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Energy Minister Matthew Nkuwa has stated that the Copperbelt Energy Corporation – CEC remains a Zambian private company listed on the Lusaka stock exchange and has not been nationalized or expropriated by government following its recent developments with Konkola Copper Mine – KCM.

Nkuwa says government is aware of the over 400 Zambians who have invested in CEC and is proud of its achievements in the recent past and it continues to play a critical role in the Zambian electricity market therefore sentiments indicating that the Zambian government is about to take over CEC should be ignored.

Speaking at a joint media briefing in Lusaka on June 17, 2020, attended by the Zambian Business Times – ZBT, the minister said prior to the expiration of the Power Supply Agreement – PSA between KCM and CEC, KCM formally engaged ZESCO to enter successor agreement that would ensure continuation flow of power following its outstanding debt of about $144 million owned to CEC.

He said it was from this stance that ZESCO was free to enter into a PSA as on June 1st 2020 and that it was in accordance with clause 18 of the electricity Act of 2019.

He further said that in the interim, ERB has determined that CEC shall charge a wheeling tariff of US$5.84/KW/Month effective June 1st 2020 pending determination of a final tariff governing the relationship in consultation with the parties.

“I would also like to indicate that the infrastructure remains that of CEC while the same shall be used as a common carrier of power in line with the provisions of the electricity Act 11 of 2019. However, we are still in consultation to come up with our own charges, terms and conditions but be rest assured that our charges will not go beyond what has already been set by CEC,” He added.

Meanwhile, the minister has also confirmed 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 power from Lusemfwa Hydro Power Plant. The power deficit in the country still stands at 810MW and that Load shedding for up to 10 hours is being carried out for different customer’s categories under distribution.

Energy Minister Matthew Nkuwa has stated that

The National Biosafety Authority – NBA has seized products that may contain genetically modified organism (GMOs) worthy over K 80,000 from Game stores and Spar supermarket in Lusaka which were being sold without a permit from the Authority.

The Authority had last week during its spot and compliance checks discovered that the two chain stores were trading in some products which may contain GMOs that were not granted permits.

NBA Communications Officer Sandra Lombe has disclosed to the Zambian Business Times – ZBT that the stores, namely Game stores- Manda Hill and Cosmopolitan as well as Spar Superstore which include Twin Palm, Cross Roads, Mumbwa Road and Foxdale, contravened the Biosafety Act as they were selling the products without authorization from the NBA.

“Among the food products seized include Kellogs Noddles chicken flavor, Spar Woof dog food of various flavours, Savemor tea and chocolate biscuits, Kellogs Crumbs, Bisto Original, Savemor soya mince and Savemor soups (chili flavor). “In some of the affected shops we found that they had removed some products from the shelves after being alerted by their colleagues but we managed to get them from the store rooms,” She said

Lombe added that all the products seized shall be destroyed as provided for by the Biosafety Act No. 10 of 2007 adding that the  Authority is disappointed that despite the stores being aware of the process and procedure on how to import and place on the market products which may contain GMO they disregarded the Act.

She said the two chain stores had started the application process but have not completed the process, hence are not allowed to bring in any products that may contain GMOs unless authorized to do so after risk assessment is conducted on the goods intended for importation and subsequent placing on the market.

The Authority has since reiterated its call on stores and traders to get products which may contain GMOs from the suppliers and distributors who have been granted permits because the products have been assessed.

“We would also like to warn all those intending to bring in products that may contain GMOs that the NBA is not sleeping. The Authority will do everything possible to ensure that the Biosafety Act is adhered to. We do not take pleasure in seizing products but we will continue doing so in the interest of the consumers and the environment. We are mandated to ensure that all products that may contain GMOs imported and placed on the market are safe.” She added

The National Biosafety Authority - NBA has

Agribusiness opportunities continue to expand in Zambia as more crops and companies that are connected to the global Agro value chain set up commercial farms in Zambia and engage local farmers in out-grower schemes.

While a 50kg bag of maize is fetching K110, a new crop on the block, quinoa is fetching US$40 (about K720) per 50kg bag. More and more crops with ready uptakers and market are cropping up for those ready to seize the opportunities.

One of Zambia’s large Agribusiness enterprise, Amatheon, has budgeted to buy about 250 tons of quinoa from its out-grower farmers in Mumbwa worth about US$200,000 in 2020. The Agri-Business company has introduced commercial quinoa production in Zambia with about 800 hectares under commercial cultivation.

Quinoa is a rice like grain that is highly nutritious, has all the nine amino as in proteins, high in fiber and is considered a viable substitute for rice and couscous.

