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Lifestyle

 

The recent increase in Zambia’s
Monetary Policy Rate (MPR) to 13.5 percent has raised concerns about the
country’s ability to transition to renewable energy as the energy expert
Christopher Mapulanga has warned that the high cost of borrowing to fund
investments may lead to significant delays in the adoption of renewable energy
sources.

Speaking in an exclusive
interview with the Zambian Business Times (ZBT), Mapulanga emphasized that the
elevated cost of borrowing is likely to make many energy projects prohibitively
expensive.

He said this, in turn, could
prompt energy companies to either cancel or postpone their investments in the
renewable energy sector, slowing down the transition process.

Mapulanga noted that renewable
energy projects often rely heavily on upfront capital investment. “The surge in
interest rates could not only impede progress in renewable energy but also
affect traditional energy projects such as oil and gas exploration, which
require substantial investment.”

Mapulanga explained that the
higher interest rates would result in increased operating costs for energy
companies, ultimately leading to higher prices for consumers. He warned that
the MPR increase could significantly impact the profitability of energy firms
and contribute to sluggish growth in the sector.

“This could slow down the
transition to renewable energy sources, as many of these projects depend
heavily on upfront capital projects, this might also affect traditional energy
projects like oil and gas exploration from getting the necessary
investment,” he said.

Mapulanga said the higher
interest rates will trickle down to increased costs of operating for energy
companies, which will then culminate into the increase of the commodity for the
consumers.

He echoed that the MPR increase
will slow down the profitability of most energy firm and lead to a slow growth
of the sector generally.

 

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  The recent increase in Zambia'sMonetary Policy Rate

Lifestyle

The National Action for Quality Education in Zambia – NAQEZ has charged that the overreliance on the Constituency Development Fund (CDF) has contributed to the slow progress in addressing the desk shortage in schools.

Speaking in an exclusive interview with Zambian Business Times ZBT, Dr. Aaron Chansa, Executive Director at NAQEZ, stressed that if this issue is not promptly resolved, students will continue to suffer from the lack of proper seating arrangements well beyond 2024.

Dr. Chansa expressed serious concerns about the lack of desks in schools across the country and emphasized that the situation has led to students sitting on the ground due to the scarcity of desks.

To tackle this pressing challenge, Chansa proposed the establishment of an alternative funding mechanism outside of CDF to ensure a steady supply of desks. He also emphasized the importance of mobilizing the private sector to contribute to desk provision in schools.

Expressing his dismay at the prolonged lack of desks in Zambian schools, Chansa urged for swift action, stating that it is unacceptable for students to endure such conditions in a country that has been independent for over 60 years.

He underscored the need for efficient and expedited processes, expressing hope that the Minister of Education’s commitment to addressing the issue will yield tangible results.

Chansa also highlighted the need for the government to address the challenges facing the CDF, emphasizing the importance of streamlining fund disbursement to ensure that resources are effectively allocated to address the desk shortage. He stressed that education should be viewed as an investment rather than a cost, and called for a more concerted effort to prioritize quality education in the country.

Chansa emphasized that the development of schools should be a matter of political will, and expressed hope that the government’s commitment to free education will extend beyond rhetoric to address the fundamental resource shortages, including access to computers, desks, books, and housing for teachers.

The lack of adequate desks in schools is a critical issue that demands urgent attention and concerted efforts from all stakeholders to ensure that students have the necessary infrastructure to support their learning and development.

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The National Action for Quality Education in

Lifestyle

A source at Lusaka City Council
has exclusively disclosed to the Zambian Business Times – ZBT, that the Local Authority
is currently collecting over K131 million kwacha per month from the 4 bus stations
located in the central business district.

This means on an annual basis, on
average the Local authority collects about K1.5 billion from only 4 bus
stations in Lusaka.

Speaking in an exclusive interview
with the Zambian Business Times, a source within the Lusaka City Council
revealed that the council collects about K800,000 from each of the top 3 bus
stations in Lusaka, with even higher amounts being generated from the
intercity bus station due to its accommodation of international buses.

