MTC Annual Report 2019
Ministry of Transport and Communications
2019 ANNUAL REPORT
For more information please visit at www.mtc.gov.zm or at the address below:
MINISTRY OF TRANSPORT AND COMMUNICATIONS Independence Avenue P.O. Box 50065 Lusaka, Zambia, Tel: +260-211-252 475
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MTC Annual Report 2019
Vision ““A SMART and Value Centred Ministry of Transport and Communications”.
Mission To facilitate the development of the Transport, Communications and ‘Meteorology System in Zambia for sustained development
Goals
The Goals of the Ministry are “to lower the cost of Transport and Communication, to provide connectivity and integrate all modes of Transport and Communications, to enhance Transport Safety, to promote ICT to create a knowledge based society, to provide reliable and accurate meteorology services
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MTC Annual Report 2019
Minister’s Statement
The Year 2019 was interesting for the Ministry to continue its quest and focus of developing Transport, Communications and Meteorological services in accordance with the Seventh National Development Plan.
During the year, the Ministry recorded some key successes most of which relate to the finalisation and launching of the Revised National Transport Policy on 1st August 2019. The Policy is a guide to Government’s agenda towards the development of transport in the country and is intended to facilitate the transformation of Zambia into a regional transport hub. The Ministry also continued consultations with key stake holders on the National Transport Master Plan and a draft was resubmitted to Cabinet for approval.
Further, six (6) were drafted and submitted to the Ministry of Justice namely, the Data Protection Bill, Electronic Transactions and Electronic Commerce Bill, Cyber Security and Cyber Crimes Bill, Road Traffic Amendment Bill, Tanzania Zambia Railways Authority (Repeal) Bill, and the Inland Waterways (Repeal and Replacement) Bill.
Considerable progress was also recorded in the installation of ICT infrastructure nationwide through the Communication Towers Project Phase II; with the upgrading of the Kenneth Kaunda International Airport (KKIA) which advanced to 86% completion; the construction of the Copperbelt International Airport (CIA) at 66% completion; as well as the transfer of 68 District Aerodromes to the Local Authorities.
In our Parliamentary engagement, we answered various questions on the floor of the House and issued several Ministerial Statements to keep the nation abreast with developments under the Ministry. Significantly, Twenty Four (24) annual reports were tabled from our different institutions and Fifteen (15) Action Taken Reports were processed.
Hon. Mutotwe Kafwaya Minister of Transport and Communications
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Permanent Secretary’s Statement
The Ministry’s vision is for Zambia to be a hub of Transport, Communications and Meteorology services in Southern Africa by the year 2030 and our Mission is to facilitate accelerated growth and development of Transport, Communications and Meteorology services.
Our goal is to reduce the cost of transport and communication and attain a self-sustained meteorological system that will accelerate economic development for Zambia. The 2019 Annual Report reviews the performance of the Ministry against the set targets.
In the year 2019, the Ministry was allocated ZMW 915,348,567. In addition, the Ministry received a supplementary budget of ZMW 191,493,776 bringing the total authorised provision to ZMW 1,106,842,343.
The major component of the budget was Capex which accounted for K483,856,616 while support to the Government Grant Aided Institutions accounted for K479,562,987 and the balance of K52,191,885 was for Personnel Emoluments and Recurrent Departmental Charges (RDCs). The Ministry raised K899,639,078 as Government revenue achieving 105.04% of the set target of K856,488,682.94, During the review period, the performance of the transport sector was mixed. The rail transport, road transport, maritime and inland waterways subsectors recorded a positive performance in both passenger and cargo movement. Similarly, the Information and Communication Technology sub-sector improved in the review period compared to the corresponding period in 2018.
In 2019, the Ministry finalised the 2019-2021 Strategic Plan so as to pave the way for the restructuring and align the focus of the Ministry to the Seventh National Development Plan.
Gratitude goes to all staff in the Ministry and Agencies/Institutions for their dedication to duty resulting in good performance during the year under review.
Eng. Misheck Lungu Permanent Secretary Ministry of Transport and Communications 3
MTC Annual Report 2019
Table of Contents
Minister’s Statement ...... 2 Permanent Secretary’s Statement ...... 3 Acronyms and Abbreviations ...... 8 Chapter 1: Governance and Institutional Framework...... 9 Chapter 2: Policy Reforms ...... 11 2.1 Areas of Focus ...... 11 2.2 Implementation Progress ...... 11 2.2.1 2019-2028 National Transport Policy ...... 11 2.2.2 National Transport Master Plan ...... 11 2.2.3 Cabinet Memorandum ...... 11 2.2.4 Parliamentary Business ...... 11 2.2.5 Bills and Statutory Instruments processed and submitted to the Ministry of Justice ...... 11 2.2.6 Reports Tabled before Parliament...... 12 Chapter 3: Budget Performance ...... 13 3.1 Overview ...... 13 3.2 Annual Budget Releases to Statutory Bodies ...... 13 3.3 Revenue Performance ...... 15 3.3.2 RTSA 2019 Revenue Performance ...... 15 3.3.3 Aviation 2019 Revenue Performance ...... 15 3.3.4 Maritime and Inland Waterways 2019 Revenue Performance ...... 16 Chapter 4: Human Resources and Administration Department...... 17 4.0 Overview ...... 17 4.1 Areas of Focus ...... 17 4.2 Implementation Progress ...... 17 4.2.1 HUMAN RESOURCES MANAGEMENT ...... 17 4.2.1.1 Appointments and Transfers ...... 17 4.2.1.3 Disciplinary ...... 17 4.2.1.4 Leave Management ...... 18 4.2.2 HUMAN RESOURCES DEVELOPMENT ...... 18 4.2.2.1 Capacity Building...... 18 4.2.2.2 Human Resources Development Committee ...... 18 4.2.2.3 Upscaling the Work of the Integrity Committee...... 18 4.2.3 ADMINISTRATION ...... 18 4.2.3.1 Transport Management ...... 18 4.2.3.2 Records Management ...... 18 4.3 Audit Unit ...... 19 4.3.1 Implementation Progress ...... 19 4.4 Procurement and Supplies Unit ...... 19 4.4.1 Overview ...... 19 4.4.2 Implementation Progress ...... 20 Chapter 5: DEPARTMENT Of TRANSPORT ...... 21 4
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5.0 Overview ...... 21 5.1 Areas of Focus ...... 21 5.2 Implementation Progress ...... 21 5.2.1 Aviation Sub-Sector ...... 21 5.2.1.1 Establishment of the National Airline ...... 21 5.2.1.2 Aerodrome Administration and Management ...... 21 5.2.1.3 Transfer of District Aerodromes to Local Authorities ...... 22 5.2.1.4 Development of an Aviation Strategy ...... 22 5.2.1.5 Transformation of the Zambia Air Services Training Institute (ZASTI) ...... 22 5.2.1.6 Implementation of the 11th European Development Fund (EDF) Aviation Sector Support Programme ...... 22 5.2.2 RAILWAY SUB-SECTOR ...... 22 5.2.2.1 Zambia Railways Limited Modernisation Project ...... 22 5.2.2.2 Shifting of 30% Bulk Cargo from Road to Rail ...... 23 5.2.2.3 Tanzania Zambia Railway Authority (TAZARA) ...... 23 5.2.2.4 Annual Railway Certification Inspections ...... 23 5.2.2.4 Lusaka Mass Transit Railway Project ...... 23 5.2.2.5 Livingstone via Kazungula to Sesheke Railway ...... 23 5.2.2.6 Kafue to Lion’s Den Railway Project ...... 24 5.2.2.7 North- Western Railway ...... 24 5.2.3 ROAD TRANSPORT SUB-SECTOR ...... 24 5.2.3.1 Protecting Fifty Percent (50%) of the Road Freight Market Share...... 24 5.2.3.2 Road Traffic and Safety Policy ...... Error! Bookmark not defined. 5.2.3.3 Mwami-Mchinji One Stop Border Post Project...... 24 5.2.3.4 Road Traffic Act (Amendment) ...... 24 5.2.3.5 Roads Climate Change Programme ...... 25 5.2.3.6 Road Sub Sector Investment Programme (ROADSSIP) ...... 25 5.2.3.7 Walvis Bay-Ndola-Lubumbashi Transport Development Corridor ...... 25 5.2.3.8 Tripartite Transport and Transit Facilitation Programme (TTTFP) ...... 25 5.2.3.9 Review of the Mandate of Road Sector Institutions ...... 25 5.2.3.9 Lusaka Decongestion Programme ...... 25 Chapter 6: DEPARTMENT Of METEOROLOGY ...... 27 6.0 Overview ...... 27 6.1 Areas of Focus ...... 27 6.2 Implementation Progress ...... 27 6.2.1 Weather Climate Monitoring And Updates ...... 28 6.2.1.1 Climate Monitoring and Updates ...... 28 6.2.1.2 The 2019/2020 Rainy Season Forecast ...... 28 6.2.1.3 Weather and Climate Dissemination Channels ...... 28 6.2.2 METEOROLOGICAL PRODUCTS AND SERVICES ...... 27 6.2.3 EXPANSION AND MODERNISATION OF METEROLOGICAL STATION NETWORK29 6.2.4 ZMD STRATEGIC PLAN ...... 28 6.2.5 DEVELOPMENT OF A NUMERICAL WEATHER PREDICTION MODEL ...... 29 6.2.6 ON-GOING PROJECTS ...... 29 6.2.7 THE DRAFT METEOROLOGICAL BILL ...... 28 Chapter 7: Department of Maritime and Inland Waterways ...... 30 7.0 Overview ...... 30 7.1 Areas of Focus ...... 30 5
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7.2 Implementation Progress ...... 30 7.2.1 NAVIGATION SAFETY MANAGEMENT ...... 30 7.2.1.1 Vessel Inspection and Law Enforcement ...... 30 7.2.1.2 Introduction of New Payment System for Maritime User Fees ...... 30 7.2.2 PROVISION OF SAFE AND RELIABLE WATER TRANSPORT SERVICES ...... 31 7.2.2.1 Training of Boat Captains and Crew ...... 31 7.2.2.2 Launch of the Water Buses ...... Error! Bookmark not defined. 7.2.2.3 Decentralisation of Maritime Services ...... 31 7.2.3 MARINE INFRASTRUCTURE DEVELOPMENT ...... 31 7.2.3.1 Construction of Landing Jetties ...... 31 7.2.3.2 Dredging of Landing Sites ...... 31 7.2.4 POLICY FORMULATION AND DEVELOPMENT ...... 31 7.2.4.1 Review of Legislation ...... 31 7.2.4.2 Creation of Zambia Maritime Authority ...... Error! Bookmark not defined. Chapter 8: Department of Communications ...... 32 8.0 Overview ...... 32 8.1 Areas of Focus ...... 32 8.2 Implementation Progress ...... 32 8.2.1 COORDINATING THE IMPLEMENTATION OF ICT AND POSTAL PROJECTS ...... 32 8.2.1.1 Construction of Phase II Communication Towers ...... 32 8.2.1.2 Telecommunications Traffic Monitoring System ...... 32 8.2.2 PROMOTION OF UNIVERSAL ACCESS TO ICT’S -ESTABLISHMENT OF A CYBER CITY ...... 33 8.2.3 POLICY, LEGAL AND REGULATORY DEVELOPMENT ...... 33 8.2.3.1 National Postal Policy...... 33 8.2.3.2 National Information and Communication Technology Policy ...... 33 8.2.3.3 Repeal and Amendment of ICT Bills ...... 33 8.2.3.4 Statutory Instrument: Postal Services Regulation 2019 ...... 33 8.2.3.5 Amendment of the Information and Communication Technology Act ...... 33 Chapter 9: Planning and Monitoring Department ...... 34 9.0 Overview ...... 34 9.1 Areas of Focus ...... 34 9.2 Implementation Progress ...... 34 9.2.1 PARLIAMENTARY BUSINESS ...... 34 9.2.1.1 Parliamentary Committee Reports ...... 34 9.2.2MONITORING AND EVALUATION ...... 35 9.2.2.1 Preparation of Periodic Reports ...... 35 9.2.2.2 Monitoring and Evaluation Activities ...... 35 9.2.3 BUDGET PREPARATION ...... 35 9.2.4 BILATERAL AND MULTILATERAL COOPERATION ...... 35 Chapter 10: Finance Department ...... 37 10.0 Overview ...... 37 10.1 Areas of focus ...... 37 10.2 Implementation Progress ...... 37 10.2.1 Monitoring the Collection of Non-Tax Revenue ...... 37 10.2.2 Expenditure Control And Reporting ...... 37 10.2.3 Management Of Above the Line Accounts ...... 38 10.2.4 AUDIT QUERY RESOLUTION...... 38 6
