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Companies

The Railway Workers Union of Zambia has disclosed that only 13% of Zambia Railways (formerly Railway Systems of Zambia) ex-workers who took litigation against government have so far been paid leaving out about 87% who took the dialogue route still waiting for payment of their terminal benefits.

Speaking in an exclusive interview with Zambian Business Times – ZBT, Railway Workers Union of Zambia president Nathan Zulu stated that only 112 (13%) out of the total number of 866 ex-employees have been paid their outstanding retirements benefits and these are the ones that took government to court.

In total number of ex-employees are 866, 112 decided to go the litigation route. 754 employees thought dialogue with government would result in payment. The ones who took government to court are the ones who have been taken care of by the allocation of K3.6 million. And I’m told that all them or almost all them have been paid as these funds were paid to their lawyers.

Zulu stressed that this is where the huge problem is, because the ones who took government to court has received payment before those who chose the dialogue route with government. It basically means that taking the court route is more viable than dialogue.

Not all former Zambia Railways (formerly Railway Systems of Zambia) workers have benefitted from the K30 million released by government to pay off retiree or retrenched workers. The money that has so far been allocated to the former Zambia Railways workers is only K3.6 million, but this is not enough to cater for all the outstanding retirees as the total amount that can cater for all the ex-workers is US$5.1 million

“This is where now the 754 ex-employees who are remaining to be paid now have a genuine complaint. It’s like now, for you to get money from the government, you have to take them to court. This is interpretation that the loyal 754 people are looking at. Because here are the loyal 754 who thought that through dialogue, they would get their money but don’t get it. 112 take the litigation way and take government to court. Which to us is not the first option, it’s like you are rebelling. But you are rewarded for that”, he said.

Furthermore he said that the union is facing a big problem because of other beneficiaries, who are orphans, widows and other vulnerable persons. However, Zulu disclosed that government is undertaking a verification process and fingers are crossed, hoping that this will lead to the loyal ex-employees will be given their share as soon as possible.

Right now what is being done, there are auditors who are doing verification of the remaining 754 ex-employees who have not been paid by the allocation from the ministry of finance. So we hope now with the verification which is being done which is almost complete, will materialise into a payment. That’s the hope of everyone now.

“We have seen that government has already shown that zeal to pay off their ex-employees. They have already shown that gesture by giving those who took them to court, and now with the verification that is being done we will hope to see now the other 754 equally getting their money”, he said.

The genesis of the whole issue started from the cancelling of the concession between the republic of Zambia in 2012 and the then Rail Systems of Zambia which was operated by a South African company. The company was supposed to have cleared its workers but this matter is still under litigation. Those employees who were employed by Railway Systems  of Zambia are now to be paid their money after the cancellation by government in principle.

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The Railway Workers Union of Zambia has

Mining

Mopani Copper Mines Plc – MCM has been notified by the Mines Development Department of the Ministry of Mines that it has rejected its proposal to suspend its operations pursuant to Section 37(2) of the Mines and Minerals Development Act (2015) (MMDA) and place them on Care and Maintenance.

At the beginning of May 2020, Mopani Copper Mines Plc notified the government of its intention to place the mining operations on care and maintenance after 90 days.But the Mines Development Departs has rejected the proposal, making it the second time that MCM has been turned down from placing its operations under care and maintenance.

On its first attempt to place the mines under care and maintenance, the company decided to unilaterally place the mines at Nkana in Kitwe and Mufulira all on the Copperbelt, but government disapproved its decision stating that there are rules and procedures guided by licensing conditions and laws of Zambia which the company had not followed.

This eventually led to MCM parent company Glencore then rescinding its decision to unilaterally and overnight place the mine on care and maintenance and proceeded to give the 90 days notice as per laid down regulation. There was a call for dialogue for the two parties but it seems very little has been achieved and the 90 days has now expired.

Mopani Public Relations Manager Nebert Mulenga told the Zambian Business Times – ZBT in a statement that the mine remains of the belief that the only way to protect the company’s value and preserve the option to deliver its growth projects when conditions further improve is to transition the operations to Care and Maintenance.

