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Zambia Association of Manufacturers (ZAM) outgoing President Ezekiel Sekele says he is hopeful that the 2022 national budget will make pronouncements that will focus on accelerating value addition and industrialisation.

Sekele said there is need to improve the performance of the manufacturing sector if the country is to grow the economy and value addition should be top of the agenda in order to reenergize the performance of the sector.

Speaking in an interview with the Zambian Business Times-ZBT, Sekele said the manufacturing sector currently contributes less than 10% to the Gross Domestic Product (GDP) and the vision 2030 talks about not less than 30% contribution to the GDP, therefore the need to raise the contribution of value addition from 8% to above 20%.

He said the association would like to see measures that will revamp value addition across all sub sectors such as agriculture and mining adding that the mining sector should also focus on finished products and not sending raw materials outside the country.

“We know that electric vehicles will be the thing for the future so we would like to see a kick start to accelerate the pace for value addition”, he said. He said there is need to drive and support more of local sourcing of raw materials and value addition in various sectors including the timber subsector as well as cotton sub sector in order to do away with second hand clothes.

“We have given many examples to the Ministry of Finance in our submission; we need to see more done in the cotton subsector. Cotton is being exported largely but there is a lot that can be done to add value to cotton and all related textile garments input raw materials that can be sourced locally. We need to begin to produce our own textiles in the country and empower individuals selling second hand clothes”, he said.

He noted that there is need to revise policy measures that have continued inhibiting the growth of the manufacturing sector adding that manufacturers importing goods from outside the country, which are not readily available locally, should be given some relief and not be taxed.

He added that value addition should be accelerated for goods that can be import substituted noting that driving accelerated conversion to value addition would entail the country enjoying all the benefits that come from having value addition premised on local sourcing.

“For those items and equipment that cannot be produced locally in Zambia, there is no harm, let’s continue to import but give some relief measures to allow companies bring these items into the country”, he said.

Sekele said there is need to attract companies that can manufacture goods that the country imports because imports put a lot of pressure on forex, so setting up such companies in the country would reduce the pressure on forex as well as create more jobs and the goods currently being imported would be readily available in the country.

“Poultry industry, we are still importing poultry into the country, dressed chickens, smoked chickens, there is a lot of value addition that can take place in that sub sector”, he said.

He said the association presented the tax policy changes that they would like to see to Finance Minister Situmbeko Musokotwane and is hopeful that the minister will step up and ensure to give some relief to the manufacturing sector.

“Once the manufacturing sector is given the needed support and kick start, and particularly value addition that is premised on local sourcing for shared prosperity, there will be more jobs for citizens and we are hoping youths and women find their space as SMEs within the manufacturing sector”, he said.

Copper continue to be exported in semi-processed form, can we attract more upstream companies to locally manufacture electric car components? How can the existing copper wire and cables companies be further supported to grow their share of exports and cut down exports to semi processed copper?

 

 

Zambia Association of Manufacturers (ZAM) outgoing President

The Bumper harvest recorded by Zambia in the 2020/2021 Agro season will enable the country to earn foreign exchange from maize exports for a longer period into first quarter of 2022. The Grain Traders Association of Zambia (GTAZ) says the maize grain export programme, which commenced on 1st October 2021 will run up to 30th April 2022.

The Ministry of Agriculture authorised exports of 450, 000 Metric Tonnes (MT) of maize grain following the stocks monitoring committee meeting held in September this year. There is also more maize that is yet to be mopped up across the country.

Association President Chambuleni Simwinga said 40, 000 MT will be exported in October, 50, 000 MT in November, 60, 000 MT in December this year and 70, 000 MT in January, February and March 2022 with the last quota of 90, 000 MT to be exported in April 2022 in order to facilitate smooth exports.

When asked how Zambian traders can participate, Simwinga said 70% of the maize grain was apportioned to members of GTAZ while 30% was allocated to non-GTAZ members and the export permits for both parcels are being issued through the Zambia Electronic Single Window (ZESW) platform.

