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Government is not aware of the challenges

Team of experts set up to explore traditional medicine that can cure covid 19

The University of Zambia (UNZA) has constituted a team of experts that include Medicinal Chemists, Drug Discovery Scientists, Virologists, Botanists, Pharmacologists and Pathologists to help in the discovery of home-grown low cost cures for the COVID-19 pandemic.

The consortium of experts will be exploring Zambian traditional medicines/plants and clinically-established drugs in the Zambian Formulary as potential treatments for COVID-19.

The team comprises Dr James Nyirenda (the lead investigator), Dr Peter Mubanga Cheuka, Dr Edgar Simulundu, Dr Angela Gono-Bwalya, Dr Takondwa Chidumayo, Dr Katendi Changula, Dr Caroline Chisenga, Dr Wezi Kachinda and Mr Kelly Chisanga.

According to a statement made available to the Zambian Business Times – ZBT by UNZA Head of Communications Brenda Bukowa on July 15, 2020, the team’s core mandate is twofold; firstly, to discover and develop medicines that are readily available for the local population and secondly, to discover and develop local medicines optimized for effectiveness and safety on an African or local population.

Meanwhile, the consortium of experts has since received funding from the Ministry of Higher Education through the National Science and Technology Council (NSTC). The funding received will be used to kickstart the project.

And University of Zambia (UNZA) Acting Vice Chancellor Dr. Tamala Kambikambi has paid glowing tribute to the consortium of researchers championing the discovery and development of the anti-COVID 19 pandemic drug. Dr. Kambikambi says UNZA’s research undertaking will solve the problems exacerbated by the unavailability of medicines discovered and developed elsewhere on the African continent. She adds that Zambia has lagged behind in the area of drug discovery and development since independence hence the urgent need for UNZA to take a lead.

The Acting VC has also expressed gratitude to the National Science and Technology Council (NSTC) through the Ministry of Higher Education for the funds received to kickstart the project.

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The University of Zambia (UNZA) has constituted

Sport

Covid 19 results into e-Safari rally

The challenges to sport caused by the covid 19 pandemic has led to motor sports enthusiasts organizing an e-rally to keep their sport alive and find alternative ways to continue living their lives in the new normal.

In a statement made available to Zambian Business Times-ZBT, Zambia Motor Sports Association (ZMSA) president Sam Chingambu has disclosed that Zambia has participated in the 16 July, e-SAFARI RALLY.

And one of contestant from Zambia Muaaz Essa managed to come 23rd in a race that had participants from all over the world.

“Literally the whole world had entered the competition and we have two participants in the competition. The country that is organizing is Kenya since the safari is cancelled, they have decided to go E- racing”

In addition, Chingambu says that the two Zambian participants had been training and are ready to compete in this race.

These are the two who feel they are ready and can participate at that level according to the schedule that is given and hopefully win. That Championship”, he said. It means an individual has participated in digital or PlayStation”, he said.

Furthermore, he said e-racing is similar to playing a video game or a simulator that is used to train pilots. Using a unique software, one can race using a PlayStation, Xbox or PC.

You can participate in a PlayStation just like a normal video game, there are those who have got that platform.

However, he stressed that these kind of PlayStations are very expensive and they are in talks with Federation Internationale de l’Automobile (FIA), to assist them land more machines at better price points for motor sports enthusiasts.

“The two participants don’t have their own PlayStation because the PlayStation is quite expensive as well. And this is where we are now trying to see if FRA can help us because e need to buy these PlayStations”, he said.

Chingambu says that FIA is assisting the association in funding, finding of equipment or acquiring this required software. He further reiterated that this will be a serious venture and they are not doing it for fun.

“The first thing is to try and see how we can set it up locally amongst ourselves, covering all the 10 provinces or start with regions that can work. If it can, then yes, there are other platforms where now you can compete with other countries to make it more exciting and challenging”.

“In terms of funding, FIA has also come on board. They are trying to see how best they can help us acquire this equipment and software to make sure that we are competitive and registered under FIA. It’s not something that we are going to do for fun it has to be competitive”, he said.

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The challenges to sport caused by the

Tech

Use of US$4m universal access fund at ZICTA questioned

The use of the Universal Access and Services Fund – UASF by the Zambia Information Communication Authority – ZICTA has been questioned following the delayed completion of rural communications towers project and skewed eligibility criteria that has made it difficult for the intended rural schools to access the funds.

ZICTA has been challenged to aggressively drive the delayed completion of communication towers project and mobile network quality in rural areas as well as channel more resources to learning institutions and rural based schools that dearly need the support.

