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Markets

As the effects of the global COVID 19 pandemic kicks in, with foreign and international travel and trade almost coming to a halt, economies around the world have now been forced to look to domestic and local investments to keep their economies afloat and the wheels of trade moving.

This pandemic has paralyzed international trade, sports businesses with all major sporting events being put off. When the Zambian Business Times – ZBT spoke to the Livingstone Tourism Association – LTA Chairman George Sikumba, he confirmed that the effects on tourism in so deep such that the industry is now digging deep to find ways to keep their operations running due to high incidents of cancellations.

The Zambian economy has heavily relied on foreign direct trade as the major source of investment into the economy, and hen fact that COVID 19 may take another three to six months at best to clear out, there is need to now focus on domestic trade and domestic investments.

And the Zambia Development Agency (ZDA) has to this effect announced that it has doubled its efforts in promoting domestic direct investment (DDI) and re-investment in the wake of COVID 19 which was declared a global emergency by the World Health Organization (WHO) on 31 January 2020.

ZDA told ZBT that most of Zambia’s FDI sources and export destinations for its copper and now other non traditional [non-copper] exports are affected by the Covid-19. Therefore, Zambia’s Trade and Investment figures have significantly declined in the last two weeks. These include Zambia’s top trading partners such as DR Congo, China, South Africa and the EU market.

A number of investor missions that were scheduled to come for fact-finding missions and explore the opportunities have been postponed or completely cancelled. Others were earmarked to come and actualize their investment pledges but because of the deadly Covid-19 all these activities have been put on hold.

In addition other trade and investment related meetings in Asia, Europe, Southern Africa and other regions have been postponed indefinitely. However, it is the hope of the Agency that COVID – 19 should be contained as quickly as possible so that trade and investment can get back to normal where investors and traders are able to move freely.

ZDA Public Relations Manager Faith Musonda told ZBT on March 22, 2020, that the Agency has continued to strategically focus on promoting DDI, re-investment and the growth of SMEs’ to minimize the economic impact of Covid19.

Musonda stated that considering the current global health pandemic, the Agency will intensify engagement with existing investors for business diversification and re-investment as they already have an appreciation of the Zambian business environment, policy framework and available incentives.

In 2019, of the total projected investments worth USD 12.6 billion, USD 3.3 billion was re-investment, representing 26 percent of the total investment recorded. This reaffirms the great potential within the country working with the already established investors to create wealth and employment.

Some notable re-investments last year included Trade Kings, Intercontinental and Protea hotels, National milling, Californian beverages and University of Lusaka among others. The Agency therefore encourages investors, exporters and MSMEs’ to continue engaging ZDA.

Analysts say a special and strategic focus on domestic investments and trade is what will keep economies afloat in the wake of COVID 19. The sanitizing of local trading facilities markets should not be taken lightly together with strict land and airport boarder controls to prevent the virus from ravaging the remaining engine for local trade.

Local entrepreneurs, local traders and local investors are the remaining engine for the economy that should now be safeguarded to ensure that life in Zambia does not get constrained that may result into economic ruin.

Zambia already has economic challenges from the persistent Kwacha depreciation, power rationing and youth under employment as the major ones. There is a saying that all great challenges have great opportunities hidden in them. This COVID 19 had a silver lining and all efforts should be made to find and leverage the opportunities hidden behind this pandemic.

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As the effects of the global COVID

Mining

The global outbreak of coronavirus 2019 – COVID 19 is threatening Zambia’s mining industry, which is the backbone of the Zambian economy. This is due to its impact on global supply chains, thereby dampening the demand of copper, Zambia’s major export.

Minister of Mines and Minerals Richard Musukwa has confirmed that the outbreak of COVID-19 in some countries across the world has negatively impacted commodity prices of all minerals on the market and affected Zambia’s copper mining Industry at large.

Speaking at a joint media briefing with the Ministry of Information and the Zambia Chamber of Mines – ZCM, the minister said in order to ensure the country’s mining industry survives, government in collaboration with key stakeholders in the mining sector will come up with interventions to ensure operations in the mines are sustained and peoples jobs are secured.

