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Companies

The National Road Fund Agency (NRFA) has disclosed that it has collected more than K50 million extra toll fees in the first quarter of 2019. The Agency says it has collected over K266 million (about US$19 million) in toll fees against a target of K261 million in the first quarter.

NRFA Chief Executive Officer Dr. Wallace Mumba says NRFA has distributed over 6,800 toll cards and collected about K21.7 million through electronic toll fees collections.

Dr. Mumba was speaking when NRFA and the Ministry of Livestock and Fisheries signed an agreement in an effort to reduce the disease burden on the livestock sector that has cost the government in excess of K30 million.

The National Road Fund Agency had in February this year been accused of losing K1 billion the claim it refuted and explained that the K1 million was purported to be missing represented the 11,348 vehicle transactions which were found to be misallocated as frequent user discounts.

The agency claimed it had earlier announced that it would be offering discounts to vehicles that frequent passes through the toll gates. The Agency has projected that it would be collecting more than K670 million in tolls every year.

The NRFA was established and is responsible for mobilisation, administration and management of all financial resources in the road sector with the key function of administering and managing the National Road Fund, a pool of funds collected from mostly fuel levy and has now been bolstered by introduction of road tolls.

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The National Road Fund Agency (NRFA) has

Sport

The Football Association of Zambia – FAZ has expressed concern over the conduct of some football clubs using unlicensed players by forging their Identity Cards and fielding them in the games.

FAZ General Secretary Adrian Kashala says players in three named football clubs had this week forged and fielded unlicensed players into the games in an effort to win which should not have been the case.

“I wish to advise that we had an unfortunate incident where unlicensed players were being fielded for league games. We have confiscated 10 forged cards from some clubs namely Real Nakonde FC and TAZARA Rangers and will continue to investigate. This type of conduct is highly disappointing and will not go unpunished. FAZ is on the ground and days are numbered for those teams in the habit of cheating,” he said.

Kashala stated that various offences have been committed both against the football rules and criminal acts such as peeling off the face of the player, fielding an ineligible player, fielding unregistered players and falsification of information.

The association has since called on clubs to closely examine Players Cards to ensure the correct image and watermarks are on the player cards. The association general secretary has also said that FAZ has received numerous complaints regarding poor officiating.

“We have also noticed with regret that complaints regarding poor officiating are not brought to the association but instead shared through social media. As FAZ we continuously evaluate the performance of referees, he said.

He added that the Referees Committee will be meet ping this weekend to deal with all the cases regarding poor officiating that have been formally presented.

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The Football Association of Zambia - FAZ

Agribusiness

The Government of Zambia has re-launched its partnership with Brazil aimed at resuming the bilateral cooperation in the field of biofuels development which had slowed down in progress since its launch in 2010.

Zambia and Brazil signed a bilateral instrument of cooperation in 2010 aiming at the developing biofuels in the country of which limited progress was seen. Brazil is one of the best examples in the world in the development and use of biofuels as a substitute to fossil fuel.

Speaking at a policy dialogue consultative forum held in Lusaka on 7th May 2019, Minister of Energy Matthew Nkuwa told the Zambian Business Times – ZBT that the failure to progress in investment of biofuel is due to some challenges the country was facing in migrating to blending of petroleum products and the necessary infrastructure needs to be developed for a successful roll out of the biofuels programme.

He said the partnership earmarks the renewable energy industry in the area of delivering the establishment of biofuel blending facilities by 2021, thereby calling for the need to grow the industry.

Nkuwa said biofuels have low emissions compared to fossil fuels hence it contributes to efforts of emissions reduction which helps in mitigating climate change adding that the importation of fossil fuels contributes to the depletion of much needed foreign exchange in the country.

In addition, he said the operation on the biofuel blending programme will lead to a reduction in foreign exchange depletion due to fuel imports as the biofuels will be produced locally.

“I wish to inform you that currently, Indeni Refinery and Tazama Pipeline Limited have no capacity to enable blending, therefore it is necessary for government to invest in additional facilities to enable national blending of biofuels with fossil fuels.

And Brazil Ambassador to Zambia Colbert Soares said the agreement around biofuels is an interesting sector of developing the rural sector in Zambia as it will contribute to the increase of jobs and to the training of labor force, add value to agricultural production chains, reduce the country’s large oil imports and improve logistics and infrastructure in Zambia.

He mentioned that Brazil is in a better position to partner with Zambia in the matter as it has about 45% of its energy and 18% of the fuel consumption originating from renewable biofuels.

