Connect with:
Sunday / April 27.
logo
mobile-logo
HomeStandard Blog Whole Post (Page 101)
Tech

ZESCO has disclosed that the new Bulk Supply Agreement (BSA) that the company initialed with the Copperbelt Energy Corporation (CEC) will be made public once it is approved and signed off.

ZESCO Corporate Affairs Manager Dr. John Kunda said the agreement is currently being reviewed by the Attorney General and will need to be approved by the Energy Regulation Board (ERB) before it is signed and made public.

Speaking in an exclusive interview with the Zambian Business Times – ZBT, Dr. Kunda said he could not state when the agreement would be approved as that is also dependent on the Attorney General’s office and the regulator ERB.

“That agreement goes to the Attorney General – AG for review and ERB for approval, that’s when we will have access, initialing is basically indicating that we are on a path to agreeing, as the two companies we agree but then it has to go through the necessary reviews and approvals. It is in the hands of the regulator and AG’s office”, he said.

But there are concerns that have been raised that ZESCO may be forced to sign off an agreement that is in the favor of CEC after revelations that the previous agreement which expired had disadvantaged the power utility. The concerns are that the current ERB Board of Directors new Chairman,  Reynolds Bowa may have interest in CEC as he previously served as CEC board board member and vice Chairman.

ZESCO confirmed that they have successfully completed negotiations for a new BSA with CEC. The new BSA underpins arrangements for power supply and provision of transmission services between the two companies.

The new BSA will replace the old BSA that expired on 31 March 2020 and was not renewed after the previous management and board which have now been replaced following the change of government accused CEC of having enjoyed undue advantage.

CEC has committed to opening a new chapter of a new mutually beneficial relationship with ZESCO. The two companies are confident that the strong interconnection that exists between their power networks, coupled with the need to closely coordinate operationally will continue to be the cornerstone of their ongoing efforts to foster a cordial, transparent and commercially sound business relationship going forward.

 

0 Comments
0 likes

ZESCO has disclosed that the new Bulk

Companies

The Zambia Association of Manufactures – ZAM has questioned the wisdom in ZESCO’s decision to shortlist ten (10) Zimbabwean and South African companies who have since been invited to submit sealed bids at the expense of local companies

In a statement made available to Zambian Business Times – ZBT, ZAM Chief Executive Officer Florence Muleya stated that the decision by ZESCO management to only engage foreign firms for the supply of wooden poles on the basis that Zambian companies do not have adequate capacity to meet the procurement demand is not supported by facts on the ground.

She said following extensive consultation with their members, ZAM has noted that the decision indeed overlooked local suppliers of wooden poles. Primarily, the opportunity was not locally advertised before it was extended to foreign companies, to substantiate that no local capacity existed.

Muleya further stated that this stood to disadvantage local companies with the capacity to meet the procurement demand. “Moreover, one of our members, a major supplier of treated wooden electrical poles to ZESCO for many years, boasts of a total installed plant capacity of 60,000 poles”.

She further added that in 2022, the said company has planned to produce a total of 30,000 wooden poles validating the capacity possessed by local manufacturers who were unfortunately left out of the bid process.

ZAM has since urged all key stakeholders and consumers of goods and services to always think local first and the Association has re-echoed the commitment to supporting and promoting the production and consumption of Zambian products and services to revive the Zambian economy.

“We look forward to the re-consideration by ZESCO to engage our local manufacturers in the sealed bids”, the ZAM CEO stated.

On 31st of march, 2022, the Zambian Business Times – ZBT published an exclusive article that revealed that the Copperbelt Forestry Company (CFC), a Zambian wholly-owned company which was incorporated in 2000 as a management buy out company after the privatization of ZAFFICO has disclosed that it has the capacity to supply ZESCO with the required poles.

CFC has confirmed to ZBT that ZESCO has since engaged them (Copperbelt Forestry Company – CFC) through a meeting that was held mid-mornings of  31 March 2022 on concerns that they had been sidelined. ZESCO stated that they thought the company was not yet in operation after the fire situation it had in the late months of 2020.