Musukwa disclosed that most inputs used in the mines, such as smelters, plants and spares parts are sourced from outside the country and the current situation of COVID-19 has made it difficult for materials to arrive on time hence affecting production.

He has since expressed optimism that going forward, the situation will stabilize with the measures to be put in place adding that the mining industry is too big to fail even in the current circumstances as it is a backbone of the country’s economy.

He added that the ministry has also spread awareness to employees in mines and has engaged the Chamber of Mines to take lead in combating the spread of COVID-19, alluding to the fact that mines have a robust health and safety departments across all operations hence the need to intensify surveillance to prevent the spread of the virus.

“We will also ensure there is public awareness in communities where mining takes place because we believe the infection rate can develop from the community and spread to the mines,” He said.

And the Zambia Chamber of Mines – ZCM president Talent Ngandwe expressed the chambers’ commitment in collaborating with government to provide measures that will control the spread of the virus and stabilize mining operations.

“We are all aware that international copper prices have been adversely affected and it is difficult for the mines to operate profitably when the commodity prices drop, hence, we will put in place measures that will avoid the further collapse of the industry and the economy as a whole,” He added.

According to spot cash prices on the London Metal Exchange, copper prices have dropped to about US$4,850 as at 20 March 2020, down from February spot prices of about US$5,750 per tone.

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The global outbreak of coronavirus 2019 -

Tech

TopStar Zambia has announced that it has for this Easter period reduced its decoder prices countrywide for both DTT and DTH which started on the 15th of March 2020. The reduction is by 25 to 35%.

“Tabweza” which has been translated to mean “ A reduction ” is here with an amazing price cut on both DTT as well as Combo decoders. All new decoder owners get to watch for free for one full Month

New customers across the country can now buy a combo decoder at an all-time 25% price discount of K299 from the old price K399 under “Tabweza”. This DTH full kit comes with Satellite Dish, HD enabled Decoder, Activated Smart Card, 20m cable and an LNB at only K299 + One month of free viewing.

The Digital Terrestrial package of the Decoder + Antenna also comes with 35% discount which is now priced at K129 from the old price K399. This is pre-loaded with One Month Free Subscription for subscribers to enjoy a unique TV experience.

In a statement made available to the Zambian Business Time – ZBT by Topstar Public Relations Officer Kunda Chisunga on March 20, 2020, TopStar is pleased to carry the newly introduced channels ESPN, ESPN2 and Nina Channels and the Public Signal Distributor is also contented to re-introduce Fox, Fox Life, National Geo-Wild and National Geographic channels.

And new customers are encouraged to bring their NRC and phone numbers for registration purposes. “Our Dealer network has been briefed fully on the new offer. These include, Pep Stores, Pick N Pay, Choppies, E-Plus, Radian Stores, Budget Stores plus many more dealers across the country.

Our Customer Care is available on a daily basis and can be reached by dialing 2000 on Airtel, MTN and Zamtel” Topstar.

TopStar is the home of a host Zambian local TV channels and it continues to bring the reality of Digital TV to thousands of TV viewers at an affordable price and with shows for all TV lovers: local drams, sports, current affairs, romance, drama, music and children’s shows

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TopStar Zambia has announced that it has

Lifestyle

It’s said that every problem has a hidden benefit or profit point, that every challenge has a silver lining, and this is what is now being witnessed in Zambian Business environment. It is a typical attempt which is normal in a free market economy by the business community to take advantage of the coronavirus – COVID 19 to profit from the upsurge and spike in demand for hygienic sanitizers.

Following the health guidelines both from the world health organization – WHO and the Zambian ministry of health, that all public places should provide hygienic sanitizer, in an effort to fight the spread of coronavirus COVID-19, this has driven up the demand to levels never seen before and most retailers have hiked the prices to cash in on the increased excessive demand for especially the hand sanitizers. But the Competition and Consumer Protection Commission has issued a warning that all businesses engaged in this practice will be identified and punished.

