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Agribusiness

Zambian Fertilizer, a blending plant under the Export Trading Group – ETG contracted to ensure distribution of farming inputs across the country has Confirmed that they have delivered over 60% of both basal and top dressing fertilizers to the four targeted provinces namely Luapula, Western, Central and Copperbelt.

Company Country Head Rajendran Ganapathi said Zambian Fertiliser remains committed to delivering 100% of its given target within the contractual timeline.

According to information made available to the Zambian Business Times-ZBT, Ganapathi said he is positive that just like the 2020/2021 farming season where the company managed to deliver farming inputs on time as per contractual delivery timeline, this year will not be different.

Ganapathi said this development has cheered government as the early delivery of inputs will enable timely distribution of inputs to the farmers.

Zambia has registered another bumper harvest in the 2020/2021 cropping season which has recorded notable increase in maize and other key commodities.

ETG in 2017 commissioned the construction of a state-of-the-art blending facility – Zambian Fertilizers in the Lusaka South Multi-Facility Economic Zone. The main purpose of the plant was to increase the company’s capacity to blend more fertilisers to meet the increasing demand of both local and international markets.

The Zambian Fertilizer plant was commissioned on 15 December 2017. It was envisaged to increase production from the current 80 tonnes per day at ETG’s old plant which was located along Mukwa Road to 350 tonnes per day. The plant produces blended fertilizers which are then distributed to different provinces blended to the approved levels.

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Zambian Fertilizer, a blending plant under the

Agribusiness

The Crushers and Edible Oil Refiners Association (CEDORA) says despite the association proving that cooking oil is more expensive in countries like South Africa when compared to Zambia; some individuals have refused to accept this fact.

Association Director Aubrey Chibumba said these individuals instead want to import packed refined cooking oil on basis that the locally produced cooking oil is expensive.

Chibumba said this group of individuals has however failed to provide information to CEDORA on how they will be able to import cooking oil from South Africa or anywhere in the region without incurring costs through transportation and payment of taxes and be able to sell it cheaply in the country.

According to information availed to the Zambian Business Times-ZBT, Chibumba said the association believes that the only reason cooking oil prices have gone up is because of the exchange rate that has weakened overtime and this is something that the Bank of Zambia is responsible for.

He said the challenge faced in an election year arises from opportunism that is short term and no real interest in the economic health of the country’s economy adding that unlike traders, the association has committed capital in its processing plants, its people and in the oil seed value chain.

He further said this has seen soya bean cultivation grow from less than 100, 000 MT per year in 2014 to the expected bumper harvest of over 300, 000 MT this year.

He noted that 360, 000 MT of soya bean were produced in 2016 but the poor prices resulted in over 100, 000 small-scale farmers exiting the cultivation of soya beans and the national cultivation dropped to 240, 000 MT per year after that price crush.

He mentioned that this year’s crop from small-scale farmers is expected to exceed the crop from commercial farmers for the first time, which has been made possible because small-scale farmers have noticed that crushers are paying good prices for soya beans.

Chibumba said soya beans is currently trading between K9 and K12 per Kg compared to the last season when the price closed at K5/Kg adding that this is the momentum that is needed to sustain the good soya beans prices currently prevailing on the market.

He said the association has proposed solutions that must be implemented before the 2021/2022 cultivation season which include small-scale farmers having access to the best prices and will work with the Grain Traders, ZNFU, aggregators and other stakeholders to ensure that small scale farmers are not paid below market prices.

Other proposed solutions include structured exports of oil seeds and market access support among other factors.

Chibumba said the country has huge opportunities within the agricultural space such as the oil seed cultivation and processing, a sector which has over 800,000 MT of installed soya bean crushing capacity with 2 new plants under construction which are likely to be operational by the end of the year.

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The Crushers and Edible Oil Refiners Association

Markets

The Lusaka Securities Exchange (LuSE) has finally launched the long awaited mobile trading platform dubbed MyLuSE Application, which will allow market players to buy or sell their securities online.

