“for confidence in measurements” annual report 2018 annual report 2018.pdf · sap systems,...

2018

ANNUALREPORT

“For Confidence in Measurements”

ZMA ANNUAL REPORT 2018

i GLOSSARY ............................................................................................................................ iii LEGISLATIVE MANDATE ......................................................................................................iiiii CORPORATE GOVERNANCE .............................................................................................. 3 PERMANENT SECRETARY’S STATEMENT .......................................................................................3 EXECUTIVE DIRECTOR’S STATEMENT ............................................................................................5 1.0 SCIENTIFIC AND INDUSTRIAL METROLOGY DEPARTMENT 1.1 Traceability of National Measurement Standards ........................................................... 8 1.2 Industrial Calibrations ..................................................................................................... 9 1.3 Laboratory Accreditation ............................................................................................... 10 1.4 International Bureau Of Weights And Measures (BIPM) .............................................. 10

2.0 OPERATIONS DEPARTMENT 2.1 Type Approval of measuring instruments .................................................................... 12 2.2StatutoryVerificationsofInstruments ........................................................................... 12 2.3 Inspections of Weighing and Measuring Instruments ................................................... 14 2.4 Inspection of Prepackaged Commodities ..................................................................... 17 2.5 Enforcement actions and consumer complaints ........................................................... 20 2.6 Regulatory Review ....................................................................................................... 21 2.7 Project Implementation ................................................................................................. 22 2.8 Collaboration with other Statutory Regulators and Private sector ................................ 23 2.9 International Collaboration ........................................................................................... 24

3.0 HUMAN RESOURCE AND ADMINISTRATION DEPARTMENT 3.1 Change Management ................................................................................................... 26 3.2 Organisational Effectiveness and Talent Management ................................................ 27 3.3 Learning and Development .......................................................................................... 27 3.4 Implementation of the Curriculum in Legal and Industrial Metrology ........................... 28 3.5 Employee Welfare ........................................................................................................ 28 3.6 Public Awareness ......................................................................................................... 29

4.0 FINANCE DEPARTMENT 4.1 Operating Results ......................................................................................................... 31 4.2 Income .......................................................................................................................... 31 4.3 Non-Tax Revenue ......................................................................................................... 31 4.4 Administrative and Operating Expenditure ................................................................... 31 Appendix 1: FINANCIAL STATEMENTS ............................................................................ 33

CONTENT

ZMA ANNUAL REPORT 2018 | i

ASYCUDA AUTOMATED SYSTEMS FOR CUSTOMS DATA

AQS AVERAGE QUALITY SYSTEMS

BIPM INTERNATIONAL BUREAU OF WEIGHTS AND MEASURES

CIM INTERNATIONAL COMMITTEE ON LEGAL METROLOGY

ERB ENERGY REGULATION BOARD

ERP ENTERPRISE RESOURCE PLANNING

GRZ GOVERNMENT OF THE REPUBLIC OF ZAMBIA

IOD INSTITUTE OF DIRECTORS

LAZ LAW ASSOCIATION OF ZAMBIA

MCTI MINISTRY OF COMMERCE, TRADE AND INDUSTRY

MDD MANAGEMENT DEVELOPMENT DIVISION

MOF MINISTRY OF FINANCE

NTR NON - TAX REVENUE

OIML INTERNATIONAL ORGANISATION OF LEGAL METROLOGY

RDA ROAD DEVELOPMENT AGENCY

RTSA ROAD TRANSPORT AND SAFETY AGENCY

SADC SOUTHERN AFRICAN DEVELOPMENT COMMUNITY

SADCAS SOUTHERN AFRICAN DEVELOPMENT COMMUNITY ACCREDITATION SERVICES

SADC MEL SOUTHERN AFRICAN DEVELOPMENT COMMUNITY CORPORATION STRUCTURE IN LEGAL METROLOGY

SADC MET SOUTHERN AFRICAN DEVELOPMENT COMMUNITY CORPORATION STRUCTURE IN MEASUREMENT TRACEABILITY

SAP SYSTEMS, APPLICATIONS AND PRODUCTS

TEVETA TECHNICAL EDUCATION, VOCATIONAL AND ENTREPRENEURSHIP TRAINING AUTHORITYUNIDO UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANISATION

ZABS ZAMBIA BUREAU OF STANDARDS

ZCA ZAMBIA CONSUMER ASSOCIATION

ZESW ZAMBIA ELECTRONIC SINGLE WINDOW

ZMA ZAMBIA METROLOGY AGENCY

ZWMA ZAMBIA WEIGHTS AND MEASURES AGENCY

GLOSSARY

ZMA ANNUAL REPORT 2018ii |

• Integrity• Accountability• Transparency• Team work• Confidentiality• Professionalism• Courtesy

VALUESVALUES

LEGISLATIVE MANDATEThe Zambia Metrology Agency (ZMA) is a Statutory Body under the Ministry of Commerce, Trade and Industry (MCTI) established by the Metrology Act No. 6 of 2017 of the Laws of Zambia.ItsoverarchingmandateistooverseetheserviceprovisionofScientific,Industrialand Legal Metrology.

Its principle functions include:1. Type approval of measuring instruments used in commercial transactions, law

enforcement, health, safety and environment management;2. Verification ofmeasuring instruments used in commercial transactions, law

enforcement, health, safety and environment management;3. Evaluation and approval of pre-packaging of both imported and locally produced

commodities intended for and provided to the market place in accordance with relevant standards; and

4. Calibration of quality control and process control instruments and equipment.

An innovative National Metrology Agency, providing quality measurement services

VISIONVISION

To provide quality metrology services for consumer protection, safety and environmental management, fair trade and competitiveness of products and services

MISSIONMISSION

ZMA ANNUAL REPORT 2018 | 1

EXECUTIVE MANAGEMENT

Eng. Himba CheeloExecutive Director1. Masters of Science (MSc) in Combustion Science and Pollution Control2. Bachelor of Science (BSc) in Applied Science/ Chemical Engineering3. Fellow of Engineering Institute of Zambia4. Member of Institute of Directors

Humphrey NkobeniDirector - Operations1. Master of Business of Administration (MBA)2. Bachelor of Science (BSc)3. Master of Engineering (MEng) Student4. Member – Engineering Institute of Zambia 5. Member -The Southern African Institute of Mining and Metallurgy

Ms. Adrine MuchimbaDirector - Human Resource & Administration 1. Masters of Business Administration2. B.A Human Resource Management3. Fellow of the Zambia Institute of Human Resource Management4. Cert. Change Management

Mr. Frank MulengaDirector - Finance1. Masters in Development Finance (MDevF)2. Masters of Business Administration (MBA)3. B.A Accountancy (B.Acc)4. Chartered Management Accountant (FCMA)5. Member of Institute of Directors

Mr. Fredrick HamutundaManager-Scientific&IndustrialMetrology1. Bachelor of Science (Physics)2. Member - Laboratory Quality Management 3. Member of the European Organisation for Quality (EOQ)

CORPORATE GOVERNANCE

ZMA ANNUAL REPORT 20182 |


As part of re-engineering the National Quality Infrastructure (NQI), the Government of the Republic of Zambia approved the National Quality Policy (NQP) in 2010. The NQP was followed by the enactment of the Metrology Act No. 6 of 2017 which provided for the creation of the Zambia Metrology Agency (ZMA)

ZMA was operationalised through Statutory Instrument (S.I.) No. 85 of 2017 and commenced on 1st January 2018. ZMA is a merger of the ScientificandIndustrialMetrologyDepartmentofthe former Zambia Bureau of Standards (ZABS) with the former Zambia Weights and Measures Agency (ZWMA).

Therefore,2018wasthefirstyearofexistenceof the ZMA. The pace at which the Agency has found its feet is commendable. Despite the challenges that the Agency may have encountered in its transformative and formative year, key successes were also recorded. Some of these are highlighted below:

PERMANENT SECRETARY’S STATEMENTKAYULA SIAME

1. Development and launch of the 2018 – 2021 Strategic PlanThe ZMA developed a Strategic Plan for the period 2018 – 2021. The Management Development Division (MDD) of Cabinet Office facilitated the process of developing this Strategic Plan,culminatingintothesuccessful launchofthedocumentatacolourfulceremonyofficiatedbythe Honourable Minister of Commerce, Trade and Industry, in June 2018.

