Connect with:
Wednesday / May 21.
HomeStandard Blog Whole Post (Page 169)

Zambian’s have been urged to get traditional land and transform it to titled land that can be used for various economic activities, create both self employment and employment for others as well as be used as collateral to obtain financing.

Speaking during the launch of the aquaculture seed fund youth empowerment initiative under the Zambia aquaculture enterprise development project in Lusaka on July 2, 2020 attended by the Zambian Business Times – ZBT, Lands Minister Jean Kapata disclosed that there is no Land in urban areas but that there is plenty of it in rural areas, hence applicants who wish to have land outside Lusaka and other key cities should visit the lands ministry offices across the country.

“We do not have land in urban areas but there is plenty of land in rural areas. 10% of land in Zambia is government land while 90% of it is under the traditional leaders and it is very easy for Zambian citizens to transform traditional land and be able to get title provided certain procedures are followed,” She said.

The Land’s Minister further disclosed that government has not concluded the process of validating the Land policy which has been on the cards since 2006. Kapata however encouraged that youths and Citizens who don’t own land should proceed to get traditional land and transform it to titled land.

Kapata stated that the process of validating the document has been agreed by key stakeholders and that it will soon be presented in parliament saying the Covid- 19 situation has contributed to the slowdown in the process.

Kapata said the proposed land policy has catered for youths in the country and a minimum age of an applicant begins from 18 years from the previous 21 years. She added that this is being done to ensure youths are accommodated into owning formal land especially that land can be used as a collateral, hence an individual is able to walk into a financial institution to borrow without experiencing any challenges.

The ministry of lands has since published a process for land transformation from traditional to titled land. This process is being utilized by an increasing number of citizens so far and the ministry wants more Zambians, especially youths to take advantage of this streamlined process.

Zambian’s have been urged to get traditional

The Zambia Swimming Union – ZASU has called on both public and private sector support to ensure that state of the art and Olympic standard swimming facilities are installed in all the ten provinces of Zambia to enable the country have a representative national league.

Even though Zambia has and continues to competed well in many international swimming competitions, swimming is one sport that has not really been given public attention as many council pools have either been privatized or closed altogether.

Speaking in an exclusive interview with the Zambian Business Times – ZBT, Zambia Swimming Union President Guy Phiri says lack of swimming pool infrastructure is one the biggest challenges ZASU have faced and is one factor that has slowed down their penetration into all 10 provinces of Zambia.

“We are in about five of the ten provinces in the country. Its not good enough but our thrust is to get swimming in all corner of Zambia, all ten provinces must have representation through swimming clubs that compete in the national league, so it is a process we’ve started. Our challenge is to get infrastructure in the outlined area but we are getting there”, he said.

This limitation in swimming infrastructure has at times forced our top swimmers to train in South Africa (University of Pretoria) so that they can swim in state of the art swimming and international standard pools. Swimming is much more technical than meets the eye and needs specialists engagement to produce world class swimmers.

Furthermore Phiri disclosed that the union understands that government has other commitments like the public health and education needs more attention but advised that the Ministry of Sport must at least have a fixed budget for all the major sport federations. Lack of a fixed budget makes it hard to come up with plans as its uncertain whether funds will be received or not.

“We understand that the government has other more pressing needs in different sectors. But what we are trying to promote, is that every year they should budget a fixed amount to every or strategic sporting federations so that we can plan”.

“You can’t plan if you don’t know whether you will be given something or not from the sports council [of Zambia]. But if you know that every year you are going to get say K100,000 or K200,000, then you can make plans, because you know you will get the money. But we can’t plan because its guess work as to whether we will get the money or not. I think there needs to be consistency in terms of funding and allocation”, Phiri told ZBT.

However. ZASU is fortunate enough to have alternative sources of funding from organizations like the International Youth Olympic committee and Federation Internationale de Natation” (FINA), one needs to apply for the grant and explain what the grant is for.

We are lucky because of our record as a strong federation and have a reputation that we are very organized, we have been able to source funding from international organizations. We have up to-date and audited financial accounts.

We attract funding from the International Olympic Committee and FINA, they send us about K500,000 every year because they have seen what we are doing and like our programs. But we have to apply for the grants, it’s not like they freely give us, but we need to tell them what we are going to do with the money and you need to demonstrate that you are accountable”, he said.

