Connect with:
Sunday / April 27.
HomeStandard Blog Whole Post (Page 172)

The National Biosafety Authority – NBA has urged producers and processors of genetically modified (GM) food products to adhere to biosafety and food safety standards to protect people from foodborne illnesses.

The Authority is encouraging all those handling GMO food products to ensure safety for humans, animals and the environment in celebration of the second World Food Safety Day (WFSD) on 7th June 2020.

According to a statement made available to the Zambian Business Times- ZBT on June 5, 2020, NBA Communications Officer Sandra Lombe says NBA through internationally recognized biosafety standards, codes of practice and other national guidelines and laws, supports national food safety in order to contribute to consumers’ good health and environmental protection.

NBA oversees the aspect of regulating genetically modified organisms (GMOs) or products of GMOs such as food, feed, application and processes from the laboratory or farm to the consumer. This also includes the import, export and transit of GMO products. The Authority works with various partners and stakeholders to enhance this perspective.

“As the Authority we work with various stakeholders dealing in food safety, including the Ministry of Health and Ministry of Agriculture. This is because we have one common goal to ensure safety of humans, animals and the environment. Biosafety measures and standards must be adhered to through the whole food chain up to the consumer. Through risk assessment, NBA will always ensure that the GMO foods placed on the market are safe for human consumption.” Sandra said

She added that it’s imperative to note that COVID-19 is a highly infectious virus that demands good laboratory practices with appropriate biosafety standards, therefore, Laboratories conducting tests for COVID-19 using molecular techniques must adhere to biosafety standards and good laboratory practices as enshrined in the biosafety guidelines/standards for the National Biosafety Authority.

The National Biosafety Authority - NBA has

Association of Microfinance Institutions in Zambia – AMIZ has disclosed that only one micro finance institution has so far been approved by the Bank of Zambia – BOZ to access the K10 billion covid 19 stimulus package.

AMOZ confirmed that micro finance institutions have not been left out from the effects of the global pandemic as supply chains have been disrupted hence affecting businesses who’s sourcing has been difficult.

He said, given that some businesses completely closed amidst Covid – 19 people have been finding it difficult to trade and has created a situation where some businesses cannot service their loans with their respective banks due to low cash flows.

AMIZ Executive Director Webby Mate has told the Zambian Business Times – ZBT in an exclusive interview that it is for this reason that the association has commended the introduction of the K10 billion Medium-term facility by the Central Bank – BOZ which will raise some capital for businesses that have badly been hit by the pandemic.

He has since confirmed that one of its members has had their application for the K10 billion funds approved and that four others have made their submissions hence awaiting response. AMIZ did not however name the micro finance institution.

Mate said this development will see many local businesses improve adding that the association will also continue to play its role of ensuring financial institutions have access to the K10 billion funds while help others have their loans approved.

“Applying for money is a process which may take a bit long, however we are ready for the outcome be it positive or negative because that way will know what to do on our end to help financial institutions access financial assistance,” He said

He has confirmed that the association is satisfied with collateral terms applied in the K10 billion facility as it covers for both banks and non-banks financial institutions.

Mate has since called on micro, small and medium businesses to take keen interests in this facility adding that those that need assistance with applications of the funds can reach out to the association for help.

Local businesses have expressed concern that the K10 billion covid 19 stimulus package may end up being utilized by large corporates and multinationals at her expenses of local SMEs. The argument is that there is currently limited to no SME financing which has rendered Business growth by locals a daunting task.

Association of Microfinance Institutions in Zambia -

Agriculture Minister Michael Katambo has disclosed that this year’s target for beneficiaries of the Farmer Input Support Programme – FISP has been maintained at one million.

Zambia’s maize production is dominated by local emerging farmers who account for more than 90% of the total annual production. The country recorded a Maize bumper harvest of about 3.4 million tons which was about 69% growth in production from the previous season.

The Agro Minister stated that the ministry has this time earnestly started activating the programme by picking on direct input suppliers and registering of agro-dealers through the E-Voucher System and the Direct Input Supply.

Katambo told the Zambian Business Times – ZBT in an exclusive interview that the ministry has maintained the one million target for small scale farmers which was set last year adding that the date of accessing these inputs will be communicated soon.

He said the ministry is already ahead of schedule as about 80% of fertilizer is available within the country hence the Food Reserve Agency – FRA will soon will move on the market to ensure farmers start selling their commodities.

