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Tech

The Road Development Agency – RDA has disclosed that the delays to complete the Kitwe – Chingola dual carriage way are as a result variations that took place after the initial scope such as the inclusion of toll plazas and bridges along the roads as well as cashflow challenges.

Works along the Kitwe – Chingola dual carriage way are currently standing at 90 percent completion rate and set for commissioning soon after the COVID -19 situation stabilizes. The Kitwe – Chingola contract which falls under the Ndola – Solwezi road project worth K2.1 billion is being funded in partnership with the National Pensions Scheme Authority – NAPSA.

RDA Corporate Communications Manager Masuzyo Ndhlovu told the Zambian Business Times – ZBT in an exclusive interview on April 6, 2020 that the Kitwe – Chingola road project is a stretch of about 46 Kilometers and only 19 kilometers is remaining before it is fully completed.

Ndhlovu said other factors include the outbreak of COVID -19 which has led to the suspension of works at the site, hence the contractor will only resume works after the situation stabilizes then later determine the date for commissioning the project.

“We hope to commence the Kitwe – Chingola dual carriage way soon after the COVID -19 situation normalizes and this project falls under the entire project of Ndola – Solwezi road but we are working on it in phases”, he added.

He further told ZBT that the repayments for the funding provided by Napsa for the road project will be made from proceeds of the the toll fees collected at the Wilson Mofya Chakulya toll plaza.

RDA had in 2013 awarded a K562 million contract to Sino Hydro Zambia for the construction of more than 45 kilometers of dual carriage way between Kitwe and Chingola on the Copperbelt province. Motorists have expressed concern that the little stretch remaining should be completed to make the whole stretch usable as further delays in commissioning the road are a worst of resources already pumped in.

The Kitwe – Chingola road is a busy and economically important road and has great potential in maximizing collections for government and its agency – RDA through the toll plaza that has been installed. The road has been subject to hectic highway traffic jams causing unnecessary demurrage as it’s a key route for truckers delivering cargo to Congo DR through Kasumbalesa border.

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The Road Development Agency - RDA has

Tech

The Zambia Chamber of Small and Medium Enterprise Association – ZCSMEA has called on Small and Medium Entrepreneurs – SME’s to consider conducting their businesses using online platforms, to avoid physical contact with consumers at the risk of spreading Coronavirus (COVID-19).

ZCSMEA Chief Executive Officer Moto Ng’ambi has told the Zambian Business Times – ZBT in exclusive interview that local businesses should respond to the current situation by considering online selling of goods and services which could then be delivered to the recipient.

He added that despite businesses collapsing on threats of COVID -19, it is essential to avoid physical contacts and take measures of washing hands and making sure hygiene is practiced to mitigate the spread of the virus.

“People’s businesses have already been affected but we need to complement governments efforts in fighting this disease which, if left unattended to, is likely the further threaten the country’s economy and once our economy completely collapses, SME’s will suffer the most. However, lets practice online shopping on platforms like Facebook, twitter, WhatsApp to avoid recording more cases than we already have,” He said.

Moto has since urged business entities to be more pro-active and prudent enough in a way business is conducted to avoid risking the health of consumers and employees. As per guidance given, essential businesses dealing with goods and services will be kept running while restaurants will operate on a take away and delivery basis.

Some SME businesses have directly been affected and their revenue streams shut overnight following the ban on certain businesses to prevent the impact of COVID – 19, the banned businesses include Bars, Night Clubs, Gyms, Cinemas and Casinos across the country effective March 26, 2020.

Some of these SME businesses can be operated online, we have seen some gym trainers taking to online platforms to provide their services digitally, so its time to think of opening online ways to service clients. Let the SMEs be innovative to save their businesses and open up new online revenue streams. Payments can now be received via mobile money.

We have seen churches conduct online services, we have seen some businesses support their workers to work from home, so SMEs are also challenged not to just resign and close their businesses but find ways to work and sell their products via online and digital methods.

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The Zambia Chamber of Small and Medium

Markets

The Zambian economy has been facing significant headwinds with rising inflation (currently at 14% from a single digit range) and raising debt service obligations ( on the back of the continued Kwacha depreciation) and the outbreak of COVID- 19 has compounded the situation resulting in unprecedented public health and economic challenges.

