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Newly appointed Chipolopolo coach Milutin Sredojevic popularly

Barclays Bank transitions to Absa in Zambia

Absa bank Zambia plc, a subsidiary of Absa group limited and which is formerly known as Barclays bank Zambia plc has received a license to operate and trade under its new name Absa.

The name change marks the start of a new era for the bank’s operations, one that sees the realisation of an ambition to become an independent African bank.

The company, which has been operating in Zambia for over 100 years, reiterated its commitment to the country’s growth and economic development under the Absa brand.

Speaking during the official transition event from Barclays to Absa in Lusaka on February 10, 2020, Absa Managing Director Mizinga Melu said the bank has invested in crucial sectors of the national economy, including mining, energy, agriculture, public sector, oil & gas, manufacturing, telecoms, financial services, and trading p.

She said that therefore, Absa will continue to play a critical role by investing in these sectors without neglecting the ordinary citizen who seeks quality financial services and safe investments for their hard-earned money.

“Today we begin a new chapter as Absa Bank Zambia plc adopting our parent company’s name and brand while retaining our indelible commitment to Zambia and its people. Our new brand is a commitment to Zambia and to the wider continent: Absa is a truly African bank, with global scalability and reach,” She said.

Mizinga reaffirmed that the bank would remain a significant player in the banking and financial services sector in Zambia and a contributor to the country’s economy.

“As Absa, our ambition is to become a digitally-led bank that is centered around the ever-changing needs of customers. Fie believe we have a role to play and intend to leverage digital technology to expand reach and access of financial services but also provide affordable services,” she added.

February 14, 2020

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Absa bank Zambia plc, a subsidiary of

Economic growth rate projection for 2020 to be above 3%

Zambia’s economic growth rate in 2020 is expected to be above 3% and is expected to continue to grow despite the current challenges that have led to a high cost of living. This is because of the improved prospects in the energy and agro sectors.

Finance Minister Dr. Bwalya Ng’andu revealed that risks to the medium-term growth projection relates to climate change, ineffective implementation of fiscal consolidation measures and uncertainty in the global economy.

Zambia’s economy has been affirmed as one the fastest growing economies in Africa based on its copper-mining industry and that the aggressive infrastructure drive is expected to provide the base from which future economic growth will be anchored from.

The finance minister announced that Zambia’s economy is expected to continue to grow in 2020 and continue with this momentum in the medium term on grounds that government is implementing measures that will enhance revenue collection, return the country to debt sustainability and onto the path of recovery.

Speaking when he addressed the nation on the country’s economy in Lusaka on February 12, 2020, Dr. Ng’andu said the fiscal deficit is expected to be narrowed to around the projected 5.5 percent of GDP and this will be on account of measures government is undertaking to enhance revenue collection as well as deal with the debt portfolio.

“The Ministry will also give special focus in 2020 to funding social sectors particularly pensions, social cash transfer, health and education sectors whose allocation in 2019 was not fully met. Further the ministry will focus efforts at domestic arrears dismantling,” he said.

The year 2019 was challenging economically with GDP growth revised down to 2 percent from an initial projection of 4 percent and this was attributed to adverse weather conditions, low agriculture output and low electricity generation.

Analysts however have called for the GDP growth rate of over 7% for it to have an effect on reducing poverty levels and drive wealth creation. The copper mining industry is the low hanging fruit that would be tapped to drive the growth rate but the impeding elections in 2021 are also said to be impending some investments.

February 14, 2020

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Zambia’s economic growth rate in 2020 is

ZDA signs deal with CIGR to create charter cities benchmark

The Zambia Development Agency (ZDA) has signed a Memorandum of Understanding with the Center for Innovative Governance and Research (CIGR) with a view to increase competitiveness and investor friendly practices benchmarked on charter city best practices and building capacity in areas under the scope of ZDA in Zambia.

In a statement availed to Zambian Business Times –ZBT, ZDA Acting Director General Matongo Matamwandi says the cooperation aims at transforming the Agency’s internal systems and procedures so as to create an investor and export friendly climate in Multi-Facility Economic Zones, Industrial Parks and Farm Blocks in Zambia.

‘‘The MOU marks an important milestone in the promotion of the zones which should have quality investments that deliver the much required skills, technologies and capital which add value to the countrys’ natural resources which transforms the economy.’’ elaborated Matamwandi.

