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Markets

Bank of Zambia (BOZ) Deputy Governor Operations Francis Chipimo has revealed that the Exports Proceeds Tracking Framework (EPTF) which came into effect on 1st January 2024 will only be fully implemented in 2025 adding that the services side is yet to be implemented as the current focus is on tracking goods.

Responding to a question raised by the Zambian Business Times (ZBT) over the EPTF Chipimo stated that the Bank has had receipt of K4 billions of exports and only about K2 billion has been reconciled.

“Since it was launched in January in terms of the total export value we had K6.6 billion, and in terms of the trade data, and in terms of the export receipts the value that we have received is about K4.1 billion, and all points of the framework are to reconcile so that we can say when this export was made this is the money that was made, and the reconciliation process we still have a bit of a long way to go and the amount recorded is K2 billion partly because we have not fully implemented the services side, once we implement the services side by January next year, then we should be able to fully reconcile,” he said.

Chipimo echoed that the bank is also working on tracking imports, alongside the services and goods.

“For example, we can be able to track the money that one is taking out, but they may say this money is ours because I imported goods and services before, there isn’t a way in which we can reconcile that indeed the money which you are sending out is for those imports, so that is the other pillar which we are implementing and once we do all of the three things we can have a 360-degree understanding of all of our payments in and out of the Country,” he said.

Chipimo emphasized the full actualization of the framework will also enable a full understanding of tax compliance and foreign exchange flows.

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Bank of Zambia (BOZ) Deputy Governor Operations

Companies

The Zambia Institute of Chartered Accountants – ZICA, has charged that the projected single-digit inflation now appears to be an untenable stretch, with the Zambia Statistics Agency Zamstats reporting an increase to 13.5%, up from 12.9% in the last quarter.

Speaking at the ZICA quarterly media briefing attended by the Zambian Business Times – ZBT, Zambia Institute of Chartered Accountants (ZICA) President Yande Siame Mwenye, noted that the annual inflation is projected to climb to 14.7%, posing a significant obstacle to the country’s economic stability.

Mwenye also emphasized the critical role of energy provision in driving economic growth and expressed concerns about the negative impact of power shortages on the economy.

Mwenye cautioned that projected growth rates of 6.6% in 2025, 5.9% in 2026, and 5.6% in 2027, may not fully account for potential external shocks such as global economic downturns, commodity price fluctuations, and local issues like adverse weather conditions.

“The projected growth rates of 6.6% in 2025, 5.9% in 2026, and 5.6% in 2027 reflect a strong optimism about the economic recovery and development potential. The government plans to achieve this through various reforms, infrastructure projects, and enhancing productivity across key sectors.”

“However, these projections might not fully account for potential external shocks, such as global economic downturns, commodity price fluctuations, or local issues like power shortages and adverse weather conditions.”

She said historical data shows that such optimistic growth projections often face significant hurdles. “The IMF and the World Bank have projected growth rates for Zambia in the range of 3-4% over the next few years which is lower than what the budget is projecting.”

Mwenye also noted that previous growth targets have often fallen short due to a combination of external and internal factors, such as the severe impact of drought on agriculture and power shortages hampering industrial production.

She advised the government to incorporate more conservative scenarios and contingency plans in the economic recovery plan. “This could involve creating financial buffers, diversifying export markets, and investing in climate-resilient infrastructure to mitigate potential disruptions and ensure a more stable path to economic recovery.” She said.

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The Zambia Institute of Chartered Accountants –

Lifestyle

The anticipation for the main event of the PRURide professional road bicycle racing stage race sponsored by Prudential, reached new heights as Prudential Zambia held a community activation race to build up for the major event scheduled for Saturday 31st August 2024.

On August 25, 2024, people from all walks of life, including kids, veterans, and women among many others expressed their maximum support for the incoming community activation race, showcasing an overwhelming interest in cycling.

Prudential Life Assurance Zambia, Chief Executive Officer – CEO, Kachiza Kwenda, who was also part of the cyclists to fully support this initiative, emphasized the twofold objective of the PruRide event – bringing communities together and raising awareness about cycling and road safety.

Speaking in an exclusive interview with the Zambian Business Times – ZBT, Kwenda highlighted the significance of the event in promoting fitness and an active lifestyle while demonstrating Prudential’s commitment to impacting communities in a sustainable manner.

Kwenda urged people from all walks of life to participate in the main event scheduled for August 31, 2024, which promises to feature a diverse range of racers, including elite riders, children, veterans, and mountain bike enthusiasts among others.

