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Govt urged to rebuild domestic resources …after China‘CHANNEL debt relief COVID-19 FUNDS THROUGH DBZ‘
By BUUMBA CHIMBULU
Friday 30, October, 2020
ZAMBIA should ensure that the debt relief from some Chinese creditors is used to rebuild domestic resources. The relief has given space to Government channelled resources towards economic areas which would generate revenue, says Zambia Private Sector Development Association (PSDA) Chairperson, Yusuf Dodia. Mr Dodia in an interview stressed that it was encouraging that some of Zambia’s Chinese creditors had started responding positively to the request forBUUMBA debt relief. CHIMBULU By By BUUMBA CHIMBULU THE China Development Bank (CDB) has deferred He saidZambia’s the central GOVERNMENT should interest bank payment which was due on 25th October AMBIA has continhad approved channel the remaining this year applications to 25th April 2021. ued to record a trade for seven non-bank institumoney from The deferred interest payment would nowraised be payable on the surplus during the tions. K8 billion Covid-19 fund 25th April 2021 and the deferred principal rescheduled over Covid-19 period deDr Chipimo said the canstrictly to the private secthe life of the facility. spite food consumer tral bank was encouraging tor through the Develresponse, Mr Dodia said: “Government needs to look prices increasing to 16 percent the banks toIntake up the facilopment Bank of Zambia this month from 15.7 percent at innovative ways of how they can stimulate the growth of ity and help their clients. (DBZ). recorded in August 2020. the Zambian companies from Small and Medium Enterprises "We made adjustments The Bank of Zambia Total trade in September 2020 into large corporate so that they can take up the space of to conditions where banks has so far raised K6.8 bilincreased by 16.0 percent to paying taxes to Government. showed concerns so that lion, leaving a K1.2 billion over K26.24 billion from K22.61 “This means generally to lower costthe ful they can draw the funding as that we need balance to the raise billion in August 2020, says Muofpossible. doing business in Zambia, we are going through a very quickly as K8 billion stimulus. lenga Musepa, the Interim Stattime as arewill making it to " They difficult key issues wea nation have and these added Thiscosts move help istician General at the Zambia Central Bank. BoZ Deputy Governor for impossible many businesses torevive survive,”the he added. made to FSPs is thatfor Covid-19 private secStatistics Agency (ZAMSTATS). By BUUMBA CHIMBULU Dr Chipimo was speaking Operations, Francis ChipiGovernment external Chinese loans is a significant challenge on debt service toronwhich has also been Mr Musepa said the total trade yesterday during a BoZ radio mo, indicated that K4bn was HE Bank of Zambia amounts approximately US$426.3 in 2020 and says the health of anto economic hitmillion by the Covid-19, for the period from January 2020 show Programme. approved but only K1bn had (BoZ) has so far apfront , if we do not think meUS$428 million in 2021. Zambia Association of to September 2020 increased by "For those we have apbeen drawn. proved K4 billion from dium to longMain term we will not include Manufacturers (ZAM) Chinese Creditors the Export Import Bank of 22.5 percent to K165.87 billion proved K4bn but now about He said applithe stimulus package which come outChina, of it asCDB, strong we and Commercial from K135.35 billion. Chief Executive Officer the as Industrial Bank of China K1bn has been drawn down. cations worth can," he said. He said this yesterday whenhas been put in place to proFlorence and a few other commercial entities including Muleya. the Bank of We are working with FSPs K4.8 billion announcing the monthly bulle-vide liquidity in the financial Dr Chipimo stressed the Ms Muleya regretted China. to make sure a faster draw from both tin for the month of Septembermarkets during the Covid-19 need to support businesses the that Ministry Mr Dodia said Government had that been clear it wouldof Fidown, the remaining K3 bilbanks and period. on the Copperbelt. during Covid-19 period to to theengage increased to 16.0 percent from for this month was attributed Imports, he said, increased by nance had notto set aside as many as Zambia’s creditors as possible of the K4bn approved. non-bank “A Trade Surplus of K7.3 bil- In April this year, the cen15.7 percent recorded in Sep-lionprice 10.8 percent to K9.58 billion in they were ablepayments to increases in food items.ensure that funds under the K8 bilreschedule interest on loans. We want this support to get institulion was recorded in SeptembertralSeptember bank staked a K10 billion tember 2020 2020 from K8.65 bilrecover more strongly going lion specifically for the “The yearto- date inflation He said this was meant to allow the Zambian economy to the clients," he said. tions had 2020 indicating a 32.9 percentstimulus Zambia’s July Inflation re- was recorded at 13.1 percent lion in August 2020. package to assist forward. private sector. in to recover and be able to become stronger and generate Chipimo said 16 comincrease from an August 2020with “Exports beenduced re- to 15.8 percent from 15.9 DrOctober mainly increased liquidity in businesses "So how we manage the The State intends to 2020 had higherapthan that resources to keep the economy