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Zambia’s leading home and lifestyle deco company, Orca Deco has pledged to make charitable donations to the under-privileged in the community.

As part of their 5th year anniversary in Zambia, orca Deco’s first contribution in 2019 has been made to an early learning school; Jedidiah Learning Steps, making it the third charity to receive aid from the leading furniture store.

Jedidiah Learning Steps is a non-profit school founded in 2008 to provide education for children whose parents cannot afford to send them to school. The school offers free tuition for children from nursery to grade 7 and currently has enrolled about 400 students. The school goes further in not only providing education but also catering for the children’s lunch.

Orca Deco Zambia donated K93,000 worth of plastic plates, cups, forks, spoons, educational games, puzzles, balls, large basins and even mattresses and linen for the children’s families as many of them live in poor conditions.

Founder of Jedidiah Learning Steps, Sifelani Mwanza has seen the school go through many challenges. “There are times where we feel like we are doing the community work we do all alone, until great people like Orca Deco offer to help us. This donation has given us hope and reminds us that we are not alone in doing the work that we do to help the communities in need. The contribution from Orca Deco has truly changed the lives of so many today and for that we are very grateful.”

Speaking at the hand-over ceremony, Orca Deco Zambia Marketing Manager, Emma de Ricquebourg stated that the school had taken great steps in educating the youth. “Every child should have access to an education regardless of their socioeconomic circumstances. Orca Deco Zambia recognizes the importance of education in our community and is honored to have the opportunity to contribute in any way possible to create a suitable learning environment for the children”. Orca Deco Zambia will continue with two other donations to end the “Orca At 5” campaign.

Photo below is orca Deco team making the donation

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Highlights, Markets

As the European Union – EU faces uncertainty after one of its largest economies, Britain opted to break away in what has now been coined as Brexit, the African Union – AU has announced major strides in its quest to launch the world’s largest free trade area worth an estimated US$3 trillion.

Like every regional integration efforts, fears around nationalistic interests, loss of local political power and even cultural dilution rage among member states. But the creation of an African continental Free Trade Area – AfCFTA has potential.

Zambia has a unique ball to juggle, the AU Commission on Trade and Industry is led by one of its prominent sons, Albert Muchanga which in one way or the other puts the country in a situation we’re it has to support its own nominee to the AU as well as review the challenges that his core job would pose once the Afro free trade area comes into place.

Zambian Albert Muchanga, who is the AU Commissioner for Trade and Industry said that “when you create a larger market, you create greater opportunities for large investments. Right now, members of the African diaspora are coming to us to start the process of investment, this will increase employment opportunities for its people.”

And today before departure back home, Zambia’s President Lungu signed the protocal which was witnessed Albert Muchanga, African Union Commissioner for Trade and Industry, signed on behalf of the African Union.President Lungu said Zambia will now work towards necessary processes required to ratify the agreement.

In a media statement issued by First Secretary for Press, Zambia Embassy to Ethiopia Inutu Mwanza to the Zambian Business Times – ZBT, President Lungu further stated that Zambia recognized the importance of the agreement as it was one that would liberalise intra-Africa trade of both goods and services for all African countries .

The drive has received further boost as Africa’s second largest economy by GDP, South Africa”s President Cyril Ramaphosa, signed and deposits instrument of ratification with Moussa Faki, Chairperson of the AU Commission – demonstrating South Africa’s commitment to a coordinated strategy to boost intra-Africa trade. Nigeria is Africa’s biggest economy and its commitment is yet to be clarified.

Other African countries that have already come on board include Ghana, Kenya, Rwanda, Niger, Chad, Guinea, Eswatini, Uganda, IvoryCoast, SierraLeone, Mali, Namibia, Senegal, Congo, Togo, Mauritania, Ethiopia and Djibouti.

The creation of the AfCFTA is not a silver bullet to solving Africa’s development challenges but definitely a step in the right direction. The economic and trade arrangements to be ushered in through the Estimated US$3 trillion FTA will need a strong political backbone to avoid this large market being controlled by external forces and use the market as a dumping consumer ground

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Mining

The Mineworkers Union of Zambia – MUZ President Joseph Chewe has advised and urged Cabinet to reject in totality the unsolicited offer by First Quantum Minerals (FQM) to purchase the shares that are held by government through ZCCM IH.

