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The Zambian Enterprise came out close to near bottom of the Global Competitive Index for the period 2007 – 2008. In this year’s report to be released on October 31, 2007, Zambia is ranked 117 out of the 128 countries evaluated for the period.  

The World Economic Forum, which compiles the report, is an independent international organization committed to improving the state of the world by engaging leaders in partnerships to shape global, regional and industry agendas. 

The Report will include The Global Competitiveness Index featuring the 12 pillars of competitiveness, The Business Competitiveness Index, detailed country profiles and data tables covering more than 100 social and economic indicators.  

The rankings are drawn from a combination of publicly available hard data and the results of the Executive Opinion Survey, a comprehensive annual survey conducted by the World Economic Forum together with its network of Partner Institutes (leading research institutes and business organizations) in the countries covered by the Report. 

This year, over 11,000 business leaders were polled in a record 131 economies worldwide. We wonder whether Zambia sent any of our business and or political leaders to this forum to represent our enterprise and make sure we were adequately represented.

That aside, human inclination tends to dispel such a poor overall performance by stating that Zambia needed to be given a fair stake in the matter considering all the purported strides since made on the economic front. Well, for Africa alone for instance, Zambia does not even appear in the top 10 most competitive countries for crying out aloud.

  Rankings For Africa – 2007

Growth Competitiveness Index

*** Zambia Not Even In Top 10 ***

Rank
1
2
3
4
5
6
7
8
9
10
Country
Tunisia
South Africa
Mauritius
Egypt
Morocco
Libya
Algeria
Botswana
Namibia
Kenya
Score
4.72
4.42
4.22
4.09
4.02
4.00
3.98
3.83
3.76
3.61

It is worth mentioning here that our own analyses at the Zambian Chronicle have always been in line with the World Economic Forum’s assessments. We have been in the forefront on advising our Zambian Franchise that we have a great deal of competition around us. 

In Zambia we tend to over-dramatize issues; beating ourselves on the chest if you like. We beat our own drums without taking into account other externalities that really matter. It is this kind of myopic prescience that usually leaves us hanging when actual results are brought to bear. 

You cannot set your own standards as a country and want the world the judge you by those when the entire globe uses a different set of scenarios, such as ISO 9001.

For instance, around the world, productivity is a real measure of competitiveness and competitiveness leads to prosperity. As Jennifer Blanke, Senior Economist at the World Economic Forum explains in the video below, there are institutions, factors and policies that are required to be in place for a nation to be competitive. For the period under review, twelve pillars were used and only nine could relate to the Zambian Enterprise. To make matters worse, those that could relate painted a very sad picture in terms of scores. 

The first four pillars were classified under basic requirements and they included institutions required for normal business practices and we were ranked 56 out of 128 (perhaps one of our best in overall grading). 

The next pillar was infrastructure and we were ranked 90; third pillar was macroeconomics and we came out 122 (imagine that) while the fourth pillar in this category was health and primary education in which we came out as 118 (remember our article about how spending on education was pathetic?). 

In the efficiency enhancer, category three pillars were under consideration and they included the fifth pillar, which was higher education, and training and we came out 120; the sixth pillar of market efficiency earned us 86 and the seventh pillar of technological readiness we came out at 96. The last category we participated in was innovation enhancers, in which we actually came out to be at the bottom of the barrel. The eighth pillar was business sophistication and we had 128 out of 128 meaning we were the worst in the world. The ninth pillar is actually innovation; we came out 121 out of 128. 

It is no wonder we are always asking others to come and develop Zambia on our behalf.  The fact of the matter is, Zambia shall be developed by the Zambians for the Zambian but our current crop of politicians seems to denigrate Zambian ingenuity always looking outside for others to come and take the lead. 

classy-daddy-3.gifThe thumper mentality needs to end, the business of beating our own drums needs to end, the beating of ourselves on the chest needs to end and our state of mind needs to change if we have to play in the big league.