Katambo further said that the K400 still stands for contributions from farmers who want to access the inputs for this year’s season and that the ministry has already contracted suppliers who are currently delivering inputs in designated areas across the country.

“The suppliers that the ministry has contracted are already delivering these inputs and we are also working to see at what stage these inputs will be distributed to help in achieving meaningful development in rural areas,” He said

The minister has since encouraged farmers to sell their produce to the Food Reserve Agency – FRA where they are guaranteed of good prices and not to traders commonly called ‘briefcase businessmen’ who are offering lower than FRA prices.

The Agro minister further urged farmers to only sell what is surplus to them and safeguard household food security. There is no need to sell everything and even fail to secure one’s household food security. Moreover, FRA has offered to buy upto 1 million tons of maize for this farming season which should encourage farmers to sell at better prices.

Agriculture Minister Michael Katambo has disclosed that

There is no better love story in Zambia than the maize and farmer relationship. Even though climatic and weather conditions can enable farmers to grow other high income crops like soya beans, tobacco, wheat, cotton etc, most local farmers still prefer to grow maize.

Export Trading Group – ETG has urged emerging farmers to consider diversifying into other agro crops to earn more income as well as cut down on mono cropping and over dependence of maize.

Speaking in an exclusive interview with the Zambian Business Times – ZBT, ETG Sales Manager Siankoni Zulu stated that farmers need to look at other crops like soya beans instead of being over-reliant on maize.

“At the moment the yield potential of maize is standing at 1.5 to 2 metric tons per hectare compared to soya beans which has a yield potential of about 3 to 4 metric tons per hectare. Definitely if someone invests into Soya beans for instance, they will earn more income than if they invested in Maize for the same piece or size of land. Of cause we are not saying people should stop growing maize, but we are saying diversification is needed”, he said.

Zulu emphasized that although maize is important for our livelyhood as nshima is our staple food, emerging farmers need to look at other crops that yield better returns and more profit.

Let’s compare two crops like maize and soya beans. The tons per hectacre that our farmers are getting from maize is quite low when compared to what these other crops are yielding at the end of a farming season.

Furthermore, he stated that even when you look at the Food Reserve Agency buying prices, a 50kg bag of soya beans has been pegged at K150 compared to a 50 kg bag of maize which has been pegged is at K110.

If you further consider the utilization and cost of fertilizer, one will find that soya beans will on an overall basis deliver much bigger margins than the normal Maize crop production.

He further stressed that there is need to change our mindset in order to see alternative crops like soya beans as crops that can also deliver higher returns and profit. He pointed out that the main cause may be the lack of readily available information and real life examples to the farmers because they won’t easily divert to growing other crops easily.

“A farmer who has been mono cropping won’t accept such advice easily, if there is no emphasizing and demonstrating on how alternative crops can deliver better returns for them to see the difference, it’s difficult for them to invest in alternative crops. And if someone is to investing, definitely they need to see practical examples and results”, he said

Zambia is divided into three Agro-ecological zones and some regions receive more rainfall than others. People need to be aware of these economic zones so that they know which crop to grow. This also applied to crop varieties which may differ from region to region.

We appreciate what the Ministry of Agriculture is doing. But there is much more that is needed to be done. That is why we try as much as possible to help by giving small scale farmers and the people at large fre information. At the moment, ETG has 42 offices across the country and partnerships to help with information sharing.

There is no better love story in

The reopening of gym businesses in Zambia has been welcomed though the pace at which clients are trooping back has and will initially be slow before it can get back to were it used to be.

Makungo Muyembe, Chief Executive Officer – CEO of defined Style Health and Fitness centre (Sweat factory) during an exclusive interview with the Zambian Business Times – ZBT disclosed that his fitness center hasn’t yet officially resumed business as they are still putting safety measures in place.

Since the corona virus pandemic many businesses have  greatly been affected as many countries were completely on lock down and peoples movements were limited and restricted leaving very less activities to take place.

Gymnasiums are among many businesses lines that were completely shut down by health authorities in Zambia and this negatively affected employers and employees’ daily livelihood. Efforts to provide fitness lessons online have been made but monetizing the digital route is a challenge.

However, President Edgar Chagwa Lungu during the third national address announced the reopening of Gymnasiums and other businesses. Some of the businesses have already started operating meanwhile others are still putting safety measures in place before they officially resume business.

