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Companies

The Zambia Development Agency – ZDA has called on local businesses seeking Joint Venture (JVs) partnerships with foreign investors to visit the agency. This is in a quest to market the country’s various investment opportunities to attract Foreign Direct Investments (FDIs), Local Direct Investments (LDI) and Re- investments.

The Agency reveals that at least US$ 707 million is estimated to have been invested through JV partnerships from 2016 when JVs when first launched. In line with global trends, there has been a notable increase in JV investments since its establishment.

The Agency has since placed emphasis on the importance of forming partnerships between foreign investors and local players in an effort to create sustainable investments, enhance technical exchanges, reduce exposure of Zambian firms to market shocks, and increase the participation of Zambian firms in local and foreign markets.

Facilitating partnerships and JVs by encouraging co-financing between local and foreign business entities is a key strategy used by the agency to spur industrialization and job creation, ZDA Director General, Perry Mapani has said.

Through local fora such as provincial investment expos as well as international missions, the Agency facilitates match-making, among like-minded investors that aim to enter and/or increase their access to domestic and global value chains. Match-making involves the provision of market information to firms seeking partnerships, and the subsequent provision of aftercare services.

The Energy sector is the largest contributor to JV investments with an estimated investment of at least US$ 483 million since 2016. The Mining sector was the second largest source of JV investment with at least US$ 224 million since 2016.

And since 2016, at least 2,100 jobs have been created through JV partnerships. The Energy sector is the largest contributor with about 1,497 jobs while the Mining sector produced about 606 jobs through JVs, the agency has reviewed.

A report by the International Labor Organization – ILO indicated that some Multi-National Corporations (MNCs) especially those operating in the Mining sector, face challenges in finding local partners with the ability to comply with the scale and quality of services required. In that regard, ZDA now calls on local enterprises to sign up and get information and certification that would help them attract foreign partnerships.

“JV partnerships remain an important strategy for private sector development, job creation, and technical progress through technological exchanges. Since, ZDA is the official contact partner for foreign companies looking for qualified Zambian-based manufacturers and service providers, firms that are interested in JV partnerships are encouraged to contact the Agency,” Mapani said.

India and China are the largest sources of JV partnerships mainly in the Energy and Mining sectors, respectively, and ZDA plans to extend these relationships to other key sectors and companies in Zambia.

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The Zambia Development Agency - ZDA has

Companies

The Ministry of Trade and Industry has launched the National Trade policy and National Export Strategy and their respectively implementation plans in an effort to make Zambia a net exporter of value added goods and services through competitiveness at the domestic, regional and global level.

The National Trade Policy is now a stand-alone policy as previously, the Trade component was part of the Commercial, Trade and Industrial Policy developed in 1994 and reviewed in 2009. Speaking when he officially launched the documents, Minister of Trade, Christopher Yaluma noted that the vision of the policy is to making Zambia a net exporter of value added goods and services through competitiveness at the domestic, regional and global level.

He added that the aim of the policy is to contribute towards Zambia’s economic diversification by promoting and stimulating a competitive trade sector in order to increase the market share in the global economy.

The trade Minister explained that National Trade Policy will serve as a blue print for Government’s activities in Zambia’s trade sector and that the Policy is aligned to the Seventh National Development Plan which is based on an integrated multi-sectorial development approach which seeks to accelerate development efforts.

“The National Trade Policy sets out Government’s approach to trade development with a view to creating and maintaining a competitive private sector in a dynamic domestic and international market environment with an ultimate goal of creating sustainable jobs and wealth for the benefit of the people of Zambian”, he explained.

The Minister  is optimistic that the strategy will address challenges affecting export competitiveness through various mechanisms and to enhance the export sectors contribution to Zambia’s socio-economic development.

Further, he noted that the strategy will contribute towards sustainable and inclusive socio-economic development and promote interventions that will assist the private sector to develop production networks and supply chains with the regional economy in order to take advantage of production unbundling, diversification and value addition.

“The strategy focuses on both trade in goods and trade in services with clearly identified challenges, proposed intervention and outcome indicators which will measure progress at every stage of implementation,” Yaluma explained.

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The Ministry of Trade and Industry has

Tech

Six companies have been selected to develop renewable energy amounting to 120 mega watts in Zambia. Speaking at the tender winners announcement meeting, Germany Ambassador to Zambia Achim Burkart says the Germany government is excited about the GET FiT Programme and will support it with an initial Investment of 31 million Euros (450 Million Kwacha) through KFW Development Bank.

