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One of the key power generation projects that was expected to contribute to the North-Western Province having a share of Zambia’s growing electricity generation pool, the Kabompo hydroelectric power project has now officially been confirmed to have been put on hold and shelved.

The development of the Kabompo Hydroelectric power project which was had been pursued by the Copperbelt Energy Corporation – CEC through its special purpose vehicle Kabompo Hydro Power Limited (KHPL) was initially estimated to require US$140 million in 2012 and later reported to have been revised upwards to have required US$220 million in 2015 in investements needed is now on ice.

During the 23rd Annual General Meeting held on April 30th 2021, CEC indicated that the initial study on the project indicated that technical solution at that time showed that the project was relatively expensive.

Commenting on a question from one of the shareholders who wanted to know the status of the project, Company chief executive officer Owen Silavwe disclosed that, due to the expensive nature of the project, CEC could not progress with implementation of the project in that form.

“What was then decided was to see whether the project could be re-engineered. That work started in 2019 and continued in 2020, and some of the aspects of that work mostly relating to the marketing of the power have not been concluded” stated the CEO.

“So, part of the consideration was that the project could be done under the auspices of GET FiT Hydro. But as I said the GET FIT programme itself is a government programme. It’s supported by KFW and at the moment it’s been put on hold. Therefore, the commercial considerations for the project could not be finalized,” he said.

Silavwe said, “So maybe at this stage, it suffices to say there are aspects of project viability that have not been finalized, but are still being considered. Therefore, once those have been finalized, our shareholders, just like everybody else in the nation, will be advised whether the Company will be progressing or not progressing with the project,” he indicated.

And in an emailed note to ZBT following the query on the way forward on Thursday 16 September 2021, CEC Public relations advisor Muntanga Sibalwa said there has been no material change to the information provided about the project.

“Regarding the Kabompo project, there has been no material change to the information provided about the project at our last Annual General Meeting held on April 30th 2021,” she said.

Zambia is expected to become a net power exporter after the the Kafue Gorge Lower power plant is fully commissioned by the end of 2021. Both the Luapula and Kabompo Hydro power projects are seeing as key to enable generation expansion as demand increases both in Zambia and the export market and to avoid the recurrance of power deficits that were experienced about two years ago.

One of the key power generation projects

Illegal cross border trade between Zambia and Zimbabwe has become the order of the day due to the lockdown restrictions in Zimbabwe resulting from the Covid-19 pandemic, with local traders calling for new government to help resolve the trade blockages.

Zimbabwe has since 2020 imposed a lockdown in an effort to avert the further spread of the Covid-19 pandemic. The Cross Border Traders Association (CBTA) at Chirundu border has disclosed to the Zambian Business Times – ZBT that most local and small scale cross border traders have lost their main way of earning their livelihood and resorted to paying off some border crossing agents for them to be allowed to cross.

CBTA Chirundu branch chairperson Mulenga Kapika said traders are only allowed to cross the border on Mondays and Fridays after the International Organization for Migration (IOM) intervened and talked to the Zimbabwean side of the border, which is currently closed to the general public and traders.

Speaking in an exclusive interview with ZBT, Kapika revealed that since the border was closed on the Zimbabwean side last year, business has been slow resulting in loss of capital and livelihoods for most cross border traders.

“Our members are not trading normally because there is no free movement of people  between Zambia and Zimbabwe, so some traders in an effort to survive have resorted to using illegal means to trade to sustain their livelihoods”. They are refusing our members (cross border traders from Zambia) to go to the Zimbabwean side, but when they find means go there, they are forced pay some monies.

“Our members are made to pay something like K20, K50, K100 or more depending on the officers on duty, and then they allow them to pass,” she said.

Kapika said when the IOM came in, they helped traders to negotiate with the Zimbabwean side to allow them to trade on Mondays and Fridays using the normal channels provided they follow the laid down Covd-19 health guidelines.

She said however, some small scale cross border traders do go the days that are not allowed using illegal means as the number of trading days allocated are not enough to make end meat.

“Since the Zimbabwean side was completely closed, IOM came and talked with them to allow our members trade on Mondays and Fridays pointing to the fact that the pandemic was not showing any signs of going away soon.