Given the impact that COVID-19 has on pubic health and the economy, the Bank of Zambia – BOZ has put together a set of comprehensive measures to safeguard financial system stability and promote greater use of digital financial services and mitigate the negative effects of this shock on the economy.

Bank governor Dr. Denny Kalyalya in a statement availed to the Zambian Business Times – ZBT on April 4, 2020 that the central bank has established a target medium term refinancing facility with an initial amount of K10 billion to provide medium term liquidity.

Dr. Kalyalya added that the amount will be reviewed as conditions warrant adding that this is a three to five years’ facility that will be available to eligible Financial Service Providers – that includes banks and other financial institutions to enable them restructure or refinance qualifying facilities and that detailed implementation will roll out as soon as on-going discussions with Bankers Association of Zambia – BAZ are concluded.

He said the Bank will revise loan classification and provisioning rules through the issuance of new directives as the replacement of SI No. 142 of 1996 which is in the process of being revoked saying this will allow FSP’s to better accommodate lending, refinancing and restructuring of facilities to critical sectors.

He further disclosed that the Bank will also scale up open market operations to provide short-term liquidity support to commercial banks on more flexible terms than those obtaining before the outbreak of COVID-19.

Among other measures include, to allow eligible non-bank financial institutions to partially use capital instruments that would not ordinarily qualify as common equity Tier 1 and Tier 2 capital for purpose of computing regulatory capital.

“We have also stepped out sensitization and encouraging the use of digital channels and countless mobile payment mechanisms aimed at preventing the spread of the disease by minimizing person – to – person contact, decongesting banks and other financial institutions premises,” He added.

In addition, the Central Bank has implemented business continuity protocols that will ensure that systemically important payment systems and financial market infrastructure remains available.

These measures announced are expected to bring relief to the monetary system and financial players as fear had started gripping some banks and non-bank financial businesses as to their ability to remain as going concerns.

On the steep Kwacha depreciation, analysts at ZBT expect to see the impact this week after the central bank implements some of its pledged open market operations. The need for more details on which open market operations and how further depreciation of the local currency would be halted have not yet been communicated.

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The Zambian economy has been facing significant

Mining

The Chamber of Mines has welcomed the removal of some of the provisions of SI 90 relating to claim of VAT on imported spare parts and lubricants and the suspension of import duties on the importation of concentrates in the mining sector aimed at combating the effects of COVID-19.

Finance Minister Dr. Bwalya Nga’ndu had on March 27 2020, announced that in order to relief businesses in the wake of the COVID – 19 outbreak, government will remove provisions of SI 90 relating to claim of VAT on imported spare parts, lubricants and stationery to ease pressure on companies.

Government further suspended import duties on the importation of concentrates in the mining sector to ease pressure on the sector and also suspend export duty on precious metals and crocodile skin.

And the mining Chamber’s Chief Executive Officer Sokwani Chilembo told the Zambian Business Times – ZBT that the pronouncement by Finance Minister is a first step in the direction that must lead to a broader relief package similar to that being deployed by other countries facing the Coronavirus pandemic.

Sokwani added that the removal of SI 90 VAT claim limits needs to include Fuel and power in light of unforeseen expenditures on COVID -19 health measures and the reduced revenues due to the copper price drop.

He further said the smelting and refining businesses that are still operating do hope to benefit from bringing the smelting and refining revenue streams back on line though at a low margin.

“The core local mining and processing that makes up the bulk of the industry will still need more relief to deal with the numerous unforeseen COVID – 19 related challenges,” He added

The Chamber has since submitted a range of administrative measure proposals to help ease up enough cash flow to deal with the COVID – 19 emergency and a range of secondary tax relief measures to indirectly stimulate the industry via it becoming able to afford the cost of capital to sustain operations going forward.

He disclosed that the measures include Mineral Royalty Rate and deductibility relief, the start of VAT refunds by offset, reduction of duties on capital equipment and restoration of capital allowances to 100%.

“However we are confident that with the above measures in place, COVID – 19 related production loss and price erosion can be at least partially ameliorated with multilateral and cooperating partner assistance to government until the pandemic abates,” He added.

