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The Bank of Zambia – BOZ has announced that it is in the process of resuming the buying gold to serve as an alternative forex reserve as a way of diversifying from the risk of  only relying on holding of the US dollar which is currently the main forex reserve held.

BOZ stated that countries keep stocks of foreign exchange and other reserves in order to maintain foreign currency liquidity in case of an economic crisis and this is why such reserves are translated into month of import cover, implying the need to have reserves to cover imports in case the country’s ability to earn more currency is negatively affected.

BOZ governor Dr. Denny Kalyalya told the Zambian Business Times – ZBT in an exclusive interview that plans by the central bank to start buying gold are underway as it is currently considering and finalizing some technical processes and procedures needed when buying and stocking gold as an alternative national reserve.

Dr. Kalyalya added that the bank is in discussions with companies targeted to be the initial sources of gold and has currently identified Kansashi mine as the major initial source, but that it will also take into consideration other players that would want to come on board once the processes are finalized.

When asked about the target value of gold reserves the central bank intends to hold, the governor said the volume of how much will be bought is still under discussion with suppliers as it also depends how much they can provide hence, BOZ will announce to the public once the process comes to a conclusion.

He further added that the Bank intends to use the local currency, the Kwacha to buy gold since this gold is locally produced, unlike using foreign exchange which will be a subtraction to the current foreign currency holdings.

“The process of buying gold is underway because there are a number of things that we have to deal with but we are working towards ensuring that this is done as soon as possible. Having gold as a reserve can be stable depending on the beholder but when compared with our current major source of export dollars, it fetches higher prices than copper,” he added.

According to research done by ZBT analysts, gold reserves would complement the current US dollar held reserves which are now mostly generated from mineral royalties levied on copper exports. Gold reserves would become more efficient to stock pile as they would be bought using local currency with the country leveraging the current mining at Kansanshi and Lumwana as well as the new find in Mwinilunga.

Other advantages include the fact that gold returns would be enhanced not just from capital gains, but also the fact that its held locally, enhancing security in times of economic stress. The reserves when built to sizable levels can be sold with the forex proceeds used for infrastructure or even debt pay off.

The flipside also is sometimes the liquidity challenge when International gold market conditions deteriorate although this  currently seems to be a distant possibility as gold has withstood its value and allure from pre-historic times todate.

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The Bank of Zambia – BOZ has

Tech

Christmas has come early for Chipata Level One Hospital of Chipata compound in Lusaka after the public signal distributor TopStar Communications Company Limited donated a complete solar kit to the maternity ward at the hospital.

This was in support of the Lions Club of Kapila who had embarked on the rehabilitation of a maternity ward at the hospital. The Club decided to give the ward a fresh new look by adopting to paint the walls of the ward.

In a statement to Zambian Business Times – ZBT, TopStar Vice President Cliff Sichone who handed over the donation to the Sister-In-Charge thanked the Lions Club of Kapila members led by the District Governor for the efforts rendered in uplifting the lives of the patients especially women and children. Sichone further thanked the hospital management and staff for their dedication to serving the community of Chipata compound.

Sichone said his company operates and serves subscribers in communities like Chipata compound. He expressed happiness and said the little token of donation will help keep the patients, admitted to the ward entertained and abreast on current affairs through the many TV channels that TopStar carries on it’s network.

‘‘So I think we will be failing in out duties as TopStar if we don’t answer the call to help local communities and especially community members who are not well and are sick and need healing not just from their ailment but healing from the mind as well,’’ said Sichone.

He also stated that TV plays an important role in ensuring that people who are unwell do not feel neglected but are kept entertained. The donated solar kit includes a 24inch LED TV, solar panel, battery, satellite dish, four LED light bulbs, and a provision charging multiple cell phones.

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Christmas has come early for Chipata Level

Agribusiness

The World Wide Fund for Nature – WWF has injected €160 million into the Dutch Fund for Climate and Development – DFCD meant to respond to effects of climate change the country is currently facing.