They gave our members masks and sanitizers so that they can be going to do their trade to earn a living. For those that manage to go on days apart from Monday and Friday usually use the security officers, guards to cross at a fee,” Kapika said.

She said from Tuesday to Thursday, the traders use illegal means to cross the border because the immigration officers do not “officially” allow it.

Kapika said this has adversely affected the cross border trading business as they have lost daily revenue including capital as trading is now a big challenge.

“We have made a lot of losses starting from last year when the pandemic broke out, the Zimbabwean border has been closed since that time, so our members have made a lot of losses. We need the Government to come to our aid to help us in terms of empowerment.

She said the Government should also engage their Zimbabwean counterparts to discuss the possibility of opening up the border for trade to flow between the two countries.

There are currently about 200 local and small scale cross border traders registered with the association while the International Organization for Migration recently registered about 2,000 whose life is adversely affected by these border controls and restrictions and need support since their means of livelihood has been adversely affected.

Illegal cross border trade between Zambia and

ABSA Bank Zambia has announced a 21%-salary increment across all unionized workers for its workers effective April 2021. The salary increment means that each unionised employee will be getting an increment of K2, 500.

Absa Bank Managing Director Mizinga Melu said the increment of K2,500 positions the bank as an employer of choice in the country.

She was speaking during the signing of the 2021 collective bargaining agreement after successful negotiation between the Bank and the Zambia Union of Financial Institutions and Allied Workers (ZUFIAW) and Bankers Union of Zambia (BUZ), which the Zambian Business Times – ZBT attended.

Melu also disclosed that all employees would get a K12, 500 as management discretionary one off payment.

“After a protracted and engaging, we have unprecedented basic salary increment of 2, 500 across the board for unionised workers with effect from 1st April 2021, so we will be giving our members of staff 2500 per month as an increment across the board, this represents a 21% increment.

“Further, as management, we felt that the economy has been quiet tough as we are all aware and from this basis, we felt it is important for us to give our employees an exceptional discretionary one off payment of K12, 500. So our employees will all walk away with discretionary management payment of 12,500 in addition to the 21% salary increment,” she said.

Melu said conditions of service for the Automated Teller Machine (ATM) custodians and the card-acquiring merchants have been enhanced and would receive additional allowances. She said the bank would also give the workers in the technology department enhanced salaries as well as enhance funeral grants and allowances for accommodation and travel.

“The board has also approved an early retirement scheme that will allow Absa employees to go on early retirement at will. So we have a new early retirement scheme to allow our employees to have voluntary leave from the bank as they would like to. This is strictly voluntary and nobody is going to lose his or her jobs,” Melu added.

Meanwhile ZUFIAW General Secretary Chingati Msiska said the union is happy with the increment and it will make their members happy.

“We are happy that we have signed the collective agreement after protracted negotiations, negotiations have never been easy and as a labour movement, we are happy when we come to a conclusion.

“As a union we strongly believe in the spirit of working together as partners, being objective, being productive and being people that are going to represent the cause and the affairs of our members.

Chingati said, “It is regretted that at times differences arise between parties, we fail to find amicable solutions but it is important to note that we are there to see that these institutions like Absa remain productive, remains a bank to recon with.

And BUZ Deputy General Secretary Mwape Chanda said she is happy that the agreement will better the lives of the members.

“We are grateful for this day, we want to thank ZUFIAW that we have agreed to sign and sit together to bargain as one organization for the betterment of our employees as well as the Bank so that our members can work well and be productive as they push the bank further and improve the economy forward,” she said.

ABSA Bank Zambia has announced a 21%-salary

Zambia Forestry and Forest Industries Corporation Plc (ZAFFICO), the Agro Forestry company at the centre of the lucrative Mukula export has announced that its managing director Kangwa Bwalya has resigned from his position as Managing Director and stepped down from the board of directors of the corporation.

And the Board of Directors of Corporation has since appointed its Director of Special Projects, Brian Mutale to act as Managing Director for administrative convenience in the interim.

According to information made available to the Zambian Business Times – ZBT, Bwalya resigned with effect from 13th September, 2021. The note seen by ZBT stated that “the ZAFFICO Plc Board of Directors thanks Bwalya for his contribution to the company and wishes him well in his future endeavors,” Company secretary Chanza Sikazwe said.