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Chapter 11: Transport and Communications Economic Report ...... 37 11.0 TRANSPORT AND COMMUNICATIONS ...... 39 11.1 ROAD TRANSPORT ...... 39 11.1.2 Number of Road Traffic Accidents...... 39 11.1.3 Passengers’ Transported by Road ...... 39 11.1.4 Number of New Vehicles Registered ...... 40 11.1.5 Volume of Cargo in Kilogrammes Transported by Road ...... 40 11.1.6 RTSA Prospects for 2020...... 41 11.1.2 AIR TRANSPORT ...... 41 11.1.2.1 Passenger and Cargo Movements ...... 41 11.1.2.2 Cargo and Mail...... 42 11.1.2.3 Aircraft Movements ...... 42 11.1.2.3 ZACL General Outlook - 2020 ...... 42 11.1.3 RAILWAY TRANSPORT ...... 43 11.1.3.1 Passengers Transported by Rail ...... 43 11.1.3.2 Cargo Transported by Rail ...... 43 11.1.3.3 ZRL Future Prospects ...... 44 11.1.3.4 TAZARA Efforts to Improve Performance during the next Financial Year, 2020 ...... 45 11.1.3.5 Assumptions to Achieve Projected Performance ...... 45 11.1.4 MARITIME AND INLAND WATERWAYS ...... 46 11.1.5 INFORMATION AND COMMUNICATIONS ...... 47 11.1.5.1 Mobile Telephone Subscription ...... 47 11.1.5.2 Mobile Traffic Volume...... 47 11.1.5.3 Internet Service Provision ...... 48 11.1.5.4 Communication Tower Installation ...... 48 11.1.5.5 Telecommunication Sites ...... 49 Chapter 12: Management of Ministerial Programmes ...... 50 Chapter 13: Challenges ...... 50 Chapter 14: Recommendations ...... 50 Chapter 15: Conclusion ...... 51 Appendix I: Human Resource ...... 51 Table 1: Staffing ...... 51 Table 3: Study Leave ...... 52
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Acronyms and Abbreviations
AfDB African Development Bank BRRA Business Review and Regulatory Agency CAA Civil Aviation Authority COMESA Common Market for Eastern and Southern Africa EIZ Engineering Institution of Zambia GSM Global System for Mobile Communications GWAN Government Wide Area Network HMNIA Harry Mwaanga Nkumbula International Airport ICAO International Civil Aviation Organisation ICT Information and Communication Technology IFMIS Integrated Financial Management Information System KKIA Kenneth Kaunda International Airport MoF Ministry of Finance MTEF Medium Term Expenditure Framework MTC Ministry of Transport and Communications NRFA National Road Fund Agency PMEC Payroll Management and Establishment Control PSC Public Service Commission PSMD Public Service Management Division RDA Road Development Agency RTSA Road Transport and Safety Agency SADC Southern African Development Community SAG Sector Advisory Group TAZARA Tanzania-Zambia Railway Authority UNZA University of Zambia USOAP Universal Safety Oversight Audit Programme ZACL Zambia Airports Corporation Limited ZAMPOST Zambia Postal Services Corporation ZAMTEL Zambia Telecommunications Company Limited ZASTI Zambia Air Services Training Institute ZICTA Zambia Information and Communications Technology Authority ZPPA Zambia Public Procurement Authority ZNDC Zambia National Data Centre ZRL Zambia Railways Limited
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Chapter 1: Governance and Institutional Framework
1.0 Introduction The mandate of the Ministry of Transport and Communications (MTC) is to coordinate the development and regulation of the Transport, Communications and Meteorology sectors.
The Ministry of Transport and Communications was established as a Government institution responsible for formulating, administering and implementing policies in the Communications, Transport and Meteorological Sectors.
The 2019 Annual Report presents the main programmes and activities that were undertaken by the Ministry during the year under review. The report records key successes and challenges, to enable stakeholders and the general public have a fair understanding of the performance of the Ministry in terms of service delivery.
During the period under review, the Ministry finalised the 2019-2021 Ministerial Strategic Plan. The MTC Strategic Plan was largely designed to deliver on the sector goals under the Seventh National Development Plan. The Strategic Plan would guide the Ministerial focus and the establishment required to deliver on the set objectives.
Most of the operations of the Ministry were guided by the Public Finance Act, the Public Procurement Act and the Public Audit Act.
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1.1 Mandate and Portfolio Functions The Ministry’s mandate is derived from Government Gazette Notice No. 836 of 2016 which outlines the portfolio functions as follows: -
1. Civil Aviation Policy; 2. Civil Aviation Training; 3. Inland Water Transport Policy; 4. ICT Policy; 5. Meteorology Policy; 6. Railway Transport Policy; and 7. Road Traffic Policy. The Institutions under the Ministry are: 1. Zambia Information and Communications Technology Authority (ZICTA); 2. Zambia Telecommunications Corporation (ZAMTEL); 3. Zambia Postal Services Corporation (ZAMPOST); 4. Zambia Cargo and Logistics Company (Zamcargo); 5. Mpulungu Harbour Corporation (MHCL); 6. Zambia Chattered Institute of Logistics and Transport (ZCILT); 7. Road Transport and Safety Agency (RTSA); 8. Civil Aviation Authority (CAA); 9. Zambia Airports Corporation Ltd (ZACL); 10. Zambia Air Services Training Institute (ZASTI); 11. Zambia Railways Ltd (ZRL); and 12. Tanzania Zambia Railways Authority (TAZARA) 13. Aviation Accidents and Incidents Tribunal (AAIB) 14. Roads Appeals Tribunal The Acts of Parliament under the Ministry are: - 1. Inland Waters Shipping Act Cap 466; 2. Merchant Shipping Act Cap 468; 3. Railways Act No. 453 of 1995; 4. Road Traffic Act No. 11 of 2002; 5. Information and Communications Act No. 15 of 2009; 6. Electronic Communications and Transactions Act No. 21 of 2009; 7. Postal Services Act No. 22 of 2009; 8. Civil Aviation Authority Act No. 7 of 2012; and 9. Civil Aviation Act No. 5 of 2016.
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Chapter 2: Policy Reforms
2.1 AREAS OF FOCUS
1. National Transport Policy; 2. Finalisation of the National Transport Master Plan; 3. Cabinet Memorandum 4. Parliamentary Business 5. Review and Development of Policies and Legislation
2.2 IMPLEMENTATION PROGRESS
Reforms undertaken in the year 2019 under the Ministry of Transport and Communications were as follows:
2.2.1 2019-2028 National Transport Policy The review of the 2002 National Transport Policy was finalised and the New National Transport Policy was launched on 1st August 2019. The Ministry, supported by the World Bank, embarked on a national dissemination exercise to stakeholders and by the close of the year, only Lusaka and Eastern provinces were not covered.
2.2.2 National Transport Master Plan During the year under review, consultations were conducted with key line Ministries as guided by Cabinet in June 2018, and the Draft National Transport Master Plan was re-submitted to Cabinet for approval.
2.2.3 Cabinet Memorandum In 2019, six Cabinet Liaison Committee Meetings were held. Three (3) Out-going Cabinet Memoranda and fifty-nine (59) Incoming Cabinet Memoranda were processed.
2.2.4 Parliamentary Business The Ministry processed Fifteen (15) Action Taken Reports, attended to several Parliamentary queries and provided responses to 5 Parliamentary questions. Five (5) Explanatory Memoranda to Committees were issued. Appearances were made before two (2) Parliamentary Committees, namely: The Public Accounts Committee and Committee on Parastatal Bodies.
2.2.5 Bills and Statutory Instruments processed and submitted to the Ministry of Justice
1) Data Protection Bill; 2) Electronic Transactions and Electronic Commerce Bill; 3) Cyber Security and Cyber Crimes Bill; 4) Road Traffic Amendment Bill;
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5) Tanzania Zambia Railway Authority (Repeal) Bill; 6) Meteorology Bill (Submitted to Ministry of Justice in 2017); and 7) Statutory Instrument on Aviation Search and Rescue. 8) Statutory Instruments for Revenue under the Inland Waterways Act 9) Statutory Instrument for Postal Services (General) Regulations
2.2.6 Reports Tabled before Parliament
1) 2017 and 2018 Zambia Cargo and Logistics LTD (2 Reports). 2) 2017 and 2018 Mpulungu Harbour Corporation LTD (2 Reports). 3) 2017 Annual Report Civil Aviation Authority CAA. 4) 2017 and 2018 Zambia Airports Corporation LTD ZACL (2 Reports). 5) 2018 Zambia Information and Communications and Technology Authority (ZICTA). 6) 2018 Mid and Annual Accidents Reports, Road Transport and Safety Agency (RTSA). 7) 2014-2018 TAZARA Annual Report (5 Reports). 8) 2015 and 2016 Zambia Air Services Training Institute (ZASTI). 9) 2012-2018 Zambia Railways (ZRL) LTD (7 Reports). 10) 2017 and 2018 Ministry of Transport and Communications Annual Reports (2 Reports)
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Chapter 3: Budget Performance
3.1 OVERVIEW
In the year 2019, the Ministry had a total approved budget provision of ZMW 915,348,567 for the year ending December 2019 and was given a supplementary of ZMW 191,493,776.00 bringing the total budget provision to ZMW 1,106,842,343.00. A total of ZMW 368,816,629.00 was released from January to December 2019 for budget execution by the Ministry. Of the total releases ZMW 324,840,170.00 went towards payment of grants, ZMW 20,561,389.00 went towards payments of salaries leaving a balance of ZMW 23,415,070 which was apportioned to Departments and Units under the Ministry for various operations. The breakdown of the budget status is indicated in the table below:
Table 1: Budget Status at Department Level - Budget Provision, Releases and Expenditure Sub Budget Provision Releases Expenditure % Release % Head against Expenditur Provision e against Releases
HRA 587,646,324.00 353,971,551.00 353,812,786.75 60.24% 99.96%
Finance 3,896,223.00 2,281,346.00 2,267,604.76 58.55% 99.40% Met 8,262,992.00 3,964,252.00 3,964,141.37 47.96% 100% Maritime 4,386,955.00 2,143,483.00 2,135,662.94 48.86% 99.64%
Coms 1491,696,687.00 2,426,532.00 2,425,059.43 0.49% 99.94% Transpor 5,688,192.00 2,150,377.00 2,125,311.08 37.80% 98.83% t Planning 5,264,970.00 1,879,089.00 1,868,444.64 35.69% 99.43% Total 1,106,842,343.00 368,816,629.00 368,599,010.97 33.32% 99.94%
Source: Finance Department
3.2 ANNUAL BUDGET RELEASES TO STATUTORY BODIES
From the overall budget of ZMW 479, 562, 987.00 for Statutory Bodies, only ZMW 324, 840, 170.00 was released representing 67.74% of the budget. The expenditure for Statutory Bodies was ZMW 324, 840, 169.00 against the releases of ZMW 324, 840, 170.00 representing 100% expenditure against releases.
