulent. His attempts to mount a legal challenge have so far been unsuccessful.
<blockquote>&#8220;HH is now at Woodlands police station awaiting processes there. They are questioning him now,&#8221; Hichilema&#8217;s media aide Clayson Hamasaka said in a statement.</blockquote>
Hichilema&#8217;s lawyer Jack Mwiimbu said the opposition leader had been moved to Lilayi Police Training School in the capital for questioning.
&#8220;We have no idea what they want &#8230; we are on our way to Lilayi. This is something strange. It has never happened before. He is not well because of the tear gas. His wife fainted three times last night because of the tear gas,&#8221; Mwiimbu told Reuters.
A spokesman for Hichilema&#8217;s United Party for National Development (UPND), Charles Kakoma, said police broke doors to the opposition leader&#8217;s house in an exclusive suburb of Lusaka and fired tear gas canisters into the mansion. He said police had blocked the access road to the residence but did not say what they were looking for.
&#8220;They broke the doors and teargassed the house,&#8221; Kakoma said. &#8220;They left the home after picking him.&#8221;
Neither police nor Hichilema were available to comment.
On Sunday, presidential spokesman Amos Chanda said Hichilema had obstructed Lungu&#8217;s motorcade, saying Hichilema&#8217;s motorcade maintained its lane instead of getting off the road.
Hichilema was granted bail in October after being charged with sedition, a move his team said was an attempt by the ruling party to silence dissent.
The opposition leader had been accused of assembly without a permit after he gave an impromptu address in the rural town of Mpongwe, police said.
(Reporting by Chris Mfula; Writing by James Macharia; Editing by Janet Lawrence)

Zambian police raid home, detain opposition leader

Zambia&#8217;s electricity costs will be the &#8220;defining issue&#8221; for the mining sector this year and beyond, Chamber of Mines President Nathan Chishimba said on Thursday.
The southern African country, which is a major copper producer, is struggling to maintain power supplies as a severe drought has caused levels to drop in the Kariba Dam which generates much of the nation&#8217;s electricity.
Zambia&#8217;s Finance minister Felix Mutati said in this year&#8217;s budget speech that the government planned to raise electricity tariffs to reflect production costs by the end of this year.
Chishimba said mining companies were in talks with the government on the higher tariffs but declined to disclose any further details.
&#8220;At present, the cost of producing electricity in Zambia is not known, as the last study was done &#8230; 10 years ago, in 2007. However, a new study, funded by the African Development Bank, is expected to commence in the course of 2017,&#8221; Chishimba told journalists.
Chishimba said proposed electricity tariffs at Zambia&#8217;s newest power projects were more than 20 percent above global benchmarks established by the U.S. Energy Information Administration.
&#8220;What this suggests is that Zambia’s electricity is not being produced efficiently by global standards, or there is a lack of transparency around the way in which tariffs are calculated,&#8221; Chishimba said.
Zambia needed a revitalised, reformed power sector able to deliver cost-efficient, competitively priced electricity to grow the economy, he said.
Zambia&#8217;s copper production rose to 770,000 tonnes last year from 711,000 tonnes in 2015 but below the target of 1 million tonnes largely due to restricted power supply, Chishimba said.
(Reporting by Chris Mfula; Editing by Jane Merriman)

Zambia’s power costs “defining issue” for mining -chamber of mines

The Government of Zambia has signed agreements for a second mandate with Scaling Solar, the World Bank Group program that is helping developing countries procure low cost, privately financed, solar power.
This is Zambia’s second engagement with Scaling Solar and it follows successful auctions held in May 2016 for two solar PV plants of up to 50 MW each that attracted some of the world’s top renewable energy developers.
The winning developers and relevant Zambian government agencies are in the process of concluding their agreements, which are expected to be finalized in May 2017, and the World Bank Group’s Board approved a package of financing and guarantees for one of the two winning bidders and will review the same for the second winner in the coming weeks.
The new Scaling Solar mandate will begin with an initial procurement round of up to 200 megawatts (MW) of utility-scale clean energy, with subsequent rounds to follow with a goal of developing 500 MW of renewable power. The Request for Qualifications for the second round are expected to be released in late March 2017.
Only about a fifth of the population in Zambia has access to electricity and the country often experiences up to 10 hours a day of load shedding or blackouts. The Scaling Solar mandate will be led by the Industrial Development Corporation (IDC), Zambia, in close coordination with the Ministry of Energy, and is expected to comprise the structuring and tendering of up to four solar plant projects of 50 MW to 100 MW each. Each plant will be developed by different private sector sponsors through an open and competitive bidding process.
Mateyo C. Kaluba, Acting Chief Executive Officer of IDC Zambia, said: “Completing a first solar public-private partnership in a country is a massive undertaking. The package of bankable documents, transaction structuring advice, and research that Scaling Solar provided saved us considerable time, attracted more competitors, and ensured a successful process. The biggest benefit has been having the Scaling Solar team every step of the way to keep the process moving forward.”
“The partnership between Scaling Solar and IDC Zambia is successfully delivering the affordable renewable energy needed to ease the country’s ongoing energy crisis,” said Oumar Seydi, IFC Director of Eastern and Southern Africa. “Access to electricity is vital for achieving development goals. In Zambia, Scaling Solar has helped create a market that will make it easier for the public and private sectors to work together to meet the country’s energy needs and expand opportunities for families and businesses.”
The two rounds in Zambia, along with Scaling Solar projects currently in progress in Senegal, Madagascar, and Ethiopia, will combine to develop and tender over 1.2 gigawatts of solar power, bringing much needed generation capacity to countries struggling to meet their power needs. The program is also expanding to other regions, with countries in Asia and the Middle East in discussions to join Scaling Solar.﻿

