Zambia DCR Interim Review
- CREW PAC II MEETING 20th November 2013,
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OUTLINE
1.
Extensive though not exhaustive account of
policy, regulatory and administrative reforms
2.
Identified on the basis of the nuanced belief
about their ramification for consumers and
producers welfare
3.
4.
Prepared under the guidance of CUTS Int’l and
Nathan Associates Inc.
Identifies key stakeholders, consumers,
producers, available data and missing data,
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STAPLE FOOD SUB-SECTOR
Analysis based on major components of the supply
chain.
1.

2.
Production & Input Supply; Procurement; Processing;
Marketing and Distribution
Maize and maize meal Marketing Reforms and
Welfare Concerns

Passing of the FRA Act 1996 and subsequent establishment of
the Food Reserve Agency
Objective: To administer national strategic food reserve
Amended in 2005 to include import, sell or trade in a designated
commodity.
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STAPLE FOOD SUB- SECTOR

a.
Issues for competition
FRA is huge, it is likely to distort the size
distribution in the market.
Size distribution of
players
b.
Market structure and
Behavior
Price Setting, Availability
and Consumer/producer
welfare
It’s public nature has consequences on the
regulatory enforcement
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STAPLE FOOD SUB-SECTOR
Farmer Input Supply Program (2009 to date) pure case of policy and administrative reforms
(mainly dismal)
3.

Heavy state intervention……state might be driving the
private sector out of the market.
Seed and fertiliser distribution channels:



Number of players, vested interest groups, regulatory
capture or leverage

Uncover the “political economy” of rent seeking and its
effects on policy commitment in the long run.
National Cooperative Development Policy as a critical
strategy to empower small scale
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STAPLE FOOD SUB-SECTOR
3.
Export and Import Restrictions
4.
Exporting and importing of maize in Zambia requires a licence
that is issued by MoA
5.
Due to global grain deficits, export bans have been common e.g
in 2007/2008 marketing season FRA was issued with export
permit for 226,000, MAZ issued with 50,000, GTAZ got permit
for 50,000 and ZNFU had a permit for 50,000 tons and there is
a balance of 50,000.
6.
In some years, there have been more free trade involving
private traders both exporting and importing,
7.
Mainly Zambia is used to export maize to DRC Congo.
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STAPLE FOOD SUB-SECTOR

In case of import ban, the domestic volume
will be lower and can lead to higher prices for
consumers- consumers lose out on welfare

Export ban on the other hand dampens
domestic producer prices- producers lose out

The Competition and Consumer Protection
Act No. 24 of 2010 and WTO rules
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STAPLE FOOD SUB-SECTOR
Subsidy System
(Reduction and/or
removal of
fertilizer)
Various
Years
Reform has no
impact on
number of
players
Reform has no
impact on
household
income
Reform has no
impact on
productivity of
maize
Market Structure
Producers
Producers
Desk
research/analysis
Desk
research/analysis
/ Primary
interview
Yield levels from
crop forecasting
survey(CFS), Post
harvest survey
(PHS) and
supplemental
surveys (SS)
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STAPLE FOOD SUB-SECTOR
Export
bans/licenses/quot
as and import
bans/licenses
Reform has no
impact on maize
meal prices
Various
Desktop review
Consumers
Reform has no
effect on
substitute goods
Market,
Consumers
Ask consumers
(Pr) about
quantities
consumed when
maize was in
shortage
Collect data on
prices from CSO
and Jesuit centre
for theological
reflection (JCTR)
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STAPLE FOOD SUB-SECTOR

Data collection will involve
a.
b.
c.
d.
both primary and secondary data.
questionnaires for producers, consumers and other players in
the market
focus group discussions
desk review of literature in government departments and
ministries.

Perception surveys for consumers, farmers and other
producers

In-depth interviews for cooperatives and other interest
groups
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PASSENGER TRANSPORT SUB-SECTOR


a.
b.

Intra-City- minibuses carrying up-to 26
passengers. cover a radius of 60km.
In this study, two routes to be analysed are: a. Town Centre – Chelstone (Munali
Constituency); and
Town Centre – Matero (Matero
Constituency).
preferred because they host the largest
population sizes in Lusaka.
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
Inter-City - serviced by buses with up-to 76
passengers covering above 60km radius.
a. Lusaka – Chipata route; and
b. Lusaka – Kitwe route.


Preferred due to highest number of buses
per day.
on average eight (8) buses leaving Lusaka
for Chipata and ten (10) leaving Lusaka for
Kitwe
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PASSENGER TRANSPORT SUB-SECTOR
1.
Liberalization Policy (Transport Policy and Road
Act No. 11 of 2002)
2.
ROADSIP (Road Traffic Act No.13 of 2002)
3.
Road Traffic Act No. 11 of 2002
4.
Competition and Fair Trading Act, Cap 417 and
its Laws and Regulations
5.
Toll gates charges
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PASSENGER TRANSPORT SUB-SECTOR
1.
Entry conditions – licensing, formalization and
informality
2.
Price setting-fare determination, distance-fare
charges, etc.
3.
Quality of service and road safety as
4.
Freedom of consumer choice
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Thank you!
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