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The Energy Ministry has exclusively disclosed to

HH opts for experienced hands for Minister of Finance

President Hakainde Hichilema – HH has opted for experienced hands and appointed 65 years old former Finance Minister Dr. Situmbeko Musokotwane as new Minister of Finance.

Dr. Musokotwane returns as Finance Minister after serving in the same portfolio in the Movement for Multi-Party Democracy (MMD) Government between 2008 and 2011.

In his first speech as Minister of Finance, Dr Musokotwane stated that this was his forth time returning to the ministry of Finance. He is no novice at the ministry and is perhaps the best suited to assist President Hichilema who has mostly spent his time outside government in the private sector. Dr. Musokotwane is seen as key to help the new government maneuver the complex and difficult to drive civil service.

In sharing some of his key objectives as he returns to the Ministry of Finance, Dr. Musokotwane pledged to focus on stabilizing the exchange rate, cut down the escalated cost of living and work at aggressively creating jobs for the youths.

He also said the UPND government would focus on making sure the mining sector expands by creating a good environment for more new investments to create more jobs in the country. He pledged to expand mining production from the current 850k tons per annum to 2 million tons per annum in five years and 3 million tons in ten years.

Dr. Musokotwane also said the government would make sure that there is value addition by persuading credible investors to invest in the Multi Facility Economic Zones to start producing value added copper products such copper cables and other copper products.

He said Government would engage the creditors to see if the country can restructure its debt by say paying at a slow pace over a stretched period or tenor to ensure that the country has space to do other tangible economic investments with the national budget.

Dr Musokotwane has pledged to timely engage with the IMF stressing that they are needed for the country to stand a chance of restructuring its debt and improving investor and creditor confidence.

Dr. Musokotwane is a qualified economist with a PhD in Monetary Economics, MA in Monetary Economics, and a BA Economics. He is an Alumni of the University of Zambia and Hillcrest National School of Livingstone. He has vast work experience both in Zambia and with multilateral international organizations.

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President Hakainde Hichilema - HH has opted

Companies

Mount Meru sued for failure to pay $268,000

Nakoda Investment Limited has sued Mount Meru Petroleum Zambia Limited for failing to pay US$ 268,000 due on 5th December 2020 for a piece of land that the petroleum company acquired. The land in question which Mount Meru Petroleum Ltd defaulted on payment is around 1,413 square and is situated in Lusaka.

According to court documents seen by the Zambian Business Times-ZBT, “On the 4th of August 2020,the plaintiff and the defendant entered into a written contract of sale of the said stand No.S/LUSAK/3195483 whereby the plaintiff (Nakonda Investments) was the vendor and the defendant (Mount Meru) was the purchaser”.

Mount Meru Petroleum Ltd paid USD 33,500, which is 10% of the price of the land upon receiving a certified copy of the certificate of title from Nakoda Investment Ltd as proof of ownership thereof as stated by the contract.

It was agreed between the two parties that Mount Meru Petroleum Ltd would pay 80% of the purchase price translating to USD 268, 000 on or before 5th December 2020.

Nakonda complained that “Despite numerous requests and reminders, Mount Meru Petroleum Ltd failed, refused, neglected and ignored to settle the said USD 268,000 which led to Nakoda Investment Ltd, through its lawyers,writing a formal demand letter requesting payment of the said amount on the 19th of April 2021”.

On 22nd April 2021,Mount Meru Petroleum Ltd responded to Nakoda Investment Ltd by raising extraneous issues concerning ZESCO, Lusaka City Council and the neighbouring plot which issues are extrinsic to the contract and which Mount Meru Petroleum Ltd was fully aware of or ought to have been fully aware of at the time of executing the contract.

On the 27th April 2021,Nakoda Investment Ltd through its lawyers wrote to Mount Meru Petroleum Ltd to the effect that the land in question was properly described in the contract of sale and Mount Meru had clear knowledge of the land and its adjoining lands .

On 3rd May 2021, Mount Meru’s advocates responded to Nakoda Investment Ltd outlining further excuses for non payment which excuses are extrinsic to the contract and purported that Mount Meru had opted to rescind the contract and made a demand for a refund of the deposit of USD 33,500 which was paid.

Nakonda argued that “The purported rescission is null and void ab initio and of no legal effect whatsoever on the following grounds: There has been no breach of any term of the contract in question by the Nakoda Investment Ltd to warrant any rescission”.