Let us for a change focus on what our institutions, our factors of production and our policies are before we can look elsewhere. 

Let us for a change use our debt-repayment savings and invest those into our children by providing quality education at all levels, providing exemplary health care for all our citizenry, and investing in our technological areas that encourage local innovation; that’s this week’s memo from us at the Zambian Chronicle … thanks a trillion. 

Brainwave R Mumba, Sr.

CEO & President – Zambian Chronicle

Copyrights © 2007 Zambian Chronicle. All rights reserved. Zambian Chronicle content may not be stored except for personal, non-commercial use. Republication and redissemination of Zambian Chronicle content is expressly prohibited without the prior written consent of Zambian Chronicle. Zambian Chronicle shall not be liable for any errors, omissions, interruptions or delays in connection with the Zambian Chronicle content or from any damages arising therefrom.

Zambian Chronicle is a wholly owned subsidiary of Microplus Holdings International, Inc.

Copyrights © 2007 Microplus Holdings Int., Inc.         

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By NANCY MWAPE

LuSE abandons plans to link itself to JSE

THE Lusaka Stock Exchange has abandoned an ambitious plan to link with Johannesburg Stock Exchange (JSE)- Securities and Exchange due to cost considerations.

 

Johannesburg Stock Exchange – Africa’s Largest

Last year, LuSE indicated that it was scouting for US$1.1 million to link its operations with JSE Securities and Exchange by this year.

LuSE had also said the World Bank’s International Finance Corporation was studying LuSE’s plan and would fund the project.

But responding to a press query, LuSE general manager, Beatrice Nkhanza, said plans to link with JSE had been abandoned for various reasons among them the cost considerations.

“Plans to link LuSE to JSE have been abandoned for various reasons.

LuSE therefore is going it alone…by sourcing and financing of the system, just like Nairobi, Dar-es Salaam and Botswana,” she said.

Mrs Nkhanza however pointed out that LuSE was in the process of sourcing and installing an automated system and was currently consulting.

She stated the automated system would be operational sometime next year.

Mrs Nkhanza said in the region, only Namibia Stock Exchange was linked to the JSE Securities and
Exchange.

The aim of linking with JSE Securities and Exchange was to integrate network of national securities market in the region.

In 1997 at Livingstone’s Sun hotel, a committee of Southern Africa Development Community Stock Exchange was formed to integrate stock exchanges, make markets liquid and improve their operations.

By last year September, member States that included South Africa, Botswana, Namibia, Malawi, Mozambique and Zambia had harmonised listing requirements.

Getting LuSE linked with JSE securities and Exchange was expected to create a central point for inflow of foreign portfolio investment and enhance LuSE’s exposure to investors.

Other expected benefits included improved liquidity across multiple markets and LuSE being able to be seen on the London Stock Exchange via JSE Securities and Exchange.

Zambia Daily Mail

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The factors boosting commodity prices such as copper, uranium, gold, cobalt, sugar, etc. are likely to continue, keeping those prices up …

The good times are here to stay in the short to medium term. Sugar is in high demand in the European Union and Nakambala can reap high returns from this. 

The price of gold, South Africa’s biggest export, has surged 16 percent this year, helping to underpin the currency for instance.  Copper has climbed 25 percent, benefiting Zambia, Africa’s biggest producer of the metal.

Overall, Sub-Saharan Africa is benefiting from rising prices of gold, oil and copper, helping the region’s economy expand an estimated 6.8 percent this year, from 5.5 percent last year. The challenge now is for countries like Zambia that are dependent on commodity exports to properly “manage” the commodity boom.

If we respect the truth, then we need to admit that commodity boom phases have not been managed well in the past, and we are at risk of making the same mistakes again. The main factors underpinning commodity prices were strong demand for platinum in devices that cut pollution in cars and rising demand in China and other emerging markets.

Still, commodity prices might drop, hurting growth in some African countries. To assume that current prices and the current boom phase reflects a permanent shift, rather than a temporary opportunity, would be a naive and risky approach to adopt. 