The DFCD which has been sponsored by the Dutch government is a fund created to provide support to private sector companies to develop bankable climate change related projects that investors can support across four countries, namely Zambia, Kenya, Turkey and Paraguay.

Speaking during the lunch of the fund in Lusaka on December 3, 2019, WWF Country Director Nachilila Nkoma disclosed that DFCD is currently under a business plan which is critical for Zambia as it will improve the well-being of the most venerable people including Women and Children.

She said Zambia is living under effects of climate change which has led to lower water levels in the country’s water reservoirs hence imposing load shedding on households and businesses in the country therefore the need to take proactive stance in coming up with solutions to deal with effects of climate change.

Nachilila added that Zambia’s economy currently relies on water as sectors such as Tourism, Agriculture and energy are most dependent on it and that the fund is an excellent opportunity for Zambia’s private sector to embark on an informed science-based process to support the development of bankable solutions for companies and industries affected by climate change.

And Ministry of Finance Permanent Secretary in charge of Internal Audits Joyce Phiri said tackling climate change cannot be done by government alone, but requires collective action by various stakeholders hence the launch of the climate fund is one such action.

She added that government is proactive in ensuring that agriculture sector becomes more resilient by giving timely information to all farmers on climate forests and supporting the full implementation of the climate-smart initiative such as support to conservation agriculture.

“Among the measures that government has taken is the development of a climate change policy at the national level and the ministry of planning is implementing climate related projects such as the pilot project for climate change therefore will continue to take measures that ensure a conducive business environment to attract and support both local and foreign investments,” She added.

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The World Wide Fund for Nature –

Markets

ZEP-RE, a PTA Reinsurance Company has invested about US$36 million into the Zambian economy and is scheduled to open its first multi-storey, green building in Zambia which is designed to reduce on the demand for usage of electric power contributing towards a sustainable green economy.

ZEP-RE is set to commission its largest property investment within its portfolio in the Common Market for Eastern and Southern Africa – COMESA region this week in the wake of the adverse effects of climate change being experienced in the country.

Speaking during the media breakfast and tour of the business park, the ZEP-RE Board Chairman William Erio said the project ploughed more than $15 million, representing about fifty percent of the market value of its investments into the Zambian economy.

Erio stated that this was done through sub-contracting to four local Zambian contractors out of the five contractors, and that most of the high value building materials were purchased from local suppliers.

He further thanked the Zambian Government for the support and facilitation leading to the successful completion of the new ZEP-RE Business Park, adding that the Zambian government has continued to provide a stable and enabling business environment for growth that attracts such investment.

At the same event, Managing Director & Chief Executive Officer Hope Murera added that in line with the institution’s mandate to support the development of insurance markets in COMESA member countries, all the insurances for this project were awarded to Zambian insurance companies, throughout the period of construction which commenced on the 17th September 2017.

In a statement made available to the Zambian Business Times – ZBT by ZEP-RE Assistant Director Shipango Muteto, Murera said the upcoming launch of the new multi-million-dollar Business Park in Lusaka’s long acres reaffirms the founding mandate of ZEP-RE, to spur economic development in the region.

She added that the investment is aimed at maximising value for the institution’s shareholders that include the Zambian Government. The National Construction Council Executive Director Matthew Ngulube, applauded ZEP-RE for not compromising and maintaining high standards in the construction of the Business Park.

ZEP-RE, a Pan-African reinsurer headquartered in Nairobi and with country offices in Uganda, Zimbabwe, Zambia, Ethiopia, Sudan, Ivory Coast and the Democratic Republic of Congo supports all the insurance companies in the Zambian Insurance industry as it forges ahead with plans to position the insurance industry as one of the main drivers of economic growth.

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ZEP-RE, a PTA Reinsurance Company has invested

Companies

The Alick Nkhata Road, which was partially closed, to pave way for the construction of the US$72 million Long acres Mall, Flyover Bridge, has officially re-opened to the public creating smooth flow of traffic and business to the local residents and motorists.