2. Launch of the new Logo of the Zambia Metrology AgencyDuring the launch of the 2018 – 2021 Strategic Plan, the new ZMA logo was also unveiled. The design of a logo was one of the Agency’s priorities to ensure that the new institution had a new visual identity. The logo was and continues to be an important foundation for the re-branding of ZMA. 3. Regulatory ReviewThe enactment of the Metrology Act No.6 of 2017 and the signing of the Commencement Order S.I. No. 85 of 2017, resulted in the repealing of the Weights and Measures Act No. 12 of 2003 and its Regulations.

MINISTRY OF COMMERCE, TRADE AND INDUSTRY


ZMA begun the process of developing new Regulations in line with the Business Regulatory Act No. 3 of 2014. The process involved consultation and interface with other Government Agencies and stakeholders who were going to be impacted by the proposed Regulations. By the close of 2018, the process had reached an advanced stage. It is envisaged that the new Regulations shall assist the Agency to better deliver on its mandate.

4. Increased support from cooperating partnersDuring 2018, ZMA as a new Agency enjoyed increased support from cooperating partners, through its line Ministry, the Ministry of Commerce, Trade and Industry. This support formed a key component in the ongoing initiatives aimed at resource mobilisation.

Examples of such support given to ZMA was the World Bank-funded Zambia Agribusiness and Trade Project (ZATP). This Project has been instrumental in supporting several activities that were required to be undertaken to operationalise the new National Quality Infrastructure (NQI), under which ZMA falls. Activities conducted included phase one digitalisation activities at the Agency, process re-engineering activities, legislative review for the development of new Regulations and direct Legal Metrology support to Agri-businesses across the country, to mention but a few.

Under the Regional Integration Support Mechanism (RISM) funded by the European Union through the COMESA Adjustment Facility (CAF), ZMA received institutional capacity building aimed at providing Metrology support to the local leather and textile sectors, which are some of Government’s priority areas.

It is evident from the few highlights presented, that 2018 was a transformational year for the Zambia Metrology Agency and that going forward, the Agency shall build on the successes scored to ensure the provision of quality Metrology services, which are key to the economic growth of any country.

Many thanks go to Management and members of staff of the Zambia Metrology Agency, for their contribution to making 2018 the successful year that it was.

…………………………………………..

Kayula Siame PERMANENT SECRETARY MINISTRY OF COMMERCE, TRADE AND INDUSTRY

CORPORATE GOVERNANCE


EXECUTIVE DIRECTOR’S STATEMENTMS. HIMBA CHEELO

I cannot provide my Statement without seizing the opportunity to explain about this monster called ‘Metrology’! Metrology is the science of measurement andismadeupofthreebranchesnamely;Scientificor Fundamental Metrology, Industrial or Applied Metrology and Legal Metrology.

Scientific or Fundamental Metrology deals withthe establishment of units of measurement, unit systemsandquantity systemsScientificMetrologygoes beyond the establishment of units and includes the realisation of these standards to the users in society; and the development of new methods in measurement.

IndustrialorAppliedMetrologyisratherspecificinit’sapplications, which are primarily various industrial processes including manufacturing among others. This branch of Metrology establishes the importance of measurements in industry. Industrial Metrology also ensures the appropriateness of measurement instruments including the maintenance, quality control and proper calibration of these instruments.

For the protection of life, the environment, health and public safety, regulatory requirements of measurement and measurement instruments have to be looked after. These are the concerns of Legal Metrology. With appropriate regulation, consumers are protected and guaranteed that fair trade is observed.

The Zambia Metrology Agency (ZMA) is mandated by an Act of Parliament to deliver Metrology services in the country. Having shared what Metrology means, which explanation is aimed at enhancing the readers’ appreciation of the Agency’s Annual Report, I wish to now share the achievements of the institution in 2018.

I am immensely proud of the work undertaken by the Zambia Metrology Agency (ZMA) in 2018. Together, thedepartmentsintheAgencydeliveredsignificantprogress in performing the Agency’s principal functions, namely; overseeing the provision of Scientific, Industrial and LegalMetrology services;promoting the equitable use of measurements in commercial transactions and law enforcement as well as carrying out market research, in order to identify the changing needs and trends in Metrology.

The major highlights of the year were as follows:

A.InstrumentsverifiedA total of thirty-three thousand seven hundred and seventy-one (33,771) instruments were verified against a budget or planned targetof thirty-two thousand eight hundred and five (32,805) representing an achievementof 103%. In comparison to 2017, in which twenty-three thousand and seventy-three (23073) instruments were verified, the 2018performance improved by 46.4%.

B. Non-Tax RevenueThe Agency exceeded its revenue collection target of thirty-three million seven hundred twenty-one thousand and eighty kwacha (K33,721,080) by raising thirty-three million eight hundred ninety thousand and two hundred ninety-five kwacha six ngwee(K33,890,295.06), which represented a performance achievement of 101%. This improved performance was attributed to the increased verifications undertaken by theAgency coupled with enhanced inspection of imported regulated commodities under Legal Metrology.


CORPORATE GOVERNANCEC. ZMA connects to Zambia Revenue Authority’s ASYCUDAWorldZMA successfully connected to the Zambia Revenue Authority’s (ZRA’s) Automated System for Customs Data (ASYCUDAWorld) through the Zambia Electronic Single Window (ZESW). This access to ASYCUDAWorld enabled the Agency to monitor all imported Metrology-regulated measuring instruments and pre-packaged commodities entering the country through the twenty eighty (28) automated borders points. In order to monitor and ascertain compliance of the Metrology-regulated commodities, inspections were carried out at destination points. Overall compliance of imported pre-packaged commodities was ninety three percent (93%), whilst compliance for imported instruments was hundred percent (100%).

D. Continued Laboratory Accreditation Following the enactment of the Metrology Act No.6 of 2017 which resulted in the merger of the Scientificand IndustrialMetrologyDepartmentofthe former Zambia Bureau of Standards (ZABS) with the former Zambia Weights and Measures Agency (ZWMA), the Laboratory Quality Management System documentation was migrated from ZABS to ZMA. In 2018, the Scientific and IndustrialMetrology laboratories were assessed under ZMA and continued accreditation was recommended by Southern African Development Community Accreditation Service (SADCAS).

Accreditation of any laboratory is of paramount importance as it bestows upon the facility a third-party recognition of the laboratory’s technical competence, which in turn gives rise to regional and international acceptance of measurement results generated by that Laboratory.

E. Implementation of the Curriculum in Legal and Industrial MetrologyIn June 2018, the Agency signed a Memorandum of Understanding (MoU) with the Northern Technical College (NORTEC) for the implementation of the Zambian Legal and Industrial Metrology Curriculum.Thiswasthefinalstepinthejourneyof developing a ‘home-grown’ training programme for the provision of Legal and Industrial Metrology training in-country. The process commenced in 2014. Prior to this, any Industrial and Legal Metrology training had to be undertaken outside Zambia.

As the Agency strives to become an international centre of excellence in Scientific, Industrial andLegal Metrology, the successful implementation of the MoU shall contribute to economic development of the country as Industrial and Legal Metrology skills shall be readily available.

F. Enhanced International and Regional Collaboration in Metrology ActivitiesIn 2018, Zambia through the Zambia Metrology Agency, was appointed to the chair the two structures looking at technical issues related to Metrology matters in the SADC region.

ZMA is the chair of both the Southern African Development Community Cooperation Structure in Measurement Traceability (SADCMET) and the Southern African Development Community Cooperation Structure in Legal Metrology (SADCMEL). The appointments are on a Member-state rotational basis and shall be for a period of two (2) years.

In 2017, Zambia through the Zambia Metrology Agency, was invited to sit on the Presidential Council of the International Organisation of Legal Metrology (OIML) to represent Member States in the region and the African Continent as a whole. ZMA substantively assumed this role in 2018.

G. Numerical Growth The operationalisation of the ZMA saw an increase in staff count from fifty-nine (59) as at 31stDecember2017,toseventy-five(75)membersasat 31st December 2018. The increase in numbers wassolelyonaccountofthemergeroftheScientificand Industrial Department of the former ZABS with the former ZWMA.

