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Agribusiness

Zambia has a deficit in milk and diary production with shortfalls and upstream specialised dairy products being imported to fill the gap. This deficit can be plugged if the right policy framework and support is given to local diary farmers and locally based dairy products manufacturers.

The diary animal production landscape in Zambia is composed of both emerging and commercial farmers, therefore, policy and structural support needs to be given to both emerging and commercial farmers if the nation is to plug the deficit and stop the unnecessary foreign exchange bleeding.

According to the Diary Association of Zambia – DAZ, the country has all it takes to become a major exporter of diary products to the regional market, Zambia needs to continue to attract investments in factories and equipment used production of specialised diary products and formalize its informal exports to have the diary industry become a net foreign exchange earner.

To better appreciate the challenges the country faces to produce enough diary products to end end ‘unnecessary’ imports, the Zambian Business Times – ZBT profiled one of the largest diary commercial farms in Zambia – Kushiya farm based in Mazabuka. It is one of the largest farms in Zambia specialized in dairy production. It has also diversified into game animal production, beef cattle production and sugarcane plantation.

Kushiya farm Managing director Guy Robinson told the Zambian Business Times – ZBT in an exclusive interview that the dairy farm was started by his grand father back in 1947. “The farm started with only few dairy cross breed animals roughly about 30 cows. After a couple of years, the management changed as his mother took over and increased the animals to just over 1,000 herds of dairy cows” Robinson told ZBT.

Kushiya farm’s Dairy enterprise takes up about 500 hectare of land in total. The dairy animals take up just about 200 hectares, but if you include the land which is used to plant maize and hay grass used as feed for the dairy animals, the total land used for Diary is about 500 hectares of land. Kushiya farms dairy cows are under intensive system of diary farming.

Moreover, Kushiya farm is supplying all of fresh milk (100%) directly to Lactalis (formally called parmalat), which is later processed into different diary products such as milk, yoghurt and cheese etc. Kushiya farm is also in the process of starting to supply Varun beverages, the producers of creambell diary brands.

In terms of production and contribution to the Zambia milk market, Kushiya farms are producing about 4.7 million liters of milk annually. Which when broken down, the farm is producing about 13,000 liters of milk per day and 390,000 liters of milk per month.

So, if one large farm can produce 390,000 liters of milk per month, and Zambia still has vast amounts of arable land in all the ten provinces of the country that can support such highly intensive milk production systems, what then are the challenges being face?

When asked specifically on what Challenges Kushiya farm is facing, Robinson pointed out that inflation is one of the major challenges faced. The increase in prices of electricity, high diesel costs due to load shedding, feed prices are higher because of inputs which are imported.

Robinson also pointed out increase cost for regultory fees such as fees from ZEMA, Council Levies, WARMA and various other regulatory fees which are being increased. He pointed out that milk is sold on the local market in Kwacha to say Lactalis while some input costs are US dollar denominated which make it hard as the Kwacha depreciates.

He pointed out that for the intensive diary farming operation, due to load shedding for instance, Kushiya has to run generators between 12 to 16 hours a day, which increases energy costs by three times when compared to Zesco electricity costs.

Robinson however pointed out that the covid 19 pandemic has brought out some positives as Agriculture production has been recognized as an essential Industry. The pandemic has also made supporting the local farmers and local industry viable.

Robinson stated that the pandemic has brought about a positive increase in the local industry support due to the limited import of certain products, so there has been a stop on the importation of milk as well as beef that has led to a promotion of locally produced products. There is positive support to the local industry and has helped the farmer to produce more, and reduce on imports which is ultimately good for the growth of the Zambian economy.

Import tariffs are a source of revenue for government but they can not overtake the benefits that come from local production, so the pandemic has in some way brought some positive realization that should be built on.

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Zambia has a deficit in milk and

Companies

ZESCO through a statement made available to Zambian Business Times-ZBT by Public Relations Manager, Hazel Zulu, has disclosed that the loss of power supply to Lusaka Central Business District (CBD) on September 21 was due to punctured underground cables.

“ZESCO Limited regrets to inform its esteemed customers and general public that the loss of power supply to the Lusaka Central Business District (CBD), and other surrounding areas since Friday 18 September 2020 is due to ongoing roadworks under the Lusaka decongestion and expansion project, which has led to the damages some underground electricity cables.