“One reason we are very happy to be associated with this is that as we put
in sponsorship, we are encouraging people to have an active lifestyle, and i
think in the past people have associated bike riding with either poverty or
anything but it’s the most efficient way to get around as it is good for human beings and their health.”

“This event helps us to come through for the communities that we work in as we believe in impacting sustainably the communities that we operate in and so this is just a demonstration of what we intend to do in many different areas across the country.” Remarked Kwenda.

He further encouraged people to look for healthy and holistic ways for them to pass their time adding that Prudential was very proud to be associated with such activities.

Appreciating the tremendous turnout at the build-up event held at Lusaka’s Cairo road, Kanyifwa Nyirongo, Managing Director of Prudential Pensions Management Zambia, who was also part of the event among many other officials from Prudential Zambia and Cycling Association of Zambia, expressed sincere gratitude for the great turnout and underscored the event’s focus on community engagement and promoting good health.

He added that Prudential Zambia intends to extend such events to other provinces like the Copperbelt and North Western province, emphasizing that PruRide is not just for Lusaka but for everyone to enjoy good health.

With the main event slated to begin from Thabo Mbeki-Ngwenya road and traverse through Kamloops road and the Great East road, Nyirongo encouraged individuals to register through various media channels and join in for a day of fun and good health. “So there will be some that will be doing 10 laps, 8 laps, and 6 laps so lots
of things that will be happening there so please come forward.”

The Prudential PRURide promises to bring communities together and promote a healthy and active lifestyle across all regions of Zambia.

The PruRide professional road bicycle racing is a community-based cycling sponsored by Prudential in Collaboration with the Cycling Association of Zambia.

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The anticipation for the main event of

Agribusiness

The National Union for Small holder farmers of Zambia -NUSFAZ, has urged the general public to try out mealie meal from other crops like millet and sorghum and cassava and not just sticking to maize.

Speaking in an exclusive interview with the Zambian Business Times, National Union for Small holder farmers of Zambia -NUSFAZ executive director Ebony Lolozhi said, the general public has to start learning how to adapt with the shocks that come with climate change in terms of food security.

“You know when we are faced with all these challenges we need to adapt ,so it is either we adapt or we die of hunger , so what I am saying here is first of all we need to manage our land properly so that at the end of the day our land is able to attain the right levels of fertility .” he said.

He added that there is need to start incorporating rain water harvesting each time we are in the rain season so in the future it can be of value.

“Look at the way things are as a country, we are grappling with low food levels meaning that our harvest was heavily affected by the drought when we would have simply practiced smart agriculture practices so that we avoid losing yield,” he stated.

Lolozhi added that in regards to them advising farmers to start diversifying to growing crops like sorghum, millet,cassava and even sweet potatoes it is also vital for consumers to also start considering consuming more of millet, sorghum and cassava so that farmers can be motivated into growing more drought tolerant crops .

He further called for joined efforts from companies that are into producing beverages to be specific alcoholic beverages to come on board and stimulate market demand so that farmers are encouraged to go into drought tolerant crops.

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The National Union for Small holder farmers

Markets

Economic Association of Zambia (EAZ) National Secretary Dr. Nicholus Obby Mainza has called for stringent measures in curbing the issue of investors engaging in capital flight which deprives the Country of the required revenue.

Speaking in an exclusive interview with the Zambian Business Times (ZBT) Dr. Mainza said Government must ensure that the investors save their earnings within the Country, in the aspect of growing the economy.

“The business environment in Zambia is very good, and that’s why we are seeing foreign investors coming into the Country, for instance the brick molding is flooded with several foreign investors, but the only weaker point is the allowing these investors to push out their cash in banks outside the country, we must advocate that they push the money in the Zambia banks so that we stabilize the Kwacha against other major convertible currencies, and there will be enough liquidity revolving around the country, instead of them sending the money in their offshore accounts,” he said.

Meanwhile commenting on the latest Zamstats report that indicates that the first quarter of 2024 experienced a reduction of the economic growth of only 2.2 percent compared to the first quarter of 2023 which was at 4.0 percent.

Dr. Mainza said there is a need to increase productivity and enhance the measures surrounding foreign exchange. Mainza also noted the recent appreciation of the Kwacha attributing it to the marketing season which has seen exports of agricultural products and the revamping of the mines.

