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Companies

The Zambian Breweries (ZB) has confirmed that there is a shortage of alcoholic beverages on the Zambian market due to the disruption in the supply chain that was caused by the outbreak of the corona virus pandemic.

ZB Director of Corporate Affairs Ezekiel Sekele said this is as a result of some of the alcoholic beverages that come into Zambia from South Africa not being imported due to South Africa closing its borders during the Covid 19 pandemic.

Speaking in an exclusive interview with Zambian Business Times-ZBT, Sekele said some finished products and raw materials are beginning to come into the country but not to the extent that the company would like and this is because South Africa has to fill up its market place and attend to its challenges before fully concentrating on exporting.

Sekele said the company is doing its best to meet the required production levels, working beyond its capacity at the moment trying to ensure that the whole market is stable and consumers are able to choose from a variety of products and is also trying to ensure that the gaps in the market place are managed and reduced.

“We are producing more than we were producing in the previous months and we are working 24/7, we are producing at full capacity. Because of the supply chain disruption experienced in the last six months and with the percentage of imports not coming in, instead of people getting the different choices of local and imported products available, they are only getting mosi, castle, eagle so the demand on the ZB locally produced products has increased, he said.”

He also said that another challenge is the fact that Zambia does not produce glass and the company had put in procurement plans for the whole year but some of the suppliers from the countries where glass is imported from were not operating, so ZB couldn’t get enough glass coming into the country.

“We have been engaging the government to have Kapiri Glass Product to start operating, if there can be an investor who can invest in this company and produce the necessary equipment that will allow us to tap into the market, we will create a market for glass and stop importing, he said.”

He also noted that when there are issues of demand and supply variances in business, some people may engage in unfair business practices such as increasing prices and that is called price abuse.

Sekele said he was aware that some retailers have increased the price which is not right and they should be reported to the Competition and Consumer Protection Commission (CCPC) which is the relevant authority.

He also explained that ZB sells at the Recommended Retail Price (RRP) and can only recommend prices to resellers but if they decide to increase prices, they should be able to pay the incremental tax to Zambia Revenue Authority (ZRA) but most of them are not doing that.

Sekele mentioned that this year around April, May, June and July, in line with the Ministry of Health guidelines, the company was encouraging it’s consumers to drink from home, therefore a lot of stock of containers are sitted in people’s homes and now that demand has gone up, ZB is running a campaign called Chinja Bottle.

Members of the public who have empty crates and bottles are being encouraged to have them exchanged for money in a bid for Zambian Breweries to collect some of its containers. He commended government for allowing the company to operate even though it was not producing optimally; the company was not completely shut down.

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The Zambian Breweries (ZB) has confirmed that

Markets

The Bank of Zambia – BOZ Governor Chris Mvunga has stated that the central bank is working on finding a lasting solution the Kwacha, which has in the last few weeks shed value.

Mvunga who replaced Denny Kalyalya stated during the presentation of the monetary committee (MPC), that the committee at its November 16-17, 2020, meeting, decided to maintain the monetary policy rate at 8% to moderate risks to financial stability and growth.

He stated that the decision to hold the rate at 8% also allows monetary policy measure taken earlier in the year to take full effect. This is despite projections indicating that inflation will persist above the 6-8% target range throughout the forecast horizon.

Mvunga said that the economic global activity is showing signs of recovery as economies partially reopen and policy stimulus measures begin to take effect. He said that, in less contraction of 4.4% is projected in 2020 than earlier projection of 4.95%.

He explained that, a strong rebound in global growth is projected in 2021, supported largely by policy stimulus measures. Mvunga said that, the recovery is still expected to be protracted and highly uncertain over the medium-term due to the impact of income losses on aggregate demand, rising sovereign debt and subdued commodity prices.

The Governor explained that the risks to global growth remain tilted to the downside due to high degree of uncertainty surrounding the evolution of the pandemic as well as the speed of delivering a vaccine.

He disclosed that, after rising steadily for six successive months’ quarters, annual overall inflation decelerated to an average of 15.7% in the third quarter from 16.1% in the preceding quarter. Mvunga said that this was due to improved supply of maize grain and related products and that on account of food, inflation declined to 15.2% from 16.9%.

