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