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The Energy Regulation Board (ERB) says there will be no fuel price reduction in the short to medium term as a result of the Zero rating or removal of Value Added Tax (VAT) on fuel. Instead, the zero rating of VAT has provided room that has been utilized to avoid an eminent fuel price hike.

The announcement of the removal of the 16% VAT on fuel had created excitement especially among the general public as it was expected to be passed on to the final consumers and industrial users. However, the depreciation of the Kwacha and the increase in international crude oil prices have negated the passing of the benefit to final consumers.

ERB Communications Officer Mwila Kombe told the Zambian Business Times – ZBT that the current pump prices have been maintained even when they could have been increased due to adverse movement in economic variables that influence petroleum pump prices such as the depreciation of the kwacha against major convertible currencies augmented by increased international crude oil prices.

According to information made available to ZBT, Kombe said government has continued to promote renewable energy in order to diversify the energy mix and reduce dependence on fossil fuels. She said government has put in place interventions such as the introduction of the 2019 national energy policy which provides for the development of bio-fuels.

She added that the regulator has also maintained the Statutory Instrument – SI No.42 of 2008 which provides for the declaration of bio-fuels as an energy source under the energy regulation act adding that, blending ratios (2011) at 10% for bioethanol (E10) and 5% for biodiesel (B5) are some of the interventions aimed at reducing dependence on [imported] fossil fuels.

Subsequently spiral effects on increased cost of fuel have also been averted such as the resultant increase in prices for goods and services and also in the increase in transportation costs.

When asked on regulatory measures to help cut the fuel import bill which is one of the major drainers of forex in Zambia, Kombe told ZBT that ERB which is mandated to provide regulatory overview of the energy sector provides a conducive environment for the production of biofuels by coming up with interventions such as development of the biofuels regulatory framework (2016) for licensing minimum production capacity is 2,000 litres/cubic metres per day.

She mentioned that other interventions include the development of the biodiesel fuel blends for automotive compression ignition engines and ethanol fuel blends for automotive spark ignition engines.

She also noted that the biodiesel fuel blends and ethanol fuel blends covers specification for motor gas oil (diesel) blended with 5% biodiesel and motor gasoline (petrol) blended. with 10% ethanol. These provide an avenue for cutting the fossil fuels import bill.

Biofuels are perhaps Zambia’s best bet to cut the fuel Import bill through the cultivation of biofuel plants locally. A cassava biofuel project in Luapula has been launched but we are yet to see if its projected production levels will be realized.

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The Energy Regulation Board (ERB) says there

Lifestyle

The United Kingdom – UK stands to lose more than Zambia economically following the recently announced travel ban to and from Zambia, according to the Economic Association of Zambia – EAZ.

The UK recently issued a travel ban to and from Southern African countries, Zambia inclusive because of the second wave of covid, a move that has left some Zambian citizens concerned more especially on the resultant impact on businesses as well as Zambia’s economy in general.

In an exclusive interview with the Zambian Business Times – ZBT, EAZ President Dr. Lubinda Haabazoka stated that “Any restriction in the movement of people might have an effect on the movement of goods and capital between two countries and definitely the travel ban will have a negative impact on both countries.”

However, Haabazoka disclosed that, the UK is [currently] not a significant trade partner to Zambia and as such, people should not expect huge negative impact on Zambia’s economy.

He also added that trade between Zambia and the UK is one sided as it’s mostly the Zambian people and businesses who are usually buying things from the UK on such platforms as Ebay which are then shipped into Zambia.

Haabazoka said that the ban will have limited affect on Zambia because its major trading partners are China and South Africa, thus it’s the UK that stands to lose out more on this ban.

Haabazoka said that “it’s very unfortunate that the UK decided to issue a travel ban on Zambia when it should be the other way round, because it’s public knowledge and everyone is aware that the second wave started from the UK. Their cases are very high compared to Zambia.

The UK government stated that “From 4am on Saturday 9 January, visitors arriving into the UK who have been in or transited through Zambia in the previous 10 days will not be permitted entry. British and Irish citizens, and third country nationals with residence rights in the UK arriving in the UK from Zambia need to self-isolate on their return”.

Other southern African countries apart from Zambia and South Africa currently included on the banned list include Namibia, Zimbabwe, Botswana, Eswatini, Malawi, Lesotho, Mozambique and Angola — as well as Seychelles and Mauritius.