Zambia signs to develop another 500MW of renewable energy

Zambia&#8217;s economic growth is seen rising to 4 percent in 2017 and 4.2 percent in 2018, the World Bank said on Monday, predicting a jump in copper prices and improved power supply.
&#8220;Zambia is on a slow economic recovery path,&#8221; the World Bank&#8217;s senior financial management specialist Srinivas Gurazada said at a meeting with mining firms.
The government has forecast that the economy would grow 3.4 percent this year from around 3 percent last year due to low copper prices, power shortages, inflation and a government cash crunch that restricted investment into new projects.
 
 
(Reporting by Chris Mfula; Editing by James Macharia)﻿

World Bank sees Zambia economic growth at 4 percent in 2017

Zambian born, London-based, economist Dambisa Moyo painted a gloomy picture for the world economy as she took the stage at the Mining Indaba in Cape Town.
Moyo, the author of several books who studied at Oxford University and Harvard, believes the United States could see three interest rate hikes this year and could be heading to recession by the end of 2018.
A bearish Moyo also believes that a growth in protectionism by the United States could hurt Africa and the rest of the world. The US has recently put up 144 trade protection instruments.
READ: <a href="/news/mining/2017/02/06/chamber-of-mines-complaint/">Chamber of Mines complain about foot dragging by government over mining laws﻿</a>
&#8220;In the 1930s the US put up 3,200 tariffs to block trade and this saw a decline in the economy and unemployment that it took a long time to come out of,&#8221; Moyo told more than 6,000 delegates in Cape Town.
Moyo also dismissed US President Donald Trump&#8217;s fiscal stimulus spending plans on infrastructure of $1 trillion.
&#8220;Japan spent $6.3 trillion on infrastructure but it did nothing for the economy either,&#8221; says Moyo, who believes that African mining is looking at tough times ahead.
&#8220;To quote Mark Twain: I believe when it comes to African mining reports of its demise are grossly exaggerated,&#8221; says Mark Cutifani, CEO of Anglo American. 
&#8221; The last year has brought some reprive.  We have emerged stronger than where we were before. If it&#8217;s not grown it&#8217;s mined. The world needs to be reminded this is an industry that contributes 45% of global economy. This week Cape Town is the centre of the world.&#8221;         ﻿

Economist Dambisa Moyo bearish on world growth, African mining

Zambia&#8217;s President Edgar Lungu ordered the air force on Wednesday to join other government agencies in an emergency operation to contain the spread of pests that have invaded maize fields in many parts of the country.
The armyworms, which feast on young maize plants and are capable of wiping out entire fields, have been spotted in about six of Zambia&#8217;s 10 provinces, Agriculture Permanent Secretary Julius Shawa said.
On Wednesday the Zambia Air Force began airlifting pesticides to the four worst affected provinces and will team up with the Ministry of Agriculture and the Disaster Management and Mitigation Unit (DMMU) in responding to the crisis, presidential spokesman Amos Chanda said in a statement.
<div class="teads-inread">
<div>
<div class="teads-player" id="teads1"></div>
</div>
</div>
<div class="teads-inread">
<div>
<div class="teads-player" id="teads0"></div>
</div>
</div>
The air force will not carry out aerial spraying of the insecticide, however.
Zambia&#8217;s maize production rose to 2.87 million tonnes in the 2015/2016 crop season from 2.60 million tonnes the previous season due to better than anticipated rainfall and early delivery of fertilizer and seed to farmers.
&#8220;The president is concerned that if the outbreak of the worms is not controlled speedily, the crop yield for 2016/2017 may be negatively affected,&#8221; Chanda said.
The DMMU and the Ministry of Agriculture will conduct random checks starting on Thursday to ensure the emergency spraying operation was going well, Chanda said.﻿