He said Mopani is currently assessing its options and will initiate an appeal pursuant to the MMDA against the Director of Mines’ decision within the permitted timeframe and it will further explore all options available to it to preserve the long-term value of the Mopani business.

“Mopani will continue mining operations pending the outcome of the appeal processes, pursuant to the Director of Mines’ decision and the MMDA. We will further continue to engage with the relevant government ministries on identifying potential solutions to address Mopani’s current challenges,” He said.

Mining experts have called on Mopani to be transparent on its operating costs and engage the mines department to find a way round to keep the mine operating and forestall job losses. The two mines are the economic lifeblood of two major cities or towns in Zambia, i.e Kitwe which is the second largest city in Zambia by population and Mufilira, which is also a major town on the Copperbelt.

The Association of Mine contractors had earlier in the year issued a press statement accusing Mopani of shifting its head office to South Africa and deliberately giving all major contracts to foreign entities at the expense of local companies. Augustine Mubanga, the Association president stated that the company has been systematically terminating contracts for its members.

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Mopani Copper Mines Plc – MCM has

Markets

Despite the negative impact of covid 19 which has weighed down overall economic performance and compromised the credibility of the 2020 national budget, Non-Tax Revenue category is projected to outperform the budget of K11.3 billion by 7.3% to hit about K12.1 billion.

Finance Minister Dr. Bwalya Ng’andu has estimated that although the overall resource envelope will fall short of target by approximately K17.2 billion of the 2020 budget, non tax revenue category will be 7% above target.

Speaking when he was giving a ministerial statement in Parliament on July 14, 2020, Dr. Ng’andu said some of the key factors leading to a fall in the 2020 budget include the loss of exceptional revenue, covid – 19 related tax relief measures and the overall general reduction in economic activities.

He said on the domestic front, the ministry has continued to review the performance and projected growth of the economy amid the Covid 19 pandemic and that domestic revenues in 2020 are projected to be 17.8% below the budget target.

He added that tax revenues are now projected at K47 billion against a budget target of K54 billion representing a decline of 12.7%, while Non-Tax Revenue category is now projected to outperform the budget target of K11 billion by 7.3 % at K12.1 billion attributing the performance to receipts from dividends and on-lending activities.

The Minister further said government spending in 2020 is expected to increase by an estimated K9.7 billion due to increased government spending on Covid-19 related interventions and increased external debt payments adding that external debt service is expected to increase by K2.2 billion.

“Mr. Speaker, the decline in revenues and the increase in expenditures is expected to create a financing gap of K26.9 billion due to a loss of resources amounting to K17.2 billion and an increase in expenditures amounting to K9.7 billion,” He said.

Dr. Ng’andu said the economic situation continued to be challenging and fiscal situation is extremely constrained hence treasury will strive to mobilize more resources to respond to the various competing developmental needs of the country.

The Zambian Business Times – ZBT has challenged governments implementing agencies and officers to automate non-tax revenue collection methods to ensure that the country derives maximum benefits from both revenue engines.

Automated traffic fines for instance was seen as a key technology to enhance the collection of additional traffic related non tax revenue as the set up of using human traffic officers lead to massive revenue leakages and accountability gaps.

Other non-tax revenue measures such as council levies, land and property rates, parking fees and a host of other alternative revenue lines continue being un-optimized due to mostly lethargy and unbridled personal interests by a few government officers who have continued to frustrate efforts to automate.

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Despite the negative impact of covid 19

Tech

Zambia’s largest mobile network operator by revenue – Airtel has shut down its head office on covid 19 threats.

In a statement made available to Zambian Business Times-ZBT, Airtel  Head of Corporate Communications Yuyo Nachali-Kambikambi has disclosed that Airtel head office has closed because one worker at Airtel has tested positive for COVID 19.

