Connect with:
Sunday / April 27.
logo
mobile-logo
HomeStandard Blog Whole Post (Page 169)
Lifestyle

The National Arts Council – NAC is expected to soon outlined specific guidelines on how artists that include musicians and various forms of art can access the K30 million fund that was confirmed by President Edgar Lungu during his national address.

This follows the confirmation that Government has finally approved a K30 million youth empowerment fund targeting Zambian artists and youths countywide after a proposal from various stakeholders to consider granting them a stimulus package which will lessen the economic impact that Covid-19 health restrictions has put on their work.

President Edgar Lungu announced during his national address on June 25, 2020, that government has approved a K30 million youth empowerment scheme which will be launched soon and that the National Arts Council and the Ministry of Arts and Tourism will implement the programme.

And National Arts Council – NAC Chairperson Patrick Samwimbila has told the Zambian Business Times – ZBT in an exclusive interview that the K30 million which comes in form of a loan is from the share of the K10 billion Medium-Term Refinancing facility that was introduced by government two months ago.

He said the Council and other stakeholders saw how difficult it is for artists to go to the the traditional banks and apply for the funds hence appealed for a specific share from the K10 billion facility which will cover for artists as they have not been left out from the negative economic impact of Covid-19 restrictions.

Samwimbila further disclosed that specific guidelines on how the funds will be disbursed to artists will be communicated soon, as consultations on the date of launching the scheme are still ongoing with the Ministry of Art and Tourism and various stakeholders.

“This proposal was generated by us because we know that artists have also lost sourced of revenue during this period just like many other sectors, therefore if other sectors are being cushioned, then the art businesses deserves the same,” He added.

Samwimbila has since expressed gratitude to government saying the scheme is a milestone to the industry, hence artists should take keen interest and strive to access this money once guidelines have been set out.

He added that the amount which has been given is within the proposal that was made hence has assured government that it will be put to good use.

Health restrictions imposed due to the Covid-19 pandemic has affected many areas of the economy, and players in entertainment industry are one of the most adversely hit. Zambia Association of Musicians confirmed to ZBT that efforts by local artists to generate revenue online had limited success.

Moreover, huge social gatherings, bars and night clubs which provide venues for on stage performance for especially musicians remain restricted making their key revenue generating activities to be very limited or almost cut off completely.

0 Comments
0 likes

The National Arts Council - NAC is

Markets

Talk about a silver lining to every challenge, Zambia has yet again posted a trade surplus valued at K3.8 billion (about US$210million) in May 2020, up from K2.2 billion recorded in April 2020, indicating a 72% increase month on month.

This trade surplus means that Zambia exported more than it imported, a precursor to boosting forex inflows and a stable Kwacha. A deeper review of the trade statistics shows that the covid 19 health restrictions has directly put a lid on some of the unnecessary imports that leads to forex outflows, enabling Zambia to export more than it imported.

The Zambia Statistics Agency – Zamstats has revealed that exports which mainly comprise of domestically produced goods increased by about 18% from K8.9 billion in April 2020 to K10.5 billion in May 2020.

ZamStats Statistician General Mulenga Musepa said during a media briefing monitored by the Zambian Business Times – ZBT on June 25, 2020, that the increase in exports was mainly on account of a 12% and 96% increase in export earnings from intermediate goods and Raw materials respectively.

He added that imports decreased by 0.3% from K6.7 billion in April 2020 to K6.6 billion in May 2020 and that the decrease was mainly as a result of a 13% and 5% decrease in import of Capital goods and Consumer goods respectively.

Musepa said the total trade volumes from January 2020 to May 2020 increased by 5.5% to K79.8 billion from K75.7 billion in the same period of 2019.

Meanwhile, refined Copper export earnings during May 2020 rose by 17% to K7.8 billion, up from K6.7 billion in April 2020. On a month on month basis, refined Copper export volumes during May 2020 increased by about 12% to 82,288 metric tonnes.

There was also some favorable pricing as the London Metal Exchange – LME copper prices increased by 3.7 to $5,233.8 per metric tonne in May 2020 from $5,048 per metric tonne in April 2020.

Musepa further added that Non Traditional Exports – NTEs (non copper related exports) increased by 20% to K2.3 billion in May 2020, up from K1.9 billion in April 2020. “During May 2020, Agricultural NTEs increased by about 80% while Non-Agricultural NTEs increased by about 9%,” He said.

The Zambian government and in particular the Ministry of Trade has struggled to strike tangible bilateral trade deals with both South Africa and Saudi Arabia/Gulf region. These two countries account for the major cause of trade deficits for the copper rich country.

