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Zambia’s Finance Minister Dr. Bwalya N’gandu has outlined government’s financial and fiscal measures meant to aid the country as it goes through the heavy impact of the coronavirus – COVID 19 global epidemic.

Dr. N’gandu stated that these are initial measures and that follow through actions will be announced in due course as the health and economic environmental effects unfolds. The briefing was attended by the Zambian Business Times – ZBT. Below are the measures implemented to mitigate the impact of COVID-19.

The finance minister echoed President Lungu’s 7 point plan to combat the spread of covid-19, and that the finance ministry working with other ministries has taken the following measures:

1, Set up an epidemic preparedness fund under the ministry of health amounting to k57 million;
2, Cabinet approved a covid-19 contingency and response plan with a budget of k659 million under the disaster management and mitigation unit;
3, The government has started mobilizing funds through the budget and engagement with various local and international stakeholders.
4, Government is in the process of making applications to multilateral partner and lender organizations for covid-19 support. As announced, the international monetary fund is making available a total of $50 billion to affected countries via rapid disbursing emergency facilities while the world bank group has approved support of up to $14 billion under a fast track covid-19 facility.
5, To support the easing of liquidity in the face of the adverse effects of covid-19, Dr.N’gandu stated that government will release K2.5 billion to:
Reduce domestic arrears owed to domestic suppliers of goods and services;
Reduce outstanding arrears to pensioners under public service pension fund and retirees under ministry of justice; and
Reduce outstanding third-party arrears and other employee related commitments.
In addition, k140 million will be released to pay local contractors in the road sector.

ZBT will give more details on the effects of some of the key proposed actions that included changes in tax rates and other fiscal measures. Missing conspicuously was the Bank of Zambia governor who also needs put on the table some immediate actions under monetary policy.

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Zambia’s Finance Minister Dr. Bwalya N’gandu has

Lifestyle

Following the continued spread of COVID-19 in some parts of the country, government is through the Ministry of Community Development and Social Services embarking on an exercise of relocating streets kids across the country to orphanages and health care homes.

The mobilization programme which is set to begin on March 27, 2020 is among the measures of mitigating the spread of the Coronavirus as cases in the country have risen to 16 as of March 26, 2020, confirmed by the Minister of Health Dr. Chitalu Chilufya.

Speaking at a joint media briefing in Lusaka on March 26, 2020, attended by the Zambian Business Times – ZBT, Minister of Community Development and Social Services Kampamba Mulenga-Chewe explained that the programme is meant to protect and safeguard the vulnerable across the country in the current crisis of COVID-19.

She said some vulnerable individuals such as the old aged will be directed to go back to their homes and will be provided with food supplies to be distributed in communities in order to keep them off the streets.

Mulenga-Chewe further confirmed that a team of social workers are currently on the ground to sensitize the public on the threats of COVID-19 and advise them on the preventive measures to be undertaken in their homes to curb the virus.

She added that the Ministry of Finance has provided funds which will be disbursed under the social cash transfer to help the vulnerable stay home without having them get back on the streets.

“We have over 635,000 beneficiaries under the social cash transfer scheme across the country and the monies to be released will help us provide food supplies which will be disbursed to their homes. This exercise will be done across the country starting with Lusaka on March 27, 2020 and will move to the copperbelt and then all other promises,” She said.

A survey conducted by the Ministry of Sport, Youth and Child Development indicates that Zambia has over 900 kids begging on streets with 360 in Lusaka, 320 in Kitwe and 250 in Ndola on the Copperbelt.

Speaking at the same media briefing Minister of Sport, Youth and Child Development Emmanuel Mulenga said the ministry in conjunction with the Ministry of Community Development have identified centers where vulnerable street kids will be relocated to adding that those who will resort to going back on the streets will be arrested and legal litigation will follow.

He added that street kids who will be relocated from the streets to identified orphanages and health care homes will be provided with care takers and government will provide food and beddings to help protect the interest of a child.

Zambia’s major cities of Lusaka, Kitwe and Ndola have struggled with the problem of street kids. There was an initiative that proposed that the national service takes up the responsibility and accountability for ending the street kids matter, but this plan has not been fully implemented.