Speaking during an exclusive interview with the Zambian Business Times – ZBT, Amatheon Agri Zambia Managing Director Troy Minne disclosed that they are already buying quinoa from the out-grower farmers in dollars and that the crop is forecast on exports to Europe and other key quinoa consuming markets.

About 1,200 local farmers surrounding the farm in Mumbwa joined the out-grower scheme on inception and the introduction of quinoa will promote crop diversification and reduce the dependence on maize in the country. Not only is quinoa a nutritious grain, it has the potential of being a major export crop for Zambia.

“We are not yet selling quinoa and we are still to explore the local market, but we are buying at $40 per bag (approximately K720 per 50kg bag) as the commodity is dollar linked. This is a business that Amatheon has started in order to create opportunities for the local farmers as well as on the commercial business. It a product that’s linked to the dollar and it’s not a kwacha based commodity”, he said.

Minne acknowledged that quinoa is not yet a well-known crop in Zambia but has stressed that they are have come up with an initiative of extending this opportunity to out-grower farmers who are guaranteed the market and uptake of produce.

“At the moment, we have an extension function within the small scale business segment. We go out and promote not only the growing but also support local farmers with technical services. Quinoa serves as a substitute for rice and couscous (durum wheat) in developed countries and is very rich in proteins, so the global market is wide”, he said.

Quinoa is not widely cultivated in Africa but Minne told ZBT that it’s grown successfully in isolated areas of the continent. “There are isolated areas where it’s been grown in Africa, I know that it is grown in south Africa, and certainly it is grown in Ghana, Ethiopia as well as Uganda”, he said.

He further told ZBT that at the moment, Amatheon isn’t making any products from quinoa locally and may in future initiate value addition but stressed that the crop has a big market in foreign countries and will deliver US dollar inflows into the country as its traded in Us dollar.

Minne stated that Amatheon has invested in a processing facility in Mumbwa rural which it is using to polish the quinoa grains before exporting mostly to Europe. For this and more on Agribusiness, contact out Agribusiness experts us on: info@zambianbusinesstimes.com

Agribusiness opportunities continue to expand in Zambia

The Water Resources Management Authority – WARMA has facilitated the investment of over K2.6 billion (about US$140 million) through issuance of water permits.

The water Authority stated that out of 209 applicants considered for Water Permits, a total of 190 water permits were approved and granted.

WARMA stated that the permits granted were for use of water for various economic activities which include Agricultural (88), Hydropower (2), Municipal (59), Industrial (26), Aquaculture(4) and Mining (4).

The Authority has disclosed that the envisaged direct investment that will be injected into the various economic sectors of the country as a result of the granting of the 190 water permits is approximately K2.6billion (based on developers figures).

The largest investment is in the Hydropower sector with about K1.45 billion pledged investment, followed by Agriculture with K720 million, Municipalities with K360 million, Mining with K72 million, while Industrial and Aquaculture being K27Million and K12.6 million, respectively.

WARMA Public Relations Officer Joshua Kapila told the Zambian Business Times – ZBT  that the Authority grants Water permits for commercial, Agricultural and other industrial uses in the country and this is in accordance its legal mandate.

The WARMA Board of Directors has since thanked the general public and business houses that have supported the Authority in its quest to ensure equitable access to water resources by all and further wish to appeal to interested individuals or entities come forward and apply for water permits for commercial use of water.

The water Authority reiterated its commitment to ensuring that the country’s water resources are shared equitably, used sustainably and preserved for the future generations of Zambia.

The Water Resources Management Authority - WARMA

It has emerged that those road works in Lusaka by AFCONS which have certain parts not being completed resulting in delays in road completion are actually being caused by either Lusaka Water and Sewerage company – LWSC and Zesco not timely executing their parts.

AFCONS, an Indian company contracted to construct filter-road and fly over bridges in Lusaka under the Lusaka de-congestions project has bemoaned delays from LWSC as well as power utility Zesco in relocating their lines despite being paid, slowing down works on the remaining roads.

AFCONS Planning and Coordination Manager Sachin Zende told to the Zambian Business Times – ZBT in an exclusive interview that lack of timely relocation of water and power lines is the main challenge being faced at the sites and that the company has continued to engage government on the prevailing challenges hence awaiting response.

He said most of the roads have already been handed over the ministry of local government and AFCONS is currently working on the remaining three major roads which include Great East, Independency avenue and Haile Selassie roads.

“Water and power lines remain as a hindrances to the progression of works, however we are hopeful that these issues will soon be dealt with especially that we are working on busy roads like Great East. Initially, the remaining three roads were set for commissioning in December this year but this may become a challenge if not timely addressed. Overall works for the whole project stand at 70%,” He said

Zende further confirmed that the US$13 million Makeni flyover bridge is 100% complete and will be handled over to government for commissioning next week while works on the remaining bridges are underway and that this month is planned to begin works at Long-acres bridge.

