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Mining

Copperbelt Energy Corporation Plc (CEC) has in a statement made available to Zambian Business Times – ZBT, disclosed that they have welcomed the discharge by the Lusaka High Court of the interim injunction that had been granted on 3 June 2020 to ZESCO Limited (ZECSO) and Konkola Copper Mines Plc (KCM) against CEC following a joint ex parte application by the two parties.

CEC Managing Director Owen Silavwe Stated that the company has always held a view that agreements should always be respected to fulfill the interest of all businesses, investors and stakeholder.

“CEC has always held the view that commercial agreements should be honored and respected in the interest of all businesses, their investors and all other stakeholders. We reiterate that the parties [CEC, ZESCO and KCM] should engage in constructive dialogue to resolve these matters and remain expectant that KCM will come to the table with workable solutions on the discharge of their outstanding US$ 145 million debt to CEC.

“It is also important that firm agreements underpinning transactions in both the energy and mining industries should be in place for the proper functioning of the sectors and entities, and to engender certainty for commercial decisions,” he said.

This ruling follows the dismissal by the Kitwe High Court, on 31 July 2020, of the interim injunction brought by KCM against CEC to restrain the Company’s then intended restriction of power to KCM for failure to pay its outstanding debt to CEC for power it was supplied and consumed.

Meanwhile, CEC takes special note of the two rulings and, more importantly, remains desirous to see all the parties seize the opportunity to commit to an engagement process in good faith to enable equitable resolution of all the contentious matters in the shortest time possible.

Resolution of the debt, commercial contracts and all other outstanding matters is critical to all businesses, without which it will become more and more challenging to continue to provide reliable service.

ZESCO and KCM have since appealed the ruling and are pursuing other legal remedies.

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Copperbelt Energy Corporation Plc (CEC) has in

Mining

United Gypsum Investment limited, a locally based gypsum supplier has disclosed that the K20 to K25 price increase in retail 50kg cement prices should not be wholly blamed on gypsum prices as the commodity only accounts for about 5% or about K5 of the total price increase.

The cement manufacturing sector has been accused of forming a cartel following what looks like uniform price increase accords all major players, when the sector has different energy usage rates, energy sources (some use coal while other use electricity), different cost structures as well as different production capacity plants.

United Gypsum Investments has challenged cement companies in the country to be sincere and account for the other K15 to K20 price increase which has nothing to do with gypsum. “Gypsum is 5%, so from about K98 or K100 per 50kg bag of cement, if the input cost of gypsum increases from US$40 per ton to US$80 per ton, that should result in only about K5 (5% of K100) increase in retail prices.

The company however confirmed that Chambishi metals, which has since suspended production and is on care and maintenance, produced gypsum by-product was selling for about half the price and that cement companies have only recently started buying bulk gypsum from them [United Gypsum Investments] after the closure of Chambishi metals.

Chambishi Metals gypsum prices used to be about US$35 to US$40 per ton, but United Gypsum is selling for about US$80 per ton, so this is what has partly contributed to the hike in cement prices, according to Baudot Cement, who manufacture the Great Wall cement brand which is currently the most competitively priced cement product on the Zambian market

In an exclusive interview with Zambian Business Times – ZBT, United Gypsum Investment Limited General Manager Ali Ahmad disclosed that the company had not hiked prices but its the situation at Chambishi Metals that has resulted in some cement manufactures changing their source of gypsum to them.

Our gypsum prices have not changed as our cost of production is much higher. We are more specialised in supplying gypsum for Agro purposes and for roofing sheets. So, this bulk gypsum for cement is not our core business, but for now, we are supplying it to sustain the cement production and meet the demand to ensure cement production continues.

“Earlier this year, we approached all the cement factories and said guys, we can supply you the gypsum, our product has less moisture and might be more slightly expensive, but it’s natural and of high quality. They all said no thanks, you are too expensive”, he said.

And with the closure of Chambishi Metals, Ahmad said the cement manufacturers came back asking for the gypsum that they had rejected at first, saying the prices were much higher. That’s how this situation has come about. There has been no increase in our gypsum prices.