The Zambian government however has to walk a tight rope on these tax and non tax incentives being sought as the government also requires revenue to fund public services such as education, health and its massive transport infrastructure investments.

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The Chamber of Mines has welcomed the

Markets

Coronavirus has further extended its impact to the street vendors, as the Lusaka Mayor has announced a ban on the petty trader and hawkers who make ends-meat by selling their merchandise on the streets of Lusaka.

Lusaka Mayor Miles Sampa, revealed in a statement to Zambian Business times-ZBT, on March 31,2020, that effective 1st April 2020 Lusaka City Council (LCC) will not allow street vending in the Central Business District (CBD) in the quest to fight the spread of Coronavirus in the city.

Sampa said this includes Simon Mwewa Lane and Lumumba filter Lane which were late last year designated for street vending. He has since directed all vendors to go back to the established markets dotted around the city where they can access hand-washing facilities, which the council has provided, and observe social distancing.

“Our records indicate that all markets in the city have vacant stands or trading spaces to accommodate applicants from the street vendors. The decision comes in the wake of the increasing number of confirmed cases of Coronavirus in the country and in line with Statutory Instrument No. 21 and 22 of 2020, which among other things has restricted mass public gatherings,” he said.

Sampa explained that the council has observed that it is practically difficult to provide hand-washing facilities in the streets and make vendors observe social distancing of at least one meter apart. He added that the fight against the spread of Coronavirus needs a holistic approach if it is to be won.

“LCC together with its stakeholders are doing everything possible within their means to provide hand washing facilities, conduct sensitizations and make marketeers observe social distancing but the same cannot be done to street vendors. To this end, LCC has procured 300 liters capacity hand-washing facilities to be placed in markets and bus stations and enough chemicals to disinfect the establishments,’’ said Sampa.

He further warned that Vendors who will not abide by the directive will be met with the full force of the combined team of state and council police officers. He said street vending also humpers LCC’s efforts to keep the city clean thereby risking the lives of all residents. He said the Council hopes the vendors and other stakeholder such as vendor’s associations will support the move to avoid the spread of Coronavirus.

The banning of street vending though not well received by the vendors themselves is to be extended to the second and third largest cities by population of Kitwe and Ndola. Some sections of society have however challenged the local authorities to be sincere and state if the markets can in reality enable social distancing.

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Coronavirus has further extended its impact to

Companies

Absa Bank Zambia has announced that it has reopened its Centro Mall Branch located in Lusaka high end Kabulonga area following approval received from the Ministry of Health.

The branch had closed temporarily on the 25 march 2020 as part of the bank’s health and safety procedures in response to the COVID-19 guidelines provided by the health authorities.

As part of the reopening procedure, the bank has ensured that the centro mall branch was deep cleaned during the closure period adding that the bank has deployed a new team to serve customers while the members of staff who normally operate from the branch remain in self–isolation and observation as per the ministry of health guidelines.

Commenting on the branch re-opening, Absa bank Zambia plc Managing Director, Mizinga Melu thanked its customers and the members of the public for their tremendous support during this period.

She told the Zambian Business Times – ZBT on April 3, 2020, that Absa bank further reassures its customers that it remains committed to providing best-in-class banking services in environments that customers will feel comfortable to transact in.

And Absa Zambia retail Director Harton Maliki said that “The safety of our customers and employees is of paramount importance to us. As a bank, we are doing everything possible to mitigate any potential impact across our network in all 10 provinces”

The retail directed stated that “Absa has implemented a number of proactive initiatives such as the deployment of hand sanitisers across our branches and ATM locations, enhanced daily deep cleaning of our premises, placement of social distancing stickers in branches and ATM sites, as well as provision of gloves and masks for our frontline staff”.

Maliki further reminded customers that Absa bank has many digital channels available 24/7 (online banking, mobile banking and the Absa app) which means that customers can do their banking without ever having to leave the safety and convenience of their own home.

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Absa Bank Zambia has announced that it

Mining

Zambia’s largest copper miner, First Quantum Minerals – FQM has not shut down its operations but intensified its preventive measures against coronavirus – COVID 19, allaying fears that Zambias economy would ground to a total shut down.