He said the Agency looks forward to sharing knowledge on key aspects regarding global investment trends and governance. ‘‘We are sure the capacity building programmes will yield the necessary results for both parties and the nation as a whole,’’ he added.

Meanwhile, CIGR Executive Director Mark Lutter explains that his team has global experience, transformation, enhancing administrative, and management practices in city developments in Africa, Asia, and Latin America.

He adds that CIGR’s objective is to work with ZDA to develop robust and competitive business practices benchmarked on Charter City standards making Zambia the preferred investment destination of choice. The duo were speaking in Lusaka at the ZDA headquarters during the MoU signing ceremony.

February 13, 2020

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The Zambia Development Agency (ZDA) has signed

FNB in tie up North-Western Energy to boost power supply

First National Bank (FNB) Zambia has partnered with the North-Western Energy Corporation (NWEC) Limited to further enhance the construction, operation and distribution management of electricity in the non-mine areas of Lumwana, Kalumbila and Solwezi (Kabitaka) concession and surrounding areas.

Acting FNB Head of Business and Commercial Banking, Lubasi Katundu said the Bank was thrilled to support the financing of the NWEC’s community-uplifting projects based on the strength and viability of its vision for the North Western Province and in context of the current and growing demand for power supply and related services in the region.

Katundu added that being part of the US$20 million overall investment demonstrates FNB’s ability and ambition to enable its clients ‘vision for the future.

The company, whose project is now in its 13th year of operation, has supported the supply of power to over 4,000 households to date and has also enabled the connection of essential commercial entities such as banks, filling stations, schools and clinics that support the population in the area.

‘‘We believe that this venture serves as another clear example of FNB Zambia’s commitment to playing a pivotal part in driving growth and development by securing current and future infrastructure and local job creation demands in North-Western province and beyond,’’ said Katundu.

Speaking on the partnership, NWEC Limited Chairperson, Andrew Kamanga, said the organization is thrilled to have a banking partner that recognizes pressing topical challenges and is prepared to invest in impactful and workable initiatives to address them. The financing partnership will ensure the continuation and extension of power supply to nearly 10,000 households and businesses through to 2023.

February 13, 2020

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First National Bank (FNB) Zambia has partnered

ZAFFICO officially lists on LuSE

Zambia Forestry and Forest Industries Corporation (ZAFFICO) on 12 February 2020, scored a first as it listed on the Lusaka Securities Exchange (LuSE), giving hope to other state-owned entities under the Industrial Development Corporation (IDC) Group to follow.

The company, which raised almost K300 million from the initial public offer (IPO), also becomes the first firm to list on LuSE in five years and brings the total number of companies listed on the capital market to 23.

IDC Group chief executive officer Mateyo Kaluba said the capital raised from the IPO will be deployed into new forest plantations across the country, thus increasing the lifespan of the company. Kaluba said the listing of Zaffico on the wider platform will actualize its potential stating that it is the first IPO in the forestry sector and also restricted to Zambian investors.

Finance Minister Bwalya Ng’andu urged the LuSE and Securities Exchange Commission – SEC to take bold and decisive measures that will make it easier for companies to list. Dr. Ng’andu said this when he officiated at the Zaffico listing ceremony in Lusaka on 12 Februarry 2020.

The Minister said the listing of Zaffico will contribute to increasing supply of stock to LuSE and presents an opportunity for domestic retail and institutional investors to diversify their portfolios.

And Zaffico Board Chairperson Anna Kunda said the development of listing Zaffico will enable the company to expand its plantations, such that the company will have at least one plantation in each of the 10 provinces. Kunda stated that Zaffico will be consolidating its position in the market to be leading supplier of wood and timber related products, while it also supports the re-afforestation efforts to address the effects of climate change.

Speaking at the same function, LuSE Acting Board Chairman Richard Phiri said the listing of Zaffico will raise capital for the long term without incurring high costs that come with traditional modes of financing such as debt. And Securities Exchange Commission CEO Philip Chitalu, said the commission will continue to facilitate a conducive environment to enhance participation in the capital market.

Zambia State Insurance Corporation – ZSIC is the other company that was specifically listed by government for listing in 2019 but is still outstanding. Listing on LuSE is also a control function that aids with companies putting in place good corporate governance measures to meet listing rules. The bourse also offers opportunities for Zambians to have a direct equity stake in companies operating in Zambia.

