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The Zambia Institute of Chartered Accountants – ZICA has emphasized the need for the Zambian government to underpin institutions to address the issue of financial illicit flows and unaccounted wealth.

ZICA pointed to the Financial Intelligence Centre’s report, which revealed a significant increase in illicit financial flows and tax evasion in the first quarter of 2024, with a substantial amount attributed to foreign nationals operating businesses in Zambia.

Speaking at a media briefing attended by the Zambian Business Times – ZBT, ZICA President Yande Siame Mwenye emphasized the importance of accountability and transparency in the utilization of financial resources, stressing the need for tangible actions to deter misappropriation of funds.

Mwenya added that ZICA has adopted the International Financial Reporting Standards S1 and S2, emphasizing the growing integration of financial and sustainability information for decision-making and risk management.

“Both locally and internationally there is a move towards a future where financial data and sustainability information are inextricably linked, and this correlation is becoming increasingly necessary for decision making, useful reporting, and for business from a risk management perspective.” She stated.

Mwenye further alluded that there is a need for accountability and transparency when it comes to the utilization of financial resources.

“This should not just be on paper but should be seen to be done, where there is misappropriation of public or private funds there should be consequences and it is hoped that this would serve as a deterrent.” She alluded.

Mwenye added that the Financial Intelligence Centre (FIC) quarter 1 2024 Trends report highlighted an increase in illicit financial flows and tax evasion which amounted to about K61 Billion of which most of it was by foreign nationals that had set up business operations in Zambia.

“There is a need for the Government of the Republic of Zambia to strengthen institutions for them to tackle financial illicit flows and unaccounted wealth. As you would appreciate when resources do not go to the intended purpose, there is a regression in the growth of our economy as a nation.” She stated.

Meanwhile, Mwenye has urged the government that for 2024 to be a year of progress in terms of the successful implementation of the green growth strategy, there is a need for the climate and sustainability bill to be tabled in parliament otherwise the implementation of the strategy would be a pipe dream as it requires legislative backing.

She further called on the government to employ resources in the Metrological department as there are projections that the nation could experience the opposite of El Nino.

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The Zambia Institute of Chartered Accountants –

Uncategorized

Chisamba District Commissioner Joel Mboyoma has disclosed that the construction of the 100 megawatts solar power plant in Chikonkomene ward of Chisamba District of Central Province will take maximum of 2 years.

The announcement of the 100MW solar project among other solar projects was seen as a short term measure by the new dawn government to deal with the current power crisis which has negatively affected businesses across the country.

Speaking in an exclusive interview with the Zambian Business Times – ZBT, Chisamba DC Joel Mboyoma however said so far the clearing of the land has commenced with a contractor to undertake the Construction works engaged but the project will be completed within  2 years.

Mboyoma said the full implementation of the 100 megawatts solar power project in Chikonkome ward of Chisamba District will bring in more benefits to the local community in the area.

“The benefits are huge ranging from employment already people are getting engaged and will have more than two hundred people engaged at the peak of the project, local people will be employed but then obviously that will change their economic status as individuals and the entire community as there will be more money in circulation which will be a plus and then we are also seeing people wanting to investing around and near the solar plant, we have seen shops coming up other houses which they will be renting to people that will be working there so the economy of of the district will improve.” As a district is not about the power that we will be benefiting from but also in terms of employment currently  works clear the area where the solar panels will be installed is going on and we have close to 100 people from the community that have been employed and the number is likely to increase to over 200 so there that economic value that the people in the district and especially around the project area that will accrue to them.

“The project will also attract other investment as we already have people that are coming  through to consult if they invest around the project area and see how they can access the power from the plant so we are basically I think going to have some sort of industrial hub around the 100MW solar plant which is in Chikonkomene ward of Chisamba district and we are very grateful to government for this project which is done through ZESCO.” He said.

“So we are hoping once everything starts, by 2026 everything should be completed of course there are issues of the materials that are required to set up the plant and if there will be any delay it has to be on the movement of the materials that are required, the solar panels and other accessories that are required to make sure that that the plant is completed and also issues of securing the area because is a big area.”

Meanwhile, Mboyoma could not reveal the total budget for the project adding that ZESCO will be in a better position to give out contractual terms and the amounts that are to be paid.

Asked if two years is not too much for such an important project at a time when the country is facing huge power deficit, Mboyoma said, “it’s not too much because I said within it can be 2 years or less for you and me that understand the technical aspects that are required in the installation of such a plant we would rush such a project because there are are alot of technical issues that have to be looked at just to make sure that the plant serves that people.”

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Chisamba District Commissioner Joel Mboyoma has disclosed

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