Minister of Local Government and Housing Charles Banda had in March 2020 set April 14, 2020 as commissioning date for the Makeni flyover bridge but this was interrupted due to the Covid – 19 pandemic.

Zende said despite the company suspending its works from 1st April to 28th April 2020 amidst Covid – 19, works have fully resumed with an increase of labor work force to help speed up the process and meet the commissioning date.

He has since expressed optimism that the company will soon complete the remaining bridges and roads in the city as works are going on smoothly, and the team is on track and hoping to complete within the stipulated timelines. Meanwhile, both ZESCO and Lusaka Water have been contacted and we will inform you of their responses as soon as responses are availed.

It has emerged that those road works

Microfinance Zambia, a subsidiary of atlasmara has announced the appointment of Ackim Chalwe as Chief Executive Officer – CEO for Microfinance Zambia.

Chalwe takes over from M’kwinda Sakala who has exited the micro lender. Chalwe’s appointed is subject to regulatory approvals, a note from atlasmara to the Zambian Business Times – ZBT stated.

Ackim Chalwe’s last appointment was at First National Bank (FNB) Zambia where he served as Chief Financial Officer (CFO) from 2009 to 2018 and was instrumental in the setup of FNB in Zambia.

Chalwe has also worked for ALC Business Consulting Ltd and Isshin Consulting Ltd (2018 – to date), Deloitte and Touché Botswana (2000 – 2004), Central Bank of Botswana (1995 – 1999) and Deloitte Haskins and Sells Zambia (1984 – 1989). He is a Fellow of the Association of Chartered Certified Accountants (FCCA) and an Associate of the Association of Chartered Certified Accountants (ACCA).

Meanwhile, Microfinance Zambia has rubbished liquidation claims saying it has actually emerged among the top three Micro Finance Institutions by profit in Zambia after posting an income of K24 million for the year 2019.

Microfinance Zambia Acting CEO Mpimpa Miyoba stated in a statement availed to ZBT that they are elated by this performance for 2019 and disclosed that the notable balance sheet growth which has seen the institution grow by 41% makes it one of the leading micro finance institutions in Zambia.

“This was a great performance for MicroFinance Zambia despite the macro-economic headwinds the market experienced, I am particularly impressed with the 33% growth in customer deposits and savings which is a testimony of the confidence that our customers have in Microfinance Zambia,” He said.

And outgoing board Chairperson Ngosa Chisupa commended the Microfinance Zambia management for delivering a commendable 2019 performance.“I am proud to have presided over the Board of Micro Finance Zambia, which has been a trendsetter in micro finance services and has covered a lot of ground as an institution in promoting financial inclusion among our targeted clients”. He said.

Microfinance Zambia, a subsidiary of atlasmara has

The Agricultural and Commercial Society of Zambia – ACSZ has announced the cancellation of the 2020 Agricultural and Commercial show due to the prevailing global pandemic caused by COVID – 19.

Society’s President Cosmas Michello has explained that the move is in response to government’s implementation of several multi-sectoral measures to fight the COVID – 19 pandemic which has led to the introduction of myriad public health measures and have adversely affected the routine preparations of the show.

Speaking at a media briefing in Lusaka on June 15, 2020 attended by the Zambian Business Times – ZBT, Michello said the society normally take 6 months to prepare but the current prevailing health guidelines has made it impractical to host Zambia’s most prestigious Agriculture and Commercial show this year.

He said the society found it prudent to cancel the premiere show to complement government’s measures adding that the secretariat remains operational and proceed with planning arrangements for the 2021 Agriculture and Commercial show

And when asked to estimated revenue loss from this year’s show, the president could not disclose the figures but confirmed that the society is expected to lose huge amount of money from the cancellation of the show.

“This has been a painful decision for the Board but it is in the interest of our exhibitors, stakeholders, and the general public. We believe in ensuring the safety of all show goers and organizing world-class exhibitors, which cannot be guaranteed this year due to the outbreak of the disease,’ He said.

Michello added that the society further plans to hold mini-shows for specific sectors when the situation becomes favorable and it remains determined to effectively play its role during this pandemic recovery process by initiating the preparations for next year’s show early enough to assist the industry players, show goers, smallholder farmers and delegates to adequately plan ahead.

Meanwhile, this year’s Agricultural and Commercial show was slated for the 29th of July to 3rd August 2020 under the theme “Innovation Through Technology” while next year’s show has been set to take place from 28th July to 2nd August 2021 whose theme will be announced at an appropriate time.