Copper exports account for over 70% of Zambia’s exports and foreign exchange earnings and the mining industry’s impact on the economy remains pervasive. The other key foreign exchange earner – International tourism has come to a halt on COVID 19 travel restrictions and health threats.

FQM which two large scale copper mines at Kalumbila and Kansanshi has confirmed that the global pandemic of COVID-19 has had immediate [negative] effects on the mining industry leading to a drop in metal prices on London Metal Exchange as mines across the world shut down while others go on care and maintenance.

FQM Country Manger Kingsley Chinkuli has told the Zambian Business Times – ZBT that operations at FQM have been affected as the closure of borders has affected inflows of inputs to mine operations and outflows of metal to the markets.

He told ZBT that despite the threats of COVID-19 on the mining operations, FQM has not shut its operations as it will continue to tighten internal employee safety and health measures and adhere to Ministry of Health guidelines and directives on the pandemic.

When asked to estimate how much the mine has lost in revenues and monetary terms during this COVID 19 pandemic time, Chinkuli could not disclose the exact figures saying the mines are still in operation hence not possible to determine the exact extent at this stage.

“Aside FQM, other mines have been affected leading to the closure of operations or simply sending their work force away on forced leave till the pandemic eases, however, we just hope that the situation stabilizes going forward as we continue to implement the measures which have been guided by the authorities,” He added.

FQM production numbers announced on 6 January 2020 made available to the Zambian Business Times – ZBT, the North Western Province based copper mines at Kansanshi and Kalumbila Sentinel recorded a slight drop in copper production with annual 2019 total production of 452,000 tones compared with 476,000 tones in 2018.

Kansanshi recorded reduced annual copper production of 232,000 tones in 2019 while its production in 2018 was 252,000 tones, a reduction of about 20,000 tones in one year. Kalumbila Sentinel posted an annual production of 220,000 in 2019, compared to 224,000 in 2018, a minimal reduction of 4,000 tones.

FQM President Clive Newell at the time attributed the 20,000 tones drop at Kansanshi to lower ore grades. He stated that “Kansanshi copper production for the fourth quarter was in line with the comparable period of 2018 though, as noted in Q2 and Q3 2019, lower oxide ore grades and resulting recoveries contributed to lower copper production for the year compared with 2018”.

Kalumbila Sentinel copper production for the fourth quarter also reflected lower feed grades and lower recoveries due to transitional ore mined from the east cutback of the pit which resulted in lower production compared with the comparable period of 2018.

Zambia is Africa’s second largest copper producer from the Democratic Republic of Congo – DRC but the country boasts of having what has been described as the higher grade ores and sits on a rich copper vein that cuts across the Copperbelt region.

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Zambia’s largest copper miner, First Quantum Minerals

Mining

Kalumbila Minerals Limited (KML), a subsidiary of copper mining giant, First Quantum Minerals (FQM), has pledged to donate more than K600,000 (about US$33,000) of supplies towards efforts to combat the COVID-19 pandemic.

KML Assistant General Manager Junior Keyser said as a member of the Zambian community, the mine, will work hand-in-hand with district leadership in the fight against the virus.

“I wish to assure you that we are together as a mine in the fight against the COVID-19 pandemic and shall provide the necessary health support that shall fall within our means, as and when need to arise. Our earnest hope is to see our country Zambia, walk through these hard times with manageable social and economic impact,” said Keyser.

The mining company’s pledge of K620,201 accounts for half of Kalumbila’s District Epidemic Preparedness and Response budget of K1,240,402.

He explained that the mine’s decision to donate in-kind was motivated by stringent internal corporate auditing procedures.

In a statement made available to the Zambian Business Times – ZBT on April 3, 2020, Keyser added that the pledged donation shall be made accessible through its Trident Foundation community development arm with immediate effect.

“As part of this pledge, we also offer access to our logistics and procurement systems to assist with mobilisation of the required materials,” said the Assistant Manager.

In the meantime, the mining company is providing numerous support services in its host community, including sensitisations support in 12 communities, provision of fuel for contact tracing and provision of transportation of test samples to Zambias capital, Lusaka, for analysis.

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Kalumbila Minerals Limited (KML), a subsidiary of

Markets

The Zambian currency, the Kwacha, has continued to come under severe pressure, recording a steep depreciation rate against the US dollar and other major convertible currencies leading to imported inflation and wiping out of value of savings and purchasing power of individuals and businesses.