Zambia president orders air force to help fight maize pest

Zambia is withholding 2.4 billion kwacha ($243 million) of the 5 billion kwacha owed to mining companies in tax refunds because the correct documentation has not been provided, the tax authority said on Wednesday.
Zambia&#8217;s government began paying up to 800 million kwacha a month in Value Added Tax refunds to mining companies in June, aiming to put an end to a long running dispute in which firms were owed about $700 million.
Some funds are being withheld because companies have not provided documents showing the export destination, Zambia Revenue Authority head Kingsley Chanda told reporters.
<div class="teads-inread">
<div>
<div class="teads-player" id="teads1"></div>
</div>
</div>
<div class="teads-inread">
<div>
<div class="teads-player" id="teads0"></div>
</div>
</div>
Glencore&#8217;s Mopani Copper Mines, First Quantum Minerals, Barrick Gold and Vedanta Resources all have operations in Africa&#8217;s No.2 copper producer.
Chanda said low copper prices and the depreciation of the kwacha this year hit mining companies, leading to a 1 billion kwacha drop in expected tax collection.
Zambia is also withholding 40 million kwacha every month from South African-based exporters of petroleum products as they do not qualify for tax exemption under a regional agreement.
Most of the petroleum products coming from South Africa were initially imported from Saudi Arabia or Kuwait, countries that don&#8217;t have a trade agreement with Zambia, Chanda said.﻿

Zambia withholding $243 mn in tax refunds owed to mining firms

Zambia should delay its planned re-financing of $2.8 billion worth of Eurobonds until financing conditions ease, an International Monetary Fund representative said on Monday.
&#8220;We would caution the government not to tap into the international markets at this time,&#8221; the IMF&#8217;s resident representative, Alfredo Baldini, told reporters during the release of an IMF report on growth in sub-Saharan Africa.
The Eurobonds were issued from 2012 to 2015, and the Zambian government planned to re-finance them with longer-dated bonds at a lower cost, Finance Minister Felix Mutati said on Dec 7.
&#8220;The financing conditions are pretty tight right now, and it will be very expensive,&#8221; Baldini said on Monday.
<div class="teads-inread">
<div>
<div class="teads-player" id="teads1"></div>
</div>
</div>
<div class="teads-inread">
<div>
<div class="teads-player" id="teads0"></div>
</div>
</div>
In fact, the bonds would only fall due in 2022, 2024 and 2025, so the government didn&#8217;t need to rush into re-financing them, Baldini said.
The Zambian government has relied on external financing as its spending rose over the past few years while revenue remained almost the same, which has put pressure on its exchange rate, Baldini said.
Mutati said last week the equivalent of 19 percent of Zambia&#8217;s gross domestic product was being used to service debt and the government wanted to reduce that to about 15 percent.
Zambia issued a $750 million Eurobond in 2012, followed by a $1 billion issue in 2014 and another worth $1.25 billion last year, mainly for infrastructure projects.﻿

IMF advises Zambia to delay re-financing $2.8 billion of Eurobonds

A plan by Zambia to put a duty on copper concentrates imports could put a kink in the global supply chain for the metal, industry sources said, by forcing neighbouring Democratic Republic of Congo (DRC) to send surplus mine output elsewhere.
The 7.5 percent duty announced earlier this month and due to come into force at the start of 2017, is likely to disrupt supply of refined metal in the early part of the year, just as the global market moves away from surplus, helping to support prices.
Zambia, Africa&#8217;s second-largest copper producer, will produce about 425,000 tonnes of copper metal this year, according to consultancy GFMS, accounting for about 2 percent of global output.
<div class="teads-inread">
<div>
<div class="teads-player" id="teads2"></div>
</div>
</div>
<div class="teads-inread">
<div>
<div class="teads-player" id="teads1"></div>
</div>
</div>
<div class="teads-inread">
<div>
<div class="teads-player" id="teads0"></div>
</div>
</div>
The country&#8217;s smelters, including those run by privately held Eurasian Resources Group (ERG) and India&#8217;s Vedanta Resources, currently source some 500,000 tonnes of concentrate from the DRC, according to consultants Wood Mackenzie.
This is made up of 400,000 tonnes from ERG&#8217;s Frontier mine and around 100,000 tonnes from La Sino-Congolaise Des Mines S.A. (Sicomines), a joint venture between DRC&#8217;s Gecamines, China Railway Construction Corp. and Sinohydro Corp.
&#8220;It will not be viable for smelters to buy concentrates from the DRC,&#8221; said an industry source working in Zambia. &#8220;This change will upset the supply chain for the first six months of 2017.&#8221;
Miners in the DRC would be forced to look for other ways to process their concentrate, such as sending it some 3,000 km (1,860 miles) overland to Durban in South Africa for shipping to China, a two-month trip, three industry sources said.
This would take the supplies out of circulation for several months and delay production of up to 150,000 tonnes of copper metal.
 
