Connect with:
Thursday / June 12.
logo
mobile-logo
HomeStandard Blog Whole Post (Page 212)
Markets

Chairman of the Cooperating Partners Group – CPG, German Head of Development Cooperation Christoph Fritz has urged newly appointed  Minister of Finance Dr. Bwalya Ngandu to continue with the country’s efforts towards acquisition of an IMF Supported Economic Programme in order to expand the financing options available to Zambia by way of support from other cooperating partners.

Speaking when Cooperating Partners Group – CPG paid a courtesy call on the finance Minister in Lusaka on June 23th 2019, Dr. Ng’andu said there is need for immediate action to push policy implementation as required by the country.

Finance Minister Bwalya Ng’andu says his job honeymoon is short as the terms of reference given to him by the Republican President to stabilize and grow the economy offer limited room for delay.

“Hard and smart work is beckoning, the need for action is immediate, my honeymoon is short and my Ministry will require your unfettered support to push policy implementation and get work done,” he told the CPG delegation.

Dr. Ng’andu however pledged to meet all the partners individually in order to reach common ground on areas that need attention in order to stimulate faster implementation of development programmes.

The Cooperating Partners have restated their commitment to support the implementation of the Seventh National Development Plan and the delegation has reaffirmed their support towards building a strong partnership with the Zambian Government.

Christoph Fritz on behalf of CPG further expressed emphasized the need for the Zambian Government to implement austerity measures as it is a very important message to the international community because it demonstrates the resolve of the authorities in taking corrective measures in the country’s progression towards fiscal health.

Among the other issues discussed in the courtesy meeting were debt management, financial governance, private sector development, value for money public investments, protection of social spending, and drought responsiveness.

Further, the cooperating partners listed the e-voucher programme and the economic stabilisation and growth reforms among the issues that need the closer attention of the Zambian Government.

Contributing to the proceedings, African Development Bank Country Manager Mary Monyau announced the banks approval of a support package that will help Zambia with capacity improvement in domestic resource mobilization and debt management.

Newly appointed Minister Dr. Ng’andu has taken a hot job and market players are eagerly waiting to see what new policy emphasis will be pursued more vigorously than the others. He is currently handling a delicate situation as market players line up to try to influence the policy direction.

Various international and local players are jostling to meet him to try and influence the country’s economic direction of policy in their respective interests and it remains to be seen which direction the new minister will tilt towards. He gave a hint at his swearing in that most policies are already there and its more the implementation that the availability of credible policies that is lacking.

4 Comments
0 likes

Chairman of the Cooperating Partners Group -

Markets

The World Bank has called for the Zambian government to undertake bold fiscal and structural policy reforms to preserve macroeconomic stability, boost business and market confidence, and improve its growth prospects for 2019 and beyond in line with the Zambia Plus economic program.

The latest World Bank’s Economic Brief on Zambia has indicated that Zambia’s path to economic recovery remains weak, reflecting both exogenous and policy uncertainties.

The brief has indicated that despite the Zambian economy growing by 3.7 percent in 2018 from 3.5 percent in 2017, a stronger recovery was undermined by lower crop harvest and fiscal slippages that led to the accumulation of new public expenditure arrears and high government borrowing that impacted private sector activity.

Speaking at the launch of the economic brief in Lusaka last week, World Bank Senor Economist Samson Kwalingana said under the current policies, growth is forecasted to weaken to 2.5 percent in 2019 and remain below 3 percent over the medium-term while inflation remained within the authorities’ target range of 6-8 percent in 2018, averaging 7.5 percent for the year, pressures are now mounting, leading the central bank to tighten its monetary policy stance in May 2019 for the first time in over two years.

The brief also suggests some policy options including (i) front-loading fiscal consolidation to return to medium risk of debt distress and create fiscal space for inclusive growth and strengthening debt management to reduce the debt service burden and minimize debt-related vulnerabilities.

In addition it suggests rebuilding foreign exchange reserves to buttress external stability, and implementing plans to improve the financial and operational sustainability of electricity utility ZESCO and enhance the transparency of of operations and performance of State-Owned Enterprises (SOEs).

The report highlights multiple opportunities that Zambia’s abundant renewable natural resources present to support sustainable economic growth. “Zambia’s economy has thus far been dominated by discoveries, expansion, and fluctuations in the minerals sector, but going forward, the country needs to harness its renewable natural resource endowment to promote sustainable growth”.

“While the contribution of renewable resources like agricultural land, forestry and fishing to GDP has declined in recent years, the sector’s linkages with the rest of the economy remain significant,” said Ina Ruthenberg, World Bank Country Manager for Zambia.