Furthermore he said that he remains loyal to his clients and is willing to sit on a round table to discuss how they can increase production and agree long term sustainable supply of bulk gypsum for cement producers.

“We have to agree on how best to proceed, if Chambishi Metals was to open today, some of these cement manufacturers would switch immediately and start buying from the mine, and what would happen to our investments in expanded production?”.

“Now the cement companies came to United Gypsum Investments saying they need our support. But the company has concentrated on Agricultural and roofing gypsum. Today on the market, Agricultural gypsum is sold at price range of between US$110 to US$140 per ton. But we agreed to sell bulk gypsum to cement companies at about US$80 per to support the emergency situation”.

“Like today, as a business, the people that are our long term customers have been from the agriculture market, these guys have been with us since we started. And agriculture is one of the main business in Zambia. I cannot say bye to them because I have new cement clients who we are not sure of their long term commitment, he said.

When asked by ZBT on whether they have capacity to supply gypsum at more competitive prices, Ahmad disclosed that they have the capacity and are willing to supply the gypsum for the cement factories but need to sit with both government and cement manufacturers to come up with a way forward.

United Gypsum stated that it is easy for Chambeshi Metals to sell gypsum at a lower price point because for them, it comes as a by-product of the main copper processing plant. But the natural gypsum is the best and of high quality for cement manufacturing.

The cement price hike has come at a time when least expected as key input cost variables such as energy costs, exchange rates and fuel prices have not changed to warrant the price increase.

The government agency responsible for consumer protection and anti-trust or anti-competitive market behavior – CCPC is yet to respond and issue a comprehensive investigation report as most of its key staff were said to be working from home due to covid 19.

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United Gypsum Investment limited, a locally based

Sport

There is no excuse for football clubs in Zambia to continue operating as charitable organizations with a one key sponsor mentality when they can function as profitable businesses, more so with the appointment of club Chief Executive Officers – CEOs and delinking of clubs from their main sponsors.

Puncherello Chama, a well-known sports enthusiast and socio media blogger has said that one huge advantage of the Zambian football league is that it is well organized, but there need for the clubs to up their marketing and sales strategies to be able to fill the stadiums, attract more sponsors and to get their players to be noticed at other more lucrative leagues to bring in more revenue from player transfers.

Speaking in an exclusive interview with Zambian Business Times – ZBT, Puncherello Chama says that there has to be a change in mentality for the Zambian football clubs to see themselves a business for them to stop relying heavily on one key Sponsor and be able to generate their own income as well as attract fans coming in numbers to watch the game.

“That has to do more with Marketing, that’s why we struggle to have people come for matches. Because clubs do not take themselves as businesses and it’s only until they take themselves as businesses, will we see more aggressive marketing efforts.

When they treat themselves as businesses, attracting more fans to increase and maximize on gate takings will become a key part of their business to generate more income. Now if one club is not seriously attracting paying fans, it is just concentrating on the sponsors money, it will become a disadvantage for that particular club”.

“As long as the mentally of the club management is not that of being a business, it can’t grow. They can’t even think of expanding their stadiums to get more paying fans and more marketing revenue. If the mentality slowly changes, then these other issues of having a packed stadium will start happening because, when you change your focus, you change the club into a business”, he said.

When asked whether the Zambian clubs have the capacity to have modernize their stadiums, he stressed that having a modern stadium is not a guarantee that people will turn up in numbers to watch the matches. It all trickles down to serious marketing and promotion activities.

“Yes there are cubs which can invest in a modern stadium. However even if you invest for example in  modern stadium, people will confuse that to people automatically turning up for matches if the stadium becomes better that is not the case. Yes, some people will, but not everyone”, he said.

A good example is that of NAPSA stars, who now play at Woodlands stadium. The venue is modernized, they are the only super league team which plays there, but do they attract huge crowd? Lusaka Dynamos play at the National Heroes Stadium which is a modern Stadium built in 2013, has the crowd increased? Do they have bigger crowds than other clubs who do not have modern stadiums?