Like every spike in demand and the ensuing rise in prices that follows as if obeying the age old basic economic theory of the relationship between demand and supply, some retailers have taken advantage of the situation and are pricing the hand sanitizer products excessively, as Zambia is a free market economy with no price controls.

This has a negative consequence that needs to be balanced, and if this excessive pricing goes uncontrolled, the price of hand sanitizers and other needed hygienic products such as medicated soaps and hand washers are not balanced with the need for them to be available to most citizens, it will end up defeating the purpose of the health guidelines. It may become unaffordable to most households and small businesses who are in the majority.

And when the Zambian Business Times – ZBT contacted Competition and Consumer Protection Commission – CCPC, the commission stated that this trend of excessive price hikes for hygienic sanitizers should be stopped, warning all Business players to adhere to the laid down regulation and laws.

CCPC told ZBT that the commission has since warned business outlets against the act. They said from the preliminary investigations conducted by the commission, it has been noted that some deceitful traders across the country are taking advantage of the current situation to overcharge on sanitary products such as masks, gloves and hand sanitizers to the detriment of consumers and undermine the fight against COVID 19.

In an exclusive interview with Zambian Business Times-ZBT, on March 20 2020, CCPC public Relations Officer Rainford Mutabi, said the Commission is appealing to all business outlets to desist from charging unreasonably high prices as this is against the law and affects public health.

‘‘In view of the foregoing pandemic, the commission through its inspectors across the country will ensure that all individuals and companies exacerbating such conduct are identified and punished. Although hand sanitizers are one of the convenient products of maintaining hygiene during this pandemic, consumers advised to use other hygienic products such as anti-bacterial soap, which are readily available in most retail outlets around the country,’’ said Mutabi.

Meanwhile, Mutabi revealed in a statement issued on the same day, that consumers are advised to report any of the enterprises or traders engaged in such conduct of excessive pricing of hygienic sanitizers, masks etc to the commission to take necessary action using the commission’s toll-free phone line 5678 on all mobile networks or by email; zcomp@ccpc.org.zm.

“Consumers are further urged to ensure that they obtain receipts for all such transactions and the receipts should be kept safely and submitted to the commission as evidence for investigation purpose”

Finance Minister Bwalya N’gandu demonstrating that all should wash their hands to prevent spread of COVID 19

“CCPC is a Statutory body whose existence has been constituted under the Competition and Consumer Protection Act No. 24 of 2010 following the repeal and replacement of the Competition and Fair Trading Act, 1994,’’ he revealed. Mutabi said that the objective of the Act places responsibility on the Commission to safeguard and protect the consumers against unfair trade practices that includes affair pricing.

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It’s said that every problem has a

Companies

Minister of Local Government Charles Banda has announced that the commissioning date for the Makeni flyover bridge which is being constructed at a cost of US$13 million has been set for 14 April 2020.

Makeni flyover bridge is among the four fly over bridges being constructed in the greater city of Lusaka under the Lusaka decongestion project by an Indian Company, AFCONS infrastructure Ltd.

Government had in April 2019 contracted India’s Afcons ltd to construct filter-road and bridges in Lusaka to ease traffic congestions in the city. The traffic congestion in Lusaka had built up and led to city residents and commercial activities being hampered as more time was being spent in traffic than doing the actual work.

Some psychologists had even attributed the levels of stress and generally higher levels of frustrations that are expressed on various fora by some Lusaka residents as being attributed some extent, to burn out experienced when motorists and residents transit to and from home to work or business places.

Speaking when the local government minister toured the works at the Makeni flyover bridge on March 20, 2020, attended by the Zambian Business Times – ZBT, AFCONS project manager Subrata Brandyopahyay disclosed that the bridge is 95% complete and assured that it will be fully completed in the first week of April to leave room for the commissioning date, set for 14th April, 2020.

