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Companies

Medeem, a land rights documentation company has signed a memorandum of understanding – MOU with AB bank to enable small and medium enterprise-SMEs access loans that will assist in developing their agriculture business.

Speaking during the signing in ceremony, AB Bank Chief Credit Officer Nurullo Mashrabov said the Bank is targeting vulnerable people in the country who finds it difficult to access a loan from a bank due to lack of collateral.

He says the bank will be working with Medeem in identifying some of its clients who have the potential to excel in the agriculture business but do not have capital to start their business. He stated that many vulnerable people in communities do not have legal land documentation from the authority due to geographical locality that makes it difficult for them to have access to loan financing from the Banks.

“Most people living in rural areas have the potential to excel in the agriculture sector but do not have access to financing due to lack of collateral that qualifies one to access a loan from a bank. What we are trying to do is assist farmers and SMEs who have traditional land and are registered with Medeem have access to financing which will enable them develop the land,” he said.

And Medeem Business Development Manager Musenge Nsakilwa said her organization which deals in assisting people living on traditional land acquire documentation is delighted to have signed the MoU with AB bank that will enable their clients not only have legal documents to the land they occupy but also have access to financing that will help boost their agriculture businesses.

She said the bank will now be able to recognize their clients as potential illegible borrowers for a loan of that will help them activate the land they occupy. “We are partnering with AB Bank in ensuring that our clients who have the potential to make progress in the agriculture sector have access to financing without restrictions.

We will make recommendations to the bank on potential clients who we feel can pay back a loan if given one. The bank will also do its own investigation just to ensure that a client we recommend meets the loan requirements set by the bank,” she said.

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Medeem, a land rights documentation company has

Mining

Vedanta has called on the Government of Zambia to allow unhindered passage of its experts, employees or contractors of its former local unit in Zambia – KCM inside, into and out of the country. Konkola Copper Mines (KCM) is one of Zambia’s largest copper producers, with operations in Chingola, Chililabombwe, Kitwe and Nampundwe. KCM is a subsidiary of Vedanta Resources Limited (“Vedanta”).

Vedanta Resources Limited has challenged the decision of the Lusaka High Court to grant an ex parte order appointing a provisional liquidator for KCM following the liquidation application which was brought against KCM by ZCCM-IH.

Vedanta intends to fully defend its legal right and has called on the Government of Zambia to meet with Vedanta to come up with mutually agreeable solutions to the current situation happening at the mining firm.

In a statement availed to the Zambian Business Times – ZBT, Vedanta has expressed concerns about the intentions of the applicants and the procedures that were followed by ZCCM-IH as a representative of government to obtain a provisional liquidation order on an ex parte basis against KCM in an apparent misuse of the legal process to date.

The company is however relying on the protection of its rights under Zambian law and international norms. Some concerns in the statement indicate that ZCCM-IH is not a major creditor of KCM and that the powers granted to the provisional liquidator by the Lusaka High Court most closely resemble those that would be granted to a liquidator on the final winding up of a business.

The Zambian state-owned ZCCM-IH holds a significant shareholding (20.6%) in KCM. Since 2004, KCM claimed that they have invested more than US$3 billion to upgrade and expand company assets. Today it is of the largest private sector employer in the country and maintains one of the most comprehensive corporate social investment programs. Efforts to get a comment from ZCCM-IH proved futile with indications that the transaction is too sensitive to comment on.could not be reached.

Mines Minister, Richard Musukwa has announced that the KCM liquidation is a one off incidence with  and that the government has no intention of nationalizing the mining industry. He confirmed that the government is ready to meet the Vedanta team as it operates on an open door policy.

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Vedanta has called on the Government of

Markets

Bank of Zambia – BOZ Governor Dr. Kalyalya disclosed in response to a question from the Zambian Business Times – ZBT that supply of forex from the mine has been declining failing to US$435.1 million in the first quarter of 2019 compared to US$683.1 million in the first quarter of 2018.