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Following the continued spread of COVID-19 in

Markets

Zambia has recorded a trade deficit of K119.5 million (about US$6.6 million) in February 2020, a reversal from a January 2020 trade surplus of K2,352 million.

The Zambia Statistics Agency told the Zambian Business Times – ZBT that exports declined by 6.5% to K7,829.1 million in February 2020, down from K8,375.0 million in January 2020, while imports increased by 32.0% to K7,948.6 million in February 2020, from K6,023.3 million in recorded in January 2020.

Zambia Statistics Agency Interim Statistician General Mulenga Musepa told ZBT in a an emailed statement on March 26, 2020, that the fall in exports was mainly attributed to a 9.4 decline to K5,626.0 million in traditional (copper and copper related products) exports earnings, while non copper exports rose by 1.8% to K2,203.2 million in February 2020.

Musepa explained that Copper export volumes during February 2020 fell by 11% to 64,000 metric tonnes. “The London Metal Exchange – LME copper prices declined by 6% to US$5,686 per metric tonne in February 2020. During February 2020, Agricultural traditional exports increased by 21% while non-traditional Agricultural exports (Agro NTEs) declined by 5%. Agricultural traditional for Zambia exports include Tobacco, Sugar, and Soyabean products while non traditional exports mainly include Emeralds, Sulphuric Acid and Cement,” he said.

He said higher import bills mainly driven by the increase in imports for consumer goods which accounted for 58% while capital goods accounted for 25%. He explained that major export destination in February 2020 continued to be Switzerland at 40% followed by China at about 24% copper products. Switzerland is head office for Mopani copper mines parent company, Glencore were copper exports are booked.

The Congo DR was third accounting for about 15% of the total export earnings in copper concentrate. These three countries accounted for 78% of Zambia’s total export earnings.

On the Imports side, major source for February 2020 was China at 28% mainly for Machinery and construction equipment for various uses. This was followed by South Africa with about 25% which is mainly composed of consumer goods and then the UAE accounting for about 14%. The gulf region is the main source for crude oil for Zambia, and these three countries accounted for 67% of Zambia’s total imports”, he added.

Zambia risks running a steep trade deficit as copper demand and prices have been negatively affected by the global covid 19 outbreak. The flip side though is that imports are also expected to drop as South Africa, who are the largest consumer goods exporter to Zambia have put in place a lockdown which has slowed down cargo and people movement.

Chinese exports to Zambia for machinery and construction equipment is also expected to slowed down, together with crude oil imports as the Zambian economy is also slowing down on COVID 19 health measures being implemented.

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Zambia has recorded a trade deficit of

Lifestyle

Following the continued rise in the number of coronavirus – COVID 19 cases across the globe, with Zambia recording a rise from initially 3 cases to 12 and now 16 cases, with medical experts advising travel restrictions and visits to public places, causing a low turnout in most restaurants and takeaways across the cities in the country.

COVID 19 has greatly affected the business of most fast foods outlets and traditional restaurants who have continued to record a slow down in revenue. A quick check by Zambian Business Times – ZBT, on March 25 2020, in some shopping malls and food takeaway outlets, places such as Manda Hill, Levy Junction and East Park Malls revealed a steep reduction of customers.

Very few customers were making their way into the malls to buy some foods and other items, as most people are staying away from public places.

ZBT managed to speak with one of the Debonairs outlets manager in Lusaka, who asked for his name to be withheld, who revealed that business has drastically gone down due to the COVID-19 outbreak. He said the company does not know what will happen next to the workers and their monthly pay as few customers are making their way to buy as well as make delivery orders for the foods.

He added that if the situation persists, Management will have no option but be forced to send workers home. He also encouraged people to make use of the online platforms and make more orders online to be delivered to their respective places.

“Business has gone down and I can admit, but we’re all hoping the situation normalizes in good time. The outbreak has truly hit hard on the fast food business but we are taking preventive health measures in all our outlets,’’ he said. Now the question is what will happen to the welfare of all these workers who risk to be sent home without pay, will their landlords understand and not demand the rentals? Obviously not!

Governments in most affected countries have announced a raft of measures to help keep the economy afloat. Some measures include stimulus packages in the case of the USA to help citizens to survive during the time it will take for the pandemic to subside.