If our analysis is correct, then the slump will come and it will bring with it a significant decline in commodity prices but prudent asset management now would help governments that are diversified enough to transition into manufacturing, construction and service sectors.

 

 

 

However, with norminal GDP rising from $3.24 billion in 2000 to well over $10.71 billion in 2006; per capita GDP income thriving from $303.00  in 2000 to $902.00 in 2006; inflation falling from 26.1% in 2000 to just 9.2% for fiscal year 2006; tourism at its highest peak and a combination of other factors … the Zambian Enterprise is headed for some good times, that’s the memo this week from us at the Zambian Chronicle … thanks a trillion

 

Brainwave R Mumba, Sr.

CEO & President – Zambian Chronicle  

Copyrights © 2007 Zambian Chronicle. All rights reserved. Zambian Chronicle content may not be stored except for personal, non-commercial use. Republication and redissemination of Zambian Chronicle content is expressly prohibited without the prior written consent of Zambian Chronicle. Zambian Chronicle shall not be liable for any errors, omissions, interruptions or delays in connection with the Zambian Chronicle content or from any damages arising therefrom.

Zambian Chronicle is a wholly owned subsidiary of Microplus Holdings International, Inc.  

Copyrights © 2007 Microplus Holdings Int., Inc.  

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The Zambian Enterprise is not only the largest producer of copper in Africa; it also has a perfect track record to enable it to vie for a “World Class Credit” rating.

Usually referred to as “first credit” in economic terms, the rating would enable Zambia to issue international bonds and enter the elite class with incentives similar to those in developed nations.

Should this take place, Zambia whose economy currently accounts for only 1 percent of Sub-Saharan Africa’s $544 billion economy, would be the third country on the continent to issue such bonds.

“… if we went for a rating, we’d be able to issue a euro-kwacha bond for example … the country will probably seek its debut rating “shortly,” … there has never been a better time than this … with a buoyant economy and a good track record, I think it’s about the right time to subject ourselves to a rating,”… said the Manchester educated and one time professor of economics at the University of Zambia now Bank of Zambia Governor – Dr. Caleb Fundanga without being date specific.

The European Investment Bank, the finance arm of the European Union, in December 2006 sold 500 million pula of senior unsecured bonds, with settlement and payment in euros, the first-ever international issue in Botswana’s currency, according to Standard & Poor’s Ratings Services.

South Africa, the continent’s largest economy and Botswana, the nation with the highest rated debt in the continent, are the only southern African nations with foreign currency denominated bonds.

Zambia has a lot of support and may need to fully capitalize on that support if reality has to come. Out-going World Bank country manager was one of Zambia’s strongest advocates to the same.

“… Zambia is clearly one of the countries where the impact of debt relief has been massive and could be very clear,” Ohene Nyanin, the former World Bank’s country manager based in Lusaka, said in an interview. “It is a very big fiscal space that has been opened up.”’

The country’s inflation rate dropped to single digits for the first time in 30 years in April 2006 as the government moved to control spending. Zambia has also benefited from a fivefold rise in the price of copper, which accounts for 53% of the enterprise’s income.

International bonds are a certificate of debt issued by a government or corporation guaranteeing payment of the original investment plus interest by a specified future date and have the ability to increase cash inflows at an accelerated rate thereby increasing a country’s liquidity.

classy-daddy-3.gifTwo to three years ago, I introduced a bond phenomenon on Zambia Online and even suggested the issuance of bonds as a debt instrument necessary for capitalizing the New Zambia Airways as a private enterprise.

It was to be privately driven and ran; some nay sayers rose up to short the idea down but yet even today more experts are vying for a bond rating that would elevate the country’s standing as well as help grow our economy above 7% come next year.

It is highly feasible that some critics were new to the subject and saw no benefit to the Zambian Franchise at all … thanks a trillion.