The Online Platform allows the public to trade shares, bonds and other financial instruments on the LuSE. This platform is now available on your phone via USSD and mobile application, your computer or your tablet.

Ministry of Finance permanent secretary for budget and economic affairs Mulenga Pamu said it is Government’s aim to ensure that Zambians participate actively in utilising the financial instruments that are made available in the market.

Speaking during the launch of the LuSE online application, which the Zambian Business Times-ZBT attended, Dr Pamu said Government is aware of the lower participation levels in the Capital Markets, especially on the stock market.

“The Online Platform will simplify the often misconceived idea that the stock market is complex, risky or only for a select group of wealthy people. The simplicity of the online platform is its accessibility; anyone with a phone and mobile money account can access the platform,” he said.

Dr Pamu said market players can purchase securities on the LuSE such as shares or bonds adding that the trading of shares on the LuSE is relatively easier to understand in comparison to bonds.

He said in addition to being able to buy and sell securities on the LuSE, the platform will further develop into an educative platform that will assist all users in understanding and demystifying myths about the stock market.

Dr Pamu said to further enhance participation on the market, the government is committed to ensuring financial education is a top priority, ensuring financial literacy is inculcated into the minds of the youth.

“As government we are supportive of this initiative and hope that the introduction of this platform will stimulate more activity on the stock market. I also wish to encourage all players in the market to make a deliberate and concerted effort to support this initiative,” he said.

LuSE Board chairperson Raphael Kasonde said the LuSE’s development and launch of the MyLuSE mobile application is in keeping with the objectives of its strategic plan and represents a significant step taken towards meeting the LuSE’s commitment to keeping abreast of important trends in the capital market industry.

“A principal goal of this effort is to keep in mind the interests of market players and ensure that both resident investors and those based abroad are offered an improved and user-friendly mode of accessing the financial products being provided on the LuSE.

“Further, the LuSE, with MyLuSE application, aims to enhance the levels of financial literacy, amongst the general public, by reaching out to a wider number of potential and current investors, home and abroad through the use of their mobile phones,” Kasonde said.

He observed that over its 27-year existence, activity on the LuSE has been predominantly driven by institutional investors who have, amongst other things, benefited from the LuSE being a secondary market for the trading of government and corporate bonds.

“I am confident in saying that the MyLuSE Mobile application, with its ease of use and convenience, will facilitate the growth of retail investor activity on the market.

“The LuSE Mobile Trading Application is a digital platform that allows users to have direct access to the LuSE market,” Kasonde said.

He said the platform enables the LuSE to target a greater number of local retail investors in urban as well as the more remote parts of the country.

Kasonde said not limited to local investors, the platform allows foreign investors to conveniently invest in companies that are listed on the LuSE from any part of the world.

“The LuSE anticipates that as the use of the platform by investors of every kind grows, appetite for new financial instruments to invest in will also grow,” he said.

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The Lusaka Securities Exchange (LuSE) has finally

Markets

Government has unveiled the first ever board of directors for the Zambia Statistics Agency (ZAMSTATS) with a call for the directors to be committed to the task.

The board of directors which is chaired by Charles Mpundu is comprised of 9 members including Dr Jeremiah Banda, Ms Bwalya Salamu from the Attorney general’s office, Isaac Muhanga from Bank of Zambia and Patricia Mulenga from EcoBank.

Others are Dr Mirriam Chiliba from the University of Zambia (UNZA), William Mayaka from UNZA, Elizabeth Musukwa from Cavendish University and Charles Banda from Ministry of National Development Planning (MNDP).

Speaking during the unveiling of the board of directors, Planning minister Alexander Chiteme said the unveiling of the board of directors represented a significant milestone in the government’s statistical reform programme.

Chiteme said it represented the beginning of a new era in the development of integrated national statistics; an era of enhanced coordination and dialogue in the production, dissemination and use of official statistics, and an era of a knowledge society anchoring its policies and decision-making on a strong statistical foundation.