The Agricultural and Commercial Society of Zambia

The Zambia Development Agency – ZDA  has initiated a country wide tour aimed at monitoring of various enterprises registered under the Agency to ensure compliance with incentives given as well as optimization of revenue collection.

ZDA offers a wide range of incentives in the form of allowances, exemptions & concessions for both local and foreign investors. The Agency has in this regard partnered with the Ministry of Finance – MOF and Zambia Revenue Authority – ZRA in initiating a validation exercise countrywide meant to follow-up on all businesses registered with the agency to ensure compliance essentially for those enterprises receiving incentives from government.

ZDA Board Chairman Fisho Mwale says in a statement made available to the Zambian Business Times – ZBT that the Agency undertakes aftercare services for clients which plays a key role in bringing to the attention of the agency and the government some key issues affecting businesses.

He added that Aftercare services include facilitation of various permits, licenses and land issues among others.

Mwale disclosed that a combined team of officers from ZDA and Ministry of Finance have commenced monitoring of enterprises and will be engaging selected companies in all the 10 provinces of Zambia with the view to ascertain the levels of investments, challenges affecting the investors in order to establish a support mechanism required to further push the industrialization and job creation agenda.

A report on their findings will be availed and that is what will prove if this trip is not Merely meant as an incentive for the staff involved. The issue of incentives has been subject to abuse and this move is timely if well executed.

“This on-going exercise will also involve a team from the Zambia Revenue Authority in an effort to promote the One-Stop Shop model. The team work with the Zambia Revenue authority follows the recently signed Service Level Agreement between the two institutions to enhance smooth collaboration in service delivery. Thus the Board envisages that this collaboration will be ongoing and will result in the creation of a ZRA desk at the ZDA to augment this collaboration, He added

The board has further commended the heads of the two institutions in objectively forging a strategic working relationship which will see the two institutions deliver on their mandates effectively.

The Zambia Development Agency - ZDA  has

Transport Permanent Secretary – PS Misheck Lungu has disclosed that government still has plans to introduce electric trains in the Railway sub-sector in Zambia once the energy sector has stabilized power supply.

But when one looks at how the railway sector is progressing, the sense of urgency to get the Railway system working seems to have evaporated following the departure of Former Zambia Railways Chief Executive Officer Professor Clive Chirwa.

Prof Chirwa had in February 2013 unveiled plans to construct a US$1.5 billion train system in Zambia with an underground electric train rail line for passenger trains in Lusaka to decongest traffic in the City. The designs were meant to revamp the Zambian railway sector and turn it into a 21st century railway system that was modern and profitable. The initial US$120 million Euro bond funds availed to ZR were to be used as seeding capital to attract the financiers for the full project cost of US$1.5 billion.

Prof Chirwa had stated upon departure as CEO that Zambia Railways divided the project into four phases namely: Phase I – Rehabilitation of the existing infrastructure along the main line and the inter-mines; Phase II – construction of the second line parallel to the existing line from Chingola to Livingstone, electrification and the sinking of Lusaka station 1.3 km distance; Phase III – construction of railway line to connect Mpulungu port in the north to TAZARA at Mpika and beyond to Chipata line; and Phase IV – The connection of mulobezi line to the new bridge at Kazungula connecting Zambia and Botswana.

Then Engineering Institute of Zambia (EIZ) President Bernard Chiwala had backed the plans saying that it was technically possible to create an underground rail line in Lusaka stating that Zambia has the knowledge, experience and expertise in creating and managing underground rail tunnels if expertise from underground mines on the Copperbelt were utilized.

And Ministry of Transport PS Misheck Lungu told the Zambian Business Times – ZBT on June 12 2020 in an exclusive interview that there is space for electric trains in the sub-sector although it calls for sustainable power supply as the current status of load shedding is a hindrance to this kind of development.

He said apart from heavily depending on ZESCO, the open electricity access framework has now given an opportunity to the private sector to invest in energy and ensure access of power is available at all costs.

“We do have the ambition to bring electric trains in our transport sector but imagine this happened at a time the country is being faced with issues of load shedding, the trains would be stopping each time we run out of power and this becomes poor planning, therefore there is need to look at the growth of the energy sector before we further expand the power demand and utilization through electric rail way system,” He said.

He added that the ministry is also proposing to amend the Railway Act to attract investment from the private sector as the current legislation only gives sole mandate to the government to drive the development Railway system which should not be the case, amended legislation should allow the private sector to invest to enable a quicker pace of growth.