SMELTERS UNDER STRESS
Smelters in Zambia, where capacity far outstrips current mine supply, are already struggling with low feed stocks after miners including Glencore closed copper shafts as prices fell to six-year lows.
The duty could mean they have even less concentrate to process, at least in the short term, raising costs per unit.
&#8220;People are well aware that Zambian smelters are under considerable stress to which this will add significantly,&#8221; said a source familiar with the matter.
The sources said the most affected smelters would be ERG&#8217;s Chambishi Smelter and Vedanta&#8217;s Konkola Copper Mine which source a significant part of their concentrate needs from DRC.
Officials at ERG did not reply to an emailed request for comment. Konkola declined to comment.
The new duty was likely aimed at boosting Zambian refined metal production from local concentrate supplies, but the move could backfire and instead benefit smelters in other countries such as China and India, Wood Mackenzie said.
Companies with local mines including First Quantum Minerals and Barrick Gold could increase output, traders said. Officials from both companies did not respond to requests for comment.
The Zambian government was also coming under sustained lobbying from smelters to reverse its proposal, industry sources said.
&#8220;Some are already threatening to close down,&#8221; said a Swiss trader active in the region. &#8220;I believe that the duty is not a definitive decision&#8221;.﻿

Zambia copper concentrate duty to disrupt global copper supplies

<div>
LUSAKA, Nov 11 (Reuters) &#8211; Zambia has proposed measures to curb its budget deficit at a time when slumping commodity prices have seen the country face mine closures, rising unemployment, power shortages and soaring food prices.
New Finance Minister Felix Mutati told parliament on Friday that Africa&#8217;s second-largest copper producer would cut its fiscal deficit to 7 percent of Gross Domestic Product (GDP) in 2017 from a projected 10 percent this year.
Presenting a 64.5 billion kwacha ($6.6 billion) budget, Mutati said it sought to limit domestic borrowing to 2 percent of GDP in 2017, slightly higher than 1.2 percent this year.
&#8220;We are all agreed that the task of restoring stability and accelerating growth will not be easy. We have to be bold and decisive,&#8221; Mutati, who was appointed in September, said.
The economy would grow 3.4 percent next year from just over 3 percent this year due to low copper prices, power shortages, inflation and a government cash crunch, he said, adding the government would restrict new capital projects.
Zambia is in talks with the International Monetary Fund about a potential aid package after agreeing its budget deficit was not sustainable and hopes to conclude a programme with the IMF in the first quarter of next year.
The stock of the government&#8217;s external debt as at end-September 2016 was $6.7 billion representing 35 percent of GDP while the domestic debt in form of government securities was 26 billion kwacha &#8211; equal to 12 percent of GDP, he said.
&#8220;Clearly we are walking a tight rope. We must not burden the next generation,&#8221; Mutati said.
Razia Khan, chief economist, Africa at Standard Chartered bank, said the budget contained a mixed bag of measures.
&#8220;The context of this budget was clear &#8211; there was a need for fiscal consolidation and the demonstration of reform in order to ease the way for negotiations with the IMF early next year,&#8221; she said.
The finance minister said Zambia would introduce import duty on copper concentrates at the rate of 7.5 percent starting in January next year, but would not change existing mining taxes.
Copper earnings fell to $3.2 billion in the first nine months of 2016 from $4 billion in 2015, Mutati said.
Mining companies operating in Zambia include Glencore , Canada&#8217;s First Quantum Minerals, Vedanta Resources and Barrick Gold.
Zambia would raise the price of electricity to reflect the cost of production by the end of 2017, and review state-owned firms in a bid to recapitalize those that are making profit and sell off loss-making firms.
($1 = 9.8000 Zambian kwachas) (Writing by James Macharia)
<div class="linebreak"></div>
</div>
© Thomson Reuters 2016 All rights reserved﻿