The ambassador stated that the German Government does not only believe in renewable energy as a key building block for the world’s energy future thriving to achieve the goals set up by the international community against climate change, but that it also believe the GET FiT programme embodies and supports many of the key elements of the power reforms that the government of Zambia is undertaking.

“In line with the energy strategy, GET FiT Zambia will procure 200 megawatts (MW) of renewable energy projects within the next year, this is now the first tender, focusing on solar PV, a resource that exists in abundance in the country,” he added.

And Ministry of Energy Permanent Secretary Brig General Emelda Chola says the ministry is implementing the Renewable Energy Feed-in Tariff (REFiT) strategy that focuses on the development of a total of 100MW Solar PV and 100MW of small hydro power project (up to 20MW per project) through the Global Energy Transfer Feed-in Tariff (Get FiT) Programme.

Get-Fit is the Zambian Government programme aimed to facilitate private sector investment in small and medium scale Renewable Energy Independent Power Producers – IPP Project in Zambia. The programme is a partnership between the Ministry of Energy and KFW Development Bank, with multiconsult as the programme implementing consultant.

Brig Chola stated that based on the outcome of the evaluation process, the government of Zambia in cooperation with the government of Germany is pleased to announce the award of six (6) Solar PV Independence Power Proceducer (IPP) project, totaling 120 MW to the following developers:

Building Energy and Pele Energy –Bauleni East and West – 20 MW each at US cents 3.999/KWhr, Globeleq and Aurora Power Solution-Aurora Solar One and Two – 20 MW each at USD cents 4.52/KWhr and InnoVent and ACC – Garneton North and South Solar – 20 MW each at USD centd 4.8/KWhr.

“The Solar PV tender, which is round one of the process was a highly competitive tender launched in 2018 resulting in shortlisting of 10 companies and consortium who were invited to submit up to 2 proposals of a maximum of 20MW each.

Out of the 10 companies consortium 8 submitted 15 projects which were are subject to evaluation process including sight visit. Notably, the result did not consider price alone but a total combined technical and financial score,” she said. This is the largest PV tender implementation in Sub-Sahara (SSA) to date outside of South Africa with some of the lowest per kWh prices ever achieved for PV in a Sub-Sahara Market.

The project however is mute on how local businesses and individuals would participate in this solar project. The power is being bought by state owned ZESCO but the IPP’s have no clear provisions on how local businesses would participate or be supported to be equity partners.

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Six companies have been selected to develop

Agribusiness

The Ministry of Fisheries and Livestock’s Zambia Aquaculture Enterprise Development Project – ZAEDP implementation has gone into high gear, aimed at contributing to the narrowing the fish deficit in Zambia which would help save forex in reduced imports.

The project objective is to advance the aquaculture/fish farming sub-sector as a viable and inclusive business opportunity through enhanced production and productivity in order to improve the livelihood of beneficiaries along the aquaculture value chain.

Speaking at the launch of the national stakeholders meeting on increasing fish production attended by Zambian Business Times – ZBT at Mika hotel in Lusaka, Permanent secretary at the ministry of fisheries and livestock Dr. David Shamilenge stated that government intends to narrow the deficit of more than 80,000 metric tonnes in national fish production through the Zambia Aquaculture Enterprise Development project.

Dr. Shamulenge disclosed that fish production by 2020 is expected to increased by 10,000 metric tonnes. With loan recoveries and reinvestment from the revolving Aquaculture Seed Fund, the country will increase its fish production to 47,000 metric tonnes adding that this would add an increase of at least 45% in aquaculture’s contribution to fish production by 2021 from the current level of 36, 000 tonnes.

“It is government’s expectation that 22 million of fingerlings can be supplied by fish hatcheries while the balance of 22 million will come from the 18 new hatcheries being established with the support of the ZAEDP to be established throughout the country,” he said

And speaking at the same meeting, Citizen Economic Empowerment Commission – CEEC Director general Likando Mukumbuta said that the commission has started the disbursement of K27 million empowerment loans to the 18 new hatcheries and nurseries under the project.

He revealed that in line with Governments policy to enhance the participation of youths and women in job-creation, 50% of the funded fish hatchery and nursery projects valued at K14 million have gone to 9 companies owned by youth and women citizens.

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The Ministry of Fisheries and Livestock’s Zambia

Markets

A Zambian based broker has attributed the failure of the Lusaka Securities Exchange – LuSE alternative market to attract successive listings to the fact that Zambia has limited investors who wish to invest money in a business that do not guarantee a return and security. The alternative market is a tier created by LuSE to facilitate the raising of capital and for the growth of Small and Medium Enterprise – SMEs.

