(This Document is the Property of the Government of the Republic of Zambia)
PRESS STATEMENT BY THE MINISTER OF INFORMATION AND MEDIA ON THE DECISIONS MADE BY CABINET AT THE 22ND CABINET MEETING HELD ON MONDAY, 11TH NOVEMBER, 2024.
The President of the Republic of Zambia, Mr. Hakainde Hichilema, called for the 22nd Cabinet Meeting on Monday, 11th November, 2024, at State House, to deliberate on policy and legislative matters aimed at enhancing national socioeconomic development for the good of the people of Zambia.
1. Establishment of Diplomatic Relations between the Republic of Zambia and the Principality of Liechtenstein.
During the meeting, Cabinet approved the establishment of formal direct diplomatic relations between the Republic of Zambia and the Principality of Liechtenstein.
The establishment of direct diplomatic relations will enhance bilateral relations and promote political and economic cooperation between the two countries. Currently, the two countries do not have diplomatic representation, though, they enjoy warm and cordial relations. Therefore, to enhance the already existing cooperation, there is need for the Government of the Republic of Zambia to establish formal bilateral diplomatic relations with the Principality of Liechtenstein.
Liechtenstein has a prosperous and highly industrialized economy with financial services sector holding considerable importance within the nation’s framework. Liechtenstein boasts one of the highest per capita income levels. The two countries have valuable economic experiences to share with each other.
2. Legislative Matters:
(a) The Anti-Terrorism and Non-Proliferation (Amendment) Bill, 2024.
Cabinet approved in principle, the introduction of a Bill in Parliament to amend the Anti-Terrorism and Non-Proliferation Act so as to strengthen the law on matters such as definition of terrorism and terrorism financing.
The Anti-Terrorism and Non-Proliferation (Amendment) Act No. 6 of 2023 was enacted to criminalise acts of terrorism and associated crimes. The amendment of the Act will ensure that the country is compliant with international standards and norms in the fight against terrorism, terrorism financing, and proliferation and proliferation financing in a quest to enhance internal security for the safety of all of our citizens.
The proposed amendment of the Act will also enable the country conform to the Terrorism Financing Convention 1999 which will enhance Anti-Terrorism laws in line international and regional standards.
(b) The National Road Fund (Amendment) Bill, 2024.
Cabinet approved in principle, the introduction of a Bill in Parliament to amend the National Road Fund Act No. 13 of 2002 in order to provide for provisions that restrict execution against the National Road Fund Agency.
The current legislation is inadequate in dealing with issues related to execution against the National Road Fund Agency. Therefore, the introduction of the provision against execution will strengthen the legal framework that protects the National Road Fund Agency from adverse legal action while continuing its mandate of financing road projects.
(c) The Higher Education Loans and Scholarships Board (Repeal) Bill, 2024.
Another legislative matter approved by Cabinet in principle, is the introduction of a Bill in Parliament to repeal the Higher Education Loans and Scholarship Act No. 31 of 2016 in order to strengthen the governance and administration of student loans and scholarships.
The Higher Education Loans and Scholarships Act No. 31 of 2016 in its current state presents urgent issues that need to be addressed. In particular, the current Act does not differentiate the functions of the Board of Directors from those of management.
The Act has also limitations in enforcing compliance for defaulting employers and addressing the financial burden of scholarships. Furthermore, the Act lacks provisions for a saving scheme, in-house loan insurance, and a means-testing tool, which are necessary to enhance resource mobilisation and ensure loans benefit deserving students.
it is important to strengthen the law governing the loans and scholarships fund and distinguish its use from the institution’s operational funds.
The proposed law will provide for a fair and equitable distribution of student financing for higher education and deserving students.
(d) Public Private Partnership (General), 2024 and the Public Private Partnership (Administration of Fund) Regulations, 2024.
During the Meeting, Cabinet approved the issuance of Public Private Partnership (General) Regulations. 2024 and the Public Private Partnership (Administration of Fund) Regulations, 2024. The Regulations are key for better administration of the Public Private Partnership projects undertaken in the country.
The Regulations are aimed at providing clarity and consistency on how the Public Private Partnership Act should be implemented to ensure that all relevant users of the Public Private Partnership law understand the requirements and processes. They are also aimed at promoting transparency in the selection process of private parties and reducing the likelihood of corruption by ensuring that clear procedures are set at all stages of the Public Private Partnership life cycle from inception, procurement, bidding, evaluation, negotiation and, ultimately, selection of a preferred bidder.
Furthermore, the Regulations will enhance efficiency by streamlining the processes from inception to agreement making it easier for the parties to collaborate. They will also create parameters for project implementation, monitoring and reporting thus ensuring that all parties meet their obligations and are accountable and all rights are protected under the law. In addition, the Regulations will provide for procedures for procurement of small and medium-scale Public Private Partnerships.
(e) The Water Resources Management (Water Harvesting and Storage) Regulations, 2024.
Another Statutory Instrument approved by Cabinet for issuance is on the Water Resources Management (Water Harvesting and Storage) Regulations, 2024 which will bring into force, provisions of water harvesting in the Water Resources Management Act No. 21 of 2011.
The Regulations are essential as they will provide a framework for water harvesting. which will enhance equitable utilisation, sustainable water harvesting, protection and conservation of water resources for socio-economic development. Water harvesting will enhance ecological integrity, mitigate the effects of drought and reduce the risk of localised flooding.
With the Regulations, the Country will align to its Vision 2030 and Sustainable development Foal No. 6 of ensuring availability and sustainable management of water and sanitation for all, as well as the Eighth National Development Plan which promote management and productive use of water resources
The Regulations once implemented will enhance water harvesting in the country and contribute to national water security.
