GLOBAL ECONOMY HEADS FOR RECESSION ….
global growth is ex- pected to go into recession this year, an outcome far at a subdued 1.2 percent in 2020.
worse than during the 2009 The IMF however stressed that
global financial crisis, the global growth was expected to re-
International Monetary bound to 5.8 percent in 2021, well
Fund (IMF) has said. above trend, reflecting the normal-
The IMF indicated that isation of economic activity from global growth was projected April stimulus measures. very low levels. It explained that the at –3.0 percent in 2020, but Mr Zulu observed advanced that despite economy having group little was fore- The would cutting rebound of the to interest 5.8 percent rates’ scope for expansionary cast to grow monetary at 4.5 policy, percent, while benchmark in 2021. by Service the Bank Providers Zambia (FSPs) (BoZ) that BoZ exceptionally growth intervened for the in emerging a stimulus market has will According simultaneously borrow funds to the from re-priced World the K10 the billion K10 package priced and at 100 developing basis points economy above group billion Economic stimulus stimulus package Outlook package are expected (WEO) facility to peg 10.25 benchmark interest was forecast rate (12.5 at 6.6 percent percent. then). percent released interest from rates on 12.5 Wednesday on the percent. money this at no more than This, he explained, was done by providing
It said the rebound in 2021 de- The 17.5 BoZ percent, on Wednesday says the Bank cut the of Zambia Monetary (BoZ). a credit life line to commercial banks in a
week, the growth forecast was pended critically on the pandemic
Policy Rate is against by an the aggressive current interest 225 basis rates three to five years K10billion Medium Term marked prevailing down on by market more than fading in the second half of 2020,
points to 9.25 percent the from which the are previous between 11.5 28 Emergency Refinance Facility while relaxing six and percentage 30 percent. points rela- allowing containment efforts to be
percent, levels last seen in 2012. provisioning and capital requirements. tive Zambia If FSPs to the joins borrow other funds central at 12.5 banks percent such from as “Firstly, it is about a dry point of
October 2019 and gradually scaled back and restoring January BoZ and 2020 lend to update. clients at no more than 17.5 consumer and investor confidence.
the Bank of Ghana, Bank of Kenya, Central construction that the stimulus is inflationary
percent, The IMF then said they 2020 have growth access to more funds “Significant economic policy
Bank of Nigeria, Reserve Bank of South and will not support the exchange rate
from for the the facility. group because actions liquidity have the already system been has, taken Africa rate and Central Bank excluding of Mauritius in a rate the Bank the and more this is in addition to the bank’s
This is contained in the BoZ said in its and any FSPs that fail to comply will be subject decision China was through marked the Covid-19 down 5.8 period that the continuous more purchasing surveillance across power the through world, and on-site demand focused and for on ac-
guidelines titled ‘The K10 Billion Stimulus to mandatory repayment. has percentage Package. eroded Frequently growth momentum. Asked Questions.’ “With regard to interest rates, the Bank has off-site inspections. points relative to macroeconomics. dollars for import commodating purposes as public the economy health care
“With rising incentives non-performing for FSPs that loans offer at 10.3 lower kick “Failure starts. to report requirements, appropriately while shall limiting result the the The The January 225 Central basis WEO Bank points projection. last rate month cut introduced eases the a provided repayment percent interest against rates to the their prudential clients,” BoZ limit said. of 10 amplification guided Policy Committee under to section economic is alive 14 and to activity
K10 It billion explained burden refinancing that for loan facility adverse payments to enable for FSPs in “The sanctions Monetary as borrowers percent, It indicated the central that BoZ bank’s had provided priority is additional clearly and of such the currency financial sanctions vulnerability system. is without confidence to support while businesses effects simultaneously were and likely households re-pricing in the inflation the imposition risks central growth incentives in a to suppressed FSPs which environment,” lend to their clients he at to wake further of stimulus the weigh covid-19 package on economic outbreak. to 10.25 percent which prejudice the BoZ to the will “The Bank’s highly projected use likely of its address recovery regulatory assumes
from said no more in an than interview. five percentage points above the prospects. BoZ 12.5 said percent, much as says FSPs Mutisunge would determine Zulu, a the tightening in global fi- IMF said. through powers open as provided money that these for operations,” in policy the Bank actions he of said. Zambia are effec-
Financial Mr Zulu, of funds also from serves the as Central National Bank. Secretary interest “Among rates, Analyst. emerging they were market obliged to nancial pass on conditions, the cost and a plunge in IMF indicated that even Act Monetary and with Banking a and tive the and in Fiscal preventing Financial policy, Services widespread he said, Act,” firm