The source at Lusaka City Council
said about 3,200,000 plus is being collected from one bus station like Lima
Tower on a monthly basis without the contribution from the market trades.

“Lima
Tower pays about 114, 285 thousand Kwacha to the council as levy payment on a
daily basis.”

“We
can’t compare intercity with other bus stations because intercity has
international busses and due to that, it contributes a lot to the council which
is about 200,000 to
300,000 as a levy on a daily basis”

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A source at Lusaka City Councilhas exclusively

Tech

The Engineering Institution of Zambia has been elated by the commencement of the construction of the Lusaka – Ndola road which is expected to boost the Country’s economic growth.

Speaking in an exclusive interview with Zambian Business Times – ZBT, EIZ President Wesley Kaluba said the institution was happy to witness the groundbreaking ceremony of the Lusaka- Ndola dual carriageway because engineers will have full participation in the project.

“The project will also bring about learning because as EIZ our job is to regulate and register engineers in the country and it mandatory that all the people that will take part in the project are members of EIZ”.

The institution understands the benefits of the project it brings not only for the country but the SADC region, it a blood artery to the economy it links the mining provinces from the north to the south and our neighbors, said Kaluba.

Kaluba said EIZ expects to see noble participants in the project form the local engineers and the key resources from the management engineers because through the year EIZ has produced qualified engineers that have skills and plans in such projects, he added.

He noted that EIZ will make sure that the engineers on the project are members of EIZ, to insure they deliver long lasting project because the road will be used for trade and therefore it has to be of standard.

“EIZ also expects to see experienced staff operators of the project, because these people can be able to bring order at the work place.He further said that the road will reduce the cost of doing business in a way that people will be able to transport there goods at a fast rate.

“The road reduce on the rate of death because the road will be in good condition for vehicles and it will reduce traffic, he added.” He remarked

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The Engineering Institution of Zambia has been

Mining

The Central Bank, the Bank of Zambia – BoZ, which holds Zambia’s reserves, disclosed that it purchased gold amounting to US$10.6 million in the first quarter of 2024.

Bank of Zambia Governor Dr. Denny Kalyalya said the Central Bank had purchased gold amounting to US$10.6 million in the first quarter of 2024 bringing the total value of gold acquired locally by the Bank of Zambia to US$168.1 million since the initiative began.

Speaking during the presentation of the monetary policy statement for quarter 1 2024, attended by the Zambian Business Times – ZBT, the Bank of Zambia Governor Dr Denny Kalyalya said the US$10.6 million worth of Gold purchased in Q1, brings the total value to US$168.1 million since the Bank started purchasing gold locally.

“In the first quarter of 2024, gold purchases amounted to US$10.6 million. This brings the total value to US$168.1 million since the Bank started purchasing gold locally.”

Furthermore, Dr. Kalyalya highlighted the growth in Gross International Reserves, which increased to US$3.6 billion at the end of March 2024, equivalent to 3.9 months of import cover. This marks an increase from US$3.3 billion at the end of December 2023, which represented 3.7 months of import cover. He attributed this growth primarily to net statutory reserves and underscored the positive impact it has on Zambia’s economic resilience and ability to weather external economic challenges.

The Bank’s proactive approach to diversifying its reserves through gold purchases and the steady increase in Gross International Reserves reflect a strategic effort to safeguard Zambia’s financial security and ensure stability in the face of global economic fluctuations.

 Meanwhile, Dr Kalyalya said, “Notwithstanding market support, Gross International Reserves increased to US$3.6 billion (equivalent to 3.9 months of import cover) at end-March 2024 from US$3.3 billion (3.7months of import cover) at end-December 2023. “This was mainly attributed to net statutory reserves.”

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The Central Bank, the Bank of Zambia

Markets

Zambia is currently facing a major economic crisis as inflation continue to soar, causing financial strain on families and businesses.

According to the latest statistics obtained by the Zambian Business Times, Annual inflation for May 2024 increased to about 15% (14.7 percent) from 13.8 percent recorded in April 2024. This means that on average, prices of goods and services increased by 14.7 percent between May 2023 and May 2024. This development was mainly attributed to price movements of both food and non- food items.