Sports analysts however indicate that Zambia’s international junior sports fortunes can best be revived if sports associations like ZASU and even FAZ utilize the existing and vast public and private schools system to set up training facilities and competitions across all the ten provinces of Zambia.

The use of both public and private primary and secondary schools to promote sport enables cost sharing, leverages the already existing learning environment and massive number of children most of whom attend various schools to have a bigger talent pool to pick from.

Moreover, school going children are taken care of by their households and all the federations and sports unions have to do is to arrange regional and national championships and sponsorships as well as grants for improving and upgrading sports infrastructure at school and national level for junior sports.

The Zambia Swimming Union - ZASU has

One of Zambia’s landmark biofuel investments located in Luapula province expected to produce biofuel that will see the country cut down on petroleum imports by over US$100 million per annum has suffered setbacks resulting in construction works stalling.

Speaking during an exclusive interview with Zambian Business Times – ZBT, Sunbird Director for Agriculture Mark Muchinga stated that works on the 120 million biofuel refinery plant and factory has stalled because the equipment needed for the factory have been caught up in logistical challenges mainly due to covid 19 restrictions.

Muchinga told ZBT that the covid 19 pandemic has also resulted in some experts from China needed on the ground to progress the high tech and factory construction works being unable to travel to Zambia because of the pandemic.

“The project had already started. That’s why we are planting our nursery but a lot of things have stalled now because of the coronavirus situation. That includes the construction of the factory itself”. Muchinga said.

He further stated that “the experts that are supposed to do some of the construction work cannot come in because of the covid 19 restrictions. Even the factory itself is coming from China and that there are some Chinese that have come through and install the equipment and factory”, he said.

When asked to confirm the progress on the Cassava growing which is mostly under local control and less impacted by the covid 19 situation, Muchinga disclosed that they have so far planted 400 hectares of cassava and that Sunbird have so far engaged over 1,800 local out-grower farmers.

“We’ve got about 400 hectares of nursery cassava so far. That’s the only cassava that has been planted and that’s the nursery we are using to expand on our nuclear farm. We have so far registered about 1,824 out-grower farmers which is translating to about 2,400 hectares being cultivated”, he said.

When asked if Sunbird had approached the government or the Chinese embassy to help facilitate the factory and experts passage to Zambia, Muchinga said that “It’s something that we are working on, it’s not really the government or the Chines embassy that can work on that, but we are looking at where they are coming from”.

“To move the equipment from China to Zambia is not something that can happen in the next three to four months even if it has to start off now, because in all the routes of transit it has to take, the borders are closed”, he said.

Meanwhile he praised the Government and the Luapula Province team for the support that they are giving to Sunbird for helping them in some of the challenges they face. “We are getting the support that we need from the government. The local government and provincial are really assisting with whatever we need from them and there just a few things that need improvement but we know that when it come to that time it would happen”, he said.

Sunbird Biofuel has been allocated about 20,000 hectares of land in Kawambwa, Luapula province. According to the project brief, the company projected to complete the construction of the biofuel plant in 2020 and resume full bio-ethanol (biofuel) and about 36MW power production and sales in 2021.

One of Zambia’s landmark biofuel investments located

The International Fund for Agriculture Development – IFAD has committed to injecting K13.5 million (about US$750,000) in Zambia as contribution towards the handling of economic challenges beset on rural communities by the Covid – 19 pandemic.

IFAD Regional Director for East and Southern has announced in a letter addressed to Finance Minster Dr. Bwalya Ng’andu that Zambia is one of the 59 selected countries that will benefit from IFAD’s newly established Rural Poor Stimulus Facility.

According to information made available to the Zambian Business Times – ZBT by Ministry of Finance Spokesperson Chileshe Kandeta on July 1, 2020, IFAD has put in US$40 million of its own funds as seed money for the Rural Poor Stimulus Facility to get started while more funds will be raised from other development and cooperating partners around the globe.

It is anticipated that the funding to recipient countries will increase as more donors contribute to the facility and that IFAD’s facility resources are intended to support the Government’s interventions in responding to the Covid-19 crisis by financing targeted investments that support rural based small-scale producers and poor households.

The latter written to the minister further indicates that some of the areas to be financed through the IFAD’s Rural Poor Stimulus Facility include providing inputs and basic asserts to enable small-scale producers maintain production and establish fast-maturing alternatives agriculture enterprises.