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Following the continued rise in the number

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Zambia’s tourism sector has not been spared from the effects of COVID-19 as the country has recorded a total loss in revenues of about US$7 million (US$6,990,106) representing a reduction of 21% in the short time that COVID 19 effects have spread to the country.

Minister of Tourism Ronald Chitotela disclosed to the Zambian Business Times – ZBT during a joint media briefing in Lusaka on March 26, 2020, that the losses are as a result of the cancelation of tourists arrivals and bookings into the country on threats of COVID-19 who later demanded to be paid back their monies after making bookings.

Eastern province has recorded a reduction in revenues amounting to US$3,591,793 followed by Southern province with US$1,991,117, Lusaka province US$425,296, Western Province with US$140,000 and Central province which houses Kafue national park has recorded a loss of US$600,000.

Chitotela added that the losses have a huge impact on governments treasury as the monies that were paid in advance were utilized for other needs such as preparations for hosting these tourists, hence paying back tourists is a major a drawback.

“The region that has been hit the most is the Eastern province which comes with the South Luangwa national park Safari packages, this has an effect on our treasury because some of these monies were paid in advance and the owners are demanding a repayment,” He said.

The minister has since urged citizens and tourists to stick to the “Stay home and travel tomorrow” theme for the safety of others and mitigate the spread of COVID-19. He added that individuals should only travel where necessary by complying with public health authority guidelines.

Meanwhile, President Edgar Lungu had on March 25, 2020 announced a suspension of all international flights from Harry Mwaanga Nkumbula and Simon Mwansa Kapwepwe international airports stating that all flights coming into the country should land and depart only from Kenneth Kaunda Airport in Lusaka city to ensure efficient and effective screening of travelers.

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Zambia’s tourism sector has not been spared

Markets

The annual overall inflation rate for the month of March 2020 has increased to 14 %, up from 13.9 % reported in the previous month. This development was mainly on an account of price increases in nonfood items such as vehicles, and airfares, that culminated into nonfood inflation increasing to 12%, up from 11.6 % in February 2020. The Zambia Statistic Agency have Reported.

During the monthly briefing monitored by Zambian Business Times-ZBT, on March 26, 2020, Zambia Statistic Agency Interim Statistician General Mulenga Musepa said that on the positive side the country recorded an annual food inflation for the month slowing down to 15.2% from 15.9% in February 2020.

He said this, was explained by a slow down inflation related to items such as roller meal, maize grain, rice, fish, and vegetables. He added that with respect to the monthly inflation the country is reporting positive developments as the month on month inflation slowed down to 1.2% from 1.9% in the previous month and both monthly food and nonfood inflation contributed to the slowdown of the overall monthly inflation.

‘‘The monthly food inflation in the month under review, declined to 1.2% from 1.3% in February 2020. Further the nonfood inflation declined to 1.2% from 2.7% in February. These developments, were driven by the general price movements of fruits, vegetables and the clothing materials.

‘‘We also do segregate the overall inflation for the month, according to regions, so during the month of March, Lusaka Province recorded a highest annual inflation at 16.8% followed by Southern Province at 14.7 % and western province had a lowest annual rate of inflation at 9.4%. and from this developments Lusaka and Copperbelt had a highest influence on the overall inflation at 14% in March 2020, with lowest influence coming from North-western and Western provinces at 0.4% points,’’ said Musepa.

A review by analysts at ZBT shows that the non-food inflation items alluded to such as motor vehicles and airfares which contributed to the increased inflation rate related to US dollar denominated or imported items. These items are pegged in US dollars and their market prices have increased due to the Kwacha depreciation.

The Kwacha has continued to slide month on month with the exchange pair now crossing the K18 per 1 US dollar levels. ZBT has reached out to the Bank of Zambia – BOZ to state what action is being taken to stem the further Kwacha slide, and responses are delayed due to some internal sensitivities of the matter.

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The annual overall inflation rate for the

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As Zambia and the rest of the World battles with the Coronavirus outbreak, which has resulted into an indefinite closure of schools, parents have been advised to turn their homes into schools and help their children catch up with studies during the closure period.

National Action for Quality Education in Zambia (NAQEZ) has told the Zambian Business Times – ZBT in a statement on March 25, 2020, that parents should proactively seek to keep the school going children actively learning and change from the sad narrative which has existed that Zambian parents do not have time for their school going children.