The construction of the flyover bridge was aimed at easing traffic congestion on Alick Nkhata Road, following the construction of the Longacres Mall.

Speaking at the official opening on 3 December 2019, attended by Zambian Business Times – ZBT, Lusaka Deputy Mayor Christopher Shakafuswa, said the opening of the flyover bridge will help in decongesting traffic of vehicles, using the Alick Nkhata Road.

Shakafuswa added that the putting up of the Flyover Bridge and shopping mall is a clear demonstration by the public service pension funds – PSPF funds being put to good use, the deputy Mayor said.

And PSPF board chairman Bernaby Mulenga disclosed that the construction of the shopping mall is at 96 percent, office block is at 99 percent, entertainment block 71 percent, while the hotel stands at 26 percent completetion points.

The PSPF Chairman further assured the Lusaka residents and the media who was present at the event that, the Board and management of PSPF is working on various investment initiatives, aimed at using member’s contributions prudently.

PSPF had indicated that international hotel group, Radison would be the investor to occupy the hotel but efforts to get confirmation were still underway by press time, looking at the fact that the hotel seems to be at her least level of development.

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The Alick Nkhata Road, which was partially

Companies

Permanent secretary – PS at the ministry of Transport and Communications Misheck Lungu has disclosed that about 70% of works have been made towards the completion of the relaunch of Zambian National Airline.

Responding to a statement released by the Center for Trade Policy and Development – CTPD on November 20, 2019, indicating that the relaunch of the Zambian Airways will add to debt unsustainability, Lungu explained that the project is not relying on the national treasury as its shareholder is the Industry Development Corporation – IDC in partnership with Ethiopian airline.

CTPD had indicated that through an assessment of the proposed business model for Zambia Airways and an analysis of the financing options for the airline, it has been established that Zambia Airways will add to the unsustainability of Zambia’s public debt.

But Lungu has argued in an exclusive interview with the Zambian Business Times – ZBT that it is only rational thinking that the project cannot be canceled at the level it’s at, due to a certain group of people that feel it will hurt the economy and do not have the full information.

He said the airline is not about the bottom line profit as it will contribute to many other economic areas adding that currently, it is at stage three of its process with only two stages left before completion and taking to the skies hence cannot turn backwards.

“We understand the fear relating to the economy but people that take risks are the ones that make business. Just because the economy is not doing so well does not mean government has to change its plans because if government becomes averse to risks, then growth won’t be there and we don’t work like that. What has been started has to be finished,” he said.

He added that a group of over 20 cabin crew members have already been sent to Ethiopia for training and that this progress cannot be reversed due some research which he said could have earlier been tabled to the ministry. Lungu has since called on academicians to instead help in how further the IDC and Ethiopian Airlines mitigating risks but not abandon the project which has already moved two thirds ahead.

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Permanent secretary - PS at the ministry

Tech

In order to satisfy future electricity demand and develop the energy sector in Zambia, Energy Minister Matthew Nkhuwa has launched the Electricity Cost of Service study which will undertake the load forecast and develop the system expansion plan to meet the future demand in an effective manner.

Nkhuwa has explained that the study which has been made possible with financing from the African Development Bank – AfDB will establish the cost of generating, transmitting and distributing power in the most efficient manner and translating the costs into the unit cost of energy for each customer category.

Speaking during the launch of the study in Lusaka on December 3, 2019, the Energy minister added that energy being an engine for economic growth and development in the country, needs cooperating partners and support from various stakeholders for it to thrive. ERB has engaged Energy Markets and Regulatory consultants – EMRC of the UK at a cost of about US$600,000.