Zambia has recently undertaken a change in Finance Minister, with former Bank of Zambia Deputy Governor Dr. Bwalya Ngandu taking over from ex-banker Magerate Mwanakatwe. The move has largely being welcome by the markets and more is expected from the new minister.

0 Comments
0 likes

The World Bank has called for the

Markets

Newly appointed Minister of Finance Dr. Bwalya Ng’andu has confirmed that the implementation of sales tax is on and that government is currently addressing issues raised from the consultation process.  This confirmation follows an earlier hint he gave after he was sworn in as replacement for Magerate Mwanakatwe by President Lungu when he  indicated that the timing of implementation would need to be reviewed which led to speculation that the Goods and Services Tax – GST may be scrapped off completely.

Dr. Ng’andu has explained that having finalized countrywide consultations on the switch from Value Added Tax – VAT to Sales Tax , the ministry has taken into consideration concerns raised which include cascading effects due to multiple value chains, the need to avoid loss of employment due to possibilities of value chains dying off , the timing of introducing of the tax and the need to protect manufacturers.

Responding to a question raised by the Zambian Business Times – ZBT during a public briefing the performance of the Zambian economy in the second quarter (Q2) of 2019 on June 17th 2019 in Lusaka, the Minister said concerns raised will be addressed as the process evolves in Parliament.

The added that the Ministry has issued a request for proposals for tax and non-tax measures for consideration in the 2020 national budget and has since appealed to all concerned members of the public to submit their proposals to the Ministry for consideration.

“The Switch from VAT to sales tax is progressing in Parliament as I earlier indicated and the completion of audits for large tax payers particularly in the mining sector is being done. However, Zambia will implement the sales tax provided we analyze issues that have been raised by some stakeholder during the consultation process,” he said.

He further said the implementation of the Land tilling programme will soon result in an increased pace in issuance of land titles as most challenges have now been resolved. Title deeds are essential not only for the social aspect of security property rights, but also for the growth of the property market as well as a key source of revenue through property transfer tax – PPT through the Zambia Revenue Authority.

Meanwhile, giving an update of the performance of local currency, the Kwacha, Dr Ng’andu disclosed that the exchange rate of the Kwacha against major tradable currencies generally depreciated in the second quarter of 2019, relative to the first quarter and that the depreciation was largely on account of elevated demand for foreign currency mostly for the purchase of petroleum products compounded by subdued supply.

He added that the Kwacha depreciated by 7.6% against the US Dollar, trading at an average of K12.83 per US Dollar from K11.96 during the first quarter of 2019 adding that it also depreciated by 6.1%, 6.5% and 4.9% against the British Pound, the Euro and the South African Rand, respectively.

The Minister, who was the erstwhile Bank of Zambia Deputy Governor said government remains committed to continue engaging stakeholders in interactions with regard to growing the country’s economy and come up with solutions to the challenges being faced. There is great expectations from the new Finance Minister as he has moved into office when the economic sentiment is at its lowest ebb.

0 Comments
0 likes

Newly appointed Minister of Finance Dr. Bwalya

Sport

The Football Association of Zambia – FAZ has signed a Memorandum of Understanding – MOU with Futsal & Sports Complex aimed at promoting talent identification and youth football development.

Speaking during the singing in ceremony at Football House in Lusaka on June 10th 2019, Futsal & Sports Complex head of business development Mwenda Silumesii stated that the partnership would contribute to restoring Zambia’s high ranking position in continental football.

Mwenda said Futsal and Sports Complex will also open 11-aside facilities that will be made available for use by the national teams.

And FAZ deputy general secretary Joseph Chimpampwe said the partnership with the Futsal & Sports Complex will promote talent identification and youth football through use of the facility. Chimpampwe said this falls in line with the FAZ 10-year strategy that will see partnerships and collaboration aimed towards growing professional football in Zambia. He added that the MOU would provide a foundation to build a pool of professional footballers of various age groups.

This is in relation to running the Youth League, as you know the football pyramid is composed of three major components, at the bottom there is the mass (amateur), then there is the academy and at the top we have the high performers – the professionals.

We as FAZ were privileged to meet the Barca Academy head and just recently, they took youth teams to Spain. The Barca philosophy is very strong, so it makes us happy to partner with Futsal & Sports Complex to develop youth football.” he said.

At the same event FAZ technical director Lyson Zulu says the signing ceremony marks the beginning of a talent identification strategy that will be replicated across the country, where young talent will be nurtured and grown.

