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Agribusiness

Chilubi Member of Parliament has attributed the hike in Roller mealie meal prices in Chilubi of the Northern Province of Zambia to lack of a local producers/supplier within Chilubi island making available suppliers to transport it through the lake using passenger boats as they do not have cargo boards that they could use to transport mealie meal.

Speaking in an exclusive interview, Chilubi Member of Parliament, Mulenga Fube, highlighted the surge in roller mealie meal prices of about K400 in Chilubi Island, attributing it to the absence of local suppliers and the high cost of transporting the commodity to the island.

Fube emphasized that the lack of a local producer in Chilubi has led to a heavy reliance on private business entities transporting mealie meals from distant locations such as Lusaka and the Copperbelt.

Fube expressed concerns about the difficulties faced by the people of Chilubi in accessing mealie meal, pointing out the absence of ZNS mealie meal in the area.

He urged the government to intervene swiftly to ensure that the residents of Chilubi have sufficient access to mealie meals and are properly catered for.

“The hike in these prices of mealie meal is because one, we do not have a local producer here in Chilubi as the local producer we had, it became very difficult for them to do business because of the high cost of transportation as well as just getting of raw materials like Maize was difficult causing the business not to survive and be sustained. Although the machinery is still there” He alluded.

Fube further alluded that people of Chilubi are only able to access mealie meals through private business entities who are getting it from as far as Lusaka and the Copperbelt bringing it to Chilubi as it is rare for them to get it from places like Samfya, Mansa, Kasama and Luwingu.

“There is no ZNS mealie meal here in Chilubi, no one is supplying ZNS mealie meal in Chilubi a thing I have also spoken with the ministry of defense,” He added.

Meanwhile, Fube has called on the Government to quickly come on board so that people of Chilubi can be able to access enough mealie meals and be catered for properly.

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Chilubi Member of Parliament has attributed the

Companies

The First National Bank (FNB) Zambia Ltd has unveiled its first fully Solar powered Branch in Kalumbila District of North-Western Province.

FNB Zambia modernised and upgraded its Kalumbila Branch as part of the Bank’s commitment to continuously improve service to its customers and the communities.

The refurbished branch in Kalumbila whose major economic activity is mining considering the fact that the district has got two giant mines, Lumwana and Kalumbila Mine, is the first Solar powered Branch within the FNB Zambia branch network.

Speaking at the launch, Minister of Green Economy and Environment Mike Elton Mposha, who was Guest of Honor, noted that the initiative marked a significant step towards Government and the private sector’s collective efforts in promoting sustainability.

“I commend FNB Zambia for their commitment to environmental stewardship and for setting a commendable example in the banking sector” remarked the Minister.

He further explained that the decision to power the branch with solar energy underscores the importance of transitioning to renewable energy sources, as solar power reduces the country’s carbon footprint and contributes to mitigating climate change, aligning with our national goals of preserving the environment and promoting sustainableenergypractices.

Speaking at the same event, FNB Zambia Chief Executive, Kapumpe Chola, in a speech read on her behalf by FNB Zambia Head of Retail Banking, Mwamba Musambo, stated that, the Bank’s aim is to ensure that the people of Kalumbila have access to modern banking facilities as the district remains akey contributor to the country’s economy.

“With the newly refurbished solar powered branch here in Kalumbila, we will continue to provide our services and products to the district in a more sustainable and environmentally friendly way,” said Ms Chola.

She further stated that fully equipping the Kalumbila branch to run on solar power marked the start of the Bank’s initiative to equip all its other branches with renewable energy sources, also enabling the branches to have backups for sustaining operations during grid outages or emergencies.

“We remain steadfast in delivering superior service across all our touch points through the modernization of our branches nationwide in line with our brand promise of providing platforms that are Helpful, Easy, andSafe,” added Chola.

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The First National Bank (FNB) Zambia Ltd

Tech

HH awards 20% salary increment to CJ Malila

In a move that has generated public attention and questions from some civil servants, President Hakainde Hichilema – HH has awarded a 20% salary increment to the Chief Justice Mumba Malila.

This is in comparison to the about 7 to 10% (K550 across the board) salary increments awarded to most government employees and civil servants for 2024.

The recent statutory instrument, number 34 of 2024, revealed that President Hichilema has elevated the Basic Salary per annum for Chief Justice Mumba Malila to over K511,500.

This marks a significant increase of about 20% from the Chief Justice’s previous Basic Salary per annum of K431,131 as of June 2023, as indicated in an earlier statutory instrument number 17 of 2023.

According to statutory instrument number 34 of 2024 seen by the Zambian Business Times – ZBT, President Hichilema raised the Basic Salary per annum for Chief Justice Mumba Malila to over K511,500.