Speaking at the same event, Minister of National Development Planning Alexander Chiteme also stated that energy has become a necessary resource for the operation and growth of pivotal sectors such as mining, transport and agriculture hence the need to grow and diversify the energy sector to enhance its contribution to the economy.

He said government has set an ambitious outcome of improving local energy production and that the target set in the plan requires government to increase proportion of renewable energy mix to 5%.

Zambia’s currency the Kwacha struggles with perpetual depreciation due to the country’s huge  import bill of which fuel is one of the biggest. Efforts to utilize available arable land to grow plants that can be used for biofuel generation have stalled mainly due to loss in long term focus and changes of policies by successive governments.

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The Government of Zambia has re-launched its

Markets

Zambia’s economic growth in 2019 is projected to slow down due to continued adverse weather conditions which will negatively impact on agriculture production and the energy sector, says Minister of Finance Margret Mwanakatwe.

Mwanakatwe said the slowdown in the global economy is likely to weigh down on the domestic economy. Speaking when she officiated at the quarterly performance report meeting held in Lusaka on May 10th, 2019, attended by the Zambian Business Times – ZBT, Mwanakatwe stated that the country’s economic growth in 2018 was a resilient and that the GDB grew by 3.7 percent from 3.5 in 2017.

She explained that the key drivers to this growth included mining, electricity, manufacturing and financial services sectors. Mwanakatwe further noted that the poor climate conditions affected agriculture output which brings about the importance of adopting climate resilient agriculture practices and quickening the pace of implementation of the country’s economic diversification programme.

The Minister has also indicated that the country’s budget performance on the fiscal side over the first quarter of 2019 has seen domestic revenues collection of K14.99 billion, which were above target by 4.4 percent adding that this was mainly driven by higher non-tax revenue collections from declaring of dividends.

She added that domestic financed expenditure amounted to K12.8 billion below the budget projection due to depreciation of the exchange rate in the first quarter of the year. She said most expenditure items were constrained below budget projections except for interest payments on debt which were 16.2 percent higher than the projected at 5.0 billion.

“I wish to add that the bulk of the above projected performance in domestically generated revenues, amounting to K1.4 billion were utilized on meeting the shortfalls on maturities for government paper . And in line with the fiscal consolidation drive, government intends to front fiscal consolidation over the medium term, I will be outlining measure that we must undertake subsequently,” she said.

Meanwhile, the minister said government is aware of the challenges facing the economy and that it will remain committed to addressing these challenges so as to foster inclusive growth and sustainable debt management.

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Zambia’s economic growth in 2019 is projected

Companies

The Annual Economic Review for the Zambian economy has revealed that for 2018, the total domestic revenue was at K52.8 billion, 8% above the set target of K49.1 billion.

The growth and above budget performance was mainly on account of good performance on value added Tax (VAT). Other tax types were however below projection.

However, the country recorded diminished disbursements of Grants which were below budget target by a whooping 74% at K35.4 million, partly explained by low inflows from some cooperating partners.

The report also indicates that non tax revenue collections which are mostly fees and charges levied by government institutions stood at K8.5 billion, this were above the target by 4.3% which was at K8.2 billon. The favorable performance on non-tax revenues was largely attributed to increased mineral royalty and toll fees collections. This was augmented by enhanced use of direct deposits and use of e-payment system for fees, fines and government services.

Total expenditure including amortization for 2018 stood at K79.2 billion, which was above target by 10.5%. Domestically financed expenditure amounted to K55.4 billion; foreign financed expenditure amounted to K18.3 billion while amortization was K5.5 billion.

Most of the expenditure categories were below target or within programme levels except for interest payment and non-financial assets.

The fiscal deficit on cash basis was 7.6 percent of GDP compared to 7.8 percent in 2017. The outturn was higher than the budget target of 6.1 percent of GDP. Largely on account of higher than programmed project financing.

Meanwhile, preliminary estimates indicate that real GDP growth was at 3.7 percent slightly higher than the growth of 3.5 percent recorded in 2017. The improvement was underpinned by good performance in the mining, electricity, manufacturing and information and communicational sector. Agriculture outputs was however subdued following poor rains during the 2017/2018 farming season.

The performance of non-tax revenue is one area were there is excessive government revenue leakage. Some members of the public have called for automation of fees collection in all government ministries and quasi governmental institutions to ensure that funds do not flow into individual hands of some few corrupt government employees.

