Zambia exports of beers & soft drinks to DRC suddenly banned

Zambia’s exports to the Democratic Republic of Congo – DRC have suddenly been banned sending panic on the markets as forex inflows are expected to dwindle and likely affect the Kwacha.

DRC, which is Zambia’s very important northern neighbor has announced a 12 month ban on importation of beers and soft drinks.

And Minister of Trade Chipoka Mulenga has confirmed to ZBT that Zambia is already facilitating a diplomatic way of engaging with the DRC to understand why they have suspended imports of beers and soft drinks.

This sudden move by DRC which will negatively affect Zambia’s financial markets is expected to draw retaliation as the export proceeds from drinks and beer industry ultimately contributes to the expected forex inflows.

According to information made available to the Zambian Business Times – ZBT, the Minister of Foreign Trade of the Democratic Republic of Congo – DRC recently announced the controversial measure of the suspension of the importation of beers and soft drinks for a period of 12 months for the whole territory of DRC.

When contacted for a comment by ZBT, Trade and Industry Minister Chipoka Mulenga, said the Government is aware of this development and the impact this will have on the local Companies and the economy at large.

Mulenga said the government is facilitating meetings between the two Trade Ministers to understand why they made such a decision and see how the two countries can work together going forward for the good and success of both countries.

The Zambian Trade Minister noted that Zambia has developed its production capacity in confectionery products among many others as it produces beyond what it can consume in the country and it has created many other sources of income and revenue of which it is even exporting more.

“The Zambian government and the DRC are countries that have been doing trade for years since time immemorial and we wish to continue that because Zambia has a lot of benefits from DRC just like DRC has a lot of benefits from Zambia. And am very optimistic whatever reason they bring, if we sit around the table will resolve them for Zambia to continue to trade with the DRC.” He said.

“Definitely like everybody knows there will be a loss in sales and revenue from our industries but this is something that happened just last week on Friday 19th of July 2024 and we have [engaged in] bilateral talks to see how we can resolve that. I have just finished a meeting right now with the DRC Ambassador to discuss the way forward and facilitate meetings with the two trade Ministers.”

When asked by ZBT what would be the impact of this move on US dollar inflows and Zambia’s exchange rate if this ‘ban’ is not lifted?

Mulenga however said, this would not have a major impact on the dollar inflows stating that Zambia’s major currency inflows are largely impacted by the mining sector.

“What impacts Zambia’s major forex inflows is the copper production which contributes more than 70 percent but of course, it will have an impact but obviously not as large as it would impact if this was coming from the minerals exportations.”

“Right now I can assure you especially that we have now revamped the mines, if we increase productivity the currency will not be affected in the way that we are anticipating an increase in copper production but what we have to focus on right now, is the day-to-day trade that happens between Zambia and DRC.”

“We are engaging them on bilateral terms so that we can find the way forward, right now it would be premature to say any countermeasures because we have not yet spoken to our colleagues in DRC. They made a decision for our Country without engaging us to understand, but we will in a very decent and diplomatic way, we have said we will engage our brothers and sisters to find a way forward and after our meeting then we will give a comprehensive statement.” Remarked Mulenga.

Zambia's exports to the Democratic Republic of

HLB Zambia confirms receipt of $245 million in Escrow account for KCM payments

HLB Zambia, the local unit of an international firm of Accountants, has confirmed the receipt of $245 million in the Escrow account intended for Konkola Copper Mines (KCM) payments.

This confirmation comes after Vedanta Resources Holdings Limited indicated that it had deposited $245 million into the escrow account as designated by the High Court.

HLB Zambia, a member of HLB International of the UK, has exclusively confirmed to the Zambian Business Times – ZBT, that the $245 million has been paid, although they could not confirm the domicile of the bank account and the name of the bank stressing that their role as a scheme of arrangement is to ensure the accuracy of the account and facilitate the payment process.

Speaking in an exclusive interview, HLB Zambia’s Executive however assured that this week, suppliers will commence receiving their ultimate benefits.

“Remember what was ruled at the High Court was that month end so month end is Wednesday 31^st July 2024 so even if people may be impatient let them wait between today and Wednesday they should start getting their monies.”

Asked if the Bank account is domiciled in Zambia and the name of the Bank, HBL Zambia could not confirm stating that, “we are not preview to the Escrow account details.”

“The Escrow account mind you we are not signatories as we have just done the payment lock up and sent it to KCM so basically what we are doing as a scheme of arrangement is just to confirm if the account is correct and the money can be paid that’s our role.”

“So where the money is sitting and the name of the Bank that we cannot confirm but what we are confirming is that the money has been deposited and this week suppliers will be paid.”

HLB Zambia, the local unit of an

NAPSA has enough funds to finance any viable project – Muyangwa

The National Pension Scheme Authority – NAPSA Director General – DG Muyangwa Muyangwa says the authority has enough capital to Finance various viable projects across the Country.

