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First National Bank (FNB) Zambia, has partnered

Mining

Mutinta Jewellery invest US$3.2 million in Gemstone processing plant

A Zambian company, Mutinta Jewellery has invested over US$3.2 million into a diamond and gemstone processing plant which is expected to manufacture jewellery from diamonds, gemstones and other precious stones.

The plant which is set to operate fully before end of August 2020 has projected production of over 15 to 25,000 carats per annum and is expected to directly employ about 200 Zambians at the plant while about 100 individuals will be indirectly hired.

Speaking during a tour of Mutinta Jewellery and Gemstone processing plant in Lusaka on July 30, 2020, Permanent Secretary in the Ministry of Mines and Minerals Development Barnaby Mulenga pledged the ministry’s support to the company as it is in line with government’s policy of value addition and empowerment of local entrepreneurs.

Mulenga is pleased that the development of the processing plant will promote value addition as the industry is currently exporting raw gemstones before processing, hence the set up of a local processing plant will enable small scale miners sell their precious stones in raw form, which can then Ben polished locally before exporting.

He said the ministry of Mines in conjunction with the Ministry of Commerce, Trade and Industry will enable trade facilitation for the company to easily penetrate the regional markets as this will help in developing the sector and generate more forex for the country.

“We want to pledge our commitment in supporting this company as this is a very good investment and will definitely bring in value addition, so we will help you with trade facilitation so that you have a market and its good you will be polishing already existing stones,” the Mines PS said.

He added that government therefore looks forward to the exploitation of Zambian precious stones and gemstones and has encouraged Zambian small scale miners to take advantage of this facility that will create a local market.

And Mutinta Jewellery Chairperson Msafiri Sinkala said the set up processing plant is meant to make Zambia a market place for diamonds, gemstones and other precious stones for Jewellery and empower small scale miners to bring their stones for processing and earn better returns on their efforts.

“We have also engaged experts from China who are transferring skills to Zambians and we have already started doing a test run for most of the machines and will want to make sure that everything is up and running without any problem before full operations begin in August,” He added. For more details contact email: info@zambianbusinesstimes.com

August 5, 2020

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A Zambian company, Mutinta Jewellery has invested

Lafarge attributes cement price increment to high input costs

Top cement producer, Lafarge Zambia has confirmed the increase in its cement prices on the market by about 20% and has attributed the increase to the current macro-economic factors that the country is facing which have been exacerbated by the effects of the Covid-19 pandemic.

A random survey conducted by the Zambian Business Times – ZBT team showed that all cement manufactures have increased market prices in the last one week from as low as K95 per 50Kg bag to K125 per 50Kg and K81 per 50Kg bag to K119Kg respectively.

And when Lafarge was contacted for a comment, the company’s Corporate Affairs and Communications Manager Sarah Banda told ZBT in an exclusive interview that the company has increased the cement price in order to sustain business operations and ensure that it continues to provide quality cement to its valued customers.

She said the company’s operation and input costs have significantly increased, the most notable being maintenance, transport and packaging material costs which have increased by an average of 33% in the last six (6) months.

“It should also be noted that we don’t comment about the prices of competitor cement producers. We take pricing decisions unilaterally and primarily on the basis of our own business circumstances and conditions,” She said.

However, the market sentiment is that cement prices may increase further going forward and when asked if Lafarge is likely to increase or reduce its prices going forward, Sarah said pricing is determined by many factors including but not limited to escalation of costs hence pricing decisions will be dependent on the performance of these macro-economic factors.

Lafarge Zambia has been operating in Zambia for 71 years now with a wide footprint of projects and distribution outlets. Lafarge is part of the LafargeHolcim group, which is globally the largest cement producer in the world.

August 5, 2020

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Top cement producer, Lafarge Zambia has confirmed

Mining

Cement price hike linked to shortage of gypsum & closure of Chambishi metals

Great wall cement, a brand name one of the cement products for Baudot Cement Zambia Limited who were the only company whose cement prices remained unchanged has disclosed to the Zambian Business Times – ZBT in an exclusive interview that they are also increasing their cement prices effective tommorrow 1 August, 2020.

Baudot Cement Zambia Business Manager Mira Zheng told ZBT that there has been a hike in gypsum prices from about US$30 per tonne to over US$75 per tonne, which is over 100% increase in a major input, which has forced the company to follow suite and increase its cement prices. Zheng stated that the company would like to keep the prices down but the price of gypsum which was mostly locally supplied has shot up.

There is shortage of gypsum locally and this is what is leading to the sudden sharp increase in prices. Baudot cement used to get its gypsum from Chambeshi metals but because the company had gone on care and maintenance [basically closed in terms of operations], there is a shortage and the suppliers who have it have hiked the prices by over 100%.