ZICTA corporate communications manager Ngabo Nankonde told the Zambian Business Times – ZBT that the fund is financed through contributions of 1.5 percent of gross annual turnover collected from all licensed mobile network operators.

A check in the 2018 financial report shows that the fund received about K70 million (about US$4 million in one year). This fund collections is expected to increase annually as the Telecoms industry continues to expand.

“Contributions to the Fund are made by operators licensed under the information communication Technologies Act which states that a licensee shall contribute, in accordance with section 70 the ICT Act, at the rate not exceeding 1.5 percent of gross annual turnover collected by the Authority under the licensing regulations”, she said.

ZICTA has put place stringent eligibility criteria for learning institutions to access funding which leads to most rural based schools and colleges failing to qualify for support. This process and eligibility criteria is in itself defeating the purpose of the fund which even by its name is for “universal access”.

ZICTA has embarked on then Last Mile Connectivity to Zambia Research and Education Network (ZAMREN) Member Institutions. The project is being implemented in partnership with ZAMREN and it focused on the provision of internet connectivity to education and research institutions through fibre connectivity.

The other key project is the connection of learning institutions. ZICTA has embarked on this project targetted to supply computers to Government schools and tertiary institutions. As such, based on a strigent eligibility criteria, a number of school were selected as beneficiaries of computers meant to strenghten provision of information technology in schools.

Nankonde told ZBT that the Universal Access Regulations provide guidance on how universal access funds may be invested. In particular, Regulation 19 allows the Fund to invest in any interest bearing accounts of any bank or institution.

The fund can also invest in stocks, securities or funds issued by, or on behalf of, the Government or in stocks, securities or funds guaranteed by the Government or in such other investments as may be approved by the Authority.

When it comes to utilization, ZICTA confirmed that the Fund uses the guiding principles outlined in the ICT Act and Regulation 4 of the Universal Access Regulation which states that the promotion of universal access shall ensure the provision of the service to unserved and underserved area meets the requirements of affordability, accessibility, availability, sustainability and quality of service.

The fund can also be utilized to encourage initiatives to extend, upgrade and expand the capacity and roll out of existing infrastructure in specific areas to unserved or underserved areas, including initiatives by local communities.

The ZICTA communications Manager confirmed that In addition, she said that the USAF is audited and the current auditors are Office of the Auditor General and MPH Chartered Accountants and published for public to review.

On the delayed completion of the Construction of communication towers under Phase II which has continued the raising of the mobile network coverage across the country to about 92%m ZICTA told ZBT that this project is being handled and implemented by ZAMTEL.

The “attainment of 92% population coverage with mobile network is tied to completion of the Government’s 1,009 telecommunication Towers Project which is being managed by ZAMTEL”, she said. Zamtel which recently had its operations for towers hived off to set up an independent company called Infratel has been engaged to advise the completion date.

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The use of the Universal Access and

Works on re-scoped roads resume – RDA

The Road Development Agency – RDA has disclosed that works on 31 selected and re-scoped road projects have resumed and are expected to be completed within the period of 18 months.

Housing and Infrastructure Minister Vincent Mwale recently announced that government has reduced the allocation of funding for 31 road projects across the country from K16 billion to K9.5 billion due to challenges of funding.

RDA Corporate Communications Manager Masuzyo Ndhlovu disclosed to the Zambian Business Times – ZBT in an exclusive interview that the road project’s restructuring involved re-scoping from upgrading to bituminous standards to construction of all-weather gravel standard roads.

He said among the roads to be re-scoped include Petauke and Chilingozi road which is divided into two lots of 118Km stretch and 132 Km reaching as far as Mambwe. Ndhlovu added that other roads to be worked on include those from Chipata to Chadiza and those heading to Vubwi in Eastern Province.

Ndhlovu said the 31 road projects which span across the 10 provinces of Zambia have already undergone down scaling through contract re-negotiations and variation. “Most of the works on these roads were stalled but now, they have started and these will be all weather gravel roads,” He said.

On the progress of road tolling program which is now a key financing option for future road construction and maintenance, the RDA communications Head disclosed to ZBT that the Musokotwane toll plaza as you enter or exit Livingstone is at 90 percent completion state and only remaining with fitting of equipment and booths, hence once this is installed the project is scheduled to be in operational within this year.

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The Road Development Agency - RDA has

Agribusiness

TBZ invests in electronic platform to facilitate tobacco industry regulation

Tobacco Board of Zambia – TBZ has invested in a farmer electronic registration and monitoring system called the “Bright Leaf System” aimed at enhancing its regulatory role in the production, buying and selling of tobacco in the country.