Muyembe told ZBT that there’s no other currently viable ways to make money off fitness other than re-opening of the facilities, the only other way would have been through online fitness but normally those are done for free and it’s a challenge to effectively and efficiently get in the income.

Defined Style Health and Fitness is set to resume business in the second week of June, to allow them time to get certification and follow all the guidelines put in place by the Ministry of Health before officially reopening.

Muyembe added that “it’s a bit tricky because even if we reopen, people are still scared, so the attendance is anticipated to be very low and the rent at the location of my business is very expensive.”

Corona virus has and continues to affect many businesses and livelihoods as it will take some time for businesses to get back to where they were before and the income they generated, Sad enough for some businesses, this could be the death of their businesses.

The reopening of gym businesses in Zambia

Cassava cropping has taken a new turn in Zambia following the industrial use of the crop in the copper manufacturing process as well as the industrial use in ethanol manufacturing that has further added to the traditional demand as a food crop

Zambia National Farmers Union – ZNFU Vice President Joseph Mungandi told the Zambian Business Times – ZBT in an exclusive interview that one good example of where cassava has taken root as a commercial crop is Kaoma in western province.

Mungandi said Kaoma district now has about 1,800 hectors of cassava fields and each hectare is producing approximately 340 bags of cassava. Farmers in Kaoma are growing a lot of cassava and farmers in the district are very interested in the new usage of cassava.

“In the recent past Cassava farmers were sub-contracted with Premiercon Starch Company limited of Kalumbila to supply starch, the said company supplied the starch to the Mines for use in the purification of copper at Kalumbila and Lumwana Mines. They also supplied alcohol brewers and the largest quantity that was supplied of 42,000 metric tonnes was supplied to the said company,” Mungandi said.

He further told ZBT that the union has been running an out-grower’s scheme on cassava in Kaoma district. Four years ago, cassava cuttings distribution was made bringing on board about 350 beneficiaries and each farmer was given half an hectare which equates to 50 x 100 meters and the agreement was that after two years the beneficiaries would give back the cuttings and another 350 farmers would benefit from the scheme and since then there has been an increase in the number of cassava farmers to-date.

He concluded by saying the new expanded discovery of the uses of cassava in Zambia to make alcohol based hand sanitizer has been warmly welcomed by cassava farmers in Kaoma district as it will further increase the market value of the crop.

“It is a very good that the industrial use of cassava has been discovered in Zambia and because the Covid-19 pandemic, Cassava production now can save the country some foreign exchange as hand sanitizers which were previously imported can now be locally produced,” Mungandi added.

Cassava in Zambia is said to be the second most economically important harvest crop as a food crop after the staple national crop, Maize. The crop is widely grown in Luapula, Northern, North-Western and Western provinces although it is also grown in other parts of the country.

In the past cassava was produced in Zambia only by small-scale farmers but in recent years, cassava farming industry and cultivation of the crop has been growing in the sense that there is quite a good number of cassava farmers producing large quantities of the crop in the country.

Cassava cropping has taken a new turn

Toyota Zambia, the official distributor and dealer for brand new Toyota vehicles has disclosed that the company will be introducing new financing schemes that include trade-in and leasing effective this month – June 2020.

Toyota Zambia Chief Operations Officer – COO Nenad Predrevac told the Zambian Business Times – ZBT in an exclusive interview that this scheme will promote new financing methods such as trade in and leasing for customers and that it will be done in conjunction with a bank to be unveiled soon.

“In order to make lives for our customers better and provide financing options, we are creating a financing scheme to promote trade in and leasing and currently we have engaged 3 banks out of which, one will be identified to collaborate with us,” He told ZBT.

When asked on the impact of coronavirus on the company, the COO disclosed that Toyota Zambia has lost over 40% of its expected sales since the outbreak Covid – 19 as a result of the inevitable health restriction and slow down in business.

He stated that car sales business has been slowing down since the second the quarter of 2019. Toyota Zambia has lost about 65% in sales volume from the second quarter on the market and this has seen a decrease in its overall sales numbers.

He disclosed that the current challenges facing the Zambian economy have led to a drop in performance for the automotive industry. The further stated that tight liquidity conditions on the market has made it hard for its customers to be able to pay on time.

The automotive industry has also been affected by the high interest rates currently prevailing, making car financing expensive for customers. “The cost of money is high for our customers”, stated Predrevac.

