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Airtel Money has been awarded the World Customs Organisation – International Customs Day certificate of merit award and shield for rendering exceptional service to the international Customs community and for the ongoing support on domestic taxes during Covid-19 by the Zambia Revenue Authority (ZRA).

Airtel Head of Corporate Communications Yuyo Kambikambi said Airtel Money has been recognised as a key player in international trade matters due to its role in developing the ZRA e-payment platform during the Covid-19 pandemic that enables customers to seamlessly make online payments of domestic taxes amongst other services.

Kambikambi said on presenting the award to Airtel Money, ZRA Assistant Commissioner, Learning and Development, Customs Services Division Chikumbi Chama said ZRA was delighted to present the award as part of the January 26th International Customs Day celebrations.

Kambikambi said Chama congratulated Airtel Money and others for having been selected to receive the award of merit adding that these were unprecedented times and appreciated all that Airtel Money has done and continues to do especially in the promotion of the ZRA e-payments as the country battles with the Covid-19 pandemic.

The International Customs Day is a global event that is commemorated every year on 26 January and recognises the efforts of customs officials, public and private sector individuals, and agencies that play a pivotal role in facilitating trade and travel, in simplifying, standardising and harmonising border procedures and in securing borders.

And Airtel Money Director James Chona said he was delighted that Airtel Money has been recognised for its contributions in supporting its stakeholders in Zambia adding that the network provider was proud to be contributing to the local community by providing an easy solution to enable Zambian locals to pay duties on time during the difficult circumstances of the pandemic.

He thanked the Zambia Revenue Authority for the continued collaboration and for recognising the role that the Airtel Money platform and service plays.

According to information made available to Zambian Business Times-ZBT, Kambikambi said the certificate and shield, which was presented by ZRA’s Collector Steven Mukalula, was received by Airtel’s Tax Manager Chabinga Katumbi and Head of Corporate Communications and Government Relations Yuyo Kambikambi.

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Airtel Money has been awarded the World

Companies

Zambia Forestry and Forest Industries Corporation (ZAFFICO) has expanded its plantations footprint to four more provinces in Zambia to met the growing demand for timber and other wood products.

The Corporation which recently become a public company by listing on the Lusaka Securities Exchange (LuSE) says its listing has significantly improved the profile for the corporation and enhanced its ability to raise capital in future.

ZAFFICO Public Relations Manager Ireen Lungu said that the company had embarked on an expansion programme, adding that it has set up more plantations in four more provinces of Zambia.

Speaking in an exclusive interview with the Zambian Business Times – ZBT, Lungu said the corporation has established plantations in Northern, Muchinga, North-Western and Luapula Provinces.

Lungu said expansion into new areas requires capital injection as it involves investing not just in human resource to manage the plantations, but also in procurement of equipment and all the auxiliary materials that go with the planting, seedling and managing of the young trees.

“Originally ZAFFICO was just on the Copperbelt, but we are now in five provinces of the country and we have established plantations in Kalumbila, Lupososhi, Shiwang’andu, Kawambwa and Nakonde among others”, she said.

Lungu also said that the company has been replanting exotic trees within it’s areas and plantations on the Copperbelt. She noted that the roundwood stocks on the Copperbelt plantation have not been able to keep up with the demand, which keeps increasing.

It is because of this increasing demand that the corporation is currently unable to meet, that is the main reason the company decided to expand. The quality of our wood products is very good, so demand keeps increasing, she told ZBT.

She added that when the trees are ready for harvest in the next few years, the corporation might be able to meet the national demand for roundwood. The ZAFFICO PR Manager further said the high demand for roundwood in the country is because of the economic activities happening in other sectors of the economy such as construction.

She also mentioned that the corporation’s long term plan of setting up plantations in all the ten provinces still stands adding that this involves many factors including the acquisition of land for planting and mobilizing additional financial resources.

Lungu said the growth of ZAFFICO as a public limited company is good for the country because wherever they set up, other than employing people to manage the plantations, they support and help with the growth of other sectors of the economy as well.

