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Tech

Energy expert engineer Bornface Zulu has charged that the Country which is currently grappling with the effects of the 8 hours power cut due to low rainfall and the droughts is likely to see an increased hours of load shedding to over 10 hours per day.

Engineer Zulu explained that if the droughts and the high weather temperatures currently being experienced in most parts of the Country continues in months to come, load shedding hours might go up by 2 hours to 10 hours per day.

On 11th March , 2024, Zesco Limited announced the 8 Hours of daily Load Shedding and attributed the move to The 700 Megawatts Deficit, due to the impact of the El Nino.

Commenting on the matter in an exclusive interview with the Zambian Business Times -ZBT, Energy expert engineer Bornface Zulu said that looking at the current prevailing weather conditions being experienced in the country, the load shedding hours might be increased further due water levels that might also drop further.

Zulu said that Ordinary Zambians need to prepare themselves with what is coming ahead of them by finding other alternative sources of energy such as solar energy.

He noted that there is an urgent need for the Government to formulate favorable policies that will attract foreign investors to invest in alternative sources of energy to develop the energy sector and reduce demand on the national grid.

He further noted that the energy sector will continue being underdeveloped if proper policies are not formulated to attract both local and foreign investors to invest in the energy sector.

He therefore emphasized on the need for cost reflective energy tariffs to attract more investment in the energy sector.

“Once we experience dryness it means that we are going to experience an increase in evaporation as well as a reduced inflow of rainfall that will also translate to the generation capacity of electricity meaning that the load shedding hours might increase to about 2 hours. It’s not a correct prediction but looking at the current situation we are in we might see an increase in load shedding hours. Ordinary Zambians need to brace themselves with what is coming ahead of them because they have been too dependent on the national grid. They need to prepare themselves for other alternative sources such as solar to run their normal day to day lives because the national grid has a heavy demand on it that in some cases they will not be able to provide adequate energy for everyone,” he said.

“We have unattractive policies that have deterred foreign investors as well as local investors to invest in Zambia’s energy sector. We’ve seen the government sign memorandum of understandings (MOU’s) but an MOU doesn’t mean that you have signed the actual contract. So we’ve seen government sign different MOU’s with different companies but most companies or investors are failing to invest in Zambia due to the unattractive policies as well as the non cost reflective tariffs in the electric energy sector.”

“If we don’t have cost reflective tariffs prices, investors will not come and there will be nothing that will be done in the energy sector and demand will still be increasing. So cost reflective tariffs is what will attract foreign investors to invest in the energy sector. Most investors are running away when they look at low tariffs. Most investors want to gain their return on investment in the shortest period possible. Government also needs to come up with favorable policies that will attract foreign investors to invest in alternative sources of energy,” said Zulu.

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Energy expert engineer Bornface Zulu has charged

Agribusiness

Commercial wheat farmer David Samutela has warned that the country’s wheat production will be reduced by 50% in the 2023/2024 farming season due to drought and load shedding.

Speaking exclusively to the Zambian Business Times, Samutela said that the lack of water, caused by the drought, will result in most farmers producing half a crop this farming season.

This is because most wheat farmers do not have water for irrigation as most of the dams do not have enough water.

He said additionally, load shedding will also affect the production of wheat even further.

Samutela said if the government does not assist farmers amid load shedding, the country’s wheat production will suffer a double tragedy from the drought and load shedding.

According to the Ministry of agriculture, Zambia’s wheat production is currently standing at 277,491 metric tons as of 2022/ 2023 farming season.

He noted that the onset of load shedding will also affect the production of wheat even further.

He further implored the government through ZESCO to help farmers by supplying them with power needed for irrigation to reduce on the negative impact already caused by the drought.

He therefore warned that if the government through ZESCO does not assist farmers amid load shedding, the Country’s wheat production will suffer a double tragedy from the drought and load shedding.

“I’m not sure about the figures but most farmers will produce half a crop. The production of the crop will be about 50% for this year because of the lack of water as a result of the drought. Most farms do not have the water because the dams for most farms are not full,” he said.

“This is the beginning of the wheat season. This is when farmers are preparing to plant the crop and load shedding is still on. Load shedding has an effect on wheat farming because as farmers we need to irrigate all the time so load shedding will definitely have a very big effect on wheat farming.”

