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The 3 hotels have added 360 bed spaces

The travel and tourism industry has seen significant progress in terms of both investments and number of bed spaces created, In 2018 alone, the industry has added about 360 bed spaces just from top three hotel investments (excluding other hotels and Lodges opened across the country in 2018). The three big three hotels in order of amount invested include Hilton Garden Inn Lusaka, Tsogo Sun’s Garden court Kitwe and Sarovar Premiere Hotel Lusaka.

All the three hotels above have committed to local sourcing of their inputs which the local small and medium size businesses are expected to take advantage of to grow their businesses. Its these industry linkages which when fully exploited can benefit the local private sector industry and spur further connected sectors industrialisation.

The hotel industry is also critical to the growth of the airline and transport sector as the travelers will have to be transported by mostly air and road to the various sites of interest. Zambia has already seen an increase in both airline traffic and visitors numbers quarter on quarter. The travel and tourism sector is also key as a source of foreign exchange for the country as travelers transactions involve forex. Below are the top three hotels unveiled in 2018 which between themselves account for an addition of over 360 bed spaces and total investments of over

Hilton Garden In – Lusaka
On 7 August 2018, Lusaka, the capital of Zambia, officially welcomed Hilton Garden Inn which added 148 bed spaces to the travel and tourism industry. The hotel is the second Hilton Garden Inn property to open in Sub-Saharan Africa this year, and joins 42 existing Hilton properties in Africa. Hilton Garden Inn Lusaka Society Business Park is the latest addition in the recently refurbished mixed-use development Society Business Park (SBP), offering leisure and business traveller alike access to Hilton’s renowned hospitality in the capital.

The hotel is located in the heart of the city with up to four shopping malls within a five-kilometer radius and is just a 30-minute drive away from Kenneth Kaunda International Airport. Hilton Garden Inn Lusaka Society Business Park offers guests access to 148 guest rooms with panoramic city views, including four junior suites with kitchenettes located on the 18th floor.

The hotel also has an all-day dining restaurant – Garden Grille – for those looking to start their day with a hearty breakfast or indulge in various international cuisines in the evening. After a day exploring the city, guests can head over to the hotel’s bar and lounge, which is perfect for relaxing, catching up on emails or having a quick bite to eat.

The developer for the Society House Hilton Hotel Napsa is reported to have invested about USD98 millions in the mixed use complex with the hotel being the biggest part of this development.

Tsogo Sun’s Garden Court Hotel – Kitwe

In the same month of August 2018, Zambia’s second largest city by population, Kitwe, welcomed the Tsogo Sun’s Garden Court Hotel. It opened up a new level of contemporary comfort, international experience and service-excellence in Zambia’s Copperbelt. 130 rooms with modern design and familiar comforts, 6 adaptable event venues equipped for productivity, the Copper Club Restaurant, Bar & Terrace for dining and relaxing, and the best of home and holiday extras including hotel-wide WiFi, a rim flow pool adjacent to the terrace and landscaped gardens, and a 24-hour gym.

Each of Garden court Kitwe hotel’s 130 modern rooms include nothing less than a comfy bed, flat-screen TV, free WiFi, integrated workspace, en-suite bathroom, as well as air-conditioning, blackout curtains and sound softening windows to ensure a great night’s sleep in Kitwe. Six customisable venues in the hotel and the adjacent conference centre can be adapted for small boardroom meetings and large scale conferences or elegant evening events for 200 or more delegates.

An on-site business team, inclusive AV technology and menus to suit your culinary preference. The Copper Club is three unique settings in a one-of-a-kind destination for connecting, relaxing and dining. Property developer, the National Pension Scheme Authority – NAPSA are reported to have pumped in about USD 38million for the construction of the Hotel

Sarovar Hotel – Lusaka

On 12 November, Lusaka again welcomed an international 82 beds Sarovar Premiere Hotel. This is a first ever all ensuite hotel in Zambia. According to the property developer, Neelkanth Group Chairman, Subash Patel, the hotel is a result of an investment of about USD 20million that the group has pumped into the multi-storey structure. He stated that the Neelkanth group owned by Tanzanians of Indian descent started its trading business in Zambia way back in 2008.