Sikazwe said ZAFFICO Plc has since commenced a process of identifying Bwalya’s successor and shareholders will be advised of the appointment of a substantive Managing Director in due course. The company did not state the reasons behind Bwalya’s exit.

“As an Interim measure, the Board of Directors has since appointed the Corporation’s Director of Special Projects, Mutale to act as Managing Director for administrative convenience,” he said.

Sikazwe said Mutale holds a Master’s Degree in Development Finance from Stellenbosch University (Cape Town); a B.Sc. (Hons) Economics from University of Zimbabwe and B. Sc. in Forestry from Copperbelt University (Kitwe).

He is a member of the Institute of Directors of Zambia (IoDZ) and a Fellow of the Chartered Institute of Development Finance (CIDEF). He is also a Certified Balanced Score Card Professional (Strategic Planning) from Washington University College of Professional Studies. Mutale has over 18 years of experience in both the public and private sectors.

Prior to joining ZAFFICO, he worked for the National Council for Construction (NCC) as head of Business Development. “Other companies he has worked for include the Citizens Economic Empowerment Commission; Ministry of Agriculture and Wood Processing Industries of Ndola,” he said.

ZAFFICO had been given the mandate to handle high public interest Mukula exports, a responsibility that has put the Agro forestry company at the centre of a lucrative and high value export business. It is however not confirmed if this resignation is related to Mukula export deals.

Zambia Forestry and Forest Industries Corporation Plc

The Cross Border Traders Association at Kasumbalesa border between Zambia and the Congo DR is calling on new Government to step in and bring sanity by ending the extortion and multiple charges that local traders are facing due to lack of an organized system.

Trade between Zambia and DRC remains the most viable and feasible way to drive up demand for Zambia’s agro produce and expand exports by locals but successive governments have failed to restore sanity that would allow smooth and corruption free trade between the two countries.

The chaotic situation at the border has led to genuine Zambian businesses shunning this lucrative trade which has led to large foreign traders mostly from South Africa, Tanzania and other neighboring countries filling the void and taking over the massive trade and export opportunities at the expense of Zambian businesses. It remains to be seen if the new UPND government would be able to fully leverage the DRC opportunity for local businesses.

And the Kasumbalesa Association has called for the conclusion of the matter in which the Chililabombwe Municipal Council obtained an injunction against them for collecting K5 sustainability fee from the cross border traders, which has turned out to be more sustainable that the current situation were there are multiple cadres charging multiple fees to local traders wishing to do business through the border.

Association branch chairperson Raphael Chingeleshi said in 2017, the Chililabombwe Municipal Council took the association to court for allegedly being United Party for National Development (UPND) sympathizers and collecting a K5 sustainability fee from the traders to help the small scale cross border traders.

Speaking in an interview with the Zambian Business Times-ZBT, Chingeleshi said the association were allowed by the Common Market for Eastern and Southern Africa (COMESA) treaty and the Simplified Trade Regime (STR) threshold to collect up to US$2 for sustaining the operations of local traders at the border.

He said the association which has about 800 members, has since 2017, been out of operation, a situation which has affected the local traders who mostly compose the small scale cross border traders as the council obtained an injunction retraining them from operating.

“The reason we were taken to court is that, they accused us of being UPND sympathizers and for collecting a K5 sustainability fee at the border trade information desk. But under the COMESA treaty and STR, we have been given a $2 threshold as a sustainability fee to help with the operations at the border and that is what we were collecting”.

“Where we used to operate from is not the area for the council, what we know is that the council is in charge of bus stations and markets. Us we are and were under Zambia Revenue Authority (ZRA), so if it is to take us to court, ZRA should have been the one doing this, but we were surprised that the council is the one that did this,” Chingeleshi said.

He told ZBT that “we were not allowed to say anything because anyone who said something about this issue was either arrested or shot at. So nothing is working at the moment, we cannot do anything. It would be good if the new Government could come in and help deal with this issue so that we can go back to doing business in the normal and organized way”.

Chingeleshi said most traders end up using un-designated routes to access the market at the border, which they end  themselves spending more than required because of the presence of cadres and the association is not there to help them through the process.