TBZ disclosed that tobacco being a regulated crop needs a sophisticated system to facilitate and tracking of production, processing, manufacturing and export of the crop. Zambia currently exports over 90% of all the tobacco produced locally, making the crop a viable alternative for increasing forex earnings.

Zambia has experienced challenges were some farmers involve themselves in what is called vending and site selling which has frustrated the full growth potential of the tobacco outgrower farming model. Some farmers whose inputs where sponsored by particular buyers or out-growers with an ultimate goal of selling back to them end up selling the commodity to other buyers and in return, disadvantages the sponsors.

TBZ Chief Executive Officer – CEO James Kasongo told the Zambian Business Times – ZBT in an exclusive interview that site selling and vending has since pushed buyers to limiting their investments in the outgrower model.

To address this challenge, TBZ has invested in the development of an electronic system that would facilitate registration of sellers (mostly farmers) and buyers, tracking of outgrower contracts through inputs distribution and reciprocal deliverly of the crop and eventual marketing and sales through the official tobacco sales floors.

He added that the farmer registration system which came into effect this year 2020 is also meant to capture every tobacco farmer in the country, issue membership cards to be used to both capture farmer activity and be used as a basis to grant access to official trading floors, which would eventually weed out those involved in site selling and vending.

“We came up with the idea of creating a system to facilitate the registration of farmers and outgrower as well as regulating the buying and selling system of tobacco. If the industry is left uncontrolled, most buyers who first have to invest in outgrower schemes will not have interest of staying in such a business environment as their investment is not protected”.

Hence, as TBZ, we needed to arrive at a win win situation for both the tobacco buyers and the tobacco seller (mostly local farmers) on outgrower Schemes or contracts. So given that the industry already has limited buyers of tobacco, we came up with this system that takes from the best practices in the region such as South Africa, Zimbabwe and Malawi who are big tobacco producers, He said.

Kasongo further told ZBT that the board was previously registering farmers manually which was difficult and tedious when it came to tracing farmers, but that the new system makes it much easier to trace farmers, their farm locations with information being available at the finger tips. In addition, the system is able to show the trading and sales flow and keeps a record on quality of tobacco grown by a specific farmer.

TBZ further disclosed that the bright leaf system is also meant protect sponsors or uptakes who invest in outgrower farmers then end up losing out when the tobacco is being vended out despite the farmer signing outgrower contracts and receiving inputs. This system also has global positioning system – GPS and is being loaded with details for both sponsored and self-sponsored farmers.

TBZ is now able to monitor who sponsors who, as well as have an updated electronic tobacco farmer register which is vital for tracking production and industry dynamics, He added. This system together with the updating of the regulation is expected to dramatically change the tobacco landscape in Zambia and move the country to produce competitive volumes and export earnings from this crop, Kasongo said.

Tobacco in Zambia is currently being produced in six regions and has 5 official sales floors across the country. Lusaka Province has two (2) sales floors or points, Eastern Province has two (2) while Western Province has one (1).

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Tobacco Board of Zambia – TBZ has

Companies

Only 452,000 households connected to piped water

The National Water Supply and Sanitation Council – NWASCO has disclosed that only 452,000 households are connected to piped water, trailing the electricity utility ZESCO which surpassed 1 million household customers last year 2019.

NWASCO Public Relations and Communications Manager Patricia Litiya told the the Zambian Business Times – ZBT in an exclusive interview that a total number of 452,279 households are connected to piped water across the country as of end of 2019 and this is from 11 water and sanitation companies.

Water utility companies have been challenged to be more agile and provide water piped solutions to meet the need of over an estimated 5 million households in Zambia. The lack of innovation and aggressiveness in water utilities has led to the proliferation of borehole drilling companies which charges over K15,000 for one borehole.

It has been argued that if Zambian households can afford to hire these borehole drilling companies at such price points (over K15,000 per borehole), the same amounts could have been utilized by the water utilities to pay for infrastructure and equipment on a self financing model to provide piped water, as the case with electricity provision.

And on the applications made by the water and sanitation companies to hike water tariffs, Litiya stated that NWASCO is still reviewing the proposal and no decision has been reached yet.

The council has indicated that it is cautious of the current environment as a result of the COVID pandemic which demands a lot more water usage, hence the public will be informed once the decision on the proposed increase in tariffs is effected.

Water and Sanitation companies are mandated to propose for an increase in water tariffs annually and the council has indicated that it’s still reviewing this year’s applications considering the current situation of the Covid -19 outbreak.