“The Kwacha is doing better now compared to the previous month, it’s because we are making positives in the mines and agriculture. We have seen the marketing season where farmers are offloading their produce on the market, and the banks are running around and liquidity is at large,” he said.

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Economic Association of Zambia (EAZ) National Secretary

Agribusiness

The Total annual sunflower production in Zambia for the 2023-2024 season prospects has reduced by 52 percent to 44,1280 metric tons from 91,607 metric tons from the previous season according to official statistics.

Speaking in an exclusive interview with the Zambian Business Times, Agriculture expert Oliver Bulaya stated that according to the crop forecast, the Projected production for the 2024/25 season is dependent on farmers increasing hectares of production with expectations of normal rainfall patterns in some areas.

He however stated that, there is a need to intensify the promotion of sunflower as it is one of the crops that could do better regardless of the climatic challenges in consideration of Soil nutrition and market forces.

Bulaya said, “Smallholder farmers contribute enormously to sunflower production in Zambia. The country was generally self-sufficient in sunflower production, with occasional surpluses exported to neighboring countries. However, the year-to-year production levels changed due to factors such as weather, pests, and market conditions.” He explained.

Furthermore, Bulaya stated that there is a need for more local farmers to join and become large-scale sunflower producers.

He further urged the government to look into factors that could help local farmers scale up sunflower production like access to improved seeds, modern farming equipment, irrigation infrastructure, extension services, and reliable markets for their produce

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The Total annual sunflower production in Zambia

Lifestyle

Senior medical officers at the Livingstone Teaching Hospital, the main government hospital for the tourist capital of Zambia has been accused of deliberately not repairing it’s X-ray machines and other vital equipment in order to divert patients to a private clinic which is charging exhorbitant fees.

The accusation is that the senior officers at the government hospital may be conniving with the private clinic and getting cuts from the exhorbitant fees. The concerned citizen complained that no efforts have been made to get the machines working and this is putting a further financial burden on patients.

And when contacted by ZBT, a senior medical officer at Livingstone Teaching Hospital who asked for their identity to be withheld denied the allegations regarding the X-ray machines being down in order to favor private entities operating outside the hospital.

Speaking in an exclusive interview with ZBT, the medical officer revealed and acknowledged that yes indeed the X-ray machines have been down for a while now but that the breakdown of the X-ray machine was due to them not being replaced for quite a number of years now .

“We don’t have an X-ray Machine as the one that we had stopped working for some years now, so ever since then, we have been working with a smaller X-ray machine,” the medical officer said.

The medical officer further disclosed that currently there are some installations which the ministry is currently doing in regards to having the machines replaced.

“What the Ministry of Health is doing is that they are having installations of new machines across the Country, so they have currently installed in the Northern province, Eastern province, this week they are installing on the Copperbelt and probably next week or so, they will install the machine in Livingstone,” the source disclosed.

At the time of going to press, ZBT is yet to get a response from the ministry of health head office on the allegations in Livingstone and the timelines when the machines will be replaced.

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Senior medical officers at the Livingstone Teaching

Mining

The Emeralds and Semi-Precious Stones Mining Association of Zambia-ESMAZ has raised concerns about the current mining policies, suggesting that they favor foreigners over local small-scale miners.

ESMAZ President Victor Kalesha said there is a need for the Ministry of Mines to reevaluate and adjust the stringent conditions imposed on Zambian miners.

Speaking in an exclusive interview with the Zambian Business Times – ZBT, ESMAZ criticized the current mining license policy, stating that it seems to favor foreign companies over Zambian miners further arguing that the conditions are simpler for foreigners due to their access to finances, equipment, and geological information.

Kalesha highlighted a lack of understanding of the language and complex regulations, which are major barriers for local miners.

“In contrast, local miners face significant challenges in meeting these requirements, hindering their ability to compete on an equal footing.”

ESMAZ proposed various solutions, including tax relief on the importation of mining equipment for small-scale miners and the establishment of pilot projects to provide leased mining equipment.

Kalesha has also appealed for long-term financing options tailored to support local miners and for the enhancement of geological survey capabilities.

He further emphasized the importance of collaboration with academic institutions such as the University of Zambia and the Copperbelt University School of Mines to leverage expertise in mapping out the geological layout of the country.

ESMAZ asserts that these measures are necessary to level the playing field and ensure fair opportunities for local small-scale miners in the Zambian mining industry.

“Many times noncompliance comes in because of the lack of compliance comes in because of not understanding the jargons in the language that is used which needs to be changed to the level of most local Zambian small-scale miners.”