However, he said that non-food inflation rose to 16.2% from 15.1% largely due to depreciation of the kwacha. He also added that, the recent readings of inflation points to a resurgence in inflationary pressure and that in October, inflation rose to 16% from15.7% in September largely reflecting the weakening of the kwacha.

Mvunga explained that the kwacha depreciation against other major trading partner country currencies, albeit at a slower pace mainly on account of increased foreign exchange market interventions by Bank of Zambia. He added that, against the US dollar, the kwacha weakened by 3.3% to an average of K18.94 per US$ in the third quarter and closed the quarter at K20.02 per 1US$.

Furthermore, he said that, currently, subdued foreign exchange supply amidst increased demand has continued to underlie the market. He added that, the reduction in the supply of foreign exchange market is partly due to a slowdown in global economic activity, which has adversely affected capital flows. Mvunga heightened demand for foreign exchange is mainly for the importation of agriculture inputs and petroleum products.

Mvunga said that with the increased net foreign exchange sales for market support coupled with debt service, gross international reserves declined by US$111.8 million to US$1,321.2 million (equivalent to 2.3 million of import cover) at End-September form US$, 433.0 million at End-June (equivalent to 2.3 months). He explained that despite the decline, on the level of reserves, the month cover unchanged due to the drop in imports of goods and services attributed to the subdued economic activity and the depreciation of the kwacha.

He disclosed that, it is noted that imbalances in the economy remain and that inflationary pressures have persisted, growth is anaemic and fragilities in the financial sector have abated. He added that due to what’s on ground, the MPC considered three options which are: raising, reducing or maintaining the policy rate. Mvunga said that with the inflation on the rise, conventionally, raising the policy rate in an effort to control inflation would have been expected.

However, Mvunga explained that, doing so, in an already depressed economic situation, would result in further contraction in economic activity and threaten the stability of the financial sector and on the other hand, reducing the policy rate in an attempt to give further support to the economy may put additional pressure on the exchange rate in a supply-constrained environment.

He disclosed that considering all the factors, including the significant reduction in the policy rate by 350 basis points in 2020, and allow monetary policy measures to take full effect, the MPC decided to maintain the policy rate unchanged at 8.05.

Mvunga said that, the policy will be guided by inflation forecasts, outcomes, and identified risks, including those associated with financial stability and the COVID-19 pandemic.

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The Bank of Zambia - BOZ Governor

Companies

It is said that PEOPLE are the greatest resource that a nation can have, and its the business activities and innovations of especially the local people that eventually lead to a country’s attaining the much desired development.

The trend and number of Zambians forming and registering companies has continued to show considerable improvement. It is the locals innovativeness and business vehicles such as number of registered companies and their success rate that will eventually lead to improved exports earnings as well as industrialization.

According to information obtained by the Zambian Business Times – ZBT, the Patents and Companies Registration Agency (PACRA) says it has registered over 25,000 businesses which include 15,435 business names, 67 foreign companies as well as 9,893 local companies from January this year to the 17 of November, 2020.

PACRA Public Relations Officer Vaida Njovu said the agency is hopeful that it will be able to register at least 28,000 businesses before the end of the year in order to beat last year’s total number of registered businesses which is 28,000.

Speaking in an exclusive interview with Zambian Business Times-ZBT, Njovu said over 68,900 businesses have complied with the legal requirement of filing annul returns which is almost double the number of businesses that filed annual returns in 2019.

Njovu said this increase can be attributed to the availability of the online system which makes it easy for businesses to file their annual returns as it has made services easily accessible even for individuals in remote parts of the country.

She added that the agency has continued to send reminders to businesses whose annual returns are due and is also very interactive through its various media platforms in an effort to increase compliance levels from its clients.

She also said that no businesses were de-registered by PACRA unless voluntarily, this is on request from the owners who applied to have their businesses deregistered for various reasons.

Njovu explained that the agency does not thrive on de-registering businesses but rather on seeing more being opened up, growing and contributing to the economic development therefore it focuses more on measures that will help keep the businesses running.

She added that the filing of annual returns is very critical for a business because other than it being a legal requirement, it shows the status of a business at that particular time of filing and the public also relies on the information that is on PACRA’s system.