NAQEZ Executive Director Aaron Chansa said it is high time Zambians began to buy more reading books and subscribing to online learning resources for their children than anything else.

“We want to see Zambian parents taking maximum interest in academic lives of their own children. Zambia shall never provide quality education if parents will shy away doing their part, they have a big and important role to play in education”, he said.

Chansa further said that it would be academically dangerous for any school going child to relax on studies during this indefinite closure period as the coronavirus will eventually vanish but exams will need to be written.

“Zambias future development heavily depends on young ones currently in schools and their good academic and learning inputs today, will pay off later at personal and national levels”, Chanda told ZBT.

Lastly but cardinal, NAQEZ strongly appeals to all learners in the country to help in the struggle against Coronavirus by staying away from crowds and washing their hands thoroughly with soap. We want all of them to go back to their respective schools in good health whenever the war against this disease will be over,’’ said Chansa.

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As Zambia and the rest of the

Lifestyle

The global impact of coronavirus (COVID-19) pandemic has continued to strike hard on most African economic sectors. Zambia has put in place several stringent measures on how to prevent the spread of the disease, with 12 cases recorded so far.

One of the measures was the indefinite closure of all schools and colleges across the country, but the impact of these preventive measures have economic ramifications. Already, the tourism industry has issued a notice to put non essential workers on unpaid leave to save their businesses from collapse.

On the education sector, the impact has also hit hard most especially on the private schools payrolls and how to financing it in this event we’re there is closure of schools. Most private schools in Zambia fully depend on the operational of the school to generate revenue to meet teachers salaries and other operational costs.

Private school owners have revealed that teachers may have to go without salaries should the situation take longer, because the schools depend on the tuition and other schools fees that come from learners parents and sponsors to pay their staff salaries.

In an exclusive interview with the Zambian Business Times-ZBT, Chalo Trust School Director, Jane Chileshe said that as long as parents do not pay the school fees for their children or wards, the school cannot afford to pay salaries to teachers.

“For us in the Private schools sector, money for salaries comes from the school fees, some parents pay monthly or have payment plans, so if no fees are paid, we don’t have adequate resources to pay our teachers as well, unfortunately we are not like in the United States of America – USA were some aid packages to the private sector have been announced”.

“Teachers are home right now, and there is no pay for them because there is nowhere to get the money from. Unless if we could get some loans from somewhere, then we can be able to give the teachers something to sustain them, but now we have nowhere to get money,’’ she said.

Mrs Chileshe further said it has been so rough on the side of income for the school and that most private schools are in the same shoes, such that the school is even failing to pay women operational cost such as Zesco bills.

“So we risk that Zesco will just come and shut down, because the closure of schools is indefinite it’s hard to even promise them that we will pay on this or that date, the COVID-19 impact is really so hard, we do not know when the situation will normalize,” added Mrs Chileshe.

Another Private School owner (Spring Way School), Mrs Euriver Mulamata told ZBT in another exclusive interview on March 25, 2020, that while it is a good move to close the schools in an effort to fight the deadly virus, it is unfortunate that the economy will suffer the worst consequences in terms of income to especially for private Schools.

‘‘For me all am praying for is that this situation gets to an end quickly before affecting the next pay day for our teachers, because for now we cannot comment on the way forward for the teachers, because it is too early and we don’t even know how long the shutdown of schools will take,’’ she said.

Ministry of Health announced the indefinite closure of all Schools, Colleges and Universities that was effective on March 20 2020, as part of strategy to halt the possible spread of the coronavirus – COVID 19, which has affected many countries across the globe.

Zambia has today recorded 12 confirmed cases as announced by the Head of State on 25 March 2020. This rise in cases may mean that the country needs more time to combat the spread. And more time means month ends will come and salaries will need to be paid.

Some sections of society have been calling for a complete lockdown of the country, closing down of all borders, but the flip side is that Zambia has limited reserves and savings to draw from. When the country boarders are shut, the wheels of commerce will grind to a halt and revenue collection by both the Zambia Revenue Authority – ZRA and other government non tax revenue collecting agents will slow down and dry up, which would compound the pandemic socio and economic impact.

