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Companies

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.

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The Zambia Development Agency - ZDA  has

Tech

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.

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Transport Permanent Secretary - PS Misheck Lungu

Lifestyle

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.

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Bars and night clubs in Zambia support

Sport

The Football Association of Zambia – FAZ has had its offices raided by the Drug Enforcement Commission – DEC in a sting operation that caught the Football Association by surprise.

The Drug Enforcement Commission is mandated with the responsibility of investigating both drug and money laundering activities.

FAZ informed its membership and stakeholders that its operations have been partially paralyzed following a raid by Drug Enforcement Commission (DEC) officers.

FAZ stated that the Drug Enforcement Commission officers descended on the institution and got away with a laptop and a CPU (server) from the office of the General Secretary Adrian Kashala and a desktop from his personal assistant.

In a statement made available to the Zambian Business Times- ZBT, FAZ Communications Manager Sydney  Mungala said officers from the Drug Enforcement Commission presented a search warrant looking for drugs and narcotics and other related substances.

But sources spoken to by ZBT have indicated that the FAZ Secretary General is being investigated on money laundering and funds related matters. DEC however is yet to issue its official statement on this developing matter.

FAZ stated that is however disturbed by the nature of the operations conducted by DEC especially that it has set the benchmark of conducting its business above board.

“As FAZ we wish to reiterate that we operate on an open door policy and remain available to whoever wishes to seek information within the law,” Mungala added.

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The Football Association of Zambia - FAZ

Tech

The Zambia Information and Communications Technology Authority – ZICTA is expected to identify a replacement player as the 4th Mobile Network Operator – MNO for Zambia following the failure by UZI to commence its operations.

Communications Minister Mutotwe Kafwaya disclosed to the Zambian Business Times – ZBT on June 11, 2020, that the decision to direct ZICTA to come up with an alternative willing player comes after UZI formally wrote to the Authority that they would not be entering the market following the expiry of their license.

The Minister said UZI had in May 2020 requested for further extension for a period of 120 days which was rejected by ZICTA adding that this is after the network provider kept pushing forward the date to launch its network and the last timeline given to them was end of May 2020.

Kafwaya has since assured Zambians that government remains open and committed to ensuring that there is enough competition in the telecommunication sector in particular and ICT sector in general. “It remains government’s policy to enhance competition in the ICT sector for the benefit of the Zambian people”, he told ZBT.

“It is in this regard that ZICTA will go back to the market to find another player and government will support the process to enhance competition and promote improved quality of services as well as lower the tariff for the benefit of the Zambian consumers,” He added.

In 2017, Cabinet approved a new licensing framework for the ICT sector which was aimed at promoting competition in the sector. Following Cabinet’s approval, the Ministry of Transport and Communications through ZICTA issued new licensing guidelines and invited proposals which culminated into issuance of a notification of wards to UZI Zambia in March 2018.

UZI was then requested to commence operation by March 2019, but in February 2019, the company requested ZICTA for an extension of the commencement date which was granted to them up-to November 2019.

The company again requested for further extensions in November 2019 on grounds that it preferred to roll out 5G as opposed to 4G for which the spectrum was allocated. ZICTA granted UZI’s request up to end of May 2020 on condition that UZI submits monthly progress reports to ZICTA to include the implementation date, update on contracts with vendors and updates of acquisition of equipment.

Then finally in May 2020, it became clear that despite the last and final extension given, as well as the challenges that the parent company UNITEL had gone through, UZI had failed to meet the obligations and the milestones set by the Authority. Their last ditch request for a further extension of 120 days in May 2020 was then rejected and their license has since been cancelled.

Zambia currently has only three mobile network operators that include a local unit of India’s Bharti Airtel, South Africa’s MTN and state owned Zamtel. The telco market in Zambia is largely a two horse race which analyst have said leads to lower levels of competition and makes its imperative for ZICTA to allow in more players.

To further enhance competition, ZICTA has been urged to introduce number porting were subscribers can switch to another network without the need to have their personal phone number changed, a service that is common in other markets.

As it stands now, MNOs are able to ‘lock in’ customers using phone numbers as switching requires customers to acquire a completely different phone number which acts as an artificial barrier. This has also led to some customers carrying two to three handsets at great inconvenience.

As for Zamtel, there has been calls to list the State owned MNO on the Lusaka Securities Exchange – LuSE to infuse a market orientation, enhance financial reporting and corporate governance as the company has struggled to post profits in a lucrative telco market, were its peers (Airtel and MTN) post back to back profits.

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The Zambia Information and Communications Technology Authority

Lifestyle

In a time where we are advised to stay home, people are in need of something new. Watching the same shows can be rather boring. Zambia is in need of a show that sees celebrities flexing their cooking skills to cook up something that can tickle your taste buds

Speaking during an exclusive interview with Zambian Business Times –ZBT House of cakes C.E.O Fazila Lulat says they have come with a brilliant initiative of hosting Zambia’s first ever cake bake show live on social media platforms.