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The United Kingdom - UK stands to

Companies

The Engineering Institution of Zambia (EIZ) says it is working on coming up with standard rates for services that its members can use across the country in line with professional services best practices. The proposals is expected to be presented to government in three months.

EIZ President Abel Ng’andu said a committee is currently working on a proposal aimed at coming up with standards rates that it’s various members and the end users can utilize as a guide. He stated that the proposal will after consultation, be present to the Ministers of Infrastructure, Development and Housing for further consideration within three months.

In an exclusive interview with Zambian Business Times-ZBT, Ng’andu said this is a long overdue process adding that the committee will come up with a draft, which will first be circulated among members. The members will look at the proposals and give feedback, and once the members are satisfied, it will be sent to the relevant ministers for further consideration.

Ng’andu said this will prevent clients from being exploited, adding that that is why the process has to go through the minister because the he represents the public and will be able to look at rates and decide whether the fees are economical, sustainable and fair to the users of the services.

“It is a long process, it’s not something that can be done overnight or in a couple of months, it will take some time. It’s likely that there will be input from other stakeholders as well, not only the ministry, most likely they will invite other stake holders who have a strong interest in those services so that they can share their views, it has to go through a consultative process, he said.”

Ng’andu said coming up with standard rates would mean that the client cannot be exploited and the people who will be doing the work will be doing the work at a pace that will enable them to deliver excellent services.

“You have standard rates for doctors, in the hospital when you go for consultation you pay a particular rate for a doctor, that is the same spirit that we want to follow because if you were going to pay a doctor say K10 as consultation fee, we wouldn’t have too many medical doctors, he said.”

He said the committee would look at the value for money and not whether the rates are too low or too high but will come up with rates that guarantee quality and value for the money the end user will be paying.

The coming up of standard rates for various engineering and related craft services will enable price discovery in the Zambian construction and engineering sector which has been marred by accusation and counter accusations of corruption due to an opaque pricing system.

Standard professional services rates will help to set a guide that would remove the opportunity for corruption or in other incidences, perceived corruption. It will also go a long way to provide a yardstick for review and audit works.

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The Engineering Institution of Zambia (EIZ) says

Lifestyle

The Zambian financial services industry that includes banks and micro financiers has been challenged to deepen their offering to enable sectors such as the film industry to fully take off.

The film industry in Zambia has for a long time been trying to get on its feet and make its foray into international Cinema’s. But there has been many challenges for film makers in terms of financing and limited sponsorship.

In the past few years, the country has seen an improvement in production and uptake of its film industry due to a few film makers who have been pushing hard using their own resources as well as utilizing a few sponsors in order to produce quality movies that can sell internationally.

On the 14 of November 2020, a movie called “BLACK DOLLAR” was premiered at the government complex and saw prominent citizens, government officials and leading artists in attendance. The movie was produced by David Kazadi, a Zambian film maker.

In an exclusive interview with the Zambian Business Times – ZBT, David Kazadi stated that the movie was a success in that a lot of people from the both political, entertainment and business sector including various artists attended the premiere.

Kazadi said that the idea was to show the invited guests especially those from the corporate sector that the creative sector does not have to be so far from the them and that the two can work hand in hand to complement each other.

He stated that there were more than 500 people who attended the premier and that the response was good because people were reacting to the laughter in the movie and also shade tears to emotional parts.

Kazadi disclosed that all the 50 tickets which were meant for the general public and where going for K1,000 each were all sold out within 24 hours and there was even demand for more.

Kazadi explained that when it comes to the movie industry, Zambia has always been talented and that the only missing link to produce movies is luck of an established financing model. He said that luck of infrastructure like film schools and drama schools at university level also contributes in the production of low quality movies.

He added that many who wish to be film makers usually go through some form of “soft training” such that, if one has had no basic training, they end up learning the wrong things and producing poor quality movies.

Kazadi said that in order for the world and Africa to recognize Zambia as a country that is able to produce good and quality movies, film makers need financial support from government, local companies and local businessmen.

Furthermore, he said that stakeholders need to trust the film industry just like other countries trust theirs. Kazadi explained that people have a positive picture about European and North American countries because of how they are portrayed in the movies.

Kazadi stated that western countries mostly portray their countries as full of glitz and glamour, thus attracting a lot of tourists from across the world to tour the countries. He said that not all places in Europe or the US are attractive and that some of the slums from the western world are worse than some in Zambia.