Speaking in an interview with the Zambian Business Times-ZBT, Simwinga said non-GTAZ members were allowed to export up to 120 MT per month from 1st October to 31st December 2021 and up to 300 MT per month from 1st January to 30th April 2022.

He added that non-GTAZ members would apply for their monthly quota on a first come first serve basis, which will be timed by the ZESW platform noting that the association is negotiating to have non-GTAZ members export more quantities than the current allocation.

He noted that the GTAZ secretariat will monthly provide a list of participating companies with corresponding allocations for each monthly parcel adding that the current stock is being exported to Namibia, Botswana and Burundi.

He has thanked government for allowing the association as well as non-members of the association to export maize grain and has pledged to support government.

Simwinga has appealed to government to be consistent when it comes to the export programme because inconsistencies negatively affect the trade relations between the traders and the neighbouring countries.

“We are not trusted by our neighbours in terms of trade, they see us as very inconsistent, we can make deals and they pay us in advance but we fail to supply”, he said.

He said it is important for the technocrats who are still running the ministry in the new government to understand what it is to change the economy, as it is not about being persistent and strangely supportive of the old policies.

He added that proper advice in terms of agriculture policy direction is important as well as an efficient system noting that efficiency is cardinal for the exports to run smoothly and quickly.

 

The Bumper harvest recorded by Zambia in

Zambian grain bag suppliers have been blamed for opting to import low quality grain bags at the expense of sourcing them locally and at a higher quality, losing the country the retention of foreign exchange which the economy badly needs.

Strongpak Limited, a Kitwe based manufacturing of grain and other packaging materials says some traders have opted to bring in grain bags from outside the country rather than support local manufacturers who are making the bags locally.

Company Marketing Manager Manish Bhat said the traders are bringing in cheap products that are of low quality at the expense of supporting and promoting locally manufactured grain bags.

Bhat said the company would however continue to provide quality products for people who appreciate value, as the company does not want to compromise on the quality of its products.

Speaking in an interview with the Zambian Business Times – ZBT, Bhat said Strongpak has the biggest capacity in the country to manufacture the grain bags, which it is currently manufacturing without any challenges, but unfortunately, some people choose to import cheap bags from outside.

He noted that the company also manufactures grain bags for the Food Reserve Agency (FRA) and has continued to deliver as and when promised without any challenges or delays adding that Strongpak is ahead of other suppliers in terms of delivery.

He mentioned that the company is able to manufacture any quantities of grain bags in order to meet the demand and has continued to deliver the products on time noting that it will continue to provide for people interested in quality not those who want cheap products.

FRA is one of the main buyers of grain bags but they source these from various suppliers some of whom are importing low quality grain bags.  Moreover, farmers in rural parts of the country have been caught up in the shortage of grain bags which can easily be manufactured in Kitwe and save the country forex.

 

Zambian grain bag suppliers have been blamed

Zambia Association of Manufacturers (ZAM) President Ezekiel Sekele has stepped down as president of the association.

The outgoing President who succeeded Roseta Chabala in 2019 stepped down on 30 September 2021. Speaking in an interview with the Zambian Business Times-ZBT, Sekele said he decided not to go for a second run as he worked hard with his colleagues in the last couple of years and has done the best considering it was a period when there was many policy challenges.

He said the association managed to overcome the challenges and maintained the resilient innovativeness of the manufacturing sector even at a time when the country was dealing with the COVID-19 pandemic.

“I believe that when one has done his or her best, it’s better to leave when the drums are still being sounded or played on the stage, so I decided to step down”, he said.

Sekele said he would be available to offer any help to his colleagues in order to see to it that they carry forward the vision of the manufacturing sector adding that he was delighted to see that there is a new team of young men and women to move the association forward.

He noted that he was leaving as a happy individual and industry player who will be there to offer guidance and advice to the new team of leaders.

Zambia Association of Manufacturers (ZAM) President Ezekiel

Most Zambian firms have been grappling with quality issues when it comes to Personal Protective Equipments – PPE’s, well, Portwest, a leading global manufacturer and innovator of quality work wear, safety wear and personal protective equipment, established in 1904, from Westport Island has set base in Zambia.

