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Maamba Collieries Ltd (MCL), the largest thermal power producer in Zambia has scaled-up efforts to stop the spread of COVID-19, by implementing stringent preventive safety measures.

Maamba Collieries Manager Yotham Phiri said MCL is treating the global pandemic with utmost seriousness, and taking all measures to ensure the health and safety of its staff, while also sensitising the community.

“We are alive to the gravity of the situation and are taking every possible precaution to prevent the COVID-19 infecting our people. Measures we have implemented include daily fumigation of all MCL buildings, equipment and vehicles to minimise contamination, as well as stopping all visitors. Our safety team is working hard to ensure every entry point to the mine and all buildings have sanitising equipment for our staff to use.” He said

And HR and Administration Manager Bwali Ndau highlighted measures to minimise person-to-person contact and ensuring social distancing and personal hygiene have been put in place.

In a statement made available to the Zamvian Business Times – ZBT on April 7, 2020 MCL has advised all employees who had travelled abroad on vacation, not to return to Zambia or if they return, to adhere to strict health guidelines and has stopped non-essential travel within the country, until the situation returns to normal.

MCL interventions against COVID-19 have also extended to the sensitisation of the local community, special sessions for school children on hygiene, helping the community with materials to ensure hygiene, as well as donating a critical care ventilator for treatment of infected personnel.

Meanwhile, in support of the request of the Sinazongwe Council, MCL has donated the much-need materials for the COVID-19 Isolation Site – including N95 masks, disposable overalls, gumboots, gloves as well as hand-washing facilities and personal hygiene items including liquid hand wash soap, detergent and much-needed fuel for vehicles.

Maamba Collieries is a key player in Zambia’s energy sector feeding 300MW into the national grid. Since the start of COVID-19 pandemic, MCL has ensured it remains at the forefront in the fight against the deadly virus in the country, through a strong demonstration of commitment to stringent safet

Maamba Collieries Ltd (MCL), the largest thermal

Following government’s closure of all learning institutions due to the global COVID – 19 pandemic, the University of Zambia – UNZA has resolved to conduct all teaching and learning activities through online and through e-learning platforms.

In this regard, the University has rolled out a fully-fledged online e-learning system for all University programmes using Moodle and Astria platforms. UNZA Registrar Sitali Wamundila confirmed in a statement made available to the Zambian Business Times – ZBT on April 7, 2020 that the e-learning platforms are ready for access by both students and staff.

He added that Staff and Students have since be informed that learning and teaching activities in all programmes and courses will commence on Tuesday, 14 April 2020.

“Students are therefore reminded that only those that are registered will be able to access the e-learning materials and other online services. It must also be noted that registration remains open and students are encouraged to pay their fees,” He added.

UNZA has since encouraged all mobile telecommunication service providers and internet service providers – ISPs to introduce special internet access plans or packages to reduce on costs associated with internet use and ensure universal access to internet for all students and staff.

Wamundila is also encouraging all students to acquaint themselves with the programmes and courses before classes commence on April 14, 2020 adding that all self-taught materials have been uploaded on the plartforms for an easier experience.

Meanwhile, the University was reported to have started carrying out research with the National Institute for Scientific and Industrial Research – NISIR to find a vaccine or cure for COVID – 19 under the K57 million contingency fund.

According to information obtained by ZBT, Minister of Higher Education Dr. Brian Mushimba disclosed that UNZA in conjunction with NISIR is collecting samples to understand the deadly pandemic and urged other institutions to emulate the gesture.

But when reached for a comment, UNZA researcher in the department of natural sciences Dr. Edgar Simulundu said the University has not yet received instructions or modalities on how the research will be conducted as no group has been selected to take up the study, hence no studies have been initiated or done in relation to COVID – 19.

He added that provided government gives modalities on how the study will be conducted, the institution is ready to collaborate with other institutions to study COVID – 19 with the aim of finding solutions on how to combat the pandemic.

Most learning institutions and schools in Zambia have resigned to fate, waiting for the end of the COVID 19 pandemic to resume classes. But some international schools, private schools and universities have only migrated from physical classrooms to online, avoiding the disruptions to the academic and teaching programs.

With the exception of rural based schools, modern technology offers the ability for switching from face to face to online learning methods seamlessly. But even rural based students and teachers should not be left out, solutions can be found.

Moreover, the Zambian government had embarked on putting up communication towers across the country to ensure universal access to data and internet services and this COVID 19 pandemic perhaps offers a silver lining for the ministries of communication and education to come up with methods to open schools and deliver lessons online.

Following government's closure of all learning institutions

The Public Service Pensions Fund – PSPF has received K1.1 billion from the Ministry of finance to reduce outstanding arrears owed to pensioners and retirees.

Minister of Finance Dr. Bwalya Ngandu had late last month announced that government will release funding to reduce outstanding arrears owed to pensioners under the PSPF and retirees under the Ministry of Justice.

PSPF Chief Executive Office Patrick Bobo confirmed to the Zambian Business Times – ZBT that funds have been received and a total of 1,541 clients are expected to be cleared from this account or tranche of funds.

He added that K250 million will be allocated to 1,032 early retirement clients while another K250 million will be allocated to 509 statutory retirement clients bringing the total amount to K500 million for all 1,541 retirees and pensioners.

Bobo explained that early retirements are an obligation of government, therefore sends grants to meet lumpsum payments while statutory retirements are an obligation of the fund hence the contributions and investments returns are used to clear statutory retirements.

“So far this year K51 million was paid to retirees to clear lumpsum benefits before we received government funding. The fund pays about 60,000 pensioners and beneficiaries monthly annuity amounting to about K47 million per month using contributions and investment returns,” He added.