However, Zulu says the technical team has already made an assessment of the affected areas and works to replace the cables are underway to restore supply in the shortest time possible. ZESCO has also advised the general public to exercise caution and treat all supply lines as live.

The affected areas included Downtown Shopping Mall, Findeco House, radio Transmission towers and surrounding areas.

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ZESCO through a statement made available to

Lifestyle

The significance of the beer and alcohol industry in the social and economic set up of the Zambian economy can no longer be second guessed.

11 September 2020 was a very special day for many Zambians going by the excitement that was witnessed with many Zambians taking to socio media to appreciate the announced the Pilot Project of partial reopening of bars, night clubs and taverns across Zambia by President Edgar Lungu.

The Bars and Night Club Owners Association of Zambia (BANCOAZ) through their Secretary General, Edmond Lifewekelo told the Zambian Business Times – ZBT that the association has approached Lusaka City Council – LCC to start joint patrols to pro-actively bring to book those who disobey the guidelines issued by the president on how the partial re-opening of bars/night clubs should operate.

“We have already approached Lusaka city council so that we start holding some joint patrols to ensure that any bar or night club owner who does not adhere to the laid down guidelines is brought to book. We want to be proactive and ensure that we weed out any unacceptable behavior. We shouldn’t forget that we haven’t had income coming in from March 27 until now” Lifwekelo told ZBT.

“So this kind of behavior whereby we want to risk our industry being shut for the second time, will not be entertained. We shouldn’t be motivated by revenues in the short term, but look at how we can be sustained and remain open to avoid another shut down. We should be motivated by the good and service we provide for the greater society”, he said.

Lifwekelo on behalf of bar and night club owners thanked President for hearing their cry by partially reopening the bars/night clubs as this will help put food on the table not only for owners, but the employees and other support sectors that supply food, beverages and other services. We also urge all our members to coordinate with their councils in all provinces of Zambia.

He however, described the behavior of some members who did not follow the presidents guidelines as regrettable as the president has the powers to re-shut operations if he sees that there is no discipline and behavior among the bars/night club owners. So the onus is on us to ensure we put in place the necessary health guidelines to curb the spread of covid 19.

“Once again, we would like to thank President Lungu for partially re-opening the bars/night clubs. From what we observed as BANCOAZ over the past weekends, we think we are a bit disappointed with a few of our own members but the majority have done their best.

“We need as an industry to show that we are serious about remaining open, we observed that there are some few members who were closing their business premises as late as 03 hours in the morning when the president announced that it should be up to 23 hours, he said.

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The significance of the beer and alcohol

Tech

The Zambia Informatiom Communication Technology Authority – ZICTA has re-opened the tender to issue an international mobile network license after the failure by Unitel’s UZI to fulfill the licensing and set up requirements.

For so many years, Airtel, MTN and Zamtel have been the only mobile telecommunication companies in Zambia. Unitels Uzi was issued with a license to make the 4th mobile network operator but the group face both financial and geopolitical challenges that saw the company lose the Zambian license.

UZI failure was eminent as the company kept on pushing forward the date to launch its mobile network and the last timeline given to them to launch was end of May 2020, which they ultimately failed to fulfill. ZICTA was left with no option but to cancel the license and re-start the tender process.

In a tender document issued by the Zambia Information and Communication Technology Authority (ZICTA) under the Office of the Director General and shared with the Zambian Business Times – ZBT, ZICTA has announced the re-opening of the tender for people or companies who are interested in opening the much anticipated 4 mobile network.

ZICTA stated that in ‘Pursuant to the Licensing Guidelines of 2017, the Authority intends to issue a network license under the international market segment and a service license under the national market segment with associated resources. The Authority now invites proposals that will lead to the issuance of a network license in the international market segment and a service license in the national market segment with associated resources in accordance with the Licensing Guidelines of 2017’.

The ICT regulator also re-iterated its intention to empower local companies and citizens and stated that ‘as part of the government policy to empower indigenous citizens, citizen influenced, citizen empowered and citizen owned companies as defined by the Citizens Economic Empowerment Commission Act, Citizens are encouraged to participate’.

ZICTA further stated that the request for proposal – RFP document may be obtained from the it’s Head Office in Lusaka at a non- refundable fee of K1 million (about US$50,000). The Lucrative Zambian Telecoms industry is this time around expected to attract credible entrants that are capable of offering competition to existing players.