Since the beginning of the second quarter of 2019, the Kwacha has weakened considerably to an average now (April 2020) crossing the K19 per 1 US dollar mark. At the beginning of 2020, the Kwacha had experienced notable pressure and was weakened by a relatively minimal percentage and was then trading at an average of about K14 per 1 US dollar.

According to the Central Bank’s (BOZ), Zambia employs a free market regime and that forces of demand and supply largely determine how the Kwacha trades against the convertible international currencies.

But analysts are now wondering whether the current state and impact of COVID has any essence of a free market economy to warrant BOZ to continue to hold on to its free market mantra? As things stand, the COVID 19 economic scenario can only be compared to “world war time scenario” in terms of the current state of global trade, travel, health and other financial and economic constraints being experienced.

To get views on how the market is keeping up, the Zambian Business Times – ZBT Contacted ZANACO head of economic research Dr. Patrick Chileshe, who attributed the recent depreciation of Kwacha to the weak external sector such as a fall in copper prices on the international market and the recent outbreak of COVID-19 globally as being among the major contributors to the current depreciation which some analysts have described as free fall.

Dr. Chileshe told ZBT in an exclusive interview that in the recent past copper prices on the market [London Metal Exchange] have dropped to below US$5,000 per metric tonne hence affecting the county’s foreign exchange earnings from copper.

He added that COVID-19 threats are also expected to dwindle the country’s economy further especially the mining industry as it has already showed negative impacts on commodity prices of all minerals on the market.

“Secondly, our inflows of foreign currencies are limited, our [Zambias] value of exports have been going down because of declining copper prices as well as production within the country which has been hit by a number of factors such as the shutdown of Mopani smelter which was under repair, the issues between ZCCM-IH and KCM, and the issues of import duty on copper concentrates from Congo DRC,” He said.

Dr. Chileshe has since advised members of the public to keep enough savings that can last them through the period of COVID -19 to avoid being under “a financial lock down” adding that the current situation has not only become a threat to the country’s economy but also affected people’s movements.

Zambia’s US dollar inflows through mineral royalties, considered to be a major source of forex for the treasury, is expected to significantly drop following the drop in copper prices globally. Minister of Finance Dr. Bwalya N’gandu recently announced the scraping of the copper concentrate import duty to shore up Zambian installed smelters output, but it remains to be seen with the global impact of COVID 19 if this move will bear results.

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The Zambian currency, the Kwacha, has continued

Lifestyle

The Water Resources Management Authority – WARMA has pledged to supplement the central government’s efforts in curbing the Corona Virus (COVID-19) threat through implementing and disseminating life-serving and preventive information to its personnel and the general public as approved by the Ministry of Health.

The Authority has to this effect identified essential staff that have remained on duty has it continues to fight vigorously to contain the spread of covid-19 in Zambia.

In a statement made available to the Zambian Business Times – ZBT on March 27, 2020, WARMA Public Relations Officer Joshua Kapila disclosed that the Authority has further identified non-essential staff who are reporting on duty only on a rational basis adding that other staff that shall work from home during the pandemic through the use of Microsoft Teams technology.

WARMA is currently working on modalities to send staff on paid leave in line with the Employment Code of 2019, in emphasis to keep staff safe from the vulnerabilities that Covid-19 poses.

Kapila also noted the need by all its clients to take advantage of its on-line services such as registrations and other services found on the Authority’s website.

He further disclosed that WARMA is providing hand sanitisers and washing basins for both its employees and clients, from the security point of entry to the premises, the reception, rest rooms and all offices to ensure that the working environment at the WARMA HOUSE is in line with the guidelines as stipulated by the Ministry of Health.

“We are therefore calling upon all stakeholders and the general public to emulate Government’s initiatives by implementing necessary measures that will ensure continued productivity, in ways that do not endanger the much-treasured lives of Zambians,” He added.

The Authority is further appealing to each citizen to play their respective rightful role in containing the spread of covid-19 in Zambia, by adhering to the measures which were outlined on 26th March 2020, by President Lungu during his national address on COVID-19.

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The Water Resources Management Authority – WARMA