Subrata has since expressed optimism that the company will soon complete the remaining bridges in the city as works are going on smoothly with no challenges experienced and that no accidents have been recorded in terms of injuries or death among employees.

The Minister has in this vein commended the contractor for speeding up the works ahead of schedule and for the quality works demonstrated, saying it will go a long way in decongesting traffic in Lusaka and will add a lot to the beauty and quality of life to the city as far as modernization is concerned.

Banda further announced that the remaining bridges which are, Arcades flyover bridge, is planned to be commissioned in June this year 2020, while the Munali flyover bridge will be commissioned in September, also this year 2020 respectively.

“I would like to commend AFCONS for speeding up the works, this project was supposed to go as far as September next year but the contractor has put in a lot of efforts to ensure that they are ahead of schedule, which is almost a year ahead and this will give government a lot of time to plan for phase two because this is only phase one of the project,” He added.

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Minister of Local Government Charles Banda has

Agribusiness

Grain Traders Association of Zambia – GTAZ, a signatory to the tripartite agreement that involves the Food Reserve Agency – FRA and Miller Association of Zambia – MAZ has revealed that all millers party to the tripartite agreement will and should have a price tag of between K130 and K140 on the bag of mealie meal as retail price for a 25 kg.

GTAZ confirmed that an emergency meeting had been held following the reports of the skyrocketing price of the staple food, mealie meal in which some traders took advantage of the situation to repeat buy from the commodity and resell it at hiked prices.

In an exclusive interview with the Zambian Business Times-ZBT, GTAZ Executive Director Chambuleni Simwinga stated that the price should now be about K140 per 25 kg of breakfast Millie meal which had been re-affirmed after the meeting and that the benefiting millers will now be tagging a price tag on the bags to prevent the bulk buying and reselling practices which had been taken advantage of to create an artificial shortage of lower priced mealie meal.

When asked by ZBT to name the top five millers which members of the public can watch out for to secure the supply and pricing as per tripartite agreement, Simwinga named the top five millers who are party to the agreement who buy the largest quantity of subsidized maize as; Antelope Milling, FVG Milling, National Milling, Simba Milling and African Milling companies among others.

Simwinga said all the 38 millers who are party to the tripartite agreement should now put a price tag on the bags of mealie meal to avoid the retailers exploiting the program by pricing in their own interest. He said that this practice is workable and needs the supply chain to have specific onward agreements with retailers to ensure that agreed margins and final retail prices are maintain.

He confirmed that this agreement was arrived at, after the meeting held recently with the stakeholders. ‘‘How the tripartite agreement is working is that millers are getting maize from maize traders and then they show proof of purchase to FRA, then FRA is providing 37% of that quantity bought as subsidy, which should cushion the and average down the cost of maize that miller buy,’’ said Simwinga.

He further told ZBT that the price tag on the bags of mealie meal coupled with a monitoring system is only way the tripartite agreement will benefit the consumers who are the intended targets for the agreement. He called on all the millers to adhere to the directive and make sure that all the bags of mealie meal offloaded by all the 38 millers in Chain Stores and other distribution points across the country are priced appropriately with the price tag printed right from the factory.

A quick check in some Chain Stores by ZBT in Lusaka found some millers such as African Milling brand adhering to the contracted price as per tripartite agreement and consumers are purchasing the commodity at about K135 per 25kg bag of breakfast mealie meal and K125 for roller mealie meal respectively

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Grain Traders Association of Zambia - GTAZ,

Markets

The Lusaka City Council – LCC in conjunction with the Consumer Unity and Trust Society – CUTS have launched the “Lusaka Food Policy Council” an initiative which will provide a set of guidelines governing the food system in Lusaka.

To achieve this objective, CUTS and LCC have recognized the importance of engaging different stakeholders from the public and private sector who will take part in the Lusaka food distribution system.

Speaking at the launch of the food policy council in Lusaka in March 2020, LCC Town Clear Alex Mwansa had welcomed the initiative and emphasized its importance saying such a platform is necessary in order to identify solutions to address the complex issues facing Lusaka food system.