Responding to a Zambian Business Times – ZBT, query during the press briefing on the $200 million Maamba Collieries Transaction and whether the Authority is not overstretching its finances since Napsa also funded the Lusaka-Ndola dual carriageway construction to the tune of $300 million which brings the combined figure to $500 million, Muyangwa said, the authority is more than capable to carry out its various investments.

He said the National Pensions Scheme Authority has all the financial muscle and capability to ensure the viability of all its investment projects like the Lusaka – Ndola dual carriageway as well as the current Maamba collieries phase 2 project which is said to cost about 400 Million dollars.

“You can only overstretch your finances if you have reached your input, I think we have a very serious growing concern maybe it’s the fact that we have never played the role we are playing now and we must ensure that we reconcile the NAPSA which has always been there and what has happened,” He stated.

Muyangwa further stated that NAPSA has managed to pay out about 9.9 billion in less than a year as well as the current road projects investments which they are still carrying out.

“You have never heard developers of the road come back and say, that NAPSA promised to pay us on any given day and that they have failed to pay us, it’s fake.” He said.

Muyangwa further disclosed that NAPSA has done its calculation and that they fully understand where their money, as well as investment revenue, are coming in as well as how they plan on financing these projects.

He further stated that Napsa is more than able to finance its various investment projects as it is capable in terms of finances.

Asked if NAPSA is considering investing in Nuclear power generation since Zambia has some Uranium deposits in the Southern Province, Muyangwa confirmed that, “NAPSA also plans on investing in other alternative sources of energy like Solar energy in order to cushion the current power deficit in the country adding that going forward NAPSA is open to finance any viable projects like Nuclear energy as long as it’s permissible in their investment guidelines as well accepted by the country’s perspective of it being a legal investment then NAPSA will always participate.”

The National Pension Scheme Authority – NAPSA

Coca-Cola Beverages Zambia boosts community schools with 10,000 exercise books

Coca-Cola Beverages Zambia – CCBZ has reiterated its commitment to building economic inclusion and sustainability solutions that benefit its stakeholders, particularly, the communities in which it operates in.

Coca-Cola Beverages Zambia (CCBZ) has handed over 10, 000 books to the Zambia Open Community Schools (ZOCS) which will support several rural community schools with over 2000 learners expected to benefit.

Speaking during the official handover of 10, 000 books to the Zambia Open Community Schools – ZOCS, attended by the Zambian Business Times – ZBT, CCBZ Public Affairs Communication and Sustainability Director, Fronscen Haloba-Chisanga, said the donation is in line with CCBZ’s commitment to building economic inclusion and sustainability solutions that benefit the stakeholders, particularly, the communities in which CCBZ is invested.

Chisanga said the A4 hardcover exercise books will help the students in community schools manage their schoolwork and support the community schools.

“At CCBZ, we use our industry leadership to be part of the solution for positive change on the African continent. We aim to create greater shared opportunities for the business and the communities we serve across the value chain.”

Chisanga said CCBZ understands that the business can only thrive when the communities they serve thrive too.

CCBZ reaffirmed that it will continue to focus on creating a better-shared future and enhancing livelihoods, resulting in increased economic value and capability for communities and the business system.

Meanwhile, ZOCS sincerely thanked its all-weather partner Coca-Cola Zambia for choosing to invest in education and address the educational gaps the country is currently facing.

Zambia Open Community Schools (ZOCS) was established in 1992 and has since gained its status as a flagship local organization that empowers communities to provide quality basic education to learners across the country in all 10 provinces.

Speaking when he received the 10, 000 books donated by CCBZ at Lusaka West Plant, ZOCS Executive Director, Cleopatra Chona represented by Arizona Kakole Educational Adviser, said the partnership with Coca-Cola Zambia will support several rural community schools with donated books and is set to benefit over 2000 learners.

He noted that in 2022/23, the partnership between Zambia Open Community Schools (ZOCS) and Coca-Cola Zambia resulted in significant donations of 10,000 exercise books to 10 community schools (Sianzala, Mayuwa, Konkola Lower, Kalama, Ngwezi, Chifumbi, Mabanga, Nziba, Mabanze and Nanjiili) in Mazabuka district, Southern Province. “These donations benefited 2475 learners. The impact of these donations was positive, addressing challenges in meeting school requisites.”

“This year, the partnership will contribute towards achieving the Sustainable Development Goal (SDG – 4) on education by providing school requisites that contribute to the transformative effect of quality education for all children.”

He added that “by providing these community schools books, the following is expected to be achieved: Foster a love for learning – this will encourage a positive attitude toward education by demonstrating the value of school supplies and their impact on learning outcomes. Retain children in school- this will ensure that children have the necessary supplies to pursue education effectively.”

“We sincerely thank our all-weather partner Coca-Cola Zambia for choosing to invest in education and address the educational gaps in the country. We believe that this success can be scaled up to more schools across the country.” He said.

Coca-Cola Beverages Zambia - CCBZ has reiterated