He added that financing and sponsoring the film industry would result in a lot of tourists to be interested in visiting the country, there by delivering foreign exchange for the economy.

Kazadi disclosed that they are currently developing part two of ‘Black Dollar’ with production expected to commence in 2022 and is more likely to be released between 2023 and 2024. He also added that the movie will go up to part five.

However, Kazadi dismissed the claim that the movie was sold for US$10 million. He said that he could unfortunately not reveal the exact amount it was sold for because of the confidential contract agreement he signed with a British distribution company.

He also said that Kazadi movies is currently working on a TV series called ‘The Secret Life of a slay queen (Diva)’ which involves local stories and that it shall be released soon.

Kazadi said that he is looking forward to the government through the National Arts council, Bank of Zambia – BOZ and the financial services industry to come up with policies that will enable tailored financing solutions to be developed.

There is need to step up the provision of financing Solutions that will provide a more conducive environment for the film industry in order for the country to make quality movies that can be recognized internationally.

Analysts say the Zambian public consumes more imported content or movies at the expense of local content which eventually is causing the currency to continue depreciating. Its in the long term interest of the country that policies are adopted that will lead to developing a robust local film industry.

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The Zambian financial services industry that includes

Markets

The Bank of Zambia – BOZ plans to buy up about 600 kilograms of Gold from the Zambia Gold Company in 2021 alone. The central bank has so far bought 47 kilograms of gold from ZCCM IH subsidiary – Zambia Gold company.

The US$36 million gold reserves value excludes gold that will be purchased via its second gold buying agreement with First Quantum Minerals – FQMs Kanshanshi Mine of Solwezi.

In an exclusive response to the Zambian Business Times – ZBT, BOZ stated that that they target to buy 600kgs of gold from Zambia Gold Company in 2021. The value of gold like most commodities varies with fluctuating market conditions.

To ensure that reserves reflect international best practice values, the value of gold purchased and held is reflected by the prevailing gold prices at the London Bullion Market Association – LBMA.

And research done by ZBT revealed that the current gold prices at LBMA are at about US$60 per gram, which translates the 600kg target to about US$36 million. This is a good start especially that it does not include the Kanshanshi gold, which should be able to at least double the values.

To ensure that there is no further leakage of forex, BOZ Assistant Director for Communication Besnat Mwanza told ZBT that “BOZ will be buying the gold in Kwacha which takes away the need to source dollars or forex to buy the gold”.

“Purchasing gold using local currency provides a sustainable avenue of international reserves accumulation and enhances investor confidence”, stated Mwanza.

Zambia is poised to become a notable gold producer after the discovery of size-able deposits at Kasenseli in Mwinilunga’s North Western province. Other provinces such as Central, Lusaka and Eastern are also producing gold at small scale level, with prospects for large scale mining under various feasibility study stages.

The building up of gold reserves is expected to provide a buffer that can support the local currency – the Kwacha which has perpetually been shading value against international convertible currencies such as the US dollar.

But there is need for a more aggressive gold buying program from BOZ that can secure at least three months import cover of gold reserve value over in the medium term (in about 3 years).

Holding of say three months import cover of gold reserves in addition to US dollar cash reserves currently held is likely to scare away foreign currency market speculators as well as smooth out local currency depreciation pressure.

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The Bank of Zambia - BOZ plans

Agribusiness

Large chain stores in Zambia, especially the those supplied by Freshmark have been accused of shunning locally produced avocados, preferring to import from their home country when locally produced ones are even much more superior.

In an interview with Zambian Business Times- ZBT Chairman of Avocado Association of Zambia Goodson Kalolo said that “Zambia has good quality avocados and what we are producing is far much better than what is currently being imported from South Africa.

Kalolo added that,” Even the second grade being produced in Zambia is far much better than the second grade from South Africa. He disclosed that Zambian farmers has adopted a special type of avocados which are called ‘hass avocados’ which is recognized by the whole world. Kalolo said that, it is hard to sell avocados to super markets because they import from South Africa.

Kalolo explained that, there is a company called ‘FreshMark’ that imports fruits and avocados from South Africa on behalf on super markets and that the company is behind the locking of the market for Zambian produce. He said that, Freshmark occasionally buy some avocados from local farmers but they only buy first grade.

He disclosed that, the Zambian second grade is far much better than the South African second grade that is being imported. Kalolo said that,” the government must put its foot down and stop importing avocados from South Africa and start buying from us local farmers instead.”