Analysts have observed that SEC and LuSE management teams need to be reformed to held drive the viability and increase the numbers of listed companies. Just by aggressively working with IDC, LuSE can attract more than 50 companies which are currently state owned.

The Securities market in Zambia needs to be further developed to offer a viable alternative for raising capital other than from banks and financial institutions. LuSE also houses the alternative exchange which needs awakening to offer Small and Medium Enterprises a platform to raise capital for expansion and further creating the much needed employment opportunities.

February 13, 2020

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Zambia Forestry and Forest Industries Corporation (ZAFFICO)

Zambia’s FX reserves up from 1.6 to 2.1 months

Zambia’s Gross International Forex Reserves have increased to US$1.45 billion equivalent to 2.1 months of import cover as at end of December 2019 from the US$ 1.41 billion equivalents to 1.6 months import cover recorded at end of June 2019.

Minister of Finance Dr. Bwalya Ng’andu has announced that the increase in reserves is attributed to net purchases of foreign exchange from the market by the Bank of Zambia and continued payment of mineral royalties in US dollars.

This means that in an event of a major crisis, the country can continue to survive on imports for a period of 2.1 months as there is a buffer for international trade and balance of payment funds. This further means that in situations where there is no any other foreign currency coming into the country for the period of 2.1 months, the country should be able to pay for its key imports such as fuel and any other goods imported from outside the country.

Meanwhile, the Minister also announced that the exchange rate of the Kwacha against major currencies generally depreciated in the third and fourth quarter of 2019 saying this was at the back of heightened demand in the market induced by petroleum, electricity and fertilizer imports, amidst reduced supply of foreign exchange.

Addressing the nation about the country’s economy in Lusaka on February 12, 2020 at Intercontinental Hotel, Dr. Ng’andu has also disclosed that inflation is expected to remain high in the first half of the year on account of the past-through effect of the exchange rate depreciation and the increase in fuel and electricity prices.

He said the rate is expected to start tapering down in the second half of the year due to a reduction in food prices as fresh produce begins coming onto the market. Dr. Ng’andu added that government will continue implementing measures aimed at stabilizing and augmenting external reserves and these measures include reducing outlays on debt service, Bank of Zambia purchase of foreign exchanges from the market as well as purchase of gold as a reserve assert once the process comes to a conclusion.

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Zambia’s Gross International Forex Reserves have increased

Agribusiness

Cotton farmers to venture into bio-energy

The Cotton Association of Zambia has commenced country-wide training programmes in bio-energy production and cotton value-chain development for all member cotton growers.

Cotton Association of Zambia Executive Director Joseph Nkole says as part of the organizations contribution to the fight against climate change through sustainable industrialisation, member training programs in the manufacturing of briquettes made from cotton stalks – hitherto, a waste from cotton harvest – is underway.

This came to light when representatives of the Cotton Association of Zambia made a presentation on “Empowering Smallholder Famers along the Cotton Value Chain” to Finance Minister Bwalya Ng’andu at the latter’s office in Lusakat on February 11, 2020.

Nkole explained that the use of cotton stalks manufacturing briquettes had significantly improved revenue earnings for participating members.

He said further that the association is currently collaborating with the United Nations Conference on Trade and Development [UNCTAD] to develop skills in bio-energy production among member cotton growers adding that it will contribute to reduced dependency on the national grid for farm electric power.

He confirmed that following the financial stimulus receive from the Government through the Citizens Economic Empowerment Program and other trade financing facilities from development partners, cotton output has significantly improved and has positioned the country as one of the leading producers in the region.

The association submitted that cotton production still provides the most significant opportunity for smallholder farmers to venture in cash crop farming.

Nkole disclosed that over one-thousand farmers from Southern, Muchinga, Eastern, Central, and Lusaka provinces have been trained in cotton-value-chain skills through a GRZ, European Union and COMESA jointly managed programme that is targeted at upgrading their produce to export standard.

Speaking at the same event, Dr. Ng’andu commended the association for its efforts in improving the livelihoods of rural folk as it was in the right direction in the country’s quest to re-establish the textile
industry.

The Minister applauded the association for establishing members’ skills development programmes and for creating job opportunities, especially for the youth, through the cotton-value-chain.

“We need to stop environmental degradation by reducing deforestation so that climatic conditions are stabilized,” commented the Minister on the Cotton Association’s contribution to the fight against climate change through sustainable industrialisation programmes such as the manufacture of briquettes and bio-energy production.