When asked why CFC was not initially considered, the company told ZBT that they are not sure if ZESCO will shortlist them or call them back, but confirmed that they have been advised to write back to the managing director and the head of procurement, stating that the previous applications to supply ZESCO with wooden poles might not have reached the Head of Procurement and the Managing Director, CFC stated.

0 Comments
0 likes

The Zambia Association of Manufactures - ZAM

Lifestyle

The omission of Zambia’s first female Vice President Inonge Wina from the inaugural King Lewanika Royal Meritocracy awards following the successful hosting of the Kuomboka ceremony of the Lozi people has been attributed to the high number of eminent personalities and that she will be considered in the subsequent and future annual awards.

The Litunga Lubosi Imwiko II, recognized 13 distinguished women in what was inaugural royal meritocracy awards during the Kuomboka ceremony held in western province. The awards have however raised questions on the criteria used as Zambia’s first woman former Veep Inonge Wina was conspicuously missing from the inaugural list. Debate has raged on social media that the omission of Wina has politicized the awards list.

The 13 women that were recognized and awarded include; Dr Inonge Mbikusita – Lewanika, Mutumba Mainga Bull, Stella Mwaka Libongani, Ndiyoyi Muliwana Mutiti, Nelly Kashumba Mutti, Mukwandi Walusiku Chibesakunda, Princess Nakatindi Yeta Nganga (Posthumously), Frances Mwangala Zaloumis, Ireen Mukombe Muyenga, Kapelwa Sikota, Janet Mwananyanda Yeta, Rebecca Lisulo Katowa and Sister Namunji Mutelo.

In an exclusive interview with the Zambian Business Times – ZBT Joseph Maopu, Investment Development Consultant to the Barotse Royal Establishment – BRE stated that there are more than fifty hundred (5,000) woman of eminence from Barotseland who could all have been on the award list.

Maopu stated that “these are annual awards from now on, thus every year men and women from Baroste will be awarded by his majesty the king, he added that the men and women that did not find themselves on the list of those that were awarded are likely to be awarded in the years to come”.

The BRE consultant who previously served as Luapula Investments Cordinator added that “the responsibility of choosing and the honour to confer, rests on his majesty the Litungu through the royal establishment “KUTA”, there is a committee that deliberates and makes the final nomination”.

And when asked by ZBT if the awards were being made to those that made contribution to Barotseland specifically and not Zambia as a nation as indicated by some media reports, Maopu disputed those assertions and re-stated that the awards were based on  contributions, achievements and service to the world, to Africa, to Zambia and to Barotseland.

He further added that the meritocracy awards were not politically inclined as one of the recipient for instance a sister in the missionary work, the oldest  and longest serving holy cross sister in Zambia, Sister Mirrian Namunji Mutelo.

0 Comments
0 likes

The omission of Zambia’s first female Vice

Markets

The Chinese embassy in Zambia has refused to confirm or deny assertions that they are responsible for the delay in the finalization of a $1.4 billion credit facility (loan) that the Zambian government is pursuing with the International Monetary Fund – IMF.

The IMF loan which was initially planned for disbursements in the first quarter (January to March) of 2022 was rescheduled with Zambia’s finance Minister Situmbeko Musokotwane announcing a revised target of conclusion to mid year – June 2022, a date that is now looking to be too ambitious due to the confirmation that a credit committee to deliberate on Zambia’s debt restructuring request has not yet been formed.

IMF mission chief to Zambia Allison Holland told the Zambian Business Times – ZBT in an exclusive engagement that the timing as to when the Credit facility would be concluded depends on the Zambia governments getting the refinancing assurances from its creditors (the G20 credit committee)

Holland stated that “the precise timing will depend on when the [Zambian] authorities can secure the necessary financing assurances from creditors. This is why we encourage official creditors to come together as quickly as possible to form the official G20 creditor committee under the Common Framework”.

In an exclusive interview with Zambia Business Times – ZBT,  a source at the Chinese embassy who asked not to be named stated that they are aware of the accusations but have no comment at the moment. The source however stated that they would revert after going through their internal processes needed to issue an official response.