3. Combined 2nd, 3rd, 4th and 5th State Party Report on the Implementation of the International Covenant on Economic, Social and Cultural Rights.
Cabinet also approved the Combined 2nd, 3rd, 4th and 5th National Report on the implementation of the International Covenant on Economic, Social and Cultural Rights so that it can be submitted to the United Nations Committee on Economic, Social and Cultural Rights in accordance with Article 16 of the International Covenant on Economic, Social and Cultural Rights.
Zambia ratified the International Covenant on Economic, Social and Cultural Rights on 10th April, 1984. Every United Nations Member State that has ratified the International Covenant on Economic, Social and Cultural Rights is required to periodically prepare and submit a National Report to the Committee setting out measures they have adopted which give effect to the rights recognised in the Covenant and on the progress made in the enjoyment of the economic, social and cultural rights.
Zambia is, therefore, obliged under Article 16 of the Covenant to report periodically on the implementation of the provisions of the Covenant and to submit periodic to the Committee which is the treaty body responsible for monitoring the implementation of the Covenant. The International Covenant on Economic, Social and Cultural Rights National Report provides an opportunity for States to share experiences and good practices in the promotion and protection of economic, social and cultural rights, including the role of international cooperation.
Through the Report, Zambia will share her experiences on measures it has put in place to preserve basic human rights, such as the equal rights of men and women that include working and enjoying favourable conditions of work, forming and joining trade unions, social security and insurance, and protection of the family especially the children.
4. Conferences:
(a) Hosting of the 30th Intergovernmental Committee of Senior Officials and Experts (ICSOEs) to be Held in Livingstone, Zambia.
Cabinet approved Zambia’s hosting of the 30th Session of the Intergovernmental Committee of Senior Officials and Experts in November 2024, to be held in Livingstone, Zambia. The 30th Intergovernmental Committee of Senior Officials and Experts under the auspices of the United Nations Economic Commission for Africa will discuss key emerging issues, challenges, and opportunities for fast-tracking socio-economic development in Africa.
The 30th Session will consider the programme of works as endorsed by the Bureau of the Intergovernmental Committee. The theme for the 30th Intergovernmental Committee of Senior Officials and Experts’ Session will focus on: “Addressing the energy deficit in Southern Africa through investments in new and renewable energy technologies (and clean energy sources) to address energy poverty and accelerate sustainable industrialisation and structural transformation.”
The theme on energy is very timely for Zambia and the region as it will provide insights on the importance of energy in the industrialisation process and how clean energy can play a significant role in fueling agriculture production, agro-processing, and value chains development. The deliberations at the Session will provide insights into how the region can address the energy deficit, as well as tap into the immense renewable energy resources, including solar and thermal resources to enhance the energy mix, and how new innovative finance initiatives, including carbon credits, could support growth of the energy sector.
The meeting will, therefore, provide a platform for galvanizing national and regional stakeholders for dialogue on the opportunities for the clean energy sector, and identification of new strategies to enhance renewable energy access for micro, small and medium enterprises development, as well as financing and investments in renewable energy.
(b) Hosting of the Third Least Developed Countries Future Forum 2025 to be Held in Lusaka, Zambia.
During the Meeting, Cabinet also approved for Zambia to host the Third Forum for Least Developed Countries in April, 2025, to be held in Lusaka, Zambia. Hosting the Third Forum for Least Developed Countries is in line with Zambia’s foreign policy, which aims at promoting international trade, investment and cooperation to enhance Zambia’s development and prosperity.
The Forum will be held under the theme: “Addressing Climate Change, Environmental Degradation, recovering from the Pandemic and Building Resilience Against Future Shocks for Risk Informed Sustainable Development.” The Forum will bring together 150 participants from Member States, the private sector, civil society organisations and development partners with the support and organisation of the United Nations Office of the High Representative for the Least Developed Countries, Land Locked Developed Countries and Small Island States.
The Third Forum will, therefore, bring together policy makers, researchers, the private sector, and other stakeholders from Least Developed Countries’ Member States to make collective decisions on how to deal with the multiple crises affecting the Member States’ structural transformation.
Furthermore, Zambia is the first African country and the first country outside Lurope to be accorded the honour to host the Least Developed Countries Forum. The choice of Zambia as host therefore enhances the country’s profile and visibility on the international stage which is necessary for investment and tourism promotion.
At the Forum, Zambia stands to learn best practices in areas of economic transformation and building resilience to climate change, including in the critical areas of energy and agriculture which have been a challenge in 2024.
5. Update on the Possession of Investrust Bank Plc by the Bank of Zambia.
In winding deliberations for the day, Cabinet took note of the status of Investrust Bank Plc (In-liquidation) following the possession by the Bank of Zambia on 2nd April 2024 due to its insolvency. Subsequent to the completion of the Statement of Affairs, the Bank of Zambia Board approved a resolution plan which involved a Purchase and Assumption (P&A) transaction and liquidation of residual assets.
On 15th July 2024, all deposit liabilities with matched assets were transferred to Zambia Industrial Commercial Bank Limited (ZICB) as part the P&A transaction, made possible with the K1.0 billion funding support provided by the Government.
ZICB took up 16 of the 19 former Investrust branches and since entered into new lease agreements with the landlords. In addition, ZICB has so far taken on about sixty former IVB staff and this number is likely to increase. Customers have access to a full suite of banking services under business as usual conditions.
Government wants to assure the general public that the isolated measure taken by the Bank of Zambia on Investrust Bank Pic was aimed at safeguarding the country’s financial system stability and preserve public confidence in the financial system.
Hon. Cornelius Mweetwa, MP
MINISTER OF INFORMATION AND MEDIA AND CHIEF GOVERNMENT SPOKESPERSON
15th November, 2024