In January 2020, ZBT reported that ‘the announced shut down and placement on care and maintenance of Chambeshi Metals threatens to impact the construction industry negatively through price escalation as the company is the country’s major producer of gypsum, a key ingredient in the manufacturing of cement”.

Chambishi Metals, which is owned by Eurasia Resources Group – ERG produces gypsum which is used in cement manufacturing and is a very important ingredient. So if Chambishi Metals ceases production, the cement price will most likely go up because the manufacturers of cement have to resort to imports from South Africa and else where” – see ZBT January article…

Baudot Cement’s great Wall cement brand will increase its cement prices effective tommorow 1 August 2020 from K90 for a 50kg bag to K110 without delivery and K119 with deliverly within Lusaka.

The Zambian Business Times – ZBT had called for the amicable settlement between the owners of Chambeshi Metals, the Mine Workers Union – MUZ and the Zambian government in January 2020 to ensure that the company remains operational as it impacts heavily on the cost of construction in Zambia.

The country is currently undertaking huge infrastructure projects and most of the citizens have also engaged in residential and commercial building to plug the gap in housing and commercial building.

Now that its becoming clear what the reasons behind the sudden hike in prices is because of the closure of Chambishi metals, there is need for urgent efforts to resolve the operational challenges and agree on how full local gypsum production can resume immediately. There is need to restore or cut down the overall cement market prices which has gone up by over 30%.

July 31, 2020

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Great wall cement, a brand name one

Zambia posts another trade surplus on copper price increase

Zambia has recorded a trade surplus valued at about K1.6 billion in June 2020. This surplus however is on a reduced level from a surplus of K3.9 billion recorded in May 2020. On a month on month basis, the surplus decreased by about 60%.

This trade surplus basically means that the country exported more than it imported in nominal terms. Exports which mainly comprise of domestically produced goods decreased by 11.5 percent from K10,524.5 million in May 2020 to K9,317.2 million in June 2020.

Zambia Statistics Agency – ZamStats Statistician General Mulenga Musepa explained that the decrease was mainly on account of an 18.6% decrease in export earnings from intermediate goods, that include semi – processed copper.

Speaking at a media briefing attended by the Zambian Business Times – ZBT on July 30, 2020, Musepa said however that imports increased by 16.1% from K6,681.1million in May 2020 to K7.8 billion in June 2020 and that the increase in imports was mainly as a result of a 29% and 54% increase in imports of Capital goods and raw materials respectively.

He said the total trade for the period January to June 2020 increased by 5.4% to K96.9 billion from K91.9 billion recorded in the same period of 2019.

Meanwhile, Traditional Export Earnings (TE’s) decreased by 17.7% from K8.3 billion in May 2020 to K6.8 billion in June 2020 and in terms of share in total exports, TE’s accounted for 73.0% revenue earnings in June 2020.

Musepa said Non- Traditional Export Earnings (NTE’s) increased by 11.3% from K2.3 billion in May 2020 to K2.5 billion in June 2020 and in terms of shares in total exports, NTE’s recorded a 27.0% in June 2020.

He added that Refined Copper export earnings in June 2020 declined by 21.0% to K6,226.8 million from K7,883.0 million in May 2020 while Refined Copper export volumes in June 2020 declined by 25.8% to 61,052.6 metric tone (mt) from 82,287.5mt in May 2020. But “LME copper prices increased by 9.7% to US$5,742.4 per metric tonne in June 2020 from US$5,233.8 per metric tonne in May 2020,” He said.

July 31, 2020

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Zambia has recorded a trade surplus valued

Companies

Sinoma attributes 30% cement price hike to high production costs

Sinoma Cement Zambia, a part of CNBM of China has attributed the recent increase in its cement prices on the Zambian market to the high and escalating cost production and transportation in the country, saying the price of raw materials from its suppliers have also been increased.

The Zambian Business Times – ZBT team conducted a random survey on July 29, 2020 which showed that the market has experienced price changes in the last one week for all cement brands with a change of over 17% from as low as K95 per 50Kg bag to K125 per 50Kg and K81 per 50Kg bag to K119Kg respectively.

A source within Sinoma, who requested that their identity should be withheld has confirmed the development to ZBT in an exclusive interview and disclosed that a 3 weeks’ notice was given to its distributors countrywide before the new hiked price was changed during the course of this week.

The source said prices for a 50Kg bag for Sinoma Cement have increased from K95 to K119 for the 42.5R grade cement and K81 and to K114 for the 32.5N grade cement, saying the changes have been determined with regards to the current changes that the company has experienced in terms of the cost of production.