Zambia's new Finance Minister Felix Mutati reveals budget to grow economy

Africa is lagging behind the rest of the world, but this is paradoxically an advantage for the region: it approaches development differently and has already taken concrete steps to address the backlog,
With the help of 10 myths Euler Hermes decrypts reasons why Africa is a special continent of many resources, which will find its way of growing and becoming a key player in the global economy.﻿
Myth #1: All African countries are the same
Most African countries have a complicated business environment &#8211; even Nigeria. However the continent’s driver is ranked 169th in the World Bank’s Doing Business 2016.
Nonetheless, there are differences among African economies in the pace of growth and level of diversification. There are three groups of countries in Africa. First, the strong links such as South Africa and Morocco with an attractive business environment, but their growth (+0.5% and +2% respectively in 2016) remains moderate, although stable. Then the change champions, including Ivory Coast and Ethiopia. These economies record strong growth rates (7.5% and 7% respectively in 2016), pushed by their will to diversify and improve their business environment. Finally, lagging behind are countries such as Nigeria or Cameroon where change needs to be fostered.
Myth # 2: Africa only relies on raw materials
Africa has tremendous raw-material sources and is often viewed as an indispensable pool of labor for the near future. But the African economy is also a hotbed of innovation. “Compared with Singapore and its 2% of GDP spent on R&amp;D, Africa ranks lower. But this gap is going to narrow very rapidly thanks, for example, to hubs and the will to overcome the infrastructure deficit. Each region has its own champion: Kenya (0.9% of GDP) in the west, South Africa (0.75%) in the south, and Morocco (0.8%) in the north.
This innovation effort is also reflected in the creation of technologic hubs, whose number is steadily increasing in the African continent. At present there are 24 hubs in South Africa, 11 in Kenya and 7 in Uganda. In Kenya, the technologic incubator iHub has contributed to the development of 150 companies since 2008, an evidence of its role in the growth of African economy. 
Myth # 3: African infrastructures are non-existent
The infrastructure gap (water, electricity, internet, transport) in Africa remains important. The example of Nigeria is striking: to fill its infrastructural gap, the country must spend USD 1900bn by 2030, that is nearly USD 130bn a year (25% of current GDP). This gap penalises African economies and costs two percent of growth to the region every year, according to the African Development Bank.
But the development of African infrastructures is also an economic opportunity. “African countries cannot finance these infrastructural investments themselves. In the long term, this should trigger significant investments in the region, that will contribute to finance the regional economy.
Myth # 4: Africa is isolated from the world
African foreign trade continues to growth &#8211; well, almost. In 2016, Africa is expected to lose USD 12bn exports by value (totaling USD 560 billion) because of the commodity shock. In 2017, demand to Africa should increase by USD 30bn. “This is not only in the short term. Actually, by 2025 African countries should continue to open up and the continent’s heavyweights, i.e. Nigeria (+USD 210bn of additional exports in ten years / + USD 150bn of imports), South Africa (+ USD 140/180bn) and Egypt (+ USD 83/79bn), will see their trade with the rest of the world soar.
The favourite destination of African exporters remains China (27% of African exports in 2016). However, the raw material part in African exports to China has decreased from 97% in 2010 to 83% in 2015, in contrast with low-value-added manufactures (3% in 2010 vs. 7% in 2015).
Myth # 5: African institutions are non-existent
Next to countries where institutions do not (or have stopped to) evolve, there are countries launching important reforms. Rwanda for example has strengthened its fight against corruption, by setting up a national anticorruption council and an entity supervising the award of public contracts. The purpose of this is to reduce the differential quality between institutions in Rwanda and those in more developed countries such as Brazil or Italy.
On the other side, the needs of public-service users are changing and the same occurs with demands for social security. Moreover, institutions have to respond differently: The digital revolution can help African institutions to skip several stages of development. South Africa, Rwanda and Ghana have already developed online public services of relatively good quality, and this is how institutions in these countries are catching up with international standards. 