“Airtel Networks Zambia Plc wishes to advise its customers and the general public that its’ Head Office situated on Stand 2375, Corner of Addis Ababa drive and Great East Road, Lusaka has had to be closed due to one member of staff having tested positive for COVID 19”, the statement read.

Meanwhile, Kambikambi has assured the general public that they will continue to deliver services to the people using the digital platform.

“Our staff will continue to be available electronically and customers are urged to visit our other service centres for any urgent assistance and encouraged to use self-help portals as well as do any monetary transactions using the Airtel Money service”, she said.

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Zambia’s largest mobile network operator by revenue

Companies

The Policy Monitoring and Research Centre – PMRC has weighed in and given further details of the use and allocation of the K8 billion COVID 19 bond.

Zambia’s cabinet, the highest decision making organ of the executive arm of government recently approved the establishment of an economic stimulus package that would be financed through the issuance of a K8 billion COVID-19 bond. 

PMRC Executive Director Bernadette Deka-Zulu in a statement availed to the Zambian Business Times – ZBT stated that about K3.2 billion of the COVID-19 Bond will be allocated to the Presidential COVID-19 Economic Recovery Fund.

Payment to third-parties (Micro Finance Institutions) will get about K1.3 billion, Drugs Debts and Medical Equipment Procurement will get an allocation of K1 billion, Grain Purchases have been allocated K1.7 billion while other applications K800 million.

Deka-Zulu further stated that raising the K8 billion bond will be done in multiple tranches. The Bank of Zambia is the issuing authority of the Bond on behalf of the Government and this Bond has the same features as regular bonds that the Bank of Zambia issues.

The initial indication was that the entire K8 billion covid 19 bond proceeds were to be used to dismantle domestic arrears and inject liquidity in the market that has been weighed down by partial and in some sectors, full restrictions of business activity. 

The clearing of drugs and medical equipment debts is one area that has seen the increase in domestic arrears but this field will most likely result in funds being paid of out the Zambian economy. Most drugs, medicines and medical supplies are imported or simply assembled in the country with low local content.

As for grain purchases, this is dominated by mostly local small scale and emerging commercial farmers. This is perhaps one of the key areas that should see more liquidity flowing into the domestic market and local economy.

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The Policy Monitoring and Research Centre -

Lifestyle

Zambia Association of Manufacturers – ZAM has appointed a new Chief Executive Officer (CEO) Florence Muleya to take over over from Chipego Zulu who is currently the Associations Vice President (South).

Muleya previously worked as a Researcher and Manager at the Zambia Institute for Policy Analysis and Research (ZIPAR), an institution committed to working towards sound economic policies.

Her roles at ZIPAR included providing evidence-based solutions for public policy influence and implementation as well as managing research projects.

Prior to this role, she worked for the Zambia Revenue Authority – ZRA in both the Customs Services and the Domestic Taxes Division in various portfolios and worked with private sector, advising on tax matters.

Muleya’s  educational background includes a Master of Science degree in Trade Policy and Trade Law from Lund University, Sweden (2010) in which she graduated with distinction and a Bachelor of Arts Degree in Economics from the University of Zambia (2007).

According to a statement made available to the Zambian Business Times – ZBT by ZAM Vice President – South and Spokesperson Chipego Zuu on July 13, 2020, Muleya is looking forward to spearheading the team at ZAM.

She envisages that under her leadership, ZAM will generate best practice learning and facilitate problem solving in the manufacturing sector. As an optimist, she believes that within the context of the COVID -19 pandemic lies a seed of an equal or greater opportunity to learn valuable lessons that can ultimately be used to better manufacturing and fully entrench the Proudly Zambian Campaign.

“Zambia Association of Manufacturers welcomes Muleya to the “Voice of Industry” and look forward to supporting her in enhancing the performance and contribution of the manufacturing sector to national development under her leadership, Chipego said. The Zambian Business Times – ZBT congratulates Muleya for the appointment and looks forward to her leading the association of manufacturers to greater heights.

