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The Zambian Government has continued with the policy of waiving tax on imported fuel and foregoing millions in tax revenues into the 2022 budget cycle, a policy that was initially implemented last year.

Government had last year 2021 resorted to waiving both excise and customs duty in what was largely seen as an attempt to avoid a fuel price hike as the country was heading for polls in August 2021. The price hike was indeed averted but the lost revenues are now set to continue to at least mid 2022.

However, the Zambian government seems to have continued with the policy of waiving these taxes and have simply extended the suspension of customs and excise duty on the importation of petroleum products, which include petrol, diesel, kerosene and liquefied petroleum gas effective 16 January 2022 for another six (6) months.

According to information seen by the Zambian Business Times – ZBT, Finance Minister Dr. Situmbeko Musokotwane has authorized for the customs duty for petrol, diesel, kerosene and liquefied petroleum imported into Zambia to remain suspended until 30 June 2022.

In line with the Statutory Instrument (SI) No.3 of 2022, effective customs duty rate for petrol, diesel, kerosene and liquefied petroleum gas has been zero rates or simply removed. The total quantities of the petroleum products suspended include 734,860 m3 for diesel, 329, 420 m3 for petrol, 5,000 m3 for kerosene and 5, 000kg for liquefied petroleum gas.

Fuel prices were recently increased which has resulted in further increases in bus and taxi fares. The recent fuel price increase has generally led to increase in prices for fuel dependent products, increased cost of productions as well as dampening of demand for less essential goods due to reduced consumer spending power.

The current Government leaders as well as prior successive governments has been challenged by various energy experts to actualize the procurement of oil from neighboring Angola through a pipeline to realistically cut out middlemen and the huge logistical/shipping cost to realize true value from this sector.

Moreover, a medium to long term drive to adopt bio-fuel as a key fuel blend which would cut down on huge fossil fuel imports and dollar outflows as these bio-crops have been proved that they can be grown locally. Biofuel is seen as a more strategic and economically beneficial approach which would also benefit and expand the local Agro sector.

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The Zambian Government has continued with the

Agribusiness

The prices of day old chicks which is a key determinant in the final prices of poultry meat products has dropped by about 30%. According to a targeted survey at top national chick producers conducted by the Zambian Business Times – ZBT, the price drop is ranging from about 20 to about 30%.

A ZBT survey has revealed that the price of day old chicks has gone down due to a steep reduction in demand on the local market as well as continued suspension of the issuance of export permits for the birds.

The drop in demand has also been attributed to reduced wallet share or spending power from increased fuel prices, as wages and earnings remain relatively flat. The increased spend on fuel and increased transport fares has contributed to dampening demand.

One of the large scale suppliers of day old chicks, Zamhatch – a Zambeef subsidiary is currently running a sales promotion, which has seen the price of day old chicks slushed by 27% from K16.5 to K12 per bird.  Another notable reduction has been posted by Quantum Foods who have slushed the price of day old chicks and is currently selling a bird at K14.5 from the previous K16.

Another notable breeder – Ross Breeders also cut the price. And a deeper check by ZBT has revealed that a number of breeders have opted to launch sales promotions as opposed to outright dropping of prices to remain competitive.

Francis Mwila, a sales coordinator at Ross Breeders has told ZBT that the company is currently running a sales promotion and is selling the day old chicks at K14, which is a reduction of K2 from the previous K16.

When asked what had induced the price cuts and sales promotions which are now almost industry wide, Mwila explained that the reduced prices can be attributed to the reduced demand for day old chicks on the market which is expected after the festive season.

Mwila said the reduction in demand is affecting the business because production has gone down and the hatcheries have to reduce on their capacities to avoid over-production.

He further explained that the demand for day old chicks reduces during the rainy season because some farmers focus on crop farming and other rain dependent farming activities, adding that the demand is usually very high during the Christmas and new year period. Moreover, most of the farmers tend to focus on rearing chickens for the purpose of selling them during the festive season.

“People keep a lot of chickens because of Christmas and new year, so all those who were keeping for festive fall out. We have a number of farmers that will come in to raise broilers because they are targeting the festive period and after that they drop out”, he said.

It however remains to be seen if the final prices of poultry products will also drop as these cost savings are ideally expected to be passed on to final consumers. The reduced cost of production however risks not being passed on as producers and poultry farmers adjust their energy and transport costs.

