In this podcast, we discuss how effective governance can help nations solve the debt overhang problem.
COP 27 and the Future of Climate Finance. In this podcast, we discuss the future of climate finance in the context of the COP27.
How to register a business in Zambia. In this podcasts, we hear different voices including one from a regulator on how to register a business in Zambia.
Transcript: How effective governance can help nations solve the debt overhang problem
HOW EFFECTIVE GOVERNANCE CAN HELP NATIONS SOLVE THE DEBT OVERHANG PROBLEM
PRESENTER: Welcome to the FourthIR research podcast. A place where we take problems bothering people nationally and globally and discuss how research can help address those challenges. Today on the podcast I have FourthIR CEO and Researcher; Byrne Kaulu, who discusses how effective governance can help nations solve the debt overhang problem. Our discussion will be in the context of Zambia. Byrne, for those who might not know, tell us abit about Zambia.
BYRNE: Zambia is a landlocked country in Sub-sahara Africa with an area of 752,614 km² making it the 39th largest country in the world. The country's central statistics office started conducting it's national census in the third quarter of 2022. This activity is done every ten years and so Zambia's population is estimated to be just under 19million prior to the census.
PRESENTER: Despite being a mineral rich nation, debt remains a problem.
BYRNE: The problems began as early as the 1970s, a few years after the country got independence from Britain in 1964. Prices of copper, which is Zambia's major export and income earner started falling while oil prices rose. The government of Zambia borrowed mostly from western financial institutions to finance operations. By the 1980s the country was in a debt overhang problem.
PRESENTER: What is a debt overhang problem and did Zambia default?
BYRNE: The debt overhang problem occurs when a nation's debt is so large that it can not take on additional debt to finance projects. It occurs because much of a nation's earnings go to servicing it's current debt obligations with nothing left for investment thereby foregoing potential growth opportunities.
PRESENTER: You are listening to the FourthIR Research Podcast. A place where we take problems bothering people nationally and globally and discuss how research can help address those challenges.
Today on the podcast I have FourthIR CEO and Researcher; Byrne Kaulu, who discusses how effective governance can help nations solve the debt overhang problem. Let's take a break and when we come back, we answer the question, did Zambia get out of the debt overhang problem. If so, how?
SHORT SONG, INTERLUDE
PRESENTER: Byrne, did Zambia get out of the debt overhang problem and if so, how?
BYRNE: Begining 1983, IMF lent money to Zambia to help it pay back it's loans. Some pundits believe this was only a way to bail out the western banks who had recklessly lent money to countries like Zambia rather than to help the Zambia.
PRESENTER: What did IMF and World Bank want in return from Zambia for the seeming bailout?
BYRNE: IMF and World Bank loans come with terms and conditions called conditionalities. These conditionalities or structural adjustment programs (SAPS) have often compelled nations to privatise national assets, relax international trade restrictions and cut subsidies among others. Zambia was placed on a list of countries called Highly Indebted Poor Countries (HIPC). Later, on meeting the conditionalities, also called the HIPC completion point, a country would be removed from the HIPC list and some of it's debt forgiven.
PRESENTER: Did Zambia reach the HIPC completion point?
BYRNE: Zambia reached the HIPC completion point in 2005 with reports suggesting the around $4billion of it's debt was forgiven.
PRESENTER: What is appalling though is that debt has been on the increase in recent decades. Why Byrne?
BYRNE: Research shows that Zambia's debt-to-GDP ratio has increased astronomically from about 22 percent in 2011 to 56 percent in 2018 and that at a debt to GDP ratio of 40 percent the positive effect of debt on economic growth becomes negative of Zambia.
PRESENTER: What are some of the ways Debt to GDP ratio can be kept low and optimal?
BYRNE: Several. But one major one is governance.
PRESENTER: Tell me more.
BYRNE: Just like private companies, every country needs strong controls around debt accumulation. It is important that objective government agencies approve the undertaking of projects and loans related to those projects. There must be appropriate segregation of duties with respect to project activities and someone must have full operational responsibility for project outcomes of projects. Adequate responsible decentralisation is needed to ensure effective delivery but responsibility and accountability through effective internal and external audit is critical so that national leadership makes effective control decisions.
Transcript: COP27 and the future of climate finance
COP27 AND THE FUTURE OF CLIMATE FINANCE
Interviewer: Welcome to the FourthIR research podcast. A place where we take problems bothering people nationally and globally and discuss how research can help address those challenges. Climate change has gained renewed interest in recent years due to its impact on food security and the wellbeing of both the rich and poor. Today, Byrne Kaulu and I discuss the future of climate finance in the context of the COP27. Byrne, for those who might not know, tell us a bit the COP27.
Byrne Kaulu: COP stands for Conference of the Parties. It is a supreme body of the United Nations Framework Convention on Climate Change (UNFCCC). COP however is mostly mentioned in public with reference to an annual conference attended by the countries that signed the (UNFCCC) treaty – a treaty that came into force in 1994 to help mitigate effects of climate change. The first COP was held in 1995 in Berlin. This annual event usually takes place in late November/early December and was only postponed for 2020 due to the COVID-19 pandemic. The 2022 meeting is therefore the 27th conference hence the name COP27.
Interviewer: Interesting history Byrne. What are the objectives of the COP summits?