He noted that some of the food issues facing Lusaka require addressing the problems in the informal sector and local markets as they play a significant role in the supply and retailing of food in Lusaka.

At the same event, CUTS Center Coordinator Chenai Mukumba noted that the initiative fell in line with CUTS primary mandate of promoting the welfare of consumers adding that food system in the city of Lusaka is complex and is being impacted by both rapid urbanization pressures and globalizing food systems.

She highlighted that many households in the city are low income earners and are found in informal settlements therefore the governance of food system including coordination and management of open air residential and wholesale markets would have a significant impact on households.

Makumba further added that going forward the initiative will be piloted in other provinces across the country saying currently they will be working in Lusaka which seems complex when it comes to facing problems with food security.

Speaking on the sidelines of the workshop, a Marketer from Soweto market in Lusaka Memory Zulu told the Zambian Business Times – ZBT in an exclusive interview that there is need to focus on informal markets pointing out that the majority of consumers across high, middle and low income households in Lusaka purchase their foods from local markets as they provide easy access to affordable foods.

“We welcome this initiative from the council and CUTS, this was supposed to be done 50 years ago, however it is not too late and it is really going to help us in the food market, security will be provided, cleanness in markets will be provided and consumers will be able to purchase goods not only at a cheaper price but food which is safe for consumptions,” She added.

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The Lusaka City Council – LCC in

Tech

The Zambia Information and Communications Technology Authority – ZICTA has warned members of the public to desist from circulating fake and unverified information regarding the CORONA Virus outbreak using various ICT platforms.

It has been observed that some members of the public are promoting fake posts on COVID-19 which is contravening the safety rules provided as mitigative measures and has potential to put people at high risk of contracting the virus if inaccurate information is disseminated.

ZICTA has since urged individuals including bloggers, various WhatsApp and Facebook group administrators, editors and reporters from mainstream and social media platforms to get reliable, official and verified information from the relevant authorities before sharing it to avoid circulation, broadcasting and publication of fake and alarming information.

In a statement made available to the Zambian Business Times – ZBT by ZICTA Corporate Communications Manager Ngabo Nankonde on March 19, 2020, the authority has reminded the public that the circulation and publication of falsehoods with the intent to cause fear and alarm to the public, is an offence and is prosecutable under the penal code.

ZICTA has since pledged its commitment to support the law enforcement agencies such as Zambia Police Service to ensure that those who break the law by circulating falsehoods and misleading information on CPVID-19 on any ICT platform are brought to book as the authority is mandated by law to oversee safe and responsible use of ICT.

Ngabo said combating this pandemic requires the responsible involvement of every Zambian hence the need for people to come on board and play an active role and use social media wisely.

“We also wish to encourage members of the public to consider using digital platforms for transactions to avoid close contact whenever they can. Consumers are further encouraged that as they sanitize their hands, they may also remember to sanitize their mobile phone, handsets as well and computer keyboards as an added pre-caution,” She added.

Meanwhile, government has announced that it will be giving timeline statements and hold press briefings regularly to update the nation on any development with regards to COVID-19.

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The Zambia Information and Communications Technology Authority

Markets

Prominent Zambian Economist Professor Oliver Saasa has called for concerted efforts to fight the corona virus disease – COVID 19 and not politicized its effect on the economy as the entire world is battling with it and that many economies have been affected due to restrictions in the movements of people and goods.

Prof. Saasa told Zambian Business Times – ZBT in an exclusive interview on March 18th 2020, that the Covid-19 pandemic has gone beyond expectations of any factor that contribute to the slowing of the economy. He said Zambia is greatly affected economically because of its notable foreign trade with China, which is the epicenter of the disease right now.

‘‘China imports close to 30% of our copper, China is the major source of our merchandise in terms of imports, we rely greatly on trade with them. China is also a major investor in the mining sector in Zambia as well as a leading investor in the infrastructure development with huge capital investments. China had a big intimacy with Zambia in terms of trade relations and the Virus was reported from right there in Wuhan, China’’ he said.