She said some of the company’s operations require recruiting seasonal workers, so the communities around plantations have also been benefiting from the company’s growth as they are employing more people than before.

She stressed that the significant benefit to be derived from being listed on LuSE is that the corporation has an additional option to raise funding which in turn would be used to make the expansion programme possible.

Zambia has good soils, normal to above normal rainfall patterns (especially in the Northern parts of the country) and vast amounts of arable land that could make the country an Agro-forestry powerhouse and net exporter of timber and wood products.

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Zambia Forestry and Forest Industries Corporation (ZAFFICO)

Sport

The Football Association of Zambia (FAZ) has clarified that the new Toyota Landcruiser Prado worth $100,000 that was handed over to the association by Toyota Zambia Limited is not for the exclusive use by Serbian Milutin “Micho” Sredojevic but whoever is the Zambia National Team coach.

Questions on the Toyota deal with FAZ we’re raised after a joint Toyota and FAZ statement that stated that the vehicle donated to FAZ was for the “exclusive use” by the current Serbian Zambia National Team Coach Micho and the fact that the donation was being done by Toyota Zambia Chief Operating Officer Nenad Predrevac, believed to be a Serbian national.

Other soccer fans called on Toyota to instead donate a bus that could be used by the entire national team as opposed to targeting one person who in most cases is already allocated a personal vehicle, with expert coaches paid competitive US dollar packages.

FAZ Spokesperson Sydney Mungala told the Zambian Business Times – ZBT that according to the nature of the partnership, the car is attached to the office and not the person or current holder, so in an event that Micho’s contract is terminated, any person who will take up the position of national coach will use the car.

Mungala said the motor vehicle is exclusively meant for use by the national team coach as he carries out his day-to-day activities. He said the partnership between FAZ and Toyota Zambia Limited is ongoing and the association will be able to make more pronouncements on the partnership going forward.

The handover of the motor vehicle was preceded by the signing of a Memorandum of Understanding (MOU) between FAZ President Andrew Kamanga and Toyota Zambia Chief Operating Officer Nenad Predrevac. The MOU copy and details have not yet been made public.

See article related article Toyota – FAZ US$100k deal

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The Football Association of Zambia (FAZ) has

Sport

Football Association of Zambia (FAZ) President Andrew Kamanga has clinched a US$100,000 (US$100k) deal between his Association and Toyota Zambia.

Kamanga said his executive was proud to be part of yet another significant milestone which opens more corporate doors for FAZ. He stated that “The approach by my executive has always been to keep the doors open to corporate sponsors and not lean on closed partnerships,” said Kamanga.

He appealed to other corporates to come on board and ensure that they utilized the many opportunities that football and FAZ have to offer.

And Toyota Zambia has handed over a brand new Toyota Landcruiser Prado worth $100,000 (about K2 million) to the Football Association of Zambia (FAZ). The handover was preceded by the signing of a Memorandum of Understanding (MoU) between FAZ President Andrew Kamanga and Toyota Zambia Chief Operating Officer Nenad Predrevac.

Predrevac said Toyota was proud to have found a way to sign the MoU with the FAZ as this signified a start to a successful cooperation. “Football is the most popular sport in Zambia, so for us it is important to be with FAZ that are doing their best for Zambia and that was our main goal to support further development of football in the country,” said Predrevac.

The Kamanga Executive entered office with a promise to rope in more corporate support and instill financial transparency in the running of football affairs in Zambian football.

However, the executive has struggled to deliver a credible senior national team performance, with the Chipolopolo missing appearance at two consecutive Africa cup of nations (AFCON), with the current campaign destined to make a third consecutive time for the senior Chipolopolo side to miss appearance at AFCON.

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Football Association of Zambia (FAZ) President Andrew

Agribusiness

The Zambia National Farmers Union (ZNFU) has disclosed that the country is not self-sufficient when it comes to rice production and has an estimated deficit 35,000 metric tonnes per annum.

ZNFU Public Relations Manager Calvin Kaleyi said the production of rice in the country stands at about 50,000 metric tonnes which increased between 2002 and 2015 from 12,000 metric tonnes.