Chama challenged the existing management teams at football clubs to grow their paying fans base and attract these fans to watch every game live to turn their clubs into fully fledged businesses. If you already have fans, having a modern stadium comes as a bonus.

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There is no excuse for football clubs

Companies

ZESCO has disclosed in a statement made available to the Zambian Business Times – ZBT that electricity utility has recorded a 37% reduction in cases of vandalism in the second quarter (Q2) of 2020.

Public Relations Manager Hazel Zulu told ZBT that the electricity giant has recorded a total of 190 cases of vandalism in the 2nd quarter of 2020 worth about K1 million compared to 261 cases in the 1st quarter of 2020 which was worth about K1.7 million. The most vandalized items were Transmission towers, transformers and copper cables.

However, ZESCO is still concerned and saddened that installations are still targeted by vandals despite recording a reduction in the number of vandalism cases. Because these electrical equipment require huge amounts of money and investment.

“We however, note with concern that, ZESCO installations have continued to fall prey to vandals despite recording a decrease in the number of vandalism cases. We are saddened by this development as it is not only detrimental to the development of the energy sector but the country at large. Electrical equipment involves huge amounts of money and investment and any acts of vandalism is retrogressive and takes the corporation and the country backwards”.

“We send a stern warning to perpetrators of such vices and reiterate that ZESCO will not relent in ensuring that the culprits are arrested and brought to book”, she said.

But on a lighter note, ZESCO is delighted to announce that the recent reduction in vandalism cases was also accompanied with several arrests made during the period under review.

”We are nonetheless, pleased to inform the public that ZESCO, working with relevant law enforcement agencies recorded a total of 69 arrests in the period under review, compared to the 47 arrests recorded in the previous quarter. Furthermore, the corporation managed to secure 15 Convictions while 48 cases were active in the courts of law”, she said.

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ZESCO has disclosed in a statement made

Markets

The Copperbelt University – CBU Economist Dr. Stephen Mpembele has charged that Zambia is likely to end up with a reduce debt capacity if its Gross Domestic Product – GDP is not rebased and remains low as the capacity to borrow is dependent on how much GDP the country is generating.

Dr. Mpembele told the Zambian Business Times – ZBT in an exclusive interview that failure by government to quicken the process of rebasing GDP will disadvantage the country from borrowing beyond the threshold of its current GDP, hence has urged those in authority to expedite the process if growth is to be recorded.

He said, given the change experienced in certain economic sectors, it is paramount to measure what’s currently taking place in the country as doing so will enable capture every economic activity including those that did not exist at the time the last GDP update was done.

“For example, if our GDP is at US$26 billion, you can only borrow up to a certain proportion of that, but when you capture certain activities which were not there, you’re adding growth to your country, and if it was to be done now it, and it reaches say about US$50 billion, it would qualify the country to borrow more and government income will also go up,” He said.

He added that for instance, the adoption of financial technology which has enabled mobile banking is one of the recent economic developments that has recorded phenomenal growth. The previous GDP measures or computations in the banking and financial services sector were only dependent on commercial banks.

But look at the contribution that mobile banking has brought on onboard, and the annual growth rates it has continued to record. Hence the need to include mobile banking activities in the GDP computation which have in the past shown tremendous growth in terms of revenues and financial inclusion. Its a sector that would also add more to the overall GDP numbers.

Dr. Mpembele said rebasing the GDP gives a fresh start to the economy and gives a clear understanding of the value of goods and services in a country thereby opening up doors for investors in the country.

He noted that GDP rebasing is an expensive undertaking which requires a lot of money but the value derived from rebasing far outweighs the costs, hence has asked government to find ways of sourcing for funds from both the treasury and from its corporation partners to ensure the exercise is executed as soon as possible. Its an important exercise that needs to be given due and timely consideration.

The Zambian Statistical agency had in 2019 projected that rebasing the GDP would cost about US$5 million. Some analysts have called for the national census exercise to not only be restricted to population and housing stats, but also include collection of economic data that could be utilized for economic planning purposes and possible GDP rebasing every decade.

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The Copperbelt University – CBU Economist Dr.