The 2018 institutional achievements would not have been possible without the unfailing support of the Government of the Republic of Zambia through the Ministry of Commerce, Trade and Industry, the support from our cooperating partners and the dedication of my Management and staff of the Zambia Metrology Agency.

………………………………….Himba Cheelo (Ms.)Executive Director


MANANGER OF SCIENTIFIC & INDUSTRIAL METROLOGY

MR. FREDRICK HAMUTUNDA

Figure1.1ScientificandIndustrialMetrologyTeamLECHWE HOUSE, LUSAKA

2018was thefirst year for theZambiaMetrologyAgency to operate as a vertically integrated National Metrology Institute. As ZMA, we are the custodians of the National Measurement Standards and we provide measurement traceability to industry through calibrations. ZMA maintains National Measurement Standards for Mass, Pressure, Dimensional, Force, Temperature and Low Frequency Direct Current (LF-DC). We also provide traceability of the Volume Standards through our mass laboratory.

During the year 2018, the country’s Temperature Calibration and Measurement Capabilities (CMCs) were published in the International Bureau of Weights and Measures (BIPM) key Comparisons Data Base (KCDB). This achievement indicates the measurement equivalence of the participating National Metrology Institutes.

“If you can measure it, you know something about it.” ZMA becomes your partner when you need to be assured of the accuracy that you have measured!


1.0 SCIENTIFIC AND INDUSTRIAL METROLOGY DEPARTMENT

1.0 SCIENTIFIC AND INDUSTRIAL METROLOGY DEPARTMENT

1.1 Maintenance of National Measurement StandardsThe Zambia Metrology Agency (ZMA) maintains measurement standards in the areas of Mass, Volume, Pressure, Force, Dimensional, Temperature and Low Frequency Electricity.

Figure 1.2: Mass National Kilogram and Mass Primary Standards

Figure 1.3: Water triple point cells - Primary Temperature Standards

Figure 1.4: Gauge blocks and Length Dimensional Measurement Standards

Figure 1.5: Zenor Voltage Standards and Standard Resistors


1.2 INDUSTRIAL CALIBRATIONSThe Agency disseminates Measurement Standards to industry through an unbroken chain of calibrations. The calibration of industrial measuring instruments and equipment is aimed at ensuring accurate measurements in production and quality control processes.

Figure 1.6: Number of Instruments and Standards Calibrated from 2012 to 2018

Figure 1.7: Examples of Instruments calibrated from Industry by ZMA

The drop in 2018 calibrations was a result of transitioning from Zambia Bureau Standards (ZABS) to Zambia Metrology Agency (ZMA).


1.3 Laboratory Accreditation

TheScientificandIndustrialMetrologylaboratoriesofZMAareaccreditedtotheInternationalStandard ISO/IEC 17025:2005. Four of its laboratories are accredited since 2013 by Southern African Development Community Accreditation Services (SADCAS) and these are Mass, Volume, Dimensional and Temperature. The accredited calibrations performed by ZMA support industry and other laboratories which carry out testing and measuring. Resultant test reports from these laboratories are accepted worldwide.

The Laboratory Quality Management System documentation was migrated from the Zambia Bureau of Standards to the Zambia Metrology Agency in 2018. The laboratories were then assessed under ZMA and continued accreditation was recommended by SADCAS.

During 2018, ZMA participated in several Inter-Laboratory Comparisons (ILCs). These were in the areas of Mass, Volume, Temperature and Dimensional. The ILCs are required to support accreditation of the Laboratories.

1.4 INTERNATIONAL BUREAU OF WEIGHTS AND MEASURES (BIPM)Zambia is an associate member of the International Bureau of Weights and Measures (BIPM). The benefits of being a member is that the National Standards for Zambia are comparedwith the National Standards of the other member National Metrology Institutes, to determine measurement equivalence. The results of these comparisons are published by the BIPM to show how Zambia’s Measurement capabilities are compatible with the rest of the world.

Since the Agency’s measurements are compared to the rest of the world, Industry players that trace their measurements to ZMA will produce products whose measurements are traceable to the SI. This results in Zambian products being accepted worldwide.

During the year under review the General Conference on Weights and Measures (CGPM) met in France from 13th to 16thNovember2018andvotedonthere-definitionofthefourbaseunitsof the International System (SI) of Units.

The revision of the SI will also mark the end of the link between the SI and artefacts. The International System of Units (SI), which has been the responsibility of BIPM since its adoption by the 11th CGPM in 1960, superseded the Metric System, which was one of the most important legacies of the French Revolution. The new SI shall become effective on 20th May 2019 which is cerebrated as World Metrology Day, the world-over.

SCIENTIFIC AND INDUSTRIAL METROLOGY DEPARTMENT


DIRECTOR OPERATIONSMR. HUMPHREY NKOBENI

2018 was an exciting year for the Agency. We had the privilege of operationalising the Metrology Act No. 6 of 2017, which extended our mandate from regulating trade-related instruments and processes only, to encompassing all aspects of Legal Metrology. The extended mandate provided for regulating of all weighing and measuring instruments used in commercial transactions, law enforcement, health, safety and environmental management.

To fully operationalise the Metrology Act, the Department commenced the review of Metrology Regulations which were under the repealed Weights and Measures Act and the development of new ones. The department carried out Regulatory Impact Assessments (RIA), which involved consultation with key stakeholders who were likely to be impacted by the proposed Regulations. These regulatory review activities were done with funding support from the Zambia Agribusiness Trade Project (ZATP).

2018 saw the Department achieve and exceed its’ performance targets. Other milestones achieved included connection to the Zambia Revenue Authority’s customs system, the ASYCUDAWorld System. This connection gave the Agency “real time” information regarding imports coming into the country through the twenty-eight (28) automated Zambian border points. The information from ASYCUDAWorld formed the basis of regulating imported pre-packaged commodities.

In support of Government priority sectors, the Department commenced Metrology technical support to the Leather, Textile and Dairy sub-sectors with support from co-operating Partners.

I would like to thank Management and staff for the hard work that made these accomplishments possible.

Figure 2.1 Operations Department - Lusaka Province


2.1 Type approval of measuring instruments In order to ensure compliance with regards to suitability of weighing and measuring instruments used in commercial transactions, law enforcement and management of health, safety and environment, all new models of instruments are required by Law, to undergo the type approval process. This process ensures that only instruments which meet the minimum technical requirements for their intended purpose, can be used in the country.

Duringtheperiodunderreview,atotalnumberoffive(5)measuringinstrumentmodelsweretype approved. Table 2.1 below gives a summary of the measuring instruments type approved during the year under review.

2.0 OPERATIONS DEPARTMENT

2.2 StatutoryVerificationsofInstrumentsDuring2018,statutoryverificationswerecarriedoutonweighingandmeasuringinstrumentstodetermine their continued suitability for use in commercial transactions, law enforcement and management of health, safety and the environment.

Overall, a total of number of thirty-three thousand seven hundred and seventy-one (33,771) verificationswereconductedagainstabudgetorplannednumberofthirty-twothousandeighthundredandfive (32,805).This representedanachievementofhundredand threepercent(103%) against the budget.

Table 2.1: Summary of measuring instruments Type Approval in 2018

Client Instrument Category Model Date Approved

Ndola Energy Company Flow meter (Micro Motion Transmitter) 1700R11AEZ-EZCZ March 2018

Mulonga Water and Sewerage Company

Test Bench (Water Master Meter) RAC 1000 March 2018

Bridge Shipping Zambia OHAUS Platform Scale T32XW June, 2018BHL Mining Limited Bulkflowmeter ECLWGY65BF July 2018Synite Quarries Zambia Beltway Scale 451002003505001000 August 2018

INSTRUMENT CATEGORY Budget Actual

% Achieved Budget Actual

% Achieved Budget Actual

% Achieved

Liquid Dispenser nozzles 4,142 4,878 118% 2,700 2,897 107% 6,842 7,775 114%

Food/Liquor Dispenser nozzles 200 530 265% 152 432 284% 352 962 273%

Bulkflowmeters 166 200 120% 620 800 129% 786 1,000 127%Tank lorries 160 166 104% 270 349 129% 430 515 120%Weigh bridges 198 220 111% 231 157 68% 429 377 88%

Table2.2:VerificationsofmeasuringinstrumentsconductedagainsttheBudget

1 NotethattheseverificationswerefortheinstrumentswhichhadapprovedRegulationsanddidnotincludeinstrumentssuchas electricity and water meters.