Nakoda Investment Ltd is also demanding for nullification of the purported rescission of the contract by Mount Meru Petroleum Ltd for being void ab initio and being of no legal effect based on the fact that the legal requirements for rescission have not been satisfied by Mount Meru Petroleum Ltd. The matter is still at the high court and awaiting trial.

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Nakoda Investment Limited has sued Mount Meru

Agribusiness

NCZ awaits policy direction on fertilizer price cut

Nitrogen Chemicals of Zambia (NCZ) says the United Party for National Development (UPND) government is yet to communicate how it will ensure the reduction of fertilizer prices from K700 per 50kg bag to K250.

The farming season for many local farmers who depend on rains is fast approaching, with expectant farmers wondering if the reduction will be effected from this farming season. Meanwhile, NCZ Sales and Marketing Manager Cleopatra Chanda said the company is not yet aware of the policies that the new government will put in place in order to reduce the cost of fertilizer.

Chanda said the price of fertilizer had gone up due to the depreciation of the Kwacha, so the company awaits to hear the policies that the new UPND government will put in place to ensure that prices of fertilizer go down.

Speaking in an interview with the Zambian Business Times – ZBT, Chanda said the company imports some of the raw materials which are used in the manufacturing of fertilizer and the imports are made using US dollars and not the kwacha therefore leading to high prices.

She mentioned that a 50kg bag of D Compound is currently selling at K660 wholesale price and K665 retail price. She said the company is still waiting for communication on the current price of Urea but a 50kg bag was previously selling at a wholesale price of K730 and retail price of K735.

She added that the wholesale price only applies when one is buying atleast 50 bags of fertilizer. Chanda noted that production is going on smoothly since the injection of K684 million into the Nitrogen Chemicals of Zambia by the Industrial Development Corporation-IDC to boost its production and overall company performance.

During campaigns leading up to the 12 August 2021 elections, in a message to his supporters, then main opposition candidate and now republican President Hakainde Hichilema pledged that when his party forms government in August this year, which it did, it would lower the price of a 50kg bag of fertilizer, which was costing them between K700 and K800 to K250.

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Nitrogen Chemicals of Zambia (NCZ) says the

Zambia posts another trade surplus

Zambia’s foreign exchange position has further been boosted by yet another trade surplus for the month of July 2021. The country recorded a trade surplus of K3.6 billion (about US$218 million) in July 2021 compared to a surplus of K5.7 billion in June 2021 indicating a 36.1% decrease.

Zambia Statistics Agency (ZamStats), interim statistician General Mulenga Musepa said exports mainly comprising domestically produced goods, declined by 5.1% to K18.5 billion in July 2021 from K19.5 billion in June 2021.

Mupesa said during the ZamStats monthly bulletin attended by the Zambian Business Times – ZBT that this was on account of decreases in export earnings of Raw materials, Consumer goods, Capital goods and Intermediate goods by 17.8 , 14.7, 3.4 and 2.7%, respectively.

He said the imports increased by 7.6 % to K14.9 billion in July 2021 from K13.8 billion in June 2021 as a result of a 20.1 and 16.9 % increase in import bills of Consumer goods and Capital goods respectively

“Traditional Exports (TE’s) which are Copper related export earnings increased by 3.7% to K13.4 billion in July 2021, up from K12.9 billion in June 2021.

“In terms of share in total exports, TEs accounted for 72.5 % of export earnings in July 2021,” Mupesa said. He said Non Traditional Exports (NTE) earnings decreased by 22.5% to K5.1 billion in July 2021 from K6.6 billion in June 2021.

Mupesa said in terms of share in total exports, NTEs accounted for 27.5% of total export earnings in July 2021. He said export earnings from refined copper in July 2021 increased by 3.9 % to K13.4 billion from K12.9 billion in June 2021.

Mupesa said the increase is attributed to the 4.5% increase in export volumes from 60.2 thousand tonnes in June 2021 to 62.9 thousand tonnes in July 2021.

“Copper prices on LME market for the corresponding months decreased by 1.9 percent to US$9,433.6 per tonnes in July 2021 from US$9,612.4 per tonne in June 2021

“The volume of refined copper exported for the period January to July 2021 was 510.0 thousand tonnes while that of 2020 for the same period was 501.8 thousand tons representing a 1.6% increase,” he said.