The Minister decried the rapid loss of forest cover due to unregulated cutting of trees but was encouraged by the association’s youth empowerment programmes aimed at sustainable use of natural resources and agriculture value-chain products.

“As Government, we want your programme to succeed,” said the Minister. This is according to a statement made available to the Zambain Business Times- ZBT by the Ministry’s Spokesperson Chileshe Kandeta on February 11, 2020.

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The Cotton Association of Zambia has commenced

Construction works at KKIA reach 87% completion

The Zambia Airports Corporation limited – ZACL has disclosed that the on-going works at Kenneth Kaunda International Airport – KKIA are currently running at 87% towards completion and the works have so far progressed to an advanced stage.

Speaking to the media in Lusaka who toured the construction site on February 11, 2020, ZACL Communications and Branding Manager Mweembe Sikaulu said the design and construction of the airport infrastructure at the Kenneth Kaunda International Airport – KKIA was awarded to China Jiangxi Corporation for international economic and technical cooperation.

And when asked how much has so far been utilized from the US$360 million, Mweembe could not immediately disclose the specific amount but confirmed that the project is expected to be completed in good time, and emphasized on its positive progress.

She said the infrastructure development projects that the corporation has embarked on are to accommodate the anticipated increase in traffic, cargo volumes and passenger numbers. The current construction progress at KKIA for the new passenger terminal is at 96%, the Hotel at 94%, the Rescue and Fire Services Station at 98%, Air traffic control tower at 97%, Presidential Pavilion at 88.5%, Cargo Terminal at 98%, Airport Shopping Mall at 98% and the Airport Office Complex at 98%.

Mweembe added that among the 8 buildings being constructed include the refurbishing of the current airport as a way of developing the airport into a Regional hub. “It is part of our strategic plan that in the next few years Zambia will also become a regional hub just like some other countries and this can only be done by these developments so we can raise our standards,” She said.

She further revealed that the hotel has a 70 room capacity and that the corporation is still in the process of finding who will run the hotel or the brand it will be associated with. The projects embarked by ZACL in the past few years include the upgrading of four international airports namely Lusaka’s Kenneth Kaunda International Airport, the Copperbelt’s Simon Mwansa Kapwepwe International Airport, and the tourism capital of Livingston’s Harry Mwaanga Nkumbula International Airport and Mfuwe international airport which is a gateway to the safari tourism hotspot of the Luangwa National Park.

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The Zambia Airports Corporation limited – ZACL

Zambia’s external debt increases to US$ 11.2 billion

Zambia’s stock of external debt has increased to US$11.2 billion as at the end of December 2019 from the stock of US$10.23 billion recorded at the end of July 2019.Finance Minister Dr. Bwalya Ng’andu has disclosed that this was on account of new disbursements on existing loans, mostly earmarked for infrastructure development.

Speaking when he addressed that nation on the state of country’s economy in Lusaka on February 12, 2020, attended by the Zambian Business Times – ZBT, the minister further disclosed that the stock of government securities at end of 2019 was K80.2 billion from K60.3 billion at end of June 2019 attributing the increase to the issuance of government securities to finance the budget deficit for 2019.

He added that the stock of Domestic arrears excluding VAT, amounted to K26.2 billion at end of September 2019 from K20.2 billion at end of June 2019. The minister said government had through the Cabinet Memorandum considered to undertake measures which will address debt servicing among which include a moratorium of contraction of external projects loans, cancellation of selected external project loans, and re-scoping of selected externally financed projects in order to reduce the projects and ultimately reduce the undisbursed loan balance.

Dr. Ng’andu however did not indicated as to when such measures will be implemented stating that the ministry may not give a timeline as when the aforementioned measures will be applied but that the process will begin soon.

He added that government is also working towards unlocking liquidity to the private sector and will reduce the stock of arrears to domestic suppliers of goods and services. “Between December 2019 and January 2020, the ministry released a total of K590 million to the National Road Fund Agency – NRFA and paid out K452 million representing 77 percent of the amount owed to local road contractors and consultants. Almost all the contractors undertaking routine maintenance works were paid in full,” he said.

Dr. N’gandu said in order to avoid further accumulation of arrears, Government has as part of its austerity measures enhanced its control systems adding that all erring controlling officers will be held to account in line with the public finance management act. Government has also pledged to return the country to debt sustainability and get the economy on the path to recovery.