South Africa is the major consumer goods exporter to Zambia while Saudi Arabia and the gulf region is responsible for the vast amount of crude oil imports. If the minister of Commerce, Trade and Industry Christopher Yaluma and his team could strike tangible trade deals with just these two countries to reduce the trade deficit gap, some of the problems associated with the perpetual Kwacha depreciation could be ameliorated.

0 Comments
0 likes

Talk about a silver lining to every

Markets

Zambia has for the first time in 2020 recorded a reduction in annual inflation of 0.7% after its persistent increase in the first quarter of the year.

The year-on-year inflation as measured by the all items Consumer Price Index for the month of June 2020 decreased to 15.9%, down from 16.6% recorded in May 2020 meaning that on average prices of goods and services increased by 15.9 percentage between June 2019 and June 2020.

Zambia Statistics Agency Interim Statistician General Mulenga Musepa has disclosed that the decrease in the annual inflation was attributed to price decreases in food items.

He said the year to date inflation was recorded at 9.3% in June 2020, higher than that of the corresponding period in 2019 of 5.3% meaning that the average prices of goods and services increased at a faster rate in 2020 compared to the same period in 2019.

Musepa said the year-on-year food inflation rate for June 2020 was recorded at 16.3% compared to 17.5% in May 2020 indicating a decrease of 1.2% points.

He added that this development was mainly attributed to reductions in prices of food items such as cereals (Breakfast mealie meal, Roller meal, Maize grain) and Fish like Dried Bream, Dried Kapenta(Chisense), Dried Kapenta(Mpulungu), Bukabuka and Fresh Kapenta).

Further, the year-on-year non-food inflation rate for June 2020 was recorded at 15.5% same as recorded in May 2020 meaning that on average prices of non-food items increased by 15.5% between June 2019 and June 2020.

Meanwhile, a disaggregation of the annual inflation rate by province shows that the annual inflation rate for June 2020 increased for Luapula, North-Western and Western provinces. Annual inflation decreased for Central, Copperbelt, Eastern, Lusaka, Northern and Southern provinces.

“Provincial changes in annual inflation rate show that between June 2019 and June 2020, Northen province had the highest rate of 20.2%, followed by Central at 17.8%. Eastern province recorded the lowest annual rate of inflation at 11.8%,” Musepa added.

More analysis to follow

0 Comments
0 likes

Zambia has for the first time in

Tech

Lunsemfwa Hydro Power company – LHPC, an Independent Power Producer – IPP has disclosed that the non –availability of its hydro power plant and the delay in resuming full operations and power production is because the company is owed over US$50 million by ZESCO.

Energy Minister Matthew Nkuwa had earlier announced at a media briefing last week that during the period 1st May to 15th June 2020, the average generation of electricity in the country was 1,780MW which comprised 1,379MW from ZESCO and 401MW from independent Power Producers – IPPs.

He said the reduction in the IPPs contribution was due to non-availability of Heavy Fuel Oil from Ndola Energy Limited and non – availability of Lunsemfwa Hydro Power Plant, he however did not give details on why these IPP were not available to contribute full production needed to end load shedding especially for domestic consumers.

But a check by the Zambian Business Times – ZBT indicates that Lunsemfwa hydro power plant has the capacity of producing up to 56MW. However, its currently producing only 10MW due to what they have confirmed is the debt owed by ZESCO and lack of water in their reservoir.

Lunsemfwa hydro Chief Technical Officer – CTO Justine Loongo disclosed to ZBT in an exclusive interview on June 23, 2020, that ZESCO has since 2017 owned the company over $50 million and that even after restructuring the payment plan, ZESCO has only paid a minimal amount of about 20% during the first 3 months of the year.

He added that the company fully resumed its full operations in April but that its only producing the requested 10MW by ZESCO from the over 40MW that its capable of producing.

“ZESCO owes us a lot of money, more than US$50 million which they haven’t been paying since 2017 and it’s only this year that they have made an attempt to pay but it’s very slow, that’s why we have held up on our power production because effectively, our plant can deliver 40MW up to the next four months,” He said.

“But again even after ZESCO requested to give them 10MW, the company also wants to renegotiate the tariff for the 10MW which is further challenging their financial operations and you may find that other IPPs have similar issues with ZESCO,” He added.

Loongo said the company has since failed to execute many of their projects due to hindrances from ZESCO, hence has called on the company to speed up the process of payment and has also called on the Water Resources Management Authority – WARMA to carefully manage its water permits as farmers are harvesting water from their reservoirs at Lunsemfwa catchment hence making it impossible to get full water flows.