He said the partnership will support the creation of a FAZ Youth League for Under 10, Under 12, Under 14 and Under 16 players to participate in training and build teams for regional and international competitions.

“The initial one year partnership between FAZ and Futsal & Sports Complex will develop and up-skill youth football in Zambia and will establish, manage and operate a youth league programme for Under 10, Under 12, Under 14 and Under 16 players across the country, commencing with a pilot project in Lusaka” he said.

Spanish La Liga giants, Futbol Club Barcelona, established the FCB Soccer Academy in Lusaka in 2017. It targets young people between the ages of 6 and 16 and aims to teach football in the Barça way, training in line with current FC Barcelona methodology.

The Futsal and Sports Complex Limited initiated and operate the Barca Academy in Lusaka with over 200 youths enrolled and a training programme for over 18 local coaches. They have also operated the FAZ Futsal League since 2008 and will continue to develop and grow it at both junior and senior level in Lusaka and other provinces.

0 Comments
0 likes

The Football Association of Zambia - FAZ

Mining

Chief Government Spokesperson Dora Siliya has indicated that government’s decision to liquidate Konkola Copper Mine – KCM should not be politicized as it is meant to find an equity partner to take over the mine and invest in the country’s economy.

Responding to a question during a press briefing at Lusaka’s government complex on June 4th 2019, Siliya said the move by government on the liquidation of KCM is a reflection that the mine was facing challenges in finances hence the need to address the matter.

She disclosed that copper was being sold at the mine but Vedanta had no money to pay its employees saying the situation attracted attention over its operations and government had to come on board to find solutions that will benefit Zambian workers,  contractors and the nation at the mine.

Siliya further indicated that assets at the mine will not be sold as they belong to the people of Zambia saying government only wants to change a business partner to continue running KCM and get dividends to invest in other sectors of the economy.

“If KCM was doing well, why was there no money in the account to pay salaries to its workers, to pay local contractors etc and yet copper was being sold every day? Sometimes we reduce everything to politicking but we have to see through this noise and note what is really happening because if the mine was really doing well they should be money sitting in the account but the fact that money is not there, government will come on board and make sure that the takeover of KCM is done on behalf of the people of Zambia because challenges were there,” she said.

She added that speculations from the public stating that KCM will be taken over by a Chinese investor are not true as government stands at seeing the mine benefit Zambians adding that the liquidation process has not come to an end hence people should allow the matter get to its conclusion before making any comments.

The prospective equity partners are now undertaking the due diligence process. The companies that have so far expressed interest are from Canada, China, Turkey, Switzerland among others. President Lungu had announced that the new equity partner is expected to be announced before end of July, 2019.

KCM was owned by Indian mining group, Vedanta but relations with Zambia soured after the Chairman was recording claiming that he duped the then Zambian Government to buy the mine cheaply. He further went on to claim that he made millions of US dollars but the mine at the same time was always late at paying salaries and contractors.

Vedanta-KCM  social responsibility was also questionable as even the two football team that were sponsored by the mine, Nchanga Rangers football club and Konkola Blades football club remained under funded sparking loss of confidence even from the local community.

1 Comment
0 likes

Chief Government Spokesperson Dora Siliya has indicated

Lifestyle

The National Biosafety Authority – NBA has granted four companies new permits to import products that may contain genetically modified organisms (GMOs).

NBA Chairperson Dr. Paul Zambezi explained that the permits have been granted to Gatbro Distributors, Pick n Pay, Southern National Import and Export Limited and Choppies Super Stores market.

Dr. Zambezi stated that following a Board decision at the just ended Board meeting held on 5th July 2019 in Lusaka. The NBA board has approved the granting of the permits to the four companies.

In May 2019, the Scientific Advisory Committee of the NBA recommended to the Board the issuance of permits after risk assessment was conducted on the products that may contain GMOs and were found to be safe for human consumption.

Among the products which Gatbro intends to import include Bokomo Oates, Pro-Nutro instant porridge, Bokomo Cornflakes, Bisto and Knorr soups, Simba Doritos, Bakers snack time, Cheese and some other white label branded products which may contain GMOs among others.

In a statement made available to the Zambian Business Times – ZBT, Dr. Zambezi further said products which have been allowed to be on the Zambian market by the authority have been established to be safe for consumers but reiterated that as food safety is important, the authority will not allow any food or feed which is not safe for either human consumption nor for as animal feed to be on the market.