“The current policy on mining licenses is a conduit to be cited for noncompliance because some of them don’t even seem to be favoring the Zambians but are favoring the foreigners because the conditions look very simple for foreigners because they have the money but very difficult for the locals because they have no access Finance, equipment and no proper geological information which is easy for other for the foreigners.”

“What we need to see is that maybe be government cutting off taxes on the importation of the importation of equipment for small scale so that they can be able to do proper exploration because currently, exploration itself is very expensive.” He added.

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The Emeralds and Semi-Precious Stones Mining Association

Markets

The Bank of Zambia – BoZ disclosed that the continuous instability of the exchange rate in Zambia is a threat to financial stability, as this could trickle down to asset price distortions, and credit losses.

According to the BoZ Financial Stability report accessed by the Zambian Business Times (ZBT), as observed in recent times the volatility of the Kwacha had escalated, slumping to a historical high of ZMW27.2175 against the US dollar in early February 2024.

“The exchange rate volatility surged above its 14-year historical average, as the Kwacha experienced both appreciation and depression, the local unit weakened in February as the stock of unfulfilled foreign exchange demand orders (pipeline demand), swelled in the absence of substantial inflows from the mining firms before recovering following liquidity tightening measures pursued by the Bank.

“The high exchange rate is a threat to financial stability, as it leads to credit losses from unhedged foreign currency denominated exposures and trading losses from foreign currency net open positions on balance sheets of financial institutions,” the report stated.

Furthermore, the report revealed that the price volatility for the Lusaka Securities Exchange All-share Index (LASI) suffered a decrease in stock valuations in March.

“The LASI has been on an upward trajectory, post-Covid, there remain a few businesses with access to market-based f inance, with high borrowing costs limiting their access to credit markets, this potential constraint many firms’ efforts to raise capital for investment and expansion,” the report echoed.

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The Bank of Zambia - BoZ disclosed

Companies

BY STAFF REPORTER

A Zambian Business Times – ZBT investigation has revealed that so far, four (4) milling companies have been narrowed down and identified in the industry investigations as being among the highly suspected brands to have toxic mealie meal (aflatoxins above the health requirement levels) after initial investigations of about 10 companies by the team that has been put together.

Speaking in an exclusive interview with the Zambian Business Times – ZBT, a source whose names have been withheld due to the sensitivity of the matter, said out of the ten (10) milling companies inspected so far, 4 Companies have been named as chief suspects adding that further investigations have continued on this matter of great public concern.

According to the source, the four milling companies with the initial investigations whose products allegedly contain AFLATOXINS after being subjected to some tests include:  

1. SIMBA MILLING LIMITED

2. AFRICA MILLING COMPANY

3. ZNS’s EAGLE MILLING AND,

4. PEMBE MILLING

“So these are the chief suspects but investigations are still ongoing.” remarked the source.

Meanwhile, efforts by ZBT to get confirmation if indeed the initial tests have revealed products containing elevated and above health levels from Simba, African Milling, and Pembe, have proved futile by press time. ZNS had yesterday denied getting any reports of their Eagles brand being found wanting.

Aflatoxins are toxic compounds produced by certain molds that grow in soil, decaying vegetation, hay, and grains. According to the Ministry of Health which has refused to name the brands for the Milling Companies, these toxins pose a severe health risk to both humans and animals. In humans, aflatoxin exposure can lead to acute liver damage, liver cancer, immune system suppression, and other chronic health issues. Given the gravity of these risks, immediate and comprehensive action was necessary.

“To date, about 10 milling companies have been inspected, and more than 25 samples of maize meal were collected. It is with deep concern that in the report, 13 of these samples have been found to contain aflatoxin levels exceeding acceptable standards”, a statement from Health Minister Elijah Muchima availed to ZBT stated

The detection of elevated aflatoxin levels in products intended for human consumption is of great concern due to the severe health implications for our population. Aflatoxins can cause liver damage, and liver cancer, and can severely impact the health of individuals with prolonged exposure. Children and those with compromised immune systems are particularly vulnerable to the effects of aflatoxins – a statement from the Ministry of Health revealed.

Meanwhile, the issue of the continued presence of toxic mealie meals on the market continues to cause public anxiety as the concerns are now extended to establishing the source of the maize that the millers may have used. It is however not yet clear whether the maize is coming from private sellers or from the Food Reserve Agency – FRA or indeed the imported stock from neighboring Tanzania.

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BY STAFF REPORTER A Zambian Business Times -