Speaking to the the Zambian Business Times – ZBT in Kitwe, Chewe said government must not accept the offer and learn from what is happening in the country due to privatization.

Finance minister, Magerate Mwanakatwe according to media reports confirmed that Zambia has received an unsolicited bid from Canada’s First Quantum Minerals (FQM) and others for a stake in state mining investment arm ZCCM-IH.

But MUZ has stated that although the unsolicited offer by FQM will signify a boom in the mining sector, government must critically analyze the offer and not entertain it.

Meanwhile Southern Africa Resource Watch (SARW) Zambia Representative Edward Lange says the Zambian government’s intended sale of its twenty percent shares in Kansanshi mine to First Quantum Minerals, contradicts the aspirations of the African Mining Vision (AMV), which encourages African countries to increase state participation.

“We are fully aware that the Zambian Government is supportive of the AMV and would not want to go against the continental initiative to ensure full ownership and control of minerals. State participation in mining, through outright ownership or share participation, either on a mandatory basis or through the exercise of option rights, remains common practice on the continent,” Lange narrated in a statement.

He further noted that, this would be a mistake and a departure from what is happening elsewhere on the continent as since independence, copper in Zambia has had special strategic significance.

“The state has always believed that it needs to maintain a high degree of control over its strategic minerals. This is not unique to Zambia. It would therefore be a mistake for the government to give away the limited control that it still has over Zambian minerals.

In Africa today many countries are considering how to increase state or local citizens shares in all licenses. We therefore strongly urge the government of Zambia not to go ahead with such a transaction, but instead to work towards increasing its stake or its local citizens stake in the many mining licenses and maintain some control over its minerals,” he advised.

Photo below is MUZ President, Joseph Chewe

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Mining

State owned Zambia Consolidated Copper Mines Investments Holding (ZCCM-IH) Chief Executive Officer – CEO Dr. Pius Kasolo has been fired. Mines Minister Richard Musukwa announced the development at state house during a press briefing.

He added that Dr. Kasolo will be replaced in an acting capacity by ZCCM-IH Chief Investment Officer, Mabvuto Chipata.

On Monday, Dr Kasolo is quoted as having issued a statement were he said the 2019 mining fiscal regime may negatively affect ZCCM-IH’s profitability and dividends payable to government during the annual report presentation for the year ending March 31, 2018.

This statement is contradictory to his employers position which is government, whose 2019 budget and fiscal regime is being contested by mining houses. This statement by Dr. Kasolo may have costed him the top job.

“At the moment, we can’t say how it’s going to affect ZCCM-IH because most of these taxes haven’t come to fruition. But by projecting some of our investee companies, what we’ve looked at and discussed with them, I can give an example of Lubambe (Copper Mine)”.

“The funding to develop that mine has become a bit difficult because the banks have become quite tight with their money because they are not sure about the tax regime in Zambia, when it’s going to change. So, Lubambe is finding it difficult to raise capital,” Dr Kasolo told journalists at Lusaka’s Southern Sun Hotel, on Monday.

But Musukwa said the new mining fiscal regime was never meant to stifle the industry but was meant to build the economy and develop the mining industry.

“I want to state upfront that the new mining fiscal regime which government has put up in relationship with all stakeholders was never meant to stifle on the industry but to the contrary to ensure that we build our economy and develop the mining industry”

“Government is re-engaging all stakeholders, and mining industries to make sure that we have a win-win situation going forward. Regrettably there has been a lot of inaccurate information put across in the public domain to this call with inflated and false predictions painting a picture of the consequences of the policy of government”.

“This definitely has a potential to damage government’s reputation as a desired investment destination. And you are aware that the proponents to this discourse were envisaged to ensure that they develop such a narrative or perception,” Musukwa said.

One of the biggest contentions has been the huge value added Tax – VAT refunds which the mining houses have been claiming from the treasury estimated at over US$700 million per annum.

The Zambian government has moved to scrap VAT which results in refunds and replace it with a final Goods and Services Tax – GST from 1st April 2019. The rates for GST are yet to be finalized as the government has re-engaged the stakeholders before finalizing and announcing the final tax rates.

The government has signaled a strong stance to its employees on issuing contradictory statements. The last time, it was then National planning minister Lucky Mulusa who was shown the door for a similar incidence of issuing contradictory statements.