The Supplementary budget provisions were ZMW 119, 832, 017 for ZICTA, and ZMW 71, 546, 906 for CAA.
1 This largely comprised of K113,277,786.96 funded by China Exim bank as a loan for Communication Towers Phase II Project
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Table 2: Grant Releases to Statutory Bodies
Statutory Budget Supplemen Total Releases Expenditur % % Bodies Provision tary/Variat Budget e Releas Expendit ions Provision e ure against against Provisi Releases on Bangweulu 720,000.00 720,000.00 600,000.00 600,000.00 83.33% 100% Water Transport Board
Government 1000,000.00 1000,000.00 999,998.99 999,998.66 100% 100% Communicatio ns Flight Mulamba 252,000.00 252,000.00 189,000.00 189,000.00 75% 100% Harbour Mweru Water 720,000.00 720,000.00 540,000.00 540,000.00 75% 100% Transport Board Road 104,213,970.0 104,213,970.0 104,213,970.0 104,213,970.0 100% 100% Transport and 0 0 0 0 Safety Agency ZAMPOST 837,500.00 220,000,000.0 20,837,500.00 15,348,958.35 15,348,958.35 73.66% 100% 0 ZICTA 115,420,594.0 119,832,017.0 235,252,611.0 130,031,652.7 130,031,652.7 55.27% 100% 0 0 0 6 6 Civil Aviation 32,400,000.00 71,546,906.00 103,946,906.0 63,946,906.00 63,946,906.00 61.52% 100% 0 Zambia Air 4,805,000.00 4,805,000.00 3,582,183.42 3,582,183.42 74.55% 100% Services Training Institute
Logistics and 315,000.00 315,000.00 262,500.00 262,500.00 83.33% 100% Transport Institute Aircraft 500,000.00 500,000.00 375,000.34 375,000.00 75% 100% Accident and Incident Investigations
Zambia 6,000,000.00 6,000,000.00 4,000,000.00 4,000,000.00 66.67% 100% Airports - Management of Airports
Roads 1,000,000.00 1,000,000.00 749,999.66 749,999.33 75% 100% Tribunal
2 This amount was a variation from Domestic Arrears to Zampost as Recapitalisation 14
MTC Annual Report 2019
Total 268,184,064.0 211,378,923.0 479,562,987.0 324,840,170.0 324,840,168.5 67.74% 100% 0 0 0 0 2 Source: Finance Department
3.3 REVENUE PERFORMANCE
The Ministry managed to reconcile revenue from the two main revenue streams of road and telecommunication licensing for the period January to December 2019. Consolidated returns were prepared and submitted to Ministry of Finance as per requirement by the Treasury. The Ministry estimated to collect a total of ZMW 1,045,116,144.00 in the budget for the financial year ending December 2019. This figure was adjusted to K806, 387, 189.78 during the year due to changes in the assumption used to come up with the estimations by some collecting centres. The Ministry had collected a total of ZMW 899,639,078.11 for the period January to December 2019, broken down as follows:
Table 3: MTC 2019 Revenue Performance
Revenue Type 2018 Actual 2019 Estimates 2019 Actual Percentage Against 2019 Estimates and 2019 Actual ZICTA Licence 306,776,778.47 295,092,009.94 292,792,667.12 99.22%
Road Traffic Collections 465,927,932.00 509,608,038.00 510,106,128.00 100.1%
Air Service Permit Fees 6,746,623.00 9,190,463.16 Aviation & Landing Fees 57,959,606.94 48,747,635.00 87,332,218.83 179.15% Maritime & Inland water 95,496.00 3,041,000.00 217,601.00 7.15% ways fees Totals 837,506,436.41 856,488,682.94 899,639,078.11 105.04%
Source: Finance Department
3.3.1 ZICTA 2019 Revenue Performance In the year under review, ZICTA collected revenue which stood at 99%, the target was not achieved by the end of the year on account of failure to pay by some licensees, for example Zamtel Limited owes a total of K30, 376, 115 in fees due in the period under review, Mobile Broadband K3, 890, 011 and ZAMNET K699, 864. If these amounts were paid, the adverse variance in revenue would be reversed.
3.3.2 RTSA 2019 REVENUE PERFORMANCE
In the year under review, RTSA collected ZMW 510.1 million which was 100.1% of the targeted revenue.
3.3.3 AVIATION 2019 REVENUE PERFORMANCE
In the period under review, Aviation and Landing fees collected were 179.15% above target. Air Service Permit fees recorded a real figure of ZMW 9,190,463.16. 15
MTC Annual Report 2019
3.3.4 MARITIME AND INLAND WATERWAYS 2019 REVENUE PERFORMANCE
In 2019, Maritime recorded an increase in revenue collection to ZMW 217,601.00 from ZMW 95, 496 in 2018 representing a percentage increase of 127.86% from the previous year. Against the target for the year, Maritime revenue only reached 17.06%
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Chapter 4: Human Resources and Administration Department
4.0 OVERVIEW
The Human Resources and Administration Department provisions services for management of human resources and administration in order to facilitate operations and improve the Ministry’s performance. The Ministry had 298 positions on the payroll of which 280 positions were filled and 18 were vacant as at 31st December, 2019.
4.1 AREAS OF FOCUS
1) Human Resource Management 2) Human Resource Development 3) Upscaling the work of the Integrity Committee 4) Administration - Transport Management - Registry Management System
4.2 IMPLEMENTATION PROGRESS
4.2.1 HUMAN RESOURCES MANAGEMENT
4.2.1.1 Appointments and Transfers
During the period under review, four (04) officers reported on first appointment. Sixteen (16) officers were transferred into the Ministry from various Ministries and nineteen (19) officers were transferred out of the Ministry.
4.2.1.3 Disciplinary The Ministerial Disciplinary Committee held four (4) sittings which tabled twenty-four (24) cases. Out of the twenty-four (24) cases, ten (10) officers were dismissed, one (01) officer was recommended for dismissal, five (05) officers’ cases are still being reviewed and eight officers were cleared.
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4.2.1.4 Leave Management Out of one hundred and eighty officers (180) scheduled to proceed on leave in 2019, sixty- four (64) proceeded on leave as outlined in Table 2 in the appendix.
4.2.2 HUMAN RESOURCES DEVELOPMENT
4.2.2.1 Capacity Building The Unit facilitated one workshop on Mind Transformation, and several sponsored courses abroad that enabled ten (10) officers from the Ministry to participate in the China Aid Project under the Economic Counsellor’s Office and India’s ITEC-SCAAP. In addition, nineteen (19) officers underwent training under the Project Management and Communication Skills Course. Further, the Ministerial Training and Development Plan for the period 2020-2022 was consolidated and submitted to the Department of Human Resources Development under Public Service Management Division (PSMD) on 12th December, 2019.
4.2.2.2 Human Resources Development Committee The Human Resources Development Committee (HRDC) had four (4) sittings to enhance training and development of staff in the Ministry and deliberated on eleven (11) cases of which: one (01) was rejected due to the applicant’s age, nine (09) were approved by the Committee and PSMD one (01) application was rejected.
4.2.2.3 Upscaling the Work of the Integrity Committee The Ministry continued to institutionalise and upscale the fight against corruption. The Integrity Committee had two (02) sittings in the year under review. The Annual Corruption Prevention Action Plan (ACPAP) was approved by the Anti-Corruption Commission (ACC). Two (02) Policies namely the Gift and Benefits Policy and the Conflict of Interest Guidelines were developed and submitted to the ACC for consideration.
4.2.3 ADMINISTRATION
4.2.3.1 Transport Management During the period under review, fuel managed by individual Directorates was moved to the Office of the Director Human Resources and Administration for efficiency of procurement and utilisation. All motor vehicles in the Ministry were comprehensively insured with Madison General Insurance Company up to 31st December, 2019. Five (05) accidents were recorded of which one (1) claimed a life. The Ministry had an inventory of fourteen (14) vehicles which were non-runners due to mechanical faults as funds for vehicle repairs were not available.
4.2.3.2 Records Management During the period under review, the Registry Unit was centralised with all officers working from various Directorates moved and stationed at the Administration Building with the exception of the Meteorological Department due to its physical location. The
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Ministerial Draft Index was updated to include the File Index for Portfolio and Domestic files. In addition, a Ministerial Staff Index was created.
4.3 AUDIT UNIT
The Internal Audit Unit provides independent, objective, assurance and consulting services designed to add value and improve the Ministry’s operations. It ensures that the Ministry accomplishes its objectives by improving risk management, internal controls and governance processes.
4.3.1 Implementation Progress During the period under review, a new Audit Committee was constituted and by the end of the year, had held four (4) sittings and all Audit staff undertook a three (3) day audit training course with other Internal Audit staff from Parastatals and Grant Aided Institutions under the Ministry of Transport and Communications. The Unit undertook routine post audits of the MTC fourth quarter 2018 accounts, audit of Ministerial Payroll for the first and second quarter 2019, pre-audits of expenditure as well as audit of arrears and post audits of accounts for the first, second and third quarters of 2019 for the Ministry.
Among other programmes and activities undertaken were:
I. Audit of Zambia Air Services Training Institute (ZASTI) for the year 2018; II. Audit of Civil Aviation Authority (CAA) for the financial year 2018;
III. Audit of the auction sale for motor vehicles of CAA
IV. Audit of Zambia Chartered Institute of Logistics & Transport (ZCILT) for the financial year 2018; V. Follow up audits of Zambia Airports Corporation Ltd (ZACL), Mfuwe International Airport and Zambia ICT College for the financial year 2018;
VI. Audits of Bangweulu Water Transport Board and Mweru Water Transport Board for the financial year 2018; VII. Audit of Payroll for the Road Transport and Safety Agency (RTSA) for the financial years 2018 and 2019.
VIII. Audit of Zambia Cargo and Logistics Company Limited (ZAMCARGO) in Dar- es- Salaam Tanzania; and
IX. Audit of fuel utilisation for the 2017 Accounts.
4.4 PROCUREMENT AND SUPPLIES UNIT
4.4.1 Overview The Unit facilitates the procurement of goods, services and works for the Ministry.
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4.4.2 Implementation Progress In 2019, nine (09) Procurement Committee meetings were held to facilitate the procurement of goods, services, and works on behalf of Departments in the Ministry funded by both Government and Cooperating Partners.
The Unit facilitated the procurement of assorted office stationery, toners and general consumables, consultancy and non-consultancy services and works amounting to ZMW 2,249,737,451.13 (Two Billion Two Hundred and Forty-Nine Million Seven Hundred and Thirty-Seven Thousand Four Fifty-One Kwacha and Thirteen Ngwee).
This included the procurement of services for the Situation Analysis for the Aviation Sector, Consultancy for the Review of Institutional Mandates and the procurement of office accommodation from the Canadian High Commission and the procurement of National Broadband and Access Project.