The continued rise in inflation is a major concern for families who are already struggling to make ends meet.

Zambia’s current inflation at 14.8% about 15 percent is 7% above the government 6– 8 percent target band which has been there for quite some time now but has not yielded anything.

Of the overall 14.7 percent annual inflation, the Food and Non-alcoholic beverages group contributed 9.4 percentage points, while the Non-food group accounted for 5.3 percentage points. Of the 5.3 percentage points, Transport contributed the highest at 2.0 percentage points, followed by Housing, water, electricity, gas, and other fuels at 1.0 percentage points, Furnishings, household equipment & routine household maintenance, and Clothing & footwear at 0.8 and 0.6 percentage points, respectively. The rest of the Non-Food group accounted for the remaining 0.9 percentage points

A disaggregation of the annual inflation by province shows that annual inflation during the month under review increased for; Central (18.4 from 17.2%); Copperbelt (14.7%from 13.9%); Eastern (14.8% from13.8%) Lusaka (13.9% from 12.0%), Northern (9.2% from 9.1%); North-western (12.5% from12.2%) and Southern Provinces (16.6% from 16.2%). Annual inflation decreased for Western Province (20.1% from 22.5%) while Luapula Province remained the same at 12.9%

Of the overall 14.7 percent annual inflation, Lusaka province contributed the highest at 4.1 percentage points followed by Copperbelt which contributed 3.1 percentage points. Central and Southern Provinces contributed 1.9 and 1.7 percentage points respectively while Northwestern province had the lowest contribution of 0.4 percentage points

Meanwhile, the overall monthly inflation for May 2024 was recorded at 1.4 percent from 1.0 percent recorded in the previous month. This outturn was mainly attributed to price movements in selected food and non-food items.

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Zambia is currently facing a major economic

Tech

 

Amidst a severe drought in
Zambia, the demand for boreholes has surged, offering opportunities for
businesses while presenting challenges for water solution providers.

Speaking in an exclusive
interview with Zambian Business Times (ZBT), Dalitso Sakala, the CEO of
Dalimable Water Solutions, highlighted the increasing requests for boreholes,
especially from farmers grappling with the impact of the drought.

Sakala noted that while the
business is booming, there are challenges related to the dwindling water supply
and the prevalence of dry boreholes in some areas due to erratic rainy seasons.

He also raised concerns about
the accuracy of certain groundwater detection machines, emphasizing the need
for more reliable technology to avoid wasted time and resources.

Sakala pointed out that despite
these challenges, the demand for boreholes remains high, with prices varying
based on location and fuel costs. “Currently, the cost for a 50-meter borehole
stands at K19,000 Kwacha, up from K14,000 Kwacha last year due to rising fuel
prices and increasing demand.”

He said on average, the Company
now serves around 30 to 60 clients per month, translating to two or three
boreholes drilled per day during peak periods. “However, the completion time
for each borehole varies depending on the geological conditions, with some
taking as little as 3 to 4 hours and others requiring days or even a week to
finish.”

The situation underscores the
critical role of water solution providers in addressing the pressing water
needs brought about by the drought, while also highlighting the need for
improved technology and sustainable pricing models to ensure reliable access to
groundwater across Zambia.

“The machines that we
receive in Zambia some cannot give a 100% accurate indication of groundwater
and sometimes they detect moisture on the ground, which has resulted in waste
of time working on an area where there is no water”.

“In a month we get about
30 clients on a bad month but on a good month almost 60 clients, that means
it’s two or three boreholes in a day”.

“Finishing up one borehole
depends of the situation on the of area because some are stone and others are
just okay resulting in some been done in 3 or 4 hours while others can take the
whole day or week working on one borehole.” He said.

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  Amidst a severe drought inZambia, the demand

Companies

The Zambia Industrial Commercial Bank (ZICB) has signed a Memorandum of Understanding (MOU) with the Zambia Army to provide affordable financial services to Zambia Army staff.