Chinese funding to Zambia is quite visible with projects such as the Kenneth Kaunda International Airport in Lusaka, Simon Mwansa Kapwepwe International Airport on the Copperbelt, the Kafue Gorge Lower Power project etc

The complexity now is that there is a requirement that Zambia engages all its key creditors (China inclusive) under a common debt treatment framework to achieve debt restructuring.  Zambia’s debt obligations to China is well over $3 billion and any deal to restructure Zambia’s overall debt will have to have input from China.

Unless Western lender’s agree to a 100% refinance to take over and then pay off Zambia’s debt to China, it remains to be seen how debt owed to both Western creditors and from the Chinese would eventually achieve common treatment, without the usual shadow boxing or tag of war between the two global power blocks which may be beyond Zambia’s finance ministers sphere of influence.

1 Comment
0 likes

The Chinese embassy in Zambia has refused

Lifestyle

Resident Doctors Association of Zambia (RDAZ) President Dr. Brian Sampa, who was also serving as a practicing medical doctor in government who is credited to have confirmed the now accepted countrywide drugs and medicine shortage in government health facilities has been forced to resign.

Dr. Sampa who went further to reveal acute shortages of essential drugs as well as stationary has disclosed that recommendations were made to have him fired from government where he was serving as a medical practitioner due to his advocacy work and that some people did not approve of his advocacy works.

Dr. Sampa has resigned from government effective today (7 April 2022) stating that his work as a medical practitioner in government was conflicting with his activism which he uses to advocate for quality health services.

Speaking in an interview with the Zambian Business Times-ZBT, Dr. Sampa said he realised that he had to resign from his job if he was going to continue advocating for better health services for the Zambian people because his job was always going to be used against him.

“I thought about the importance of people’s lives rather than my job because what will it profit me to have that job meanwhile am seeing wrong things being done and I can’t speak out. I had no option but to let go of the job and focus on advocating for quality health services and for the betterment of our health sector”, he said.

He explained that some individuals at the Ministry of Health did not approve of his advocacy work therefore his job was on the line, which made it difficult for him to execute his duties diligently as a medical doctor as well as an advocate.

“My job became a liability, I advocate for quality health services, I also stand for the Zambian people when it comes to health and all matters which affect their health, aside from that I am the president of the Resident Doctors in Zambia. All these things require advocacy and each time I was advocating, my job was on the line, there were threats over my job”, he said.

Dr. Sampa mentioned that everything had been okay from 2021 until recently when things started going wrong in the health sector adding that when he became more pronounced about drug shortages and other things happening at the Ministry of Health, things started going wrong for him, making it difficult for him to advocate for better services while serving in government.

“I was going to fail because to be a doctor I needed to concentrate but how do you concentrate at a job that is always on the line and how do you concentrate as an advocate when you are thinking about what will happen to your job when you advocate. I realised this is the right decision to make after consultation and deep meditation, I realised the best way to serve the Zambian people is when I am not tied”, he said.

He noted that he would continue to serve as the President of the Resident Doctors Association of Zambia adding that he is still a practicing medical doctor who will still serve the Zambian people whenever needed and will continue advocating for quality health services without fear or favor.

 

0 Comments
0 likes

Resident Doctors Association of Zambia (RDAZ) President

Markets

The International Monetary Fund – IMF has re-affirmed that the Zambian government has stayed the course and is broadly aligned with the commitments agreed under the staff level agreement, setting a good base to get the IMF facility.

Responding to a question from Zambian Business Times – ZBT,  Allison Holland, IMF Mission Chief for Zambia stated that “the [Zambian] authorities have shared key parameters of their economic reform program, which are broadly aligned with the commitments agreed under the staff-level agreement, and that are aimed at the overarching goal of restoring growth and fiscal sustainability.

Holland further stated that the Zambian “authorities have already begun implementing important reforms, such as increasing transparency in the procurement processes, enhancing control of budget spending and indebtedness, and moving towards cost-reflective tariffs in fuel products.