Analysts at ZBT have called for balancing the actions for prevention CoVID 19 spread and the resulting socio-economic impacts so that the country can be able to find the delicate middle ground to go through what some have described as being likened to going through a world war 3.

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The global impact of coronavirus (COVID-19) pandemic

Lifestyle

The Absa group which has rebranded some of the former Barclays Bank units in Africa, has appointed a Zambian Banker Kenneth Mumba Kalifungwa as a new managing director – MD for Absa Bank Uganda.

The appointment of Kenneth Mumba Kalifungwa, a former executive director of finance at Absa bank in Botswana was occasioned by the departure of Nazim Mahmood. However, the Bank is confident that his appointment will drive Absa Group’s strategic objective of growing, stabilising and advancing financial systems in Uganda.

And Absa Bank Zambia Head of Marketing and Corporate Relations Mato Shimabale told the Zambian Business Times – ZBT on March 25, 2020, that Absa values global and cross-geographical exposure as much as it values the understanding of the local market hence has a clear imperative to operate as a truly African bank with global scalability, while prioritizing purposeful continental collaboration.

“We have no doubt that Mumba’s experience across several African markets, deep knowledge of the bank, as well as his demonstrated strategic and operational vision will be invaluable as Absa firms its position on the continent,” He told ZBT in an emailed response.

Shimabale added that Absa will benefit from Kalifungwa’s experience across several African markets, his deep knowledge of the bank and his demonstrated strategic and operational vision as the bank continue to drive its growth strategy in the markets it operates.

Kalifungwa is a Chartered Accountant and seasoned organisational leader having over 24 years post-qualifying experience across banking, public and private sectors. He is currently a fellow of the Chartered Institute of Management Accountants (CIMA), the Association of Chartered Certified Accountants (ACCA), Botswana Institute of Chartered Accountants (BICA) Zambia Institute of Chartered Accountants (ZICA).

Kalifungwa also holds an MBA from Herriot Watt University, Scotland and has attended various senior leadership development programs over the years.

Absa Zambia is headed by renowned Zambian female banker and business leader, Mizinga Melu. She has managed the Barclays to Absa rebranding in Zambia which has contributed to the Pan Africa re-branding of subsidiaries in seven African countries – Botswana, Ghana, Kenya, Mauritius, Seychelles, Tanzania and Zambia. Absa Group’s subsidiaries in Uganda and Mozambique were renamed in November 2019.

The bank has since termed this change a milestone that brings it closer to realising its ambition as a leading African bank to support growth and development on the continent and beyond. “We are now united under a single brand in 12 countries in Africa.

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The Absa group which has rebranded some

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Republican President Edgar Lungu has confirmed in his address to the nation that Zambia has of today March 25, 2020 recorded 12 cases of COVID – 19 from individuals travelled outside Zambia to countries with confirmed cases of COVID-19.

The President has in this vein suspended all international flights from Harry Mwaanga Nkumbula in Southern province, Mfuwe in Eastern province and Simon Mwansa Kapwepwe international airport on the Copperbelt, stating that all flights coming into the country should now land and depart only from Kenneth Kaunda International Airport in Lusaka to ensure efficient and effective screening of travelers.

The head of state has also directed Finance Minister Dr. Bwalya N’gandu to mobilise resources to enable both the public and private sectors and other stakeholders contain and combat the spread of COVID-19 in a coordinated manner.

Among other measures taken to prevent the impact of COVID – 19, include the closure of Bars, Night Clubs, Gyms, Cinemas and Casinos across the country effective March 26, 2020. He said social businesses dealing with goods and services will be kept running while restaurants will operate on a take away and delivery basis.

The country’s economy is threatened with the current crisis of COVID-19 hence at risk of closing its boarders if all its neighboring countries close their boarders.

The President has further warned the general public against unnecessary movements within the country as the current lifestyle of not avoiding social distance has high risks of spreading the virus to others quicker that it could be noticed.

He said all public gatherings, which include, funerals, weeding’s, conferences and festivals should be restricted to at least 50 people subject to them complying with public health authority guidelines.

Lungu has since pledged governments commitment to continue taking in place pro-active measures towards the fight against Coronavirus which become a global crisis. He has called on all Zambian to work together to fight this global pandemic

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Republican President Edgar Lungu has confirmed in