Companies

China Civil Engineering Construction Corporation – CCECC, the company contracted to build a new office block for the Law Association of Zambia – LAZ has disclosed that over 70% of work has so far been covered on the site and the building is set for completion in March 2021.

LAZ had in September 2019 initiated the building and development of a high-rise office block in Lusaka from its 2019 budget.

CCECC Project Manager James Ai told the Zambian Business Times – ZBT in an exclusive interview that the over K36 million (about US$2 million) office block includes the construction of a high-rise office (5 storey) block with associated external works, boundary wall, guard houses and perimeter fence and gates.

Ai told ZBT that more than 70 Zambians have so far been employed on the site and that work is moving on smoothly despite facing a few challenges arising from the Covid- 19 pandemic.

He added that workers have since been urged to keep safe while working amidst this pandemic, adding that the company is also ensuring every individual is adhering to the Covid-19 health guideline of keeping a distance, regular washing of hands and wearing a face mask.

“It is challenging to conduct construction works with the Covid-19 threats, however we have tried our best to keep our employees safe and so far, no one has been infected as we are also measuring their temperatures from time to time, in the morning when going in for work and afternoon when getting back from Lunch,” He said.

He further confirmed that health, safety and security measures are highly being managed and no employee has so far been injured on site while on duty.

LAZ had not responded by press time on what method of financing had been utilized to pay for the US$2 million building but indications are that contributions from members – practicing lawyers are a key revenue source for the association.

Professional associations in Zambia such as ZICA for Accountants and EIZ for engineers have all constructed notable head office building and are now embarking on constructing provincial offices to further penetrate and get more members across the 10 provinces of Zambia.

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China Civil Engineering Construction Corporation - CCECC,

Lifestyle

Permanent secretary – PS at the Ministry of Chiefs and Traditional Affairs Yande Mwape, has disclosed to Zambian Business Times – ZBT in an exclusive interview that only 10 out of the initial 32 earmarked chiefs palaces for construction and renovation have been completed and handed over in the first phase.

Mwape stated that the construction of chiefs palaces is being done in a phased approach and the that only palaces that have reached 80% and above in terms of completion rate are their main priority from the funding that has just been released.

Chiefs play an important role in preserving our heritage, tradition and culture as a country. Chiefs and traditional leaders are also now being tapped as anchors for cultural tourism events such as traditional ceremonies, which when commercialized, promise to become a key revenue driver from both local and international tourists. There are currently 288 chiefs and four paramount chiefs in Zambia.

Government through the ministry of Chiefs and traditional affairs had pledged to build palaces for all the 288 chiefs nationwide. However, funding challenges and priotizadion issues have derailed the completion of this project.

“This project started in 2014 and it’s being done in phases. Government’s policy is to construct and renovate palaces for all the 288 chiefs. In the first phase, we have about 32 palaces out which two are for renovations the rest are for construction”

“we have compete and handed over about 10 palaces in different provinces out of the 32 and then out of the 32, we have about 17% that are above 80% completion rate, in-fact some of them almost 100% completed, jus the final touches remaining.

So the funds that where released by the treasury and paid directly by the ministry of finance, is targeting mainly those that are 80% and above in terms of completion rate, so we are hoping that by the end of the year, these can be completed and handed over, she said.

Mwape stressed that as soon as they finish the first phase of the project, the ministry of chiefs will proceed to start the next phase as they want to first finish working on all the palaces that are near completion.

“We can’t even talk about moving to the next phase, not until we finish the first phase. So our target is to finish the first phase, then we can move to the second phase you can imagine from 2014 to-date, we have only completed and handed over ten (10). It’s all dependent again on the availability of funding and financial resources allocated”, she said.

The Ministry looks forward to complete those that are 80% and above and they are in a race against time because the rain season is around the corner. But questions have arisen on the lack of prioritizing of chiefs and traditional leaders palaces.

We made to admit that the building of 288 chiefs palaces has simply been ignored or not been prioritized, as the nation, has seen how Defence and Police have benefited from a robust housing development executed across the country.