Myth # 6: No-one is going to finance African growth
Once the oil aftershock has worn off, Africa will resume growing at an average +3% a year. Some countries still post record growth rates higher than +5%, despite the hard shock. In addition, the financing and rebalancing of growth, including investments to be made, will be the key to a sustainable takeoff. “The mix of funding will be crucial. In addition to external resources, particularly from foreign direct investment (FDI), some countries are already able to finance at least part of their growth with budgetary resources. This is the case in South Africa, Egypt and Senegal where they account for 25% and 30% of GDP in 2016. Household confidence and investor confidence will be indispensable to collect savings.
Nevertheless, the way ahead will be thorny: (i) budgetary revenues make up only 14.5% on average of the African GDP, compared with 30% in developed countries; (ii) FDI is only 2% of GDP, compared with 2.4% in developed countries.
Myth # 7: African consumers are not bankable
Consumption growth in Africa is well under way. In 2016, Africa reports the highest consumption growth rates, led by Côte d’Ivoire (+6%), Uganda (+7%) and Nigeria (+5%), compared with +1.4% in OECD countries or +2% in Pacific Asia. “Consumption development in Africa is driven by the continent’s exploding urbanization: by 2045, African towns will be flooded with 24 million people, compared with only nine million in China and 11 million in India.
But African consumption development should follow a different path from that of developed countries. “The wealth effect and internet access add to the volume growth of African consumption. Consumers in Africa are going to skip some steps and force business sectors to reconsider their approach. This is especially striking in distribution, financial services or transports: for example, 70% of Moroccans have internet access (55% in China), and 14% of Kenyans use contactless payment cards (60% of French are still and always using bank checks).Euler Hermes has worked out a proprietary consumption potential indicator combining these three determinants. The verdict is final: Nigeria, Kenya, Morocco, Egypt and South Africa are the leading pack, followed by Ghana, Ivory Coast, Tanzania, Sudan and Congo, DR.
Myth # 8: It’s hard to work with African companies
Given the payment terms granted by foreign suppliers to African companies, it is undisputable that stronger confidence would free considerable resources for growth. “Out of EUR 800bn of goods imported every year by Africa, approx. 60% are paid cash. If transactions were settled at 30 days, this would free EUR 40bn of working capital requirements, equal to the GDP of Tanzania, or to 1.6% of the GDP of Africa.
This situation engenders a sort of vicious cycle for African companies. Their cash flow suffers from the multiplication of cash payments, and this makes them more exposed to possible economic risks. As for domestic trade, this calculation in a country like Nigeria generates EUR 10bn of additional cash flows: a foot on the ladder for growth-seeking SMEs.
Myth # 9: Agriculture, something of the past
Agriculture is the driver of economic growth in Africa: it remains the first contributor to employment and lifts millions of people out of poverty every year. Nevertheless, what is needed is a true green revolution to accelerate the catalyst role of the farming sector, by focusing productivity, market access and technologic contents.
In terms of growth by value of agricultural exports from 2005 to 2015, Ethiopia and Ivory Coast (+30%), Kenya and Rwanda (+20%) have specialised in high-value cash crops. Other countries, such as Zambia, Senegal and Morocco, have managed to use mechanisation and technology to increase agricultural productivity.
Myth # 10: It’s hard to find entrepreneurs and talents in Africa
Education levels are increasing in Africa. In particular, access to university education in Cameroon has grown from 4.6% in 2000 to 13% in 2013. However, even in South Africa, the most proficient student, the percentage of youth entering university is only 20% by age group. Furthermore, official statistics on entrepreneurship are disappointing: in South Africa, just to make an example, only two companies are set up every 1 000 inhabitants.
These low figures mask the rampant informal entrepreneurship that is set to remain the basis for human capital development in the short term. Therefore, attention should be focused just on this entrepreneurial environment, apart from access to education. In Nigeria and Uganda for example, the towns of Lagos and Kampala have only recently reformed their registry system, a big problem for all those wishing to start business.