Portwest is the fastest growing work wear company in the world with a global distribution network and customer service staff in over 130 countries.

Country  Sales Manager Milton Milimo says the safety company produces everything from work wear such as corporate uniforms and footwear ranging from ordinary to premium wear, which comes from Portwest’s subsidiary company.

Milimo added that Portwest is the mother company with Huski from Australia and Base Protection from Italy being the subsidiary companies among others.

He said the company can produce any quantities of custom-made products adding that it produces various products such as gloves, overalls, boots, trousers and waterproof jackets among others with the focus being on quality of the product, which it provides to its clients noting that the company is willing to match the client’s price.

“We are looking forward to a client coming forward to say this is the price that we have and we match it but quality is what we will provide at all times. We can take a minimum order of 100 with some exceptions where we can make 20 as some type of work wear is very different so because of that we can’t fail to provide the minimal needed”,  he said.

Speaking in an interview with the Zambian Business Times-ZBT, Milimo said the company operates on a business-to-business level or with companies and not the consumers and emphasizes on bulk purchases noting that no one can produce the quantities that the company produces on the Zambian market.

Additionally, Portwest can produce any type of work wear and also has a dedicated section for women. The Country sales Manager told ZBT that Portwest is situated everywhere in the  world has it has distributors across the country . He noted that the company is bringing quality products into Zambia as most of the industries complain of the quality of personal protective equipment wear being of low quality and easily tearing.

The company has over 4,500 people worldwide; Portwest has a team of world-class designers who specialize in flame-resistant and high-visibility work wear, hand and foot protection, PPE and wearable technology and innovative production and design by an in-house team of experts lies at the heart of the Portwest advantage.

Portwest boasts of being market leaders in safety and the company’s award winning team is constantly researching the latest trends and innovations, which meet and exceed customer’s needs.

The company owns four ultra-modern factories in Bangladesh (x2), Myanmar ,China  giving full control over their exceptional quality, lead times and ethical sourcing and Portwest’s reputation for technical know-how, rigorous implementation and attention to style and detail is well proven and consistent colours, fabric qualities, good fit and competitive pricing are taken as a given by customers.

The company has sales offices in six global locations (UK, USA, Australia, UAE, Ireland and Poland) and customer support staff in 130 countries ensure unrivaled customer service is never far away.

In addition, Portwest has six international warehouses (Ireland, UK, USA, Australia, UAE and Poland) with a line fill rate of 97% guaranteeing excellent stock levels at all times and the country gives a no risk proposition in an industry where safety is paramount.

Portwest’s 700 page catalogue is available in 28 languages and features 1350+ safety styles making Portwest a ‘one-stop-shop’ for all safety requirements. Follow link below for more information https://bit.ly/3x5Vm8u or contact Milton Milimo on 0967958571 for more details.

 

 

 

 

Most Zambian firms have been grappling with

By Staff analyst

As much as 422,500 jobs could be created countrywide in the agriculture sector if the new dawn government fully exploits the available farm blocks that could easily absorb unemployed youths and citizens, new IAPRI research shows.

 And the Indaba Agricultural Policy Research Institute (IAPRI) has warned that if the forthcoming 2022 national budget does to be presented by Situmbeko Musokotwane does not significantly change in terms of increasing investment in improving rural infrastructure, among others, government will fail to solve the high youth unemployment levels in the country.

 Speaking during the IAPRI virtual presentation on harnessing employment opportunities in the agriculture sector in Lusaka, IAPRI Research Director, Dr. Antony Chapoto, disclosed that as many as 422,500 jobs could be created if government exploited the existing farm block model to establish and grow employment opportunities in the sector.

 Data seen by the Zambian Business Times– ZBT when covering the lengthy presentation delivered to over 80 participants in Lusaka, showed that at least 422,500 jobs could be created in the agriculture sector alone, but only if government properly structured the huge quantity of farm blocks available in the country.

 According to Dr. Chapoto’s findings, the potential employment creation on a total land size of 100,000 hectares of farm blocks could generate around 42,250 jobs per province or 422,500 across the 10 provinces of Zambia.