Some ministries contribute almost nothing to the treasury yet members of the public are parting away with considerable amounts of monies to “push their files” for various government services. Some institutions have however put up service charters to stem the Vice but this needs a systematic approach for all the different wings of government.

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The Annual Economic Review for the Zambian

Markets

Minister of Finance Margaret Mwanakatwe confirmed that her ministry has advanced and that its on her neck planning the rebasing of the country’s Gross Domestic Product (GDP), an exercise last conducted about 10 years ago.

The minister had last year during the budget speech announced that Government will undertake an exercise to rebase the country’s GDP this year 2019, an exercise last conducted in 2012.

Mwanakatwe stated that given what is happening with the country’s economy and what has happened in the last few years, the country should be able to see the improvement and growth in the economy once the exercise of rebasing of GDP is completed.

The minister said this when she responded to a question raised by the Zambian Business Times – ZBT during the Quarterly Town Hall engagement held in Lusaka on Friday, 10 May.

The minister said that her ministry has set aside some money for the rebasing exercise but that there is need to take stock of what GDP really is. “The ministry has set aside a budget meant for the rebasing of the country’s GDP an exercise last conducted 10 years ago. But before we do that, there is need to ensure that we understand the current status of the economy before the funds can be released. The ministry will soon release the funds for the exercise which will enable the measurement of the improvement of the country’s economy,” she said.

However, a source had last week told ZBT in an exclusive Interview that no funds have so far been set aside for the rebasing exercise as announced by the minister. “The pronouncement by the minister of finance that government has set aside funds for the rebasing of the country’s GDP is just mere word on mere paper. In reality government has no money and that the government should instead approach institutions such as the African Development Bank – AfDB to assist it with the required resources for the conducing of the rebasing exercise”.

Concerns on budget credibility and the rebasing of the GDP have arisen following the fact that some projects which were announced for completion in 2019 which need more than six months to implement have still not been funded by end of first quarter 2019.

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Minister of Finance Margaret Mwanakatwe confirmed that

Politics

Former vice president for United Party for National Development – UPND Geoffrey Bwalya Mwamba popularly known for GBM has donated K80 000 to Kasama district marketeers with the aim of boosting their capital.

He told the Zambian Business Times – ZBT in an interview that he has donated K40,000 to marketers at Chambeshi market, K30,000 to Chikumanino marketeers while K10, 000 has been received by the small and medium size business community.

GMB said the donation is part of his empowerment programmes to boost capital for marketeers in the district. He has explained that marketeers play a vital role towards the growth of the economy through the taxes they pay to government.

He said most traders in the markets are women who support families hence the need to empower them with capital to help expand their businesses. He has however promised to work with the people of Kasama and has urged traders to to put the money to it’s good use.

GBM was recently suspended by the opposition UPND, an action that led to Mwamba ditching the party and later rejoining the ruling Patriotic Front – PF. He left the main opposition party on allegations of being sidelined by the leaderships of UPND.

GBM also disclosed that most of the project’s that he undertook in the UPND party where funded from his own funds. And when asked how much he spent on the projects during his time with the UPND, Mwamba refused to review the amount of money used saying the information will be disseminated on a letter date.

Meanwhile, GBM told ZBT that his move to support Kasama marketeers as a way of helping boost their capital adding that residents of Kasama have been helpful to supporting him both in business and personal life. “Am helping people of Kasama not because of politics or trying to win trust from PF, my aim is to help them enhance their businesses, and they are the people that have been supporting me in becoming the member of Parliament so I can not reject now,” he said.

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Former vice president for United Party for

Markets

Bank of Zambia – BoZ Deputy Governor says the country should seriously consider setting up a Computer Incident Response Teams (CIRTs) for various industries including the financial sector in order to curb cyber security crimes.

BOZ has since called upon the Bankers Association of Zambia to work with the central bank to ensure that this is achieved. The financial services sector is a key target by cybercrime criminals because it is the custodian of large amount of funds in the economy.

Deputy Governor – Administration, Dr. Tukiya Mabula-Kankasa was speaking during the Cyber security workshop. “I believe that the CIRT would not only assist in ensuring that all financial institutions are collaborating and working as one in mitigating cyber risks but also enable information sharing. The financial services sector has to see cyber security for what it is, a large scale operational risk deserving the utmost attention and thus develop the necessary systems and cultures throughout the sector to deal with this risk,” she said

Key to the development and operation of these systems and cultures is the need to nurture talent capable of addressing cyber security threats through prompt detection, investigation, reporting, prosecution and prevention.