He explained that the trend has been downwards hence the need for diversifying export earnings being an imperative. He warned that if the country continues to rely on copper mining companies alone, the country will risk ending up having constraints in the supply of foreign exchange.

In addition, the governor revealed that this was despite the copper prices having held up and slightly increased to US$6,226 per metric tonnes in the first quarter of 2019 compared to US$6,164 in the last quarter of 2018 but projections going forward suggest that there could be some risks to the price.

The Bank of Zambia – BOZ has urged Zambians and especially those with the innovative and business acumen to set up and develop firms that can locally produce goods and services, and later export to step up and help alleviate the Kwacha slide which has massively been weakened relative to other major international convertible currencies.

Responding to another question raised by the Zambian Business Times – ZBT, BOZ governor Dr. Denny Kalyalya stated that the movement in the Kwacha value relative to other currencies  is affected by the balance between the supply and demand of foreign exchange and that the Kwacha’s fundamental strength is determined by economic activities of Zambian people in the country.

A review of the BOZ Monetary Policy Committee – MPC report also indicated that since the beginning of the second quarter of 2019, the Kwacha has been under severe pressure depreciating by 14.9% against the US dollar.

Dr. Kalyalya has attributed the depreciation of Kwacha to elevated demand for petroleum imports, reduced supply for foreign exchange and negative market sentiments. He further mentioned that the Kwacha was relatively stable in the first quarter of 2019 weakening marginally by 0.6% to an average of K11.95/US dollars.

And BOZ Deputy Government Dr. Bwalya N’gandu said the central bank is in the process of calibersring the amount of Kwacha available to those participating in the market as a measure to aid of strengthening and balancing of the local currency, the Kwacha.

Dr. Ng’andu said the central bank will continue to do its best to stabilize the Kwacha and also reiterated the need by local economic players to play their role in order to calm the situation.

“We will go into the foreign exchange market with dollars but the idea is not to change the direction of the currency because that will be determined by the fundamental relationship between supply and demand, BOZ will just deal with fluctuations and look at how to flatten them. We will do our part to stabilize the currency and we expect economic players to do their own as well,” he said without pointing out the actual players he referred to.

 

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Bank of Zambia - BOZ Governor Dr.

Mining

The Engineering Institute of Zambia – EIZ has identified serious shortcomings in the operations of Vedanta owned Konkola Copper Mines – KCM following its recent happenings. KCM operates mines in Chingola at Nchanga and Konkola at Chililabombwe.

Addressing the media in Lusaka on May 23rd, 2019 attended by the Zambian Business Times – ZBT, EIZ President Eng. Sydney Matamwandi has cited neglected skills transfer and development, deploying under qualified expatriate personal without the requisite competences in sensitive key management and operational positions by the mining firm.

Matamwandi has further disclosed that the mining company has neglected to complete the Konkola deep mining project resulting into serious shortage of feed into the smelter saying the project would have added significant value to the mining company while creating sustainable employment for citizens.

He has however described the current operations at KCM as regrettable and has observed that the tendency by the mining firm of importing spare parts that could be procured within the country has caused loss of business.

“You may be aware that KCM among all the copper mines in Zambia sits on the whole with the best grade of copper so the future of copper mining in Zambia is at KCM and what happens at KCM affects the mining industry especially that mining is the main stay of our economy,” he said.

He further said Zambia should use the above shortcomings if the viability of the mining operation under the next investor is to be assured and has since urged government to consider investors with skill and financial capabilities in choosing who to run KCM.

Matamwandi further revealed that the institution has commenced engagement with key stakeholders to discuss the above in detail as well as assist in formulating a set of requirements that should be embedded into any agreement to be entered with the potential investors. He is however was hopeful that the lessons learnt will guide the decision for the national going forward.