“For example Zambia Development Agency (ZDA) wants to know how many businesses are registered in the aqua culture, they might ask for our data base so we will give it to them as is sitting on our registry, so if a business has changed their address and did not inform PACRA, they may end up losing out on certain incentives or critical communication that may be offered by government or other industry players, she said.”

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It is said that PEOPLE are the

Companies

The First National Bank (FNB) has been named the SME Bank of the Year at the Global SME Finance Forum Virtual awards ceremony held on 27 October this year.

Acting Head of Strategic Marketing and Communications, Mukuka Mulenga said the Global SME Finance Awards 2020 which are endorsed by the G20’s Global Partnership for Financial Inclusion (GPFI) were organised by International Finance Corporation – IFC, a member of the World Bank Group and the SME Finance Forum.

According to information made available to Zambian Business Times-ZBT, Mulenga said FNB was recognised amongst over 100 global participants for its digital innovation, exceptional products and services, as well as the unique and solution-focused manner it approaches challenges facing SMEs as they incubate, start, run and grow their businesses.

The awards were judged by a committee of industry experts, with specific focus on reach, uniqueness and innovation, effectiveness and impact, as well as dynamism and scalability.

And FNB CEO-South Africa Jacques Celliers, said he was humbled that FNB received global recognition as this showcases that the work it is doing for its SME customers is truly adding value noting that SMEs are important drivers of economic activity, across all corners of society and are often referred to as the ‘backbone’ of economies.

“As we continue facing unprecedented economic challenges, coupled with the impact of Covid-19, we are cognizant that the SME sector remains a glimmer of hope in helping our country to create jobs and promote inclusive economic development, he said.”

Bydon Longwe, FNB Zambia CEO also explained that FNB’s strategy for the SME sector is underpinned by a myriad of initiatives to support businesses throughout all their life stages.

Longwe said increasing presence in local markets further increases FNB’s ability to provide contextual solutions to businesses which will further contribute to addressing the challenges faced by the country such as unemployment, empowerment and economic growth.

The global award has cemented FNB’s place as a world class bank and the commitment for FNB to provide world class solutions. FNB in Zambia is considered among the best for SME’s and clients with business banking needs.

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The First National Bank (FNB) has been

Agribusiness

The Grain Traders Association of Zambia – GTAZ has disclosed that there is always a deficit of wheat production in the country which is normally supplemented by imports.

The Association has challenged local farmers to increase production to satisfy the local market and make Zambia to become a net exporter of wheat. GTAZ President Chambila Simwinga said local farmers offload the wheat and sell the produce in US dollars.

It is this dollarized trading that results in the fluctuating prices on the local market where produce like flour are then sold in Kwacha. The dollar trading is currently affecting the cost of production and resulted Market prices in Kwacha due to the fluctuation of the exchange rates.

Speaking in an exclusive interview with Zambian Business Times – ZBT, Simwinga said imported wheat tends to become expensive due to import taxes that range from 5% to 15%. There is also transportation and logistic costs that come with imported wheat and wheat products.

“There is always a deficit every year and that’s when we sit and agree to say, let’s allow imports. The importation of wheat has been allowed at the moment but it lands at a higher price and local producers sell it at about US$430 per tonne”,  he said .

Simwinga said there is a reasonable number of commercial farmers that grow wheat but the biggest challenge is the cost of inputs. Most of the inputs that are used are imported into Zambia and as a result of high inflation and depreciation of the Kwacha, the cost of inputs is always a challenge.

“Wheat farming is not like growing maize, it is capital intensive or required higher investment to some extent. This is because most of the wheat is not rainfed, it is irrigated and irrigation of a large farm is not a cheap exercise”, he said.

Simwinga added that there is no stability in terms of fiscal policies to back wheat production, so that also affects wheat farmers in terms of production.

Analysts have called for inclusion of wheat in the strategic and backed crops in Zambia due to the high consumption rate of bread especially in cities and towns of Zambia. If wheat production is expanded and backed by strong Agro policies, the cost of living can be reduced through making bread and other wheat breakfast products cost effective.