Other areas include facilitating access to markets in conditions of restricted movement and ensuring that market remain open, and break even demand, feasible and delivering targeted funds through existing financial institutions that work with rural based small-scale producers and small and medium agricultures enterprises to preserve services, markets and jobs.

Dr. Ng’andu has since thanked IFAD for the K13.5 million support saying the facility will effectively supplement rural sustainability interventions that the government has so far developed in response to the Covid-19 induced economic slowdown.

The International Fund for Agriculture Development –

The Export Trading Group – ETG, one of Africa’s largest Agro conglomerates with operations in over 40 countries has disclosed that its actively engaged in the Zambian Cashew-nuts development project and will work to deliver high quality and export grade nuts in Zambia.

Speaking in an exclusive interview with Zambian Business Times – ZBT, ETG programs manager Nyambe Luhila stated that Government and ETG under the umbrella of the Cashew Infrastructure Development Project [CIDP] signed a contract valued at about US$11 million which focuses on the Cashew rejuvenation and re-establishment.

“This is a contract under CIDP and is valued at about US$11 million, but this contract sum is just specific to ETG, there are other components that make up the entire project. The contract is specifically cashew promotion, but because Cashew takes time for you to start harvesting, the project is also encouraging farmers to intercrop”, he said.

Furthermore, he added that EGT is working closely with local communities in the selected areas to train them on how to best take care of the old cashew trees and also how to care of nurseries of cashew plants. The main thrust of this is to promote local knowledge transfer and consumption, to insure that the cashew nuts produced in Zambia are able to compete on the international markets.

“We are training Communities on how to manage old trees, we also train the community members on how to plant and manage cashew nurseries. The end result for all this is that we are going to have good quality nuts for processing locally, whether in western province or within the country, and consumption is going to be both local as well as for the export market”, he said.

However, he stressed that for cashew nuts produced in Zambia to have a credible chance of competing favorably with other countries, the nuts must be big enough and the project is focused on looking at varieties which can give good quality nuts which can compete at international markets as well.

There are currently 16 districts in Western province but the cashew nut training and rejuvenation program is in this first phase being done in 10 districts. The CIDP is a US$55million Government of Zambia project with funding obtained from the African Development Bank – AfDB.

The project aims to cover 60,000 outgrower farmers who are each expected to plant a minimum of 1 hectare (about 100 trees) and boost their annual revenues by an estimate US$430 (about K7,740). With intercropping and expanded hectarage, this project will provide an initial economic base and ready market for produce cashew-nuts produced.

The Export Trading Group - ETG, one

Atlas Mara Bank has extended a K1 billion relief package to its customers who have been adversely affected by the Covid-19 pandemic.

Atlas Mara Bank Zambia Managing Director James Koni says the bank is pleased to provide businesses with appropriate financial solutions and debt distress support programmes.

This relief packages will be given on existing credit facilities to support businesses facing financial distress caused by the Covid-19 pandemic and the subsequent lockdown measures at local and international level.

“As a Bank, we have put measures in place to ensure that the relief packages are supporting our customers whose businesses have been adversely affected by the Covid-19 pandemic. Our goal is to ensure that the relief reaches our customers who need the relief packages the most in the priority sectors identified in the 7th National Development Plan, notably Agriculture, Manufacturing, Tourism, and Energy”, He said

In a statement made available to the Zambian Business Times – ZBT on June 29, 2020, Koni said that Atlas Mara Bank accessed part of the K10 billion Bank of Zambia (BOZ) Medium Term Facility (MTF) funding announced recently.

He added that the Bank has put in place measures to support and provide relief to its customers who are facing various challenges as a result of Covid-19 pandemic and this has allowed the Bank to do even more for its customers.

“I am pleased to announce that a number of Corporate and SME customers have sought relief plans with the Bank of up to One Billion (K1, 000,000,000) worth of loans, which include interest rate reductions, facility reductions and capital and interest repayment holidays (moratoriums). This action demonstrates Atlas Mara Bank’s determination to support our customers and enhance their ability to get through the Covid-19 Pandemic and beyond,” He added

Koni has since commended Government and the Bank of Zambia (BOZ) for this initiative with the aim to provide relief particularly to the most affected sectors of the economy.

Atlas Mara Bank has extended a K1

Prominent economist Professor Oliver Saasa has stated that the establishment of the K8 billion (about US$444 million) COVID-19 bond is a positive move provided proper assessments on how the funds will be applied has been conducted.

