The European Union (EU) recently signed a €44 million agreement with the Zambian Government to support mother and child health issues, as part of the Millennium Development Goals (MDGs) push. The project, which would run for four years, would be funded through a contribution fund with UNICEF and would be implemented in 10 districts in Lusaka and Copperbelt provinces.

Copyright © Zambian Economist 2013

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A fascinating piece from Mothusi Turner (Think Africa Press) on how the Chinese (from China's Fujian province) succeeded in Lesotho may hold for our own entrepreneurs:

Rather than being in some way tied to Chinese state assistance to Lesotho then, migrants come to Lesotho under their own steam, lured by rumours of easy profits. But they do not arrive as hostages to fortune, without a plan and alone. Rather, given that kinship networks are the main pull factor behind Fujianese migration to Lesotho, new arrivals usually have links to one of the local Fujianese business associations before they even land.

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Martin Feldstein has some interesting reflections on China's new strategic direction under leadership of President Xi Jinping , Premier Li Keqiang and Finance Minister Liu. He observers that recent appointments signals a shift that may be less favourite to slower growth which in turn would reduce demand for commodities :

Taken together, these appointments demonstrate the new Chinese leadership's emphasis on pro-market reforms and a shift from heavy industry to greater reliance on consumption and services. That shift is likely to mean a slower rate of GDP growth than the annual rate of nearly 10% that China achieved during the last three decades. But a slowdown to 7% annual growth would still double China's GDP over the next decade.

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By Gabriel Pollen

In discussing the question of fuel subsidies, we first need to explicitly define what a subsidy is. A subsidy is an amount paid by government to keep prices below free market. The amount is equal to difference between the consumer pump price of fuel versus the total actual cost of producing or importing.

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Finance Alexander Chikwanda recently announced that the Kingdom of Saudi Arabia has pledged to provide assistance to the Zambian government in the health and agricultural sectors. Around US$15 million will support the rehabilitation of the country's main referral hospital. The two countries are also exploring the cooperation in the area of localized fertilizer production, particularly the possible revitalization of the Nitrogen Chemicals of Zambia (NCZ) plant in Kafue.

Copyright © Zambian Economist 2013

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By Mutota N. Mulumpa

Allow me to quote an excerpt from Amanda Nelson's article on the 'Effects of European Colonialism in Africa' :

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Government has now operationalised the Directorate of Public Prosecutions (DPP) into a National Prosecution Authority (NPA). All criminal prosecution functions would now be vested in the NPA as set out in under the National Prosecution Authority Act, 2010.

Justice Minister Wynter Kabimba recently appointed the the NPA Board with an impossible mandate of achieving "90 per cent court success rate". The Board will be chaired by DPP Muntembo Nchito.

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Government has rejected calls by Toyota Zambia to limit the age of second hand vehicles entering the country because it may "disadvantage the majority of Zambians who cannot afford to buy brand new ones". Toyota wanted Government to limit the age of second hand vehicles entering the country to four (4) years for cars and pick-ups and five (5) years for trucks in order "to improve safety conditions on roads".

Transport Minster Christopher Yaluma says vehicles are unsafe on roads due to lack of maintenance rather than their age. Also most cars entering the country are in good condition. Limiting the age of motor vehicles will only benefit players in the local industry and not necessarily benefiting the ordinary Zambians because vehicles would be beyond the affordability of most citizens.

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Government has created the Minerals Development Commission (MDC) that will independently verify production figures submitted by mining companies (and presumably chase up those who never submit). It will be led by mining expert Pius Maambo.

Mines and Energy Minister Yamfwa Mukanga says the MDC comprises of officials from Bank of Zambia, Ministry of Finance, Ministry of Mines, Chamber of Mines, UNZA and CBU.

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Government has partnered with the United States to set up the first forensic laboratory in Zambia. The overall value of the five-year Public-Private Partnership (PPP) is estimated at US$10m. The lab will be ready for use in August this year.

The PPP includes GRZ, US government, and the private sector partners Georgian Foundation, Sorensen Forensics, and Zambia Society for Child Protection. In the first year, the GRZ government will provide the largest contribution of nearly US$2m.

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