Speaking in an exclusive interview with the Zambian Business Times – ZBT, Kaleyi said the country was in deficit by 2017 and this has led to the importation of the commodity despite the country having the capacity to produce more.

He said the main hindrance is the production yield per hectare as farmers are still producing 1.4 metric tonnes per hectare, adding that if that can be increased to 3 metric tonnes per hectare, the country can attain self-sufficiency.

He also said old and traditional methods of producing rice, low mechanisation, broadcasting seed instead of precision planting, use of low yielding varieties, limited fertilizer application, limited weeding, poor water management and limited access to extension services are some of the challenges affecting rice production.

Kaleyi noted that farmers need more sensitisation on how to go about rice cultivation, how to identify the right variety for different areas and once such knowledge is availed, even those who have never grown rice may venture into rice production.

He said more investment should be made towards the production of tailored rice varieties, adding that there has been innovations where nerica upland rice that doesn’t require a lot of water has been promoted by the Japanese International Cooperation Agency (JICA) which has played a huge role in the increase of rice production.

“If you look  at the dambos that we have, we can do a lot of rice production and close the deficit, if you go to areas such as Bangweulu, Luapula, all those areas can be used for rice production and unfortunately Luapula does not produce rice but if you look at the water masses and bodies that we have in Luapula, that can be used for rice production and we can do very well there”, he said.

He added that Western province has been producing rice, but further investment should be made to ensure that the quality and quantity of rice being produced improve. Western province alone has potential to expand rice production and help cut imports.

“If you look at some dambo areas in Luangwa, we can be producing rice there, Chama has been producing rice and we can make more investment there and increase production. Chama and Mongu small-scale farmers produce a lot of rice but Nakonde rice has some influence from Tanzania”, he said.

Kaleyi said the country still has huge opportunities and potential to produce more than what is being produced currently and be able to export the excess rice. He also noted that the inculcation of diversification and increased demand for rice has contributed to the continued increase in production.

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The Zambia National Farmers Union (ZNFU) has

Mining

The Association of Mine Suppliers and Contractors President Augustine Mubanga has called on government to issue a one-month ultimatum to the Eurasia Resources Group – ERG to re-open Chambishi Metals or declare them as a hostile investor who just wants to ruin the asset.

Mubanga told the Zambian Business Times – ZBT that the association is concerned with the continued placement of the Mine assets under care and maintenance, as more value is being lost. He told ZBT that Chambishi metals initially indicated that it would go under care and maintenance for only three (3) months, but has been under the same condition for over a year now.

He said the association strongly feels all the conditions are currently at their best for the mine to re-open and operate profitably, adding that the investor is not just interested in re-opening the operations.

He has urged government to act quickly and stop nursing fake investors. Mubanga further stated that the investors should freely hand over the mine license and assets to government [ZCCM-IH] at a zero cost if they have failed.

The re-opening of Chambishi Metals remains unclear despite the upsurge in international copper prices. The Mine owners ERG are reported to be facing challenges in raising finances needed. But concerns for the economy of Chambishi and Kalulushi towns are negatively affected with employment levels reduced due to the jobs that were cut.

Chambishi Metals, which is 90% owned by Eurasia Resources Group – ERG and 10% by ZCCM-IH is involved in the mining, refining and tolling of cobalt and copper. The Mine is failing to re-open after it has been put under care and maintenance for over a year now.

And Ministry of Mines Permanent Secretary – PS Barnaby Mulenga told ZBT that government has engaged Chambishi metals in order to come up with a solution for the mine to re-open, confirming that the company indeed needs recaptalisation.

He said government is having talks with the company and should be able to make progress on the matter, without giving away much details on the stage and direction of the discussions held so far. The mines PS added that the public will be made aware of the way forward once the process of discussion is concluded.

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The Association of Mine Suppliers and Contractors

Companies

The Copperbelt Energy Corporation – CEC woes have deepened following the exit of Glencore and the 100% acquisition of Mopani Copper Mines – MCM by state owned investment company – ZCCM IH. Mopani happens to be one of the top customers of CEC.