She further stated that technology (ICT) has over the years permeated all aspects of our lives and in particular has become the mainstay of the world’s financial sector infrastructure. “While these ever emerging technologies such as Digital transformation, Artificial Intelligence, Internet of Things, Cloud Computing, Enterprise Mobility and Mobile Banking, have brought about efficiency and increased innovations, they have also exposed the financial services sector to cybercrime”.

”For this same reason, the financial services sector has to also deal with other types of risks, which among others include, fraud, extortion, money laundering, illicit financial flows, market manipulation, data theft, and currency attacks,” she said.

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Bank of Zambia - BoZ Deputy Governor

Companies

Zambeef Products Plc has highlighted the need to safeguard the country’s value chains and has called on both stakeholders and consumers to guard against the illegal influx of smuggled meat.

Zambeef Chief Executive Officer Francis Grogan observed that efforts by both the government and the private sector to boost and encourage local livestock production in the country were being hampered by rising levels of unregulated meat particularly beef making its way onto the market.

“Such activities are not only hurting our hardworking farmers and businesses but also putting consumers at risk. I therefore urge shoppers to continue buying local meat products from trusted and regulated sources,” he said.

Grogan has also noted that while the market for beef holds great potential, there has been minimal growth in beef volumes despite the massive investments that have gone into developing the sector owing to such challenges.

Zambeef currently has an inventory of almost 12,000 cattle all bought from local farmers but is concerned that the economic impact in the long-term is being hampered by the smuggling which is undermining the local beef industry and depriving the country of much-needed and valuable revenue.

The recent Foot and Mouth Disease outbreak has been a further wake up call for the development and enforcement of more focused, stringent, streamlined and sustainable policies in the local beef industry necessary to curb the growing illicit trade.

“Zambia has the potential to feed itself and neighboring markets but it must position itself to be an agricultural and agro-processing powerhouse by tackling illicit trade of commodities and production is vital to achieving this,” said Grogan.

The Zambia Revenue Authority recently exposed a beef importing syndicate that was importing the commodity under false declarations. This beef was said to be destined to a farm in Mazabuka were the beef was being re-packaged and sold as local beef.

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Zambeef Products Plc has highlighted the need

Companies

A Deloitte Zambia tax expert  has expressed concern over the content in the goods and service tax bill section 34 which gives descriptive powers to the finance minister Margret Mwanakatwe to waive sales tax contrary to article 199 of the constitution of Zambia.

Speaking during sales tax consultative meeting at Pamodzi hotel in Lusaka on May 6th 2019, Deloitte Senior Tax Manager Kennedy Munyandi said finance minister Margret Mwanakatwe has been given too much power in the sale tax bill.

“The law itself is about 4 pages but the minister has been mentioned at least 15 times and that is already an indication of too much power being given to a person, laws should not depend on the goodness of an individual but be based on data, so the powers given to the minister are too many,” he said.

He added that there is need to raise awareness on the content of the sales tax bill to the business community as it will be implemented soon. The Sales tax meant to replace Value Added Tax – VAT was set for implementation on April 1st 2019 by the Minister of Finance Margarate Mwanakatwe but was later deferred to be implemented on July 1st,2019.

Munyandi said the sales tax extension must be utilized effetely by stakeholders and government to both consult and sensitize the public. He has further welcomed the sales tax bill and reiterated on the need by government to explain the bill to the business community before it takes effect.

Speaking at the same event, Zambia Revenue Authority – ZRA Commissioner General Kingsly Chanda disclosed that following the announcement to abolish the value added tax by government last year, VAT refunds have increased to K1.4 billion per month from the initial K774 million.

Chanda said currently the authority is recording arrears of between K400 Million to K500 Million in VAT refunds. He further explained that government decided to change to sales tax from VAT due to frauds by some multinational companies and over valuation of capital imports.

He added that some companies where demanding double refund on the same certificate leading to a strain on the treasury hence the introduction of sales tax will help remedy some of these challenges. He noted that every tax law is aimed at contributing to the treasury and not working as a cost on the part of government.

ZBT is yet to get the official position of the top 5 Copper Mines who have been the biggest claimants of VAT refunds and will be the highest impacted by this law. The bill is also yet to clarify on what happens to sectors that were initially VAT exempt such as Agriculture, Pharmaceuticals and others.

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A Deloitte Zambia tax expert  has expressed