Zesco has continued to implement power rationing and blamed this on low water levels at its main power plant at Kariba dam, but the revelation by Lunsenfwa hydro that they can produce and contribute about 52MW and are currently only being requested to produce 10MW casts doubts on the reasons behind the current loan shedding mostly for domestic consumers.

LHPC currently owns two hydropower plants, that is Mulungushi Power Station and Lunsemfwa Power Station, with a combined generation capacity of 56 MW. Lunsemfwa power station comprises a reservoir, a canal and penstocks to a surface powerhouse.

The power station was constructed in 1945 with two 6 MW units. The power plant was operated as a run-of-river scheme until 1958 when the Mita Hills dam was built. A third 6 MW unit was installed in 1961. With the fourth unit of 6 MW installed in 2012.

0 Comments
0 likes

Lunsemfwa Hydro Power company - LHPC, an

Markets

As traditional banks continue to downsize, as they struggle to grow their revenues and as close more of their brick and mortar branches, a close substitute and now considered as a viable future alternative in mobile money has continued to march ahead, is putting out more agents and post growth numbers that are jaw dropping.

And this was confirmed in Zambia by Bank of Zambia – BoZ Governor Dr. Denny Kalyalya when he disclosed that digital financial services in the country have recorded significant growth with mobile money payments posting an annual average growth of 126% in value from K2.07 billion processed in 2015 to K49.45 billion processed in 2019.

Dr. Kalyalya further said that the number of active mobile money wallets has increased over time as at end of 2019, about 14 million mobile money wallets were registered and about 4.9 million were actively transacting, representing 34% of the total registered mobile money wallets.

Speaking when he officiated at the launch of the Zambia Digital Economy Diagnostic Report in Lusaka on June 24, 2020, Dr. Kalyalya said the digital financial services landscape in Zambia has changed quite dramatically as the usage of digital channels for the delivery of payment and financial services has grown considerably.

He said the majority of commercial banks have developed and deployed mobile applications that their customers use to access financial services adding that e-money issuers are capitalizing on smart and ordinary feature mobile phones to offer financial services.

A further check my the Zambian Business Times – ZBT with sources at both Banks and Mobile money players has confirmed that though banks are offering some way to inter-operate and facilitate bank to e-wallet and Vice-versa, the situation on the ground is that there are more funds flowing from banks to mobile wallets than the other way round.

He added that the performance of other electronic payment streams such as Electronic Funds Transfer – EFT equally recorded remarkable growth, posting annual average growth of 35% in value from K21.83 billion processed in 2015 to K67.81 billion processed in 2019.

“From these statistics, it can clearly be demonstrated that there is great potential in Zambia to have more people financially included through digital channels and ultimately in the digital economy, therefore I urge all stakeholders to focus on harnessing the potential of financial inclusion through scaling up the uptake of ICT as it offers immense opportunities for providing essential financial services to our people,” He said.

At the same event World Bank Country Manager Sahr Kpundeh added that the Zambia Digital Economy Diagnostic report was prepared before Covid- 19 outbreak but it is even more relevant today primarily because given the current situation with the Covid-19 pandemic, digitalization can and had offered an opportunity for contactless business continuity, rapid and systematic data collection and efficiency, informed and transparent resources allocation.

Mobile money players have continued to expand their service offering with most companies with a high number of blue collar workers opting to use mobile money to process their payroll payments. Person to person payments are today seeing more growth and actively canibalizing the payments space once considered a preserve of banks.

1 Comment
0 likes

As traditional banks continue to downsize, as

Sport

The Zambia Rugby Union is expecting to receive €5,000 (about K100,000) from its regional affiliate body, Rugby Africa. Rugby Africa is one of the six regional associations of World Rugby and assembles the African nations that practice 15s and 7s.

In an exclusive email note to the Zambian Business Times – ZBT, Zambia Rugby Union Chief Executive Officer – CEO Henry Shikopa stated that Rugby Africa is going to send Euro 5,000 euros (about K101,946) in June 2020.

Sport has been one of the most hit social and economic activities by the corona virus pandemic resulting in complete suspension of all sports activities in Zambia. Concerns have been that administrators and players have lost their key source of income.

“Rugby Africa has offered it affiliates tiered amounts of COVID relief funds. These are set according to rank and status of each affiliate. Zambia falls in the top tier and has been awarded Euro €5,000. These funds are expected to hit the accounts of the Zambian Rugby Union this month of June 2020. Furthermore, world Rugby was waived 2020 affiliation fees for all is members”, he told ZBT.