When asked on the remaining backlog after this tranche is cleared, Bobo disclose to ZBT that after all retirees are cleared, the fund’s backlog for early retirees is 554 amounting to K546 million while for statutory retirees is 235 amounting to K299 million.

He added that the board has allocated a further K315 million from fixed income Securities to clear more statutory retirees adding that the fund will be paid when the investment matures.

When asked about the key challenges the fund experiences which delays the paying off of retirees immediately upon retirement, Bobo explained that the formulae used to calculate benefits is among the factors as benefits tend to be more than contributions.

In addition, he said closure of the scheme to entrants has greatly affected the fund as well rules embedded in the Public Service Pensions – PSP Act, making it difficult to change Article 189 (use of final salary in computing benefits) and Article 187 of the Constitution which does not allow the fund to make any changes to the benefit formula for existing members.

The release of funds will also aid to ease market liquidity which has come under pressure from the increased arrears for local contractors and government suppliers. The Minister of Finance has also indicated that more funds will be paid out for local road contractors and government suppliers, after the verification exercise and confirmation of work done is completed.

The Public Service Pensions Fund - PSPF

The Rural Electrification Authority – REA has announced that plans are underway to pilot the generation of power from the solar milling plants implementations this year as soon as COVID 19 situation stabilizes.

The Authority has partnered with Zambia Corporative Federation – ZCF to build power networks around the solar milling plants in rural areas which have been discovered to produce excess power over and above that which is needed for the current installed milling plants.

REA Corporate Affairs Manager Justine Mukosa told the Zambian Business Times – ZBT in an exclusive interview on April 06, 2020 that close to 1,600 milling plants under ZCF which use solar for power across the country have been earmarked for this project as the authority is currently doing scoping works and then later start piloting in Chongwe before scaling to all the milling plant sites.

In December 2019, an agreement between REA and ZCF valid for five years was signed were REA was to tap for electricity from the close to 1,600 solar milling plants ZCF had installed which generate up to 15kw of electricity per plant.

The installed milling plants only utilizes 7.5 kw, which therefore leaves 7.5kw unutilized, which translates to about 12 megawatts of unutilized electricity across the country. This agreement will enable REA to tap into this extra power resource to provide electricity to the communities where the solar milling plants are located, which are mostly in rural areas.

When asked how much the entire project will cost, Mukosa could not disclose the exact amount yet stating that the authority will only determine how much the project will cost once piloting begins and is completed this year.

“A lot of our projects are on hold because of the current situation in the country as we have also suspended works to avoid further spread of the virus, therefore once the situation gets back to normal we will resumes our works and suspended projects will begin running “ He added.

Meanwhile, REA is re-affirmed that its completed works at its mini- hydro power  project in Mwinilunga district of North Western Province worth over US$8.6 million under the authority’s grid extension project for rural areas is just awaiting official commissioning.

According to the budget release report for March 2020 from the Ministry of Finance, about K22.5 million was allocated to electricity infrastructure development in rural areas though REA and the authority has confirmed that part of its allocation was used to complete projects such as the above that began in 2018.

Mukosa told ZBT that the mini – hydro project in Mwinilunga district was set to be officially commissioned early this year but this has since been pushed forward to a later date due to the COVID – 19 situation.

The Rural Electrification Authority - REA has

The National Road Fund Agency – NRFA has projected a reduction in the collection of toll fees across the country for the year 2020 in view of the COVID – 19 pandemic. Toll fees have of late become a key revenue line for the Zambian treasury as a non-tax revenue.

NRFA Public Relations Manager Alphonsius Hamachila told the Zambian Business Times – ZBT in an exclusive interview on April 06, 2020 that the agency will not be able to meet its target of K1.6 billion this year attributing the decrease to the low traffic volumes so far recorded in the period of COVID – 19 across the country.

He added that the current health guidelines call for people to stay home. Truckers, motorists and travelers in general have been confined to staying home to curb the spread of the coronavirus, hence this will have a negative impact on the collection of tolls.

Hamachila said despite the move impacting negatively on the country’s revenue generation, it is a necessary requirement in mitigation further spread of COVID 19 adding that if the situation is left unattended to, it would further affect public health and weaken the country’s economy.

He further explained that the agency will give its revised projected revenue for this year after taking COVID – 19 impact into consideration, and that a reduction in toll fee collections is likely to be recorded.

“Right now, we can’t give accurate figures of how much we project to collect because it’s not yet clear on how long COVID – 19 situation will last. But what is clear is that it has negatively affected our ability to meet the target for this year and if the situation persists, the agency may project a further reduction in its revenues for 2020, however a full assessment will be conducted post this situation“ he added.

Hamachila also disclosed that the agency has plans to roll out new toll gates across the country after the COVID – 19 situation stabilizes. “For our 2020 work plan, we intend to put up toll gates in different places which include Mansa – Samfya road, Zimba – Livingstone road, Kapiri – Mkushi road, Petauke – Katete road and Nyimba – Petauke road,” he added.

Meanwhile, the agency had for the year 2019 collected over K1.2 billion in toll fees surpassing the initial target of K1 billion for the year 2019. The increase in toll gates collections was attributed to additional toll gates in the country bringing the total number to about 24.

The National Road Fund Agency - NRFA

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.

The Road Development Agency - RDA has

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.

The Zambia Chamber of Small and Medium

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.

The Zambian economy has been facing significant

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.

The Chamber of Mines has welcomed the

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.

Coronavirus has further extended its impact to