He said by the time they reach their destination, they end up losing a lot of money in the process because there are about 10 people charging them on the way. This leads to losses for most local traders.

“Now, because we are not there to guide the traders, they are using undesignated routes where they end up paying a lot for the goods to cross, sometimes they grab their goods from them and sometimes they are charged for that, you find that those charging will be about 10 people before they reach the borderline” he told ZBT.

During the time we were working, there was nothing like this because we had about 35 people who were engaged to control the traders so that they can be using the routes (walkway) the government made for them, now that they are not there, the traders are moving anyhow, without knowing they find themselves in problems.

He said, in the end, the traders end up losing their goods, harassment is high on them, and the money they raise from the sales is not enough to cover their costs because of paying a multiple cadres and gangs. Chingeleshi said the traders are complaining a lot saying when the association was working, they had protection compared to now were there are too many points were carders are charging traders.

He disclosed that most traders are using un-designated routes because there is no one to control and guide them and because they have not knowledge that the Simplified Trade Regime (STR) protects them from paying a lot of money for those who have goods worth below $2,000.

“The STR protects them especially those who have goods worth less than $2000, they just cross the border without paying, now because there is no one sensitizing them, it is hard for them. When we were there, we had people to teach them, but now its hard for us to manage to pay people to teach them,” Chingeleshi said.

He said the new Government should come in to help us correct the situation as there are too many cadres at the border, which is making business for the small scale cross border traders and other local business people hard.

“So this case has stalled everything. We cannot do anything to help our local traders at the moment because every time we try, we are told that we still have a court case.

“We have observed that this new government wants to help small businesses, we would love if the new government can help us with this matter so that we can continue with our duties of helping small scale cross border traders in their day to day business life,” Chingeleshi said.

 

The Cross Border Traders Association at Kasumbalesa

Finance Minister Dr Situmbeko Musokotwane has announced that the 2022 National Budget which was expected to be presented in last week of September will instead be presented to Parliament by the end of October 2021.

According to information made available to the Zambian Business Times-ZBT, the Ministry of Finance is currently undertaking consultations and receiving submission on the 2022 Budget and the 2022-2024 Medium Term Expenditure Framework,

In April, the Government through the Ministry of Finance commenced preparations for the 2022 National Budget and 2022-2024 Medium Term Budget Framework. The National Budget is an important policy tool, which Government uses to set out the economic direction  and fiscal policy.

In line with Part 26, Article 202, of the Zambian Constitution, the Minister of Finance is mandated to prepare the National Budget and present it to the National Assembly for approval, not later than ninety (90) days before the commencement of the next financial year.

However, in an election year, the Minister of Finance is required to present the Budget not later than 90 days after the swearing in of the new President.

In this case, following the election of the new President Hakainde Hichilema who was sworn in on 24 August, 2021, Dr. Musokotwane announced that he would present the 2022 National Budget by the end of October.

“The 2022 National Budget will be presented towards the end of October 2021,” he said. He announced this during the 2022 National Budget Consultations with the Zambia Association of Manufacturers (ZAM) in Lusaka on Wednesday September 8 2021.

Dr. Musokotwane reiterated the need for industry to play an elevated role in industrialisation; job creation; value addition; import substitution and, tax compliance.

Zambia Association of Manufacturers (ZAM) President Ezekiel Sekele said ZAM was happy with the plan by the new administration to promote industrialization, value addition, and mitigate the encumbrances in the business environment in Zambia.

Sekele welcomed the government’s proposition to enhance the formation of joint ventures between Zambian businesses and international investors in order to create jobs and enhance the quality of goods and services supplied to Zambians.

He assured the Minister that ZAM stands ready to work with the Government in creating jobs and wealth for citizens, both corporates and individuals.

 

Finance Minister Dr Situmbeko Musokotwane has announced

Zambia’s Copper and gold production during the first half of 2021 declined by about 4% and 5% respectively. However, Small-scale and copper output by mostly locals increased by 43.3% from 5466 tonnes in 2020 to 7834 tonnes in 2021.

According to the 2021 midyear, economic report made available to the Zambian Business Times – ZBT, copper output declined by about 4% to 393,115 tonnes in the first half of 2021 compared to 407,808 tonnes produced in the corresponding period of 2020.