She stated that these reforms will support the IMF program once it is approved. When asked as to what the conditionality’s for the $1.4billion facility would be, Holland stated that full details would be availed after the program is approved.

“Once the program is approved by the IMF Board the full details of the program will be published – including all the reform targets and goals that will be monitored under the 3-year program”, the IMF mission chief to Zambia stated.

When asked when the IMF program would be availed to Zambia with concerns that the June timeline is fast approaching and this is affecting the national budget credibility? Holland restated that Zambia is in debt distress and needs a comprehensive debt treatment, together with fiscal reforms to restore debt sustainability over the medium term.

“We aim to bring the Zambia program to the IMF Board as soon as possible. However, the precise timing will depend on when the [Zambian] authorities can secure the necessary financing assurances from creditors. This is why we encourage official creditors to come together as quickly as possible to form the official G20 creditor committee under the Common Framework” Holland stated.

Zambia’s Minister of Finance Situmbeko Musokotwane and the hired debt advisors (Lazard) now have the task of ensuring that the credit committee is formed and that Zambia can get refinancing support from the G20 credit committee and the Paris Club in good time before they miss the timeline of getting an IMF deal by June 2022.

It it however not clear how the common debt treatment required to achieve debt restructuring from the key creditors will be achieved as a significant amount of Zambia’s debt is to China and its various financial institutions. It remains to be seen how debt owed to western creditors and that from the Chinese would eventually be treated, without the usual shadow boxing or tag of war between the two.

1 Comment
0 likes

The International Monetary Fund - IMF has

Markets

Energy Expert Johnston Chikwanda has disclosed that government is still subsidising fuel in form of forgone or waived 16% Value Added Tax (VAT), 25% customs duty and excise duty which translates to over 41% when these taxes are added.

Chikwanda said these taxes were suspended by the previous Patriotic Front (PF) government in order to suppress the pump prices upto 31st December, 2021. Therefore, on 1st January, 2022 the fuel pump prices were supposed to increase by more than 41% but the UPND government decided to extend the tax waiver policy to mid this year which ends on 30th June, 2022.

According to information obtained by the Zambian Business Times-ZBT, Chikwanda who is one of Zambia’s leading energy experts said that “There has been alot of conflicting statements from different stakeholders that there are no fuel subsidies in Zambia at the moment while others are saying there are still fuel subsidies.The correct position is that government is still subsidizing fuel”, he said.

A subsidy can be direct or indirect. A subsidy is simply a sum of money granted by government to help an industry or business keep the price of a commodity or service low, so when a government decides to suspend taxes and duties which they actually need to finance other sectors, they are actually subsidizing that product.

The continuing of the UPND led government to copy and extend the waiver on VAT, Customs and excise duties on petroleum products which was initially done by their predecessor the PF, simply confirms that the subsidy on fuel has continued.

See earlier ZBT article https://zambianbusinesstimes.com/govt-abandons-tax-revenue-from-imported-fuel-extends-waiver/ to appreciate the continued tax waivers and in-fact subsidizing of fuel in Zambia.

0 Comments
0 likes

Energy Expert Johnston Chikwanda has disclosed that

Companies

The Copperbelt Forestry Company (CFC), a Zambian wholly-owned company which was incorporated in 2000 as a management buy out company after the privatization of ZAFFICO has disclosed that it has the capacity to supply ZESCO with the required poles.

This follows assertions that no Zambian company is capable of supplying the poles that national power utility ZESCO shortlisted foreign companies. The shortlist leaked to the media showed that there was no Zambian company shortlisted, a situation that led to the questioning of what criteria was used with some accusing the committee of graft.

Meanwhile, CFC has confirmed with the Zambian Business Times – ZBT that ZESCO has since engaged them (Copperbelt Forestry Company – CFC) through a meeting that was held mid-mornings of today (31 March 2022) on concerns that they had been side-lined. ZESCO stated that they thought the company was not yet in operation after the fire situation it had in the late months of 2020.

CFC has since been requested to write to the ZESCO Managing Director and the Head of procurement and that they will be considered.