Government leaders have been challenged to take a more serious look at the plight of our chiefs as part of the problems Africa and in particular Zambia faces today, has been the neglect of traditional and cultural values and its custodians. This is an overhang and entrenched strategy executed by colonialists which still haunts the civil service even today.

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Permanent secretary - PS at the Ministry

Tech

The Copperbelt University – CBU developed Automated Walk In Sanitizing Innovation – AWISI have now been fully developed, tested, installed and operationalized, with the Kitwe based university now ready to start taking more orders for tailored installations.

Speaking in an exclusive interview with Zambian Business Times – ZBT, CBU Dean School of Engineering, Dr. Lennox Siwale has disclosed that the full body walk through sanitizers are ready to be purchased by both public and private organizations as well as individuals.

He told ZBT that several ministries have already bought the walk through sanitizers which have even been installed and are operation as we speak. “We have installed quite a number, in Lusaka, the total number installed is about 10”.

Dr. Siwale stated that “we are in the process of installing another 5 in Kabwe. We have installed in various ministries like Ministry of Higher Education, General Education and the Judiciary. We are also going to install at Mulungushi University”, he said.

The team that has locally designed and developed the full body walk through sanitizers is led by Dr. Lennox Siwale Dean School of Engineering at CBU, with key team members that include Dr. Dickson Chembe and George Mugala. These are the brains behind the Zambian home grown solution of called the Full body Automated Walk In Sanitizing Innovation – (AWISI) designed to combat the covid 19 pandemic.

When asked about the purchase price of AWISI, Dr. Siwale stated that they do not have a fixed price per say because it is dependent on the customer’s needs, specifications and also transport and installation costs that comes into play. So, each request is costed and a quote given for those interested to procure the innovation.

Like all innovations developed into products, AWISI is still being improved on as we build more and more machines “Since its a work-in progress, and dependent on specific requirements, we have to factor in each order specifics costs such as transportation, size of machine or entrance etc, So the final cost may vary from order to order”, he said.

He disclose that the full body sanitizers are made of three main sections. “It is composed of three sections, there is the frame itself, there is the pumps section which is also equipped with the spray pipes and nasals and then there is the control which is the sensing gadgets with a motion sensor which senses your presence as you are approaching the frame and that sends the signal to the pump to supply the sanitizing liquid through the nasals as you pass through the body”.

AWISI works in a way that immediately you exit the frame, the sensors switches off the pump. But if you have several people passing through, it will keep on pumping. AWISI has a storage capacity of 500 litters as well”, he said.

Dr. Siwale told ZBT that CBU and his team can make as many sanitizers depending on the customer’s request, and is encouraging institutions, especially places with high traffic to come on board and make orders.

“I would like to encourage other institutions to come and place their orders, we can only make as many as the orders placed, because we have to put the materials together and transport them to the sites and then install”, he said.

The AWISI will help in the prevention of the further spread of the coronavirus and the CBU Dean of Engineering says they have ensured that the type of sanitizers use meets the health standards as the sanitizers get into contact with the body of the persons walking through. We have taken extra care to avoid any irritations of the skin for people walking through.

AWISI can also be used at learning institutions and schools entrance to prevent the spread of Covid 19. Who knows, this may just be the innovation that can allow Zambia to re-open its schools and lead the rest of Africa to with a home grown solution.

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The Copperbelt University - CBU developed Automated

Mining

A Copperbelt based cement distributor has accused cement companies of forming a cartel that agreed to increase market prices simultaneously so that they can maximize their profits.

Speaking in an exclusive interview with Zambian Business Times – ZBT, a concerned Copperbelt based distributor whose name has been withheld said that a cartel has been formed by these cement companies because it’s odd that they all increased their prices at the same time.

“We first as distributors received the sms notification from Dangote that they are increasing, then Lafarge followed and then Sinoma, just like that. And it was all happening within a space of about two to three weeks”, he lamented.

The cement distributor furthermore said that the basis of increasing the cement prices that has been given so far is not satisfactory, it is not justified because most of the input material like limestone, energy, gypsum are all sourced locally. Moreover, fuel and the Kwacha to US dollar exchange rate has remained stable.