 

 

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The prices of day old chicks which

Companies

Investrust Bank Zambia has been dragged to court by its ex-Branch Manager for unlawful dismissal. The ex-branch Manager has stated that her employment termination was wrongful,unfair and unlawful amounted to constructive dismissal

Details of the matter are that on or about 20 October 1993, Dorothy Chibwe was employed by Investrust Bank to serve as a bank clerk and during her course of employment, she rose through the ranks up to the position of Branch Manager, a position she held from 2014 to 14 February 2021.

According to information seen by the Zambian Business Times-ZBT, by way of an internal memo dated 8th October 2020, the bank informed its staff that it had concluded its alleged organization restructuring programme which was to be implemented from October 2020 to 31st December 2020.

By a letter dated 16th October 2020, Chibwe was informed that her role and position of branch manager, at the Soweto Market Branch had been restructured and that was to be effected on 1st January 2021.

Accordingly, Chibwe was advised to apply for vacant positions in the bank that were to be circulated and that she would be informed in due course of the bank’s decision.

Sometime in December 2020,Investrust Bank placed an online job advertisement which was later followed up by a similar advert in the Zambia Daily Mail edition of 20 January 2021.T his was after she had been informed that her role and position of branch manager had been declared redundant.

On or about 19 February 2021, Chibwe received a notice of redundancy dated 14 January 2021 by which she was notified of her last day of work being 14 February 2021. This notice apparently referred to a letter to Chibwe dated 20 October 2020 which stated that Chibwe would automatically transition to redundancy upon failing to secure an alternative position in the bank.

“To the contrary, the plaintiff avers that she never received the letter dated 20th October 2020, a fact well known to the defendant”.

“Notwithstanding the defendant’s communication that the plaintiff’s role and the position of Branch Manager had been declared redundant the plaintiff will aver that she in fact handed over to the defendant’s employee who took over as branch manager of the defendant’s Soweto Market Branch.This is the same position the plaintiff occupied before the purported redundancy herein”

According to the plaintiff, the bank’s actions and omissions herein breach the redundancy provisions of the Employment Code Act of 2019 and Chibwe will further demonstrate that Investrust Bank’s actions and omissions herein breach the mandatory provisions of the bank’s conditions of service for non-unionised employees which guide on what ought to happen when there is a valid redundancy.

The bank’s actions and omissions herein amount to discrimination as Chibwe’s ‘similarly circumstanced’ colleagues in the positions of Branch Manager have remained in the service of the bank.Chibwe reiterates that she handed over to the bank’s employee who took over her role and position as Branch Manager.

The bank’s actions and omissions herein in addition to being wrongful,unfair and unlawful amount also to constructive dismissal of Chibwe.

“The plaintiff will rely on the Constitution of Zambia and the Employment Code Act, among other laws,in support of the averments herein. Consequent to foregoing events, the plaintiff avers that she has suffered ridicule, odium, contempt and defamation or embarrassment generally from right thinking members of the public”

Particulars of defamation/embarrassment include people believing that the plaintiff is incompetent and she misconducted herself.

The plaintiff shall further aver that she is unable to secure employment consequent to the purported redundancy and despite being a limited liability company the bank is a parastatal or public entity and thus ought to act with fairness at all times and all efforts to amicably resolve this matter have failed.

The plaintiff is now claiming an order of reinstatement in the position of Branch Manager or its equivalent following the purported redundancy of the plaintiff’s role and the position of Branch Manager  vide letter of 14th January 2021.

Chibwe is also claiming, in the alternative order, orders for damages for unfair dismissal or termination, unlawful dismissal or termination and wrongful dismissal or termination.

She is also claiming for damages for constructive dismissal, punitive and exemplary damage for the bank’s blatant disregard of the provisions of the constitution of Zambia (as amended by Act No.2) of 2016 and the employment Code Act of 2019,damages for defamation or embarrassment, further relief (s) apparent from the pleadings and facts/evidence of this matter,interest on the said damages and costs.

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Investrust Bank Zambia has been dragged to

Sport

The Zambia National Soccer team fondly known as the Chipolopolo has missed out on an opportunity to compete and possibly grab the winner prize for the second time that has now been pegged at US$5m. The Chipolopolo boys have now missed out on three consecutive appearances.

Yotham Mwanza, a soccer analyst has stated that the Football Association of Zambia (FAZ) and Zambia as a nation has also missed out on Prize money which the association could have used to boost its finances if the team had qualified and won the African Cup of Nations – AFCON.

