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Markets

The National Pension Scheme Authority (NAPSA) Director General Muyangwa Muyangwa says the Authority has disbursed 35 million dollars out of the total $300 million dollars towards the Ndola Dual Carriage Way construction.

Responding to a Zambian Business Times (ZBT) query on the update on the construction of the road, Muyangwa said the project is advancing, and concrete visibility is expected by the end of this year.

“We have disbursed $35 million dollars out of the $300 million, we are still quite a long way to go, but we are happy with the progress reports that we are receiving, we should be able to start seeing a concrete road as we approach the end of the year in some of the segments,” he said.

He echoed that the Authority will give another progress report in the aspect of the dual Carriage project in the near future.

The Pension Scheme Authority (NAPSA) signed the $300 million funding and investment agreement for the rehabilitation and upgrade of the US$650 million 372-kilometre Lusaka-Ndola road to a dual carriageway.

The long-awaited Lusaka–Ndola dual carriage way is more than a mere transportation link and is expected to create opportunities to empower communities and drive economic growth.

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The National Pension Scheme Authority (NAPSA) Director

Markets

Economist Esther Banda has cautioned that despite the reported increase in copper export earnings, the overall economy has not seen significant improvement due to the mining sector’s underutilization.


According to the Zamstats report, copper export earnings rose from 15.7 percent in May to 19.2 percent in June 2024, representing a 22.6 percent increase.


Speaking in an exclusive interview with the Zambian Business Times (ZBT), Banda emphasized the urgent need for strict policies to ensure that the country benefits fully from its mineral resources.


She expressed concern that the increase in export earnings does not translate into tangible benefits for the economy, as the full potential of the mining sector remains untapped.


Banda called for a concerted effort to compel investors to remit the required revenue into the country, stressing the importance of seeing through policies that are intended for the country’s good.
She highlighted the abundant resources of the country and emphasized the need for policies that support the effective utilization of the mining sector.


She underlined the pivotal role of the mining sector in the country’s economy and urged against distraction or a shift in focus to other sectors.


Banda suggested that while agriculture and tourism are important, they should support the mining sector and not divert attention from fully utilizing the country’s mineral wealth.


She stressed the importance of ensuring that policies designed to benefit the country are implemented effectively, especially in a country that is one of the largest producers of copper but has experienced challenges in meeting Euro Bond payments.


“We need to make sure that the balance of payment is not just on paper, it’s unfortunate that we have never had a politician that has compelled the investors to remit the required revenue into the Country, but we have every right and mandate to see that the export earnings are generated and are useful to the economy,” she said.


“When certain policies are being pronounced they are for the good of the Country, we cannot be a Country that is one of the largest Producers of Copper but yet be the first to default a Euro Bond payment, whether it was as a result of Covid 19 or not but what am saying is that some of these policies should be seen through until the end of implementation,” she said.


Banda emphasized that the Mining Sector is pivotal to the Country’s Economy and there should not be any distractions or change of focus to other sectors like agriculture or tourism.


“These are just sectors that can support the mining sector because we have copper, we have many minerals, why then don’t we sit down and say how best can we utilize the mining sector, we can’t continue.

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Economist Esther Banda has cautioned that despite

Mining

Concerns are growing over the prolonged closure of the Kasenseli gold mine, despite President Hakainde Hichilema’s explicit directive to have the mine operational.

The delay in reopening the mine, which has been shut since 2021 has raised questions about the government’s commitment to reviving the crucial gold mining industry.

President Hichilema had in May 2024 ordered the operationalization of Kasenseli Gold Mine, along with other mining sites, in a bid to stimulate economic growth and harness the country’s vast natural resources.

However, this directive seems to have fallen on deaf ears, as the mine remains non-operational, prompting frustration and uncertainty among the local community and industry stakeholders.

Speaking in an exclusive interview with Zambian Business Times – ZBT, Mwinilunga Member of Parliament Newton Samakayi has expressed dismay over the lack of progress in reopening the gold mine, emphasizing that mere pronouncements without tangible action have left the community in limbo.