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Chapter 5: DEPARTMENT Of TRANSPORT
5.0 OVERVIEW
The mandate of the Department of Transport (DoT) is to coordinate the development and sustainable growth of the transport sector in order to ease the movement of people, goods and services, thereby, facilitating economic and social development of the country.
5.1 AREAS OF FOCUS
1) Aviation Subsector
2) Railway Subsector
3) Road Subsector
5.2 IMPLEMENTATION PROGRESS
During the period under review, the 2019-2028 Revised National Transport Policy was launched and disseminated to relevant stakeholders. Further, the Draft National Transport Master Plan was re-submitted to Cabinet awaiting approval.
5.2.1 Aviation Sub-Sector
5.2.1.1 Establishment of the National Airline During the period under review, the Board of Directors and the Chief Executive Officer for the National Airline were appointed.
The Ministry also designated the former Zambia Airways office space to house the National Airline. The renovations of the buildings have since commenced and shall be completed by June, 2020. The National Airline is scheduled to commence operations by 3rd quarter of 2020, after due process is completed.
5.2.1.2 Aerodrome Administration and Management The Ministry formally transferred the employees under all Provincial Aerodromes to Zambia Airports Corporation Limited. This was subsequent to the issuance of Statutory Instrument No. 13 of 2018.
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5.2.1.3 Transfer of District Aerodromes to Local Authorities During the year under review, the Ministry working in collaboration with the Civil Aviation Authority (CAA), handed over the administration of District Aerodromes to Local Authorities and undertook training and sensitisation workshops for technical staff under the Local Authorities on CAA requirements for aerodrome maintenance and licensing as outlined in the Zambia Civil Aviation Requirements (ZCARs) Part 14. This activity was implemented to conform to the Decentralisation Policy and the Republican Constitution.
5.2.1.4 Development of an Aviation Strategy During the period under review, the Ministry engaged the Zambia Institute of Policy Analysis and Research (ZIPAR) to conduct a situation analysis on the Aviation Sector. The situation analysis was to guide the formulation of the Aviation Strategy which would provide a strategic framework to direct the growth of the Aviation Sector to transform Zambia into an Aviation Hub. In December 2019, ZIPAR submitted the Inception Report which the Technical Committee approved. They also submitted a draft final report of the situation analysis.
5.2.1.5 Transformation of the Zambia Air Services Training Institute (ZASTI) The Ministry engaged ZASTI Management and other Aviation Training Institutions, including the SAFOMAR Group of South Africa who had expressed interest to partner with ZASTI, to explore the possibilities of partnership. The SAFOMAR Group submitted a comprehensive proposal outlining the modalities for partnering with ZASTI. The Ministry of Justice commented on the proposal which was sent to SAFOMAR who are yet to respond.
5.2.1.6 Implementation of the 11th European Development Fund (EDF) Aviation Sector Support Programme During the year under review, Bid Evaluations for “Technical Assistance” to the Ministry, Civil Aviation Authority, Zambia Airports Corporation Limited, Zambia Air Services Training Institute and other industry players in Component II, were concluded and submitted to the European Union for determination and final selection.
5.2.2 RAILWAY SUB-SECTOR
5.2.2.1 ZAMBIA RAILWAYS LIMITED MODERNISATION PROJECT
In 2019, the contract negotiations with two Chinese Construction Companies, for the rehabilitation and upgrade of Zambia Railways infrastructure were finalised, and authority was sought from the Ministry of Finance to sign the project aggreements. Authority was granted on 27th September, 2019 on condition that the Ministry engages the Treasury on the finalisation of the Financing Agreements and that the Ministry of Justice reviews and clears the draft contracts. The two draft contracts were later submitted to the Ministry of Justice for review and clearance prior to the signing of the contract.
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5.2.2.2 SHIFTING OF 30% BULK CARGO FROM ROAD TO RAIL
In 2019, the Ministry constituted a Compliance Unit under the office of Government Inspector of Railways to monitor and ensure that all stakeholders comply with the new policy direction that compels transporters and manufacturers of heavy and bulk cargo to shift 30% of the cargo from road to rail.
During the period under review, orientation and sensitisation tours were conducted to various mining houses, manufacturing industries and logistics firms. Stakeholders submitted prescribed monthly returns within the stipulated timeframe. Performance of the Statutory Instrument (SI) for the period under review was at about 14% on average for all SI No. 7 based commodities. Further, the first reconciliation meeting was held with Zambia Railways Limited.
5.2.2.3 TANZANIA ZAMBIA RAILWAY AUTHORITY (TAZARA)
During the period under review, the Ministry constituted a Technical Working Group (TWG) made up of members from Ministries of Finance, Commerce, Trade and Industry, Foreign Affairs and National Development Planning. The objective of the TWG was to prepare terms and conditions to be used by the TAZARA Council of Ministers during discussions for the rehabilitation and sustainable development of TAZARA.
5.2.2.4 Annual Railway Certification Inspections In the period under review, the following inspections were conducted:
I. Four (04) Trans-Zambezi locomotives were inspected and qualified for railway operations in Zambia in line with the standard checklist and the 1984 Railways Act; II. Three (03)Annual Safety and Technical Certification Inspections were conducted on the following railway operators: i. Zambia Railways infrastructure and rolling stock; ii. Bush Tracks Africa Rolling Stock; and iii. Calabash Freight (sampling inspection on freight wagons was done on 70 wagons) and four Calabash locomotives hired to TAZARA.
5.2.2.4 Lusaka Mass Transit Railway Project Subsequent to the submission of a detailed feasibility study and technical report, the Ministry wrote to the Ministry of Finance requesting authority to direct bid NORINCO International Corporation Limited of China. The proposed total cost for the entire project was US$ 999, 374,029. Phase one will cost about US$256 million. The Ministry is awaiting a response from the Ministry of Finance to direct bid NORINCO through a formal direct bidding process.
5.2.2.5 Livingstone via Kazungula to Sesheke Railway During the period under review, a Joint Technical Committee (JTC) for the Kazungula Bridge Railway Connectivity Project was constituted and its mandate defined. To this effect, on 10th October, 2019 the JTC convened in Livingstone to prepare a draft road map 23
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involving various milestones to be achieved by both JTC and the Joint Steering Committee (JSC) towards the realisation of the project. The tender to engage a Consultant for the provision of consultancy services for feasibility studies and engineering designs was floated in Botswana and the two Board of Directors for ZRL and Botswana Railways mutually agreed that the consultancy would be extended to cover the portion from Kazungula bridge to Livingstone.
5.2.2.6 Kafue to Lion’s Den Railway Project In the period under review, The Consultant, Team Engineering SpA, financed by the Africa Development Bank (AfDB) at a cost of US$2.2 million, conducted field investigations and data collection resulting in the preparation and submission of the Inception, Data Compilation and Statistical Analysis Reports. The reports were reviewed and approved by the Joint Technical Review Committee (JTRC) which comprises members from Zambia and Zimbabwe. In the fourth quarter, the Consultant submitted the Field Survey Report for review and approval by the JTRC.
5.2.2.7 North- Western Railway In 2019, The Developer held a meeting with the Ministry to discuss the way forward with regard to expediting project development. It was agreed that the developer should expedite reviewing the Shareholders Agreement between Government and North West Railways. The developer submitted comments on the draft Shareholders Agreement which were reviewed, and consensus reached.
5.2.3 ROAD TRANSPORT SUB-SECTOR
5.2.3.1 Protecting Fifty Percent (50%) of the Road Freight Market Share A Statutory Instrument to reserve 50% of the road freight market share for local transporters was drafted, following the clearance and approval of the Regulatory Impact Assessment (RIA) by the Business Regulatory Review Agency (BRAA) on 23rd December, 2019. The approved RIA, Concept Note, Minutes of the Consultative Meetings which took place in Kitwe and Lusaka, together with the Draft Statutory Instrument were submitted to the Attorney General for legal opinion and issuance.
5.2.3.2 Mwami-Mchinji One Stop Border Post Project In 2019, overall physical progress on civil works stood at 40 % against the planned 55% progress and financial disbursement was at 48.95% making the project behind schedule. There was a shortfall on civil works which was estimated to be US 6.6 Million (48%) based on the signed contract sum. Joint Steering Committee and Joint Technical Committee meetings were held and several resolutions were made.
5.2.3.3 Road Traffic Act (Amendment) During the period under review, the amendment of the Road Traffic Act continued and consultations with the Ministry of Home Affairs at both technical and Permanent Secretary
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Levels were conducted. The process was not the process was to be concluded in the first quarter of 2020before resubmission to Cabinet.
5.2.3.4 Roads Climate Change Programme During the period under review, a session on developing a Centre of Excellence for Roads Climate Change Management, financed by the Nordic Fund, was held in February and a mechanism was proposed integrating the Ministry, the Road Development Agency (RDA), and Universities in order to work out a systematic training programme for roads and climate resilience.
5.2.3.5 Road Sub Sector Investment Programme (ROADSSIP) During the period under review, the procurement and tendering process for the consultancy for the Road Sub Sector Investment Programme (RoadSSIP) was extended in the first quarter. A contract was signed with the selected Bidder, a Joint Venture between an International Firm and a local firm. A pre- contract meeting was held in March 2019 and contract negotiations were undertaken. The signed contract was submitted to the Attorney General and to the African Development Bank for scrutiny and approval.
5.2.3.6 Walvis Bay-Ndola-Lubumbashi Transport Development Corridor During the period under review, Corridor coordination activities on the Walvis Bay – Ndola – Lubumbashi Transport Development Corridor continued. Among other issues discussed were: Trucker Service Stoppages into DRC; harassment of Zambian drivers, lack of appropriate parking at the borders and lack of truck packing facilities and amenities for both trucks and drivers in Namibia; lack of involvement of local communities and District Councils along the Corridor was identified as a challenge that needed to be addressed. Some of these issues were resolved, but are yet to be resolved.
5.2.3.7 Tripartite Transport and Transit Facilitation Programme (TTTFP) A Tripartite Sectoral, Ministerial, Committee Infrastructure meeting was held from 28th to 31st October, 2019 in Lusaka where several significant resolutions were made. Another two- day meeting in Lusaka was held with the Technical Assistant appointed to assist Zambia implement and domesticate the provisions of the TTTFP Laws and Standards and Regulations , which developed a road map on how to domesticate and implement the model laws and regulations.
5.2.3.8 Review of the Mandate of Road Sector Institutions In the period under review, the Ministry completed the procurement process for a consultant to review the mandate of Road Sector Institutions and the bid was awarded to AH Consulting of Uganda who have commenced the review. An inception meeting was held in the first week of December, 2019 and the Inception Report was expected to be submitted in January 2020.
5.2.3.9 Lusaka Decongestion Programme During the period under review, the Consultant submitted the Final Draft Feasibility Report which was reviewed by the Technical Team. Comments were generated and forwarded to the Consultant to incorporate in the Final Draft Feasibility Report. An Addendum to the running contract was developed to include the detailed design of Non-Motorised Transport 25
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Corridor from Chawama to Kabanana, a stretch of 16.5 Km along the line of Rail at an additional cost of USD 237,500. This was necessitated by huge volumes of pedestrians walking along the Rail line. The Addendum was cleared by the Bank and the Ministry of Justice, in December, 2019. The Addendum was signed between the two parties and works were expected to start in January 2020.