Furthermore, Shikopa added that the union has not yet lost any money to date because they have not reached a point in the season where they generate money from fixtures. But the losses from league fixtures for the individual clubs is definitely there.

“The union has not lost any notable funds to date. This is because the union does not make any money from Rugby league fixtures. We have not yet reached the point in the season where the union does generate money from tournaments and international fixtures which ordinarily are in June to September. Although the financial and revenue vacuum is coming and we can feel it”, he said.

The union has also joined the digital realm by using an online platform that registers all players and rugby activities on to the international data base. The centralized database will allow for a much wider oversight of all ruby activities and also the local union, Rugby Africa and World Rugby.

“This exercise is ongoing, and aims to register all players male, female, youth to toddlers that are affiliated to any rugby institution in Zambia whether a participant in the ZRU league or any other”, he said.

Shikopa says the union is yet to determine how efficient ScrumIT is but is impressed with what he is seeing.

“The ScrumIT exercise began in April 2020 in the midst of COVID 19 and the halt of rugby activities. It is still in implementation stage. Its full value can only be assessed at after full implementation. We will only be in a position to appreciate the full value of ScrumIT when full domestic and international rugby activities resume. But suffice to say that even in the early stages we are with ScrumIT, its so far so good”, he said.

0 Comments
0 likes

The Zambia Rugby Union is expecting to

Lifestyle

Most practicing lawyers in Zambia only manage to pass at the Zambia Institute of Advanced Legal Education – ZIALE after re-sitting and taking what is referred to as repeaters examination.

It has been established that only a few law students (mostly under 5%) that enroll at Zambia’s law practice institution qualify and are admitted to the bar through the repeaters examinations which comprises of candidates that attempt to re-sit for the next exams after failing to clear their final exams.

The institution had on June 16th 2020 congratulated 202 students who cleared the 2019 December REPEATERS examinations out of the 731 that sat for the exams indicating a slight increase from the 2018 repeaters examinations where 194 passed out of the 694 that sat for the exams.

Meanwhile, only five out of 355 students who sat for the 2019 final exams passed, representing 1.4 percentage pass rate. The consistent low pass rate at ZIALE has since attracted concerns from various stakeholder and citizens as it has continued to recorded high failure rate.

One of ZIALE’s officers who asked that his name be withheld told the Zambian Business Times – ZBT in an exclusive interview that the institution conducts two sets of graduations in a year with one for repeaters and the other for final sitters.

“The final exams comprise of those that write the exams for the first time and are examined on 10 different courses and clear all at once while the repeaters are those that had written the final exams and had not cleared all the 10 courses then re-sit for the remaining subjects. Under these exams some attempt for the second time, third and even go up to seventh attempt and all these are categorized under the repeaters exams,” said the source.

When asked if certificates indicated whether one graduated under the repeaters or final exams, the ZAILE staffer said certificates do not indicate whether one graduated under the repeaters or final exams as everything is labeled the same.

When asked if ZIALE is considering another campus on the Copperbelt as Law training seem to be concentrated in Lusaka, the source disclosed that the institution has plans to open another campus within Lusaka and has since identified a site where such a campus will be located in the near future.

There has been concerns raised that the monopoly held by ZIALE has denied other ten provinces of Zambia from housing private law practices to five residents equitable access to the justice system and law representation.

According to a report done in Zambia, most lawyers are based in Lusaka with a few on the Copperbelt. Other provinces outside Lusaka and the Copperbelt remain remain largely under served frustrating the decentralization efforts of national development.

0 Comments
0 likes

Most practicing lawyers in Zambia only manage

Mining

The Mines ministry has revised the process through which mineral export permits are issued in order to close some historical loop holes and maximize revenue generated by government from mineral royalty tax.

The Ministry’s Permanent Secretary – PS Barnaby Mulenga has disclosed that this decision has been arrived at in order to maximize government revenue which is currently being lost through some exporters’ submission of low grade samples to the ministry’s chemistry laboratory while the actual exported product may contain a varying grade.

He stated that currently, every client who wishes to apply for a mineral export permit submits a sample of the export consignment to the chemistry laboratory of the Ministry.

Based on the sample analysis results from the laboratory, a Mineral Valuation Certificate of the entire mineral export consignment is prepared and it is on the strength of this valuation certificate that, after the applicant has obtained a mineral royalty clearance certificate from the Zambia Revenue Authority (ZRA), the Ministry issues a mineral export permit to the applicant.

Mulenga said unfortunately, this practice had opened a window of opportunity for some mineral exporters to deliberately submit low-grade samples to the chemistry laboratory adding that this has resulted in undervaluing of mineral exports and consequently, loss of revenue earned by the government through mineral royalty tax eventually paid.