File photo below is former ZCCM – IH CEO Anthony Kasolo

 

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Markets

Who is Geoffrey Mtonga & how he started his own business

Geoffrey Mtonga is a 29 year old Chipata upcoming businessman who has ventured and is making notable strides in the carpentry business while others still think carpentry is a thing of a past, not fashionable and rather opt to get employed.

Mtonga is the last born in a typical large Zambian family of 7 and having being raised in Chipata, the capital of Eastern province of Zambia, he did his primary and secondary school right in the far eastern city of Chipata, and then did General Agriculture before going to pursue his Diploma in Secondary teaching.

Believe in yourself, only then can others believe in you

In an exclusive interview with Zambian Business Times-ZBT News analyst, Mtonga explained how he believed in himself and his ability to make furniture for himself upon observing how it was done by more experienced and established carpenters.

“I never really planned to get into carpentry but interest grow as I observed how furniture was made by some other carpenters and then came a time when I wanted new furniture made for me, I then thought why not try to make my own of which I did. I had always had this hidden interest in carpentry”, he narrated.

Start with whatever amount of capital you have

Mtonga says that was the beginning of his capentery business journey as many who visited his home and saw his works could not belive but praises him. From what these potential customers were praising me on, I knew that I was onto something here.

With only K70 to buy him basic tools such as a saw and hummer and two promising customers at inception, he began to make furniture. He stated that the most important thing to do is to start.

Today the company has grown with it having more than just a hummer and saws, but also power tools such sawing machines and other equipments as well as employing 2 permanent workers. We also get extra temporal workers when we have more orders.

So, instead of compounding the current high levels of youth seeking formal employment, we instead have created two permanent jobs and we plan to expand and create more jobs as we grow our business.

Every business has challenges, find solutions or alternatives

He further said that just like there are challenges in other fields of even formal work, he too faces challenges in the carpentry and furniture business.

One of them being the cost of materials. As Zambia had a thin local manufacturing base and does not produce its own materials, we have to buy imported materials from countries like South Africa, Malawi and China and making the cost of landing the material expenses very high.

Use social media to advertise your business

Mtonga said that with the help of social media platforms like facebook, twitter and you tube, he has been able to attract a notable number of audiences as he uses it for advertising his works and making his business reach to most parts of the country.

Advertising on social media platforms is much more cost effective especially for a small business, you can also reach out to business friendly media like ZBT who are able to support local small and medium size businesses.

Geotrice Furniture is now 4 years and continues to grow

Geotrice Furniture was birthed in 2015 and through the 3-4 years of operations now, the company has grown financially from just having to make 1 set of furniture in a period of 2-3 weeks.

From making a profit of K1, 500 per month from day two sets of furniture per month, to making 4-5 sets in a period of 1-2 weeks and a minimum profit of K6,000- K7, 000 per month within a period of 3 to four years (profit after all direct expenses and depending on the availability of the material) is an excellent growth rate.

According to ZBT analysts projections, if Geotrice furniture sustains this growth rate in profits for the next 10 years, they could be making K30,000 profit after direct costs per month and K360,000 per annum.

Zambians should support local businesses and buy local

There is this old notion that every thing imported is more durable and of better quality, but its now clear that some of the products we make locally are even of better quality and more durable.

Buying local needs to be encouraged and those of us who make local products and services need to raise to the challenge. Buying local is what will grow our country. Even employment levels from small and medium size businesses would also grow.

Sustained growth and skills development is key

“I believe we as a company and me as the founder are still growing and I want to nature my skills. I plan to work even harder as my dreams are to get bigger machines that will enable me to grow my company and compete at national and international level”.

“I would also love to partner with other suitable people or companies that would come along as my wish is to work with companies like carnival furniture’s, fun city etc who can start stocking out products”, Mtonga told ZBT

Mtonga further said that there a lot of youths out there coming out of grade 12 and colleges. If you look at the available formal jobs, it’s impossible that all can be offered jobs at once and in as much as it is hard to find a formal job out there, it’s high time we all realised our potential and ability.

Follow your passion and God given gift

Let’s identify our God-given gift and put them to use as it doesn’t matter whether the beginning is small, rather believe in yourself and nature your skill to make it work unlike just sitting and doing nothing.

Article by ZBT news analyst Grace Namunyola. If you have a story or know someone who has one that would inspire others in business, email us: editor@zambiabusinesstimes.com

Photo below is Geoffrey Mtonga and some of his works.