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Chapter 6: DEPARTMENT Of METEOROLOGY
6.0 OVERVIEW
The mandate of the Department of Meteorology is to collect produce and disseminate weather and climate information to all sectors, especially aviation, agriculture and water in order to facilitate informed decision making and enhance national adaptation to climate change, economic growth and improve quality of life in the country.
6.1 AREAS OF FOCUS
1) The Draft Meteorological Bill. 2) ZMD Strategic Plan; 3) Weather and Climate Monitoring and Updates;
4) Expansion and Modernisation of Meteorological Station Network; 5) On-going Projects; and
6.2 IMPLEMENTATION PROGRESS
6.2.1 METEOROLOGICAL PRODUCTS AND SERVICES
The Department during the year under review, generally, provided the following products and services to users across the country; • Seasonal Rainfall Forecast (September); • Crop Weather Bulletins (Every 10 days) during the 2019/2020 rainfall season; • Seven Day Weather Forecast; • Daily Weather Forecast (2 times /day); • Early Warning Advisories (for Drought and Flash Flood arreas); • Climate Data and Advisories; and • Aviation Products and Services
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6.2.2 THE DRAFT METEOROLOGICAL BILL
The realignment of the Meteorological Bill in collaboration with the Ministry of Justice was completed and has since been submitted in preparation for it to be tabled before Parliament by the Office of the Vice President.
6.2.3 ZMD STRATEGIC PLAN
During the year 2019, the Department launched the 2019-2024 Strategic Plan. The Plan provides a roadmap for improving meteorological services in Zambia to ensure that by 2024, citizens, institutions and the economic sectors access better services to integrate into planning and decision-making based on timely, accurate and high-quality weather and climate services. The development and launch of the 2019-2024 Strategic Plan was supported through collaboration involving the Government of Zambia, World Meteorological Organisation, and representatives of International Agencies.
6.2.3 WEATHER CLIMATE MONITORING AND UPDATES
6.2.3.1 Climate Monitoring and Updates Generally, the observed maximum temperature trend during the period under review indicated a slight increase in maximum temperatures as compared to the normal (30 year average) and minimum temperature also shows a similar trend (increase in minimum temperatures) as compared to the normal minimum temperatures across the country.
6.2.3.2 The 2019/2020 Rainy Season Forecast During the year under review, the 2019/2020 Season Rainfall Forecast was produced and launched by the Minister of Transport and Communications, Hon. Mutotwe L. Kafwaya, MP on 4th September, 2019. The forecast generally indicated a likelihood of normal to above normal rainfall over much of Zambia. This was attributed to the prevailing Neutral conditions observed over the southern Pacific Ocean.
The forecast was disseminated to the general public through private and community media houses as well as social media across the country. It was further disseminated in 16 districts of the Strengthening Climate Resilience for Agricultural Livelihoods in Agro-Regions I and II (SCRALA) Project areas of Southern, Western, Lusaka, Muchinga and Eastern Provinces. The Seasonal Forecast is attached as Appendix III.
6.2.3.3 Weather and Climate Dissemination Channels During the year under review, the Meteorology Department started live weather broadcasts on ZNBC TV2 Morning Live on Monday mornings. Further, the Department engaged Community Radio Stations in the provinces to enhance collaboration on dissemination of weather and climate information.
The 2019/2020 Season Rainfall Forecast was translated and disseminated into the seven main local languages; Luvale, Lunda, Kaonde, Tonga, Lozi, Bemba and Nyanja through private and community media houses as well as social media platforms across the country.
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6.2.4 EXPANSION AND MODERNISATION OF METEROLOGICAL STATION NETWORK
In 2019, the Department installed thirty five (35) Automatic Weather Stations (AWS’s) and one hundred and twenty (120) Rainfall Stations in Lusaka, Southern, Western, Central and Eastern Provinces with support from the World Food Programme (WFP) and the Southern African Science Service Centre for Climate Change and Adaptive Land management (SASSCAL). .
6.2.5 ON-GOING PROJECTS
During 2019, the Department continued working with various collaborating partners such as the: World Bank, who are supporting the Pilot Project for Climate Resilience (PPCR) and Transforming Landscapes for Resilience and Development (TRALARD) projects; UNDP- GCF, who are supporting Strengthening Climate Resilience of Agricultural Livelihoods in Agro-Ecological Regions, I and II in Zambia (SCRALAR); World Meteorological Organisation (WMO) who are supporting Data Rescue and Digitisation of all climate data records; and World Food Programme (WFP) (R9) who are supporting expansion and modernisation of meteorological observation infrastructure as well as Leeds University. The on-going project activities included: Expansion of meteorological observation infrastructure; Data Rescue and Digitisation of all climate data records on paper; Establishment of a Weather Modelling and Forecasting facility; Development of Sector and Location Tailored Climate Information for Agriculture; Development of a Climate Database Management System; and Support the development of SMS dissemination platform.
6.2.5.1 DEVELOPMENT OF A NUMERICAL WEATHER PREDICTION MODEL The Department developed products and services which are location and sector tailored by engaging the World Bank through the Pilot Project for Climate Resilience (PPCR) Project. This was in order to establish a fully operational Weather Forecasting and Research Model (WRF) and the Consortium for Small-Scale Modelling (COSMO) Local Area Models as well as to train Meteorologists/Forecasters in Numerical Weather Prediction. This will contribute to enhanced spatial and temporal resolution of forecasts
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Chapter 7: Department of Maritime and Inland Waterways
7.0 OVERVIEW
The Department of Maritime and Inland Waterways is responsible for the regulation, operations and policy formulation for maritime transport in Zambia and administers these by the Operationalisation of the Inland Waters Shipping Act, Cap 466 and the Provisional Merchant Shipping Act, Cap 468 of the Laws of Zambia to administer all maritime affairs in Zambia..
7.1 AREAS OF FOCUS
1) Navigation Safety Management; 2) Provision of Safe and Reliable Water Transport Services; 3) Marine Infrastructure Development; and 4) Policy Formulation and Development.
7.2 IMPLEMENTATION PROGRESS
7.2.1 NAVIGATION SAFETY MANAGEMENT
7.2.1.1 Vessel Inspection and Law Enforcement In the period under review, several activities were combined and undertaken concurrently, due to limited financial resources for the programme. These included Survey and Registration of Vessels, Sensitisation on Safety of Navigation, as well as Marine Law Enforcement. During the period under review, a total of 1, 127 vessels were inspected and K 217, 601.00 was realised as revenue.
7.2.1.2 Introduction of New Payment System for Maritime User Fees A new payment system was introduced requiring boat operators to deposit boat user-fees in banks in order to enhance revenue collection and minimise the handling of hard cash by officers. Operators were required to present their deposit slips to officers for the issuance of appropriate documents which included Government receipts.
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7.2.2 PROVISION OF SAFE AND RELIABLE WATER TRANSPORT SERVICES
7.2.2.1 Launch of 120 Passenger Vessels The maritime sub-sector received a boost when two 120-seater passenger vessels were delivered to Lake Bangweulu and Lake Mweru. The two watercrafts were launched upon the completion of the training programme for the boat captains and crew, and the vessels are now operational on both lakes.
7.2.2.2 Decentralisation of Maritime Services To ensure that maritime services are brought closer to the people, the Ministry transferred officers to Mpulungu, Samfya and Mweru. Further, the Ministry consulted the Ministry of Local Government on the engagement of Local Councils for Navigation Safety Management Programmes. Consultations were also held with the Ministry of Finance regarding the modalities of revenue collection and the retention percentage for the Councils.
7.2.3 MARINE INFRASTRUCTURE DEVELOPMENT
7.2.3.1 Construction of Landing Jetties The procurement of the two water buses in 2018 necessitated the need to construct new marine infrastructure such as quays and landing jetties, among others. The Zambia Army was engaged to construct two (2) and four (4) landing jetties on Lakes Bangweulu and Mweru respectively, to ease the boarding and disembarking of passengers.
7.2.3.2 Dredging of Landing Sites To ensure smooth landing of vessels, the Ministry worked closely with the Ministry of Housing and Infrastructure Development for regular deepening of landing sites on both Lakes.
7.2.4 POLICY FORMULATION AND DEVELOPMENT
7.2.4.1 Review of Legislation The Department initiated the revision of some sections in the Act. In the areas of document validity, user fees, inspection fees, licensing procedures, additional security features to accountable documents. This was done with the assistance of the International Maritime Organisation (IMO).
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Chapter 8: Department of Communications
8.0 OVERVIEW
The Department of Communications is responsible for the promotion and coordination of development and growth of the Telecommunications, Information Technology and Postal Services through formulation and administration of appropriate policies and strategies.
8.1 AREAS OF FOCUS
1) Coordinating the implementation of ICT and Postal Projects; 2) Promotion of Universal access to ICTs - Establishment of a Cyber City; and 3) Policy, Legal and Regulatory Development.
8.2 IMPLEMENTATION PROGRESS
8.2.1 COORDINATING THE IMPLEMENTATION OF ICT AND POSTAL PROJECTS
8.2.1.1 Construction of Phase II Communication Towers The project, which involves the construction of communications towers in unserved and underserved areas to take universal communication to all parts of the received disbursements amounting to USD 224, 095,811.30 by the end of 2019, leaving an outstanding balance of USD 56,668,790.25. By the end of 2019, a total of 772 sites had kicked off, out of which 721 were erected and 585 were functional.
8.2.1.2 Telecommunications Traffic Monitoring System The completion date of the Telecommunication Traffic Monitoring System (TTMS) moved to 31st December, 2019, to facilitate the finalisation on components of the project as well as correction of identified snags. The Project was estimated to be at 91% overall completion status.
The following were the status updates per individual modules of the TTMS: a) Revenue Assurance Module: 90%; b) Traffic Monitoring Module: 90%; 32
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c) Network (Quality of Service) Performance Module: 95%; d) Fraud Management Sub-System Installation and commissioning: 100%; e) Mobile Money Transaction Query Feature installation and commissioning: 30%; and f) Device Detection Unified Management Sub-system installation and commissioning: 100%. The Department in collaboration with ZICTA continued engagements with the Bank of Zambia to facilitate access to Mobile Money Systems (MMS) from Mobile Network Operators (MNOs) and ensure progress is made on this component. The total contractual amount for the project was USD 21,109,740.00 of which USD US$ 13,721,331.35 was paid by 2019. The balance remained at US$ 7,388,408.65.
8.2.2 PROMOTION OF UNIVERSAL ACCESS TO ICT’S -ESTABLISHMENT OF A CYBER CITY
Following the unsuccessful procurement of a consultant to conduct a feasibility study for the establishment of a cyber city, the Department was advised to re-initiate the process of selecting a consultant as the earlier process failed to produce a preferred consultant.
8.2.3 POLICY, LEGAL AND REGULATORY DEVELOPMENT
8.2.3.1 National Postal Policy The Department in collaboration with various stakeholders developed a draft National Postal Policy and roadmap.
8.2.3.2 National Information and Communication Technology Policy During the year under review, the Department commenced the process of reviewing the 2006 National ICT Policy and a Technical Working Group was appointed to undertake the review. A roadmap and terms of reference were developed. The review process was expected to be completed by 31st December, 2020.
8.2.3.3 Repeal and Amendment of ICT Bills The Ministry finalised the review of the Cyber Security and Cyber Crimes Bill; Data Protection Bill and the Electronic Transactions Bills and submitted them to the Ministry of Justice for finalisation.