“The President has unequivocally stated that the mine must be reopened, yet on the ground, there is little to no movement towards achieving this goal,” stated Samakayi.

The prolonged closure of Kasenseli gold mine, which was initially launched with high hopes for bolstering the Zambian economy, has deprived the country of a valuable opportunity to strengthen its gold reserves.

The Zambia Gold Company, a subsidiary of ZCCM IH started its official gold mining operations at Kasenseli in June 2020, with great anticipation and hope for the Zambian economy as the huge gold reserves held were believed to be large enough for the setup of a huge gold reserve that could provide a viable alternative to holding of US dollar reserves.

The delay has however placed undue strain on the Bank of Zambia, which has had to hugely rely on gold supplies from private entities due to the dormant state of the Kasenseli mine.

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Concerns are growing over the prolonged closure

Agribusiness


The Zambia Alliance for Agroecology and Biodiversity has emphasized the need for a fundamental agricultural revolution in Zambia.
Speaking in an exclusive interview, the Zambia Alliance for Agroecology Omali Phiri, highlighted the necessity of transitioning to a farming system that benefits not only commercial farmers but also small-scale farmers.
Phiri pointed out that an introspective assessment of past farming seasons, particularly in the face of intense droughts, is essential to rectify past mistakes and pave the way for future agricultural success.
He stressed the importance of reducing dependency by promoting self-sustainability among farmers, advocating for the cultivation of local crop varieties that thrive in adverse weather conditions.
Phiri advocated for a shift towards environmentally sustainable farming practices. He emphasized the significance of diversifying crops and livestock, promoting agroecologically grown food that is free from chemicals and beneficial to both human health and the environment.
Phiri called for a reevaluation of rain-fed agriculture, proposing improved environmental and soil management techniques to enhance agricultural productivity.
Drawing parallels with successful agricultural practices in other countries, he underscored the need for efficient water usage and suggested the incorporation of methods such as mulching to minimize water wastage.
While calling upon the government to provide comprehensive support for small-scale farmers, Phiri urged the formulation of policies recognizing and promoting agroecological practices.
He encouraged farmers to remain optimistic and transition towards a just and sustainable agricultural approach.
“We need to recheck the kind of system of agriculture that we have been using from 1964, since that time of our independence to a type of system where we can also begin harvesting the water as compared to our agriculture system now where the water just runs off and the moisture content dries out so fast,” He alluded.
“But if a farmer is to be accorded an opportunity to create a system on their farm where there is diversity, diversity in crops, diversity in plants, diversified variety of even livestock that helps them to become self-sustaining as well as helps them to sell or produce crops that are ethically bound, we are talking of food that is not full of chemicals, but food that is grown in an agro ecologically manner that is healthy, nutritious and benefitting the environment,” He said.
Phiri further called on the government to support small-scale farmers entirely not just in aspects of FISP but also supporting them in better ways of doing agriculture aside from them just being recipients of the farmer input support program, through incorporating policies that would see to it that agroecology is being recognized.

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The Zambia Alliance for Agroecology and Biodiversity

Tech


Zambia Consumer Association (ZACA) President Juba Sakala has called on mobile service providers to advance their service provision to the public and alleviate the poor network that is adversely affecting businesses.
Speaking in an exclusive interview with the Zambian Business Times (ZBT) Sakala said the Association has made several calls to network providers to amplify their efforts despite the power outages that the Country is facing.
“A lot of businesses have raised concern over the poor network, we know there are power outages, and out of that we know that you cannot do transactions, you can’t send emails, you can do requests and there are times when business entities want to hold conferences but they can’t do that because there is lack of network, and this has made the businesses shrink, and if we talk about access to internet a lot of businesses are severely affected, and due to outages there are unable to make tangible profits due to lack of connection to partner’s,” he said.
Meanwhile Sakala said the Government must ensure to provide adequate solar loans to SMEs for them to survive through the prolonged outages.
“They want everyone to start producing power but how do they produce power when they do not have equipment, so the first thing they must do is to give people solar equipment, give them at soft loan, so they should start with one thing by giving the SMEs adequate solar equipment, if you give them equipment you are basically offloading the burden from ZESCO, so that whatever ZESCO has is concentrated on the Mines,” he said.
The call to action from the Zambia Consumer Association underscores the pressing need for improved infrastructure and support mechanisms to bolster the resilience of small businesses in the face of power outages.
As stakeholders evaluate the impact of inadequate network coverage and power disruptions on economic activities, the emphasis on proactive measures and collaborative efforts has gained momentum in addressing these pressing challenges.
This advocacy for enhanced mobile network services and sustainable energy solutions is of paramount importance to the country, signaling the imperative for industry players and policymakers to address the critical needs of businesses and facilitate a conducive environment for economic activities amidst the current operational constraints.