Although I am a distributor, I’m personally not happy because this is unacceptable and is exploitation of the local Zambian market. There is no fuel price hike and the dollar is stable, so what is the justification of their increment?. Everybody is affected with COVID-19, but how much of imported material do they use, most of it is local. And they have increased by over K20 or US$1 per 50kg bag.

Furthermore, he said that the cement factories have hiked their cement prices simultaneously and wonder where the people who are supposed to stop this vice are. “You know the sad part is that everybody has increased their prices simultaneously. So where the authorities and what are they doing about it?

“Everybody needs cement. For example in Chipata the price of cement is almost K135 per 50kg bag of 32.5N, How about Mongu and Mansa?! now some are even selling at K140 per 50kg bag,” the source told ZBT.

Another sourced asked that CCPC should review all most recent price increases and see which CEO tenor coincides with these increments. There are certain things that are connected, with serious investigations, this whole increment will unravel the people behind it.

The source told ZBT that it is unacceptable and defeats the whole purpose of having more players in the cement industry. We were told that with more cement companies coming on board, there would be competition, and that will bring the prices down but look at where we are now.

As a distributor, I have spoken to other citizens and there is strong suspicion that there is a cartel formed. We are just wondering where the authorities are and organizations like the Competition and Consumer Protection Commission (CCPC) are doing about this.

CCPC confirmed to ZBT that they had instituted a formal investigation that is targeted at four cement companies. The companies include Dangote, Lafarge, Zambezi Portland and Sinoma (Mpande Limestone).

CCPC did not however give timelines on when or how long this investigation would take before an offices update is given to the nation. CCPC Executive Director told ZBT that the investigations are at a delicate stage and he would announce details at an appropriate time.

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A Copperbelt based cement distributor has accused

Lifestyle

The Ministry of Youth, Sport and Child Development has embarked on a program in conjunction with Zambia National Service [ZNS] to provide skills training to street kids to impart them with life changing skills and a better life.

Speaking in an exclusive interview with Zambian Business Times – ZBT,  Permanent Secretary to the Ministry of Youth, Sports and Child Development, Joe Kapembwa stated they want to start with 1,000 street kids for the first intake.

Kapembwa told ZBT that the partnership between the two institutions will ensure that the street children are not given military skills but life skills such as crafts, trades, Agro skills etc.

When asked by ZBT how the program intends to accommodate the street kids since most of them have no fixed aboard, Kapembwa stated that their partner, ZNS has adequate accommodation that they used to train all grade 12s some time back, which is still available today and may just need a bit of touch ups.

“We intend to get at least a one thousand (1,000) for starters. Remember that ZNS used to train grade 12s; those facilities are still available. People used to go there and they used to stay in the camps, so those are still available”, he said.

In addition, Kapembwa said that the reason they chose to work with ZNS is because they have the capacity and technical know how to train people and instill a sense of discipline. ZNZ is also very good in terms of mindset change and inculcating a sense of being productive.

“Basically, the MOU with ZNS is for us to work together as two government institutions. You know that ZNS is a Semi-Military institution. The idea to work with ZNS is that they have facilities where they train cadets and so on. So we thought that we can work well with them and they are strong in terms of mindset change, and that’s where we want to build from.

“Of course it’s not to train the children in military skills, but rather mindset change and other important life skills so that as they are coming from the ZNS training centers, they have the skills to enable them earn an honest living”.

The Ministry we will provide them with an exit strategy either they can become mechanics, plumbers, electrician, go into agriculture and various other skills that will be provided to them p.”, he said.

On the target locations from where the street kids will be recruited from, Kapembwa told ZBT that this issue of street kids is mostly along the line of rail. This is were we have seen the breakdown in the extended family system.

He said that other towns and district in Zambia still have strong community and cultural values which enable the taking care of Orphans and vulnerable children by the extended family system as well as community members. That’s why we see the issue of street kids being mainly concentrated along the line of rail. However, this program is national and aims to end the challenge of children being raised on the streets across Zambia.

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The Ministry of Youth, Sport and Child