STATE OF THE MEDIA REPORT QUARTER 3. 2020 Overall, the legal environment in the quarter under review was neutral as certain relatively positive significant trends were observed. These included the approval of the Media Council Bill, which could benefit the media fraternity by providing protection and improving standards. Further, victories observed in cases such as that between NAPSA and News Diggers Newspaper as well as the absence of new legislation aimed at stifling freedom of the press augmented the status of the legal environment in the quarter. The legal environment in the third quarter was clearly much better than that witnessed in the first and second quarters of the year in which certain negative trends were observed. In both quarters, however, the lack of progress on enactment of the ATI Bill remained an issue of paramount concern. 3.3. ECONOMIC ENVIRONMENT In the quarter under review, the economic environment remained in turmoil, with most economic variables posting poor performance that in turn affected the economy negatively. This is evidenced by projection of contraction of the economy by 4.2% in 2020 instead of 2.6%25 expected earlier, with many sectors of the economy affected, among them tourism, wholesale and retail trade and construction. This state of affairs was exacerbated by a significant decline in consumer and investment spending due to disruption in business operations, caused by the COVID-19 pandemic among other factors26. Further, the rate of inflation in the quarter under review increased to an average of 16.1% from an average of 13.5% in the second quarter, mainly attributed to depreciation of the Kwacha against the dollar and other major convertible currencies. For example, at the beginning of the quarter on 1st July, the Kwacha traded at K18.12 against the dollar and later depreciated to K 20.04 at the close of the quarter on 31st August. the nineteenth consecutive month in September, albeit at the slowest pace since February. The rate of decline was much softer than May's record, but panellists continued to report a lack of demand. The full index report is available at https://corporateandinvestment.standardbank.co m/static_file/CIB/PDF/2020/PMI/September2020/ ZM_PMI_ENG_2010_LITE.pdf 25 As monitored in the Bank of Zambia Monetary Policy Committee Statement of August, 2020. See https://www.boz.zm/monetary_policy_committee _statement_august_2020.pdf. See also the Monthly bulletin for September, 2020 issued by the Zambia Statistics Agency. 26 According to the Stanbic Zambia Bank Purchasing Manager’s Index New orders fell for 26