“The president promised that government would work out something to ensure that ZESCO gives us some power. So we are hoping that ZESCO works out something for us or else we will have a double tragedy because we’ve had drought and now we have this serious situation of electricity that will definitely affect our production. So ZESCO should supply power to the farmers as they have already reduced their production by 50%,” said Samutela.

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Commercial wheat farmer David Samutela has warned

Companies

The Zambia Forestry and Forest Industries Corporation ZAFFICO says despite a challenging operating environment in 2023, the corporation managed to perform positively.

According to a statement signed by Mulawo Mwaba Company Secretary, and seen by the Zambian Business Times – ZBT, the Company remained focused on capital investment to achieve operational efficiencies and financial profitability, while also ensuring sustainability.

ZAFFICO faced challenges such as low demand for treated poles from key customers and escalating input costs due to adverse economic conditions. However, the upward price adjustment for Roundwood, coupled with the elevated demand and introduction of a competitive and fair-trading process for selling Roundwood, contributed significantly to the company’s performance.

“Our strong balance sheet and healthy cash generation capabilities allowed us to navigate through the cyclical downturns in the timber industry with flexibility.”

“However, we faced challenges such as low demand for treated poles from key customers and escalating input costs due to adverse economic conditions. Despite these challenges, the upward price adjustment for Roundwood, coupled with the elevated demand and introduction of a competitive and fair-trading process for selling Roundwood, contributed significantly to our performance.”

In terms of financial results, the corporation’s gross profit for the year was ZMW ZMW287 million, representing a slight decrease of 0.3% compared to ZMW ZMW288 million in the prior year.

The gross profit margin for 2023 was 68%, compared to 75% in the prior period, mainly due to the increase in production costs resulting from the depreciation of the kwacha against major currencies. Our net profit for 2023 was ZMW 1.2 billion, reflecting a reduction of 55% compared to the previous year. This reduction was mainly attributed to the stabilization of the value of biological assets.

“Despite the reduction in profitability, our ability to generate sustainable returns for our shareholders remains the primary focus. We generated total revenue of ZMW ZMW423 million from the sale of Roundwood and treated poles, representing a 10% increase compared to ZMW ZMW386 million in 2022. The positive performance was largely driven by the unprecedented increase in demand for eucalyptus saw logs.”

“Our operating expenditure for the year under review was ZMW ZMW411 million, representing a 1.5% increase compared to ZMW ZMW 405 million in 2022. The increase in costs was largely due to adverse microeconomic conditions, such as volatility in fuel price adjustments.”

“Our total non-current assets increased to ZMW 7,423 million as of 31st December 2023, compared to ZMW 5,920 million in 2022, representing a growth of 25%. The increase was mainly attributed to the gain in value of biological assets and our land and buildings following revaluation.”

“Similarly, our shareholders’ funds increased to ZMW 6,746 million as of 31st December 2023 from ZMW 5,5442 million in 2022, mainly attributed to the revaluation of biological assets and the gain in the value of our land and buildings.”

In 2023, we continued to generate healthy cash flows, providing us with financial flexibility to invest in growth opportunities. Our strong cash flow position underscored the resilience of our business model and our ability to weather economic uncertainties.

ZAFFICO plans to prioritize plantation expansion, value addition, mechanization and automation, while also optimizing cost structures by implementing Information Communications Technology (ICT) projects and modernizing forestry operations.

“Looking ahead, we will continue to implement measures that will deliver long-term operational excellence, efficiency, financial and business sustainability in line with our 2024-2028 strategic plan. The forest inventory results of 2023 have provided a baseline that calls for an offset in the trajectory of future harvest, mandating us to focus on broadening the business by investing in value-addition initiatives. We will prioritize plantation expansion, value addition, mechanization and automation, while also optimizing cost structures by implementing Information Communications Technology (ICT) projects and modernizing our forestry operations.”

Meanwhile, The Board of Directors has resolved not to declare a dividend for the financial year ended 31 December 2023 in order to reinvest earnings into planned growth initiatives. This decision is aimed at achieving the Corporation’s long-term strategic objectives of delivering sustainable returns to shareholders.