“It’s the first time that we have done this so we want to see how this will work on social media platforms. So far we’ve had very good reviews. People are really getting excited about this. The first day when we put the opening one we had 12 thousand views”,

Lulat disclosed that they are not putting the whole show online and says the first day was a teaser to hook people’s attention that’s why they showed the 1 hour show online. But even though they are only showing bits of the show, they are still getting over a thousand views

The first day we did a full on 1 hour 30 minutes live show. But yesterday we didn’t do a full show because the first day was a teaser for everybody to see what’s coming up. Yesterday we only did small shot bits for people to have an idea of what’s coming. We are not putting the whole show every day online. Even though we had shot bits, we still had over thousand eight hundred viewers.

However she says that next week they will put up full episodes. When asked how house of cakes recruits the musicians, Lulat explained that most of celebrities are clients and inviting them was not a challenge.

“Most of these celebrities are our clients at house of cakes. So we sent them invitations if they were willing to participate and all these celebrities where happy to participate in the challenge”, she said.

The competition is a combination of professional and experienced bakers and they were enrolling when house of cakes announced the challenge two weeks ago. A celebrity is paired with a baker during the bake off.

“They are paired in twos. What we did is that people were enrolling when we put it up two weeks ago. It’s a mixture of bakers. One baker and one celebrity are paired together and every day two teams are challenged together”, she said

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In a time where we are advised

Companies

The Ministry of Energy has proceeded to implement the approved policy framework which supports an open Electricity Supply Industry (“open ESI”) that eliminates monopolistic tendencies.

The open ESI entails that neither ZESCO nor any other owner of Transmission or Distribution Infrastructure can claim exclusivity for their use as third parties will now be able to supply power across Zambia.

This move is intended to encourage participation of various players in the three key segments of the value chain, i.e. Generation, Transmission and Distribution and deliver the much needed efficiencies for the country. Wheeling charges in the new framework will be set by the Energy Regulation Board – ERB.

And ZESCO has since welcomed this competitive environment and the opportunity to prove that it can compete on a leveled playing field with the best competitors in the market.

According to information made available to the Zambian Business Times – ZBT, ZESCO Director for Strategy and Corporate Services Patrick Mwila said the future is brighter for the electricity trade if new entrants are free to setup a power plant, negotiate for direct supply with any willing consumer, negotiate for the wheeling of their power with owners of infrastructure on commercial terms across all transmission and distribution lines as long as capacity is available, and regardless of the ownership.

Mwila further stated that the agreement between ZESCO and Konkola Copper Mines – KCM is part of ZESCO’s long-term strategy of correcting imbalances in the power supply chain. He added that ZESCO is now in a position to compete for the supply of power directly to those mining consumers on the Copperbelt who are able and willing to enter into new commercial relationships.

“Supply to such consumers was previously the preserve of CEC, but with the lapse of the BSA, the consumers, ZESCO and CEC are free to buy and sell power from anywhere and supply to anyone as long as the terms are commercially competitive.

ZESCO also notes that under these circumstances, ZESCO’s traditional consumers may also be subject to competitive bids or solicitations from other potential suppliers, but we firmly support the new market framework and we are ready to prove that we can supply power more competitively than anyone else in the Southern African region,” He added.

Meanwhile, he said despite the company’s initial failure to finalize a new power supply agreement to replace the now expired BSA, ZESCO continues to make power available to CEC to allow it to continue supplying its consumers who have already contracted for power supply from CEC and to supply ZESCO’s existing consumers in the Copperbelt.

Mwila added that this is despite the fact that CEC continues to owe ZESCO millions of dollars in unpaid arrears under the recently expired Bulk Supply Agreement.

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The Ministry of Energy has proceeded to

Markets

Stockbrokers Zambia limited has warned that the recent developments between Copperbelt Energy Corporation – CEC and Konkola Copper Mines – KCM may have a material effect on the price of the Company’s securities and shareholders hence advised to exercise caution when dealing in the Company’s securities.

In a statement made available to the Zambian Business Times – ZBT, CEC company secretary Julia Chaila stated that the combination of these developments may have an effect on CEC’s securities and shareholders.

Chaila stated that “the CEC Board of Directors has since informed shareholders and the market that the Power Supply Agreement (“PSA”) between CEC and Konkola Copper Mines Plc – KCM came to an end on 31 March 2020 but was extended, through mutual agreement of the parties, to 31 May 2020. Consequently, effective 1 June 2020, there is no contractual basis upon which CEC can continue to supply electricity to KCM”.

Chaila further said that the market is further advised that KCM has accumulated a US$145 million debt to CEC in unpaid power charges representing twelve (12) months of consumption, which remained unresolved at expiry of the PSA.

“Further, on 29 May 2020, KCM notified CEC that they had signed a term sheet for power supply with ZESCO Limited (“ZESCO”). The same day, the Government of the Republic of Zambia issued Statutory Instrument No. 57 of 2020 declaring CEC transmission and distribution infrastructure as “Common Carrier” to enable ZESCO distribute or wheel power through the CEC infrastructure to supply KCM”.

“Subsequently, on 31 May 2020, the Energy Regulation Board – ERB set a wheeling tariff equivalent to about 30% of CEC’s current network tariff,” She added. CEC is listed on the Lusaka Securities exchange – LuSE.