In a statement made available to the Zambian Business Times – ZBT on June 10, 2020, Mulenga said the loss of revenue could amount to significant amounts or even millions of dollars per export, depending on the amount of discrepancy in mineral grade between the submitted sample and the consignment being exported.

“In view of the above, the Ministry has put an end to the current arrangement so that Officers from the Ministry will be going to the mine sites or traders’ warehouses to independently collect the required samples instead of relying on samples submitted by exporters,” He said

He added that this decision will also eliminate the inconvenience of requiring clients to travel to Lusaka to submit samples each time they apply for a mineral export permit and achieve orderliness in the processing of mineral export permit applications as opposed to the practice currently prevailing.

“It is the desire of the government that the ministry gains full oversight of the mineral supply and value chain in order to ensure effective monitoring of mineral production and exports. Therefore in order to facilitate the smooth transition from the current scenario to the new one, all exporters are requested to ensure that their applications for export permits are received by the Ministry at least one week before the officers’ sampling visit to each region,” He added.

He informed all exporters of metals and other mineral products that, with effect from 1st July, 2020, the Ministry will no longer accept samples submitted by exporters to the Chemistry Laboratory at the Geological Survey Department in Lusaka.

0 Comments
0 likes

The Mines ministry has revised the process

Markets

As Ministry of Finance commences the revision of the 2020 National Budget that has gravely been impacted by the effects of Covid-19, financial analyst Maambo Hamaundu has advised on the need to consider putting the country back on a path of economic recovery and support local businesses who have been the most hit.

Hamaundu stated that given the impact that the outbreak has had on the domestic economy, it is only prudent that government makes funds available that could stimulate internal activities such as dismantling of domestic arrears.

He told the Zambian Business Times – ZBT in an exclusive interview that there is need to also create a path for commencement of business activities with the domestic economy which has extremely become low resulting from complete closure of some businesses and loss of income amid Covid – 19.

Hamaundu said the call for help by SME’s is justifiable as they are facing a number of challenges and that the provision of the K10 billion facility by the Bank of Zambia – BOZ may only favor a few large businesses.

He added that in order for most businesses to return to their feet, grants and other ways to inject activity is going to be appropriate as opposed to loans which have obligations of paying back.

“We must prioritize the local business sector when revising the 2020 budget and ensure enough funds are being allocated to local businesses because the K10 billion facility has an obligation of paying back and most of the affected businesses especially bars have completely lost their revenue on closure hence only a grant is ideal for them because they have fallen back on rent and salaries, He said.

He further said that as government prepares for the 2021 budget, there is need to target the Agricultural, Energy, Manufacturing and Tourism sector as they have potential to generate revenue in the country.

Secretary to the Treasury Fredson Yamba last week announced that ministry of finance has commenced preparation for the 2021 budget and that in order to ensure broad-based consultations, it is calling on the general public, companies and non-state actors to make proposals for possible inclusion in the 2021 National Budget.

0 Comments
0 likes

As Ministry of Finance commences the revision

Tech

ZESCO Spokesperson Henry Kapata has advised AFCONS to be patient with the power utility company over the process of relocating underground power lines to pave way for roads under the Lusaka Decongestion project.

It has been emerged that road works in Lusaka have certain parts not completed resulting in delays and the contractor AFCONS has attributed that the delays are actually being caused by ZESCO and the Lusaka Water and Sewerage Company – LWSC who have delayed relocating their lines despite been paid.

Kapata has told the Zambian Business Times – ZBT in an exclusive interview that relocating highly sensitive installations like those of ZESCO requires cautiousness and not timeframe to ensure a good job is done to avoid putting the lives of people in danger.

He said the company is currently working on a number of projects across the country and relocation of power lines on road projects has already began, therefore AFOCNS needs to exercise patience as their roads will soon be cleared in no time.

“Routing installations is not like switching off a candle, it needs to be done cautiously hence it’s important for them to realise that when they engage us to do our professional works, they should leave it to us, we don’t work on timeframe with regards to such installations, we work with caution,” He said.

The Lusaka decongestion project is seen as a solution to making doing business in the capital easy, as traffic jams had reached an unprecedented level were working hours were being lost in traffic, impacting negatively on productivity.

Residents has also been taking to social media and morning traffic radio shows to vent their frustrations on being caught up in heavy traffic jams leading to higher stress levels. This is one reason why the Lusaka decongestion project is key to improving quality of life for the capital city residents.

0 Comments
0 likes

ZESCO Spokesperson Henry Kapata has advised AFCONS