on the move. mercial banks surplus of K5.31 billion, drivenduring percent ceived by in June. due the to aCovid-19 21.9 percent rise in Inperiod. crisis will say a dismantle arrears to 1,500 of the plied corresponding period in and support for the “Off course the bilateral development partners such as by an increase in exports,” Mr Out termediate goodsapproved exports earnthe It further reduced to 15.5 2019 of 8.9 percent. of the lot about how strongly the retirees to the tune of package out China have responded to the Ministers request as seen by Musepa said. percent in August before quickings to K14.23 billion in Septemamount, K1bn has been diseconomy will recover afterK500 million, while also “This means that,sevthe average of which Mr Musepa explained that ex-bursed theinpositive response by agreeing to this monetarism. ber 2020 from K11.68 billion in ening for the first time in four to Atlas Mara Zambia, wards and that sense, evreleasing K170 million to prices of goods and services inen had been ports increased by 19.2 percentIndo months in September to 15.7 August 2020,” Mr Musepa “It ais role very clear that with the bilateral debts, wethe maypayment be Zambia Bank and foursaid. erybody has to play," banks for creased at aapproved. higher rate in 2020 to K16.34 billion in September Meanwhile, Mr Musepa an- percent. able to come up with this kind of arrangements. The relief non-bank Institutions. he said. 2020 from K13.96 billion in Au- nounced that the annual inflaMr Musepa said the increase compared to the same period in that we are getting from China ought to be channelled into tion rate as for October 2020 had in the annual rate of inflation 2019,” he said. gust 2020. rebuilding our domestic economy,” he said.
ZAMBIA IN TRADE SURPLUS 6
Z
Friday 24 July, 2020
BOZ APPROVES K4BN PACKAGE
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URRENTLY, across the twenty plus commercial banks in Zambia, all those employed as Chief Risk Officers are men and there’s never been any woman employed in that capacity before since the introduction of that position. The same can be said at Bank of Zambia who happen to be the regulators in the industry. But Zambia is no exception, just over a decade ago, risk management had almost zero women visibility in the developed world. Starting off as a “young” risk professional then at one of the leading global investment banks in London, I found the profession to be daunting and intimidating. Back then, risk management was focused more on tasks such as statistical modelling to calculating market and other financial risks – skills often seen as “male” to the chagrin of many women. However, now there is greater focus on enterprise risk management, which is holistic in nature and ranges from conduct and culture to ensuring that systems are resilient to pandemics, tech outages and cyber terrorism. This development is not the only evolution risk management has seen in the past decade, it is more strategic in nature and risk practioners are now seen as critical and important strategic partners to the business.
By FRANCIS ZIBA
Risk Management has moved to top of T the house – women need to move with It HE Coronavirus pandemic has created unprecedented uncertainty around human health, the availability of resources, the ongoing demand for products therisk liAnd and this services is what and makes quidity of businesses. management, arguably the But what effectfunctions has this had most important for all institutions today. on the broader risk profile, management theRisk financial tolerance profesto risk sionals have an unenviable and the likelihood or impact taskkey of helping their instituof risks materializing. tionsarticle adaptexamines to the complexiThis one key ty and diversity that defines risk which has unquestionbusiness contextas inathe world ably accelerated result of today. Risk managers now Covid-19: Cyber Risk –are remote more identified as having the working, spike in cyber atability to foresee emerging tacks and the greater risks, investigate what depenlies bedency on technology have all hind it, actively listen, have changed the cyber risk a never-ending sense profile of cufor mostand businesses Zamriosity, strive to in separate bia world over. factand from fiction. In sum, govCovid-19and hasbusinesses created new ernments are and complex commercial lolooking for “objective knowlgistical challengeswith of managedge seekers” strong ing cyber risk forto businessese. leadership skills take on key risk roles. Many businesses have failed response toof digthe to In accelerate the pace fast-changing conditions ital transformation across brought their valueabout chainsby andCovid-19 supply management systems and to
celeration the Institute of Risk Management Zambia (IRMZA) has been monitoring several metrics that include companies shifting approximately 40-60 percent of their workforce to remote virand expectations in and today’s tual workplace. While financial markets, risk some leadespecially the proactive financial ers need to in be more than everindustry before. Seeking to services operating ‘know what of we60-80 don’tpercent know’, at high levels and striving to bring insight virtual workforce. and wise counsel to business According to sources at partners well ahead of the curve. In parallel, skillsets are evolving to be more cross disRISKY ciplinary.
