CHRISTIAN AID: ‘ILLICIT’ CAPITAL FLIGHT IMPOVERISHING AFRICANS

‘..For every dollar coming in as official development aid, ten dollars flow out of Africa in illicit acts...’, Christian Aid Manager for East Africa, Dereje Alemayehu has said.

Dr Alemuyehu said this, at a Thomson Reuters Foundation Finance and Economic reporting course for journalists, in the Ugandan capital.

The illicit financial outflows are through transfer of profits, tax avoidance and evasion, commodity mis-pricing and transfer pricing by multi-national companies.

Dr Alemuyehu explained that from 2000 to 2009, illicit financial outflows from Africa were estimated at 333.8 billion dollars, depriving the continent of significant resources for social-economic development.

He said it is no use asking for increased aid without seeking means of stopping the outflow of huge amounts of financial resources.

‘..Africa takes lead in the ranking of sources of these illicit acts and as Christian Aid, we project future loses to grow by 22.5 per cent..,’ Dr Alemuyehu further explained.

Dr Alemuyehu strongly rebuked African leaders over this illicit act, demanding for their positive responsiveness over this matter.

 ‘...The notion that more resources flow out of Africa is now accepted, it is not disputed...

‘..We ask from African policy makers that they recognise that there are more resources from Africa leaving through illicit acts...

 ‘..Therefore, we ask that these acts be categorised as criminal or corruption offences..,’ Dr Alemuyehu added.

In a report, titled ILLICIT FINANCIAL FLOWS FROM LEAST DEVELOPED COUNTRIES 1990-2008, Global Financial Integrity, a US-based research and advocacy organisation, has also raised concern about this.

The report has also ranked Zambia 10^th, among Africa’s top sources of illicit capital outflows, at 6.8 billion dollars, equivalent to one and half times, the country’s current annual budget.

Zambia has proposed the setup of the Anti-Finance and Economic Crimes Commission, which is expected to stop acts of transfer pricing of copper, the country’s major export.

ZAMBIA'S FOREIGN RESERVES INCREASE AS INFLATION ALSO RISES

Zambia foreign reserves have increased to 2.43 billion dollars, from 2.34 billion dollars, over-shooting the 3-months time frame of import cover.

This is according to the Standard chartered bank’s latest bulletin.

And the international commodity prices log has reportedly quoted copper at 7,419 dollars per tonne, up from 7,374, despite China retreating from physical buying.

According to the latest Standard Chartered bank bulletin, Chinese users are hoping that the copper prices will reduce in the advent of reduced demand.

Meanwhile, rises in food prices have contributed greatly to June’s month-to-month inflation rate of 6.7 per cent in Zambia.

This is in a point one percentage rise from 6.6 recorded in May.

The Central Statistical Office has disclosed this in the capital, Lusaka.

And in international trade, Zambia has recorded a surplus valued at 278.3 billion kwacha for the month of May, compared to 129.6 billion kwacha for April.

ZAMBIA COTTON PRICE STALEMATE CONTINUES

The national farmers group in Zambia has stuck to guns over demands for a favourable selling price of cotton.

This is in backdrop of protracted negotiations over the price of the commodity, with the cotton ginners insisting on the 1,600 kwacha tag per kilogramme.

But the ZNFU has today told its farmers in southern Zambia not to sale the commodity until the price stalemate is resolved.

According to the state news agency, ZANIS, Regional Manager, Mwaka Kayula says farmers must not succumb to pressure from the cotton ginners.

MOPANI TO INJECT US$ 150 MILLION INTO ITS UNDER-GROUND OPERATIONS

Subject to the board’s approval, Zambia’s Mopani Copper mines is set to commission another mining venture.

This is in a 1.5 million dollars deep mining venture, which will be implemented as soon as feasibility studies are finalised.

CEO Danny Callow says if the feasibility proves that the venture is economically viable, the company will go ahead and present a proposal to its board.

Mr Callow says the venture will be in the setting up of two new shafts and modern copper processing plants.

The investment is aimed at producing copper at a lower cost and doubling the current 150,000 metric tonnes production from its under-ground operations.

Mr Callow was speaking on the sidelines of the mining and energy conference.
Mopani has before indicated huge investments in its deep mining and processing operations.

ZIMBABWE AGAIN SETTLES FOR ZAMBIAN MAIZE IMPORTS

Zimbabwe has set plans to import again maize grain from Zambia.

This is after self-confessed problems of food shortages in Zimbabwe by Prime Minister, Morgan Tsvangirai.

Mr Tsvangirai has told the Voice of America that the southern African country is facing serious food shortages in almost all the provinces.

World Food Programme statistics indicate that more than one million Zimbabweans are currently in need of food aid.

This follows the continuous dry spell that has been affecting the national produce.

It will another of Zimbabwe’s perennial maize imports from Zambia.

US $ 180 MILLION MINE LIFE-SPAN EXTENSION PROJECT STARTS AT KCM

Mining giant, Konkola Copper Mines plans to extend the life-span of its Nchanga operation, meaning they will be around in Zambia for at least 25 years to come.

This will be in a project, which the mining company says it has already 70 million dollars of the total 180 million dollars.

Company CEO, Jayekumar Janakaraj says the lifespan of the Chingola open-pit mining operations will be extended by more than 25 years.
The CEO has stated that the Vedanta Resources-owned mine will also invest in latest technology in in the life-span extension programme.

Currently, KCM says it has accessed an upper copper-ore body, where it is trial mining, with production expected to commence by November this year.

The CEO has explained that the total cost of the project is 180 million dollars and it is expected to add 35,000 tonnes of copper per annum to KCM's output.

KCM has previously stated broader plans to increase production from the 200,000 metric tonnes for the 2011-2012 financial year, when it brings on board the deep mining project.

The deep mining project, which will be complete this December will help advance KCM’s production to 400,000 metric tonnes in the next 5 years.

SATA GOVERNMENT PLEDGES HIGHEST LEVELS OF MORALITY IN HIS GOVERNMENT

The Zambian government says highest levels of morality will be the only basis for definition of its governance legitimacy and credibility.

Finance Minister, Alexander Chikwanda has since pledged accountability, transparency and integrity as the foundation by which to define the Michael Sata government.

Meanwhile, Mr Chikwanda has allayed fears that President Sata is trying to usurp powers of the judiciary.

He has argued that despite the executive having no powers to dismiss the judges, however there is every provision in the constitution for the President to seek recourse as regards the operations of the judiciary.

Mr Chikwanda says the judiciary has enviable role of being player and referee over President Sata, constituting of a tribunal to probe professional misconduct among some judges.

This is in a matter, in which some judges’ professional conduct has been questioned as regards a legal case involving a now defunct local airline, Zambian Airways.

In this matter, the airline is alleged to have defaulted on its 14 billion kwacha debt, it owned to a local commercial bank, the Development Bank of Zambia, a financial institution, which is a parastatal.

Government owns an over 50 per cent stake in the respective bank, therefore its vented interest in the institution.