“The attainment of the foregoing will require a strong and visionary board which I am confident you comprise, as the task is huge. Let me remind you that you will not be taking over from another board as you are the first ever-board of the new organization,” he said.

Chiteme said the board is one of the most serious boards because it will be responsible for all statistics that will be produced in the country.

He said, “Therefore I urge you to acquaint yourselves with the Act and operations of the Agency, to effectively conduct your duties as a Board.

“Chairperson your team has been carefully selected to bring to the table unique skills and experiences that will be of value to the full implementation of the Act and proper functioning of ZAMSTATS.

Chiteme also implored the new board members to familiarize themselves with the ZAMSTATS Act, in order to effectively carry out their duties.

The Minister noted that the board stands to benefit from the vast experience of successful similar boards in the African and European region.

And Mpundu said the board will aim and work to not only meet the stakeholder expectations but to also surpass them for the benefit of the nation as a whole.

He said the board will ensure that it upholds professionalism, transparency, accuracy and quality of statistics that is expected but in process improve the integrity of data collection and dissemination process that will culminate in raising of confidence in the system.

“In this regard, we will endeavor to ensure that ZAMSTATS adheres to the international best practices and ensure we move up in terms of the World Statistical Index. The importance of accurate and timely statistics cannot be overemphasized given the impact that statistics have on decision making,” he said.

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Government has unveiled the first ever board

Markets

The government through the Ministry of Finance is working with the Lusaka Securities Exchange (LuSE) to introduce Retail Bonds which are issued specifically to retail investors.

Ministry of finance permanent secretary for budget and economic affairs Mulenga Pamu explained that retail Bonds are bonds that are specifically issued for retail investors and will be denominated in Zambian Kwacha and can be bought in relatively small intallments.

He noted that both government and corporate bonds traded on the secondary market of the LuSE demand significantly higher investment amounts than purchasing shares and because of this, most of the general public have found it difficult to meet the minimum investment amount for purchasing bonds.

Dr. Pamu Mulenga said with the introduction of the retail bond, Zambians will be able to purchase a retail bond with as little as K500 in comparison to the current K 30,000 for a competitive government bonds.

“In addition to the lower investment amount, retail bonds also encourage domestic participation, promotes financial literacy, gives citizens an alternative form of savings, away from the traditional bank account and offers a fixed interest that ensures the aspect of predictability for investors.

“Once the retails bonds are launched, they will be made available to the LuSE online trading platform,” he said.

LuSE board chairperson Raphael Kasonde said LuSE has embarked on introducing market development projects to ensure availability of a greater diversity of financial securities to the investing public.

He said amongst the LuSE’s market development projects is the introduction of retail bonds which are ordinary shares broken down into smaller units that cater to the needs and purposes of retail investors.

“Retail Bonds will enable retail investors to participate in Government Bond purchases. With the MyLuSE platform being launched today, Retail bonds will also be accessible using a mobile phone and mobile money platforms to make purchases,” Kasonde said.

He said LuSE was also working on the Commodities Market, which was launched by Minister of Finance, on behalf of the Vice-President, in February 2020.

Kasonde said the Commodities Market presents investors with the opportunity to trade commodities with the MyLuSE App on the market using warehouse receipts with the Spot Market being the initial step taken in the development of the Commodities market.

He said the LuSE is aware that there is demand for derivatives in the agricultural commodities market space where market players can also use the MyLuSE App to trade the derivatives by locking in a price and quantity of commodities for delivery at a future date.

“This demand is one that the LuSE will look to meet in the future with the involvement of all stakeholders,” Kasonde added.