The truth about Africa: 10 myths debunked

Zambia&#8217;s main opposition leader Hakainde Hichilema and his deputy Geoffrey Mwamba are due to be charged with sedition by a court on Thursday, police said, a move his party said was an attempt by the ruling party to silence dissent.
Two months ago, Hichilema&#8217;s United Party for National Development (UPND) denounced President Edgar Lungu&#8217;s re-election as fraudulent but attempts to mount a legal challenge have been unsuccessful.
Hichilema and Mwamba were detained on Wednesday accused of holding an assembly without a permit in connection with an impromptu address he gave on Sept 26 to a group of supporters in the central city of Mpongwe, police said.
Sedition in Zambia is defined by conduct inciting people to rebel against the authority of the state, and carries a maximum penalty of seven years in prison.
&#8220;This is a scheme by the party in power to harass the opposition and instill fear in them,&#8221; UPND spokesman Charles Kakoma said.
&#8220;They know that they did not genuinely win the last elections and want to instill fear in those who want to speak out against what happened that they risk being arrested.&#8221;
Hichilema continues to dispute the August election outcome and in a statement before his arrest compared the government&#8217;s conduct to the limitation of freedoms experienced when Zambia was still a British colony.﻿

Zambian opposition leaders to be charged with sedition

Zambian President Edgar Lungu said on Tuesday after being sworn in for a new five-year term that he would focus on unlocking agricultural potential in his tropical nation to reduce its dependence on copper mining.
Zambia&#8217;s Supreme Court on Monday rejected an application by the main opposition party to stop President Lungu&#8217;s inauguration after last month&#8217;s contested election. 
Lungu said Zambians should put the divisive elections behind them and work as one to develop the country.
&#8220;Elections have the ability to bring out the most selfish aspects of our humanity. On my part I have learnt that there is no time and latitude to settle scores,&#8221; Lungu said in his inaugural speech at the National Heroes Stadium.
&#8220;We must promote agriculture to become one of the main drivers of our diversification programme,&#8221; he said.
Lungu&#8217;s inauguration after the Aug. 11 election was postponed because opposition leader Hakainde Hichilema challenged the result in court, saying the vote was rigged.
A law introduced in January says the winner of a presidential vote cannot be sworn in if their victory is contested in court.
On Friday the Lusaka High Court threw out an attempt by Opposition United Party for National Development (UPND) leader Hichilema to overturn a Constitutional Court decision not to give him more time to legally challenge Lungu&#8217;s re-election.
Prospects for resuming critical budget support talks with the International Monetary Fund have been dimmed by delays in swearing in a new head of state.
Lungu has been the head of the ruling Patriotic Front since its leader, Michael Sata, died in 2014. He won the presidency the following year, defeating Hichilema in their first electoral confrontation.
Zambia&#8217;s economy has been hard hit by depressed copper prices but diversifying into agriculture presents a number of difficulties.
Zambian agriculture is focused on the staple maize and is mostly produced by subsistence farmers who lack the capital and technology to lift yields.
 
(Reporting by Chris Mfula; Editing by Ed Stoddard and Ralph Boulton)﻿

Re-elected Zambia president Edgar Lungu pledges focus on economy

Zambia&#8217;s High Court has rejected an application by the main opposition party to block President Edgar Lungu&#8217;s inauguration set for next week after last month&#8217;s contested election, his lawyers said on Friday.
Opposition United Party for National Development (UPND) leader Hakainde Hichilema had petitioned the court to overturn a Constitutional Court decision not to give him more time to legally challenge Lungu&#8217;s re-election.
He says the Aug. 11 vote was rigged, a charge Lungu denies.
&#8220;The court has refused to block the inauguration. The High Court has no power to block a decision of a higher court,&#8221; Lungu&#8217;s lawyer Tutwa Ngulube told reporters.
Hichilema&#8217;s lawyer Keith Mweemba said the UPND would pursue the case in the Supreme Court.
Lungu has led the ruling Patriotic Front since his predecessor Michael Sata died in 2014. He won the presidency in January 2015, defeating Hichilema in their first election confrontation.
Zambia is Africa&#8217;s second-largest copper producer, but its economy has been hit by a slump in commodity prices, leading to mine closures and exacerbating its already high unemployment.

Zambia's High Court refuses to block Lungu's inauguration

Repeated failed crops caused by worsening drought have forced Christine Mwenda, a small-scale farmer in Zambia&#8217;s central Mumbwa region, to do what was previously unthinkable.
Since 2014, the 37-year-old has been selling sex in Zambia&#8217;s capital Lusaka. The pay is better than growing maize, she said, and gives her a proper chance to feed her four children.
&#8220;On average I make close to 500 kwacha ($0.70) on a good day,&#8221; said Mwenda, who agreed to be interviewed on condition that her real name was not used.
&#8220;This is the kind of money I could only make (once) in a year from farming,&#8221; she said, explaining that once the cost of fertiliser, labour, transport and seeds was deducted, she was left with very little money from her harvest.
Like millions of Zambians, Mwenda has been struggling with soaring food bills and power shortages caused by prolonged drought exacerbated this year by El Nino, a warming of the Pacific Ocean&#8217;s surface leading to hot, dry conditions.
For many small-scale and subsistence farmers in the landlocked southern African country, longer spells of drought and increasingly erratic rains are becoming far more frequent.
The changing climate, combined with costly fertiliser and seeds, means agriculture is becoming less attractive for many.
&#8220;These days when you grow maize you are not sure about the yield. Most of the time you find that the crops end up drying and you only harvest just enough to eat as a family,&#8221; Mwenda told the Thomson Reuters Foundation.
&#8220;Meanwhile we need to send our children to school.&#8221;
 