It has been noticed that cement producers has increased the price by a similar margin when they all have different cost structures, age of manufacturing plants, technology used and limestone locations which has raised suspicion with some stakeholders alleging that a cartel has been formed.

And when asked if this uniform price was negotiated among manufactures, Sinoma source could not explain this coincidence but added that the recent price changes for Sinoma were determined by the company itself and not by other brands.

“Sinoma, specifically has been challenged on production cost because we buy most of the raw materials whose price happen to have gone up as well and employees are working from home on full pay due to the Covid -1 9 pandemic, hence all this has triggered the move, otherwise I do not know about price changes with other cement brands,”

When further asked if prices are likely to increase further going forwards from the feedback from distributors who spoke to ZBT, the source explained that depending on the situation, prices may increase when things get worse or reduce if things get better.

CCPC whose responsible director has remained mute sent a whats app/sms message to ZBT through their Public Relations Officer – Namukolo Munyeme-Kasumpa that the commission has launched investigations and the investigations are still ongoing.

Some experts have told ZBT that the cement companies should be challenged to share their cost of production and pricing formulas for scrutiny but the relevant authority, CCPC, is yet to give any indications except that most of their staff are working from home due to COVID 19.

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Sinoma Cement Zambia, a part of CNBM

Companies

FNB Zambia launch Private Clients Offering

FNB Zambia has announced the availability of the Private Clients offering which completes the Retail Banking suite of products and combines both debit and credit facilities in one signature card.

FNB Zambia Chief Executive Officer – CEO Bydon Longwe says the offering also gives qualifying customers the requisite level of service and access to manage their finances and complement their lifestyle preferences.

He said the Private Clients proposition is underpinned by the fusion of convenience and rewards, ensuring that the distinguished Private Client enjoys personalised banking solutions and exclusive benefits & services that suit the lifestyle and life stage of its qualifying customers.

“We are thrilled to introduce our Private Clients offering, further establishing ourselves as a mature player in the financial services sector since opening our doors in 2009. A key feature is that Private Clients will get a signature card offering both debit and credit card facilities in one,” He explained.

In a statement made available to the Zambian Business Times – ZBT on July 28, 2020, Longwe said qualifying customers will also have access to the following benefits such as access to FNB Lifestyle Alliance Partners, the highest tier of Cash Back rewards, Preferential rates for deposits and loans, life assurance, global concierge services, and many more.

He added that this proposition ensures that FNB is on hand to provide its clients with the banking they need, coupled with the benefits they deserve, furthermore, the product is enhanced by the Bank’s digital backbone – giving customers more control of their finances wherever they are.

“In addition to existing platforms such as the FNB APP, FNB Zambia Private Clients will also have direct access to a dedicated Private Banker who will be on hand to offer banking services and investment-related advice tailored to their unique financial circumstances to protect and maintain their assets,” He said.

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FNB Zambia has announced the availability of

Companies

BoZ launch 2020-2023 strategic plan

The Bank of Zambia – BoZ has launched its new strategic plan, covering the period 2020 to 2023, under the theme, “Building an Inclusive and Resilient Financial Sector”.

BoZ Governor, Dr. Denny Kalyalya has stated in a statement made available to the Zambian Business Times – ZBT on July 28, 2020, that the 2020 to 2023 Strategic Plan represents the priority areas the Bank wants to concentrate on during this four-year period hence the Bank has picked on Financial Stability and Financial Inclusion as the two focus areas for the Plan.

He said in the area of Financial Stability, the Bank will pursue initiatives such as Strengthening Micro-prudential and Macro-prudential Regulation and Supervision, Develop and Strengthen Financial Market Infrastructures Oversight and Enhance Data Collection, Management, and Application.

He added that with regard to Financial Inclusion, the Bank will also focus on Promoting Digital Financial Services, Pushing the Rural Finance frontier forward, increasing availability of Children and Youth friendly financial products, Disseminating Zambia’s financial inclusion information and Mainstreaming Gender in the Financial Sector.

“In the Financial Inclusion space, we are aware of the huge challenges that still need to be addressed to bring more Zambians into the banked population.Therefore, by adopting financial inclusion as a focus area, we want, among other things, to contribute to the attainment of the National Financial Inclusion Strategy formal financial inclusion target of 70% by 2022 and to reduce the gender gap to 5% by 2023.” He said

Dr. Kalyalya added that given the severity of the Coronavirus (COVID-19) pandemic, the Bank has had to avoid hosting a physical event to launch the new strategic plan but rather implore its esteemed partners and other stakeholders to visit the website (www.boz.zm) to access the 2020- 2023 Strategic Plan and other important information about the Bank and its operations.