Brainwave R Mumba, Sr.

CEO & President – Zambian Chronicle

Copyrights © 2007 Zambian Chronicle. All rights reserved. Zambian Chronicle content may not be stored except for personal, non-commercial use. Republication and redissemination of Zambian Chronicle content is expressly prohibited without the prior written consent of Zambian Chronicle. Zambian Chronicle shall not be liable for any errors, omissions, interruptions or delays in connection with the Zambian Chronicle content or from any damages arising therefrom.

Zambian Chronicle is a wholly owned subsidiary of Microplus Holdings International, Inc.

Copyrights © 2007 Microplus Holdings Int., Inc.

Choose Your Language Of Preference Below 

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Portuguese Version           Chinese Version            Arabic Version    

The Zambian Enterprise is not only the largest producer of copper in Africa; it also has a perfect track record to enable it to vie for a “World Class Credit” rating.  

Usually referred to as “first credit” in economic terms, the rating would enable Zambia to issue international bonds and enter the elite class with incentives similar to those in developed nations. 

Should this take place, Zambia whose economy currently accounts for only 1 percent of Sub-Saharan Africa’s $544 billion economy, would be the third country on the continent to issue such bonds.  

“… if we went for a rating, we’d be able to issue a euro-kwacha bond for example … the country will probably seek its debut rating “shortly,” … there has never been a better time than this … with a buoyant economy and a good track record, I think it’s about the right time to subject ourselves to a rating,”… said the Manchester educated and one time professor of economics at the University of Zambia now Bank of Zambia Governor – Dr. Caleb Fundanga without being date specific.

The European Investment Bank, the finance arm of the European Union, in December 2006 sold 500 million pula of senior unsecured bonds, with settlement and payment in euros, the first-ever international issue in Botswana’s currency, according to Standard & Poor’s Ratings Services.

South Africa, the continent’s largest economy and Botswana, the nation with the highest rated debt in the continent, are the only southern African nations with foreign currency denominated bonds.

Zambia has a lot of support and may need to fully capitalize on that support if reality has to come. Out-going World Bank country manager was one of Zambia’s strongest advocates to the same.

“… Zambia is clearly one of the countries where the impact of debt relief has been massive and could be very clear,” Ohene Nyanin, the former World Bank’s country manager based in Lusaka, said in an interview. “It is a very big fiscal space that has been opened up.”’

The country’s inflation rate dropped to single digits for the first time in 30 years in April 2006 as the government moved to control spending. Zambia has also benefited from a fivefold rise in the price of copper, which accounts for 53% of the enterprise’s income.

International bonds are a certificate of debt issued by a government or corporation guaranteeing payment of the original investment plus interest by a specified future date and have the ability to increase cash inflows at an accelerated rate thereby increasing a country’s liquidity.

classy-daddy-3.gifTwo to three years ago, I introduced a bond phenomenon on Zambia Online and even suggested the issuance of bonds as a debt instrument necessary for capitalizing the New Zambia Airways as a private enterprise.

It was to be privately driven and ran; some nay sayers rose up to short the idea down but yet even today more experts are vying for a bond rating that would elevate the country’s standing as well as help grow our economy above 7% come next year. 

It is highly feasible that some critics were new to the subject and saw no benefit to the Zambian Franchise at all … thanks a trillion.

Brainwave R Mumba, Sr.

CEO & President – Zambian Chronicle

Copyrights © 2007 Zambian Chronicle. All rights reserved. Zambian Chronicle content may not be stored except for personal, non-commercial use. Republication and redissemination of Zambian Chronicle content is expressly prohibited without the prior written consent of Zambian Chronicle. Zambian Chronicle shall not be liable for any errors, omissions, interruptions or delays in connection with the Zambian Chronicle content or from any damages arising therefrom.

Zambian Chronicle is a wholly owned subsidiary of Microplus Holdings International, Inc.

Copyrights © 2007 Microplus Holdings Int., Inc.