It isworthpointingout that thoughElectricityandWaterMeterverificationswerebudgeted/planned for, statutory verifications were not undertaken as the Agency was awaiting theenactment of associated Regulations for these two instrument categories.

Nevertheless,twothousandsixhundredandfifty-six(2,656)electricitymeterswereverifiedonrequest as part of a complaints resolution process.

TheseverificationnumberswerethereforenotincludedinthestatutoryverificationsreportedinTable 2.2, Figures 2.2 and 2.3 above.

Figure2.3:Three-YearComparisonofPerformanceforStatutoryVerifications

Petroloeum

Dispenser nozzles

Food/Liquor

Dispenser nozzles

Bulk flowmeters

Tanklorries

Weighbridges

TradeScales

Testweights

Pro-weights(Mech

platformscales)

Lengthand

volumemeasure

s

TotMeasures (25mlor 35mlsingle)

Budget 6,842 352 786 430 429 18,489 1,007 2,800 870 800Actual 7,775 962 1,000 515 377 12,623 2,791 6,334 1,079 315% Achieved 114% 273% 127% 120% 88% 68% 277% 226% 124% 39%

- 2,000 4,000 6,000 8,000

10,000 12,000 14,000 16,000 18,000 20,000

Num

ber o

f Ins

trum

ents

Instrument verification

Budget Actual % Achieved

The2018performanceforstatutoryverifications(33,771)ascomparedtothe2017verifications(23,073) represented an increase of forty-six-point four percent (46.4%) and sixty-six percent (66%) when compared to 2016 performance (20,292).

Figure2.3depictsayear-on-yearcomparisonofperformanceforstatutoryverificationsfortheperiod 2016 to 2018.

Figure2.2:Graphicalpresentationofverificationperformance

Instrumentverification


2.3 Inspection of weighing and measuring instruments

In 2018, ZMA carried out two types of inspections on weighing and measuring instruments in line with established practice. These were:

a) Inspection of imported weighing and measuring instruments; andb) Market surveillance inspection of weighing and measuring instruments in use.

2.3.1 Inspections of imported weighing and measuring instruments

The Agency successfully connected to the Zambia Revenue Authority’s (ZRA) custom system, the ASYCUDAWorld through the Zambia Electronic Single Window (ZESW) project on 14th May 2018. Using this system, ZMA was able to monitor imported measuring instruments falling under its mandate.

Findings revealed that all the inspected samples of the imported measuring instruments were compliant to metrology requirements.

S/No. Instrument Inspected Pass Rejected Compliance

1 Scales 74 74 0 100%2 Flow Meters 3 3 0 100%3 Hydrometers 2 2 0 100%4 Multimeters 3 3 0 100%5 Pressure Gauge 2 2 0 100%6 Calorimeter 1 1 0 100%7 Distance Measure 1 1 0 100%8 Moisture Meter 1 1 0 100%9 Other Measuring instruments 6 6 0 100%

TOTAL 93 93 0 100%Table 2.3: Inspections of imported Weighing and Measuring Instruments

OPERATIONS DEPARTMENT

Figure 2.4 Operations Department - Copperbelt Province


Page 22 of 82

In 2018, ZMA carried out two types of inspections on weighing and measuringinstruments in line with established practice. These were:

a) Inspection of imported weighing and measuring instruments; andb) Market surveillance inspection of weighing and measuring instruments in use.

2.3.1 Inspections of imported weighing and measuring instruments

The Agency successfully connected to the Zambia Revenue Authority’s (ZRA) custom system, the ASYCUDAWorld through the Zambia Electronic Single Window (ZESW) project on 14th May 2018. Using this system, ZMA was able to monitor imported measuring instruments falling under its mandate.

Findings revealed that all the inspected samples of the imported measuringinstruments were compliant to metrology requirements.

Table 2.3: Inspection of imported weighing and measuring instruments

S/No. Instrument Inspected Pass Rejected Compliance1 Scales 74 74 0 100%2 Flow Meters 3 3 0 100%3 Hydrometers 2 2 0 100%4 Multimeters 3 3 0 100%5 Pressure Gauge 2 2 0 100%6 Calorimeter 1 1 0 100%7 Distance Measure 1 1 0 100%8 Moisture Meter 1 1 0 100%9 Other Measuring instruments 6 6 0 100%

TOTAL 93 93 0 100%

Figure 2.5: Instruments of Metrology interest imported during the year

2.3.2 Market surveillance inspection of weighing and measuring instruments in use

Scales 80%

Flow Meters 3%

Hydrometers 2%

Multimeters 3%

Pressure Gauge 2%

Calorimeter 1%

Distance Measure 1%

Moisture Meter 1%

Other Measuring instruments

7%

Other 9%

Figure 2.5: Imported Instruments of Metrology interest inspected during the year

2.3.2 Market surveillance inspection of weighing and measuring instruments in use

In order to enhance compliance in the use of instruments covered under the Metrology Act No. 6 of 2017, the Agency continued to undertake planned and random inspections ofmeasuring instruments inuse.Atotaloffivethousandonehundredandseventy-two(5,172) instruments were inspected in 2018 compared to three thousand six hundred and ninety-six (3,696) instruments inspected in 2017, representing a forty percentage (40%) increase.

Of the five thousand one hundred and seventy-two (5172) instruments inspected, onethousand nine hundred and forty-four (1944) were compliant for use, representing a compliance rate of thirty eighty percent (38%). The non-compliances were mainly attributed totheinstrumentsnotbeingofapprovedtype,particularlyinthecategoriesoffoodfillersand trade scales.

Further, the continuous use of some instruments had an impact on their sustained compliance. Examples of such instruments were weighbridges and those used in the petroleumsector(fueldispensersandbulkflowmeters).Theseinstrumentsaretypicallysubjected to ‘higher’ levels of mechanical stress and pressure as compared to other weighing and measuring instruments.

Figure 2.6: The Choma based Operations team


Page 24 of 82

10Tot Measures & other Vol Measures 130 30 100 23%

12 Electricity meters 8 3 5 38%Totals 5172 1944 3228 38%

In instances of non-compliance, the action taken by the Agency included sensitizing the owners of the applicable Legal Metrology requirements. In serious cases, the instruments were either ceased and/or disposed of by destruction or through the Courts of Law.

Figure 2.7: Market surveillance inspection of Instruments in use

Figure 2.8: Measuring instruments compliance to Metrology requirements

2.4 Inspection of pre-packaged commodities

Fuel Dispenser nozzles, 82%

Food/ Liquor Dispensers /Fillers,

6%

Bulk flow meters, 53%

Tank lorries, 88%

Weighbridges, 56%

Trade Scales,

44%

Test weights, 13%

Pro-weights (Mech platform scales),

43%

Length measures, 33%

Tot Measures & other Vol Measures,

23%

Electricity meters, 38%

Fuel Dispenser nozzles

12%

Food/ Liquor Dispensers /Fillers

35%

Bulk flow meters 1%

Tank lorries 6%

Weighbridges 1%

Trade Scales 40%

Test weights 1%

Pro-weights (Mech platform scales)

1% Length measures

1%

Tot Measures & other Vol Measures

2% Electricity meters 0%

Other 4%

S/No. Instruments Description Inspected Pass Rejected Compliance

1 Fuel Dispenser nozzles 622 511 111 82%2 Food/ Liquor Dispensers /Fillers 1798 115 1683 6%3 Bulkflowmeters 32 17 15 53%4 Tank lorries 296 259 37 88%5 Weighbridges 79 44 35 56%6 Trade Scales 2054 914 1140 44%7 Test weights 32 4 28 13%8 Pro-weights (Mech platform scales) 67 29 38 43%9 Length measures 54 18 36 33%10 Tot Measures & other Vol Measures 130 30 100 23%12 Electricity meters 8 3 5 38% Totals 5172 1944 3228 38%

Table 2.4: Market surveillance inspection of Instruments in use

In instances of non-compliance, the action taken by the Agency included sensitising the owners of the applicable Legal Metrology requirements. In serious cases, the instruments were either ceased and/or disposed of by destruction or through the Courts of Law.