According to a statement issued by ZICB Corporate Affairs Manager Luke Njovu, the MOU enables The Zambia Army personnel to access personal loans, business loans, and other banking products at competitive rates with flexible terms.

Speaking during the signing ceremony at Army Headquarters, ZICB Head of Public Sector, Winnie Chitondo, expressed ZICB’s commitment to supporting the financial needs of The Zambia Army staff. She assured The Army of the bank’s full support in meeting their financial requirements.

“As ZICB, we are dedicated to providing comprehensive support to The Zambia Army and its personnel. We will refinance existing loans from other firms, restructure them, and offer affordable loans along with other supportive products,” Chitondo stated.

“We will also assign a team to provide financial literacy training and educate The Army staff on available investment opportunities in the Zambian market, aiding them in growing their businesses,” she added.

The Zambia Army commander’s representative Brigadier General Nathan Chiselwa expressed gratitude to the bank for its commitment to financial inclusion and urged the bank to explore further partnership opportunities.

“We, as the Zambia Army, are pleased because this MOU will enable our staff to access affordable financial packages. This will empower our personnel to achieve more and ease their financial burdens,” the representative said.

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The Zambia Industrial Commercial Bank (ZICB) has

Companies

Segun Ogunsanya, the outgoing Chief Executive Officer – CEO of Airtel Africa, has been named winner of the prestigious Lifetime Achievement Award in the 14th African Business Leadership Awards (ABLA) 2024.

The awards are a flagship annual recognition event run by Africa Leadership Magazine (ALM), aimed at honoring exceptional corporate practice and outstanding achievers in Africa’s business landscape and private sector. The awards showcase Africa’s businesses and leaders, celebrating exemplary business leadership on the continent.

According to a statement made available to the Zambian Business Times – ZBT, by Airtel Zambia, Head Corporate Communication, Yuyo Nachali-Kambikambi, Ogunsanya will be presented with his Lifetime Achievement Award at a special ceremony during the 9th ALM Africa Summit, taking place from 17-18 July 2024 at the UK House of Lords. The theme of this year’s Summit is ‘Africa Unleashed: Navigating Disruptions, Enhancing Opportunities’, with policymakers, private sector leaders, civil society leaders, thought leaders, and stakeholders from across Africa and the rest of the world expected to attend.

Ogunsanya’s landmark contributions towards advancing Africa’s socio-economic growth and development include his 12-year career at Airtel Africa. He ran the Nigeria operations of the telecommunications and mobile money company for nine years before his appointment as CEO of the Group in 2021. With deep knowledge of the continent, coupled with extensive distribution experience, he led the company in maintaining double-digit revenue growth over many quarters and in delivering new, innovative products to its customers across Africa.

Segun has more than 35 years of business management experience in banking, consumer goods, and telecoms. Before joining Airtel Africa in 2012, he held leadership roles at Coca-Cola Bottling operations in Ghana, Nigeria, and Kenya (as MD and CEO). Segun has also been the Managing Director of Nigerian Bottling Company Ltd (CocaCola Hellenic owned) and Group head of retail banking operations at Ecobank Transnational Inc, covering 28 countries in Africa. He is an electronics engineer and a chartered accountant.

Segun Ogunsanya, CEO of Airtel Africa, said: “I am truly humbled by this recognition alongside such other distinguished Africans. It truly belongs to all those who have been on the journey with me at various times. My career has been focused on serving the needs of people across the continent, most recently through enhanced digital and financial inclusion. I remain determined to help make Africa a better place for its people, and hope my journey inspires the next generation of Africa’s business leaders.”

Ogunsanya will retire from Airtel Africa on 1 July 2024, and will become the Airtel Africa Charitable Foundation’s inaugural Chair, building on the work undertaken during his time as CEO, including the launch of the Company’s first sustainability strategy. Dr. Ken Giami, Chairman of the African Leadership Organisation and Publisher of the African Leadership Magazine, said: “Our award winners exemplify the spirit of innovation, resilience and excellence driving growth and development across the continent.”

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Segun Ogunsanya, the outgoing Chief Executive Officer