 From his conservative assumptions contained in the IAPRI study dubbed, The Burgeoning Youth Population in Zambia: Harnessing Employment Opportunities in the Agriculture Sector, the bare minimum number of jobs created on a 10,000 hectare piece of land would be at least 50 permanent jobs.

 “Farm blocks activation offer the best opportunity for job creation in the agriculture sector, and especially for the large and growing unemployed youth segment in Zambia. They provide a vehicle for sustainable rural development with very significant multiplier effect. With vibrant farm blocks, complimentary industries will emerge both formal and informal. A good example in Zambia is the Nakambala Sugar Estate with its offshoot of Kaleya out-grower scheme in Mazabuka,” Dr. Chapoto explained via video link.

 “A minimum of one million hectares (10 provinces by 100,000 hectares) of arable land countrywide, if harnessed properly, the farm block design would create thousands of jobs across the country; accelerate agricultural growth; increase agricultural value addition and generate export earnings by attracting Foreign Direct Investment (FDI).”

 But the Agro research expert warned that if next year’s budget fails to realign the expenditure priorities in the agriculture sector, the “New Dawn” government’s job creation agenda will fail.

 “Everything will be in vain if the composition of the agricultural budget does not change. If it stays the same, I am willing to bet that nothing will change. If we keep on supporting the areas we have been supporting, nothing will change”

“So, it is my hope and prayer that the 2022 agriculture budget will be bold and would make the needed changes. Otherwise, we’ll fail to harness the job potential of the agriculture sector, which we keep in prison! Right now, we are keeping the agriculture sector in prison,” cautioned Dr. Chapoto.

Farm blocks development has been hailed as an excellent way to realize Zambia’s massive Agro potential but successive governments have struggled to attract core venture or anchor farms investments. See ZBT article on challenges of developing farm blocks Nansanga farm block fails to attract anchor agro investor

Perhaps the new dawn administration of United Party for National Development – UPND with its promises for having deeper and high level international business relations would be able to deliver this well know National Agro growth strategic plan.

By Staff analyst As much as 422,500

Zambia Swimming Union (ZASU) President Guy Phiri says the federation has spent over US$130,000 on Tilka Paljk alone and has raised enough funds to sponsor her if she wishes to compete at the upcoming swimming competition in Ghana next month.

The ZASU president stated that the Union has continued to experience funding challenges like most unions world over, which has led to the union been unable to hold certain events but that it has raised enough funds. He called on Tilka to perhaps manage the support she has received so far better.

Phiri said the union has on going costs but has had very little income therefore the challenge in meeting some costs adding that the union has been unable to operate as normal due to the Covid-19 pandemic.

Speaking in an exclusive interview with the Zambian Business Times-ZBT, Phiri said the union is reaching out to government through the National Sports Council of Zambia,  and has managed to raise some corporate support through the International Swimming federation and received a US$ 25, 000 grant this year.

He said the union has competed in the last six Olympics and had performed well compared to other countries adding that in 2018, the union won the Southern African Championship among other wins.

Phiri mentioned that the union has spent over US$130, 000 on Tilka Paljk from 2017 to 2021 noting that the federation had taken her for a one-year training in Ohio, money which was raised by the union with the help of international supporters.

“That cost US$ 85, 000, she’s been on a scholarship for the last five years, supported by the International Olympic Committee that pays her a monthly amount of just under a thousand dollars every year so I think she has been funded exceptionally well, I think she needs to manage the support she has better”.

Phiri noted that the union has managed to raise most of the money for Paljk and other athletes in the past as some events are not funded adding that the National Olympics Committee prefunds certain events such as the Olympics.

He said the union has managed to raise enough funds and if Paljk chooses to go to the swimming championships in Ghana next month, the required funds will be available for her to do so.

“Unfortunately we don’t know, we have not been given any information from her coach in South Africa as to whether she is in training or not, we don’t know whether she’s training. We are not really sure whether she will be available but we are sure that during the course of this period, we will raise enough funding for her to attend if she would like to”, he said.

He mentioned that the union has over 400 competitive national swimmers adding that the union has new exciting young swimmers coming up.