Page 24 of 82

10Tot Measures & other Vol Measures 130 30 100 23%

12 Electricity meters 8 3 5 38%Totals 5172 1944 3228 38%

In instances of non-compliance, the action taken by the Agency included sensitizing the owners of the applicable Legal Metrology requirements. In serious cases, the instruments were either ceased and/or disposed of by destruction or through the Courts of Law.




Fuel Dispenser nozzles, 82%

Food/ Liquor Dispensers /Fillers,

6%

Bulk flow meters, 53%

Tank lorries, 88%

Weighbridges, 56%

Trade Scales,

44%

Test weights, 13%

Pro-weights (Mech platform scales),

43%

Length measures, 33%

Tot Measures & other Vol Measures,

23%

Electricity meters, 38%

Fuel Dispenser nozzles

12%

Food/ Liquor Dispensers /Fillers

35%

Bulk flow meters 1%

Tank lorries 6%

Weighbridges 1%

Trade Scales 40%

Test weights 1%

Pro-weights (Mech platform scales)

1% Length measures

1%

Tot Measures & other Vol Measures

2% Electricity meters 0%

Other 4%


In instances where the Agency found non-compliant clients products, the following actions were applied:

a. Seizure and/or disposal through the Courts of Laws; b. Return to the country of origin.

S/No. Pre-Packaged Products Inspected Pass Rejected Compliance

1 Cereal 20 20 0 100%

2 Chocolate 24 20 4 83%

3 Detergent 22 20 2 91%

4 Fertilizer 69 66 3 96%

5 Beverages 58 56 2 97%

6 Biscuits 10 10 0 100%

7 Soap 45 40 5 89%

8 Milk 26 25 1 96%

9 Rice 15 13 2 87%

10 Water 9 8 1 89%

11 Cement 3 3 0 100%

12 Spice 14 14 0 100%

13 Other pre-packaged commodities 33 28 5 85%

TOTAL 348 323 25 93%Table 2.5: Inspections of imported prepackaged commodities


The Agency carried out three (3) types of inspections on pre-packaged commodities as follows;

a) Inspection of imported pre-packaged commodities;b) Inspection of locally-manufactured pre-packaged commodities and;c) Market surveillance inspections of pre-packaged commodities.

2.4.1 Inspection of imported pre-packaged commodities

The Agency monitored imported pre-packaged commodities which entered the country through the twenty eighty (28) automated borders points, using ZRA’s ASYCUDAWorld system. The inspections were not carried out at the borders but at destination points. The overall compliance of imported pre-packaged commodities to Metrology requirements was ninety three percent (93%).

Page 26 of 82

Figure 2.9: Inspections of imported prepackaged commodities

Figure 2.10: Pre-packaged commodities Compliance to Metrology requirements

2.4.2 Inspections of locally-manufactured pre-packaged commodities

Plant inspections were carried out in the manufacturing sector, with a focus on the edible oils and the water bottling sub-sectors.

a) Edible oils Sub-sector

On the 15th February 2018, the Agency conducted a compliance inspection at Parrogate Ginneries located in Mwembeshi area of Central Province, along Mumbwa Road. The inspections revealed that four (4) automatic fillers were in an unverified state.

Cereal 6% Chocolate

7% Detergent 6%

Fertilizer 20%

Beverages 17%

Biscuits 3% Soap

13% Milk 7%

Rice 4%

Water 3%

Cement 1%

Spice 4%

Other pre-packaged commodities

9%

Other 21%

Cereal, 100%

Chocolate, 83%

Detergent, 91%

Fertilizer, 96%

Beverages, 97%

Biscuits, 100% Soap, 89%

Milk, 96%

Rice, 87%

Water, 89%

Cement, 100%

Spice, 100%

Other pre-packaged

commodities, 85%



Page 26 of 82





a) Edible oils Sub-sector

On the 15th February 2018, the Agency conducted a compliance inspection at Parrogate Ginneries located in Mwembeshi area of Central Province, along Mumbwa Road. The inspections revealed that four (4) automatic fillers were in an unverified state.

Cereal 6% Chocolate

7% Detergent 6%

Fertilizer 20%

Beverages 17%

Biscuits 3% Soap

13% Milk 7%

Rice 4%

Water 3%

Cement 1%

Spice 4%

Other pre-packaged commodities

9%

Other 21%

Cereal, 100%

Chocolate, 83%

Detergent, 91%

Fertilizer, 96%

Beverages, 97%

Biscuits, 100% Soap, 89%

Milk, 96%

Rice, 87%

Water, 89%

Cement, 100%

Spice, 100%

Other pre-packaged

commodities, 85%




a) Edible oils sub-sector

The Agency carried out various compliance inspections in the edible oils sub-sector. On the 15th February 2018, the Agency seized a total of three hundred (300) non-compliant cooking oil containers and disposed of them through the Courts of Law. The above non-compliancewascausedbytheusageofnon-verifiedautomaticfillerswhichresultedinunder-filledproducts.

The client was charged and fined. The company has since entered into a voluntaryquarterly inspection scheme with the Agency.

b) Potable Water Bottling sub-Sector

The Agency received numerous complaints from the members of the public on the potable water products. The Agency undertook compliance inspections across the country at production plants and retail places.

It was observed that there were serious anomalies in the packaging and labelling of bottled potable water in container sizes of 18.9, 20 and 21.8 liters.

In view of the above and arising from the results of the inspections conducted, the Agency took corrective measures by suspending the manufacture, supply and sale of pre-packaged potable water of large denomination of 18.9L, 20L and 21.8L for a period of 60 days.

The Agency also engaged key stakeholders in the sub-sector and by the end of the year, twenty eight (28) water bottling companies were compliant.


2.4.3 Market surveillance inspections of prepackaged commodities

In order to ensure compliance of pre-packaged commodities to the requirements of the Metrology Act No. 6 of 2017, the Agency undertook planned and random inspections of pre-packaged commodities in various manufacturing plants and sales outlets. The overall complianceofthepre-packagedcommoditieswasfiftyfourpercent(54%).Further,severalsensitization activities were undertaken.

Figure 2.11 Operations Department - North Western

S/No. Pre-packaged Commodities Inspected Pass Rejected Compliance1 Mealie Meal 111 98 13 88%

2 Cooking Oil 33 20 13 61%

3 Fertilizer 104 72 32 69%4 Stock Feed 45 30 15 67%5 Bread 75 43 32 57%6 Bottled Potable Water 362 58 304 16%

7 Sugar 42 33 9 79%

8 Flour 29 26 3 90%

9 Beverages 66 58 8 88%

10 Rice 28 17 11 61%11 Seeds 22 16 6 73%

12 Detergent 18 10 8 56%

13 Baking Powder 3 3 0 100%14 Peanut Butter 14 8 6 57%

15 Other Prepackaged Commodities 119 81 38 68%

TOTAL 1071 573 498 54%

Table 2.6: Market surveillance Inspections of the prepackaged commodities



2.5 Enforcement action and consumer complaints

Belowaretheenforcementsandactionstakenoninspectionfindingsintheperiodunder review.

Description of Instrument/Prepacks No. of enforcements carried out

Actions taken

Liquid Dispenser nozzles used for dispensing fuel in Service stations

7 � Oneservicetechnicianchargedfinedandservicelicence suspended for tampering with seal

� Non-complyingpumpswererecalibratedandreverifiedFuelbulkflowmeter 2 � OneOilMarketingCompany(OMC)fueloffloading

gantrywasclosedandtheOMCfinedfortamperingwiththesealonthebulkflowmeter

� OneOMCwaschargedandfinedforusinganunverifiedbulkflowmeter.

Fuel Tank lorries 4 � Onedriverchargedandfinedforforgeryofmetrologydocuments

� One OMC was cautioned and directed to conduct induction for staff related to metrology controls on tanker trucks

� OneOMCwasfinedfortamperingwiththemeasuringinstrument

Weighbridges 2 � One weighbridge decommissioned

Trade Scales 3 � Twocompanieswerefinedforplacingintoserviceunverifiedinstruments.

� Oneservicetechnicianwasfinedforforgeryofmetrology documents and his Service Licence suspended.

� Non-compliant instruments seized.