for The the Economics central bank Association said it would of check Zambia on BoZ said. and Mr benefits Zulu developing who of lower had economies, interest earlier rates, predicted all fixed commodity that interest the prices, which will have sharp rebound in the remainder remained of dislocated bankruptcies, but for once extended the two job losses, BoZ rates would and the cut possibility rates to nine of a percent, payment a said severe holiday impact (EAZ), the benefits indicated being that passed rate cut on signalled prior to the the had FSPs, common said BoZ, ground, were a supposed social cause, to in a countries face a health crisis, Central disbursement on economic Bank’s of commitment funds. ac- the to year spurring and sizable fiscal demonstrate support, how and the system-wide benefits obtained financial on the strains,” this to their reflected clients. the growth prioritisation tivity skew in commodity exporters,” the disease pandemic era, which was to prevent severe external demand shock, “All FSP in economic are subject hardship to regular the economy to reporting reinforce was to the projected Facility to grow are passed the IMF on to said. their clients. of the “The Central bank will Bank regularly at the monitor expense performance of other growth the economy from receding sharply.
THE CHIMBULU
word ‘fridge’ or ‘refrigerator’ is common in our everyday conversations. It may not be far from the truth to state that at least 75 per cent of town homes in
And the opposite is true; the
Zambia own a refrigerator,
degradation of the environment
used for cooling, mainly food
– the air we breathe, food we
items for extended freshness.
eat, the water we drink, and
Most often than not, when
ecosystems which sustain
one takes their faulty
us – is, according to
refrigerator to a repairer, the
United Nations Environment
common detected problem
Programme (UNEP), estimated
is ‘Exhausted Gas’. The
to be responsible for at least
repairer would also talk about
a quarter of the global total
pressurizing the refrigerator
burden of disease.
with more gas.
According to a 2016 report But what is this gas? Where by UNEP entitled Healthy does it come from? Is it natural Environment, Healthy People, or human made? How does it environmental degradation impact us and the environment is estimated to cause 174 to in general? This article answers 234 times as many premature some of these questions. deaths as occur in conflicts
So here is the story. The annually. Disproportionate so-called gases used in impacts of environmental refrigerators, air conditioners, harms are evident on specific foam food packaging, groups—the poor, young, and fire extinguishers, are elderly, women and migrant Chlorofluorocarbons (CFCs) workers, the report noted. and Hydrofluorocarbons
Zika, Ebola, MERS, SARS and (HFCs)—a group of odourless other new zoonotic diseases manufactured chemical (spread from animals to compounds. humans) such as the current
Chlorofluorocarbons (CFCs) COVID-19 pandemic (still being have existed since 1930s, studied but initial analysis used in refrigeration and showing that it also originated air-conditioning. These were from animals), are believed to observed to be depleting the be on the rise mainly attributed Ozone Layer in the 1970s and to exponential population the global community agreed growth, intensive livestock to phase them out. Production breeding, related to disturbed of Hydrochlorofluorocarbons environments and biodiversity (HCFCs), which are now mostly used The in financial modern costs refrigerators of and environmentally aircons commenced related health in the 1980s risks are as generally a transitional in the measure. range of 5 to10 per cent of GDP, with air pollution taking the highest toll. The Air Ozone pollution layer is the is a world’s band of largest naturally single occurring environmental gas in risk the to health stratosphere (some 7 (10-50 million km people altitude). across the If the world total die volume each year were due to compressed daily exposure to sea to poor level air pressure, quality). it constitutes a layer of about Further, 3mm it thick. is estimated that lack Its of presence access to is vital clean for water the survival and sanitation of life on causes earth 58 as it per serves cent of as cases a shield of diarrhoeal against exposure diseases in to low direct and radiation middle- (UB-V). income Thus, countries. depletion Unsafe of water, ozone inadequate layer leads sanitation to dire consequences or insufficient hygiene on human result health in and 3.5 million the environment. deaths worldwide, representing While Small 25 quantities per cent of UV-B the radiation premature are deaths essential of children to human health, younger for than generation 14 years. of Vitamin D, Unfortunately, excess amounts climate produce skin cancer, change cataracts is worsening and the immuno- suppression. scale and intensity It is also of these said to cause environment-related severe photo-allergies health and risks, accelerated and is acknowledged ageing of the as skin. a major In some health cases, risk multiplier, it has also been with existing shown to impacts activate that viruses such are expected as Herpes. to increasingly affect Global human efforts health to deal including with ODS through are negative traced to changes the 1970s to land, oceans, biodiversity and access to freshwater, and the increasing frequency and higher impact of natural disasters.