8.2.3.4 Statutory Instrument: Postal Services Regulation 2019 The Ministry, finalised the development of the Statutory Instrument (SI) on amendment of the prescribed fees for the postal and courier sub sector. The amendment was necessitated by complaints raised by stakeholders in the sector that the fees were unsustainable. The SI was approved for publication by the Ministry of Justice.
8.2.3.5 Amendment of the Information and Communication Technology Act The Department commenced the process of amending the 2009 ICT Act and an initial planning meeting was held to review the proposed amendments.
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Chapter 9: Planning and Monitoring Department
9.0 OVERVIEW
The Planning and Monitoring Department’s role is to coordinate, formulate and review Ministerial policies, strategies and legislation in order to provide a framework for effective implementation of programmes and projects. It also monitors and evaluates the implementation of infrastructure development, transport, communication and meteorology programmes. Additionally, it acts as the Ministry’s liaison office for Parliamentary and Cabinet business.
9.1 AREAS OF FOCUS
1) Parliamentary Business; 2) Monitoring and Evaluation; 3) Ministerial Budget Preparation; and 4) Bilateral and Multilateral Cooperation.
9.2 IMPLEMENTATION PROGRESS
9.2.1 PARLIAMENTARY BUSINESS
9.2.1.1 Parliamentary Committee Reports In the year under review, the following Fifteen (15) Action Taken Reports were prepared and submitted to Parliamentary Committees, namely:
1) The Committee on Communications, Transport, Works and Supply 2) The Committee on Delegated Legislation; 3) The Committee on Government Assurances; 4) The Committee on Economic Affairs, Energy and Labour; 5) The Committee on National Security and Foreign Affairs; 6) The Public Accounts Committee;
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7) The Committee on Parastatals (Two Reports); 8) The Budget Committee; 9) The Committee on Legal Affairs, Human Rights and Governance; 10) The Committee on Media Information and Communication Technologies; 11) The Committee on Cabinet Affairs; 12) The Committee on Water Development and Tourism; 13) The Committee on Local Governance Chiefs and Traditional Affairs; and 14) The Committee on National Trade and Labour Matters.
9.2.2MONITORING AND EVALUATION
9.2.2.1 Preparation of Periodic Reports The Department coordinated the completion of the following Periodic Reports: 1) 2018 Economic Report - Coordinated the process of compilation, editing and finalisation of the report; 2) Ministerial Quarterly Reports for first, second and third quarters; 3) 2018 Annual Report 4) The 2019 Mid - Year Economic Report; 5) 2018 Annual Progress Report of the Seventh National Development Plan; 6) Presidential Quarterly Report; and 7) Two 7NDP Cluster Reports.
9.2.2.2 Monitoring and Evaluation Activities The Department monitored Ministerial programmes and projects, updated the Monitoring and Evaluation Matrix, and facilitated the preparation and submission of outstanding Annual Reports for Grant-Aided Institutions under the Ministry to Parliament.
9.2.3 BUDGET PREPARATION
The Department coordinated the preparation and completion of the: 1) 2020 Ministerial Budget; 2) Budget Policy Statement; and 3) Notes for the Budget Briefs.
9.2.4 BILATERAL AND MULTILATERAL COOPERATION
The Department coordinated the preparation of a status report on the Bilateral Air Services Agreement with Mauritius and facilitated the signing of a Bilateral Air Services Agreement
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Further, the Department coordinated and participated in several Southern African Development Community (SADC) meetings including: Railway Sub-Sectoral Committee; 38th Trade Negotiations Forum on trade in services; the Ministers responsible for Transport, Communications and Meteorology; and the vvalidation workshop of the Cross-Border Road Transport Regulators Forum (CBRT-RF).
Other meetings participated in were the: High – level midterm review of the Vienna Programme of Action for Landlocked Developing Countries, VPoA (2014 to 2024); COMESA, African Union and the United Nations.
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Chapter 10: Finance Department
10.0 OVERVIEW
The mandate for the Department of Finance is to source for funds and ensure prudent utilisation of financial and other resources for the smooth operations and performance of the Ministry. During the year under review, the department was able to provide financial oversight for the Ministry in the areas of budgeting, budget execution, financial planning and monitoring of internal controls. The department also provided quarterly budget status and reconciled revenue reports to management which have been used as an input in the production of quarterly reports, annual report as well as budget performance reports to the Ministry and National Financial reports to Ministry of Finance.
10.1 AREAS OF FOCUS
1) Monitoring and Reconciliation of Non-Tax Revenue; 2) Expenditure Control and Reporting; 3) Management of Below the Line Accounts; and 4) Audit Query Resolution.
10.2 IMPLEMENTATION PROGRESS
10.2.1 Monitoring the Collection of Non-Tax Revenue The Department undertook two monitoring and reconciliation visits during the year. The Department also reconciled revenue from the two main revenue streams of road and telecommunication licensing for the period January to December 2019. Consolidated returns were prepared and submitted to the Ministry of Finance.
10.2.2 Expenditure Control and Reporting The Department prepared the Ministry’s revenue (Statement B) and expenditure (Statement C) Financial Statements for the 2018 Financial Year which were unqualified by the Office of the Auditor General. Budget execution controls to ensure credibility and value for money were instituted. The Department undertook four tours to monitor expenditure in Grant-Aided Institutions under the Ministry to ensure adherence to provisions of the 2018 Public Finance Act and corrective actions instituted on the spot. The Department also provided support to various departments and provided quarterly budget status reports to guide in expenditure control and decision making.
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10.2.3 Management Of Below the Line Accounts The Department facilitated payments and recoveries of all salary and tuition advances made to members of staff in the year under review. The Department further facilitated the retirement of various imprest advanced to members of staff as well as received activity reports for tours undertaken in the Ministry during the 2019 Financial Year.
10.2.4 AUDIT QUERY RESOLUTION The external audits on expenditure and revenue for the year ending December 2018 were concluded and the Ministry was not cited in the Auditor General’s report for the financial year ended 2018. The Department also resolved most of the issues raised in the first and second quarters of the Internal Audit Reports. Further, the Department spearheaded the resolutions of old and current audits for Grant - Aided Institutions under the Ministry.
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Chapter 11: Transport and Communications Economic Report
11.0 TRANSPORT AND COMMUNICATIONS
During the review period, the performance of the transport sector was mixed. The rail transport, road transport, maritime and inland waterways subsectors recorded a positive performance in both passenger and cargo movement. Similarly, the Information and Communication Technology sub-sector improved in the review period compared to the corresponding period in 2018. the aviation subsector recorded a decline in passenger movement.
11.1 ROAD TRANSPORT
11.1.2 Number of Road Traffic Accidents. The Number of road traffic accidents and fatalities reduced in the years 2018 to 2019. The minimal reduction is attributed to interventions such as education and sensitisation programmes on road safety, increased intensity in road traffic law enforcement such as random highway joint patrols, fast track courts, towing of broken-down vehicles and installation of GPS on PSV buses to reduce the risk of over speeding on long distance routes.
Table 2: Road Traffic Crashes, Fatalities and Injuries from 2012 to 2019
Year No. of Zambia No. of No. of No. of No. of No. of No. of Registered Population Accidents Fatalities severe Accidents fatalities fatalities Motor injuries per per per 100,000 Vehicles 10,000 10,000 Population Vehicles Vehicles
2012 452,574 14,300,000 28,247 2,360 5,790 624 52 17 2013 534,532 14,800,000 29,118 1,851 5,489 545 35 13 2014 605,635 15,200,000 32,392 1,858 5,371 535 31 12 2015 663,529 15,500,000 33,672 2,113 6,236 507 32 14 2016 696,474 16,040,000 32,350 2,206 6,432 464 31.7 13.8 2017 737,671 16,405,229 30,163 1,989 5,500 409 27 12 2018 782,136 16,887,720 30,652 1,817 5,266 392 23 11 2019 822,882 17,381,168 30,648 1,746 5,012 372 21 10 Source: Road Transport and Safety Agency
11.1.3 Passengers’ Transported by Road The number of passengers transported by public transport increased from 57,230,580 in the year 2018 to 81,864,720 in the year 2019. The increase is attributed to some long-distance operators that increased the fleet of buses, opening of new routes and the upward adjustments of the fuel pump price that subsequently increased the cost of travel for private motorists, making it cheaper to use public transport. Further, there was a reduction in pirated transportation following an increase in enforcement activities.
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Table 2: Passengers Transported by Road 2013-2019
Passengers Transported Year 2013 2014 2015 2016 2017 2018 2019 68,294,420 87,526,080 99,396,480 82,835,952 90,476,640 57,230,580 81,864,720 Number of Passengers Source: Road Transport and Safety Agency
11.1.4 Number of New Vehicles Registered The total number of motor vehicles registered in 2019 was 40,746 a decline from 44,465 registered in 2018.The reduction was due to the fact that light passenger vehicles, light load vehicles, heavy load vehicles and heavy passenger vehicles all recorded a decline as indicated in the table below.
Table 3: Motor Vehicles Registered by year from 2013 to 2019
Vehicle type Motor Vehicle Registration 2013 2014 2015 2016 2017 2018 2019 Light Passenger 34,097 51,544 38,956 19,784 26,867 26,457 24,410 Vehicle Light Load Vehicle 39,605 6,780 5,819 4,461 4,785 4,823 3,392 Heavy Load Vehicle 2,944 7,106 7,373 4,539 5,856 7,850 6,975 Heavy Passenger 1,081 929 648 512 735 850 840 Vehicle Motor Cycle 2,311 3,000 2,632 2,524 1,860 2,151 2,557 Tri-Cycle 361 37 46 73 84 90 92 Agriculture Tractor 1,023 387 336 278 199 169 222 Agriculture Trailer 178 12 8 4 13 18 19 Trailers 339 725 756 769 798 2,057 2,239 Total 81,939 70,520 56,574 32,944 41,197 44,465 40,746 Source: Road Transport and Safety Agency
11.1.5 Volume of Cargo in Kilogrammes Transported by Road The volume of cargo transported in 2019 increased by 13.3% to 42,639,716,411 kgs from 37,592,868,452 kgs recorded in 2018. This performance was on account of an increase in cargo transported through the Livingstone weigh bridge and resumption of operations at Kafulafuta weigh bridge. However, cargo transported through Kazungula and Mpika weigh bridges declined by 28.7 percent and 16.5 percent, respectively. The decline was due to the ongoing construction works of Kazungula Bridge and Mpika – Nakonde Road. Further, Solwezi has been closed for rehabilitation since 2014.
Table 4: Volume of Cargo Transported by Road from 2018 to 2019
CARGO TRANSPORTED WHICH WENT THROUGH RDA WEIGH BRIDGES(KGs) STATION 2017 (in Kilograms) 2018 (in Kilograms) 2019 (in Kilograms) Livingstone 4,876,589,852.00 4,651,766,500.00 4,721,561,589.00 Kazungula 2,166,065,704.00 2,087,139,200.00 1,488,715,770.00 Mpika 5,702,291,565.00 6,232,983,500.00 5,203,010,800.00 Kafulafuta CLOSED CLOSED 6,605,449,000.00
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Solwezi CLOSED CLOSED CLOSED Kafue 8,589,653,827.50 8,646,508,575.00 8,646,508,575.00 Kapiri 15,907,713,129.70 15,974,470,677.00 15,974,470,677.00 TOTALS 37,242,314,078.20 37,592,868,452.00 42,639,716,411.00 Source: Road Transport and Safety Agency
11.1.6 RTSA Prospects for 2020 The Road Transport and Safety Agency:
- Anticipates a reduction in the number of road traffic crashes per 100,000 vehicle population and fatalities per 10,000 human population due to increased road traffic law enforcement as well as an increase in education and publicity awareness campaigns slated for 2020.