Potable water Across the sub-sector

� ZMA enforced a sixty (60) day suspension on the following capacities; 20 liters, 18.9 liters and 21.8 liters

� The ban was later lifted for twenty eight (28) compliant companies

Beverages 1 � Companywasfined � Product ordered to be returned to country of origin

Feed stock 3 � Onecompanywasfinedwhiletwocompanieswerecautioned

Cooking oil 1 � Three hundred (300) non-compliant cooking oil containers seized and disposed of them through the Courts of Law.

� Companyfined

The action taken was informed by the gravity of the offence.


Figure 2:12: Chipata based Operations team

2.6 Regulatory Review

The enactment of the Metrology Act No.6 of 2017 and signing of the Commencement Order resulted in repealing of the Weights and Measures Act and its Regulations. This necessitated the review of the ‘old’ Regulations to align them to the provisions of the new Act. Further, the expanded mandate demanded that new Regulations be developed to encompass the new areas.

Consequently, ZMA embarked on a legislative review exercise and as part of the same,

the Agency undertook Regulatory Impact Assessments (RIA) in line with the Business Regulatory Act No. 3 of 2014.

Stakeholder engagement meetings on the proposed Regulations were held in various parts of the country.

By the end of 2018, the RIAs had been approved by the Business Regulatory Review Agency (BRRA).

Figure 2:13;- ZMA staff with Copperbelt based stakeholders



Figure 2:14;- ZMA staff participated in the Risk Management training

The drafting of Regulations by Ministry of Justice is planned to be completed by third quarter of 2019.

2.7 Project Implementation

a) Support from the Zambia Agribusiness Trade Project (ZATP)

The Zambia Agribusiness Trade Project (ZATP) is a five year projectbeing implemented by the Ministry of Commerce Trade and Industry (MCTI). The aim of the Project is to contribute to inclusive growth, by increasing market linkagesandfirmgrowthinagribusiness.To achieve this goal the Project commenced implementing interventions under two components: (i) Market linkages in agribusiness and; (ii) Strengthening the regulatory and institutional framework for Agribusiness and Trade

Zambia Metrology Agency (ZMA) received support based on component two which is aimed at strengthening the regulatory and institutional framework for promotion of Agribusiness and trade.Specifically,theAgencyreceivedsupport in implementing the following activities;

(i) Review of Metrology Statutory Regulations(ii) Development and operationalisation of testing Standard Operating Procedures (SOPS);(iii) Metrology support to the Dairy (Milk) Sub-sector(iv) Implementation of the Standardised Dry Measures (MEDA)(v) Capacity building and Technical support to the manufacturing of pre- packaged commodities (vi) Capacity building in Strategic planning and balanced score card development(vii) Agency Information Technology Communication (ITC) infrastructure upgrade

The implementation of the above initiatives commenced in 2018 and they shall be completed in 2019.

b) Support from the World Bank Group (WBG)

The Agency received support in areas focusing on trade facilitation which included connection to the Zambia Revenue Authority custom system, the ASYCUDAWorld and capacity building in carrying out risk based inspections.


Figure2.15:Masterbulkflowmeter

2.8 Collaboration with other Statutory Regulators and Private sector

a) Collaboration on the Harmonization of labelling requirements

The Agency embarked on an initiative to spearhead and coordinate the harmonization of the labelling requirements for pre-packaged commodities. It had been noted that there was no mechanism for approval of labelling requirements of imported and locally produced pre-packaged commodities in Zambia.

To address the same, ZMA initiated collaboration with various Government Agencies and Ministries, whose mandates cover the regulation of labelling.

The collaborations were with:Ministry of Fisheries and Livestock, Ministry of Health (MOH), Zambia Compulsory Standards Agency (ZCSA), Zambia Bureau of Standards (ZABS), Lusaka City Council (LCC), Zambia Environmental Management Agency (ZEMA), National Biosafety Agency, Zambia Medicines Regulatory Authority (ZAMRA), Competition and Consumer Protection Commission (CCPC).

The objective of this collaboration was to resolve areas of overlaps and gaps in the regulation of pre-packaged commodities by coming up with a single national standard on labelling. Works shall be concluded in 2019.

Figure 2.16: Mr. Humphrey Nkobeni. Director Operations spearheading the harmonization efforts

c) Support from the European Union through the COMESA Adjustment Facility (CAF)

Under the Regional Integration Support Mechanism (RISM) funded by the European Union through the COMESA Adjustment Facility (CAF), the Agency received support aimed at providing Metrology support to the

local leather and textile sectors, which are some of Government’s priority areas.

Further, themaster bulk flowmeter whichwas funded by the same project was delivered to the Agency and has since been commissioned. This equipment shall be usedforcalibrationandcertificationof fuelbulkflowmetersatfuelterminals.


b) Inter- Agency Collaborative Activities

Figure 2.17: Director Operations, Humphrey Nkobeni with Mr Kennedy Simutowe (Senior Metrologist) participating in the Inter-Agency joint inspections of road tank vehicles with ERB and ZCSA

Figure 2.18: Engineer Mwewa Bwalya presenting at a Zambia Association of Manufactures SME training workshop

2.9 Regional and International Collaboration

2.9.1 Participation in the Southern African Development Cooperation (SADC) Technical Barriers to Trade (TBT) Cooperation Structures The Agency participated in the 33rd Southern African Development Cooperation (SADC) Technical Barriers to Trade (TBT) Cooperation Structures Meetings held from 11th to 16th March 2018.

Zambia was represented by Zambia Metrology Agency (ZMA), Zambia Bureau of Standards (ZABS) and Zambia Compulsory Standards Agency (ZCSA).

Thebenefitofthesemeetingsarethattheyprovideaplatformforharmonisationofstandards and technical regulations.

During these meetings, Zambia through ZMA took over the chairmanship of two Metrology structures, SADCMEL and SADCMET.



2.9.2 Participation in the Intra-Africa Metrology System (AFRIMETS) meetings

The Agency participated in the in the Intra-Africa Metrology System (AFRIMETS) meetings which were held in Nigeria.

AFRMETS was formed in the year 2006 to promote harmonisation of industrial and legal metrology issues across Africa. It operates as a Regional Metrology Organisation in accordance to the Mutual Recognition Arrangement of the International Committee for Weights and Measures, the CIPM MRA. AFRIMETS facilitates inter and intra Africa trade through use of accurate measurements and ensuring safety, health of consumers and environmental protection.

The Zambia Metrology Agency participated in the technical committee meetings of AFRIMETS which included; Mass and related quantities, Temperature, Electricity, Chemical Metrology, Quality systems and Legal Metrology.

Thebenefits of participating in theAFRIMETSactivities are that Zambia’s interest inmeasurement standards are taken into consideration when submitting the regional measurement capabilities into the International systems.

2.9.3 Participation in the International Organisation for Legal Metrology (OIML) meetings

The Agency participated in several meetings of the International Organisation for Legal Metrology (OIML) during the year. As a country, the membership to the OIML helps Zambia access technical expertise and documents regarding the control of measuring instruments and pre-packaged goods. This in turn promotes global harmonisation, uniform interpretation and implementation of legal metrological requirements for measuring instruments which result in trade facilitation.

Zambia currently represents the Region and the African continent as a whole on the OIML Presidential Council through the ZMA Executive Director.

ZMA ANNUAL REPORT 2018

HUMAN RESOURCE & ADMINISTRATION DIRECTOR

MS. ADRINE MUCHIMBA

As an Agency we are aware that our most critical resource is our human capital. It is with this resource that our Vision and our mission can be achieved through improved skills, passion and innovative minds.

With this established, the Agency continued to embark on the improvement of internal processes, rewarding employees based on performance, upgrading of skills and ensuring that all the members contributed effectivelyandefficientlytothesatisfactionof our stakeholders.

The Agency was on a journey to building a “winning team” whose work and attitude borders on operational efficiency,Metrology Service Excellence and Financial Sustainability.

Figure 3.1 Human Resources and Administration team-Lusaka HQ

3.1 Change Management

ZMA internal communication activities with employees were stepped up during the year under review as new initiatives were launched. These were imperative as the Agency was undergoing a transition due to the formation of new Agency, ZMA. The activities included one-on-one engagement with employees as well as staff meetings.


