1 Zambia DCR Interim Review - CREW PAC II MEETING
Description: 1 Zambia DCR Interim Review - CREW PAC II MEETING - 20th November 2013, Outline Extensive though not exhaustive account of policy, regulatory and administrative reforms Identified on the basis of the nuanced belief about their ramification
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slide1. 1 Zambia DCR Interim Review
- CREW PAC II MEETING -
20th November 2013,<br>
slide2. Outline Extensive though not exhaustive account of policy, regulatory and administrative reforms
Identified on the basis of the nuanced belief about their ramification for consumers and producers welfare
Prepared under the guidance of CUTS Int’l and Nathan Associates Inc.
Identifies key stakeholders, consumers, producers, available data and missing data, 2<br>
slide3. Staple food sub-sector Analysis based on major components of the supply chain.
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. 3<br>
slide4. Staple Food sub- sector Issues for competition
FRA is huge, it is likely to distort the size distribution in the market.
It’s public nature has consequences on the regulatory enforcement 4 Size distribution of players Market structure and Behavior Price Setting, Availability and Consumer/producer welfare<br>
slide5. Staple food sub-sector Farmer Input Supply Program (2009 to date) - pure case of policy and administrative reforms (mainly dismal)
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 5<br>
slide6. Staple food sub-sector Export and Import Restrictions
Exporting and importing of maize in Zambia requires a licence that is issued by MoA
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.
In some years, there have been more free trade involving private traders both exporting and importing,
Mainly Zambia is used to export maize to DRC Congo. 6<br>
slide7. 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 7<br>
slide8. Staple food sub-sector 8<br>
slide9. Staple food sub-sector 9<br>
slide10. Staple food sub-sector Data collection will involve
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 10<br>
slide11. Passenger Transport sub-sector 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. 11<br>
slide12. 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 12<br>
slide13. Passenger Transport sub-sector Liberalization Policy (Transport Policy and Road Act No. 11 of 2002)
ROADSIP (Road Traffic Act No.13 of 2002)
Road Traffic Act No. 11 of 2002
Competition and Fair Trading Act, Cap 417 and its Laws and Regulations
Toll gates charges 13<br>
slide14. Passenger Transport sub-sector Entry conditions – licensing, formalization and informality
Price setting-fare determination, distance-fare charges, etc.
Quality of service and road safety as
Freedom of consumer choice 14<br>
slide15. Thank you! 15<br>
- CREW PAC II MEETING -
20th November 2013,<br>
slide2. Outline Extensive though not exhaustive account of policy, regulatory and administrative reforms
Identified on the basis of the nuanced belief about their ramification for consumers and producers welfare
Prepared under the guidance of CUTS Int’l and Nathan Associates Inc.
Identifies key stakeholders, consumers, producers, available data and missing data, 2<br>
slide3. Staple food sub-sector Analysis based on major components of the supply chain.
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. 3<br>
slide4. Staple Food sub- sector Issues for competition
FRA is huge, it is likely to distort the size distribution in the market.
It’s public nature has consequences on the regulatory enforcement 4 Size distribution of players Market structure and Behavior Price Setting, Availability and Consumer/producer welfare<br>
slide5. Staple food sub-sector Farmer Input Supply Program (2009 to date) - pure case of policy and administrative reforms (mainly dismal)
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 5<br>
slide6. Staple food sub-sector Export and Import Restrictions
Exporting and importing of maize in Zambia requires a licence that is issued by MoA
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.
In some years, there have been more free trade involving private traders both exporting and importing,
Mainly Zambia is used to export maize to DRC Congo. 6<br>
slide7. 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 7<br>
slide8. Staple food sub-sector 8<br>
slide9. Staple food sub-sector 9<br>
slide10. Staple food sub-sector Data collection will involve
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 10<br>
slide11. Passenger Transport sub-sector 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. 11<br>
slide12. 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 12<br>
slide13. Passenger Transport sub-sector Liberalization Policy (Transport Policy and Road Act No. 11 of 2002)
ROADSIP (Road Traffic Act No.13 of 2002)
Road Traffic Act No. 11 of 2002
Competition and Fair Trading Act, Cap 417 and its Laws and Regulations
Toll gates charges 13<br>
slide14. Passenger Transport sub-sector Entry conditions – licensing, formalization and informality
Price setting-fare determination, distance-fare charges, etc.
Quality of service and road safety as
Freedom of consumer choice 14<br>
slide15. Thank you! 15<br>