According to the statutory instrument number 17 of 2023 seen by the Zambian Business Times – ZBT, the Chief Justice’s Basic Salary per annum was K431,131 as of June 2023.

This move comes at a critical time of austerity for the nation as it grapples with the adverse effects of the prevailing drought conditions and some policy pitfalls.

President Hakainde Hichilema has also signed off and awarded salary increments to the Deputy Chief Justice, the President of the Constitutional Court, the Constitutional Court judges, the Supreme Court judges, the Court of Appeal Judges, and the High Court Judges among many others.

The decision to boost the Chief Justice’s salary amidst this challenging period has raised concerns as the country is grappling to find solutions and resources to deal with the current power crisis and generally tough economic conditions for the majority.

Critics argue that President Hichilema and his administration focus should be on addressing the pressing issues brought about by the drought, such as food insecurity and agricultural support.

They underscore the importance of prioritizing resources to alleviate the impact of the drought on the population and ensure the country’s resilience in the face of such challenges.

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HH awards 20% salary increment to CJ

Companies

Zambia Railways Limited (ZRL) Public Relations Manager Sombe Ng’onga says ZRL is undergoing a transformational phase aimed at revitalizing its operations and increasing its capacity through strategic business planning and private partnerships.

The company’s Public Relations Manager, Sombe Ng’onga said the Company is working on a new Strategic Business Plan (SBP) from 2024 to 2028 to address immediate infrastructure needs and improve its overall performance.

Ng’onga said that ZRL is focusing on repairing wagons, addressing Temporal Speed Restrictions (TSRs), and acquiring new rolling stock as part of its efforts to enhance its operations.

He added that the company is leveraging annual railway improvement projects and intensifying engagements with strategic partners and private railway companies to optimize its capacity and efficiency.

According to Zamstats report, the value of goods by various modes of transport, the railway sector is seen as the least developed mode of transport.

“Road transport recorded the highest at K42.3 billion, Air transport was the second at K4.7 billion while Rail transport was last at K0.2 billion” With rail trailing behind Road and Air transport the bigger question is why is this sector with so much potential to contribute highly to the transport and economic sectors of the Country lagging behind.

Responding to a query by the Zambian Business Times (ZBT) Ng’onga admitted that the Company has been facing challenges owing to the poor and old infrastructure.

“We have just developed the new Strategic Business Plan (SBP) to run from 2024 to 2028, ZRL has identified areas of investment starting with immediate term needs, attending to Temporal Speed Restrictions (TSRs), repairing existing locomotives, repairing wagons to convert them to air brakes and acquire some rolling stock, as a stop measure before recapitalization ZRL is leveraging annual railway improvement project that began in 2022, under the Ministry of Transport and Logistics, we have also intensified the engagement of strategic partners such as clients and private railway Companies among others to leverage private sector capacity in terms of rolling stock,” she said.

Ng’onga echoed that through engagements with strategic partners, the Company is implementing private train operations and encouraging its customers to invest in their own equipment or equipment owned by the Company.

She said the recapitalization model has seen the Government currently engaging prospective strategic partners as well as multilateral development institutions to ensure that Rail Transport regains its place as a reliable and efficient mode of transport.

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Zambia Railways Limited (ZRL) Public Relations Manager

Agribusiness

Government has suspended customs and excise duty on the importation of wheat affective 1st April 2024 until 30 August 2024. Wheat and bread product prices have been on a steep rise with the Bakeries Association of Zambia calling for action from authorities to arrest the trend.

According to a statutory instrument – SI signed by Finance Minister Dr. Situmbeko Musokotwane and made available to the Zambian Business Times – ZBT, a total of 21 companies have been allocated specified quantities and will require an import permit to bring in the wheat. The 21 companies have been allocated a total of 100,000 tons to import within the five months period.

Pemba flour mills received the lions share of the allocation to import 15,000 tons, followed by National Million corporation – a seaboard subsidiary which has been allocated an import quota of 13,950 tons. The third highest allocation was granted to Royal milling for the import of 13,900 tons

Other notable companies that received bigger shares of the 100,000 import quotas and suspended import duties were Queen millers with 7,950 tons, while Nyimba Milling and Africa Milling were granted 7,500 apiece.

Zambia has the necessary soils, water bodies and a reasonable winter period that can deliver a number harvest for wheat. However, challenges about especially for local farmers in terms of lack of affordable financing to grow the number and hectarage under wheat cultivation. Moreover, the recorded drought in the 2023/2024 agro season has also affected the water levels available for winter wheat cropping.

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Government has suspended customs and excise duty

Tech

The continued depreciation of the Zambian Kwacha against major convertible currencies, particularly the United States Dollar (USD), has led to a significant negativr impact on the prices of imported goods, specifically motor vehicles.