Speaking in an interview with the Zambian Business Times-ZBT, Mwanza said the Football Association would have benefitted from the winnings if Zambia had won the AFCON, as some of the money would have gone into their coffers.

“When you qualify there is an opportunity to market your nation and its soccer talent and the prize money’s start to increase at every stage, as you get into the quarter finals there’s money that comes in. Assuming we were to win like we did in 2012, the USD 5 million could have helped to settle a lot of issues”, he said.

According to the statement seen by ZBT, The Confederation of African Football (CAF) Executive Committee has resolved to increase the prize money of the TotalEnergies Africa Cup of Nations Cameroon 2021.

The increase, which was announced on 7 January 2022, and effected in the edition that kicked-off at Olembe Stadium, Yaoundé on 9 January 2022 is in line with CAF’s commitment to reward merit performance and enhance the status of the TotalEnergies Africa Cup of Nations.

According to a statement on CAF’s website the 2021 Africa Cup of Nations Prize monies are USD 5 million (an increase of USD 500, 000) for the winner, USD 2.75 million (an increase of USD 250, 000) for the runner up, USD 2.2 million (an increase of USD 200, 000) for the semi-finalists and USD 1.175 million (an increase of USD 175 000) for quarter finalists.

This represents a total increase at the Africa Cup of Nations prize money of about USD 1.9 million. And the Andrew Kamanga led FAZ has announced that they will be unveiling the new Chipolopolo coach.

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The Zambia National Soccer team fondly known

Lifestyle

The Zambia Medical Association (ZMA) has revealed that the Doctor to patient ration in Zambia is way below the World Health Organization – WHO standards, meaning that Zambia has to scale up its training and deployment of medical doctors.

Medical Association of Zambia Secretary General Dr. Kaumba Tolopu in a statement availed to the Zambian Business Times – ZBT noted that according to the World Health Organisation (WHO), the desirable doctor-patient ratio is 1 doctor for every 1,000 patients but Zambia currently reports a ratio of 1 doctor for every 12, 000 patients.

He added that this is way below the WHO recommendation for a country working towards attainment of universal health coverage and access to quality health care for all by 2030, a goal in line with the Sustainable Development Goals (SDG) agenda and Zambia’s own national strategic health plans.

And the Association has opposed government’s rhetoric that appears to ask trained medical doctors to volunteer their hard earned skills in government facilities without salaries and with no clear road map to fair and reasonable employment.

Dr. Tolopu expressed dismay to hear government’s proposal to engage the punitive approach of prioritizing for employment, those who agree to volunteer in government facilities, even over those who have been waiting for much longer.

The Medical Association views this move functionally strong-arms doctors into offering their services for free and is potentially paving way for a system in which government is not obliged to pay doctors for their work.

He noted that Zambia currently has close to 700 medical doctors and dental surgeons who have been awaiting employment for almost two years now adding that these are fully qualified professionals who have already spent over seven years in medical school and who in past years have immediately absorbed into the civil service at managerial level.

ZMA therefore finds the expectations that these professionals should now be expected to work and risk their lives without the reasonable protection and privileges granted to members of the civil services to be egregious and unreasonable and the association does not accept the notion of subjecting its members to free labour.

Dr. Tolopu mentioned that doctors are a precious and useful resource and government must immediately recognize them as such noting that the labour of medical doctors is not free and should not be treated as such.

The Association has called upon the Ministry of Health and President Hakainde Hichilema to absorb all doctors into the civil service with immediate effect and with remuneration at the appropriate level noting that the crisis must not be used as an opportunity to exploit those working at the front lines.

He explained that doctors like all hardworking Zambians have obligations, needs and family responsibilities and they are not exempt from the high cost of living but nonetheless, they have made huge sacrifices in order to serve the nation and they continue to do so in the line of duty.

Dr. Tolopu further said many doctors have indeed already been volunteering through the various Covid-19 waves at great personal cost and with no promise of compensation for that contribution adding that they serve for the nation’s gratitude, which they cannot use to feed themselves and take care of their families.

He noted that the association would continue to hold consultative deliberations that promote fairness and has also urged all stakeholders to take advantage of ZMA’s open door policy to advance deliberations.

The association has urged its members to desist from bowing to exploitation attempts as it continues to engage government and has appealed to the leadership of the country to expedite the process of promotions and recruitment of healthcare professionals to address the huge human resource deficit in healthcare delivery.