Prof Saasa stated that there is need for clarity as to which sectors the funds will be disbursed to, to ensure sufficient return is attained after investments. Otherwise, the country risks increasing its debt stock even further.

The Zambian government’s highest decision making organ (Cabinet) had on June 22, 2020 approved in principle the establishment of a K8 billion economic stimulus package that will be financed through the issuance of the COVID-19 bond.

The bond proceeds are expected to be utilized to settle outstanding payments to local contractors, suppliers and retirees which is projected to result in injecting liquidity into the local economy after the slow down on following the COVID 19 restrictions.

Prof. Saasa has since advised that the application of funds be prioritized to local Zambian contractors and suppliers, saying the industry has been unable to access financing that is needed to expand and retain their labor force due to the delayed processes of dismantling of domestic arrears.

He told the Zambian Business Times – ZBT in an exclusive interview that access to finance by most local companies, many of which are Small and Medium Enterprises – SME’s has been a big challenge as some companies have failed to service their bank loans, hence chances of borrowing or extending their credit lines from banks and other financial institutions are slim.

He noted that the historical challenge of implementation continues, there has been a gap between what the government commits to deliver and the follow through to ensure that what was committed is actually implemented and delivered.

Prof Saasa stated that he is hopeful that the established local bond will be applied prudently and correctly, as local contractors and suppliers are the engines of economic growth in Zambia.

“The move to pay down the domestic debt is important, however implementation is an issue, we must also know that bonds are borrowings, therefore if the money has not been carefully planned for, it will increase domestic borrowing levels and this will adversely affect the country’s economy even more,”

“Government should therefore apply proper assessment on how the money will be applied and not getting money first, then look for programs. Proper assessments and application of funds would avoid future debt restructuring which becomes very expensive, this is a challenge we have had for many years and needs to be rooted out,” he added.

Prominent economist Professor Oliver Saasa has stated

Rudra Copper Limited of Chingola is set to invest USD 41 million in the processing of copper from the slag commonly known as the ‘Black Mountain’ into Copper and cobalt.

Rudra Copper Limited intends to establish a fully integrated copper industry with little or no waste as the by product will be transformed into pavers and other construction related materials.

This came to light when the Zambia Development Agency – ZDA team led by the Board Chairman Fisho Mwale went for a familiarisation tour of the company in Chingola recently.

Mwale disclosed  that the company has so far invested over US$10 million whilst the remaining $31 million will be invested over a period of 3 years.

He added that so far the company has employed about 50 Zambians in the initial phase and is looking to employ over 200 people in the next 6 months when the company becomes fully operational.

He notes that some of the people employed are ex-miners as the company looks to transfer skills and technology to locals.

The ZDA Board chairman commended Rudra Copper Limited for their investment which will create sustainable jobs on the Copperbelt and indicates that the investment will catalyse the formalisation of a small scale miners with the view of encouraging them to further diversify once the slag dotted across the province is exhausted.

In a statement made available to the Zambian Business Times – ZBT on June 29, 2020, Mwale reiterated the need for the company to prioritise local business development through local partnerships, business linkages and domesticated supply chain systems to further augment their local job creation strategies.

He further encouraged local suppliers and small scale miners to formalise their business to enable them tap into this business opportunity.

“We assure you of ZDA’s support to help the company attain its strategic objectives as the success of the company will have cascading positive social and economic impact on the Zambian people,” He said

And Rudra Managing Director Siddharth Patel disclosed that they will also be sourcing the slag from mining companies across the country as well as local small scale miners known as ‘Jerabos’.

Patel explained that this will create ready market for the small scale miners whilst maintaining steady flow of copper concentrate to the mining companies.

Rudra Copper Limited of Chingola is set

The Zambia Association of Manufactures – ZAM has disclosed that the percentage of local products being stocked in the key chain stores in Zambia is currently sitting at only about 35%.

The key chain stores in Zambia include Pick n Pay, Choppies, Shoperite and Spar. No local Zambian store has been able to grow and scale to be among the top five at a national level after the privatization of state owned Mwaiseni and ZCBC chain stores, whose warehouses were mostly sold to shoperite.

This information has come to light following the Zambian government setting up a select committee composed of key industry associations and experts headed by Rosetta Chabala (former ZAM President and currently CEO of ZAMEFA).