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The Grain Traders Association of Zambia -

Agribusiness

President Edgar Lungu says the agriculture industry has expanded and matured to a level where Zambia is able to meet the international phytosanitary standards of trade in Agro products.

The head of state said Zambia has the capacity to penetrate the international market and all that is needed is to increase production and put in place appropriate systems that support exports.

Speaking during the official launch of the export of fresh blueberry fruits to China from Zambia by the Zambezi Berry Company, President Lungu said this project will make Zambia the only country in the SADC region to have access to the lucrative market for blueberries in China.

The Head of State said he was pleased that the country is competing for a larger share of the blueberry market in China and that the blueberry project will raise the profile of the country’s agriculture sector especially in the horticultural subsector.

The President said he was aware that the Chinese market imports significant quantities of blueberries from countries in North and South America therefore he was delighted that even during the current Covid 19 pandemic, the country has managed to export agriculture products to a competitive market.

“For this economy to grow, we have to focus on transforming the agriculture sector and changing our mind to believe that the agriculture sector can be transformed to be export oriented”, he said.

He commended Zambezi Berry Company which has employed close to 2000 people, indicating that it was a significant contribution to government’s thrust of creating more jobs for the people of Zambia.

He also explained that a number of companies and businesses have been engaged to provide goods and services to Zambezi Berry Company which is a perfect demonstration of the economic linkages that can be created by transforming the agriculture sector into a diversifying and export oriented sector.

The President noted that government is focusing on policy and legislative reforms to educate local farmers on the emerging trends and opportunities in the agriculture sector.

“More needs to be done to educate and inform our farmers of the many trends and opportunities in the agriculture sector beyond our borders, he said.” President Lungu assured farmers that government is open and remains committed to working with them and addressing the various challenges that they are meeting in the sector.

Speaking at the same event, Chinese Ambassador to Zambia, Li Jie said the milestone has contributed to the bilateral cooperation between Zambia and China. Jie said that Zambia has been exporting high quantities of honey to China and the two countries have signed a contract of three million United States dollars to continue the honey business.

Lie added that agriculture production in Zambia has further attracted investment from Chinese entrepreneurs.

And Zambezi Berry Company Proprietor Graham Rae commended government for its support to ensure that his company was able to start exporting fresh blueberry fruits to China, indicating that the efforts have helped the private sector to thrive.

Rae applauded government for creating an environment where both large and small scale farmers are able to thrive. He said this will help the country shift its focus from mining dependency to agriculture.

Export of Agro products is seen as having the highest potential to supplement US dollars inflows from the traditional copper exports. The Zambian Kwacha has continued to depreciate owing to low forex inflows, high foreign denominated debt servicing costs as well as a huge local appetite for imports.

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President Edgar Lungu says the agriculture industry

Lifestyle

The Ministry of Lands and Natural Resources has enumerated 64,233 land titles under the National Land Titling Project since the beginning of this year.

Ministry Permanent Secretary, Ndashe Yumba says 53,453 titles are ready to be issued to anyone who is willing to pay the statutory fees but the challenge is that people do not seem to be in a hurry to collect their titles.

Speaking in an interview with Zambian Business Times-ZBT, Yumba said 3827 titles have been given to individuals who have paid the statutory fees which vary depending on the area with the lowest being K660.

Yumba also said that 6630 offer letters have been collected and has urged individuals to come forward and pay the required statutory fees which will enable them to collect the title deeds.

The government has collaborated with Medici Land Governance who will conduct the project and it wishes to provide four million land titles in a period of seven years with 250, 000 land titles being issued before the end of the year 2021.

Yumba added that the programme will create employment opportunities in the country as each province will require a team that will be handling data collection and other matters related to the project.

The project will enable the country to increase the issuance of land titles which was standing at 300, 000.

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The Ministry of Lands and Natural Resources

Markets

Zambia will today on Friday the 13th of November hold a meeting to decide on the fate of the Country’s proposal for debt repayment holiday on the 3 billion of outstanding dollar bonds.

In October 2020, Zambia missed paying coupon of US$42.5 million on its 1 billion dollar bonds due in 2024 and was given a 30-day grace period. Coincidentally the date of committee’s decision and the date of the end of the grace period for coupon payment fall today on Friday the 13 of November 2020.