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The Zambia Forestry and Forest Industries Corporation

Markets

The Bank of Zambia (BOZ) has expressed it’s commitment to promoting inclusive and sustainable Development in Zambia through the the launch of the 2024 to 2027 strategic plan.

Speaking during the Launch of the 2024 to 2027 strategic plan themed “promoting inclusive and sustainable Development in a Digitalized world,” attended by the Zambian Business Times -ZBT, Bank of Zambia Governor Dr. Denny Kalyalya said that the focus areas of the strategic plan are on price stability, financial stability, financial inclusion and organisational resilience and growth.

Dr. Kalyalya said that the focus areas will be directed at addressing key challenges and opportunities in the financial operating environment.

He said that the strategic plan will also give guidance to the bank on sustainable stable prices, financial system, financial inclusion and organisational resilience and growth.

He noted it is anticipated that by the end of the plan period, substantial accomplishments will be made in extending financial services to the unbanked and underbanked sectors.

“iam pleased to launch the Bank of Zambia strategic plan for the period 2024-2027. This plan has four focus areas, price stability, financial stability, financial inclusion, organizational resilience and growth. These focus areas are directed at addressing key challenges and opportunities in the operating environment,” he said.

“As the economy is recovering from the adverse effects of COVID-19, new challenges such as the effects of climate change, cyber risks, ongoing geopolitical tensions and debt overhang have emerged. These challenges pose threats to the financial sector and sustained economic growth.”

” The bank has developed a strategic plan that will guide it towards sustainable stable prices, financial system as well as enhanced financial inclusion. The strategic plan also sets sets clear targets to foster internal organisational resilience and growth,” said Dr. Kalyalya.

Dr. Kalyalya revealed that that the Bank of Zambia will leverage information and communication technologies to achieve the goals outlined in the strategic plan.

He noted that the 2024 to 2027 strategic plan was formulated after wide consultations with internal and external stakeholders.

He therefore thanked everyone who made contributions to the successful development of the strategic plan.

“This plan underscores our commitment to serving the people of Zambia through delivering on our mandate. It has been formulated after wide consultations with internal and external stakeholders. Finally, I would like to thank everyone who contributed to the successful development of this strategic plan. Together let us build a resilient, inclusive and prosperous Zambia,” said Dr. Kalyalya.

Meanwhile Ministry of Finance and National planning Dr Situmbeko Musokotwane commended the Bank of Zambia Governor and his team for wide consultations with internal and external stakeholders.

Speaking during the Launch, Musokotwane said, the new strategic plan will guide and focus its activities for the period 2024 t0 2027.

this is the 6th plan since the bank of zambian formalized the strategic planning in 2003, the importance of a strategic plan can not be over emphasized.

“I therefore commend the Bank of Zambia for incorporating environmental, social and Governance issues in the 2024 – 2027 strategic plan.” said Musokotwane.

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The Bank of Zambia (BOZ) has expressed

Tech

Liquid Intelligent Technologies (Liquid), a business of Cassava Technologies, a leading pan-African technology group has launched an innovative public Wi-Fi service in Zambia, aimed at providing cost-effective, high-speed Wi-Fi access.

With the launch in Livingstone, Zambia’s tourism capital, Liquid aims to cater in particular to the needs of users looking for convenient and flexible connectivity in multiple locations, such as the country’s youth, travellers visiting the region, and local small and medium-sized enterprises. This most recent rollout extends Liquid’s existing Wi-Fi services in Zambia, which have been successfully offered to the country’s financial institutions for several years.

“By establishing a public Wi-Fi network, Liquid is ensuring that the people of Zambia have reliable access to the internet, regardless of their location or economic status,” said Mark Townsend, CEO of Liquid Zambia. “This initiative is one of the ways in which we’re helping to bridge the digital divide and empower small businesses and individuals to thrive in the global digital economy, and simultaneously contribute to Zambia’s economic growth.”

With 4.3 million internet users in Zambia, representing an internet penetration rate of just over 21 percent, Liquid’s public Wi-Fi access has the potential to provide significant benefits for users in the country. This includes easy and convenient Internet accessibility without the need for a data plan, the productivity that comes from being able to work remotely from any location, and access to online information and entertainment. Tourists have the ability to stay connected, and local businesses, entrepreneurs, and startups benefit from the resulting ecommerce opportunities.