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Stockbrokers Zambia limited has warned that the

Companies

The Zambezi River Authority – ZRA has confirmed that its rehabilitation works at the Kariba dam has been slowed down.

The River Authority has taken measures to mitigate against the risks associated with the Covid -19 pandemic on its major worksite, the Kariba Dam Rehabilitation Project site although it poses challenges in project implementation schedules.

The Authority is fully aware of the health risks associated with large projects like the Kariba Dam Rehabilitation Project (KDRP) which requires input from bi-national and international experts.

ZRA Chief Executive Eng. Munyaradzi Munodawafa says the US$294 million project has been classified as essential, therefore works continued at the project site with strict adherence to health guidelines from the World Health Organization and the Contracting States.

He disclosed that there is substantial human traffic around the KDRP site by local and international workers, contractors and service providers which include some staff who had traveled to their home countries on leave hence this has temporarily left some gaps in the smooth schedule of the operations.

According to information made available to the Zambian Business Times – ZBT on June 10, 2020 by ZRA Public Relations and Communications Manager Elizabeth Karonga, Munodawafa added that with the progressive easing of lockdowns under specified conditions, some of the affected team members have been quarantined and should return to the site soon.

Meanwhile, no cases of Covid – 19 have been recorded in the Kariba and Siavonga areas, hence the Authority has remained vigilant in adherence to statutory and corporate procedures on testing, isolation and working from home on a rotational basis.

“There is also a reduction of direct contact meetings like Joint Missions of experts and site visits, relying more on video conferencing. This is the only solution for now, although it poses challenges in project implementation schedules since the inspection visits are instrumental in guiding the works, “He said.

He added that a hand washing procedure and a temperature check at main entrance for all employees has been effected and transport movement times have been adjusted to reduce waiting time and minimize impact on work schedules.

Another area that is closely monitored is the transportation of employees to and from work site by reducing the number of occupants in vehicles during transportation.

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The Zambezi River Authority – ZRA has

Tech

For some years now, three mobile network operators have dominated the Zambian mobile network sector, Airtel, MTN and Zamtel. Zamtel is state owned and has struggled to be profitable, leaving this lucrative sector to practically be a two horse race between Airtel and MTN in Zambia.

The addition of a fourth mobile operator, Unitel’s Uzi was seen as inevitable, but this has gone horribly wrong. Though a big name brand and global telcos like Orange which has massive experience in Africa would have been better to bring in a healthy battle and deliver more innovative services and world class standards to benefit consumers, the ZICTA team opted for little know Unitel.

UZI license extension expired at the end of May 2020 and the Zambian Business Times – ZBT confirmed with ICT regulator ZICTA that indeed, there were no more extensions to be made. This is why the Consumer Unity and Trust Society (CUTS) has expressed its disappointed by the mobile network operator Unitel/ UZI’s failure to enter the Zambian market.

In a statement made available to Zambian Business Times – ZBT, CUTS researcher Aquila Ng’onga says the entry of the fourth telecommunication company would have brought up the much needed competition and would give consumers a fair price and more choice

“The entry of Unitel/Uzi Zambia into the mobile phone network sector would have been beneficial for consumers by providing them with choice, the possibility of better-quality voice and data service, and the setting of better price points”, he said.

Ng’onga says that in the wake of COVID-19, there has been an increase in digital and online platforms to maintain and promote social distancing and that majority of the consumers in Zambia access the internet through mobile phone services.

“Most consumers in Zambia (over 7 million) access internet through mobile broadband services via a mobile phones while only  less than 2.7 percent of Zambian consumers access internet through other means as fixed internet services”, he said.

He stated that this shows the importance of  having a third (non-state owned) mobile network operator to ensure that consumers get data at the best price and stressed that people make wise decisions during this time when we depend heavily on mobile network services.

“Our observations show that Airtel and MTN seem to have a similar pricing mechanism around their daily, weekly and monthly data bundles and are higher than Zamtel’s pricing for bundles”, according to CUTS.

In addition, he disclosed that the mobile network providers have several attractive promotions like Ikali, Cheza 4eva and Local Ni Laka offered by Airtel, Zamtel and MTN respectively, however he says that CUTS research reveals that Zamtel has more options in terms of 30 day bundles.

As we try to cope with the covid 19 pandemic, CUTS urges mobile network operators to reduce the data prices, zero rate relevant websites for educational purposes to support low-income households and consider to provide such offerings even beyond the pandemic period.

“We also urge the government, ZICTA as well as MNOs to take steps to addressing the digital divide by increasing access in rural areas in response to the low internet penetration rate that unfairly disadvantages learners, businesses and individuals located there”, he said.

UZI Zambia whose majority shareholder is Unitel International Holdings BV registered in the Netherlands secured a very competitive mobile phone network license in March 2018 and was first scheduled to launch in December 2018.

Zamtel has the potential to rival Airtel and MTN, and offer credible competition, but the state owned mobile network operator has some work to do in driving efficiently and it’s average earnings per user. The IDC and Minister of Finance had given an ultimatum for Zamtel to turn around its financial performance but it remains to be seen if the telco will become profitable this year.

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For some years now, three mobile network