- Envisions devolution of some services to identified Local Authorities to increase access to its services and improve service delivery.
- Has planned to open new stations in Serenje, Petauke and Mukambo Border Post.
- Has developed a system for road tax online payments and other related transactions to be launched in January 2020. Plans are underway to roll-out cashless transactions to all RTSA stations.
11.1.2 AIR TRANSPORT
11.1.2.1 Passenger and Cargo Movements The general passenger movement for the year ended 31st December, 2019 for all four airports was 1,808,247. Comparatively, the corresponding period in the year 2018 recorded 1,931,827 for passenger movements at all four airports indicating a decline of 123,580 or 6.4%. The decrease in passenger numbers is attributed to Government austerity measures on foreign travel that significantly reduced the number of paying international passengers and an 8-day strike by South African Airways employees in November that led to cancellation of flights over the period.
Table 5: Passenger Movement from 2017 to 2019
2017 2018 2019 Airport Domestic Int’l Total Domestic Int’l Total Domestic Int’l Total KKIA 172,524 1,051,639 1,224,163 207,877 1,147,823 1,355,700 191,534 1,098,267 1,289,801 SMKIA 64,343 192,606 256,949 87,276 202,131 289,407 81,653 156,950 238,603 HMNIA 42,469 197,406 239,875 50, 617 206,040 256,657 46,428 203,872 250,300 Mfuwe 25,779 1,434 27,213 28,709 1,354 30,063 28,075 1,468 29,543 Total 305,115 1,443,085 1,748,200 374,479 1,557,348 1,931,827 347,690 1,460,557 1,808,247 Source: Zambia Airports Corporation Limited
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11.1.2.2 Cargo and Mail During the period under review, the four international airports recorded a total of 22, 046,416.35 kilogrammes of Cargo and Mail compared to 20, 860, 065.20 kilogrammes recorded during the same period of 2018 giving a 5.69% growth. The increase is attributed to the continued rise in online sales and the re-launch of Martinair Cargo on 4th September, 2019, with one flight into KKIA per week.
Table 6: Consolidated Cargo & Mail Statistics – 2019 vs 2018
Year 2018 2019 Variance Volume (in Kg) 20,860,065.20 22,046,416.35 1,186,351.15 Source: Zambia Airports Corporation Limited
11.1.2.3 Aircraft Movements Aircraft movements for the year ended 31st December, 2019 for all four airports was 55, 259. Comparatively, the corresponding period in the year 2018 recorded 56, 595 for aircraft movements at all four airports indicating a decline of 1, 336 or 2.36%. The decline is attributed to reduced flight frequency by Emirates Airlines from 7 days per week to 5 days due to works being carried out at Dubai International Airport and the Ethiopian Airlines suspension of midnight flights at KKIA due to reduced loads in the 2nd and 3rd quarters of 2019. The carrier resumed midnight flights in November 2019. In addition, Ethiopian Airlines reduced outbound flights from SMKIA.
Table 7: Consolidated Aircraft Movements – 2019 vs 2018
Year 2018 2019 Variance Movements (International & 56,595 55,259 (1,336) Domestic) Source: Zambia Airports Corporation Limited
11.1.2.3 ZACL General Outlook - 2020 The general economic outlook for the Zambia Airports Corporation Limited in 2020 is stable with minimal anticipated revenue growth of 12% spread across the three revenue generating functions of the Corporation representing an expected budgeted total revenue of ZMW 718,209,670. This is in line with anticipated revenue constraints emanating from: a. Decreased passenger numbers due to increases in ticket prices which will be precipitated by the depreciation of the Zambian Kwacha from 2019 closing rates and inflation which closed at 11.70% as at December 2019. b. Anticipated reduction in fuel throughput revenues due to 21.39% increment in Jet A1 fuel effected in December 2019. c. Globally, cargo yields and revenues are expected to decline for the third year in a row. (IATA. Press release 69) Significant investment has been made over previous periods in non-aeronautical infrastructure projects which may be operationalised in 2020. However, revenue streams from these investments will only crystallise in the subsequent medium term (2021 – 2024). These projects are:
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1. 86 bed capacity hotels at the Kenneth Kaunda International Airport new airport project 2. Integrated cargo handling facility at the Kenneth Kaunda International Airport; and 3. Commercial complex and shopping mall developed under the Kenneth Kaunda International Airport new airport project.
11.1.3 RAILWAY TRANSPORT
11.1.3.1 Passengers Transported by Rail The period under review recorded an increase of 0.4% on total passengers transported by rail to 1,205,303 from 1,200,130 in the year 2018, due to growth recorded by the Tanzania - Zambia Railways (TAZARA). TAZARA transported 935,616 passengers representing 1.8 percent increase from 918,623 recorded in 2018. The ridership improved in the period under review due to operational increase, high ridership demand and frequent repair of some coaches.
Meanwhile, Zambia Railways Limited (ZRL) recorded a decline of 4% percent to 269,687 passengers from 282,081 recorded in the year 2017, mainly due to the fact that some coaches were being repaired in the first and second quarters of the period under review.
Table 8: Number of Passengers Transported by Rail, 2017-2019
Company 2017 2018 2019 % Change
ZRL 255,727 282,081 269,687 -4% TAZARA 511,259 918,623 935,616 1.84% Total 766,986 1,200,130 1,205,303 0.4% Source: Zambia Railways and TAZARA
11.1.3.2 Cargo Transported by Rail Cargo transported by rail increased by 5.2% to 1,128,027 Mt in 2019 from 1,068,255 Mt recorded in 2018, largely due to growth recorded by ZRL. The 23.9% growth recorded by ZRL was due to the response by the market to Statutory Instrument No. 7 of 2018 which increased traffic of commodities such as Sulphur, Coal, Copper cathodes and the execution of capacity building strategies such as the acquisition of rolling stock equipment.
On the other hand, TAZARA recorded a decline of 18.7% to 166,144 Mt from 197,344 Mt registered in 2018, mainly due to inadequate working capital for timely track and rolling stock rehabilitation and maintenance and low reliability and availability of locomotives and wagons to meet traffic demand.
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Table 9: Cargo Transported by Rail (Mt): 2016- 2019
Company 2017 2018 2019 % Change
ZRL 702,917 870,911 961,883 9.4 TAZARA 215,490 197,344 166,144 -18.7 Total 918,407 1,068,255 1,128,027 5.2 Source: TAZARA and ZRL
11.1.3.3 ZRL Future Prospects ZRL projected to continue implementing the SI in 2020 and move 1,273,500 tonnes of cargo in 2020. The main strategic objective to achieving these ambitious targets would increase commodities in the Statutory Instrument number 7 of 2018.
Some of the company’s plans and areas of focus for the fiscal year 2020 are as follows:
. To finalise and actualise funding for the recapitalisation of ZRL;
. Continue improving corridor collaborations with neighbouring railway administrations through the Southern African Railway Association (SARA) which is a Southern African Development Community (SADC) organ;
. Continue with the close and continuous collaboration with regional railway organisations for the smooth running of over border traffic through improvement of transit times and wagon turnaround;
. Fully operationalise and improve the open access agreement with TAZARA on the Dar Corridor;
. Forge strategic partnerships with various stakeholders on the provision of additional rolling stock particularly wagons;
. Finalise and actualise the best use and commercialisation of the ZRL bareland; . Pursue the following new business prospects in order to increase passenger performance; . Use of coaches and station facilities as tools for advertising and leasing out available advertising space;
. Continue with the creation of concessional packages for churches and students during school closing and opening periods; and
. The company is looking for investment in appropriate rolling stock for passenger train operations.
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11.1.3.4 TAZARA Efforts to Improve Performance during the next Financial Year, 2020 During the next financial year, the Authority expects to: - Improve performance through rehabilitation of rolling stock, hire of locomotives and increased track and infrastructure maintenance;
- Receive traction motors and other spares already procured in the 2019 financial year to rehabilitate a total of seven (7) mainline locomotives and 150 wagons; - Enhance tract rehabilitation so as to improve speeds and reduce accidents; - That the Zambian government shall also honour the pledge of funding the procurement of other traction motors and spares for the remaining locomotives and wagons; - In the short-term, lease two (2)locomotives and negotiate for three more to make five in the first phase and later sign a contract to reach ten (10) hired locomotives; - Continue engaging in other initiatives such as PPPs, Open Access and lease of idle land to increase revenue; - Continue with marketing efforts to increase freight offering and will take advantage of opportunities in moving fuel which truckers from Zambia have offered to TAZARA due to new loading regulations in Tanzania which reduces the tonnage moved by trucks; and - Work on operationalisation of the Access Agreement with Zambia Railways Limited (ZRL) to improve capacity and serve more customers. It is expected that as the Statutory Instrument No.7 monitoring increases, more traffic will be offered to TAZARA.
11.1.3.5 Assumptions to Achieve Projected Performance TAZARA has based its projected performance in the year January – December 2020 on the following economic and general assumptions: a. Timely acquisition of the remaining US$4.8 million from the Zambian Government after the Tanzanian Government paid their part for procurement of Traction motors and other spare parts for repair/rehabilitation of locomotives and wagons in the medium term;
b. Timely receipt of procured Traction Motors for repair of locomotives;
c. Improved availability of locomotives to 80% and reliability from 6,015 Km to 15,000 km per month;
d. Improved average locomotive utilisation from 250 km per day to 500 km per day;
e. Improvement of track infrastructure by working on speed restricted spots to remain with 8 spots covering 25 Km from the current 14 spots covering 55.5 Km;
f. Expected inflation rate of not more than 9% in both Tanzania and Zambia; and 45
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g. Average Locomotive fuel (Diesel) Price of US$1.00 per litre for 22,000 litres fuel usage per full load train from New Kapiri Mposhi to Dar es Salaam.
11.1.4 MARITIME AND INLAND WATERWAYS
In 2019, the number of passengers transported by water through Mpulungu Port Harbour increased by 14.5% percent to 1,494 from 1,277 passengers recorded in 2018. The increase is attributed to transit passengers mainly from the DR Congo and Burundi going either to East Africa or Southern Africa. However, trade related passenger traffic has reduced due to the SS Liemba being under maintenance. During the period under review, the volume of cargo handled at the Harbour increased by 8.8 percent to 181,747.47 Mt from 165,590.84 recorded in 2018. The increase is attributed to: Lafarge Clinker exports increase from an average 5,000 MT to 10,000 MT per month; and Expansion of the Burundi Cement Plant demanding more Clinker Imports from Zambia.
