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H.E. MR. MICHAEL CHILUFYA SATA IS ZAMBIA’S FIFTH REPUBLICAN PRESIDENT

H.E. President Sata

Zambia has just undergone another election season. Mr. Michael Chilufya Sata, who had run for the Presidency four times in the past, was declared new President of the Republic of Zambia following the 20^th September 2011 national elections. His swearing in ceremony was held at the Supreme Court grounds where a mammoth crowd turned up to witness the occasion.

The outgoing Movement for Multiparty Democracy (MMD) Party had ruled Zambia since 1991. In a national broadcast address, its leader and Head of State since 2008, H.E Mr Rupiah Bwezani Banda conceded the election loss and wished his successor every success in the new job. He, together with first President, Dr. Kenneth Kaunda also accompanied the victorious new President for the swearing-in ceremony, held on the afternoon of 23^rd September, 2011. In all, ten (10) persons had contested for the presidency.

In his acceptance speech, President Sata promised to fulfil all of his electoral promises, including forcing foreign companies to improve working conditions. He stated that he would reduce the size of government and tackle corruption. He also promised to re-introduce the windfall mining tax and to promote Policies that will bring greater benefit to poor people.

President Sata formed the Patriotic Front (PF) political party in 2001, before losing an election that year and subsequently in 2006 and 2008. In this year’s election, he polled 1,170,966 votes representing 41.98% of the votes cast while his nearest rival, former President Banda had 987,866 or 35.42% of the vote.

The new national assembly comprises 60 parliamentary seats for the PF, 55 for the MMD, 28 for UPND and 1 seat each for the Alliance for Democracy and Development ( ADD) and the Forum for Democracy and Development (FDD) respectively. Three (3) independent candidates also succeeded in securing parliamentary seats.

VICE PRESIDENT OFFICIATES AT THIRD ANNIVERSARY MEMORIAL PRAYERS FOR LATE PRESIDENT MWANAWASA

On 19th Aug, 2011, Vice President, George Kunda led hundreds of mourners at the Lusaka Cathedral to commemorate the third anniversary of the demise of the third Republican President Dr. Levy Patrick Mwanawasa. The Late President passed way in a Paris hospital on 19^th August 2008 after earlier ill at an African Union summit in Egypt.

During the commemoration service, the Vice President described the late President Levy Mwanawasa as a good Political organiser, mentor and courageous person. He added that every Zambian had enjoyed the results of the late President’s good leadership qualities. He added that it was because of his positive qualities that he appointed the current President as his Vice. This wise decision had since been vindicated by President Banda committed Governance of the country.

And the Evangelical Fellowship of Zambia (EFZ) and Twin Palm Baptist Church highlighted the Late President’s Christian way of life. They further advised all political parties in the country to maintain peace and order during this year's general elections while in their eulogy, Dr Mwanawasa's children Lubona and Chipo recalled their Late Fathers love and commitment to Zambia while Patrick read a verse from the bible.

The memorial service was also attended by leading figures across the political spectrum, Heads of Missions accredited to Zambia and other senior government officials.

FORMER PRESIDENT FREDERICK CHILUBA PUT TO REST

Zambia’s Second President Frederick Chiluba passed away in Lusaka at the age of 68 in the early hours of Saturday18^th June, 2011. President Chiluba led the country to the re-introduction of multi-Party democracy when he led the ruling Movement for Multi Party Democracy (MMD) challenge for the national leadership. He ruled Zambia the 10 years after the historic 1991 elections. His death was officially announced by President Rupiah Banda.

Meanwhile, President Banda observed that during the Late Dr. Chiluba's tenure as President of the Zambia Congress of Trade Unions (ZCTU), he built a solid labour movement which extensively advocated the rights of workers in Zambia and across the world. He added that "President Chiluba will be remembered, among other things, for laying the foundation towards the liberalisation of the economy which has led to the present economic growth Zambia is experiencing.

Following the former President, death, the Government announced a seven days period of national mourning which ended on 27^th June, 2011 the date, Dr. Chiluba was put to rest. His state funeral was attended by a host of international and local dignitaries.

In Stockholm, H.E Ambassador Anne Luzongo Mtamboh, in her message of condolences described the late Dr. Chiluba’s as the architect of Zambia’s economic liberalization programme which had laid the foundation for the economic success currently being enjoyed by the country. During the period of national mourning, the Embassy of Zambia opened a Book of Condolences for the Late Dr. Chiluba.