Evidence exists, however, of the catalytic and multiple benefits of investing in environmental quality in terms of development, poverty reduction, resource security, reduced inequities reduced risks to human health and well-being.
A healthy environment (clean air and water, sanitation and green spaces), among others, is not only associated with a and reduced 1980s disease when the burden Vienna but Convention also lowers on levels the of Protection stress and of the reduced Ozone symptomology Layer was adopted for in 1985. depression This was and quickly anxiety. followed by It the is against adoption this of background the Montreal Protocol that an integrated on Ozone approach Depleting is Substances. promoted for improving human health And and Zambia well-being has been through actively involved increased in engagement the implementation by the of health the Vienna sector Convention in ecosystem on the management Protection and of the decision- Ozone Layer, making. together with the Protocol and Thus, its amendments. it is believed that The recent enhancing amendment ecosystem is the Kigali Amendment resilience and of protection 2016, which of came planet’s into force natural on 1st systems January, 2019. is not negotiable. This
Through this agreement, WRS will allow
Over the years, Zambia’s growth has been smallholder farmers to obtain finance using produce shrinking and is not benefiting from financial
deposited in a certified warehouse as collateral. advantages provided by the IMF because of stiff
WRS is a platform jointly managed by the Zambia conditions. Commodities Exchange (ZAMACE) LuSE.
Bank The partnership of Zambia (BoZ) would Governor, help to strengthen Denney market Kalyalya, access for said the this smallholder at the Monetary farmers in Policy the country, Committee said WFP Country briefing Representative, in Lusaka on Wednesday. Jennifer Bitonde.
Dr “This Kalyalya partnership said all aims IMF to facilities increase provided uptake of support smallholder to a farmers country on which the WRS, had Zambia sustainable which Revenue could debt situation significantly or at improve least must their have livelihoods, a creditable incomes plan and to
Authority (ZRA) has advised
guarantee access to sustainable markets,’’ Ms levels. Bitonde said in a statement in “This Lusaka is what yesterday. the Minister all exporters of Finance has and been handlers saying LuSE that Chief we Executive need to of work Officer, consignments on Pricilla getting Sampa, debt in to transit
sustainable said trust and levels. confidence That is remained a key requirement key under the
report to any nearest customs
for partnership, us to be able stating to work that smallholder and get the farmers balance would of payment now have support,” access to Dr markets Kalyalya offices through said. immediately the WRS. for
He “Having said it WFP was as unfortunate a partner guidance. will that help the with international this, as financial by raising architectures awareness on such the as WRS the and World providing Bank and trainings the African what Development the market This is Bank looking includes (AfDB) for, WFP exporters all looked can contribute up to the to assessment enhancing agents smallholder of the who IMF wish in giving to request
farmer’s confidence in the system. the balance of payment for support. re-entry of their goods
“This was crucial to its development, as they are
For example, Dr Kalyalya said, if the IMF did not the main food producers Zambia in Zambia,” and Ms consignments Sampa endorse the macroeconomic framework, it would said. The warehouse operator issues an electronic
whose customs declarations
not receipt provide for the produce, balance which of payment can be support, used to equally secure AfDB a loan would from a not. financial were institution. fully processed but the
“These This will are help the farmers rules that to goods access we set have the up much-needed which not yet are made
very finance unfair to invest and you in agriculture see one would and ensures have thought that food
exist.