Following much research and deliberations into the needs of SME’s in relation to capital raising on the market, it was determined some time back that a second listed tier would be ideal to meet the peculiar concerns of such small and mid size companies be established.

In an exclusive interview with the Zambia Business Times – ZBT, the source whose identity has been withheld said the country is not yet at the level of initiatives such as the alternative market as most SMEs in Zambia are family owned and do not want to be open to public scrutiny.

The source says the people and small businesses who the alternative market was created for do not fully understand what it means and how it can benefit their business. “I do not see much of a difference between the quoted tier and the alternative market tier. And so it could have been better for LuSE to encourage people to take advantage of the quoted tier that already existed and not introduce an alternative market tier which does not guarantee return and security for an investors’ money,” the source said.

The source has since advised LuSE to encourage people to take advantage of the quoted tier that has seen a number of company’s such as Cavmont Capital Holdings, Bata Shoes Plc and other rise to meeting the requirements of being listed on LuSE market.

The source stated that the alternative market cannot work in the country at the moment but that it can be of use in the future. Zambia, like most countries around the world, has a large SME sector. The sector has yet to be fully developed and contribute significantly to the creation of wealth for individuals and the country as a whole.

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A Zambian based broker has attributed the

Tech

Liquid Telecom Chief Executive Officer Susan Milikiti says she is privileged to have been invited to Habitat for Humanity Women’s Build 2019 initiative alongside first lady Ester Lungu and finance Minister Margaret Mwanakatwe.

Milikita says the work that Habitat for humanity does in improving the lives of people especially women and children by building decent houses for them is very important and has therefore called on people to take advantage of this opportunity and contribute whatever they have for the betterment of society.

“Women are naturally care givers and can do more for society. I am therefore calling on women holding positions as well as those that can afford a decent living to come on board and join Habitat for humanity in providing decent shelter and decent living conditions for women and children who are in desperate need. There is no greater joy than helping a fellow human being,” she said.

And Habitat for Humanity Zambia Resource Development and Communications Manager Thandi Phiri-Chanda said her institution has so far build 3,800 houses for the most vulnerable in society since its establishment 35 years ago.

She said Habitat for Humanity has partnered with international communities to build decent housing, improved sanitation units and insectcide treated mosquito nets per housing unit. She says each beneficiary family is provided with in child care, basic house maintenance, succession planning, will writing and HIV/AIDS and Malaria prevention and care.

She says the project of building houses for the vulnerable in our communities is not an easy job and there is need for companies and individuals in society to come on board and contribute whatever they can to this project so has to make the work more easier.

“We need people to contribute whatever they can including physical presence at the construction sight as we are building these houses. Sometimes a contribution of money whatever amount can really add value to improving lives in our communities,” she said.

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Liquid Telecom Chief Executive Officer Susan Milikiti

Companies

The Ministry of Finance has announced that it had deferred the implementation of the migration from the Value Added Tax – VAT system to the Goods and Services Tax – GST to July 1, 2019 by its revenue agency, the Zambia Revenue Authority – ZRA.

Giving an update during a parliamentary session, Finance Minister Margerate Mwanakatwe stated that government has made progress and that the draft GST bill is ready and will be presented to the legislators on 4 April 2019.
She explained that the implementation of GST is meant to address the perpetual net refund position to tax payers, a situation that has resulted in the accumulation of VAT refund arrears and contributed to declining revenues for spending on social and economic development needs of the country.
Mwanakatwe further explained that this exercise had earlier been envisaged that it would be completed within the first quarter (January to March 2019) but her complex and delicate nature of this migration had necessitated the need for more time. The time will be used to refine and find time the draft bill that will be subject to further stakeholders engagements.
Lusaka based financial analyst Maambo Hamaundu raised concerns that time was running out for GST implementation. He stated that there is need for government to timely explain the mechanism of how sale tax will be operationalized before it is fully implemented by the business community.
Last year on Friday 28 September, 2018, Finance Minister Margerate Mwanakatwe announced during the 2019 budget presentation that government will abolish Value Added Tax – VAT and replace it with Non-refundable Sales Tax effect on April 1st 2019 which is more likely to help government boost revenue collection and bring down mounting debt.
Haamaundu told the Zambian Business Times – ZBT in an exclusive interview that the level of sensitization on the soon to be introduced Goods and Services Tax – GST should be enhanced to enable the business community prepare adequately for the transition.
The financial analyst said there are no available details in the public domain on how this tax will operate and institutions administering GST such as the Zambia Revenue Authority – ZRA should advice on the rates to be adopted under the sales tax.
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The Ministry of Finance has announced that

Agribusiness

The World Food Programme – WFP in collaboration with the National Food and Nutrition Commission have called on members of the Sun Business Network-SBN involved in food production, processing and marketing to engage and explore opportunities for growing their businesses while contributing to the positive nutrition outcomes.