Car Dealers Association of Zambia has highlighted the direct correlation between the depreciation of the Kwacha and the substantial increment in car prices within the country.

According to the ZamStats report, the price of 1 motor Vehicle (Toyota Hilux) was about K1 million Kwacha in May 2023 and has now increased to over K1.8 million as of May 2024 representing about a 73 percent increase on an annual basis.

Speaking in an exclusive interview with Zambian Business Times (ZBT), Pepba Zulu, a spokesperson for the Car Dealers Association of tomotive industry pose substantial challenges for both consumers and businesses alike.

Zulu, emphasized that the escalat. prices of cars are largely attributed to the soaring dollar prices in the country. According to reports, the Zambian Kwacha has depreciated by 17.5 percent against the US dollar, reaching an average of K25 as of June 2024.

Zulu explained that previously when the dollar was trading at around 16 to 17 kwacha, the prices of cars were more affordable adding that with the current high selling price of the dollar, the cost of cars in the market has been significantly affected.

Zulu underscored the importance of a reduced dollar value, suggesting that a decrease in the dollar price could lead to a decrease in not only car prices but also fuel prices, as numerous commodities are intricately linked to the dollar price.

The implications of the Kwacha depreciation on the au“In the past, when the dollar was selling around 16 to 17 kwacha, the price of cars was at a cheaper price, now with the high selling price of the dollar has affected the price of cars on the market,” he said.

“As the association we are hoping going forward that the dollar will come down conceding the debt restructuring if things stabilize as a nation then the prices may start reducing,” he added.

“We are hoping that the government will do something in line with the dollar because once the dollar goes down even the fuel prices will also come down because everything falls on the dollar”.

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The continued depreciation of the Zambian Kwacha

Uncategorized

PUMA Energy Zambia PLC a subsidiary of Puma Energy (Ireland) Holdings Limited has reported about K255 million profit after tax for the year ended 31st December, 2023.

This outcome has been attributed to a 12% increase in volumes and a general uptick in selling prices, driven by the rise in oil prices.

According to the audited financial results for the year ended 31 December 2023, seen by the Zambian Business Times – ZBT, the Company recorded a profit after tax of K254.79 million for the year under review compared to K231.51 million recorded in the prior year.

The company achieved a profit before finance costs, taxation, and exchange gains of K233.66 million, representing a notable improvement from the previous year.

The pre-tax profit stood at K357.65 million, showcasing a positive trend compared to the previous year’s figure of K325.90 million.

The company credited the operational foreign exchange gains recorded during the year for this improvement.

“Profit before finance costs, taxation, and exchange gains of K233.66 million was achieved for the year ended 31 December 2023 compared to K281.36 million for the previous year, while the pre-tax profit was K357.65 million compared to K325.90 million the previous year. The improvement in pre-tax profit is attributable to the operational foreign exchange gains recorded during the year.”

However, despite the strong financial performance, the board has chosen not to recommend a dividend for the year under review.

The petroleum products market in Zambia is expected to see a rise in demand, with rising demand projected in sectors like mining, power generation, and manufacturing amid the drought which has hugely affected the energy sector.

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PUMA Energy Zambia PLC a subsidiary of

Mining

Metals Fabricators of Zambia PLC, known as ZAMEFA, has seen a remarkable 36% increase in revenue, reaching about K1 billion compared to the previous year’s ZMW 1,000 million with the current operating profit for the six-month period ended 31 March 2024, increasing to K83 million from K37 million in the previous year.

The Ultimate parent company for ZAMEFA is Reunert LIMITED, a company incorporated in South Africa. ZAMEFA was incorporated in 1968 and was privatized in 1996.

According to the Company financials seen by the Zambian Business Times and signed by the Company Secretary, the depreciation of the Zambian Kwacha has substantially contributed to the surge in revenue during the period under review.  

The company’s substantial revenue growth has ignited a currency controversy due to the significant portion of revenue being generated in United States Dollars (USD), leading to a heated debate about the impact of Zambian Kwacha depreciation against the USD.

“Revenue increased by 36% to ZMW 1,396 million compared to the comparative period in the prior year (2023: ZMW 1,028 million). As most of the Company’s revenue was generated in United States Dollars (“USD”), the depreciation of the Zambian Kwacha against the USD contributed to higher revenue in the period under review.”

“Additionally, higher sales volumes also contributed to the increased revenue. The operating profit for the current period increased to ZMW 83 million (2023: ZMW 37 million) due to the improved gross profit margins resulting from a more favorable sales mix, the effect of the depreciation of the Zambian Kwacha against the USD, and higher volumes sold compared to the comparative period in the prior year.”

“The Company managed to reduce its net foreign liability position which mitigated the foreign exchange loss for the period to ZMW 24,1 million (2023: ZMW 52,9 million).