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Zambia Consumer Association (ZACA) President Juba Sakala

Sport

FAZ Super League side Nchanga Rangers Football Club says the deal it signed with the two Cameroonian junior international players, Ikpeme Stephan Aniekan, and Ygor Rincesse Tsolefack is a non-disclosure that does not allow them to state how much the players are expected to be getting.

Nchanga Rangers Football Club announced the signing of two Cameroonian junior international players, Ikpeme Stephan Aniekan, and Ygor Rincesse Tsolefack, to strengthen its squad for the 2024/2025 season.

Aniekan, a holding midfielder, and Tsolefack, a defender for the Cameroon under-23 team, signed contracts with the Konkola Copper Mine (KCM) plc-sponsored side.

Speaking in an exclusive interview with Zambian Business Times (ZBT), officials from Nchanga Rangers Football Club said, “The agreement is a non-disclosure agreement, it doesn’t allow us to publish what is in the contract to the public.

“The agreement is between the two parties and the non-disclosure doesn’t allow us to disclose the value of the players and other details because it is what the two parties agreed to sign and if we give the details then our partner may take us to task.

“When giving information to the public, we have to check the terms and conditions of the contract and most of the contracts we have done and the press statements we give out do not provide many details because there is a non-disclosure agreement.

“The agreement of the two international players Ikpeme Stephan Aniekan and Ygor Rincesse Tsolefack will run for a year, which is the 2024/2025 Season,” added a Changa Ranger official who asked for their details to be withheld.

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FAZ Super League side Nchanga Rangers Football

Companies

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.

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Zambia's exports to the Democratic Republic of

Companies

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 31st 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.”

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HLB Zambia, the local unit of an

Companies

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.”

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The National Pension Scheme Authority – NAPSA

Mining

The continued increase in copper production this year has been attributed to the low rainfall which was recorded in the 2023/2024 rainy season.

Speaking in an exclusive interview with the Zambian Business Times – ZBT, Mines and Minerals Development Permanent Secretary Dr. Hapenga Kabeta, emphasized the correlation between low rainfall and increased copper production, stating, “The major driver is the low rainfall in the North Western Province, which holds Kansanshi and Lumwana. From January to March, when there is usually rain, production figures seem to be depressed, but this time around, due to insufficient rain, production has increased.”

Zambia has continued witnessing increase in copper production with the May 2024 minerals production report indicating a 10% increase in copper production, reaching 282,654 metric tons from January to May 2024.

Zambia’s copper production has increased from 259, 967 metric tons produced from January to May 2023 to about 282, 654 metric tons produced within the same period this year representing about a 10 percent increase.

According to the Mines Minerals Productions report seen by the Zambian Business Times – ZBT, FQM Trident Limited emerged as the frontrunner in this growth, contributing 36% in production.

Following closely behind, Kansanshi Mining displayed 23%, while Lumwana Mining Company and NFC Africa Mine contributed about 14% and 10% respectively.

However, the report also highlights variations within the industry, with Mimbula Minerals showing the lowest contribution at 2%, with Mopani contributing only 5% while CNMC Luanshya contributed 7%.

“The major driver is the low rainfall in North Western Province which holds Kansanshi and Lumwana. From January to March normally when there is rain, production figures seem to be depressed but this time around because there was not enough rain the production has increased.” Remarked Dr Kabeta.

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The continued increase in copper production this