“As the NBA we would like to reiterate that food safety is very important and we cannot allow any food or feed which is not safe for human consumption nor for use as animal feed to be on the market. As such products which have been allowed to be on the Zambian market by the NBA have been established to be safe for consumers by the scientific advisory committee” Dr. Zambezi said.

He added that the authority is currently reviewing other permits applications, which are at various stages of processing. The public will be informed and that all these products are labeled to say that they ‘may contain GMOs’.

Members of the public have expressed concern on the ability of equipment and adequate scientific know how to fully test and track the effects of consumption of imported products which contain GMOs. Others have challenged local manufacturers to produce alternative organic local products so that consumers can make the decision on weather to consume these imported GMO containing products.

1 Comment
0 likes

The National Biosafety Authority - NBA has

Companies

The Zambia Federation of Employers – ZFE has raised concerns over the administration costs that will come with the set up of the National Health Insurance Scheme – NHIS saying the projected K100 million per month collections from workers and employers based on 1% gross payroll contributions will come with a huge administrative cost, that will come from the new management team, the recruitment of staff and establishment of new structures throughout the country.

Last week, Health Minister Chitalu Chilufya announced that 1% gross payroll deduction has been agreed and that the National Health Insurance Scheme will begin operating and deduction end of July. This is the basis of the estimation that the scheme will raise K100 million per month from the 700,000 formally employed Zambians.

ZFE acting President Steven Sikombe says the objectives of the scheme as stipulated in the act is to provide for sound financing for a universal health service in the country but that if a huge sum of money is spent in administrative costs means the objective will not be realized.

Addressing the media in Lusaka on June 9th 2019, Sikombe expressed concern as to why the National Insurance Management Authority newly appointed Director General James Kapasa proceeded with the announcements about the commencement of deduction from worker’s gross salaries when Dr Malama, the permeant secretary of the Ministry of Health attended the consultative meeting at which both ZCTU and ZFE made submissions on how the scheme can be managed for the benefit of every Zambian.

He has however accused the Health Minister and the Director General of not respecting social dialogue and simply despise the important role that legally created stakeholder organizations of workers and employer’s play in national policy dialogue.

“Already we have some information that the salary of the Director General of the National Insurance Management Authority is K170 000.00 per month and if this is true, how much will be spent in total on personal emoluments when the full establishment of staff is employed?

In any case how can a health scheme that is meant to benefit members of the public pay a huge salary to its Chief Executive Officer before the scheme even starts operating?,” he questioned.

Sikombe has however suggested that the scheme should have been embedded into the National Pension Scheme Authority – NAPSA which should use its existing structure to collect and manage the funds while the ministry could be responsible for accrediting health center and administration of medical services.

He also called on Health Minister Chitalu Chilufya to open a meaningful dialogue with key stakeholders on the matter, failure to which the National Health Insurance Scheme will fail, as compliance levels are most likely to be low.

0 Comments
0 likes

The Zambia Federation of Employers - ZFE

Sport

Zanaco Football Club – Zanaco FC has announced that the bank sponsored side will be adding to its squad, seven new players ahead of the 2019/20 season Zambia Super League to strengthen its squad.

The players who have joined the club are Mwansa Nsofwa, Tiberius Lombard (both from Lusaka Dynamos), Kebson Kamanga, Belchance Makiese (Both from Nkwazi), Emmanuel Okutu from Kabwe Warriors as well as returnees Damiano Kola and former captain Ziyo Tembo.

In a statement made available to the Zambian Business Times – ZBT, Zanaco Football Club Media and Public Relations Oficer Martha Nshimbi said Tembo has penned a season long contract, while Damiano Kola’s contract runs until 2022 and the rest of the new additions have signed two year contracts. Zanaco FC did not state the total amount spent to buy the new players.

This brings the number of new players who have joined the club for the 2019/20 season to eight, including Lawrence Chungu who was signed earlier this year. Zanaco FC is a top side in Zambia and recognized for its contribution to professionalizing Zambian football.

Sensational Zanaco FC has also hinted that it’s beefing up its technical bench with the addition of two new members to it’s current coaching staff as they bring in another coach and a physical trainer. The club is expected to keep its faith in head coach Numba Mumamba.

The club attracts top players locally and from within the region with its better player packages and well organized administration and club management team. It has now established itself as a credible contender for the league title and has made progress with its supporters looking forward to the team becoming an established contender for African club championships.

The club now has players from Congo DR, Namibia and Ghana, who are expected to contribute to increased depth especially for continental championships and challenge the local players.