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The Engineering Institute of Zambia - EIZ

Mining

The Lusaka High Court has signed off an order in which shareholder – ZCCM Investment Holdings has been grated a  the court order to appoint National Airports Board member Milingo Lungu of Messrs Lungu Simwanza and company as provisional liquidator of Konkola Copper Mine – KCM PLC until the conclusion of the hearing of the petition or further order.

ZCCM investment Holdings had today 21st May 2019 filed in an application to the High Court for an ex parte order appointing provisional liquidator for the mentioned appointment to which the high court has signed.

According to the order seen by the Zambian Business Times – ZBT, the Liquidator (Milingo Lungu) will have the following powers: To carry on the business of the respondent company as far as is necessary for the beneficial winding up, make any compromises or arrangements with creditors.

Other powers include to make all agreement on any questions in any way relating to or affecting the company or any of its asserts, to take possession and custody of all asserts of the respondent and bring or defend any action or other illegal proceedings in the name and or on behalf of the respondent.

The liquidator will also have powers to dispose of asserts by public tender or the most transparent manner under the circumstance and to sell the real property and things in action of the respondent by public auction public tender or private contract.

ZBT will keep you updated on the KCM developments…

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The Lusaka High Court has signed off

Sport

The National Olympic Committee Zambia (NOCZ) has sent two Zambian athletes Banny Muziyo (boxer) and Steven Mungandu (Judo) to France to attend a year long training camp in preparation for the Tokyo 2020 Olympics qualifying.

The two athletes are recipient of the Olympic Solidarity Scholarship offered by the International Olympic committee and will be based at the Regional Center Youth and Sports in Yerville France. The International Olympic committee has catered for all the expenses of the athletes including accommodation and transport.

Their Scholarships will run from 1st May 2019 till May 2020 hence the high performance training camp will enable them to take part in the qualifiers for the Tokyo 2020 Olympic Games.

Speaking during the sendoff ceremony at the Kenneth Kaunda International airport, NOCZ Secretary General Boniface Kambikambi urged the athletes to be at their best behavior and train hard towards qualifying for Tokyo 2020 Olympics.

He also urged them to work hard and represent Zambia well. He said language barrier will not be a problem as must of the activities will be conducted in English. “We are happy for this opportunity given to our athletes by the International Olympic Committee to trains our two boys and prepare them for the qualification of the Tokyo 2020 Olympics. I would just like to urge the boys to work hard as they are not only representing themselves but the country as a all,” he said.

And Judo athlete Steven Mungandu said he is proud to be given this opportunity and does not take the opportunity lightly. He says the two athletes will do their best and ensure that they qualify for the Tokyo 2020 olympics.

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The National Olympic Committee Zambia (NOCZ) has

Markets

Government [through its relevant wings such as Bank of Zambia] should create a mechanism which will eliminate shortage of foreign currency – forex in the Zambian financial markets adding that regulation on export earnings should be revisited.
This will ensure that for all exports from Zambia, payments in US dollars or other convertible international currencies are made to Zambian Banks in order to recapitalize the economy to about US$ 22 million per day adding that Zambia is exporting a lot of products whose total exports bill is about US$ 8 billion.
Private Sector Development Association – PSDA President Yusuf Dodia says the increase in year on year inflation rate will slowly affect Zambia’s economic development and the productivity levels as the country is already experiencing a shortage in foreign currency.

According to the Central Statistical Office, the year on year inflation rate for the month of April 2019 has increased to 7.7 percent from 7.5 recorded in March 2019.

PSDA president told Zambia Business Times – ZBT in an exclusive interview that the 0.2 difference recorded from March to April 2019 has high chances of leading the inflation rate to double digit figures as the country’s performance in productivity is already low.

Dodia also mentioned that ZESCO’s proposal to increase electricity tariff if approved by ERB, will lead to the increase in inflation as it will increase the cost of doing business on the market hence affect the growth of the domestic economy in the country.