Prof. Saasa explained that the country is not generating enough foreign exchange due to less confidence in the market by those that come and invest, foreign investors or portfolio investors that come to buy treasury bills and government bonds. He said currently there is a starvation of foreign exchange on market relatively to the demand for the green bag.

‘‘At the moment there are less dollars on the market for a number of things. The first reason is that the mining sector is not performing too well, the mining sector account for close to 80% of foreign exchange receipt from exports of copper. At the moment, the price of copper is on average about US$ 5,500 per metric tonne with further reductions expected from COVID 19 threats, which is relatively much lower, we expected it to move up to around US$ 6,000 per metric tonne. So it means our foregn exchange earnings from copper is dwindling significantly,’’ Prof. Saasa added.

He has encouraged the government to dialogue with the mining sector, which it seems is currently at loggerheads with. ‘‘There are major differences between the government policy on mining and the investors mainly because of the 2019 fiscal regime, where taxes were increased quite significantly which discouraged investors that are already in the country and also those which were to come to do business,’’ he said.

During vice president question time last Friday, Vice President Madam Inonge Wina told parliament that the Kwacha had continued to depreciate due to Covid-19. The Veep was responding to a question from Manyinga legislator Robert Lihefu who wanted to know if government has failed to manage the economy and currency, leading to what he termed as ‘the free failing’ of the local currency.

The response by the Veep received many attacks from the civil society organisations including the opposition political parties who argued to say that kwacha began depreciating way back before the issue of the Covid-19 intensified. Prof. Saasa however has backed her statement saying the effect of COVID 19 should be not be politicized.

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Prominent Zambian Economist Professor Oliver Saasa has

Lifestyle

The Livingstone Tourism Association – LTA has written and proposed to the labour commissioner seeking modalities on the possibility of sending non-essential employees in the tourism industry on unpaid or forced leave as the industry is battling with the impact of Covid-19.

LTA Chairman George Sikumba, told Zambian Business Times-ZBT in an exclusive interview on March 17, 2020 that the sector has been badly hit by the economic effects of Covid-19 as very few and sometimes no tourist at all are making their way to visit tourism facilities.

‘‘We have simply proposed to the labour commissioner to put most of the non-essential staff to go on forced leave. So you will more likely be seeing most of our staff going on forced leave going forward. It’s a disaster to the industry, how we will survive in the next couple of months if this pandemic persists is a big challenge,’’ said Mr Sikumba.

He added that the tourism sector as a business is badly affected by the Covid-19 especially on the accommodation side of business, saying the hotel and lodging business in terms of occupancy has drastically dropped on Covid-19.

‘‘Occupants for the Hotels has gone to as low as 10 to 20 percent, and these are big hotels, so if you are talking 10 to 20 %, there is a big problem. The people coming for big meetings are affected and the local operators who normally do transfers are not picking as many clients as visit to Livingstone have dropped, so it’s a disaster, we just need to find ways of how we can keep up the business without laying off workers.’’ he added.

He has advised employers in the tourism sector to save enough money and make plans to sustain the business during this dry season. Sikumba expressed disappointment that, unlike 2019, 2020 was a year the industry was earmarked to expand in most sectors and sell massively to the international and local tourists. He said the pandemic seem to have ravaged the these expectations.

The LTA Chairman said normally about 250,000 business travelers were coming in the country, but since the outbreak, the number has sharply dropped. He said unfortunately, countries regarded as tourists source such as United Kingdom, China, Italy, United States of America and India are the ones greatly affected with the Covid-19 pandemic.

‘‘We have a big challenge to run the tourism business in Livingstone as at now, because the vaccine and cure has not yet been found, so we are just waiting and following up any developments for the situation to normalize. Sikumba has since confirmed that the industry is taking all precautions as prescribed by the ministry of health,” he said.

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The Livingstone Tourism Association - LTA has