She said it should be noted that consideration for tariff increases are primarily the operation and maintenance costs and that in some utility companies that are able to meet their operation and maintenance costs, investment costs are considered but to a limited extent.

Litiya added that there are various infrastructure projects being undertaken across the country by government with support from Financiers and cooperating partner, and that NWASCO is available as the regulator to support investments by water and sanitation companies who undertake their projects under the umbrella of the Ministry of Water Development, Sanitation and Environmental protection.

“NWASCO therefore remains committed to ensure that Water and Sanitation companies continue to offer safe and affordable water to consumers through the formulation of regulation. This is done through the development of guidelines in line with changing trends in service delivery of water supply and sanitation. NWASCO has since developed over fifteen guidelines all aimed at enhancing regulation,” She said.

July 24, 2020

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The National Water Supply and Sanitation Council

Markets

ActionAid calls for cancellation of unfavorable tax treaties

ActionAid Zambia has called on the Zambian government to consider cancelling or overhaul of unbalanced Double Tax Agreements – DTA or tax treaties with other countries saying Tax Treaties have recently not only been found to be unbalanced but also a source of tax evasion by most multinational companies, denying the host countries the much-needed revenue.

Zambia currently has DTA’s with Germany, Ireland, Norway, Sweden among other countries with no annual reviews or cost benefit analyses done and made public to check whether the country benefits or is on a net basis losing out. The DTA’s have been abused as a conduit for transfer pricing and “management fees” profit repatriation.

The Zambian Government recently cancelled its Double Tax Agreement with Mauritius and ActionAid has welcomed the saying it has for a long time been campaigning for cancellation and re-negotiation of problematic DTAs Zambia has with different countries and has been calling for revision and/or cancellation of regressive DTAs like the now cancelled Zambia and Mauritius DTA.

ActionAid Country Director Nalucha Ziba has told the Zambian Business Times – ZBT in an exclusive interview that the DTA between Zambia and Mauritius provided for 0 Percent Withholding Tax (WHT) on technical fees paid for technical services adding that with this provision, a Mauritius based Multinational Company, would take advantage of such provisions and not pay any WHT on technical services which is currently capped at 15 percent.

“For example, if this company engaged a sister company from Mauritius to provide technical services at a cost of USD100 million. This company when making this payment (USD100 million) to a sister company will not deduct any WHT. This implies that the entire USD100 million is untaxed. On the Contrarily, if the DTA provided for 15 Percent WHT on technical fees then USD 15 million would be deducted as Withholding Tax and remitted to Zambia Revenue Authority (ZRA),” She said.

Nalucha added that there is need for an impact assessment/cost benefit analysis to be done before signing is done and that the Zambian government should not follow the OECD model treaty but develop its own model.

She said government should also negotiate for favorable and/or fair DTA’s Withholding Tax rates (10%-15%) which will not only promote foreign direct investment but also ensure that government collects adequate tax revenue.

ActionAid has further suggested that all treaties should be re-negotiated transparently, and draft versions made available to the public prior to sign offs to ensure that the country benefits and remove opportunity for corrupt practices.

Nalucha has further disclosed that Zambia has signed DTAs with different countries such as Germany, Ireland, Norway, Sweden, Mauritius (now cancelled) to mention but a few and that a tax treaty will spell out how companies investing in a country that Zambia has signed a DTA with their country of origin should be taxed.

July 24, 2020

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ActionAid Zambia has called on the Zambian

Northern tourism circuit development receiving lip service

The development of the Northern Tourism Circuit has continued to receive lip service with more projects expected to strengthen the infrastructure and world class hotel service offering being either delayed or simply shelved.

For instance, the date of commencement of the construction of the Samfya hotel and resort expected to be financed by the workers compensation Fund Control Board – WCFCB is not yet set. This resort is expected to be a landmark and anchor development that would then support the development of side industries and smaller boutique hotels.

The Zambian Business Times – ZBT had received concerns that despite the hype and talk of developing the Northern Tourism Circuit, the construction of the Mosi-oa-tunya Livingstone resort based in the already more developed Southern Circuit has commenced while the Samfya beach resort is still on paper despite it having been on the cards for years.

When a check was done by ZBT, Workers’ Compensation Fund Control Board (WCFCB) Head of Communications and Customer Service Maybin Nkholomba confirmed in an exclusive interview that they are planning to build a hotel, shopping mall and international convention center but a market survey must first be done and concluded.

“At the moment, we have engaged a market consultant to do a market survey on what we are going to construct on the shores of Lake Bangweulu. We have tentatively planned to put up a hotel, a shopping mall and an International Convention Center”, he told ZBT.