“There’s need to understand that ZESCO is not a profitable commercial entity but an entity created to support economic development in the country, so if ZESCO decides to increase the electricity tariff it means its not helping or supporting the growth of the nation because the 100% increase in tariffs  will not only affect people’s lives at household level but also affect the business industry as prices in goods and services will also increase,” he said.

He added that the production of goods and services is facilitated through access to electricity, therefore ZESCO should never be looked at as a company whose sole purpose is to make a profit but a company that should support the growth of the nation by providing affordable electricity to people at an affordable rate.

He has however stressed the need by government to go back to the drawing board and re-evaluate the reason of turning public utilities and monopolies into commercial entities as they have potential to undermine the growth of the economy.

“Copying and pasting from other countries will not control situations in our country, as Zambia has its own unique structure and needs hence the need to look at Zambia as an independent country which has certain development needs that government institutions must provide,” he said.

The proposed Zesco tariff hike has since been put on ice. Instead, the cost of service evaluation report has now been revived which is expected shed light on any areas that the electricity utility can look as to improve efficiency and deliver internal cost saves that can be passed on to domestic consumers.

Some members of the public and some former employees of Zesco have indicated that the utility has a bloated workforce, with low to non existent internal performance management. The argument is that with an efficient system, from generation, transmission and distribution, the utility can improve its cash flows and profitability matrices.

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Government [through its relevant wings such as

Markets

Atlas Mara Limited, the sub-Saharan African financial services group, has announced that it has entered into a binding term sheet with Equity Group Holding (ECG) for the exchange of certain banking assets of the Company in four countries for ordinary shares in EGH (the “Proposed Transaction”). The Proposed transaction is subject to confirmatory due diligence and relevant regulatory approvals.

As part of the Proposed Transaction, EGH would acquire Atlas Mara’s 62% shareholding in Banque Populaire du Rwanda (BPR) and, via the Company’s subsidiary ABC Holdings Limited, all of Atlas Mara’s indirect interests in African Banking Corporation Zambia (BancABC Zambia), African Banking Corporation Tanzania (BancABC Tanzania), and African Banking Corporation Mozambique (BancABC Mozambique). The parties would anticipate mergers of their respective banks within each of Rwanda and Tanzania.

Subject to regulatory approval, the individual transactions are expected to close between the fourth quarter of 2019 and the first quarter of 2020, depending on jurisdiction.

Commenting on the Proposed Transaction, James Koni, Managing Director for Atlas Mara Zambia said, “As Atlas Mara Zambia we are very excited about this new partnership for Atlas Mara Zambia. Equity Group Holdings Plc (EGH), which is a large diverse financial services conglomerate has a customer base in excess of 9.2 million in six East & Central African countries, namely Kenya, Rwanda, South Sudan, Democratic Republic of Congo, Uganda and Tanzania, making it one of the largest commercial banks on the African continent by customer numbers.

Equity group is a renowned Bank and has won a number of global accolades. It is ranked by the top 1000 Banker as number 11 globally on return on assets, also ranked number 35 on soundness of capital. The group is rated AA by Moody `s an international rating agency. AA is the second highest investment grade rating after AAA.

Much more importantly Equity Bank is the most innovation Bank and has delivered strong financial inclusion and customer service using technology in East Africa. Our partnership with Equity Group Holdings Plc will give us an opportunity to further consolidate the good work we have done so far for our stakeholders. Equity Group Holdings Plc is a power house for innovation and Digital Banking. This will firmly position Atlas Mara Zambia to bring first class digital banking to Zambia”.

He further stated that this change is at shareholding level and will have no immediate impact on the day to day operations of the Bank .He also confirmed that they will be no loss of employment for Atlas Mare employees. As a matter of fact, we should expect to see further expansion in other financial services such as Insurance and brokerage to provide a holistic financial services.

The new partnership with Equity Group Holdings Plc will also presents a great opportunity for us to adopt best technology and product innovation utilising the expertise from Equity’s unique business model, which offers a tried and tested pathway for growth through innovation.’