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The government through the Ministry of Finance

Companies

Nitrogen Chemicals of Zambia (NCZ) says the K89 million that was released by government will clear all the 166 retirees that were being owed their retirement packages by the company. This will enable the company to now concentrate its efforts on revamping local fertilizer production

Company Sales and Marketing Manager Cleopatra Chanda said these are all the retirees that are currently being owed their benefit packages by the company and as soon as they are paid, the only retirees that will be owed are the ones retiring this year.

Speaking in an interview with the Zambian Business Times-ZBT, Chanda also mentioned that the company has plans to revamp Nitrogen Chemicals of Zambia and has activities in their strategic plan, which they expect their stakeholders to support.

She also noted that the company is currently producing fertiliser for the government, which is meant for the Farmer Input Support Programme (FISP) for the 2021/2022 farming season.

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Nitrogen Chemicals of Zambia (NCZ) says the

Companies

The Zambia Revenue Authority (ZRA) has assured local clearing companies that the issue of [a few] multinational companies controlling a higher percentage of clearing and forwarding sector in Zambia is being dealt with by the government.

This follows revelations by the Customs Clearing and Forwarding Agents Association of Zambia (CCFFAAZ) President Bruce Kaemba that about 10 multinational clearing companies control a whopping 95% of the local business while over 200 local companies are left to scramble for the paltry 5%.

Kaemba further revealed that one multinational clearing agent whose identity is withheld controls almost 50% of the market, a situation that is said to posse concentration and national security risk. Some local agents called on the Zambian anti-trust agency – the Competition and Consumer Protection Commission to take interest in the revelation.

In a statement made available to the Zambian Business Times – ZBT, ZRA Corporate Communications Manager Topsy Sikalinda said ZRA has decided to extend the pilot phase of the module to end of December 2021.

ZRA has confirmed that they have met with p the executive committees of all clearing associations from Nakonde and have resolved to proceed with the implementation of the Customs Clearing Agents Management Module (CAMM) in a phased approach.

ZRA Commissioner General Kingsley Chanda assured the clearing agents that all fears and speculations would be handled during the extended period adding that the module is being implemented in good faith unlike what is being portrayed by some sections of the clearing sector.

Chanda assured the agents that the module will not take away any business from them and the issue of multinationals controlling a higher percentage in the sector is being dealt with by government.

And on the question of what ZRA has done to prevent dominance of the clearing business by a few multinational, the ZRA Commissioner General stated that the authority presented a proposal to the government last year on how the local clearing companies could be supported and some of those recommendations have already been incorporated in the new Procurement Act.

On the fears that the new module would further shrink the 5% that the local agents have been left with, the ZRA statement stated that the Customs Agents Management Module has been implemented in various countries across the globe and it is part of ZRA’s modernization agenda as it provides for the electronic appointment of customs clearing agents by importers and provides for clearing agents to accept or reject the appointment by importers.

ZRA also reported that the agency has exceeded its target for the first four months of 2021 by collecting K5.8 million above target representing 29% above target for January to April 2021 addng that most of these collections are from direct taxes and customs duties.

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The Zambia Revenue Authority (ZRA) has assured

Agribusiness

The Zambian Fruit and Vegetable Traders Association has disclosed that government has lifted the ban on the importation of table potatoes and has allowed the importation quota of 2,000 metric tonnes.

Association President Bernard Sikunyongana said information on the shortage and sharp increase in prices of potatoes after the ban on the importation reached the government who have now decided to lift the ban.

Sikunyongana said government has seen the effect that the ban has had on the availability of the commodity and the price which has led to it’s decision adding that if the situation does not improve, the association will ask government to allow more imports.

Speaking in an exclusive interview with the Zambian Business Times-ZBT, Sikunyongana said the importation has began and he is thankful to government for allowing the imports as this will stabilise the availability and price of the commodity.

He also noted that Buya Bamba; one of the major producers of potatoes in the country has disclosed that it is unable to meet the demand.

He emphasized that the ban is a control measure meant to support and protect the produce of the local farmers so they can also have a market because people think imported products are better than local products.