He explained that, there is no crop that can beat avocado in Zambia but it has little recognition since only few farmers are venturing into it and that the rest shun it because of lack of access to the middle and high end market in chain stores across the country. Efforts to get a comment from Freshmark proved futile by press time.

Furthermore, he disclosed that, the whole world is interested in avocado and that Mexico is a leading country which produces 2 million tons of avocado which they intern sell to America and that it is still not enough because America’s demand for avocado is very high.

Avocado is a fruit that is a fruit which is on high demand especially in European and US countries. This is because it contains a lot of nutrients like Potassium, fiber but to mention a few.

According to research, people who eat avocados tend to be healthier than people who don’t and apart from that, it also contains Antioxidants that protects the eyes.

Over the years, some Zambian farmers gained interest in growing avocado after realizing that it is on high demand, but unfortunately, there is little or no market for Zambian avocado farmers because super markets in Zambia prefer to import avocados from South Africa.

Kalolo disclosed that,” three years ago, word went around that Zambia is producing the best avocados and people from all over the word started coming to see what we were producing.

He added that,” people were impressed when they saw that indeed Zambia produces good quality avocados but were again disappointed because they were producing in small quantities and that’s when we were just starting.”

Kalolo said that, the people who came to confirm that has indeed good quality avocados said that Zambia has great potential to export but that it could only be done if they started producing in high quantity.

He said that, avocados can help boost Zambia’s economy just like in Kenya. Kalolo added that, Kenya at the moment is Africa’s leading avocado producing country and that the Kenyan government buys avocados from small scale farmers which is then exported.

Kalolo said that,” many farmers in Kenya have chosen to uproot coffee and tea trees in order to accommodate avocado trees because they have good market. Zambia can also take a leaf and support its locally grown avocados.

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Large chain stores in Zambia, especially the

Lifestyle

Carnival Furnishers has confirmed that it has lined up a big promotion that customers should take advantage of for this year’s Black Friday event.

Black Friday is a day that most people get to buy goods and products at lower prices and that’s because a lot of shop owners sell their products and goods at deep discounted prices which could range mostly from 25 to 50%.

The year 2020 brought about a lot of economic challenges due to covid-19. Zambia’s economy has been negatively affected, starting from the over 60% Kwacha depreciation within one year with many retail outlets having been shut for a period of over three months.

A lot of business have been negatively affected and with growing sentiment among business owners that business will only pick up next year because they made huge losses this year. And it is for this reason that many people have been wondering if business owners will participate in this year’s black Friday.

In an exclusive interview with Zambian Business Time-ZBT, Carnival Furnishers Regional Manager Josei Kabir said that Carnival Furnishers has experienced challenges this year due to covid-19 and that they are doing everything possible to make up for the losses.

Kabir said that,” Carnival will be holding black Friday sells and that will help us to make up for the losses and running the promotions will also give us more exposer with the Zambian audience.”

In another exclusive interview with ZBT, Economic Association of Zambia – EAZ President Lubinda Habaazoka said that, it will be wise for business owners to hold black Friday sells because in that way, they will be able to get rid of old stock, and also make profit based on their economic scale because no business makes losses on black Friday.

Black Friday, which is an international retail sales promotion day has gained prominence even in Zambia over the years. Most local businesses have also joined to offer promotional prices, making the day special for retail businesses.

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Carnival Furnishers has confirmed that it has

Tech

The expansion of the road network and construction of additional fly over bridges or traffic circles has led to decongestion of traffic on many key transit routes in Lusaka which has been appreciated by many.

But one exception had been the Alick Nkhata road bridge. This bridge is on record to have been referred to as a “death trap” by the government’s own Local Government Permanent Secretary – Ed Chomba who was almost fired to calling the bluff. A majority of road users had earlier expressed concern which led to the PS visit then.

And after many pleas from the general public, the Public Service Pension Fund – PSPF who are the contractors of the adjacent mixed use complex have decided to remodel and reconstruct the controversial bridge. This was after initially denying and defending the structure as being fit and proper.

But the Engineering Institution of Zambia – EIZ which acted as the whistle blower using their professional standing have expressed concern that the remodeling and reconstruction has not been done in consultation with relevant and key stakeholders.

In an exclusive interview with Zambian Business Times – ZBT, new EIZ President Abel Ng’andu said that the reconstruction of the Alick Nkhata bridge has nothing to do with EIZ and that the institute is not aware of what is currently taking place at the bridge.