3.2 Organisational Effectiveness and Talent Management

The staffing of the Agency remained optimal and was effectively aligned with the ZMAorganizational structure. This was to enable the Agency to achieve its organisational objectives, as enshrined in the Strategic Plan for 2018 – 2021. The Agency endeavoured to maintain a competent and motivated human resource at all levels. Talent management has continued to be a priority in enhancing competencies of employees.

3.3 Learning and Development

ZMA is poised for growth and sustainability in the ever-changing market environment. Therefore, learning and development remains key for the Agency to sustain itself. In order to respond to this challenge, retention and development of employees remain key strategies to achieving the needed sustainability. Learning and development also contributed to the retention and realisation of skills development plans thereby enforcing the Agency values of empowerment, inclusiveness, accountability, commitment and integrity.

To achieve the goals and objectives of the learning and development programmes, we continued to implement group management development programmes and provided support for tertiary educationthatenabledindividualemployeesimprovetheirprofessionalqualifications.

a) OIML training in pre-packaged commodities One member of staff attended the above training which was held in China – from 10th to 13th April 2018

Figure3.2:ZMAofficersbeingawardedcertificatesafterparticipatingintrainingforinspectionsof pre-packaged goods

b) OIML Training Workshop for Project Group (PG) Conveners and Technical Committee (TCs) And Sub-committees (Sc) SecretariatsZambia through the Zambia Metrology Agency (ZMA) is a member of the International Organisation for Legal Metrology (OIML). Member states of the OIML enjoy several benefits such as participating in OIML’s technical work. The training was aimed atequipping staff with the necessary skills to enhance participation in OIML technical work.

c) Training in food and drug inspection and quarantine for Zambia. Two members of staff attended the training in China from 8th November, 2018 to 7th December, 2018.


3.0 HUMAN RESOURCES AND ADMINISTRATION DEPARTMENT

Figure 3.3: MoU Signing Ceremony

Figure 3.4: ZMA employees participating in the team building activities.

d) BIPM capacity building and knowledge transfer in dimensional metrology One member of staff attended the above training which was held in Turkey from 2nd April to 5th May, 2018.

3.4 Implementation of the Curriculum in Legal and Industrial Metrology

During 2018, the Agency entered into an agreement for the implementation of the Legal and Industrial Metrology Curriculum with Northern Technical College through signing of a Memorandum of Understanding (MoU). The MoU signing ceremony was held on 30th June 2018 and was graced by the Minister responsible for Commerce, Trade and Industry (MCTI), Honorable Christopher Yaluma M.P.

This event was a notable milestone and achievement for the Agency. The process of developing thefirsteverCurriculuminLegalandIndustrialMetrologycommencedin2014andwasfinalisedin December 2016.

Its envisaged that successful implementation of the Curriculum will contribute to the economic development of the country as Legal Metrology skills will be readily available.

3.5 Employee Welfare

In 2018, ZMA staff participated in a number of team building activities. ii) Gender Mainstreaming


“ORANGE THE WORLD: #HearMeToo”

Figure 3.5: Gender mainstreaming activities

PS Kayula Siame laying foundation block ZMA staff sensitizing membersMembers of the Cooperative were ZMA

contributed building blocks

3.6 Public AwarenessIn a continued effort to overcome the low awareness of ZMA’s mandate, the following are highlights of some of the various public relations activities undertaken during 2018.

Figure 3.8: ZMA staff commemorating International Women’s Day

Figure 3.10: Director Operations and Manager Scientific and Industrial Metrology presentingawards for Labour Day

Figure 3.9: ZMA exhibiting during the Public Service Day

Figure 3.7: ZMA exhibiting at the Northern Province Expo

Figure 3.6 ZMA commemorating World Consumer Rights Day


DIRECTOR OF FINANCEMR. FRANK MULENGA

The Department of Finance is responsible for managing the financial resources of theAgency in order to ensure availability of these resources for implementation of institutional programmes.

Figure4.1FinanceTeamHeadOffice-Lusaka


4.0 FINANCE

4.1 Operating Results TheoperationssurplusfortheyearamountedtoK0.838millioncomparedtothedeficit of K4.398 million in 2017.

4.2 IncomeThe total annual budgeted operational grants were twenty-nine million kwacha (ZMK29.0 million). The total annual operational grants received from the Government of the Republic of Zambia (GRZ) in the year amounted to twenty-four million seven hundred and seventy thousand kwacha (ZMK24.770 million) compared to eighteen million six hundred and thirteen thousand kwacha (K18.613 million) in 2017. Sundry income attributed to non-revenue amounted to ZMK 0.479 million compared to K0.101 million in 2017.

4.3 Non-Tax RevenueNon-Tax Revenue (NTR) is revenue collected on behalf of the Zambian Government by the Zambia Metrology Agency (ZMA) for Statutory Fees charged by the Agency when conductingverifications,calibrationandinspectionservices.ThisisinaccordancewiththeMetrology Act No 6 of 2017.

The total NTR collected in 2018 amounted to K33,890,295.06 against the budgeted amount of K33,721,080 representing an achievement of one hundred and one percent (101%).

2018 revenue collection when compared to 2017 (K18.856 million), showed an increase of seventy eight percent (78%). The increase can be attributed to the increase in the number ofinstrumentverificationsundertakenin2018.

Page 48 of 82

2018 revenue collection when compared to 2017 (K18.856 million), showed an increase of seventy eight percent (78%). The increase can be attributed to the increase in the number of instrument verifications undertaken in 2018.

Figure 4.1: Revenue performance for the last four years

4.4 Administrative and Operating Expenditure

The total administrative and operating expenditure in 2018 was K23.81 million compared to K 14.891 million in 2017, representing a 60% increase.The Agency did not receive grant for two months of the year amounting to Four million two hundred twenty-nine thousand three hundred ninety-kwacha ninety-nine ngwee (K4,229,390.99). This affected the service delivery of the Agency and its capability to meet its full financial obligations.

Table 4.1: The actual grant received compared to the budget.

Budget Actual 2018

% Actual 2017

ZMK ZMKGrant Income 29.00 24.770 85% 18.613

Other Income 0.479 0.101

Total Income 29.00 25.249 18.714Expenditure 0 23.810 23.660Surplus/(Deficit) 29.00 1.439 (4.398)

9.5 11.5

18.8

33.8

0

5

10

15

20

25

30

35

40

2015 2016 2017 2018

NTR for 2015, 2016, 2017 and 2018

Figure 4.1: Revenue performance for the last four years

Budget(Million)

Actual 2018(Million)

Actual 2017(Million)

ZMK ZMK ZMKGrant Income 29.00 24.770 18.613 Other Income 0 0.479 0.101 Total Income 29.00 25.249 18.714Expenditure 0 23.810 23.660Surplus/(Deficit) 29.00 1.439 (4.398)

Table 4.1: The actual grant received compared to the budget.


4.4 Administrative and Operating ExpenditureThe total administrative and operating expenditure in 2018 was K23.81 million compared to K 14.891 million in 2017, representing a 60% increase, mainly on account of the migration of theScientificandIndustrialMetrologyDepartmentoftheformerZABStoZMA.

FINANCE DEPARTMENT

ZAMBIA METROLOGY AGENCY(ESTABLISHED UNDER THE METROLOGY ACT NO. 6 OF 2017ACT NO 12)

ANNUAL REPORT AND FINANCIAL STATEMENTSFOR THE YEAR ENDED 31ST DECEMBER 2018

ZAMBIA METROLOGY AGENCY (ESTABLISHED UNDER THE METROLOGY ACT NO. 6 OF 2017) ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2018

Page 51 of 82

CONTENTS PAGE

Report of the Board Members 1

Statement of Responsibilities for the Financial Statements 5

Report of the Independent Auditors 6

Statement of Surplus or Deficit 10

Statement of Comprehensive Income 11

Statement of Changes in Funds 12

Statement of Cash Flows 13

Statement of Financial Position 14

Summary of Significant Accounting Policies 15

Notes to the Financial Statements 23


Page 51 of 82

CONTENTS PAGE

Report of the Board Members 1

Statement of Responsibilities for the Financial Statements 5

Report of the Independent Auditors 6

Statement of Surplus or Deficit 10

Statement of Comprehensive Income 11

Statement of Changes in Funds 12

Statement of Cash Flows 13

Statement of Financial Position 14

Summary of Significant Accounting Policies 15

Notes to the Financial Statements 23


1

REPORT OF THE BOARD MEMBERS The Board Members of the Zambia Metrology Agency (“the Agency”) submit their report together with the financial statements of the Agency for the year ended 31st December 2018.