CEC top three mining customers included Konkola Copper Mines – KCM, Mopani Copper Mines and Chambishi Metals. The company also relied on purchasing power from state owned power giant, ZESCO, which they would then resell to the mines and other customers.

However, the cracks in the relationship between CEC and ZESCO emerged when power utility ZESCO announced an increase in tariff across the board including for mining houses. When CEC attempted to pass on the increase tariffs to Mopani, the mining house threatened to close its mines in both Kitwe and Mufulira, a decision that has now culminated into the exit of glecncore.

It was after this action (threats of shutting down Nkana and Mufulira Mines) that counter accusations emerged that CEC was buying power cheaply from ZESCO and making a fortune reselling it to the mines. ZESCO which had the hindsight of supplying power directly to First Quantum Minerals – FQM mines based in Solwezi and Kalumbila without a middle-company then opted to directly negotiate power supply to KCM.

This was after the government takeover of KCM from Indian miner Vedanta Resources, a matter which is still being contested. KCM then entered into an electricity supply agreement directly with ZESCO, cutting out CEC which was the middleman in the erstwhile transaction.

CEC stated in its 2019 annual report that KCM alone accounted for about 40% of its total revenues and had an outstanding debt of about US$144 million. When CEC threatened to cut off power supply to KCM, Energy Minister Matthew Nkhuwa proceeded to issue a statutory instrument declaring the power transmission infrastructure as common carriers which enabled Zesco to resume direct power supply to KCM.

Glencore’s Mopani Copper Mines which is the other key customer for CEC has now been taken over by ZCCM IH, a state owned investment company under the Industrial Development Corporation – IDC.

This takeover is seen to have further weakened CEC negotiating and revenue position which insiders say was much stronger under the Glencore ownership of Mopani assets. CEC will now have to kowtow to ZESCO and ZCCM IH to establish a path to revenue retention and sustaining its balance sheet.

On 25 January 2021, CEC re-issued a profit warning through its company secretary Julia Chaila made available to the Zambian Business Times – ZBT stating that their Power Supply Agreement with KCM has come to an end.

Chaila stated that “the CEC Board would like to inform the market that the Power Supply Agreement with Konkola Copper Mines Plc (“KCM”) had come to an end, thereby removing any contractual obligations for CEC to continue supplying electricity to KCM.

Furthermore, she stated that she stated that the shareholders were advised that KCM had accumulated debt of US$145 million in unpaid power charges and had signed a term sheet with ZESCO for power supply.

CEC in its note stated that in addition, the Government of the Republic of Zambia issued Statutory Instrument No.57 of 2020 on 29 May 2020 declaring CEC transmission and distribution lines as “Common Carrier”, enabling ZESCO to transport or wheel power through the CEC infrastructure to supply KCM.

Chaila confirmed that “the outstanding events/circumstances surrounding the settlement of KCM’s debt and the review of the contractual arrangements in respect of continued service provision to KCM may have a material effect on the price of the Company’s securities”.

Now that government has taken over Mopani Copper Mines, it is projected that Zesco will in a similar manner have a much stronger negotiating position and proceed to have a direct power supply agreement with the Mopani and cut out CEC as the middleman to increase its margins. The loser in this transaction will ultimately be CEC.

More to follow as CEC unveils its strategies in place to maneuver the complex and yet lucrative energy sector. This article was first published in the print edition of the Zambia Business Times and reproduced here.

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The Copperbelt Energy Corporation - CEC woes

Companies

The National Road Fund Agency (NRFA) has disclosed that it has failed to meet its targeted toll collection revenue for the year 2020 by about 5% due to the continued impact of the Covid-19 pandemic on the general business environment.

NRFA Public Relations Manager Alphonsius Hamachila said the agency collected K1.551 billion compared to the K1.641 billion budgeted collection as the negative impacts of the corona virus at country and regional levels reduced processed traffic volumes.