And commenting on the increase of fuel pump prices, Nkhuwa said the move is eminent due to the current depreciation of the Kwacha which is currently trading at K14.80 adding that the Energy Regulatory Board – ERB will analyze the effect of the depreciation of the Kwacha and determine how much can be increased in t fuel pump prices so that the price enables importers to make orders for the next quarter.

At the same event ERB Executive director Langiwe Lungu said the study will review the current electricity demand forecast undertaken by Japan International Corporation Agency – JICA in 2010, on behalf of the ministry of energy and prepare a revised demand forecast for the next 20 years.

She added that the study will also carry out a detailed review of ZESCO’s cost structure, the current level and will benchmark ZESCO’s cost with the cost of efficient utilities with similar operating conditions as ZESCO and indicate areas of improvement to acceptable efficient performance and efficiency standards.

“ERB will have the overall responsibility for the management and supervision of the study and in order to ensure that stakeholders are not left behind, consultative workshops have been planned during the course of the study to engage all the industry key stakeholders. They will also require to engage stakeholders during data collection, “She said.

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In order to satisfy future electricity demand

Markets

Zambia has recorded a trade surplus of K147 million (about US$10.5 million) in October 2019 from a trade deficit of K732 million in September 2019, meaning that the country exported more goods that it imported in nominal terms for the month of October.

Announcing the development in Lusaka on November 28, 2019, Zambia Statistics Agency – Zamstats Interim Statistician General Mulenga Musepa has disclosed that although increases were observed in both imports and exports, the increase in exports which mainly comprised of domestic exports increased by 18% from K6,566 million in September 2019 to K7,756 million in October 2019.

Musepa has attributed the increase to the 34% increase in export earnings from intermediate or semi processed goods category. He added that imports increased by 4% from about K7,300 million in September 2019 to K7,609  million in October 2019 and that increase in exports was mainly attributed to the increase in intermediate and consumer goods imports by 14.9% and 7.4% respectively.

Musepa further reviewed that the performance of traditional exports (Copper related exports) earnings increased by 35% from K3,927 million in September 2019 to K5,305 million in October 2019 and in total exports recorded a 68% in revenue earnings in October 2019.

Meanwhile, the non-traditional exports – non copper related exports – NTEs earnings decreased by 7% from K2,639 million in September 2019 to K2,451 million in October 2019 and in total NTE’s recorded a 32% in earnings in October 2019.

And the volume of refined copper exported in October 2019 increased by 34% from 51,586 metric tonnes in September 2019 to about 69,000 metric tonnes in October 2019. “Copper prices on the London Metal Exchange – LME market for the corresponding months decreased from about US$5,746 per metric tonnes in September 2019 to about US$5,743 per metric tonnes in October 2019,” He added.

But Zambia has been running massive trade deficits with South Africa which is the main source of its consumer goods sold in shopping malls and chains stores dotted around the country. The other major import bill for Zambia is from  crude oil imports mostly from Saudi Arabia and the Gulf region.

The ministry of trade is yet to negotiate tangible trade deals with either South Africa and Saudi Arabia/UAE to narrow the trade deficit gap and ensure that these relationships become win win for Zambia. The country is also yet to fully leverage the big export markets to neighboring Democratic Republic of the Congo – DRC and Angola which can be executed by local traders.

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Zambia has recorded a trade surplus of

Markets

Retail business activity in the city of Lusaka today November 29, 2019 recorded escalated activity and was boosted up as selected stores and supermarkets which have placed from 50 to about 75% discounts and below on selected items to live up to the “Black Friday” sales bonanza.

Black Friday is a name given to the shopping day after Thanksgiving in the United States of America which falls on 28th November this year. Americans originally called it Black Friday because the volume of shoppers created traffic accidents and violence while shopping for items placed on heavy discounts.

Zambian retailers had from about 2010 also adopted Black Friday as a shopping holiday which sees buyers purchase selected items at a heavily discounted prices of 50% or more off depending on the type of product.