The cumulative total trade for the period January to July 2021 was K214.7 billion while that of 2020 for the same period was K117.1 billion, representing 83.3% increase.

Mupesa also said agricultural products accounted for a share of 37.2 % of Zambia’s NTEs in July 2021 compared to 30.2% in June 2021.

He said export earnings from agricultural products decreased by 4.8 %to K1.9 billion in July 2021 from K2.0 billion in June 2021.

The major export commodities were Oil-cake of soyabean accounting for 14.1 percent, Tobacco, not stemmed/stripped (12.1%) and other raw cane sugar (11.4%).

Mupesa said the Non-agricultural products accounted for a share of 62.8 % of Zambia’s NTEs in July 2021 compared to 69.8% in June 2021.

“Export earnings from non-agricultural products recorded a decrease of 30.2% to K3.2 billion in July 2021 from K4.6 billion in June 2021.

“The major export commodities were Sulphur of all kinds accounting for 7.9 percent, Rubies, sapphires and emeralds (7.3%) and Ferrosilico-manganese (7.0 %),” he said.

Zambia’s major export products in July 2021 were from the intermediate goods category mainly comprising copper anodes for electrolytic refining and Copper blister accounting for 81.1%.

Exports from the consumer goods, raw materials and capital goods categories, collectively accounted for 18.9% of total exports in July, 2021.

The major export destination in July 2021 was Switzerland, which accounted for 37.9% of the total export earnings with the main export product being copper anodes, accounting for 53.7% of total export earnings from that country.

Singapore was the second main destination of Zambia’s exports accounting for 18.8% of the total export earnings with the major export product being copper anodes, accounting for 70.9% of total export earnings from that country.

China was the third main export destination accounting for 14.4% of the total export earnings and the major export product was copper anodes, accounting for 46.3% of total export earnings from that country.

Congo DR was the fourth main export destination accounting for 10.1% of the total export earnings and the major export products were, Sulphur of all kinds accounting for 13.6% of total export earnings from that country.

South Africa was the fifth main export destination accounting for 2.7 % of the total export earnings with the major export product being Bullion semi-manufactured forms (gold) accounting for 21.0% of total export earnings from that country.

These five countries collectively accounted for 83.9 percent of Zambia’s total export earnings in July, 2021.

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Zambia’s foreign exchange position has further been

Lifestyle

I have no comment – Laura Miti on being left out of HH cabinet

Human Rights Defender and Alliance for Community Action Executive Director Laura Miti has refused to comment on assertions that she is speaking out on perceived ills in the United Party for National Development – UPND government because she has been left out of the soon to be announced cabinet by President Hakainde Hichilema.

Mitti responded that “ I have no comment and I never comment on such matters”. This was in response to a question that some ruling UPND supporters have accused her of speaking out because of being bitter after realizing that she has been left out of the soon to be announced cabinet.

Miti emphasized that only holders of office that have been officially appointed must be the ones who give information about the affairs of the head of state and not party functionaries.

Speaking in an interview with the Zambian Business Times – ZBT, Miti stated that this stance can be checked if there are some legal backing with qualified lawyers. She however refused to comment on assertions that she was bitter because she has been left out of HH’s cabinet which is expected to be announced soon.

Miti caused a social media stir when she questioned why the ruling UPND Secretary General Batuke Imenda (a Political Party official) was the one to issue a statement that newly inaugurated President Hichilema would not relocate from his private mansion in New Kasama area of Lusaka to Nkwazi house at State House when his is not a government official.

Nkwazi house is and had been the official residence designated for the serving Zambia head of state and President. President Hichilema was also reported to have opted to use a private vehicle after being sworn in, an action that has been reported to have destabilized state security operatives.

She question that “Why would the UPND Secretary General inform the nation where the President will live? Not his role! If the substantive spokespersons are not in place, then let the administration keep quiet about certain matters. There should be a clear separation between party and state. No more anarchy please”.

Imenda has since retracted his statement and clarified that the statement was his own opinion. A scenario that has added for the need and calls for President Hichilema to timely appoint substantive officials to put an end to this “anarchy”.

Miti later on posted on her social media page that “I hope that, one day, our economy will improve so that we don’t have half the country wanting to be Ministers, Ambassadors and Spokespersons in a new government. The stampede for jobs being reported right now is the direct result of government being the main employer and source of business. Gosh, political jobs are even, disturbingly, seen as a source of wealth”.