Hamachila however noted that there was a 28% increase in toll revenue collection in the year 2020 compared to 2019 when K1.212 billion was collected and this is mainly because of the commissioning of new toll stations.

He said last year the agency completed and commissioned five inland toll stations which include Mibenge in Samfya, George Kunda in Mkushi, Alexander Grey Zulu in Nyimba, Reuben Chitandika Kamanga in Katete and Kebby Musokotwane in Livingstone.

He also said the commissioning of these toll stations created about 105 direct jobs with toll collectors recruited from the respective provinces.

He mentioned that tolling operations stopped at Kapiri Mposhi and Livingstone weighbridge when the George Kunda and Kebby Musokotwane respectively were officially commissioned adding that the Kazungula weighbridge which was also a toll collection point was closed for periodic maintenance which meant that there were no tolling operations from weighbridges as at the end of the year.

He noted that the total number of operational collection points as at the close of 2020 was 36, comprising of 26 inland toll stations and 10 port of entry stations.

According to information made available to Zambian Business Times-ZBT, Hamachila said the implementation of the Statutory Instrument (SI) 74 of 2020, which provides for collection of tolls at inland toll stations from foreign registered vehicles contributed to the increase of toll revenue.

He added that the immediate revenue impact of SI 74 has been an increase in toll revenue of about K20 million per month. He stated that a total of 15,826,406 vehicle passages at inland toll stations were processed last year compared to 14, 125, 277 passages in 2019.

Hamachila noted that the electronic toll card payment system has continued to register growth over the years adding that during the period January-December 2020, K167 million in tolls revenue was collected using this cashless system representing 25% of the total inland collections for the period. He added that this was an increase from 2019 when the agency collected K116 million through the platform.

He further said that when collected, road tolls are put together with other revenues from fuel levy and other road user charges and disbursed for all road projects and related activities across the country. Hamachila said this during a tour of Reuben Chitandika Kamanga toll gate.

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The National Road Fund Agency (NRFA) has

Lifestyle

It is not a secret that Zambia is now officially in a recession. A recession is simply defined as two consecutive quarters of negative economic growth.

Though we may not have official confirmation, it’s no rocket science to note that Zambia has recorded two or more consecutive quarters of negative growth or economic contraction.

This recession is not unique to Zambia. Most countries are struggling and the situation has been exacerbated by the Covid pandemic. Frankly speaking, for Zambia, the steep depreciation of the Kwacha by over 60% over a one year period is what has really made the situation worse as the country imports most of its consumer and industrial goods.

Of course, Zambia’s economic challenges started even before the the onset of the Covid pandemic mostly through the failure to manage the macro economic variables. For us at ZBT, the failure to manage the exchange rate is one area that needs urgent attention.

If the exchange rate was actively managed, the pain of the Covid pandemic would have been lessened and ameliorated. Forget about the free market economy text books, serious economic management involves some level of planning and management of the local currency.

What are the signs you can look out for, to confirm that there is a recession? There are some tell tell signs all around such as businesses barely surviving and not making any profits, high inflation rate and escalating food prices, companies shedding jobs and people losing their jobs, people finding it hard and difficult to find jobs and make ends meet.

Despite all this gloom around, there are indeed some individuals and companies that will surprisingly make more money during a recession, but the majority will struggle. So, how can you be among those that will thrive? How can you avoid being a part of the group that will feel the brunt of a recession?.

In this recession, you will see some families children having to change schools to cut down on fees. Some of these challenges have even been made worse by the Covid pandemic, we have also seen an increase in domestic violence, in gender based violence and general despair among some of our citizens.

So, now that Zambia is experiencing an economic recession, what can you do at both individual and household level to not only survive the current period, but use it to thrive immediately when the economy returns to its growth trajectory?

1. Live within you means – if you are used to free spending, a recession calls for being frugal, making budgets and only spending according to plan. Live it’s projected, no one can tell when Covid will end, nor when the economy will bounce back.

2. Identify ways to cut back on spending – look at your monthly expenses, do you need the full bouquet for DSTV, can you review your entertainment spend and see what can be rationalized?