The committee’s mandate is to review all products sold in chain stores with a view of coming up with a proposed list of products, which are currently being imported, that will be replaced with locally grown or manufactured products. The ultimate aim is to enhance the import substitution drive and saving up on unnecessary foreign exchange outflow.

Committee Chairperson Rosetta Mwape Chabala disclosed to the Zambian Business Times – ZBT in exclusive interview that there is a local content percentage for a product to qualify to be called ‘proudly made in Zambia’.

She said the ZAM standard for a product to qualify to be classified as a local product is in line with regional requirements of 35 -45%. Chabala sated that the committee will go with the requirements under the rules of origin in COMESA which is 35% value addition while in SADC its 45% value addition. she however stated that In fact, under the Proudly Zambian campaign, the preference is for 50% value addition.

When asked if ZAM or Zambia laws have a pre-set percentage to guide the process of determining the locally made or manufactured products as opposed to locally assembled products? Chabala stated that Zambia is guided by the rules of origin and the Zambia Trade and Industrial policy, which is able to differentiate the difference between assembling and manufacturing.

“It is also important to note that some lines are doing very well especially those by producers who have capacity to produce quality and to scale. She told ZBT that some of the product lines which are doing well and need to be further consolidation include fruit and veggies, meats and poultry, soaps and detergents, honey, dairy etc,”.

Chabala further confirmed that the committee has received the list of all products being imported by top chain stores in Zambia and that the committee would work in a phased manner and start with the Agro sector.

So far the committee has only worked on fruits and veggies and then will be moving on to dairy. She said a lot of fruits and veggies have so far been identified for import substitution either by growing more or by extending the farming and production season beyond the rainy season. Some of the products identified for import substitution include Kumquats, litchis, oranges, Pineapple Queen, Beetroot, Brocolli, Brussel, Carrots, Mushrooms (white and brown), onions, etc.

She added that the committee is working in a phased manner therefore, manufactured products will be last and almost towards the end of the year as it is currently working on agriculture – fruit and veggies, next is dairy and processed meats and then conclude with manufactured items and textiles.

The local manufacturing sector is today said to have been outrun by imported raw, semi-processed, processed and finished products. There is need to identify specific products that can be locally grown, processed and manufactured to develop a viable manufacturing industry in Zambia.

The Zambia Association of Manufactures - ZAM

Glencore owned Mopani Copper Mines – MCM has cautioned members of the public against buying land from unscrupulous people who are selling land that is under Nkana mine license area to avoid losing their hard earn money to fraudsters.

In a statement made available to Zambian Business Times – ZBT, Mopani Copper Mines Public Relations Manager Nebert  Mulenga stated that there is some land that is being sold illegally and has since advised the general public not to fall in the trap of buying land from people who have no title nor authority.

“Mopani Copper Mines wishes to urge all members of the public to desist from buying land being illegally demarcated on Farm No. 840 on the Nkana Mine Licence Area (Surface Rights/Protected Area) in Mindola North near Ichimpe Forestry” he said.

Mulenga disclosed that there are some groups  people who are practicing this illegal act of demarcating land which is owned by Mopani Copper Mine and the proof of ownership can be referred to the purchase and sales agreement between the mine and government.

“The land being illegally demarcated by groups of people known as “Voice of the Vulnerable” and “Luyando Society” belongs to Mopani Copper Mines Plc as assigned in the Purchase and Sale Agreement of 2000 between Mopani and the Government of the Republic of Zambia”, he said.

Furthermore, he said that the land is being used for its active tailings dams and mine expansion. The land extends from Ichimpe Forestry to the Kalulushi-Sabina Road. Illegal plots have been allocated as far as the south-west of Mine Tailings Dam No. 15A up to Mugala community.

Mopani has warned everyone buying this illegal plots that they risk losing their money and worse still, being prosecuted and the structures built on the illegally sold land will be demolished.

“All those buying the illegal plots in the area risk being prosecuted and losing their money as we commence the demolition of all structures illegally built on our land in line with our company’s zero tolerance policy to land encroachment”, he said.

The matter has since been reported to the law enforcement agencies and Mopani has also notified relevant authorities, line Government Ministries and the Kitwe City Council who have described the activity as regrettable.

Efforts are still underway to get a comment from the “Luyando society” and “Voice of the vulnerable” members. Kitwe remains Zambias second larger city by population size and has recently attracted landmark investments such as the ECL mall and business park.

 

Glencore owned Mopani Copper Mines - MCM