0 Comments
0 likes

Zanaco Football Club - Zanaco FC has

Mining

Mines Ministry Permanent Secretary Paul Chanda says government has made progress in promoting local participation in the mining sector to empower citizens and increase the country’s economic resilience and competitiveness by diversifying to other mineral resources apart from copper.

Chanda told the Zambian Business Times – ZBT in an exclusive interview that copper is Zambia’s major export earner and that government has also taken recognition of other minerals produced such as cobalt, silver and gold hence the need to closely monitor and promote the wider mining industry.

He said Zambians with the help of government have the capacity to run the mines and that gold mining has been identified in areas like North-Western, Central and Eastern provinces as one area were locals can control the sector if well coordinated and implemented.

Chanda further said that the ministry has backed the formation of cooperatives in local communities to start engaging in gold mining adding that ZCCH-IH has also been involved to provide and support the set up of a gold buying company that will ensure that local miners get better prices for their commodity.

ZCCM – IH would also support through set up of a company that can invest in the right machines and equipment to drive the processing and facilitate exports to further boost this industry. He stated the government is aware of illegal miners and unscrupulous buyers invading gold mining areas saying the illegal miners and traders can only be removed with the help the ministry of home affairs and Ministry of Commerce.

“We are aware of areas where gold is being produced but the problem is people do not have the capacity to operate in the mines hence these areas have been invaded by illegal miners who can only be removed with the help of the ministry of home affairs and we are doing that with other players like the ministry of commerce so that we find a market for this gold being produced in those areas,”

He added that the ministry is also showcasing a community or cooperative mine in Kasempa district of North Western were gold mining has also been recognized but that government has not made much progress due to lack of unity among community members in the area.

“We wanted to support the formation of a community mine in Kasempa were residents come together with their chiefs to partner with someone and we give them a mining license but we have challenges to do that because of dis-unity among the people in the area, however we are still looking at other ways to promote local peoples involvement and development in this area.” he said.

Unlike Copper, gold mining is less capital intensive and this makes this sector a good candidate for local participation and control of the industry. The copper mining industry is more capital intensive and technical expertise needed to fully exploit the ores need much more capital when compared to gold mining.

Finance Minister Margerate Mwanakatwe has indicated that Zambia will include Gold as an alternative and additional form to hold foreign currency reserves for the country. Gold is an internationally approved form to hold national reserves in and if Zambia can create proper value chains around gold mining, processing and exports, the mineral could become a hedge for cyclical international copper prices.

0 Comments
0 likes

Mines Ministry Permanent Secretary Paul Chanda says

Tech

Local Government Minister Vincent Mwale has disclosed that government is introducing ICT systems that will enable marketers pay money directly into the council account through a phone (mobile money) or bank card to avoid collection of hard cash by unscrupulous people which ends up depriving the council the much needed revenue

In an exclusive interview with the Zambian Business Times – ZBT, Mwale revealed that apart from direct payment of levies through mobile phones and bank cards, the government t has made progress towards the re-construction of city market and finding the possible financier for an initial estimation by a task force team of about US$90 million project.

The reconstructed and expanded city market market will consist of 14,000 trading spaces and will involve demolition of Munyuale market and old City market to create space for the new modern market, adding that designs have already made and engineers are ready to start the works once the financier approves.

He disclosed that delays towards the re-construction of the market are due to financing challenges as the monies contributed after the gutting of the market only amounted to K 1.7 million hence government has been finding possible ways to engage a financier for the project.

He added that the K1.7 million was however contributed to the construction of Simon Mwewa market, a K70 million project which will also benefit victims of City market and those on the streets.

“We know it’s been two years now since city market got gutted and we have been looking for money all these years because this disaster is costing us a lot of money and we had a mining company that offered to build the market but because of the changes in the tax regime involving mining taxes, they withdrew their offer hence we hard to go back to square one and start looking for other financiers, fortunately we have one possible financier who is promising and once we conclude with the engagement, works will definitely start,” he said.

Meanwhile, the minister has warned the council police officers to stop treating vendors in an in-human manner saying there are have been reports that some officers are taking advantage of the situation by grabbing goods from vendors. He said government will find ways of creating a space for vendors and that those found disputing against the guidance given will face the law.

The local government system as it stands today needs tangible reforms in order to be of service to its residents. Most of the revenue collection in Zambia is centralized and the collection of monies by local authorities remains a challenge. Services such as business levies, taxi operations and ground rates which would provide a financial base for the councils remain uncollected due to sensitives and sometimes lack of innovation on the part of council management.

0 Comments
0 likes

Local Government Minister Vincent Mwale has disclosed