Connect with:
Wednesday / May 21.
logo
mobile-logo
HomeStandard Blog Whole Post (Page 196)
Lifestyle

Lusaka City Council – LCC has during the Special Council meeting held in the Council Chamber on December 5, 2019. adoted the K395 million budget for 2020 financial year.

The Special Council meeting was convened to receive and adopt minutes of the Special Finance, Valuation and Commercial Undertakings Committee held on 21st November, 2019.

The budget which was presented by the chairperson of the Committee, Councillor Kelvin Kaunda of Mwembeshi Ward estimates for the financial year 2020 and was prepared on the basis of the Medium Term Expenditure Framework – MTEF and Activity Based Budgeting – ABB in line with the 2009 Budget Manual for Local Authorities and guidance received from government.

The budget was also prepared in line with Council’s 2017 to 2019 Strategic Plan and the Seventh National Development Plan.

In a statement made available to the Zambian Business Times – ZBT by LCC Public Relations Manager Goerge Sichimba, the Council has planned to finance 85 percent of the 2020 budget from locally generated revenues while the remaining 15 percent is expected to come from Central Government through the Constituency Development Fund – CDF and Local Government Equalisation Fund – LGEF.

The Council has set aside in the 2020 budget 40 percent (K134 M) of the locally generated revenue to be channeled towards service provision aimed at improving the level of service provision to the people in the City of Lusaka.

“My committee has set aside 40 percent of the locally generated revenue to channeled towards service provision. This is aimed at improving the level of service provision to our people here in the Greater City of Lusaka,” he said.

The Council has maintained the current level of Ward Development Fund – WDF at the current K13, 893, 000.00 translating into K421, 000.00 per ward.

In order to to achieve the budget target the council has drawn attention to ensuring that it implements fully the collection of parking fees through the use of e-levy system and implement the collection of the council revenues through mobile money by end of first quarter of 2020.

The council further intends to collect arround 10 percent of the accumulated historical debt of K30 million throug the use of the council’s own debt collectors and sheriff’s. Meanwhile, the K395 million budget for 2020 is a reduction from the 2019 budget which stood at K444 million.

0 Comments
0 likes

Lusaka City Council - LCC has during the

Markets

The Bank of Zambia – BOZ has increased minimum statutory reserve ratio by 4 percentage points to 9 % from the current 5 % in a bid to safeguard the stability of the market in order to rein in the adverse impact of the recent exchange rate developments on inflation.

The Bank has announced to all commercial banks that with effect from Monday, December 9, 2019, the minimum statutory reserve ratio on both local and foreign currency deposits including government deposits and Vostro account deposits will be increased by 4 percentage points.

In a statement made available to the Zambian Business Times – ZBT on December 9, 2019, Bank of Zambia Deputy Governor in Operations Francis Chipimo states that in terms of compliance, the revised statutory reserve ratio to 9% will be effected based on the weekly return of selected assets and liabilities as at Wednesday December 18, 2019.

Furthermore, commercial banks will be required to comply with statutory reserve requirements on both local and foreign currency liabilities on a daily basis as opposed to the weekly compliance currently in place.

The Central bank has reiterated that these measures are aimed at restoring and safeguarding stability of the market in order to rein in the adverse impact of the recent exchange rate developments on inflation.

It has since pledged its commitment to closely monitor developments in the macroeconomic environment and that it stands ready to take appropriate action as and when the need arises.
Meanwhile, in response to the act, Bankers Association of Zambia – BAZ Chief Executive Officer Leonard Mwanza said despite how hard the decision by BOZ could be, it was inevitable, considering the prevailing market situation on the free flow of kwacha.

Mwanza has explained in an exclusive interview that the decision was made to ensure that Kwacha is checked to stabilize the wider economy despite how painful it could be for the industry and create tight liquidity.

“We have acknowledged the decision by BOZ to increase the reserve ratio from 5% to 9% percent and we understand that the decision was inevitable especially in this current situation. The decision may be tough on the industry as it will now require banks to report their net positions on both local and foreign liabilities and it will put pressure on the cost of funds, but an action had to be made.” He added

0 Comments
0 likes

The Bank of Zambia – BOZ has

Tech

Zambia’s power utility company ZESCO has announced that despite having paid US$27 million for the importation of power from Eskom of South Africa, it is facing challenges in importing the full 300MW from time to time as it is competing with other counties due the power deficit affecting the entire region.

Zambia’s current power deficit situation had led to government’s decision to import 300MW of power from Eskom but lack of available wheeling passage due to the fact that power has to pass through another country has hampered the process of fully importing the paid for power.

And ZESCO Board Chairperson Dr. Mbita Chitala has explained that there is  limited availability of a wheeling path during off peak period as Zesco , Nampower of Namibia and ZESA of Zimbabwe are all major power importers from Eskom of South Africa, hence Zambia is disadvantaged from importing the full 300 MW.

Addressing the media in Lusaka on December 12, 2019, Dr. Chitala has since disclosed that in order to mitigate the power deficit in the country, the company will soon bring on board the Kafue Gorge Lower Hydro Power Station – KGL which is a 750 MW power plant.

He said the plant will be commissioned in phases and will begin with the first 150MW machine by May 2020 adding that the project is currently at 80% completion stage.

“ZESCO is also expecting about 200MW from the renewable Solar Project in Serenje by end of 2020, and the 15MW Lusiwasi Upper Power Project is another project undergoing commissioning by end of the first quarter in 2020. The aforementioned projects will help to stabilize the power supply in the country going forward,” He added.

ZESCO has further announced its commitment to continue pursing other future interventions which include building up of the 1,200MW Batoka, 1,000MW Luapula Basin Hydro project and the 120MW solar project under the Get-fit renewable energy  program.

Meanwhile, in a separate exclusive interview with the Zambian Business Times – ZBT, ZESCO Director for Strategy and Corporate Affairs Patrick Mwila said that the company is expected to start reducing load shedding hours to less than 12 hours a day as soon as the situation of power balance improves.

Mwila told a ZBT that the company is also expected to announce a new load shedding schedule next week as it is currently undergoing a process of balancing up the timetable, taking advantage of the industrial break to release more power for the domestic users.

Meanwhile, Eskom in South Africa has confirmed in a separate media statement that it has a “non binding” agreement with ZESCO of Zambia were it would only export power when it has excess, contradicting the Zambia version that imports have been hampered by lack of the wheeling path.

This announcement followed South Africa itself imposing a deeper load shedding schedule sighting reduced power generation

0 Comments
0 likes

Zambia's power utility company ZESCO has announced

Markets

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.

2 Comments
0 likes

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.

0 Comments
0 likes

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.

0 Comments
0 likes

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.

0 Comments
0 likes

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.

0 Comments
0 likes

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.

0 Comments
0 likes

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.

0 Comments
0 likes

In order to satisfy future electricity demand