When asked what other challenges the sport of swimming is facing in Zambia, Phiri noted that access to swimming pools, development of swimming pools; swimming pools in the right areas and closure of swimming pools have continued to remain a challenge.

“The challenge is that only in more expensive private schools do children have access to swimming pools, we as a federation as part of our strategic plan want to see access in government schools at school level. This is where our next Olympic champions are going to come from, they are not going to come from the private schools”, he said.

Zambia Swimming Union (ZASU) President Guy Phiri

MultiChoice Zambia has partnered with MTN to make it easier for Zambians to pay for Showmax streaming service using MTN Mobile Money (MOMO).

MultiChoice Managing Director Leah Kooma said the partnership between MTN and MultiChoice Zambia is aimed at making it easier and convenient for Zambians to pay for the Showmax streaming service therefore through the partnership, MTN MoMo payment will be an added option for customers to use to make payments, using their mobile devices.

Kooma said the partnership between MultiChoice and MTN Mobile Money is another stride the company is making to make payment for Showmax easy for customers as they will now be able to pay using MTN MoMo giving them access to the best of African and international entertainment through the streaming service.

Speaking during the MTN and SHOWMAX partnership briefing held at MultiChoice Headquarters, Kooma said the launch of Showmax is an addition to the various strides that MultiChoice continues to make to provide a world-class entertainment available to the customer anytime, anywhere.

She noted that MTN Mobile Money has continued to expand its networks and the coming together of MultiChoice and MTN through this partnership means great opportunities and solutions for customers.

She mentioned that the partnership will enable all its cherished customers to enjoy the widest bouquet of services using MTN (MoMo) as it is a service that is easy to use, fast and very convenient.

She added that as Africa’s most loved storyteller, the company is always looking at ways in which its customers can best experience its products and services and making it possible for Zambians to pay for Showmax using MTN MoMo is one of the ways the company is customizing Showmax in the country.

Kooma said as part of it’s local-first strategy, Showmax optimizes its offering for different markets, making sure the streaming service has the content customers want to watch and that it is easy to use and pay for.

She said Showmax tailors the content, apps, packages and partnerships to what is most important to subscribers in different countries and the launch of MTN MoMo payments is another payment addition option for Showmax in Zambia as customers can pay with their mobile services.

She noted that mobile streaming has now become an important consideration throughout Africa and Showmax offers a mobile only version of the standard and Showmax Pro subscription adding that the mobile plan gives customers full access to all the content on Showmax or Showmax Pro for an affordable price. Showmax app also includes data saving settings that limit data usage while streaming to less than 100MB per hour.

She said the partnership is an enabler for customers to access popular local content like the latest seasons of Mpali, Zuba, Snakes and Ladders, Date My Family Zambia, Our Perfect Wedding Zambia, sports and many other local and international popular content.

Speaking at the same event, MTN Mobile Money Managing Director Komba Malukutila said MTN noted with concern the challenges that people faced in accessing quality digital content because they lacked access to a debit card that could be accessible on these platforms.

Malukutila said the partnership would make local and international content accessible to millions of Zambians by allowing them to make payments for their Showmax subscriptions in a safe and secure manner via MTN Mobile Money directly from the comfort of their homes, office or anywhere on the move.

He further said the company’s core belief is that everyone deserves the benefit of a modern connected life and driven by this belief, MTN strives to connect Zambia and Africa through digital and financial inclusion noting that its inspiration comes from the potential of African innovation.

He noted that the company believes that its success is closely linked to inclusive socioeconomic growth as well as the success of its partners and as a champion for Zambia and Africa, MTN believes it has a pivotal role to play and is always looking for innovative ways to help bridge the financial and digital divide that limits the opportunity that Zambians can benefit from using the company’s services.

He said the move goes beyond the ability to simply make payments available via the Mobile Money platform as the extended reach of clients to whom this service is available within the country increases the demand for relatable content and creates more opportunities for the local film and content creation industry which in turn creates jobs, reduces poverty, improves the quality of life for people and helps build the economy.