HIV RISK
About 54 percent of Zambia&#8217;s 16 million people were living in poverty in 2015 &#8211; most of them women, according to Central Statistical Office data released in April.
Much of Zambia&#8217;s extreme poverty is concentrated in rural areas. According to a 2014 United Nations Development Programme (UNDP) report, extreme poverty is estimated to be four times higher in rural areas than urban centres.
The situation in the copper-producing country has not been helped by a drop in the kwacha against the dollar since April, as a result of depressed global commodity prices.
The hardships have caused more and more people to migrate from rural parts to cities such as Lusaka, Kitwe, Livingstone and Chipata. Others have moved to border towns.
Lucy Bwalya, an academic at Cavendish University in Lusaka, said many women turn up in cities hoping to become traders, hawking clothes or groceries.
However, a rising number turn to prostitution instead &#8211; risking arrest, violence and sexually transmitted diseases.
&#8220;Prostitution is the easiest way out and these women end up risking diseases such as HIV and AIDS,&#8221; said Bwalya, a former programmes manager for Tasintha, a charity working with sex workers.
According to the 2013/2014 demographic and health survey, the HIV prevalence rate among Zambians aged between 15 and 49 was 13 percent, compared to 16 percent in 2001/2002.
 
CLIMATE-RESISTANT CROPS
To encourage more women to stay on their farms, Zambian charity Enviro Green has been teaching them to grow climate resistant crops such as sorghum, which require less water than the traditional staple, maize.
&#8220;We are generally concerned with this rural-urban migration of people, especially women who are ending up in sex work,&#8221; said Enviro Green executive director, Martha Simukonde.
The women farmers are also taught farming techniques to conserve soil and water to minimise erosion and water runoff.
&#8220;We always teach them to plant their crops early so that with the early rains they can germinate. Even when the rains go, the crops once planted early have a chance to grow,&#8221; Simukonde said.
For some women, however, these efforts come too late.
Women in Law and Development in Southern Africa (WILDAF), a women&#8217;s rights advocacy group, said the government should do more to address rural-urban migration.
&#8220;There is need for the government to seriously put in place policies that will reverse this trend where women are coming to urban areas to engage in sex work, which is exposing these women to HIV and AIDS,&#8221; said WILDAF programmes officer Charles Sibeene.
 
($1 = 712.0400 kwacha)﻿

Zambia

Zambia court to rule on opposition leader’s treason case next week

Zambian opposition leader charged with trying to overthrow government

Zambian police raid home, detain opposition leader

Zambia’s power costs “defining issue” for mining -chamber of mines

Zambia signs to develop another 500MW of renewable energy

World Bank sees Zambia economic growth at 4 percent in 2017

Economist Dambisa Moyo bearish on world growth, African mining

Zambia president orders air force to help fight maize pest

Zambia withholding $243 mn in tax refunds owed to mining firms

IMF advises Zambia to delay re-financing $2.8 billion of Eurobonds

Zambia copper concentrate duty to disrupt global copper supplies

Zambia's new Finance Minister Felix Mutati reveals budget to grow economy

The truth about Africa: 10 myths debunked

Zambian opposition leaders to be charged with sedition

Re-elected Zambia president Edgar Lungu pledges focus on economy

Zambia's High Court refuses to block Lungu's inauguration

Prostitution 'pay is better than growing maize' says Zambian farmer

News Tips

Advertise With Us

Zambia

Zambia court to rule on opposition leader’s treason case next week

Zambian opposition leader charged with trying to overthrow government

Zambian police raid home, detain opposition leader

Zambia’s power costs “defining issue” for mining -chamber of mines

Zambia signs to develop another 500MW of renewable energy

World Bank sees Zambia economic growth at 4 percent in 2017

Economist Dambisa Moyo bearish on world growth, African mining

Zambia president orders air force to help fight maize pest

Zambia withholding $243 mn in tax refunds owed to mining firms

IMF advises Zambia to delay re-financing $2.8 billion of Eurobonds

Zambia copper concentrate duty to disrupt global copper supplies

Zambia's new Finance Minister Felix Mutati reveals budget to grow economy

The truth about Africa: 10 myths debunked

Zambian opposition leaders to be charged with sedition

Re-elected Zambia president Edgar Lungu pledges focus on economy

Zambia's High Court refuses to block Lungu's inauguration

Prostitution 'pay is better than growing maize' says Zambian farmer

News Tips

Advertise With Us

Newsletters