Pedrevac however said that despite the current hardships and decrease in sales, the group company has continued to manufacture vehicles and is hopeful that economic activities in the country will soon revamp to see other sectors resume to grow.

He further said the company is currently working on reducing its cost with the aim of keeping all its employees even after the global pandemic.

He said Toyota has on the other hand been adhering to Covid-19 health guidelines from health authorities for both its employees and customers and has since pledged to continue complimenting government’s efforts towards the fight against this corona virus.

Toyota Zambia, the official distributor and dealer

The Capital Markets Tribunal which was formally inaugurated on 20th May, 2020 by Chief Justice of Zambia Justice Irene Mambilima will enhance efficiency in dispute resolutions and settlement that would enable further growth of the sector.

Before the establishment of the specialised tribunal, disputes within and between capital market players had to go through the normal litigation process which is costly and can be time consuming.

Capital markets are key in any economy as they provide an alternative platform for Small and Medium Enterprises (SMEs) and large enterprises to raise capital (funds) for medium and long term financing other than from loans and banks lending facilities.

Capital Markets Tribunal newly appointed Chairperson Chanda Nkoloma Tembo told the Zambian Business Times – ZBT in an exclusive interview that the Capital Market plays an important role in an economy as bridges the gap between would be savers/investors and would be borrowers for the provision of commercial financing for medium and long term investment.

She disclosed that financing is raised by issuing of shares, debentures, stocks, bonds, and other long-term investments aimed at achieving desirable outcomes such as growth, profitability, productivity, competitiveness, efficiency and/or innovation critical for driving both business and economic growth.

She added that while the Capital Market provides opportunities for mobilizing, sourcing and accessing commercial financing for businesses, the market can only function optimally if it is well organized and regulated, and that is were the tribunal will play its critical part.

“Recent experiences from the financial crisis of 2008 show the catastrophic effects of a Capital Market that malfunctions due to poor regulation and poor enforcement. The industry therefore, requires the establishment of effective and robust institutional and supervisory arrangements to assist, firstly, in shaping the functioning of the Capital Market to avoid malfunctions in industry caused by misconduct by market players”.

“Secondly, well organized and regulated capital markets to protects funds of investors whether local, foreign, individual, small, or large from risks in the market,” She said.

Tembo further disclosed that key market players in the Capital Market sector in Zambia include the Lusaka Securities Exchange (LuSE), issuers of stock such as companies listed on the LuSE, the International Finance Corporation (IFC), investors such as Pension funds, institutions and individuals, Capital Market operators such as brokers, investment advisors as well as transfer agents and representatives. All these parties and players will have an efficient dispute resolution mechanism through the tribunal.

The Capital Markets Tribunal in Zambia was established as a quasi-judicial body under the Securities Act, No. 41 of 2016 and formally inaugurated on Wednesday 20th May, 2020 following the swearing in of Tribunal Members by the Chief Justice of Zambia.

The Capital Markets Tribunal is established to be a dedicated, industry-specific and fast-track adjudicative body for resolving and settling disputes in the Capital Market. This provision is meant to deliver a more efficient capital market for Zambia which is key to growth and expansion of the sector.

The Capital Markets Tribunal which was formally

Tobacco, a cash crop which sees about 90% of all its production volumes exported has potential to further grow and deliver over half a billion dollars (over US$500 million) in foreign exchange earnings for Zambia per annum once the bottlenecks are cleared out.

The Tobacco Board of Zambia – TBZ Chief Executive Officer James Kasongo told the Zambian Business Times – ZBT in an exclusive interview that to ensure the industry reaches its potential, there is need to urgently amend the outdated legislation.

He told ZBT that once legislation is updated, the industry will be empowered to attract more buyers into Zambia, streamline finance for small and medium scale farmers with favorable interest rates as well as enable the use of multiple business models.

Zambia has in the past years recorded a decline in production of tobacco with this year’s output forecasted to reduce. Burley tobacco is forecasted to reduce by 58% to 3,861 metric tonnes, down from 12,839 tons, while Virginia tobacco has been forecast to decline by 7% to 11,955 metric tonnes, down from 12,8839 produced in the last season.

Kasongo told ZBT that the other factor leading to low production of tobacco include limited number of buyers on the market which is mostly attributed to the legislative challenges. “Zambia currently has only about 3 key tobacco buyers which include Japan Tobacco International- JTI, Tombwe Processing Limited and Alliance one. The country can attract many more players to provide better prices and alternatives to farmers.