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Zambia Association of Manufacturers - ZAM has

Tech

Airtel Zambia is set to expand its mobile money offering as the company is soon expected to launch virtual cards which will enable Airtel mobile money account holders enjoy privileges comparable to traditional bank accounts.

Airtel Zambia has hinted that they will soon launch virtual cards in the Zambian market soon without disclosing the actual date for the launch. Airtel told the Zambian Business Times – ZBT that they are keeping their cards close to their chest as they do not  want to let the cat out of the bag until the launch date.

A check by ZBT analysts on what was launched in other African markets regarding virtual cards shows that a similar partnership with MasterCard enabled mobile money account holders to pay for online services, apps, hotel, digital content and any other payment services that bank debit cards are able to do.

Once virtual cards are launched, it is projected that mobile money account holders will be enabled to shop online and pay for services like Netflix etc so long as one has a their phone and have an active mobile money account.

Mobile money in Zambia continues to grow with 2019 annual growth rate pegged at over 126% by the central bank – BOZ. Even as traditional banks continue to contract, merge and close down more brick and mortar branches, mobile money which operates through independent agents continue to aggressively expand year on year.

The introduction of virtual cards on mobile money accounts, if it delivers international and digital payment capabilities, will take away the debatable competitive advantage and the need for traditional bank accounts for the vast majority of consumers and medium size businesses.

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Airtel Zambia is set to expand its

Agribusiness

Zambia needs to urgently agree a more equitable and tangible bilateral trade deal with South Africa – SA and Saudi Arabia to arrest a skewed trade flow as the country embarks on more fertilizer imports to further push up its Agro production volumes for 2020/2021 season.

According to data obtained by the Zambian Business Times – ZBT from the Ministry of Agriculture, Nitrogen Chemicals of Zambia – NCZ is manufacturing and contributing a very small portion to the total national fertilizer requirements, resulting in most of the national requirements being satisfied via imports.

On average, for the past six agricultural seasons from 2015 to 2020, Zambia used about 177,000 metric tons of basal dressing fertilizer and 163,000 metric tons of top dressing fertilizer per year. In 2019/20 agricultural season, Zambia used about 200,000 metric tons of basal dressing fertilizer and about 190,000 metric tons of top dressing fertilizer. It means that majority of these supplies are being imported and partly explains why the local currency is perpetually depreciating.

Zambia currently imports the bulk of its basal dressing fertilizer from South Africa and while most imports of top dressing fertilizers come from South Africa, Saudi Arabia and Ukraine. The Ministry of Finance who are the custodians of the National treasury should be the first to set the example when it comes to import substitution and eventual cutting down of forex outflows which would aid the stabilization of the local currency – Kwacha.

Successive ministers of trade and their senior ministry permanent secretaries have failed to successfully engage South Africa to sign bilateral deals to enable Zambian products or even raw materials to be exported to that country. This is one way that net forex outflows can be reduced. The establishment of the Zambia – South Africa Business Council has yielded limited to no tangible results so far as trade flows continue to be one way.

And local Agro experts have told ZBT that NCZ has the potential to produce compound D fertilizer on a large scale but lack financial support to continuously modernize its equipment and fund its working capital. If NCZ is given these big fertilizer supply contracts and funding commitments by the treasury, they can use the contracts to obtain working capital and fund their urgent capital expenditure to fully revamp local fertilizer manufacturing.

Zambia only has one manufacturer of Compound D fertiliser – the Nitrogen Chemicals of Zambia (NCZ). The other three private companies that include Export Trading Group (ETG), the Zambian Fertilisers and Fertiliser Seed Grain (FSG) only specialise in blended fertilisers which incorporate various vital nutrients and also produce customised fertilizers.

Zambia at one time was self sufficient in production of both basal and top dressing bulk fertilizers cutting down the need for imports for products that could be manufactured locally. The country can use its available raw materials, central location and its more reliable and safer transit routes to manufacture and export fertilizer to vast regional markets such as Malawi, Angola, Democratic Republic of Congo and other surrounding countries.