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The Bank of Zambia - BoZ has

ZSIC Life decision to list on LuSE postponed

The Zambia State Insurance Corporation – ZSIC Life has postponed its decision to get listed on the Lusaka Securities Exchange – LuSE to a date which will be confirmed by the end of this year 2020.

Government had in 2019 announced its intentions list both ZAFFICO and ZSIC Life on LuSE to enable the two state owned companies raise more capital for investments as well as achieve the added benefits of listing which result in improvement of corporate governance and adoption of best in class business practices. ZAFFICO has since listed but ZSIC has not.

However, the corporation which was set to list this year 2020 has expressed its desire to still get listed on market indicating that it is currently working on its internal systems which need to be advanced and upgraded if it were to join the public stock market.

ZSCI Life Managing Director Christabel Banda told the Zambian Business Times – ZBT in an exclusive interview that the company’s directive to sell some of its equity or shares on the stock market is on the cards as it is currently ensuring that internal processes are strengthened by having all the systems fully automated especially with the kind of business it’s in.

She disclosed that about K3 million has been invested in advancing these internal systems and that this process will come to an end in December this year, after which, the Corporation will now make a concrete decision as to when to list on LuSE.

“We need to fully work on our internal systems as we have been using outdated ones. We also need to ensure that we are fully automated. We are also dealing with all the legal issues as we have certain liabilities of the long term nature. This process has improved and we anticipate to finish by December this year,” She told ZBT.

She added that the Corporation has already stated registering its shares on the stock market as phase one of the project and that applications have already been done hence hoping to complete this process in the next two months.

Banda further said ZSIC is also in the process of developing its new strategic plan for the next five years, hence it gives the company an opportunity to craft its future and ensure customers are satisfied in terms of services delivery.

“We appreciate support from our clients during this transformation period which we have undergone for the past 2 years and we have made progress in terms of the quality of services we are giving” She concluded.

Calls to list and offer at least 20% stake to locals for state owned enterprises – SOEs held under the Industrial Development Corporation – IDC are valid as reporting and corporate governance practices which come with listing would root out most of the inefficiencies that these companies are currently struggling with and result in efficient and profitable companies.

Finance Minister Dr. Bwalya Ngandu had in 2019 directed IDC to ensure all SOE’s either shape up or become profitable and stop being a drain on the treasury. Listing these SOE’s on LuSE is seen as a major step to infuse professionalism and efficiency into these companies, some of which have management teams that are incompetent and solely rely on political patronage to hold on to their positions.

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The Zambia State Insurance Corporation – ZSIC

July inflation drops in line with mealie meal prices

The year-on-year inflation rate has for the second consecutive month in a row recorded a reduction. For the month of July 2020, inflation slightly dropped to 15.8% from 15.9% recorded in June 2020 attributing the development to price decreases in food items.

Zambia Statistics Agency – ZamStats Statistician General Mulenga Musepa has disclosed during a media briefing attended by the Zambian Business Times – ZBT on July 30, 2020, that the annual food inflation rate for July 2020 was recorded at 16.1% compared to 16.3% recorded in June 2020 indicating a decrease of 0.2 percentage points.

He said this is attributed to reductions in prices of food items such as Cereals (Breakfast mealie meal, Roller mealie meal, Maize grain, Samp) and Vegetables (Rape, Tomatoes, Cabbage, Onions).

Meanwhile, the annual non-food inflation rate for July 2020 was recorded at 15.4% compared to 15.5% recorded in June 2020, meaning that on average, prices of non-food items increased by 15.4 % between July 2019 July 2020 and the slowing in the annual non-food inflation rate is attributed to price movements of purchase of Motor vehicles. Motor vehicles which are imported recorded a slight reduction on the slight gain in the Kwacha to US dollar trading pair.

Musepa further explained that at provincial level Lusaka made the highest contribution of 5.0 percentage points to the overall annual inflation rate of 15.8% recorded in July 2020, implying that the price movements in Lusaka Province had the highest influence to the overall annual inflation rate.

“Copperbelt Province has the second highest contribution of 3.0 percentage points while North Western Province had the lowest contribution of 0.5 percentage points,” He added.Price movements in the top three economically active provinces of Copperbelt, Lusaka and Southern provinces are key to the overall country inflation number.

For non-food inflation, the stability of the Kwacha is a key determinant as most of the items in the basket are imported. Zambia’s manufacturing base remains low and efforts to revive it are still to bear the desired fruits.