She further stated that “Anyhow, my hope is that President Hichilema will announce a lean Cabinet – we actually do not need that many Ministers. The reward culture is what kills administrations. It means people who may have contributed long, hard or recognisably to get a President elected, get jobs ahead of people who would better execute the demands of office. That’s not good for the country.

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Human Rights Defender and Alliance for Community

Zambia can resolve its debt challenges without IMF

Zambia has enough resources and local but internationally renowned expertise that can solve the external debt challenge without the need of getting on an International Monetary Fund – IMF extended credit facility. This follows indications that the new UPND government is set to sign up and get the country on an IMF bail out package.

Patriots for Economic Progress – PeP President Sean Tembo who is also a financial expert has indicated that if the tax leakages were sealed, the country would not need to go for an International Monetary Fund (IMF) programme as it will be able to meet its debt obligations with the available resources. He said PEP was not in support of the country being put on an IMF programme because of its implications on the general economic management.

Tembo explained that when a country subscribes to an IMF programme, it commits itself to run the economy in accordance with the IMF conditions of which some of them were retrogressive. “When you subscribe to an IMF programme you are basically committing yourselves to run your economy in accordance with the IMF conditionalities.

An IMF programme can run anywhere from 12 to 60 months and what you are essentially saying is that during the period of the IMF programme, you are going to handover the running of the economy to the IMF,” he said.

Tembo said, “When you look at the conditions for an IMF programme, you will realise that some are very retrogressive to the proper administration of an economy especially a developing economy.

He said the IMF believes in running the economy as if you are running a private profit seeking company, but you cannot run a nation like that because there are other social considerations that you need to put onboard.

He said for example, if the country goes on an IMF programme, it would mean that some Government programmes such as the social cash transfer and the farmer input support programme (FISP) would have to be discontinued as a requirement of the IMF.

Tembo said some of the conditions might be that you fully or partially privatize parastatal entities that are loss making among others.

“So if you look at those conditions and were we are, it would not be a good idea measure to implement because when you look at things like social cash transfer. And when you look at how the IMF disburses funds, you realise that they do not disburse the money as a lamp some, they disburse in small instalments based on your meeting their conditions,” he said.

Tembo indicated that, “When you look at money that comes in installments, as a nation there is very little you can do with it, you cannot even refinance your external debt such as the Eurobond. So government may end up spending that money on other things like recurrent expenditure and you find that you remain with the huge IMF loan, which needs to be repaid back because it is a loan and yet you fail to point at what you used that money for.

“If you look at our country’s challenge, you realise that there is largely over borrowing and so if our biggest problem is over-borrowing, then how can the solution to that borrowing be additional borrowing even if that additional borrowing is from IMF, it simply does not make sense.

“We are hopeful that the new government will not go the IMF way because such a root is retrogressive,” he added.

Concerns are now being resounded on the pros and cons of getting on an IMF program. Zambia has had a difficult historical relationship with the fund following the hard experiences during the Structural Adjustment Program – SAP implemented in the late 1980’s which eventually resulted in social and harsh economic challenges for ordinary Zambians.

Indications are that the IMF has since reformed from the proscription based SAP era but it still remains to be seen if their programs actually benefit the ordinary citizens of the countries that get on their programs. Other experts have called on the country to put together a well trained and experienced negotiations team from Zambia to ensure that the program if gotten, is fit for purpose.

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Zambia has enough resources and local but

Politics

HH can appoint cabinet before MP’s are sworn in

Prominent constitutional lawyer and state counsel John Sangwa has weighed in the current debate that newly inaugurated President Hakainde Hichilema has delayed announcing his cabinet pending the swearing in of members of parliament.

Sangwa has clarified that the president can appoint his cabinet even before the swearing in of elected Members of Parliament (MP), bring closure to views that the perceived delay in announcing cabinet is a result of legal impediments.

The constitutional lawyer however clarified that said the elected Members of Parliament cannot transact the business of the house or take their position as members of parliament until they have taken oath or have been sworn in, as required by law.

Speaking in an exclusive interview with the Zambian Business Times – ZBT, Sangwa said the oath is a necessary requirement before the elected members of parliament can start performing the functions of their office.