Table 10: Mpulungu Passenger and Cargo Statistics, 2013 – 2017
% Category 2017 2018 2019 Change Passengers (Number) Total Passengers 1,258 1,277 1,494 14.5% Cargo (Mt) Zambian Exports 172,130.19 163,988.14 179,365.40 8.5% Transit Exports 595.33 1,473.36 1,930.14 23.6% Transit Imports 454.63 129.34 451.93 71.3% Total Cargo 173,180.15 165,590.84 181,747.47 8.8% Source: Mpulungu Harbour Corporation
Table 11: Products Contribution to Yearly Throughput
Year 2016 2017 2018 2019 % Change Sugar 54,210.85 62,363.10 64,212.85 50,050 -22% Maize 1,015.98 28,476.11 9,462.06 0 -100% Cement 35,276.70 39,019.90 25,034.63 15,005.4 -40 Clinker 15,424.00 40,018.92 63,482.00 109,870 42 Explosives 355.91 369.47 1,044.43 609.6 -41% Steel 390 814.69 507.75 187.8 -63 Whafarge 2,018.31 2,147.96 1,847.12 1,584.4 -14.2 Source: Mpulungu Harbour Corporation
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11.1.5 INFORMATION AND COMMUNICATIONS
11.1.5.1 Mobile Telephone Subscription In 2019, the total number of mobile telephone subscriptions increased by 11.3 percent to reach 17.2 million active subscriptions recorded at the end of 2019 relative to 15.5 million active subscriptions recorded at the end of 2018. The growth in mobile telephone subscriptions represents an improvement in the mobile penetration rate, from 91.6 percent recorded in 2018 to 99.1 percent in 2019. This performance is mainly explained by increased investments in telecommunication coverage infrastructure, heightened competition among the service providers and the increased adoption of machine to machine (M2M) services such as point of sale machines and other data-enabled devices that utilise sim cards.
MTN Zambia Limited continued to dominate with the largest market share at 43.7%, followed by Airtel Zambia Limited at 33.9% while ZAMTEL maintained the least market share at 22.4%, up from 16.5% in 2018. ZAMTEL continued to record notable improvements in market share reflective of an evolving positive participation of the company in the competition landscape for mobile telecommunication services as well as its increased investments in mobile telecommunication network coverage infrastructure.
Table 12: Active Mobile Subscriptions and Market Share 2018 to 2019
% Market Operator 2018 2019 % Change Share Airtel Zambia 5,897,968 5,836,926 -1.0 33.9% MTN Zambia 7,016,393 7,519,397 7.2 43.7% Zamtel 2,555,909 3,864,284 51.2 22.4% Total subscriptions 15,470,270 17,220,607 11.3 100% Mobile Penetration Rate 91.6 99.1 7.5 Source: Zambia Information and Communications Technology Authority
11.1.5.2 Mobile Traffic Volume In 2019, the total domestic incoming calls increased by 5.2 percent to 2.1 billion minutes from 2.0 billion minutes recorded in 2018. Similarly, outgoing calls increased by 14.4 percent to 16.0 billion minutes from 14.0 billion minutes in 2018. The increases in domestic traffic could partly be explained by heighted volume based bundled price offers on the market that have received wide adoption as well as the increased number of mobile subscriptions.
Further, International incoming traffic declined by 23.5 percent to 28.6 million minutes from 37.4 million minutes recorded in 2018. At the same time, International Outgoing traffic declined by 25.2 percent to 29.8 million minutes from 39.9 million minutes. The decline was partly attributed to the increased adoption of internet-based applications like WhatsApp, Facetime, Skype and Viber to make international voice calls. In addition, adverse practices such as SIM boxing, a consequence of least cost routing could also explain the decline in international incoming traffic.
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Table 13: Mobile Voice Call Traffic Volumes
% % Incoming Calls Outgoing Calls Change Change 2018 2019 2018 2019 Domestic 2,031,404,096 2,137,474,108 5.2 13,975,890,482 15,986,451,321 14.4 International 37,414,374 28,606,271 -23.5 39,891,483 29,844,340 -25.2 Source: Zambia Information and Communications Technology Authority
11.1.5.3 Internet Service Provision At the end of 2019, the total number of active internet subscriptions in the country increased to 9.2 million subscriptions from 8.3 million subscriptions reported in 2018, reflecting an increase in the internet penetration rate to 52.8 from 49.1 percent registered in 2018 (see Table 14). This improvement was mainly attributed to higher investments among service providers leading to extensive coverage of 3G/4G networks and the increased adoption of emerging technologies such as 3G and 4G/LTE. Further, the increased roll out of networked devices such as point of sale machines has in part influenced the growth of mobile internet uptake.
Table 14: Internet Subscriptions and Penetration Rates 2017 - 2019
Internet Usage 2017 2018 2019 % Change Fixed Internet Subscriptions 36,121 44,711 61,673 37.9% Fixed Internet subscriptions Per 100 Inhabitants 0.20 0.30 0.35 0.05 Mobile Internet Subscriptions– 3G and 4G/LTE 7,723,855 8,250,265 9,121,916 10.6% Mobile Internet Subscriptions– Per 100 47% 48.9% 52.48% 3.6% Inhabitants Internet Subscriptions– – Fixed & Mobile 7,759,976 8,294,976 9,183,589 10.7% Internet Subscriptions Internet Subscriptions Per 100 Inhabitants 47.3% 49.1% 52.8% 3.7% Source: Zambia Information and Communications Technology Authority
11.1.5.4 Communication Tower Installation The total number of communication towers in Zambia increased from 2,496 reported in 2018 to 3,248 recorded at the end of 2019, representing an increase of 30.1 percent. ZAMTEL recorded the largest growth of 123.1 percent in the number of communication towers owned mainly as a result of Government’s policy to increase coverage to unserved and underserved areas (see Table 15).
Table 15: Ownership of Tower Infrastructure
Operator 2017 2018 2019 % Change IHS 1,713 1,707 1,788 4.7% ZICTA 204 229 229 0.0% ZAMTEL 493 545 1,216 123.1% AIRTEL 16 15 15 0.0% TOTAL 2,426 2,496 3,248 30.1% Source: Zambia information and Communication Technology Authority 48
MTC Annual Report 2019
11.1.5.5 Telecommunication Sites At the end of 2019, a total of 10,303 telecommunication sites were operational in the country representing an increase of 35.5 percent from 7,605 telecommunication sites that were operational at the end of 2018. The largest proportion of the sites in 2019 continued to be 2G sites accounting for 49.3 percent of the total followed by 3G sites at 28.2 percent of the combined total number of sites. Only 22.5 percent of the telecommunication sites were 4G/LTE sites. However, the proportion of 4G/LTE sites has continued to increase overtime, from 1,466 sites in 2018 to 2,316 sites in 2019 representing the largest improvement of 58 percent.
Table 16: Distribution of Telecommunication Sites
2,017 2,018 2,019 % Change 2G 2,990 3,412 5,081 48.9% 3G 2,146 2,727 2,906 6.6% 4G/LTE 1,057 1,466 2,316 58.0% Total 6,193 7,605 10,303 35.5% Source: Zambia information and Communication Technology Authority
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Chapter 12: Management of Ministerial Programmes
Implementation of the programmes in the Ministry was under the direct supervision of the Permanent Secretary. To ensure efficiency in the implementation of programmes/activities, each Department is overseen by a Director who is responsible to ensure that programmes and activities are executed according to the mandated portfolio functions. The Permanent Secretary, Directors as well as the Assistant Directors constitute the Senior Management Team.
To ensure all-inclusive implementation of programmes/activities, the Ministry undertook some of the functions under its mandate through Statutory Agencies.
Chapter 13: Challenges
During the year under review, the Ministry had several challenges outlined as follows:
13.1 Inadequate release of funds Erratic release of budgeted funds resulted in prolonged execution of programmes and activities.
13.2 Failure to procure projects under the Public Private Partnership (PPP) framework The Ministry experienced some challenges in attracting PPP investors in the railway sub- sector due to the long-term investment outlook for the sub-sector.
13.3 Inappropriate Staffing Levels The Ministry operated with limited professional staff as some positions were still frozen, especially in the Maritime Department.
13.4 Institutional and Human Resource Capacity Lack of adequate technical capacity contributed to lower than expected performance in some programmes/activities. There was a notable increase in the number of programmes/activities that required capacity building for their effective implementation.
13.5 Prolonged Lead-time for Procurement of Goods and Services Stringent procedures hampered implementation of programmes and caused unnecessary delays as well as increased the cost of doing business.
Chapter 14: Recommendations
The following recommendations were made:
14: 1 Budgetary Releases The Ministry of Finance should ensure that resources for Capital Projects are disbursed consistently to avoid delays in project completion and increment in the cost of doing business.
14:3 Restructure the Ministry
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The Ministry structure should be reviewed in line with the Strategic Plan.
14:4 Capacity Building Capacity building activities need to be enhanced.
Chapter 15: Conclusion The implementation of the Ministry’s programmes and activities in 2019 were fairly on target, despite the challenges that were encountered. The Ministry continued to implement programmes, formulate and administer policies in communications, transport and meteorological sectors in accordance with the National Development Plans.
Appendix I: Human Resource
Table 1: Staffing
No. Department Establishment Existing Variance/Vacancy Excess Staff (Staff assignment) (Filled) 1. Human Resources and 130 103 7 59 Administration (Includes Accts/ Audit/PSU/Registry and GCF) 2. Maritime and Inland 20 18 2 0 Water ways 3. Meteorology 82 78 4 0 4. Transport 7 7 0 6 5. Communications 12 12 0 4 6. Planning and 9 9 0 2 Monitoring 260 227 13 71 Total Note: Staffing levels are according to the payroll staff assignment.
Table 2: Leave Management
No. Department No. of Officers Leave undertaken scheduled to (Officers who proceeded proceed on on Leave in 2018) leave in 2018 1. Human Resources and Administration 27 8 2. Purchasing and Supplies Unit 6 2 3. Department of Finance 13 1 4. Audit Unit 4 0 5. Planning and Monitoring 19 3 6. Communications Department 0 0 7. Transport Department 14 1 8. Meteorology Department 31 5
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9. Maritime and Inland Waterways 19 2 Department
Table 3: Study Leave
Name Position Course Gende Dept Amount Sponso Status r r Kenneth Meteorologist Master of M Meteorologi 17,250 MTC Not Sinachkup Science in st Approved o Agrometeorology / Hydrometeorolog y Sylvia Principal ICT MA ICT and F Comms 20,000 MTC Approved Mulenga Officer Policy Memorine Head Ma Transport F HRA 2,000 MTC Approved H Banda Procurement and Logistics (Extension) Peter Registry Diploma in M Planning 5,600 MTC Approved Simwanza Clerk Records Management Fidelis Senior Ma M Audit 72,000 MTC Rejected Tembo Internal Entrepreneurship by Auditor and Business Committee Management Meddiah Human Master’s in F HRA 30,550 MTC Officer Munsaka Resource Human Resource Deferred Management Enrolmen Officer t Victor Assistant MA Economic M Finance 40,000 MTC Approved Mwanza Accountant Policy Management Marvin Registry Bachelor of Arts M HRA 13,000 MTC Approved Chama Clerk with Library And Information Science Bathsheba Meteorologic MSC. in Applied F MET Scholarship WMO Approved Musonda al Assistant Meteorology Sydney Senior Master of Public M DOC Scholarship JICA Approved Tembo Planner Management and Policy Analysis Jarius Registry Degree in M MET 13,000 MTC Approved Kazila Clerk Library and Information Science Total 213,400
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Appendix III: Meteorology Table 1: 2019/2020 Seasonal Forecast in three months averages against the average for the corresponding period.
Period Country Forecast 1981 – 2010 Normal (Average) October Normal to Above normal for regions I & II November Normal to below normal for regions III December
November Above Normal to normal for region I December Normal to Above normal for region II January Normal to Below normal for regions III
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December Normal to Above normal for region I January Above Normal to normal for regions II and III February
January Above Normal to normal for region III February Normal to Above normal for region II March Normal to Below normal for regions I
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For more information please visit at www.mtc.gov.zm or at the address below:
MINISTRY OF TRANSPORT AND COMMUNICATIONS Independence Avenue P.O. Box 50065 Lusaka, Zambia, Tel: +260-211-252 475
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