The reduction in output was due to breaking down of equipment at some key mines, reduced ore grade and in one case, depletion of the ore as well as the effects of the COVID-19 Pandemic containment measures.

Former Secretary to the Treasury Fredson Yamba said gold production reduced by 4.5 % in the first half of 2021 to 1,770 Kgs from 1,854 Kgs in the first half of 2020. Yamba said this was largely as a result of the continued low-grade ores at the major producing mines.

“There was a 26.3 % increase in gemstone production to 5,025 Kgs in the first half of 2021 from 3,980 Kgs in the corresponding period of 2020,” he said.

Yamba said during the first half of 2021, coal production increased by 49.9% to 277,620.4 tonnes from 185,225.2 tonnes produced during the first half of 2020.

He said coal output has consistently been on an upward trajectory largely due to an increase in demand for coal in electricity generation.

Meanwhile, Manganese output increased by 53.2% from 25,714 tonnes the first half of 2020 to 39,397 tonnes produced during the first half of 2021. This increase was on account of increased investment in manganese mining.

Zambia's Copper and gold production during the

The Zambia Association of Manufacturers (ZAM) has said the intention by the new government to move towards cost reflective tariffs should be well managed to ensure that it does not inadvertently hurt industry and local production in the process.

Speaking in an interview with the Zambian Business Times-ZBT, ZAM board member Chipego Zulu-Chileshe said the association was looking forward to various engagements that will surround the development of the energy sector specifically with the intention to move towards cost reflective tariffs.

Chileshe said this must be a well-managed process that cushions the adverse effects of an exponential increase in the cost of energy for the manufacturing sector.

“With respect to the energy sector we continue to monitor developments around the sector and welcome the measures that have been announced in part by the President Hakainde Hichilema and the commitments that have been made towards delivering affordable and clean energy and powering the nation.

“As manufacturers, we are constantly calling consistent and steady supply of energy that is affordable and we look forward to various engagements that will surround the development of the energy sector specifically with the intention to move towards cost reflective tariffs,” she said.

Chileshe said this would of course require a consultative process that prepares manufacturers for any changes in the tariff regime and ensures that they are able to adjust accordingly.

She said the association welcomes the opportunity to participate in various trade reforms that would be required to strengthen the performance of the private sector in exports to the region.

Chileshe said, “We welcome the measures that have already been announced specifically the intentions to strengthen Zambia Bureau of Standards (ZABS) and the intention to facilitate the flow of trade and investments as well as governments intention to put in place export financing to support various Zambian businesses.

She said when it comes to reducing the cost of doing business in order for Zambian companies to compete and be competitive in regional markets, there is need for concerted and deliberate efforts to reduce the cost of production and the cost of doing business for local manufacturers.

“We do note the intention to streamline and reduce the number of licenses and permits which has been quite tedious and costly for various manufacturers, to also address the issues surrounding processing time and transactions, to encourage e-commerce, e-registration and e-payments which will enhance efficiency as well and to extend affordable credit and finance to players in the manufacturing sector.

“We are cognizance of the fact that the cost of doing business has been hampering the ability of the manufacturing sector to achieve its full potential. As such, we do look forward to not only participate in this process of private sector led growth in manufacturing but to also to contribute to the process through the provision of technical, insight and expertise in the sector with respect to how we can reduce cost of doing business and how we can accelerate the growth of the sector,” she added.

The Zambia Association of Manufacturers (ZAM) has

A Fish Solutions and Consultancy company has disclosed that there is need for fish farmers in Zambia to acquire deeper knowledge and to start formulating their own fish feed in order to increase fish production as well as their returns on investment.

Iban Aquafish Solutions Company Director Ian Bbole said the high cost of feed is one of the reasons the country has continued to experience a national fish deficit despite the country having huge water bodies. He stated that ‘therefore, there is the need for fish farmers to make their own feed and increase their production and returns’.

Bbole said fish meal, which is the major ingredient is imported and the fluctuation of the Kwacha to the dollar determines the cost of feed to a great extent. This has made this key ingredient expensive in times of steep Kwacha depreciation adding that if the kwacha appreciates, the cost of feed is equally expected to reduce.