Ng’andu said that “the geometrical design of the bridge is not correct and it is for this reason that we have written letters to meet up with the contractors at the bridge on 30 December 2020 in order for us to let them know our position concerning the bridge.”

He added that there is no way that such a decision of reconstruction the bridge should be made without engaging relevant authorities of the decision. The EIZ President stressed that they will only disclose their position concerning the bridge next week Monday after their meeting.

The EIZ had also raised alarm on the ZNBS building on Cairo road which also attracted a rebuttal from the contractor and consulting engineers on the project. The concern was that the structure has developed cracks in the columns which needed urgent attention.

Members of the public have raised concern that some of the contractors and consulting engineers seem to be “too connected” to an extent that they are basically using such projects to syphon money from the treasury.

The government has been urged to ensure that the government officers that issued these tenders, the construction companies responsible for these two projects and the approving engineers that certified these works are made accountable.

Proper investigations should be initiated to unearth why some top government officials have been defending clearly “wrong things” when even members of the public have been calling for corrective action.

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The expansion of the road network and

Lifestyle

The wanton adoption of western or some refer to it as ‘American fast food’ diets is one of the major contributors to the increase in cancer cases in Zambia.

According to research, Cancer is a group of diseases involving abnormal cell growth with the potential to invade or spread to other parts of the body and there over a 100 types of cancers.

Many people over the past few years have been diagnosed with cancer in Zambia and also across the world. The numbers have become alarming and the cause for some of the cancers are still not known.

In an exclusive Interview with Zambian Business Times – ZBT, University Teaching Hospital (UTH) Cancer Senior Superintendent Doctor Lewis Banda said that, some of the cancers that Zambians have is caused by bad living habits.

Dr. Banda disclosed that most Zambians now follow the Western diet which has a lot of fat and possess a lot of health risks. He added that, people should instead stick to the African or Zambian diet which is good and has less fats and more vegetables in it.

He explained people don’t exercise enough neither do they eat healthy, thus they end up having cancer. However, he disclosed that the cause for most cancers like breast and prostate are yet not known, but that for cancers like cervical cancer, the reason behind it is known.

Banda said that cervical cancer can be prevented especially in young girls by them staying away from sex as well as staying away from having multiple sexual partners. He urged women to go for screening so as to start early treatment if found with cancer, and that so far, all cancer treatments at UTH are free.

Furthermore, Dr. Banda disclosed that genetically modified organism(GMO) have not been directly proved to cause cancer like most people think, and that no one has ever proved that allegation. He added that, a lot of food in Zambia do not have GMO’S and thus people just have to mind what they eat and should try and avoid eating too much junk food.

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The wanton adoption of western or some

Markets

The Bank of Zambia (BOZ) has dispelled allegations suggesting that the central bank and the Ministry of Finance are working on a Statutory Instrument (SI) to ban the holding of foreign currency accounts in commercial banks by individual and private corporates in Zambia.

But the institution has not taken any technical or legal action against the originators and perpetrators of the allegations, a move that may suggest that this matter may have been a subject under discussion. If this matter was serious enough to warrant the Central banks response as they did, they should ideally have asked for a retraction of the report, failure to which, taken legal action.

And BOZ Head of Corporate Communications Besnart Mwanza said the bank’s utmost priority is to play its role and help restore macroeconomic stability and revive economic growth in the midst of a challenging economic environment that has been significantly impacted by the COVID 19 Pandemic.

According to information made available to Zambian Business Times-ZBT, Mwanza explained that the exchange rate policy in Zambia will continue to be founded on a market-determined exchange rate as this is the most appropriate way in which economic imbalances are resolved.

She said such unsubstantiated reports mislead the public and if left unchallenged, have the potential to cause panic and destabilize the financial sector and the economy as a whole.

She added that reports of this nature also have the potential to tarnish the image of the country, both locally and abroad therefore members of the public are urged to treat such reports as false and unfounded. The Bank of Zambia has also urged members of the public to use social media responsibly and desist from circulating false news.

Another option available to BOZ is to work with ZICTA, a government agency which had announced in 2019 that they now have a way of tracing the perpetrators of miss-information on social media.

The Zambian government had introduced mandatory SIM card registration of mobile phones and acquired security and high tech equipment and resources capable of tracing the originators of any abuse that may be deemed detrimental to the overall economy of the country.

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The Bank of Zambia (BOZ) has dispelled