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The Zambia Informatiom Communication Technology Authority -

Agribusiness

Minister of Fisheries and Livestock – Professor Nkandu Luo has with immediate effect announced the termination of her ministry’s partnership with the Zambia Co-operative Federation – ZCF for not delivering their end of the agreement in the MOU.

The MOU was premised on the plan to build Aqua Park Fisheries Centers but nothing has been done. This development (or indeed the lack of development in this case), has angered Fisheries Minister, Professor Nkandu Luo.

The Livestock and Fisheries Minister stated that there was supposed to be an aqua park for fish which includes, fish ponds, fish processing plants, fish feed making machines and necessary implements for expanding fish production.

“I just want to express my utmost disappointment with the Zambia Co-operative Federation (ZCF), who came to our Ministry to partner with us. Its been over 1 year now, since we signed a Memorandum of Understanding – MOU and this is my third time being to this site just to find that there is nothing that is happening on the ground.

“But what is so disturbing, is the junk that has been put on this plot. The last time I had a meeting with the chairperson/president of the ZCF, he told me that he had containers at sea which where going to bring the equipment that’s going to be used for the partnership and this is the equipment that you see here”, an irate Prof Luo questioned.

Furthermore, Prof Luo says the ministry cannot accept such kind of arrangement and has with immediate effect cancelled their partnership with ZCF.

Definitely the ministry cannot accept to be in such kind of arrangement and I’m calling upon ZCF to just know that this partnership is over. Because this one of the things we were saying, our Zambian entities are forever complaining that we are not giving them opportunities but when opportunities are given to them, this is what they do?

The minister stressed that a Zambian Government, the first priority should be to give opportunities to the Zambian people who are expected to do things for the betterment of the Zambians, but this is not right, this is doing something for selfish gains.

“This is a clear demonstration of a group seeking a partnership with us as a Ministry, and since we think that there is so much we can do in Livestock and Fisheries for the betterment of our people, we thought they came in good faith just right here there has been no activity, the people that are here are busy buying maize from the farmers here that was not part of the agreement”, she said.

Meanwhile the Fisheries Minister says there was nowhere in the agreement between the Ministry and ZCF that talked about building of a warehouse that was being used to buy the maize from the farmers and that the activities that must be conducted are those that will increase productivity of fish in Eastern province .

“There was nowhere in the agreement that they will use this land to be buying maize. Why would you have land of this magnitude not to grow the maize, but to build a warehouse to be buying maize from the farmers? Why should Zambian people labor for an organization?

They are saying they are a co-operative federation that is interested in agriculture, so if they are interested in agriculture the activities that should be here, are those that will enable you to  start working on issues of fish farming, so that we can increase the productivity of fish here in the Eastern province”, she said.

Prof Luo is currently on a trip to the Eastern Province to check on her Ministry that includes Livestock and Fisheries. Livestock and Fisheries remain a high potential area for commercialization in Zambia due to the country enjoying good geographical position with vast number of regional market access.

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Minister of Fisheries and Livestock - Professor Nkandu Luo

Companies

Atlas Mara Bank together with Nkwashi Estates and Lafarge Zambia have officially launched the dream house promotion.

However, in his speech at the launch, Atlas Mara Bank Managing Director James Koni said that ‘as the result of this partnership, we will be giving away 3 bed roomed houses at Nkwashi housing Estate worth K1,100,000 each and collectively K3,300,000.

Moreover, in the build up to the grand prizes, where one house will be given out every 3 months, customers will also stand a chance to win monthly prizes over the campaign period amounting to over 100 building starter packs which including bags of Mphamvu and supaset cement, wheelbarrows, dump roof membranes and other building accessories.

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Atlas Mara Bank together with Nkwashi Estates

Agribusiness

One of Zambia’s leading Agro processing companies, Freshpikt, a member of the Vamara group of companies located in Lusaka’s industrial area is making great strides through its various Agribusiness processed products.

Vamara country Business Head for Zambia Nawaz Niyas disclosed to the Zambian Business Times – ZBT in an exclusive interview that all the beans and groundnuts used for their canned beans and peanut butter are 100% locally sourced.

Niyaz told ZBT that they have seen a significant growth in the output of both beans and groundnuts in Zambia and that the country had great potential to not only grow enough for local consumption, but export the excess as processed products to regional markets at better values.