He added that tobacco being a specialized crop, it has specialized buyers who look for a particular quality and quantity based on international standards and contracts, hence buyers determine the offtake and farmers can only grow up to the volumes projected and demanded. These off-take volumes for Zambia can be increased once the legislative challenges are attended to.

TBZ further stated that the lack of financing for local small and medium size farmers in the tobacco industry can largely be attributed to outdated legislation which does not provide investment protection for out-growers and major off-takers. This has severely contributed to low production despite the crop being a key export commodity and contributing to the country’s treasury.

“About 90% of tobacco grown in Zambia is exported basically to China and and other countries. Tobacco crop is about 14 times more profitable than cotton and about 7 times more profitable than maize per acre. So, it’s a crop that gives much more returns from the same piece of land.

And in terms of its contribution to the GDP, in 2013 it contributed about 3% but currently we are contributing about 1% and it’s an indication that the industry is not doing well,” He said. If you look at production volumes and foreign exchange generated from tobacco in Malawi and Zimbabwe, you can see that the potential is enormous for Zambia.

He lamented one of the most important factors which urgently needs to be addressed is the need to have a conducive legal framework which will fully meet the business aspirations of the industry as the current Tobacco Act Cap 237 was last reviewed in 1968 hence the business model on how people operate within the industry has completely changed.

The board has since advocated for the updating of the legal framework which if well formulated and implemented will attract more investors and buyers on the Zambia market, help establish a robust auction system, aid investment protection by eliminating vices such as tobacco vending as well as avail the key tobacco players source financing to fund extensive out-grower schemes.

Meanwhile, Agriculture Minister Micheal Katambo had on May 27, 2020 announced that in order to revamp the production of Tobacco as a key export commodity, Cabinet has already authorized his Ministry to begin the process of reviewing tobacco legislation in collaboration with all stakeholders and proceed with amendment and updating of the legislation.

Katambo stated that Government has noted the continued decline in tobacco production which is unfortunate as it translates in a loss in foreign exchange earnings, and the reasons cited for the poor performance in the tobacco industry is outdated legislation hence, he pledged that his ministry will proceed with amendment of the relevant legislation to stimulate the growth and re-energize the tobacco industry.

Tobacco, a cash crop which sees about

First National Bank – FNB Zambia has confirmed that the Bank is participating in the K10 billion Medium-Term Refinancing Facility and is currently in the process of fulfilling terms and conditions required by the Central Bank to facilitate drawdown on the facility.

The Bank has disclosed that for new-to-bank or non-borrowing customer wishing to apply for a loan, FNB’s normal credit criteria will apply and is subject to assessment of but not limited to the three (3) years’ Audited Financial Statements, Projected Cash flow statements demonstrating ability to service debt and Primary banked with FNB.

Speaking exclusively to the Zambian Business Times – ZBT, FNB Head of Marketing and Communications Clotilda Mulenga said other credit criteria include acceptable collateral to cover requested facility and any other documentation the bank may require such as licenses and CVs of Directors based on the respective sector that the business is in.

She added that FNB has long prided itself as a digital bank hence customers can apply for help through the FNB App, reducing the need for unnecessary exposure in public places and that the amount that each customer qualifies for will be determined by their individual circumstances.

“As mentioned by BOZ, this assistance is a loan and the Financial Services Provider (in this case, FNB Zambia) carries the full risk of the facility and will be responsible to pay interest to BOZ from the date of drawdown, and capital when due. Therefore, we wish to note that normal credit principles will apply,” She said

“However, we remain committed working with the Central Bank to ensure that we responsibly help our customers where we can. We are committed to ensure financial stability and are committed to working with the Central Bank to ensure the right results are obtained,” She said

The Bank of Zambia – BOZ facility has been put in place to assist qualifying customers who have been negatively affected by COVID-19, with a focus on the Central Bank’s prescribed sectors as per the Seventh National Development Plan – 7NDP (i.e Agriculture, Manufacturing, Energy and Tourism).

The funds are therefore intended to protect businesses and individuals whose accounts were in good standing with commercial banks but are now facing temporal difficulties due to the COVID-19 pandemic. All customers from Small and medium enterprises to corporates that meet the criteria are eligible to apply.

First National Bank – FNB Zambia has