He said other ingredients such as soya beans and wheat bran are and can be sourced locally, noting that fish meal is imported from countries that have a sea coast as they usually produce the commodity at competitive prices.

Speaking in an exclusive interview with the Zambian Business Times – ZBT, Bbole said there is need to find alternative sources of protein for fish in order to reduce the dependency on imported fish meal. Our local researchers and research institutions such as universities can do more in this area.

He said farmers should invest in the acquisition of Pallet Mills which are able to produce floating pallets as that may help reduce the cost of feed. Bbole told ZBT that natural water bodies have maintained the same amount of fish production which is not tallying with the demand for fish and the population that has continued to grow.

He noted that if natural water bodies are well managed, the production of fish in Zambia can increase adding that allowing fish to breed and cutting down on illegal methods of fishing can cushion the deficit.

Bbole cautioned that many farmers are getting into fish farming without acquiring the necessary knowledge, this leads to sub-optimal yields, therefore the need for more learning institutions to provide the relevant information to people who want to venture into fish farming.

He said capital is also a challenge for most people as fish farming is not an easy venture to get into. Fish farms have different levels of investment depending on the target production levels, but a significant funds are required especially if one has challenges with water resources and is dependent on underground water or a borehole.

 

A Fish Solutions and Consultancy company has

Midlands Breweries Limited has sued Professional Insurance Corporation Zambia for failing to compensate the company for the loss of funds which were stolen by its employees who were covered under a fidelity guarantee policy.

The company is claiming the payment of monies insured with the insurance company amounting to K1.2 million as compensation arising from theft of funds by Midlands Breweries company’s servants, damages for breach of the insurance policy as a result of Professional Insurance’s refusal to compensate the company, interest on the amount owed, any other relief the court may deem fit and costs of the action.

Midlands Breweries insured its business funds with and by Professional Insurance under the Fidelity Guarantee Policy No. 208/20/2018/00013.

The company’s business money was allegedly stolen by the Breweries company’s then assistant accountant, the cashier and other staff in the accounts department through fraudulently false accounting and money laundering.

At the time the thefts occurred, Midlands Breweries was still covered by the Fidelity Guarantee Policy amounting to K500,000 per year of the cover.

Under defined events of the cover, the policy covered “loss of money and/or other property belonging to the insured or for which they are responsible stolen by an insured employee during the currency of this section. Direct financial loss sustained by the insured as a result of fraud or dishonest of an insured employee all of which occurs during the currency of this section which results in dishonest personal financial gain for the employee concerned”.

The company incurred losses amounting to about K222,677 in 2017,K1,822,217 in 2018 and K1, 497 in 2019 due to the theft of the company money by the said employees.

The funds stolen were insured for the years 2017, 2018 and 2019 and the maximum payable per year was K500,000 and from the audit findings, K222,677 is payable for 2017, K500,000 is payable for 2018 as well as another K500, 000 for 2019 therefore the total claim for the theft Midlands Breweries suffered from its employees is K1, 222, 677.

The loss arising from the theft was brought to the insurance company’s attention in line with the policy requirements but no payment has been made to date, Professional Insurance was served with documentation showing that the employees who stole the money were being prosecuted but justified the refusal to pay saying “the triggers of a fidelity guarantee policy are theft by an employee for personal financial gain. Therefore, theft has to be proved for the policy to respond”

According to a statement of claim seen by the Zambian Business Times – ZBT, Midlands Breweries claims there is no clause that states that the policy must be proved through court proceedings particularly a conviction in a criminal trail of the employees as suggested by the insurance company for the policy to respond or be paid.

Midlands Breweries has repeatedly challenged Professional Insurance to point to the clause in the fidelity guarantee policy document which suggests the requirement of proof of theft through conviction of the employee and the insurance company has failed/refused and neglected to do so.

Professional Insurance in its response has introduced new and unreasonable conditions to the policy which have no basis and changed the reason for the refusal to pay the entire amount on grounds that the losses incurred were discovered and reported beyond 90 days and hence 50% of the deducted when in-fact the said theft occurred at different times some of which occurred within 90 days.

The company has suffered loss, damage and inconvenience and continues to suffer loss, damage and inconvenience as a result of Professional Insurance’s refusal to compensate the company as per the policy.

Midlands Breweries Limited has sued Professional Insurance