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The Zambia Medical Association (ZMA) has revealed

Tech

Zubeda Bobat, the executor to the estate of late Monica Garg Rupesinghe has dragged Chiduruppa Satya Chandrika to the high court for US$16, 000 (about K270,000) unpaid debt to the deceased owner of Monique Pre & Primary  private School of Lusaka.

The details of the matter are that on a date unknown but within the peculiar knowledge of the defendant, the plaintiff (late Monica Rupesinghe) and defendant (Chiduruppa Chandrika) entered into an agreement whereas, it was agreed wherein that the deceased would lend the defendant USD20,000, which amount was to be paid back on the 31st December 2020.

According to a statement of claim seen by the Zambian Business Times – ZBT, “The said debt was not paid until the untimely demise of the deceased and as a result the executor stepped in the shoes of the deceased to send reminders when the debt became due”.

Despite numerous reminders by the plaintiff to the defendant, the said defendant did not discharge his obligation and made promises of discharging the debt at a later date.

In the spirit of good faith the plaintiff indulged the defendant with his promises hoping the said debt would be discharged as promised but to no avail.

On 6 February 2021, through the plantiff’s advocates, the plaintiff demanded for the said debt. The defendant only managed to pay USD4,000 of the USD20,000 debt owed to and an outstanding balance of USD16,000 was not paid to date.

A follow up letter was written to the defendant on 20th April 2021 reminding the defendant of the outstanding debt. The defendant has continued giving baseless promises and no action has followed such promises. Subsequently, the defendant has failed to pay the plaintiff the outstanding debt owed to the plaintiff.

The plaintiff now claims for an order that the defendant pays the plaintiff the sum of USD16,000 being money owed to the plaintiff as executor of the estate of the late Monica Garg Rupesinghe, interest on all sums found due at the current Bank of Zambia commercial lending rate, any other relief that the court may deem fit and costs.

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Zubeda Bobat, the executor to the estate

Lifestyle

Former Law Association of Zambia (LAZ) President and prominent Lusaka Lawyer Eddie Mwitwa says according to his knowledge, the constitution does not say whether or not a Member of Parliament (MP) can still sit in parliament when an appeal is pending.

Mwitwa however noted that the constitution specifically states that when there is a petition in relation to an election of a Member of Parliament, the MP can continue sitting in parliament. It is this provision that has been at the Centre of debate.

Speaking in an interview with the Zambian Business Times – ZBT, Mwitwa said when the high court renders a decision on an election petition, the petitioner or respondent, whichever is not pleased with the decision has the right to appeal to the constitutional court, which is the final court for such matters.

He stated that he could not state whether it was in order for the speaker of the National Assembly Nelly Mutti to send away MPs whose election results have been nullified as the matter is in court.

“That’s a matter that is in court now, so I can’t say whether it was correct or not. The constitutional court has been petitioned by the Law Association of Zambia, so I think until the court pronounces itself on that matter it’s sub judice for me to say whether it’s right or wrong”, he said.

And a prominent Lusaka lawyer who has asked for their details to be withheld has stated that the affected PF members of Parliament should simply apply for a stay of execution pending appeal to be allowed back into the house. Asking the constitutional court to make a call is a risky route as the outcome is may be adverse.

Speaker Nelly Mutti ruled that the nine PF members of parliament be barred from the house after the high court ruling which had been appealed on, a decision that has raised questions as to whether she as speaker has the powers and authority to deny the affected constituencies representation in Parliament especially considering instances were the appeal cases take time to get dispose off at the constitutional court.

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Former Law Association of Zambia (LAZ) President

Companies

The Zambia Association of Manufacturers (ZAM) says the looming price hikes for fuel and electricity will result in the increase of the cost of production, cost of transportation and price of locally manufactured products.

Association President Ashu Sagar said with the removal of subsidies on fuel and electricity, the anticipation is that looming price hikes for fuel and electricity await Zambians in 2022 and the Zambia Association of Manufacturers foresees these price hikes as a hindrance to meeting the inflation targets in 2022.

According to information made available to the Zambian Business Times-ZBT, Sagar said fuel and electricity are key raw materials in the manufacturing sector and account for large costs in many production processes and supply chains.

He said electricity in Zambia is already marred with erratic supply, therefore increasing the price of electricity coupled with downtime from load management increases the operating costs of manufacturers significantly.

Sagar added that the increase in the cost would inevitably be passed on to the consumer in order to ensure the manufacturers remain profitable, contribute to government revenue and survive noting that the increase in the price of manufactured products would be exacerbated by the increase in the transportation costs, which will be induced by the fuel price hike.