The hotel comes with the Copper Pot restaurant with all day dining, a Roof top Grill with a view of the city of Lusaka, the Swirl bar, the Sweet talk pastry Shop & Tea lounge, the Emerald banqueting and conference facility and the Conclave board room. The hotel has a killer location next to one of Lusaka iconic Manda Hill shopping mall within a fast developing and high end corporate and leisure enclave.

The Tanganyika and Kasaba Bay enclave is currently being showcased and is expected to attract a core resort hotel brand name to fully establish the Northern tourism circuit for tourism. The core hotel would then anchor the tourism offering for the area. The Northern province expo has attracted top property developer funders such as Napsa which would unlock the area once funding is secured and a suitable resort hotel brand is sourced to run the facility and co-ordinate the local and international marketing and attraction of visitors.

Below is newly opened Sarovar Premier hotel in Lusaka

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Markets

The Bank of Zambia Governor Dr. Denny kalyalya says the rapid depreciation of the Kwacha by 19.5% against the US dollar in the month of September to date was initially triggered by a sustained increase in pipeline demand for oil procurement.

The central bank Governor furthers stated that the Kwacha slide was compounded by the strengthening of the US dollar following the hike in the US dollar federal Reserve lending rate and sustained negative market sentiment arising from the downgrade of Zambia’s credit rating.

He said that the depreciation was despite net supply of foreign exchange, mainly from the mining and construction sector. For the quarter as a whole, the kwacha depreciated by 4.2% against the US dollar to a quarterly average of K10.31 from 9.89 in the second quarter.

The governor revealed this during a media briefing on the Monitory Policy Committee statement held at Bank of Zambia on Wednesday.

During the presentation, it was noted that the monitory policy Committee MPC has maintain the policy rate at 9.78 % for November 19-20 2018. Although inflation is projected to exceed the upper bound of the 6-8% target range during the first three quarters of the forecast period, it is expected to return to the range thereafter.

Inflation is projected to exceed the upper bound of the 6-8% target range in the first three quarters of the forecast period, but the target range and trends will return at mid-point of 7.0% thereafter.

In addition, the MPC took into consideration the lower than expected and fragile economic growth. Based on persistent negative business sentiments, indication are that growth for 2018 may be lower than projected and the need to minimize potential vulnerabilities to the financial sector.

“Decision on the policy rate will continue to be guided by inflation forecasts and outcome as well as progress in the execution of fiscal consolidation measures. Should the heighten risk to inflation materialize, an upward adjustment in the policy rate may be necessary to prevent inflation from persistently staying above the target range” the governor said.

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Markets

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Companies

Puma Energy Zambia Managing Director – MD Pinchi Simukwai has said the company is obsessed with product quality and safety of people and customers whilst working hard to deliver service excellence.

Simukwai was speaking on Wednesday morning during the donation ceremony of $20, 000 to the Zambia open organising committee at Nkana Golf Club in Kitwe attended by the Zambian Business Times – ZBT.

The Puma MD stated that “ Puma energy is about making a real difference in the lives of ordinary people and all the communities within which we operate,”.

“We have a growing network of over 3,130 high quality service stations and counting across 49 countries.”
He noted that it is with pleasure for Puma energy to partner and support major sponsors like Mopani copper mine in hosting this year’s golf tournament.

“When the sponsorship manager, Phil Harrold approached my office last month and announced that Mopani Copper Mines – MCM is a major sponsor for this years Zambia Golf Open to be hosted at this beautiful Nkana Golf Club, the board and management at Puma Energy Zambia made the decision to support Mopani in this endeavour. It is for this reason that Puma is today making a donation of $ 20,000 to the Zambia Open Organising committee,” he disclosed.

He expressed gratitude with the works done by at the venue, “ Today we have the privilege to see the major works that have been undertaken by Mopani and Nkana Golf Club to rehabilitate the golf course and we can proudly say that Nkana Golf Club has indeed attained the status fit to be called an international golf course”.

We wish to also encourage Puma energy business partners to travel and come to test the course to experience it for themselves.

Meanwhile Zambia Open Organising Committee, Emmanuel Mutati said it is a delightful moment for the organising committee to have received the cheque and added that Puma has been a reliable partner for the past five years.

“We are greatful for the kind of support you have rendered to us and we trust the relationship has matured. I must mention that through your support we have extended the tournament to the junior golfers as they are future.

He also said the competition has managed to attract professionals outside the country. And about K400 thousand has been spent so far for preparations such as logistics and 50 percent activities have are done.

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Companies

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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