1. Establishment and Functions

Prior to 2018, the Agency operated as the Zambia Weights and Measures Agency, which was established through the “Weights and Measures (Amendment) Act No. 12 of 2003”, enacted on 16 September 2003. This resulted in the cessation of the then Government Assize Department to form the Agency, which became operational on 1st October 2003, following the passing of Statutory Instrument No. 113 of 2003 on 26th September 2003. In 2017, an Act (Metrology Act No. 6 of 2017) pertaining to the transformation of the Zambia Weights and Measures Agency into Zambia Metrology Agency was issued. In accordance with the Acts and the Commencement Order, the effective date of change was 1st January 2018. This meant under the Commencement Order (Statutory Instrument No. 85 of 2017) for the Metrology Act, as at the year-end, the Agency took over the assets that belonged to the former Metrology Department of Zambia Bureau of Standards. The effective date was 1st January 2018.

2. Principal Activity

The Agency is a statutory body under the Ministry of Commerce, Trade and Industry (MCTI), whose mandate is to enforce the Weights and Measures system as stipulated by the Metrology Act No.6 of 2017.

3. Place of Business

Head Office:

Plot No. 2387, Longolongo Road. P.O. Box 30989Lusaka, ZAMBIA

Other offices:

Ndola, Choma, Chipata, Kasama and Chirundu

4. Functions

The functions of the Agency are to—

(a). Oversee scientific, industrial and legal metrology in accordance with this Act and any other written law;

(b). Promote the equitable use of measurements in commercial transactions and law enforcement and protect society from the consequences of false measurements;

(c). Facilitate the use of correct measurements in industry, trade, labour, health, safety, environmental management and other activities that utilise measurement;

(d). Promote the reliability of measurement-based activities in the Republic;

(e). Increase opportunities for companies to participate in international science and technology transfer through metrology;

(f). Facilitate national, regional and international trade;

(g). Develop metrological standards for use in Zambia;

(h). Promote public education and the nation wide use of metrology;

(i). Identify sectors where the use of metrological standards is mandatory;


2

(j). Carry out market research in order to identify the changing needs and trends in metrology;

(k). Use market and marketing research for accurate data which can be used to formulate new strategies and policies;

(l). Establish and maintain metrology laboratories;

(m). Participate and represent Zambia in international, regional and foreign bodies with similar functions to the Agency;

(n). Monitor, evaluate and review regional and international metrology programmes; and

(o). Encourage networking and sharing of metrological information in the region.

5. Capital and Resources

(a). Capital

The Agency has no subscription capital; its capital resources are comprised mainly of accumulated funds.

(b). Resources

The Agency is a grant aided body, fully funded by the Government of the Republic Of Zambia.

6. Financial and Operational Highlights

(a) Operating Results

The operating result for the year was a surplus of K4.183million (2017: Deficit: K4.398million).

(b) Income

(i). Total grants received from the Government of the Republic of Zambia amounted to K24.619million (2017: K18.613million).

(ii). Sundry income attributable to non-GRZ revenues amounted to K1.417million (2017: K0.101million).

(c) Expenditure

Administration and operating expenditure totalled K25.022million (2017: K23.660million). The main operating costs were costs of personnel K15.156million (2017: K14.892million) and recurrent expenditures K7.020million (2017: K6.752million).

(d) Capital Expenditure

Fixed assets amounting to K0.521million (2017: K2.684million) were acquired during the year under review. No major changes were made to the accounting policies and use of fixed assets.

7. Risk Factors

The Agency faces a number of operational, legal and financial risks in its operations:


3

(a) Operational Risk

Operational risk is the risk of losses from inadequate or failed internal processes and systems, caused by human error or external events. It has a broad scope and includes transaction authorisation and processing; completeness of income recording; payments processing and the management of information, data quality and records. The following are the main risks noted under this classification:

(i). Financial Crime Risk - Financial crime risk is the risk that the Agency suffers losses as a result of internal and external fraud or intentional damage, loss or harm to people, premises or its moveable assets. The risk in the Zambia Metrology Agency is directly attributable to its people risk.

(ii). People Risk - People risk arises from failures of the Agency to manage its key risks as an employer, including lack of appropriate people resource, failure to manage performance and reward, unauthorised or inappropriate employee activity and failure to comply with employment related requirements.

(b) Legal Risk

The Agency is subject to a comprehensive range of legal obligations, mostly covered by the Metrology Act No. 6 of 2017. As a result, it is exposed to many forms of legal risk, which may arise in a number of ways: its business may not be conducted in accordance with requirements of the Act; contractual obligations may either not be enforceable as intended or may be enforced against the Agency in an adverse way; the Agency may face risk where legal proceedings are brought against it, in the course of carrying out its mandate, etc. Regardless of whether such claims have merit, the outcome of legal proceedings is inherently uncertain and could result in financial loss. Defending legal proceedings can be expensive and time-consuming and there is no guarantee that all costs incurred will be recovered, even if the Agency is successful.

(c) Reporting Risk

(i). Financial Reporting Risk - Financial reporting risk arises from a failure or inability to comply fully with regulations or codes in relation to the preparation, presentation or disclosure of financial information. Non-compliance could lead to damage to reputation or, in extreme cases, withdrawal of external funding.

(ii). Accounting Risks - The Agency’s future performance and results could be materially different from expected results depending on the outcome of certain potential risks and uncertainties, details of which are discussed above. The reported results of the Agency are also sensitive to the accounting policies, assumptions and estimates that underlie the preparation of its financial statements. Details of its critical accounting policies and key sources of accounting judgments are included on pages 16 to 24.

(iii). Financial Risks - The Agency through its normal operations is exposed to a number of risks on its financial instruments, the most significant of which are credit and liquidity. Market (currency and interest) risks are generally low. The two main risks on its financial instruments are generally deemed to be within manageable limits. The Agency’s financial risk exposures are discussed in Note 10 to the financial statements.


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8. Risk Management and Control

As explained on Statement 7 above, the Agency through its normal operations is exposed to a number of risks, the most significant of which are operational, legal and financial risks. The Board Members are responsible for establishing and ensuring maintenance of adequate internal controls over financial reporting. However, all internal control systems, no matter how well designed, have inherent limitations. Therefore, even those systems determined to be effective can provide only reasonable assurance with respect to financial statement preparation and presentation.

9. Board Members (a) Composition

The operations of the Agency are governed by Board Members. The membership of this Board of the Agency is as provided for in the Act.

(b) Members

During the period 1st January 2018 to 31st December 2018, the Minister had not yet appointed a Board.

10. Executive Management

Name Position Ms. Himba Cheelo Chief Executive Officer

Mr. Fredrick Hamutunda Manager – Scientific & Industrial Metrology

Mr Humphrey Nkobeni Director Operations Mr. Frank Mulenga Director – Finance (Up to 15th December 2018)

Mr. Stanley Mweemba Acting Director – Finance (From 15th December 2018)

Ms. Adrine Muchimba Director – Human Resources & Administration

11. Related Party Transactions

The Agency has a common enterprise relationship with Government of the Republic of Zambia (“GRZ”) and its departments. Other related party relationships and material balances that the Agency has with its related parties are listed in Note 11 to the financial statements.

12. Pension Trust Scheme The Agency also has a pension scheme for all permanent and pensionable staff with Zambia State Insurance Corporation (“ZSIC”) Pension Trust Fund. It is a defined contribution retirement benefit plan for all qualifying employees, with minimum contributions being 5% of employee compensation, in a 1:2 split between the member and the employer.

13. Post Balance Sheet Events There have been no significant events between the year-end and the date of approval of these financial statements.

On behalf of the Board Members:

_________________________ ____________ Chief Executive Officer Date


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STATEMENT OF RESPONSIBILITIES FOR THE FINANCIAL STATEMENTS The following statement, which should be read in conjunction with the Auditors’ report on page 7, is made with a view to distinguishing the respective responsibilities of the Board Members of the Zambia Metrology Agency (“the Agency”) and of the auditors in relation to the financial statements for the year to 31st December 2018.

Statement of Responsibility for Financial Statements

In conformity with International Financial Reporting Standards (“

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