A lot ofRisk risky employmanagement ee behaviors such has indeed moved as accessing social to the top of the media house. platforms The practice while using company has evolved to find network computers or a balance between unnecessary issuing effectively managof sensitive personal ing risks while identifying or company data and leveraging the opportend to lead to most tunities arising to maximize of these vulnerabilcompetitive advantage. ities which hackers exploit.
Risk management has in-
ZICTA, internet utilization is
an increase with over 6 billion meeting minutes on WebEx hosting in excess of 4 million meeting a day globally while record numbers of downloads have also been noted for apps deedEnterprise moved tomobile the top of such as Zoom Cloud Meeting the house. The practice has evolved to find a balance beand Google Hangouts which tween effectively managing are up 90 percent from prerisks while identifying Covid-19 levels accordingand to leveraging the opportunities GSMA statistics. arising to maximize competAll these increases in velocitivehave advantage. Leaders are ity led to major increaslooking through the risk es in Cyber security riskslens as and harnessing risk managehackers or criminals have inment thinking in the tensified their level of boardthrash room and on the executive as they try to exploit and team. take advantage of the current The reality though is that Covid-19 With we have asituation. talent gap in most risk. organizations displacing their Despite the evolving nature of workforce from this the discipline andoffices, the rising has led ofto risk an abundance of profile management, more and opportuthere isavenues still increased demand nities hackers and attackfor thefor technical expertise that ers exploit gain access riskto teams areand expected to engagenetworks across a broad range of to and sensitive issues. This makes it difficult information. Hackers have for established industries to become incredibly opportube able tounfortunately, create new career nistic and they paths seized but it would strategic have on thebecoronavirus outbreak to fundamen-
selves scrambling to strengthen their online presence. Unfortunately, the only thing their IT departments needed at the time to enable remote access, was infrastructure. However, in mostrisk cases for womenthis to consider as not choice been comprehensive ahas career in light of these new and to emerging opportunienough accommodate the ties. level of access now needed to There a unique become opportu-a what hasiseffectively nity available to institutions remote workforce. And while today to address the talent in the rush, many overlooked gap risk management, and one invital factor: ramping at same timesecurity. address Not the upthe their cyber gender in and seniorexpertise leaderenoughgap time ship roles. Women are uniquewas given to validate whether ly positioned to add value in the security architecture was risk management and grow sufficiently resilient. Most the pool of talented leaders businesses did what they had who are already prospering in to, to remain connected and risk management. It is encourin doing so, the opened access of to aging to see next cohort unprecedented exposure of women leaders who are comrisks in an unsecure manner. ing through and taking a keen If theinvirtual world was interest risk management. not a scary be the pre These womenplace will to form basis of theitnext generation of Covid-19, certainly is now leaders institutions are would becauseand cyber-attacks on benefit by being more the increase and are strateorigigic about developing nating from anywherewomen and at for in risk manageanyleadership time. Faced with such a daunting situation, what can
ment. One of the barriers to getting women into risk and leadership roles is the demanding nature of these jobs and scarcity of role models but the banking industry is blessed with three top and exemplary executives: Mizinga Melu at Absa, Mukwandi Chibesakunda at Zanaco and Lowani Chibesakunda at Citi Bank. The success of these women and many more in other industries such as Barabina Mporokoso who is leading the implementation of risk management in the public sector, can only inCovid-19 has created new and c spire and motivate more womchallenges of managing en to challenge the status cyber quo. r Many of the exceptionally paigns exist to manage successful women who these have risks? it And is the state made to what the top identify of our control environment their willingness to take on across new technologies and difficult assignments in their vendors? These are somethe of institutions by challenging the questions, businesses will status quo and taking on a role where success is not a given have to address in order to -create often roles theirremote-conmale couna secure terparts don’t need for to take on trol environment its emto “prove themselves”. These ployees. areAthe very traits needed bein lot of risky employee risk management – and haviors such astoday accessing might create that catalyst social just media platforms while we have company been seekingnetwork which using will propel more women into computers or unnecessary isthe CEO seat.
suing of sensitive personal or
The author is a former incompany data tend to lead to vestment banker with Lehman most ofand these Brothers the vulnerabilities current Execuwhich hackers tive Director at theexploit. InstituteBusiof nesses need toZambia. continually Risk Management For monitor and theirqueries, internal netcomments email work security systems and aron: fziba@irmza.org
chitecture, including network