MultiChoice Zambia has partnered with MTN to

During September 2021, the Embassy of the United States, through the United States Agency for International Development (USAID), distributed approximately 2,000 books and learning materials and digital resources to Zambia’s 12 Colleges of Education (COE) and university libraries.  

In partnership with the Zambia Research and Education Network, USAID also provided computers and wireless internet access at 10 teacher-training institutions.  Coinciding with International Literacy Month, the materials will enhance teacher education and bolster digital literacy instruction for new teachers.

“USAID is honored to partner with and support Zambia’s teacher education institutions.  Teachers have a critical responsibility to educate the next generation of Zambian children,” noted Sarah Crites, USAID/Zambia Education Office Director.  Through this partnership, Zambia’s 12 teacher training colleges and universities will be better equipped with the expertise and resources needed to prepare primary school teachers for the demands of the classroom.

A situation analysis conducted in February and March 2021 found that all 12 of Zambia’s universities and COEs were lacking in key literacy resources including books, internet connectivity, and functioning computers.  The materials USAID donated to the libraries include resources on teaching language and literacy; pupil literacy books; and teachers’ guides aligned with Zambia’s Primary Literacy Programme.

USAID support for teacher education in Zambia is facilitated through the Transforming Teacher Education project, a five-year, K300 million ($15 million) partnership with Florida State University; School-to-School International; and the University of Zambia School of Education.  

As USAID’s signature higher education partnership in Zambia, the Transforming Teacher Education project aims to strengthen the capacity of COEs and universities to better equip future primary school teachers with the tools they need to deliver effective, innovative instruction in reading and local language literacy.

During September 2021, the Embassy of the

About twenty (20) tobacco farmers from Eastern Province who delivered their crop expecting it to be bought off by Alliance One have been left stranded and in a precarious situation after the deal fell off, threatening to cause them huge losses.

Alliance One Zambia is a local unit of Alliance One International which is a leading independent leaf tobacco merchant serving the world’s cigarette manufacturers. The company was formed on May 13, 2005, as a result of the merger of DIMON Incorporated and Standard Commercial Corporation, both world leaders in tobacco processing.

And the Tobacco Board of Zambia – TBZ has explained that the twenty farmers from Eastern Province who brought one million kgs of tobacco to be sold to Alliance One in Lusaka arrived two days after the company fulfilled its buying quota.

When asked what caused this situation which leaves the affected farmers in huge possible losses, TBZ Chief Executive Officer James Kasongo stated that this situation arose due to miscommunication between the company’s officers in Eastern Province and the headquarters in Lusaka.

Kasongo said the farmers signed agreements with Alliance One officers in Eastern Province but there was no confirmation of sales by the headquarters in Lusaka as they had established that their quota was fulfilled and their budget was exhausted.

He said TBZ held discussions with the farmers and allowed the one million kgs of tobacco to enter the sales floor despite having no buyer, adding that TBZ then negotiated with Alliance One who this month agreed to buy up about 684,000 kgs of tobacco leaving a balance of 330,000kg of tobacco.

The TBZ CEO added that Alliance One later agreed to buy an extra 123,400 kgs from the remaining 330,000kgs of tobacco which the company will buy before the end of next week.

Kasongo further revealed that TBZ has signed a contract with a Chinese company that will buy 50,000 kgs of the remaining tobacco and Rolland Imperial Tobacco will buy 10,000kg with Associated Tobacco Company buying the rest.

“People want to have their tobacco bought [off like] today, they are dealing with a company which has other headquarters, so they don’t understand that if we talk to Alliance One, it’s not just Alliance one in Zambia that will make the decision, It’s the corporate office that will make the decision and in the corporate office it’s not one person who makes the decision, it’s a board that decides and that can take a month to get feedback”, he said.

Tobacco continues to be a strategic cash crop that Zambia can utilize to boost its export exchange earnings as over 90% of the crop is exported. The country has good soils and weather conditions that can make Zambia turn this crop into a multi million dollar industry. Efforts to get a comment from Alliance One were underway at the time of going to press.

About twenty (20) tobacco farmers from Eastern