He said one is a member of parliament the moment they are declared duly elected or winner of a parliamentary seat but the swearing in is a formality which is required before one begins doing the actual work as an MP.

“Just like ministers, even if he appoints them, they won’t just assume office they have to be sworn in, to take oath, so a person that is elected member of parliament once nominated minister he will not assume the office unless he has taken oath”, he said.

Sangwa said there is no timeframe set in which the president should appoint his cabinet but the earlier one does it, the better. “For example, President Lungu must have mentioned some cabinet ministers when he was sworn in in 2016, on the same day he was able to identify a few people as his ministers so there is really no timeline set, it is all based on the discretions of the president”, he said.

President Hichilema has been accused of delaying the announcement of his cabinet when its now over one week from the time he was pronounced winner of the 12 August 2021 polls by the Electoral Commission of Zambia – ECZ.

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Prominent constitutional lawyer and state counsel John

Kwacha appreciation leads to slight inflation decrease

The recent appreciation of the Kwacha and the subsequent adjustment in retail prices of Motor vehicles and other imported products in the inflation basket have contributed to the decrease in Zambia’s Annual inflation rate for August to 24.4%

Zambia’s annual inflation rate for August 2021 has decreased to 24.4% from 24.6% recorded in July 2021. This indicates that on average prices of goods and services increased by 24.4% between August 2020 and August 2021 reflecting the easing of inflation for non-food items.

Zambia Statistics Agency (ZamStats), interim statistician General Mulenga Musepa said the decrease in the annual rate of inflation was mainly attributed to price movements in non-food items.

He was speaking during the ZamStats monthly bulletin for August 2021 attended by the Zambian Business Times-ZBT. Some of the motor vehicles sort out for included Toyota Hilux, Toyota corolla, Nissan Almera 1.5 L Acenta, second hand vehicles and Nissan pick Hardbody.

The price of a Toyota Hilux reduced from K1,426,950 in July to K1,085,775 in August (11.77%), Toyota corolla reduced to K885,500 in August from K1,275,195 in July (34.61%), the Nissan Almera 1.5 L Acenta reduced to 553,168 in August from K622,336 (11.88%).

The price of the Nissan Pick hardbody reduced from 697,840 to 580,233.50 in August (3.34%) while the price for second hand vehicles reduced to K82, 328.58 from K85, 924.25 in July 2021 (27.20%).

“The annual non-food inflation rate for August 2021 was recorded at 16.3 percent from 17.0 percent in July 2021. The decrease in inflation rate was mainly attributed to Price decreases in Purchases of Motor vehicles (Toyota Hilux, Toyota corolla, Nissan Almera 1.5 L Acenta, Nissan Hardbody),” Mupesa said.

He said the annual food inflation rate for August, 2021 was recorded at 31.6 percent compared to 31.2 percent recorded in July 2021, an increase of 0.4 percentage points.

Mupesa said this was mainly attributed to increases in prices of food items such as Meats (Brisket, Mixed Cut, T-bone, Beef Sausages, Goat meat, chicken frozen and chicken live); and Fruits (Oranges, Lemons, Bananas, Apples).

Among the most essential food items, Beef sausages the year on year inflation rate of 67.06%, Brisket 57.71%, Mixed Cut 59.72%, T-bone 60.16%, Goat meat , chicken frozen 58.90%; and chicken live 88.60% and Fruits (Oranges 38.20%, Bananas 23.82%, Apples 43.97%).

Mupesa said an analysis on a monthly basis, of retail prices between July, 2021 and August, 2021 shows that the national average price of a 25 kg bag of Breakfast Mealie Meal decreased by 0.21% from K141.77 to K 141.47 while the national average price of a 25 kg bag of Roller Mealie Meal increased by 0.5 % from K110.90 to K111.45.

He said the national average price of a 20-litre tin of Maize Grain increased by 2.45% from K58.38 to K59.81.

Mupesa said on an annual basis, the analysis of retail prices between August, 2020 and August, 2021 shows that the national average price of a 25kg bag of Breakfast Mealie Meal increased by 10.69% from K127.81to K141.47 while the national average price of a 25 kg bag of Roller Mealie Meal increased by 12.87%nfrom K98.74 to K111.45.

He said the national average price of a 20-litre tin of Maize Grain increased by 15.13 percent from K51.95to K59.81.