He noted that having been subjected to a turbulent period during the Covid-19 pandemic coupled with an unstable economic environment, ZAM is of the view that a phased removal of subsidies will allow manufacturers and consumers to have a smoother transition into higher costs than an outright full removal of subsidies, which will not factor in consumer welfare.

ZAM has a goal to grow the manufacturing sector in Zambia to start contributing about 20% of the gross domestic products – GDP. Zambia’s potential in manufacturing remains largely untapped even in the copper value chain were the country currently exports semi-processed copper when it can export finished copper cables and other finished copper products which can double or even quadruple the current GDP.

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The Zambia Association of Manufacturers (ZAM) says

Markets

ZANACO – one of the leading commercial banks in Zambia says the recent appreciation of the kwacha  can be attributed of the positive sentiments that surround government’s announcement of a US$1.4 billion deal with the International Monetary Fund (IMF) as it has improved sentiments among offshore investors who would want to invest in Zambia.

The Bank’s Head of Economic Research Dr. Patrick Chileshe said the positive sentiment has attracted investors try to invest in Zambia, they convert their foreign currency into local currency and that increases the supply of the US dollar on the market thereby largely strengthening the kwacha.

When asked by the Zambian Business Times – ZBT to extrapolate where the Kwacha may settle, Dr. Chileshe noted that it is difficult to speculate where the currency will settle, especially when it is sentiment driven because what might happen is that it may exceed where it is supposed to be because of the behavior of market players.

Chileshe added that the estimates indicate that the kwacha is undervalued and the fundamentally correct value is at about K15 a dollar, so it is expected to reach K15 a dollar but because of the behavior of financial market players, it may overshoot and go below K15.

“That does happen overtime but usually it will re-correct so that is what I can say but for you to pin point that it is going to settle at this level in a particular period of time is usually difficult when it is largely driven by sentiments of investors”, he said.

Speaking in an interview with the Zambian Business Times-ZBT, Chileshe said the investors are broadly offshore (foreign) investors, including pension houses and fund managers who manage money for other people and are looking to invest in government securities, which are relatively yielding good returns.

When asked to give specifics on which offshore investors flooded into Zambia and whether the funds or US dollars inflows are expected to continue into the medium term, Chileshe stated that “It’s a huge number of investors, I cannot pinpoint one particular investor”, he told ZBT.

A check by ZBT on Wednesday 15 December 2021 reveals that some of the gains initially enjoyed by the local unit – the Kwacha has started to wane off. The trading pair had reached the K15 per dollar rate but the Kwacha has again started shedding some of its initial gains and is currently trading between K16.3 to K16.5 per US dollar.

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ZANACO - one of the leading commercial

Sport

Soccer player Derrick Mwansa has sued Lusaka Dynamos Football Club in the Lusaka High Court for unlawful termination of his contract and is now demanding for K364, 000.

Details of the matter are that Mwansa was engaged by the Football Club under the employment which commenced on 1 September 2020 and was to continue to 30 August 2022 (the “First Contract”) which was for a duration of two years.

According to a statement of claim obtained by the Zambian Business Times-ZBT, “on the 6th day of August 2021, the defendant through the chairman Hanif Adams informed the plaintiff verbally that his services were no longer needed thus he should find another team without giving any reasons as to why his services were no longer needed”.

“On the 10th day of August the plaintiff wrote a demand letter requesting the defendant to pay and letter to him a letter of termination of contract but to no aveil. That by virtue of the defendant’s failure to pay the claimed sums, it has breached the contract entered into by the parties to the detriment of the plaintiff. Despite numerous and/or several demands, reminders and requests by the plaintiff the defendant has failed,refused and/or neglected to settle its indebtedness to the plaintiff”.

Several attempts have been made to have the club settle the said matter but to no avail and as a result of the aforesaid dismissal, the plaintiff has suffered a loss of income, humiliation, mental distress and damages.

Mwansa is now claiming for the payment of K364, 000 being salary arrears and future earnings due to him under the contract of employment dated 1st September 2020 made between the two parties, a declaration that the termination of his contract by the football club was unlawful and payment of salaries in full until the contract ends.

The plaintiff is also claiming for damages for breach of contract, damages for loss of opportunity to use and invest the said sum, interest, costs and interest at the bank lending rate on all monies found due as well as any other relief the court deems fit.

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Soccer player Derrick Mwansa has sued Lusaka