Speaking during a meeting attended by the Zambian Business Times-ZBT held on Match 27th in Lusaka, WFP Country Director Jennifer Bitonde said the platform aims at mobilizing businesses to act and invest in sustainable actions and operations that contribute to positive nutritional outcomes.

Bitonde said WFP will intensify the engagement between government and private sectors in promoting dialogue to maximize private sector’s expertise and resources in contribution to nutrition.

And Zambia Bureau Standards-ZABS says the company has laboratories which should serve manufactures to have their products tested before putting on the market to ensure that they are of good quality.

ZABS Director of Technical Services Margaret Lungu says the company will latter this year launch a front-of-pack certificate mark called “Good Food logo” to promote consumer awareness about good nutrition leading to increased demand for nutritious products.

Speaking in a separate interview MUSIKA project manager for Agricultural Markets and Nutrition Jonathan Mwewa told ZBT that the company’s contribution to scaling up nutrition business is to implement a market development initiative that integrates maximization of nutrition outcomes for women, children the poor and small holder farmers into the Zambian agri-food market.

Mwewa said MUSIKA’s aim is to align incentives and create opportunities with the agricultural economy for the private sector to sustainably integrate nutrition objectives into its business models that relate to the rural poor.

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The World Food Programme - WFP in

Agribusiness

The Japan International Corporation Agency-JICA in collaboration with the Ministry of Agriculture have embarked on a rice cultivation dissemination project to increase its production through enhancing rice research capacity and the agriculture extension system that supports the crop.

JICA Assistant Resident Representative Matsui Yoji told the Zambia Business Times – ZBT in an interview that the project is aimed enhancing productivity and livelihoods of small scale farmers in rural areas to enhance access to high quality seeds and varieties, introduction and development of sustainable crop management practices, and strengthen new technology adoption

Yoji said the Agency is building in rice research and extension through training and conducting dissemination of information on rice as it is considered a promising crop that is traditionally consumed and has a high demand that exceeds the local supply.

He added that the extension system for rice cultivation is established in target areas which include Northern, Luapula, Muchinga, Western, Eastern, Copperbelt and Lusaka provinces.

And Zambia Agriculture Research Institute – ZARI says JICA’s initiative to train farmers in the production of rice and promote appropriate rice cultivation practices is a welcome move to the Zambia’s Agricultural sector.

ZARI Executive Director Moses Mwape told ZBT in a separate interview that the project is also set to introduce the growth of rice in areas where maize is a traditional crop to enable farmers growth rice in different areas adding that the exercise will result in increment in rice productivity and promote the market for farmers.

“As ZARI we will ensure that framers are trained on methods of general crop management which will look at how to plant and take care of the crop so that we can increase on the productivity and production of rice in Zambia,” he said

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The Japan International Corporation Agency-JICA in collaboration

Markets

Zambia National Commercial Bank – Zanaco has projected that the introduction of the Goods and Service Tax – GST will result in the country’s inflation to rise to a double digit through to 2020 while the currency is likely to depreciate to 13 kwacha per USD.

Giving a presentation on the Economic Outlook for the First Quarter of 2019, Zanaco Head of Economics and Research Dr. Patrick Chileshe said the Implementation of good and service tax is going to result in an elevated cost of production for most entities. Most entities will aim to pass on the costs to the next person in the line of production or consumption resulting in higher prices.

The commercial bank has projected a number of risks which are likely to affect the growth of the economy in 2019. This includes the fiscal challenges that are ongoing especially with respect to debt service obligation as it has been observed that government’s debt service have been increasing causing negative effect on the aggregate demand of goods and services.

The rising levels of debt service will also have a negative impact on government ability to finance other sectors of the economy as this will hurt private economic activities resulting in slower growth for the year 2019.

The level of production in the Agro sector is 2019 is also likely to be poor compared to last year despite having good rains in the northern part of Zambia as much of the maize is cultivated on the southern part of Zambia.

Dr. Chileshe has also warned that low water levels in the Kariba dam may result in low electricity supply and load shading that will inturn result in low production in the manufacturing and mining sector.

The Zanaco Head of Economics however stated that despite the many challenges and risks identified; Zambia still have the chance to experience economic growth provided the right economic tools and interventions are put in place.

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Zambia National Commercial Bank - Zanaco has