Finance costs of ZMW 20,1 million (2023: ZMW 14,6 million) were 38% higher than those of the comparative period in the prior year mainly due to the impact of the weakening of the Zambian Kwacha against the USD on the translation of the USD interest incurred on the company’s USD funding.”

Meanwhile, the Company’s cash position at the end of the first half of the current financial year ballooned to a net cash position of ZMW 167 million compared to ZMW 35 million in the prior period.

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Metals Fabricators of Zambia PLC, known as

Markets

The Value Added Tax – VAT refunds to the mining and quarrying sector reached almost K1.2 billion (about US$45 million) for the month of April 2024, a situation that resulted into about 70% of the tax revenue collected from the sector through mining company income tax and mineral royalty being claimed back by the mining firms.

According to the Zambia Revenue Authority – ZRA report seen by the Zambian Business Times – ZBT, the mining and quarrying sector were refunded a total of K1.2 billion, accounting for almost 90% of all the refunds made to all sectors in Zambia.

The Zambian government has been accused of over standing its hand in giving mining incentives that has seen mineral royalty tax being allowed for tax deduction on overall income tax due. This is further to the above incentive that allows mining firms to claim VAT refund for all goods and services.

But the Chamber of mines, a body that represents key mining firms in Zambia has argued that the incentives to the mining industry are needed to attract more investments into the sector as well as make Zambia more attractive and competitive as a mining investment destination. Copper production in the last two years has slumped, the the coming back on stream of Mopani is expected to boost production by about 250,000 tons per annum at peak production levels.

The challenge for the country however remains with its over-dependance on Copper mining. With copper export accounting for over 70% of total exports for Zambia, there is more pressure on the government to negotiate and collect more from the sector to raise funds to then apply in diversifying the economy and well as ensure the proceeds are remitted back into the country to help stabilise the local currency – the Kwacha which has been on a perpetual depreciation streak.

A further review by ZBT showed that for the month of April 2024, ZRA collected about K1 billion from mining company tax and a further K790 million from mineral royalties, with the total April collections hitting about K1.8 billion (about US$70 million). ZRA then paid out a total of K1.2 billion, leaving the effective net collections from the mining sector at only K600 million (about US$23 million).

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The Value Added Tax - VAT refunds

Companies

Chilanga Cement Plc has officially launched the Ndola Kiln Upgrade Project, marking a significant advancement in the capacity and sustainability of the Ndola cement plant.

Speaking during the launch, Copperbelt Minister Elisha Matambo highlighted the significance of the project for the construction industry and the broader economy of the Copperbelt Province.

“This significant initiative by Chilanga Cement Plc marks a pivotal moment for our economy. By fostering a business-friendly climate, we ensure companies like Chilanga Cement can flourish, driving development, job creation, and sustainable growth. The Ndola Kiln Upgrade Project, with its $20 million investment, exemplifies the fruitful partnership between the public sector and private enterprises,” said  Matambo.

The inauguration ceremony, held at the Chilanga Cement Plant in Ndola, was attended by distinguished guests, including Senior Chief Chiwala, the Copperbelt Permanent Secretary, Mr. Augustine Kasongo, representing the Hon. Elisha Matambo, Copperbelt Provincial Minister, Muna Hantuba, Chairman of the Chilanga Cement Board, and Jianping Chai, CEO of Chilanga Cement.

Meanwhile, Chilanga Cement Board Chairman, Muna Hantuba elaborated on the project’s scope and vision. Dubbed the “Phoenix Project,” the upgrade symbolizes the rebirth and modernization of the Ndola plant.

“Since its opening in 1969, this is the first major investment in the plant. The $20 million upgrade, supported by the Huaxin Group, will significantly improve efficiency, production capacity, and environmental conditions, and upon completion, the upgrade will enhance the Ndola plant’s capacity to 1 million tonnes of high-quality cement per year,” Hantuba stated.

The CEO of Chilanga Cement, Jianping Chai, emphasized the company’s commitment to the region’s economic development. “This project is a pivotal step forward for Chilanga Cement and a testament to Huaxin Group’s commitment to investing in Zambia. Our investments will support the construction industry, create jobs, and drive regional growth,” said Chai.

The project, set to be completed in eight months, will enhance the utilization of alternative energy resources and elevate product quality, ensuring Chilanga Cement continues to provide superior services to its customers.

The initiative reaffirms Huaxin Group’s ambition and commitment to economic development in Africa, particularly in Zambia.

The launch event concluded with a call to prioritize safety and a commitment to completing the project without any injuries.

This is according to a statement made available to the Zambian Business Times ZBT by Gift Danga, Chilanga Cement Corporate Affairs and Communications Manager

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Chilanga Cement Plc has officially launched the