ZAMBIA END YEAR INFLATION SLOWS DOWN

The consumer inflation rate in Zambia has slowed down to 7.2 per cent as recorded for the end of this year.

This is in a reduced monthly inflationary rate from 8.1 per cent recorded for November 2011.

The Central Statistical Office has attributed the inflationary rate reduction to decreases in some food prices.

Meanwhile, the CSO has further stated that the targeted 2011 Gross Domestic product GDP growth has eased to 6.5 percent from 7.6 percent set last year.

The national statistical data processing agency has cited slowed growth in the primary sector, coupled with the expected smaller increase in the mines output, as factors surrounding the reduced projected GDP growth.

And on the international trade side, the CSO has recorded 315.9 billion kwacha as the earnings surplus in November 2011, up from 187.5 billion kwacha for October.

78 ZAMBIANS ARRESTED IN ANGOLA

At least 78 Zambians are among foreign nationals arrested by Angolan authorities this year for attempting to violate immigration laws.

Angola shares a 1,100 kilometres border with Zambia.

The National Border Police says it has arrested 7,183 citizens of different nationalities for attempted violation of national border.

Police Chief Commissioner, Jorge Antunes has also stated that others arrested are of Congolese, Namibian and Ivorian nationalities, among several goods seized for tax evasion.

Those arrested by numbers are 5,875 citizens from DRC, 350 Namibians, 78 Zambians, 63 Congolese and 29 Ivorians.

CHIBULUMA MINE SET FOR CHINESE TAKEOVER

Chibuluma mine in Kalulushi on the Copperbelt, might be part of the acquisition of Zambian-based Metorex operations in Zambia by Chinese mining giant, Jinchuan.

Jinchuan, which also has a 51 per cent stake in Munali nickel mine, are in talks for a possible takeover of Metorex, a South African mining company, which owns Chibuluma.

The Mazabuka-based nickel mine has however shutdown due to failed sustained operational costs attributed to the plummeting metal prices on the international market.

According to the South African media, Metorex has since announced the suspension of its listing on the Johannesburg Stock Exchange.

The company, which also operated Sable Zinc in the central town of Kabwe, has confirmed the suspension of its listing on the JSE effective 9^th January 2012.

The decision has been attributed to the finalisation of the announced9.1 billion rands takeover of Metorex by China's Jinchuan Group.

Metorex stocks on the JSE will therefore trade for the last time on 6^th January 2012.

MINES FACE NEW METAL EXPORTS RULES NEXT YEAR

Enhanced and new mineral export guidelines are expected to be enforced next year alongside some fiscal policy measures in Zambia’s 2012 national budget.

Among the new measures is the doubled mineral royalty tax to 6 per cent for base and precious minerals.

However, following a presidential directive, all metals exports will now be administered through the country’s central bank on reasons of enhancing transparency and accountability.

Mines Minister, Wilbur Simuusa has told the REUTERS online that a committee put in place over he matter is soon concluding its work.

Mr Simuusa has stated that himself and his Finance colleague, will have to meet to approve the guidelines being formulated by the respective committee.

The REUTERS has further revealed that data shows much of Zambia's exported copper destined for Switzerland but little of it shows up in Swiss customs figures, raising questions about transparency.

And Mr Simuusa has also revealed of new guidelines for the issuance of mining licences, with his ministry playing a much bigger supervisory role.

CARTELS PROBE UNDERWAY IN THE BANKING SECTOR

An intensive investigation is underway into the Zambian banking sector in alleged cartel practices in service delivery.

Competition and Consumer Protection Commission Director for Consumer and Public Relations, Brian Lingela has confirmed.

The commercial banks are suspected of forming cartels to offer uniform interest rates to the unsuspecting clientele.

Mr Lingela has since disclosed that the investigations are advanced and a comprehensive report is expected in the first quarter of 2012.

The probe was launched before the commercial banks responded Bank of Zambia’s reduction of the statutory reserve ratio for the banks from 8 to 5 per cent.

ZAMBIA ENLISTED AMONG AfDB CLIMATE CHANGE FUNDING BENEFICIARIES

Zambia is among 14 African countries soon to benefit from the African Development Bank –AfDB’s multi-million dollars climate change financing for next year.

The bank is since exploring ways of getting the respective financing, with Norway and South Korea as possible financiers.

According to the AfDB, a delegation from the Nordic Development Fund will be visiting the Bank in mid-January 2012.

The purpose of the visit is to present new strategy and operational guidelines for accessing funding for climate mitigation and adaptation activities.

The NDF can provide grants of up to $4 million for climate change project components covering technical assistance and capacity building activities as well as hard investments where appropriate.

The bank will also host the Korea-based Global Green Growth Institute in the first quarter of 2012 to discuss means of supporting regional member countries develop green growth strategies.

The AfDB has further named the enlisted recipient countries as Ghana, Benin, Burkina Faso, Cape Verde, Ethiopia, Kenya, Malawi, Mozambique, Rwanda, Senegal, Tanzania, Uganda, Zambia and Zimbabwe.

Eligible areas of work, the bank has indicated include infrastructure and energy, natural resource management and climate change-related capacity building.

ZAMBIA’S LOWER MIDDLE INCOME STATUS ANALYSED

Zambia’s lower middle income nation rating risks getting eroded as the copper prices continue to plummet on the international market.

Early in the year, the World Bank bestowed Zambia with the status of being a lower middle-income status, despite entrenched poverty in rural areas.

The bank’s decision was largely due to the high copper prices and without much regard to

population dynamics and other income factors like equality.

During the year, Zambia also got a B-plus Credit Rating, a development which without doubt boosted international investor confidence.

But a recent Ministry of Finance and National Planning policy statement has observed that the recent turbulent trend of copper prices renders this status questionable.

According to the latest Living Conditions Monitoring Surveys conducted from 1991 to 2006, there are still significant levels of poverty.

The results show that the incidence of poverty declined from 70 percent in 1991 to 67 percent in 2006.

The gains of this reduction can be noticed in rural areas, where the incidence of poverty reduced from 88 percent in 1991 to 78 percent in 2006.

In contrast, the incidence of poverty in urban areas increased from 49 percent in 1991 to 53 percent in 2006.

Though indicating reduced poverty levels over the years, official statistics show that an average family still lives on just about a dollar every day.

The modal income group for the country ranges from K 150,000 to K 300,000, representing 26 percent of the estimated 13 million population.
Meanwhile, only about 53 per cent households have mean monthly incomes that exceeded K 300, 000.