Business and Economic News

Zambia Holds an International Mining and Energy Conference and Exhibition

Zambia, from 15^th to 17^th June, 2011, held its first International Mining and Energy Conference and Exhibition at the Mulungushi International Conference in Zambia´s capital, Lusaka. The theme for the event was, “Developing a self sustaining Zambian extractive industry driven by Private Sector Partnerships”.

The event attracted 638 participants and 85 exhibitors. The participants comprised international investors, mining experts, directors of financial institutions, Zambian decision makers, development partners and partners in the mining, petroleum and energy industries. A total of 34 countries were represented. The event provided participants with an opportunity to discover the country´s mining, energy and petroleum potential as well as discussing the challenges of developing projects relating to the exploration and extraction of Zambia´s natural resources. Participants from both the public and private sectors were given a platform to exchange views and discuss the major issues of the country´s future development.

In his keynote address, the Minister of Mines and Minerals Development, Hon. Maxwell Mwale, urged mining investors to diversify away from copper. He stressed that Zambia would never return to nationalization policies. The Minister observed that the mining sector was instrumental in Zambia´s economic growth and indicated that it was projected that Zambia´s copper production would increase from the current 800,000 MT to 1.5 million MT by 2015 and 2million in 2020.

The President of BHP Billiton Minerals Exploration, Ian Maxwell, noted that the developing countries and rise of China as the major trading partner consuming huge mineral and energy resources from Africa, had changed the geopolitical and economic power and placed the developing world at the centre of the epic changes taking place in the global economy. The General Manager of Beijing Axis-Africa, Nitesh Dullabh, indicated that China, which was now the second largest economy and set to overtake the USA by 2030, offered tremendous opportunities for commodity-based economies such as Zambia. He also indicated that China had identified Africa as a new frontier for growth. He noted that major investment destinations for China in Africa were Zambia, Angola, DRC South Africa and Sudan.

On energy, Hon. Kenneth Konga, Ministry of Energy and Water Development observed that increased investment in mining had contributed to the energy deficit that the country was facing. He, however, noted that the various projects that both the government and the private were undertaking would assist in addressing this challenge. He identified low energy tariffs, low investment in the sector, lack of diversity and low transmission capacity in some parts of the country as the major challenges facing the sector.

The major recommendation of the conference was the need to increase the value that can be added to Zambia´s natural resources and a better contribution of these sectors to economic development.

In terms of Nordic participation, Atlas Copco (Swedish) was one of the sponsors and exhibitors at the conference. Other Nordic companies that exhibited were: Sandvik Mining and Construction (Swedish) and Cathodex (Finland). ABB (Sweden); Unipower (Sweden); Geological Survey of Sweden; and the Swedish Trade Council also had representation at the conference.

Zambia Re-Classified as a Middle Income Country

During its annual revision of the classification of world economies based on estimates of gross national income (GNI) per capita for the previous year, the World Bank re-classified Zambia as a lower-middle-income country. According to the new classification, lower-middle-income economies had average incomes ranging from $1,006 to $3,975. Dr. Situmbeko Musokotwane, Finance and National Planning Minister, attributed Zambia´s rating as a middle income country to good policies which had facilitated increased economic investments especially in the mining sector. Government is now aiming to reach the higher bracket where per capita income ranges from $3,000 to $12,000.

Bank of Zambia Governor Dr, Caleb Fundanga, also attributed that Zambia´s progress to heavy investment in the mining sector supported by higher copper prices. He added that successive bumper harvests were also a factor.

The Economic Association of Zambia (EAZ) indicated that Zambia´s new economic status will lead to more investments which will stimulate growth in other sectors of the economy. EAZ observed that multilateral institutions (such as aid agencies) would have confidence in Zambia´s economic performance and that would lead to more favourable cooperation which would benefit the country.

The President for the Zambia Chamber of Commerce and Industry (ZACCI), Jeff Sakulanda, urged Zambians to be proud of the lower-middle-income status because it showed government´s prudent economic management. Davison Chilipamushi, former Commerce and Trade Permanent Secretary, noted that Zambia´s per capita income has increased due to the stable macroeconomic policies.

Embassy of the Republic of Zambia

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