Lungu further disclosed that feasibility studies have been conducted on how to provide Railway connectivity to many places but that the challenge has been on finding an investor and funding.

He said other factors to be considered are the market and the numbers of people if the Railway passenger system is to be improved adding that it is government’s hope that growth in population and urbanization will definitely call for this kind of development.

However, a check on earlier statements released by Chief Government Spokesperson Dora Siliya by ZBT revealed that Cabinet has already approved in principle the introduction of a bill in parliament to repeal and replace the Railways Act, Cap. 453 of 1984 in order to reform the rail transport sub-sector.

Introduction of an efficient and effective transport system in Zambia is seen as a needed catalyst to countrywide economic development. Most industrialized countries have functional railways systems which have also seen frontier African countries such as South Africa, Ethiopia and Kenya revamp and electricity their railway systems.

Transport Permanent Secretary - PS Misheck Lungu

Bars and night clubs in Zambia support over 1 million livelihoods. The number of registered bars and nightclubs now stands at 36,000. When you take an average of five (5) direct employees, this translates to about 180,000 jobs.

And when you take an average family size or family support structure in Zambia of about 6 people per household, you will note that bars and nightclubs support over 1 million (36,000 registered bars/nightclubs * 5 direct jobs * 6 family members = 1,080,000) livelihoods.

For the vast majority of people, bars and night clubs are place to remove stress or a place of relaxation after a long day or week of work. Other people are the happiest when they are at their favorite bar or night club as they get to show off their dancing skills, to drown their troubles and sometimes the dancing is one way to kit fit.

Bars and night clubs also support huge tax payers like brewing companies, have auxiliary workers such as DJ’s, support logistics and trucking businesses, security services and many others too numerous to mention. Simply put, the bars and night clubs support a vast number of jobs and are a source of livelihood for many families.

Speaking to the Zambian Business Times – ZBT in an exclusive interview, The Bars and Night Club Owners Association of Zambia (BANCOAZ) has confirmed that it currently has over 36,000 registered members whose businesses have been shut due to the health restrictions imposed to prevent the spread of the corona virus – Covid 19.

“We are waiting for the president to address our concerns as BANCOAZ, we are looking forward to government just itself giving us a go ahead to open our business because we have been closed for over three months now and this has negatively affected our members. We have told our 36,400 registered members to get ready to open their bar/night clubs this Saturday”, he said.

BANCOAZ also disclosed that on 27 May, 2019, they had a consultative meeting as directed by the president on how bar/night clubs are going to open and operate amid the pandemic.

“We agreed with government that bars and night clubs should be opened in the shortest possible time with regards to COVID19. What we agreed is that bars for the first two weeks, should operate between 12 hours to 18 hours every day and after two weeks we are going to sit down with them with the possibility of operating full time”, he said.

He also stressed that government has never helped them since the closure of bars and that they have not received any money from the K10 billion stimulus package made available by Bank of Zambia – BOZ and that only foreigners will be the main beneficiaries of this package because the requirements from commercial banks are too much for most local club owners to meet.

“We suspect that the commercial banks will just hold on to this money or lend it out at exorbitant interest rates or that they will only lend out to big foreign companies. They are telling us that that Ministry of Finance directed them to give these loans to the business that are identified in the national development plan”.

“These are businesses from the energy sector, manufacturing and tourism. They are looking at big tourism companies like hotels but we argued that night clubs fall under tourism, non of our members has been given, and records are there to show this. We have got records of Zambians who have gone to their banks to access this money and have been denied. So this money though meant for Zambias will only end up enriching foreign companies”, he said.

BANCOAZ has requested government to give them something different from the stimulus package because the many of their members can’t meet the requirements and interest rate given by commercial banks.

“We are requesting government to please give us something different from the stimulus package because these are loans. Bank of Zambia is giving these bank the money at 12.5 % and in return these commercial banks are lending it out at interest rates which are as high as 15%. Very few of our members can afford such interest rates at the moment and as you are aware, 90% of our members’ country wide don’t have meaningful bank lending accounts to talk about, they run on hand to mouth. It’s survival everyday”, he said.

“We had sat down with government and we were just looking for minimal amounts to keep our businesses afloat. We asked government to give something to our members who are renting the business premises they are operating from. Most of our members are renting and the average amount for rentals is about K3,500 per month. We were just asking for government to meet us half way”, he said.

The association has further appealed to police to allow them resume their operations from Saturday 13 June 2020 and that its either their members are killed by guns or COVID19 kills them. It’s a tough situation and we need a solutions urgently. This matter is also partly responsible for the wiping out of revenues for Musicians and artists, so its a big issue.

Bars and night clubs in Zambia support