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Companies

The Metal Fabricators of Zambia Plc (ZAMEFA) has appointed Kangwa Bwalya as managing director of the company with effect from 14th September 2021.

Bwalya, the former ZAFFICO Managing Director – MD takes over from Rosetta Chabala who resigned from the company earlier this year.
The new ZAMEFA MD is a chartered certified accountant (UK and Zambia) with vast experience in the cable, mining and timber industries.
According to information made available to the Zambian Business Times-ZBT, he worked previously for ZAMEFA Plc in various senior leadership positions as Company secretary,  chief financial officer and acting managing director.
Bwalya then joined Rio Tinto as Business development manager-copper where after he worked for General Cable Corporation as chief financial officer-Asia Pacific.
“Most recently,  Bwalya was managing director of the Zambia Forestry and Forest Industries Corporation Plc (ZAFFICO).
“The board would like to thank Johann du Plessis for acting as the managing director of the company during the last couple of months, ” Company secretary BDO Zambia said.
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The Metal Fabricators of Zambia Plc (ZAMEFA)

Tech

The Zambia Information and Communications Technology Authority-ZICTA has disclosed that they have upgraded the quality of service monitoring equipment and now have capability to monitor this parameter on a town by town basis.

According to information made available to the Zambian Business Times – ZBT, the ICT regulator further revealed that there has been a rapid increase of network usage by more than 30% across all mobile network operators in Zambia since the advent of COVID-19 and admitted that this has resulted in poor Quality of Service (QoS).

ZICTA Acting Director General Eng. Mutale Mwenya said in order to mitigate the effects of the poor QoS, the authority has upgraded the quality of service monitoring equipment that has enhanced capabilities to monitor 4G/LTE networks in addition to 2G and 3G.

Mwenya said the authority has assigned to the service providers prime spectrum in the 800MHz band with conditions to increase network capacity as well as improve the quality of experience and QoS delivery adding that the authority will also be issuing more 5G spectrum in the next three years starting next year.

He said other strategies aimed at improving the QoS and fostering an enabling environment for innovation, e-commerce and other services that rely on ICTs put in place include increased QoS monitoring activities as the authority implemented a measurement mechanism of quality of service on a town-by-town basis to localise and address poor quality of service noting that this allows for identification of specific locations with poor quality of service.

Eng Mwenya added that the authority has also metedout penalties against erring mobile network operators over the past four years and increased engagements with the mobile network operators regarding underlying causes of poor quality of service.

He said the other intervention is the promotion of investment in the sector as the level of investment has a direct impact on the quality of service and experience therefore the authority has directed mobile network operators to reinvest in their networks including the acquisition of standby power solutions to mitigate poor quality of service.

The authority continues to advocate for reduction of corporate tax and zero-rating of ICT equipment in order to make funds available for reinvestment.

ZICTA is mandated under the Information and Communication Technologies (ICT) Act No.15 of 2009 to regulate quality of service in Zambia.

Section 67 of the ICT Act empowers the authority to prescribe standards as well as issue and review the quality of service guidelines in line with market dynamics and the first quality of service guidelines issued in 2010 mainly focused on monitoring voice services while the second quality of service guidelines issued in 2019 were to deal with increased data services.

The 2019 QoS review was mainly driven by the degradation in the QoS being provided by the service providers resulting in poor quality of experience to consumers of ICT services adding that the authority has been receiving numerous complaints on poor QoS from consumers across the country.

The authority has decided to conduct an inclusive review of the 2019 quality of service guidelines to take into account the views of all stakeholders especially the consumers and members of the public will be invited to comment on the QoS guidelines being revised.

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The Zambia Information and Communications Technology Authority-ZICTA

Mining

First Quantum Mining and Operations Limited (FQMO) Mining Division has sacked some of their employees over the ‘illegal’ protest they participated in over the changes in the staff pension scheme.

The National Union of Miners and Allied Workers (NUMAW) has disclosed that they are still engaging management at First Quantum Minerals Limited (FQM) on the possibility of them reinstating the 27 employees who were dismissed for holding a sit in protests over a newly planned and voluntary pension scheme for employees.

About 275 First Quantum Mining and Operations Limited (FQMO) Mining Division employees took what has been described as an illegal strike action at the Kansanshi Mine recently over the introduction of a private pension scheme and management of the mine raised charges against them and subsequently suspended them.

According to FQM, the pension scheme was the result of a mutual agreement between FQMO Mining Division management and all the unions representing the employees’ interests during the Collective Bargaining Agreement (CBA) negotiations of December 2020.

Speaking in an interview with the Zambian Business Times-ZBT, NUMAW President James Chansa said 209 of the 275 employees have since been reinstated while 26 are still under interrogation and 27 have been summarily dismissed.

Chansa said the 27 dismissed either were ring-leaders in the ‘illegal’ protest or had already been given final warning by the management. He noted that the dismissed employees have been given chance to appeal their judgement and it was the Union’s expectation that a good number of them could be reconsidered after their appeal is heard.

“For those who were dismissed, management was looking at case by case and some of them were ringleaders while others were on final warning considering the past records and so on.

“For the other 26, their fate is yet to be known because they are still under interrogation. But even for those who were dismissed were given chance to appeal and it is expectations that quite a good number will be reconsidered when their appeal is head,” Chansa said.

He said, “As a union, we regret that our members went on strike but at the same time we pleaded with management to extend amnesty to quite a number of them and thank God it happened.

Chansa said the union would continue to engage the mine on the possibility of reinstating the 27 workers.

On September 9, 2021, shift employees from the FQMO Mining Division downed tools at the start of the night shift of Thursday 9 September 2021. Subsequently, at the start of their shift, the day shift crew of Friday 10 September also downed tools. However, the majority of these day shift workers returned to work during the shift.

 

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First Quantum Mining and Operations Limited (FQMO)

Tech

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.

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One of the key power generation projects

Markets

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.

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Illegal cross border trade between Zambia and

Markets

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.

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ABSA Bank Zambia has announced a 21%-salary

Companies

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.

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Zambia Forestry and Forest Industries Corporation Plc

Lifestyle

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.

 

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The Cross Border Traders Association at Kasumbalesa

Markets

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.

 

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Finance Minister Dr Situmbeko Musokotwane has announced

Mining

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.

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Zambia's Copper and gold production during the