A check by the Zambian Business Times –ZBT crew at Manda Hill Shopping Mall found a crowd of people at the mall waiting to buy items selected for discounts in different stores. Some shoppers even reached the mall as early as 04hrs in them morning which resulted in congestion  as consumers scrambled to buy items from the different stores at cheaper prices. Traffic was also jammed in most streets.

At other shopping centers, reports of theft and violence have been reported as shop owners could not control individuals who were squeezing themselves to enter the stoles resulting in some stores being vandalized and looted.

While the long queues and scramble can be interpreted in different ways, some consumers talked to by ZBT at the shopping centers have stated that despite the day being busy, Black Friday has advantaged most individuals to getting items at a cheaper in view of the current hardships the economy is generally going through.

Others have noticed lack of security in most stores which resulted to theft among individuals as places where crowded hence urged shop owners to next year put in place security and other crowd control measures if such promotions are to be put in place smoothly and benefit more customers.

According to world leading online retailer Amazon, Black Friday is also observed in 14 other markets worldwide which include, the United State, Mexico, Canada, Japan, Australia, the UK, Germany, France, Italy, Spain, Brazil, the UAE, India, Singapore, with some African countries like South Africa and Zambia now being active participants.

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Retail business activity in the city of

Lifestyle

Lafarge Zambia has donated over K190,000 to four charities from the proceeds of the Lafarge Lusaka Marathon as part of its Corporate Social Responsibility (CSR). Speaking at the Media breakfast held in Lusaka on November 15, 2019, attended by Zambian Business Times-ZBT, Lafarge Zambia Board Chairman, Muna Huntuba presented the donation to the charities who received K48, 000 each.

The recipients of the donation were Chilanga Mother of Mercy Hospice, Livingstone Central Hospital, Copperbelt’s Arthur Davison Children’s Hospital and UTH Cancer Disease  in Lusaka.

‘‘I am pleased to see the positive benefits that the event yields, such as the donations we are handing over today, as well as the growing number of runners and participating countries. It shows that we are truly on course with our objectives,’’ said Hantuba.

He also thanked all the sponsors of the Lafarge Lusaka Marathon 2019, and urged them to continue partnering with Lafarge Zambia for a safer and bigger Marathon in 2020. The Chairman further assured the country that as the market leader in the construction industry, Lafarge will strive to make the Lafarge Lusaka Marathon and Lafarge Corporate Golf Day; become major events not only in Lusaka but across te country and the world.

Hantuba reiterated that Health and Safety is a core value for Lafarge and runners were guaranteed total safety as the company had started engaging Government authorities, to have total road closure; so that the safety of the runners is not compromised. He has since encouraged people to start registering for the 2020 Lafarge Lusaka Marathon.

Meanwhile, Lafarge Zambia Chief Executive Officer Jimmy Khan announced that 7th Edition of the Lafarge Lusaka Marathon will take place on May 9th 2020 at Levy Mall. He also officially opened all registrations both online and walk-in at ZAAA head offices in Rhodes park.

‘‘The registration amount remains the same, K350 for 42 km and 21 km, 10km is K200 and 5km is K100. Khan also said the theme for the 2020 Marathon is ‘‘Build for Life’’, adding that for over 70 years, Lafarge Zambia has built dreams and iconic infrastructure across the country, as well as building lives albeit in another way; fitness and well-being.

And Zambia Amateur Athletic Association president Elias Mpondela thanked Lafarge Zambia for supporting Athletics in Zambia.

‘‘From the time we started the Marathon, we are able to help athletes in Zambia and it is through this partnership that we are able to bring a gold medal through Sydney Siame. We will continue to work hard and grow the Lusaka Marathon just like any other city in the world,’’ he said.

Speaking on behalf of other beneficiaries, Sr Jeremia Mrowiec, thanked Lafarge for the continued support to the health institutions in Zambia. She further thanked the Marathon runners who continue to register and support the Marathon because it is through them that these health institutions are supported.

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Lafarge Zambia has donated over K190,000 to