However, analysts expect that the top local management teams will have some level of shake up. Like most acquisitions, the top management in the acquired Atlas Mara will face evaluation and there is bound to be some key changes as the new owners may look at taking control and infusing their corporate culture into the acquired operations.

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Atlas Mara Limited, the sub-Saharan African financial

Companies

The Zambia Airports Corporation Limited – ZACL has recorded a reduction of 19,140 passers at its four international airports in the first quarter of 2019 compared to the same period last year.

The corporation recorded a total number of 394,821 general passengers this year, down from 413,961 in the first quarter of 2018 at all four international airports namely Kenneth Kaunda – KKIA, Simon Mwansa Kapwepwe – SMKIA, Harry Mwaanga Nkumbula – HMNIA and Mfuwe.

In a statement made available to the Zambian Business Times – ZBT, Zambia Airport Communications and Brand Manager Mweembe Sikaulu said general managers include both arriving and departing passengers, transit passengers, domestic and international passenger.

The records indicate that there were 66,353 domestic passengers that passed through
the airports in quarter one of 2019 in comparison to 66,729 in the first quarter of 2018 resulting in a decrease of -0.6 per cent adding that Similarly international passengers decreased by 18,764 resulting in a decline of -5.4 per cent increment compared to 2018.

Sikaulu said the notable factors that were attributed for the decline include cancellation of scheduled flights during this quarter by Kenya Airways, South African Airways and Ethiopian Airways each owing to various factors.

In addition, she said the continued suspension of flights by Fastjet Airlines to Dar-es-Salaam and Proflight to Harare also contributed to decline in passengers.

“The general Passenger Movement Performance by Airports indicate that Harry Mwaanga Nkumbula International Airport grew by 3.8% compared to the same period last year. The other airports namely Kenneth Kaunda, Simon Mwansa Kapwepwe and Mfuwe International Airports declined by -6.1%, -4.1% and -11.6% respectively compared to the same period last year,” she said.

Meanwhile, on the Aircraft Movement during the first quarter of 2019, Sikaulu told ZBT that a total of 11,319 aircraft movements were recorded at the four international airports in Lusaka, Livingstone, Ndola and Mfuwe compared 10,833 aircraft movements recorded in the same period last year indicating a growth of 4.5%.

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The Zambia Airports Corporation Limited - ZACL

Agribusiness

Musika Zambia has signed a Memorandum of Understanding with the University of Zambia – UNZA School of Agricultural Sciences aimed at supporting the development and implementation of the entrepreneurial skills training enhanced programme, an initiative by the school of Agricultural Sciences.

Speaking during the signing ceremony held UNZA main campus in Lusaka on May 15th, 2019, Musika Managing Director Reuben Banda said the partnership with the school will demonstrate Musika’s role of stimulating the development of a supportive market environment that provides sustainable opportunities for small holder farmers and entrepreneurs imaging from this programme.

He added that Musika’s financial and technical support to the school of Agricultural sciences is meant to strengthen staff capacities to deliver entrepreneurial training, support the costs associated with conducting a skill need assessment for student and develop an entrepreneurship course module appropriate for implementing the programme.

“As a Zambian owned non-profitable company, our development approach focuses on changing market systems that sow the greatest existing opportunity for pro-poor growth,” he said.

Speaking at the same event UNZA Vice Chancellor Professor Luke Tembo has commended Musika and the School of Agricultural Science for working together in supporting entrepreneurial skills among students and that the school will give maximum support for the benefit of students and the farming community.

He said the entrepreneurial skills training enhanced programme has the potential to catalyze a substantive shift in curriculum development of education institutions resulting in an increased number of students optioning to become entrepreneurs in agribusinesses adding that the activity to be focused on, will be the enhancement of entrepreneurial skills training in the School of Agricultural Sciences.

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Musika Zambia has signed a Memorandum of