In addition, he said that WCFCB is very impressed with the pace at which the project is moving and that the land was only given to them about two to three months ago.

“That project in fact is moving very fast, the land was given by the council 2/3 months ago, we first got interested to invest in Samfya after we attended the Luapula Expo. But we were looking for suitable parcel of land until we were given land some 2/3 months ago by Samfya township council and we have moved. We are receiving a lot of support from the provincial administration in Luapula and there is a committee in place that is expediting the development in Samfya”, he said.

Nkholomba further stated that the total cost for the whole project has not yet been ascertained because there is a consultant who is still doing a market survey. The estimation of the investment cost and development of the project will only be done after the market survey has been concluded.

“We cannot establish the cost now until the market survey has been done and the market survey will tell us exactly the kind of development to take there in terms of infrastructure, then we can be able to understand the actual cost. The market survey is done to understand the customer needs and what the region requires”, he said. He however stated that WCFCB is looking at delivering the project by next year.

Various stakeholders have indicated that the Northern Tourism Circuit development receives more lip service and nothing tangible is actually done on the ground. If you look at the expansion of the Mbala Airport, which was meant to house both military and civilian aircrafts, it has also been shelved, blocking the air transport option for high end tourist who are key customers for five star facilities.

In order to grow, diversify and jump start Zambia’s tourism offering, the development of the Northern Tourism Circuit has been on the cards for years. The current tourism master plan includes development of the Samfya waterfront and peninsula as well as the Kasaba bay and Tanganyika lake shore.

July 23, 2020

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The development of the Northern Tourism Circuit

Ex-Tazara workers accuse ZSIC of sitting on their funds

The confirmation that the treasury had released funds for clearing outstanding retirement, pension and retrenchment benefits for ex-Tazara, Zamtel and other government workers seems to have a different picture on the ground as some workers are now doubting if really these funds have been released.

An ex-Tazara worker John Chiufya, told the Zambian Business Times – ZBT that the ones handling the pension must provide updates and information as to why the payments of their packages is delaying so that they know what is happening.

I retired in 2013 from formal employment. Till date, I have not been given my money from my pension contributions from ZSIC. I just want to appeal to the government of the day to intervene in this matter because it seems like there is no one caring.

Furthermore, Chilufya said that the institutions that are handling the money should address the workers, keep them updated and let them know why its taking long to pay out the money when the treasury has confirmed disbursing the funds.

As you are aware, money has been released by government to pay off all retired employees. So, we should be addressed by NAPSA and ZSIC who are the custodians of the released funds. They should come and give us a statement, to show how much is due to us, so that if there is anything, we will know where to go. We need a well tabulated statement from the time one started work to when one retired.

Even though the K14 million has already been released, they do not know when they will be given their money.

Right now we are blank, we are in darkness. Apart from rumors, there is nothing I can tell you, there are just rumors as at now. And how we cope with life is that we depend on our creator, he gives us wisdom when he tells you to do something then you start doing it because if just fold your arms and do nothing, then you put your children to shame.

Chilufya says NAPSA and TAZARA have given the something but has not got anything form ZSIC and stresses that he has been contributing to ZSIC for a very long time.

When I retired, I was given something like leave days from the company and what we call golden handshakes and something from NAPSA, we were given. From TAZARA and from NAPSA, we were given something but from ZISC for pension, we never got anything.

He says he has been contributing to ZSIC pension from 1978 till 2013 and has not been given anything todate. “We were supposed to given something from ZSIC a long time ago, In my case I started contributing to ZSIC in September 1978 till 2013 June”, he said.

Even though they received something from NAPSA, he says there is still huge problem between them and NAPSA.

“We got from NAPSA but there is still a very big problem between us NAPSA especially those of us who retired in 2012 to 2014 we have a problem with NAPSA because what they promised us never happened. For example when we were given those small amounts from NAPSA, we were promised by the branch manager here in Mpika who said this money we are giving you is just a form of advance to cope with life as we are preparing your terminal benefits”.

He said that “when TAZARA remits the remaining amount, which its supposed to remit to NAPSA, then they will compute the monthly pension benefits. And when they start releasing the monthly pension, they will now start knocking out what they had given us or what they gave us last time. And when that was over, that’s when we were going to start enjoying the full monthly pension”, he said.

There is an urgent need for the government to clear the air on outstanding pension benefits for its former employees to restore a functional and self sustaining state pension fund. Responses from from ZSIC and Napsa were still being awaited by ZBT by press time.

July 23, 2020