Delegates from most nations on Earth gather annually at the COP to discuss global goals for combating climate change, submit their respective nations' plans for contributing to such goals, and report on respective progress. All Countries that are Parties to the Convention are represented. Overall, the COP summit:
1. Reviews the implementation of the Convention and any other legal instruments that the COP adopts and
2. takes decisions necessary to promote the effective implementation of the Convention, including institutional and administrative arrangements
Interviewer: The COP27 takes place in Sharm el-Sheikh, Egypt, who leads the COP summits?
The Presidency of the Conference of the Parties - COP rotates among the five UN recognized regions - that is, Africa, Asia, Latin America and the Caribbean, Central and Eastern Europe and Western Europe and Others. The venue of the COP tends to shift among these regions.
Interviewer: Are there any specific objectives of the COP27 summit?
Byrne: The COP27 conference in Sharm el-Sheikh, Egypt takes place against a backdrop of extreme worldwide weather and an energy crisis. Scientific data reiterates that the world is not doing enough to reduce carbon emissions and protect our planet's future. This is affecting energy, infrastructure, transport and nature just to mention a few. The COP27 conference will therefore target:
1. Mitigation: that is ask, how are countries reducing their emissions?
2. Adaptation: that is ask, how are countries going to adapt and help others do the same?
3. Climate Finance: this is the elephant that never leaves the negotiation room
Interviewer: You’re listening to the FourthIR research podcast. A place where we take problems bothering people nationally and globally and discuss how research can help address those challenges. Today on the podcast, Byrne Kaulu and I discuss the future of climate finance in the context of the COP27. Let’s take a break and when we come back, we discuss what climate finance options are available for nations.
Interviewer: Byrne, firstly, what is climate finance?
Byrne: Climate finance is a wide topic. But in the context of the UNFCCC it refers to local, national or transnational financing
—drawn from public, private and alternative sources of financing
—that seeks to support mitigation and adaptation actions that will address climate change.
In short, climate finance refers to funds drawn from various sources in order to address negative effects of climate change.
Interviewer: What climate finance options exist?
Byrne: The major financing options include (i) project finance, (ii) funds and facilities, (iii) thematic bonds, (iv) carbon offsets, and (v) debt for climate swaps.
Interviewer: Please share more about each
Byrne: Well, project finance, (ii) funds and facilities, (iii) thematic bonds, (iv) carbon offsets, and (v) debt for climate swaps.
Interviewer: Is climate change real?
Find out how FourthIR Limited can help contribute to this agenda via research and development.
Contact: +260767759809 or visithttps://zambia.fourthir.org
Transcript: How to register a business in Zambia
JESSICA: Welcome to the FourthIR research podcast. A place where we take problems bothering people nationally and globally and discuss how research can help address those challenges. You are probably listening because you want to register a business in Zambia but do not know how to go about it. In this podcast, we take you through how to register and get your business licensed in Zambia.
We will hear from Collins Chibwe, Luwi Kasanga, Byrne Kaulu and Eric Mukupa. Buckle up for an informative podcast.
Let's start with the types of businesses you can register. Collins, what types of businesses can you register?
COLLINS. There are three types of businesses you can register if you are a profit seeking enterprise. You can register a sole proprietorship (i.e business that you own alone), a private limited company (business you own with at least one more person) or a public limited company ( business you own with another person but also sell your shares publicly on the stock market).
JESSICA: Thank you Collins. Luwi, how can you register a company?
LUWI: To register any of these businesses, you need to go through the registrar of companies. This is done through the patents and companies registration agency (PACRA). PACRA registers sole proprietorships as business names while companies are registered as either local companies or foreign companies. There are advantages and disadvantages for each. Get in touch with us for more on this.
JESSICA: Byrne? What steps does one need to take when registering a business?
BYRNE: Whether you are registering a business name or company, you first do what is known as name clearance. It is a process of checking for the existence of a proposed company or business name. This is done to ensure that the proposed company or business accepted for registration does not exist or is not confusingly similar or misleading to the public. A cleared name can be reserved for a period of time. You then go ahead to submit the rest of the documentation needed to register the company and pay the necessary fees. Once you are done with PACRA, you need to register for taxes with the Zambia Revenue Authority. There are many types of taxes and you must do proper research before you decide to register for a particular tax type. The nature of your business will have a bearing on which taxes you register for. On completion of your tax registration, you need to register your business with NAPSA.
ERIC: Lets now get to Eric Mukupa to learn more about NAPSA and registration for NAPSA. Eric, What is NAPSA.
Explains what NAPSA is.
How does a business or company register for NAPSA?
Are there any penalties for non-compliance with NAPSA registration?
JESICA: Thank you Mr Mukupa for that informative update. Depending on the nature of your business, you may need to register for further industry specific licenses. For instance, you may need licenses from Engineering Institute of Zambia if you are a construction company, Zambia Institute of Chartered Accountants if you are an accounting business, Zambia Institute of Human Resource Management if you are a human resource business, Bank of Zambia if you are a financial institution and so on.
BYRNE: If are registering a public listed company, there are additional applications you need to make with the Securities and Exchange Commission (SEC).
PETER: We hope this helps you with your endeavours to register a business in Zambia. If you would like to find out more about any of this or engage us, contact us on firstname.lastname@example.org or call: +260767759809
JESICA: This is the FourthIR pocast. Thank you for listening. To find out more about us, visit: www.zambia.fourthir.org