“We are getting all the groundnuts we are using to make peanut butter locally, all the beans that we are using to make the baked beans in Zambia is also sourced locally. Specifically the beans that we are using here is called Lusaka beans which is the white one”, stated Freshpikt Sales and Marketing Manager Maria Banda.

The market has grown since 2013 till now; so we have also started to do exports as the Vamara group has a presence in 11 African countries. So, this further offers Zambian Agro products access to these other markets through our group companies.

Groundnuts still have a challenge of aflatoxins which usually result from storage methods that lead to fungal attacks, but most farmers have been educated on how best to handle the harvest. Once the methods of harvest and storage are improved across the board, Zambia is on its way to become a major exporter of groundnuts.

When asked on the annual tomato season that sees most tomatoes go to waste and end up rotting when it could be processed into tomatoes paste and stored, Freshpikt stated that one of the major hindrance of sourcing all the tomatoes locally remains the levels of quantity and quality.

There is need to standardize the variety of tomatoes grown so that the processing side is also able to get the desired output. There are so many varieties of tomatoes grown such that it’s difficult to get the right pulp quality and taste. So, there is more organization in terms of varieties and seeds used to make local tomatoes attractive for onward processing.

“As for tomatoes, the market is not giving us the quality and quantity that is needed for industrial processing, so to cover up that gap, we are forced to source some tomato and paste form outside. Otherwise for the groundnuts and beans, we’ve have good quality and good supply from the local market”, she said.

And Vamara Country Business Head for Zambia Nawaz Niyas stated that the company is working on developing the supply side for tomatoes.” We are in close contact with the tomato farmers to help them better understand how to produce good quality and varieties of the tomato that Freshpikt can use to make various tomato products.

“In fact, we are building on that as well; the supply chain. We have spoken to a number of tomato farmers and the challenge with the small holder tomato farmers is that they need to be in the know how. Our technical team is meeting with them and we are showing them the right way of producing industrial standard harvest”.

So, we want to be are able to buy fresh tomatoes locally and only import when its off season goes especially the cold season, when local production of tomato goes down”, he said. Furthermore, Niyas stressed that these methods of growing the right tomatoes are being taught to the small holder farmers as the commercial farmers already know about these farming methods.

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One of Zambia’s leading Agro processing companies,

Lifestyle

Emirates, the Dubai based airline has disclosed in a statement made available to the Zambian Business Times – ZBT that they have introduced an exciting new deal that will enable international students from Zambia to see more of their family and more of the world during the year.

The offer comes a week after Emirates announced it will re-start passenger services to Moscow this month, connecting Zambian students to the popular Russian University destinations once again.

With the exiting new discounts by Emirates, distance will definitely be no barrier for the Zambian students. Whether it is to travel between home and school abroad, or to see more of the world with friends during school breaks throughout the year.

Student travelers can enjoy special discounts off the Economy and Business class fares, additional baggage on top of Emirates’ generous standard allowance, and a free date change of their booking up until 7 days before travel.

What’s even more intriguing about this deal, is that as long as the student is part in one off the trip sectors, families and companies can enjoy this unique offer.

Millions of students have chosen to further their education in institutions outside of their home country, and data from the UNESCO Institute for Statistics shows that the figure is on a rising trend as young people become more  savvy about their travel and education options. Many international students also travel during the school year with their friends or to gain new experiences.

In line with Emirates’ proposition as a global connector of people and places, the airline is launching this offer to encourage students to see more of the world and help them visit their families more often, with flexibility to amend their booking in case travel plans change.

Zambia through the loans and scholarships board offers students in Zambia a chance to study in China, Cuba and North Africa apart from Russia. There has also been a growing trend by Zambian families to sponsor their children or wards to study abroad which is also another growing sector.

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Emirates, the Dubai based airline has disclosed

Markets

The Bank of Zambia (BOZ) which is Zambia’s central bank responsible for regulation of the financial sector in Zambia has given its blessing and support for the eventual developments of locally owned and controlled financial institutions.

In a statement emailed to the Zambian Business Times – ZBT, BOZ in response to public concerns on whether they would clamp down on the fast developing local initiative of community savings groups (village banking) stated that they are supportive of the initiative and stated stated that its pyramid schemes that they will not condone.