He however said that when local farmers do not have the product, imports are allowed as the small quantities, which are available end up being very expensive and consumers suffer.

“It’s a must when a product is in short supply; we just have to open imports”, he said.

In February this year, government banned the importation of onion and table potatoes in order to prioritize and promote consumption of locally produced fruits and vegetables adding that the country was able to meet the demand for the two commodities.

This ban saw a shortage and sharp increase in the prices of the two commodities, which later led to government lifting the ban initially on the importation of onion, and now eventually on Potatoes.

A check on the market has indeed shown that local producers need to increase their volumes as the price for onions reduced shortly after the ban was lifted. It is also expected that table potato prices will also fall as the current high prices were largely driven by low supply.

 

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The Zambian Fruit and Vegetable Traders Association

Markets

Financial Analyst Trevor Hambayi has urged the Finance Minister to prioritize debt restructuring to a sustainable level to grow the international reserves as well as help stem the pressure on the Kwacha.

Hambayi noted that the international reserves were being depleted because of the need to pay debt, which is unsustainable. These huge payments are made in US dollars and this is resulting in perceptions and actual increased in demand for US dollar

According to the Bank of Zambia – BOZ, Gross international reserves declined by US$117.7 million to US$1.2 billion equivalent to 2.4 months of import cover at the end of 2020 from US$1.3 billion at the end of September equivalent to 2.3 months.

This decline was largely attributed to the need for foreign exchange interventions, debt service as well as Fuel and Fertilizer imports.

Hambayi observed that Zambia’s international reserves were being depleted because the country has to pay a debt that is unsustainable. Debt restructuring if executed would result in reduced monthly or scheduled payments but increased tenor, which would reduce the amounts being utilized for debt servicing.

He said this is the reason why the Government needs to restructure debt and ensure that it is sustainable and in a situation which it cannot put pressure on government to have to dip into the reserves to meet the debt liability payments.

“The first consideration the country should be having is restructuring our debt situation; our reserves are being depleted because we have to pay a debt that is unsustainable.

“So we need to restructure our debt so that the debt is sustainable and it is not in a situation of having to put us in pressure to dip into our reserves to meet those debt liability payments,” he said.

Hambayi who is also senior managing partner at the Development Finance Associates (DFA) said there is also need to work towards economic recovery in order to increase the Gross Domestic Product (GDP).

He said the increase in GDP will enable the country generate more revenue which will speak to creating a sustainable recovery in terms of international reserves.

“We need to work towards economic recovery. Our economy needs to recover so that we can increase our GDP, when we do increase our GDP, we will generate more revenue, which will speak to creating a sustainable recovery in terms of our reserves as well,” Hambayi said.

He said Government should ensure that the country gets the right returns from the mining sector. Hambayi said the long-term strategy is to be able to develop to support domestic investments.

He said government should support small scale miners to start to develop their mines so that they are producing copper for which the revenue that they are going to generate is going to remain in the country.

“That is a long term strategy and it is absolute. When the number of local investors increases, domestic investors increases beyond foreign ones then we will find that we are generating more revenue and foreign exchange that is staying in the country than the ones that are externalizing,” he added.

He said Government needs to put in place the right policies, which are speaking to supporting or incentivizing domestic investors and allow the private sector to be able to have access to finance to be able to invest in the mining sector or any other sector of the economy that is export oriented.

Hambayi said, “This will enable the economy to start improving and have an increased GDP growth as well as increased US dollar inflows. This is what is going to change the dynamics in our foreign exchange reserves.”

BoZ has started building up gold reserves and released a schedule of gold buying targets. Experts say this is a welcome move but there is need for a more aggressive gold buying programs and gold reserves build up.

Restructuring the debt remains the immediate solution to current economic challenges that would then be boosted by the medium to long term built up gold reserves. The ministry of Finance hired an international firm Lazard to help in the process of debt restructuring but no monthly updates are being made of its work to the public.

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Financial Analyst Trevor Hambayi has urged the