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Zambia needs to urgently agree a more

Lifestyle, Mining

Zambia’s largest copper miner, First Quantum Minerals – FQM’s Kansanshi Mine of Solwezi has appointed Anthony Mukutuma as General Manager.

Mukutuma has become the first Zambian to take over from David De Vries and hold such a post at Kansanshi which is the largest copper mine in Africa by production.

Mukutuma has 20 years of experience in operations and management of mineral processing and hydrometallurgical plants, covering business development, research and development, design and design optimization, commissioning, process optimization (including bottlenecking), operations management, business performance improvement and talent development.

Before his appointment, Mukutuma run First Quantum Minerals Guelb Moghrein copper-gold mine in Mauritania, and most recently was General Manager for the restart of operations at its Ravensthorpe Nickel Operation in Australia.

According to a statement emailed to the Zambian Business Times – ZBT on July 8, 2020, Mutukuma’s previous designations include, the position of metallurgist in minerals processing at the Konkola Division of the Zambia Consolidated Copper Mines – ZCCM.

He has also worked in hydrometallurgy at Anglo American’s research laboratories in South Africa, from senior metallurgist to plant manager, then technical manager at First Quantum Minerals’ Bwana Mkubwa Mine processing plant in Ndola. He also worked as plant manager at the early stages of the Kevitsa Mine project in Finland.

Mukutuma holds a BEng in chemical engineering with minerals engineering from the University of Birmingham and an MBA in accounting and finance from the University of Liverpool.

FQM Country Manager General Kingsley Chinkuli is proud to announce the appointment of Mukutuma as the new general manager for Kansanshi Mine saying it’s a significant milestone for the company and it reinforces its commitment to providing equal opportunities for all, regardless of gender, race or creed.

“Management wishes him all the best in his new role as GM. We are confident he will be equal to the task and we are eager to tap into the vast knowledge he has acquired in the last 20 years in the industry. This is one of numerous appointments that have seen senior Zambian staff taking on top management positions not just at Kansanshi and its sister Sentinel Mine in Kalumbila but also other mines under the FQM group world”, He said

He added that the company would continue to create an enabling environment where employees have an opportunity to progressively rise through the ranks.

Kansanshi has around 3,300 direct staff and about 5,000 contractors, most of whom are primarily Zambians and uses state of the art technology to extract copper from three different ore types with world-class efficiency.

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Zambia’s largest copper miner, First Quantum Minerals

Mining

CNMC Luanshya Copper Mines has confirmed that only part of the Roan cricket field may be affected by the extended mining activities which has threatened the existence of the Luanshya sports complex.

Speaking in an exclusive interview with Zambian Business Times -ZBT, CNMC Luanshya copper mines Public Relations Manager Sydney Chileya Says the oxide only reaches a small portion of the cricket field.

“The sports complex has got about nine facilities in that area. We got rugby, cricket , squash and so on. Of all those, the copper oxide extends only a small portion into the cricket field. The rest of the facilities are not reached by the copper oxide”, he said.

Chileya also disclosed that there has been some illegal mining on the roan basin by youths and that CNMC was forced to dig a trench when the illegal mining intensified and people started to bring heavy equipment on the site.

There area in question is known as Roan basin which is part of the Muliashi oxide mine area which is bordered with our Luanshya sports complex. There has been some illegal mining activities taking place in that area.

But those activities where initially done by youths with shovels and picks, but then the activities there increased where people started coming with excavators, truck loaders and so on. So we decided to dig a trench just to fence off that area.

Furthermore, Chileya disclosed that CNMC have also engaged the Zambia Environmental Managements Agency – ZEMA to ensure that in the process of developing the area follows pains down procedures and that all illegal mining activities of the copper oxide is stopped.

We have also engaged ZEMA and the mine safety department to ensure that we begin the process of basically developing the area because we know that the illegal mining activities taking place in that area are as a result of the copper resource that is there. So, once we mine that resource the illegal activities will stop.

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CNMC Luanshya Copper Mines has confirmed that