When asked why CFC was not initially considered, the company told ZBT that they are not sure if ZESCO will shortlist them or call them back, but confirmed that they have been advised to write back to the managing director and the head of procurement, stating that the previous applications to supply ZESCO with wooden poles might not have reached the Head of Procurement and the Managing Director, CFC stated.

This is in an issue where CFC said that it registered as suppliers which was the initial stage but when the list of short listed bidders was published, the company was side-lined, instead ZESCO only short- listed foreign companies only.

And the Company said that it had supplied Zesco with wooden poles before and that the last contract ended in 2020. Efforts to get comments from ZESCO procurement proved futile by time of publishing.

0 Comments
0 likes

The Copperbelt Forestry Company (CFC), a Zambian wholly-owned

Agribusiness

Dairy farmers and fresh milk producers have expressed concern over the steep drop of fresh milk farm gate prices by about 36% from K11 to K7 per liter. Farm gate prices are prices which diary farmers are selling their fresh milk at wholesale prices to milk processors at milk collection centers or farm gates.

One of the leading dairy farmers Guy Robinson has revealed that this drop is attributed to the dumping of milk powder (milk concentrates) which some milk processors have opted to import at the expense of sourcing from Zambian diary farmers.

He told the Zambian Business Times – ZBT that government should introduce atleast 40% duty on powdered milk in order to discourage processors from importing powdered milk and discourage the practice as there are enough dairy farmers producing milk therefore the need to stop supporting farmers from other countries and create employment for local farmers.

He explained that empowering rural people and farming communities through dairy farming brings money into rural areas, retains foreign exchange in the country as well as facilitates some dairy farmers being able to venture into other businesses such as transport through earnings from dairy farming.

Robinson has further appealed to government to consider reducing duty on milk related packaging materials so that processors can channel some of that money to paying farmers reasonable prices, which will trickle down to the consumers through better retail prices.

“Dairy farmers used to be exempted from paying Value Added Tax (VAT) but now the situation has changed and we are paying tax on all imports, so government should consider exempting large-scale farmers to help them reduce the cost of production”, he said.

He mentioned that Kushiya Farms is currently milking 500 animals and producing between 15,000-16,000 litres of milk a day and had plans of increasing the number of dairy animals from the current 500 to 600-650, but the current dampened prices of milk (K7 per litre) will not allow the expansion to happen.

“We must sell our dairy cows, so right now we are looking at selling some dairy heifers per annum to keep meeting our costs of production but if the milk price does not improve, there would be no one to buy. If the situation continues, nobody will be willing to buy the dairy heifers so what will we do, what’s the point of the ministry through DAZ importing cattle if the price of milk keeps collapsing”, he said.

Robinson further stated that the Dairy Association of Zambia (DAZ) is doing a fantastic job in terms of assisting the farmers by engaging government but unfortunately, they are failing to get through and get the desired actions from government.

0 Comments
0 likes

Dairy farmers and fresh milk producers have

Mining

Lumwana mine has refuted claims by some members of the public, some of whom purport to have worked for the mine that it is mining Uranium, a high value mineral used in nuclear energy generation.

According to the information and queries that were sent the Zambian Business Times –ZBT, Lumwana Mine is alleged to be mining Uranium and other minerals which are not officially declared.

When contacted by ZBT, Lumwana Mine has denied the allegations that they are mining uranium adding that the company is mining copper and not the said mineral.Lumwana mine Executive director Nathan Chishimba confirmed that the company is mining copper and not the alleged Uranium.

Speaking in an exclusive interview with the Zambian Business Times – ZBT – Chishimba said the allegations were false. When asked to comment further, on allegations of the mine not declaring other Minerals that are mined over and above copper, the Director asked for an official press query.

Lumwana mine is a large copper mine located in the North western province. It is owned by Barrick Gold and represents one of the largest copper reserves in Zambia and in the world having estimated £5 billion of proven and probable copper reserves of ore grading 0.68% copper.

0 Comments
0 likes

Lumwana mine has refuted claims by some