3. Grow your savings – this looks counter intuitive, but whatever you can save for a particular month will go a long way to lengthen your period which you can live without a job or income. Make sure you save at every opportunity.

4. Pay down your debts – were you have high interest debt, those debts called Kaloba should be paid down at every opportunity. Failure to pay them down can lead to financial ruin.

5. Improve your education and skills – sometimes, we think of education and skills as enrolling at a university or college, but skills improvement can be focused on gaining skills that will give you efficiency. The skills you get will help you thrive immediately when the recession ends.

6. Supplement your income – you may have abilities that can help you open up another income stream, relying on one income stream can be dangerous as companies are closing suddenly. Imagine people in the hotels that relied on international travel? If you can start a new business or partnership, this may just be the right time.

Since you are now living in the times a recession, don’t despair, the sun will rise. When an economy goes down, when the vaccines that have been rolled out can not cure the different corona virus variants that are emerging, look to longer time horizons.

The fact that this is not the first nor will it be the last recession or pandemic that the country will experience, should tell you that life battles are won over the long term. Think long term. Always remember that times of recession are a test in resilience. BE RESILIENT.

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It is not a secret that Zambia

Tech

MTN Zambia, a local unit for MTN group of South Africa in December 2020 announced that a private share placement had been successfully done with the National Pension Scheme Authority – NAPSA, falling short of directly offering 10% shares to the Zambian public.

NAPSA acquired 8% stake in MTN Zambia in December 2020 in what looks like a compromise deal. However, the license issued to MTN requires that the telco lists 10% with LuSE to members of the public through an initial public offer – IPO.

Zambia’s ICT regulator – ZICTA in 2018 confirmed with the Zambian Business Times – ZBT that they had engaged MTN, the Securities and Exchange Commission – SEC and Lusaka Securities Exchange – LuSE to ensure that MTN meets its license requirement to list 10% through an IPO. ZICTA, SEC are yet to confirm if they have acceded to bending the license condition and instead accept a private placement.

The move by MTN to shed 8% to NAPSA was lauded as a good first step in the right direction, though the 8% minority share to which Napsa agreed to is too little to account for any notable influence of a local entity into MTN Zambia operations. There is need for at least 20% shares for NAPSA as a pension fund to be seen and to actually have significant influence on the telco.

Analysts have argued that there is need for MTN to fulfill the license condition and list on the Lusaka Securities Exchange – LuSE to offer their shares to the public and come under the corporate governance scope that its key competitor such as Airtel Zambia undergoes, to level the telco playing field.

Listing on LuSE ensures that some mandatory information is reported which improves transparency and ensures good corporate governance practices are adhered to. This requirement has been there, and a private placement with a Zambian Pension fund should be used as a cover for the regulatory requirement for the company to the publicly offer its shares to the Zambian public.

And during the unvailing ceremony held in December 2020, NAPSA Director General, Yollard Kachinda stated that “Zambia has in the recent years seen some significant growth in mobile telecommunications and digital technology. Mobile data has transformed the way people conduct their day to day activities such as buying and selling of products and services.,” said Kachinda.

At the same function, MTN Zambia Chief Executive Officer Bart Hofker said “MTN Zambia’s partnership with the NAPSA was a demonstration of the shared vision with the Zambian government to make the telecommunications company a truly Zambian owned company and to continue to contribute to the Zambian economy.”

He added that “as part of our undertaking to the Zambian Information, Communications and Technology Authority (ZICTA), 8% of our shares are now held by NAPSA and this was done through a private placement process.

The private placement process had Stanbic Bank Zambia as transaction advisors, Corpus Legal Practitioners and Eric Silwamba, Jalasi and Linyama Legal Practitioners were the legal advisors.

ZICTA is yet to confirm if the private placement is a deal that has been entered into, to forgo the 10% IPO requirement needed to fulfill the license condition. LuSE needs to attract more companies for it to achieve the intended purpose Of becoming an alternative source of financing for Zambian companies.

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MTN Zambia, a local unit for MTN