that is stored when properly a country to is reduce in problems losses. that is when you In get addition, assistance. the WRS allows This farmers is in to view sell their of the
goods “Unfortunately, to structured that markets, is not how where international they will earn
developments arising from
financial more than architectures they do through work, informal you are markets. expected
global effects of the Covid-
to be Under strong this enough partnership, so WFP the will support increase you uptake are being in the given WRS by can mobilising be put to smallholder a purpose farmers for which and you raising have awareness got it for,” on Dr the Kalyalya trading said. platform.
warming by up to 0.4°c this
To prevent Covid-19 wash your hands century, regularly hence the with Kigali soap and water or use alcohol-based hand Amendment rub (hand sanitiser to the Montreal As earlier alluded to,
Protocol. Chlorofluorocarbons includes building capacity of logging
“With HFCs pressures use as to an increase (CFCs) the environment, were replaced economies by
alternative resilience to and ODS mitigate in cooling extreme Hydrofluorocarbons and societies to anticipate, (HFCs).
equipment, weather conditions their role of in storms, warming However, respond to the and production recover from
the drought atmosphere and floods. became a and disturbances consumption and of shocks
greater As the concern. global community, In 2016, the and Hydrofluorocarbons through agro-ecosystem (HFCs)
Parties Zambia to in the particular, Montreal battles protocol has restoration been found and sustainable to be a
adopted COVID-19, the agreement we are called on upon HFCs bigger farming concern systems; as strengthening they
at to the support close of the Ministry 28th Meeting of Health are ecosystem potent global restoration, warming in
of and the all Parties health (MOP professionals 28) in Kigali, causing particular Greenhouse wetlands, dryland Gases
Rwanda,” in general says who Irene are on Lungu the (GHGs). vegetation, According coastal zones to the UN
Chipili, frontlines Zambia in the Environmental fight against the Environment, and watersheds, reduction through and
Management pandemic. Agency (ZEMA) ultimate reforestation phase-out and reducing of HFCs
Corporate This message Affairs Manager. was in fact, would help to avoid global
emphasised the on Amendment, World Health all Day countries (7th April, will gradually 2020) during phase which down HFCs the World by more Health than Organization 80 percent over (WHO) the next called 30 for years strengthening and replace of them the global with health more environmentally workforce. friendly alternatives. A new report, The State of the Zambia World’s is Nursing yet to ratify 2020, the identified Kigali Amendment important but gaps the in the nursing process workforce is already and underway. priority areas “In fulfilling for investment the Zambian in nursing education, government jobs, commitment and leadership to strengthen the Montreal nursing Protocol around the world Amendments, and improve government health for all. is And in the in process solidarity of with ratifying health professionals the Kigali Amendment who are doing to the everything Montreal Protocol. humanly Recently, possible to Cabinet save lives, gave the approval Zambia for the Environmental ratification. And Management ZEMA, under Agency the auspices (ZEMA) of the takes Ministry this of opportunity Water Development, to remind Sanitation the public that and we Environmental can make the Protection, burden of is working our health on colleagues the ratification lighter during protocols this for critical submission period to by adhering Parliament,” to the explains preventive Mrs. measures Chipili. that have been prescribed In Zambia, to ODS stop the are spread of COVID-19. regulated by the Environmental Management Just in case (Licensing) you have forgotten; Regulations here Statutory are some Instrument of the measures: No.112 of 2013 covering a variety of matters regarding environmental protection including air quality control, waste management, hazardous waste and other substances harmful to the environment such as pesticides.
ZEMA is working towards fulfilling obligations the Montreal Protocol and is thus collaborating with stakeholders among them; government, industry, civil society and the refrigeration sector.
“The Agency is committed to assist the Zambian community in the phase-out of ozone depleting substances and reducing the impact of the same on global warming,” assures John Msimuko, ZEMA Director General.