Community savings groups or village banks which is seen by many as the renaissance or start up phase for future locally owned community banks and community lending institutions which would be able to provide locally tailored financial services to meet the needs of the local communities.

Unlike most functional economies in frontier African countries such as South Africa, Kenya and Nigeria as well as developed economies where the top 10 banks in the market are locally owned, the Zambian Banking Industry is so skewed such that there is practically just about 3 out of the top 10 banks which are locally owned and controlled.

This scenario has made the banking industry unresponsive to the needs of the local Zambian economy such that most local businesses and individuals have resorted to joining community savings groups to meet their savings and financing requirements.

BOZ in what has been described as a landmark decision stated that its support to village Banking/Savings groups as they play an important role in providing community based financial services.

The central bank further stated that Zambia’s population now stands at 18 million. As the economy continues to grow, so is the need for economic diversification in the financial sector.

Village banking/Savings groups are small lending schemes organized outside the formal financial sector. As the term “village” implies membership is usually among people who are familiar with each other and share certain commonalities through their family, friends and community.

Furthermore BOZ said that village banking membership is by self-selection and the number of members in a group is limited. Members formulate rules and procedures to the guide the governance of the group. The group itself is self-managed and does not involve the placement of saving/deposits by an individual, agent or company outside the group membership.

Meanwhile, BOZ re-iterated that they regulates and supervises entities that are covered by the Banking and Financial Services Act,2017 and these do not include Village banking/savings groups. This now withstanding, BOZ recognizes the relevant role the Village banking groups play in communities, including  transitioning their members into formal financial services and in driving the financial inclusion agenda’.

The Administrators of these village banks should now take this opportunity seriously to build locally owned and controlled banks that would meet local financing and savings return needs.

Most African countries, Zambia included have been held back in developing their local financial systems largely because of their over dependence on the remnants a colonial financial system which was built in the interest of a few, neglecting the needs of the majority.

The majority of the adult working population in Zambia ply their trade in what is considered as the ‘informal sector’. Zambia like most emerging countries has a disproportionately higher number of its adult citizens engaged in economic activities which remain largely unserviced with little public policy support.

BOZ has been commended for thinking outside the box and adopting more practical way of finding local solutions to local problems. For more information kindly contact ZBT via email: info@zambianbusinesstimes.com

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The Bank of Zambia (BOZ) which is

Agribusiness

Apples and Peach commercial production has mostly been thought of as not suitable for Zambian soils or geographical location. A notion had been created which has hindered most emerging farmers from engaging in growing these ‘exotic’ fruits for fear of losing their capital.

But the Zambian Business Times – ZBT can disclose that Zambia currently has a locally based and thriving Apple and Peach Farmer. Lionel Martin is one of the successful farmer in apple and peaches production. Martin started apple and peach farming in 2014, which at the time was just a trial, looking at the historical and climatic conditions in Zambia.

Speaking to ZBT in an exclusive interview, Lionel Martin stated that he first imported about 1,000 peach trees from South Africa costing about K300 per tree in 2014. In 2015, he imported about 100 apple trees costing also about K300 per tree.

He told ZBT that Apple and Peach production started then and has been going on well. Martin Lionel continued to import trees every year, except for this year due to the covid 19 pandemic, which has made importing of trees logistically challenging.

When asked about the total cost of production per hectare, Martin stated that one hectare of land can support about 1,283 trees with the spacing of 4×2 meters. The purchasing of trees will cost about K200,000. Martin stated that has 3 and a quarter hectare of land that he is using to plant both peaches and apples.

But Apple and Peach trees are also affected by drought. “Due to the drought that the country faced in 2015 and 2016, these 2 years production did not go well, some of my trees Andre plants dried up”. Martin had a challenge with water during the drought because the farm is not located near large water sources and 27 plants where destroyed by the termites. However, the situation was controlled.

Apple trees take 2-3 years to reach fruit maturity. In the third year of harvesting, the farm produced about 1 tonne of apples. Martin sells the apples as well the peaches to the local market and supply to fruit and vegetables stores.

Martin told ZBT that Zambia has all the resources and conditions needed to attain good yields in Apple and Peach production. There is of course some field maintenance that needs to be applied to apple production, but I can tell you it is possible to grow apples in Zambia with the existing climatic conditions and with the right variety.

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Apples and Peach commercial production has mostly