According to Infomation made available to Zambia business Times-ZBT by Jesuit Center for Theological Reflection – JCTR Executive Director, Father Alex Muyebe, “the JCTR hopes for a positive outcome, however, the question is, What if Zambia defaults on its sovereign debt?

Muyebe explained “it is worth pointing out that Zambia has an obligation to repay its debt. If the committee rejects the Zambian government’s proposal for debt, irrespective of whether the proposal for debt repayment holiday is granted or not.”

He added that, the minister of finance, Hon. Dr Bwalya Ng’andu has assure the nation of Zambia’s commitment to not default on its sovereign debt. Muyebe said that, if the Zambian government’s proposal to defer the payments, it entails the coupon is due for payments on the 13th of November, 2020.

Furthermore, he said that with the already strained fiscal space, government must pay the US$42.5 million and if not, Zambia would have defaulted. Muyebe explained that a default on Zambia’s sovereign debt entails that the country is blacklisted and this bears implications on political, economic and social development. He also added that there will be increased interest repayments as penalties, disrepute on Zambia’s credit-worthness, and reduction in credit ratings.

Muyebe disclosed that, the government needs to pull resources from various funds for finance activities which would further weaken fiscal space and that it may lead to non-availabilty of funding for local development projects and wage freeze for civil servants.

He said that,” JCTR encourages the government to seriously dialogue with the bondholders of find a lasting solution to debt restricting. Primarily, JCTR’s concern is with the effects of debt burden and debt defaults on ordinary citizens, especially the poor, the marginalized and the vulnerable.

But the recent depreciation of the Kwacha which has breached the K21 per US$ perhaps suggests that the government may have been buying up the dollar in anticipation of this day. Some of the Euro bond holders have been hesitant to agree a moratorium on repayment even when major lenders and economies have been agreeing to these arrangements due to mostly the COVID pandemic which has exacerbated the socio-economic challenges globally.

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Zambia will today on Friday the 13th

Tech

The Medical for Quality Healthcare in Zambia (MQHZ) has condemned the reported abuse and misapplication of funds donated by various stakeholders for the purpose of fighting the Covid 19 pandemic.

MQHZ Director General Dr. Quince Mwabu said these sad revelations have come at a time when the Ministry of Health has failed to pay allowances to frontliners.

According to information made available to Zambian Business Times-ZBT, Mwabu said all the donations towards the fight against Covid 19 must be accounted for in order for cooperating partners to have confidence in the Ministry of Health once again.

He added that it is not right for people to abuse office and public resources for their personal benefits when the health sector has monumental challenges.

MQHZ has demanded that the hard working health workers fighting corona virus be paid immediately as promised to them by the health Minister Dr. Chitalu Chilufya. Mwabu has also called on the Anti-Corruption Commission (ACC) to act quickly against all those behind the abuse and immediately have them relieved of their duties if they are found wanting.

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The Medical for Quality Healthcare in Zambia

Tech

The Insurers Association of Zambia (IAZ) has urged all its members to adapt systems that will make it possible for them to update the Road Transport and Safety Agency (RTSA) Online system as soon as one pays for their insurance.

IAZ Manager for Risk and Consumer Education, Kambole Chituwo said insurance companies should consider providing a platform that the public can use to have their motor vehicles insured without having to physically visit an insurer.

Speaking in an an exclusive interview with Zambian Business Times-ZBT, Chituwo said insurers should ensure that they update the RTSA system instantly and timely anytime insurance is obtained in order to facilitate online payment of road tax from RTSA online system.

Chituwo also noted that some insurance companies already have an online platform that individuals can use to make payments and have their motor vehicles insured. “There are a good number of insurance companies that have invested in technology and one can do a lot of transactions online, some are doing it faster than others, but we are confident that all the companies will catch up”, he said.

He also added that depending on the type of insurance one wants to get, one may need to physically visit an insurer because some types of insurance might require inspection of motor vehicles.

There has been concern from members of the public regarding the timely update of information by insurers because one is not able to make road tax payments online if the payment made to insurance companies is not reflecting on the RTSA system.

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The Insurers Association of Zambia (IAZ) has