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Markets

By James Nyirenda
The Economic Association of Zambia EAZ president Dr. Lubinda Habazoka has said rebasing of the Gross Domestic Product (GDP) will give the true reflection of the economy and improve the sectors that have come up which are yet to accounted.

Speaking in an interview monitored by ZBT, Dr. Habazoka added that the country will highly benefit from the exercise through awareness and computing ratios of certain sectors contribution to the GDP.

“For example if you want to find out how the economy is growing, with the rebased GDP you are able to get the accurate economic stance, because if an investor only invest in economy of a certain size now it means that Zambia is going to loose out if it does not calculate its GDP correctly.

So with rebasing Zambia is going to benefit,” he said.
He further said GDP rebasing is an internationally accepted practice and most countries conduct the exercise every after five years.

“At the moment I do not see any challenge would come as a result of this exercise, but I think it is just one of those important exercise unfortunately people do not understand.

They should do more research about GDP rebasing to be able to understand and appreciate the process,” he cited.
Government will undertake an exercise to rebase the Gross Domestic Product, an exercise last conducted in 2012.

The rebasing of the Gross Domestic Product will provide reliable and updated information on the current size and structure of the national economy.

The rebasing will also provide Government with an opportunity to update and develop appropriate social and economic indicators to measure progress in achieving the objectives under the National Development Plans and the Sustainable Development Goals.

Central Statistics Office – CSO projected a cost of about US$5 million required to conduct some tailor made surveys and other statistical requirements to conform to the internationally accepted norms and procedures needed to rebase.

The GDP for Zambia is highly expected to grow in the range of 20 to 30% as the economy has expanded from the last time the GDP was re-caliberated in 2012.

The increased GDP is also expected to wade off the perception of high debt to GDP levels and create room for further infrastructure funding.

Copper production from FQM’s Kalumbila Mine not included in Current GDP numbers as mines only started full production post 2012

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Markets

Africa’s largest Coca-Cola bottler, Coca-Cola Beverages Africa (CCBA), announced that it has received the requisite regulatory approval to acquire Fairy Bottling Zambia Limited and will commence its first day of operations effective today, February 4th, 2019. The Competition and Consumer protection commission is the state agency that is responsible for reviewing acquisitions between rivals, near rivals or competitors to safeguard public interest and prevent monopolies from taking hold.

According to a press statement availed to Zambian Business Times-ZBT today, Fairy Bottling which produces AquaSavana and Super Maheu (fermented maize beverage) as well as other soft drinks trademarks Acquisition has been approved. With this deal, CCBA has acquired the production facility in Lusaka and the sales and distribution infrastructure.

This follows the recent acquisition by CCBA of Kalundu Beverages Limited, trading as Coca-Cola Beverages Zambia (CCBZ). By combining the current sparkling soft drinks business of CCBA in Zambia with the state of the art production and distribution capability existing at Fairy, CCBA will be a more cost-effective operator in Zambia.

“We believe that the acquisition of Fairy Bottling allows us to achieve greater efficiencies which ultimately means better value for consumers and improved service to customers,” said Norton Kingwill, the managing director for CCBA’s Southern Africa region which includes Namibia, Botswana and Zambia.

Kingwill confirmed that “the operations of Fairy Bottling will continue as normal and all employees will remain with Fairy after transfer”.

CCBA bottles and distributes beverages whose trademarks are owned by The Coca-Cola Company (TCCC) or TCCC’s affiliated entities and is the world’s 8th largest Coca-Cola bottler by revenue. Including this most recent Zambian acquisition, CCBA now has over 16 000 employees across its operations in Africa with more than 30 bottling plants in 12 countries.

The creation of CCBA in 2016 was designed to advance a consolidated, more successful Coca-Cola system on the continent and now also in Zambia. CCBA aims to create more shared opportunities for the business, the local economy and communities served across the value-chain, including local suppliers and retailers.

Coca-Cola Beverages Africa (CCBA) is the 8th largest Coca-Cola bottling partner worldwide by revenue and the biggest on the African continent, accounting for about 40% of all Coca-Cola volumes sold in Africa.

CCBA began its operations as a legal entity from July 2016 having been created as a direct result of a merger between non-alcoholic ready to drink bottling operations of The Coca-Cola Company, SABMiller and the Gutsche Family Investments and the now shareholders are the Coca-Cola Campany having 65.5% and Gutsche Family Investments 34.5%.

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