Zambia’s Minister of Tourism, Hon. Rodney Sikumba, and Her Worship the Mayor of Livingstone, Ms. Constance Muleabai, attended the 23rd of April 2024 launch event, reflecting both the value attached by the government to such initiatives, and the importance of public-private partnerships in providing digital solutions.

The expansion will provide Wi-Fi access in public areas such as education institutions, hospitality venues, hospitals, municipal council areas, bus stops, local government offices, retail, and shopping malls, and more, catering to a wide range of industries and users. In terms of data security, an additional key feature is various layers of security that protect users from online cyber threats.

This exciting public Wi-Fi rollout and associated benefits, both social and economic, reflects Liquid Zambia’s commitment to providing futuristic and forward-thinking solutions that enhance connectivity and drive digital transformation across the continent. It also firmly aligns with the company’s goal of ensuring that no African is left behind in Africa’s ongoing digital transformation.

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Liquid Intelligent Technologies (Liquid), a business of

Mining

The Zambian government has been challenged to provide a comprehensive update regarding the Konkola Copper Mines (KCM) status and when the mine will get into full production after it was last year handed over to Vedanta Resources Limited.

Speaking in an exclusive interview with the Zambian Business Times – ZBT, Economist Yusuf Dodia said noted that the lack of information from both the government and the investor has led to speculation among the public, which can be detrimental to the nation’s investment prospects.

In September 2023, the government handed over the ownership of Konkola Copper Mines -KCM- to Vedanta Resources with expectations that Vedanta would commence operations before the end of 2023. KCM runs Nampundwe Mine in Shibuyunji District, Konkola Mine in Chililabombwe, Nchanga Mine in Chingola and Nkana Smelter in Kitwe. 

Dodia said, “We have seen reports that Vedanta has been in financial crisis for 2 – 3 years in terms of the money they owe abroad and the question is where are they going to get the money to invest in KCM if they are having financial challenges abroad.”

Dodia emphasized that it’s crucial for the government to provide regular updates on the situation, to ensure that the public is informed based on facts, not speculation. He has also predicted that it may take one or two years, or possibly even until 2026 before any investment in the mining sector shows significant results.

“So we would like to see what is happening with KCM in that respect as there are reports showing that Vedanta is transferring its ownership in KCM but what we’re interested to see is do they have any capacity to invest in KCM so that the mine can be back on the productive and do they have enough money to pay off workers and creditors. So it is something that we need to get feedback from the government on.”

Dodia added that “I don’t think we are going to see a boost in copper production this year because I think it will take a much longer for any investment to show so I think one or two years or maybe not 2024 maybe don’t 2025 or 2026 but not on this year.”

He noted that investors that are coming to Zambia are pledging to put more money in but on the ground what they are putting in is much smaller than their pledges like is the case with Mopani’s new investor who pledged to invest $1.1 billion but on the ground they are putting in small amounts.

“I think including Mopani Copper mines we need to get updates from the government we’re not getting anything back from the mines themselves nor from the government so unfortunately when there is an information blackout it leaves the public to speculate so those people that are working on the copper belt who are seeing what is happening and are making their assessments for example they would say no nothing is happening that’s becomes the feedback I think it’s not a good idea to allow these kinds of investments to be informed to the public through speculation I think it’s important for the minister of mine to make some statements so that the public is updated on what is going on.”

“we are not likely to see any value coming from the two mines for the next 12 months because of the amount of investment that needs to be able to carry out the revamping of these mines.”

“So far we have not seen them showing that they have the resources as their pledging are not investment so when we see evidence that Vedanta is going to invest then we can be hopeful of them becoming productive.”

“my comment is that it’s always good to make public some of these activities that are going on when they are put in the public domain the nations when they are in the dark the public speculation leads to dissatisfaction amongst Zambian people so I would urge the authorities to do as many press briefings as necessary to keep the public informed on progress and what is going on so that the dialogue can be meaningful because it will be based on facts and not speculations.”

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The Zambian government has been challenged to

Uncategorized

The Zambia Institute of Chartered Accountants (ZICA) has expressed its dismay over the revelations contained in the Auditor General’s Report for the financial year ending December 2022 regarding the misuse of public funds amounting to over K300 million at the Ministry of Education.

ZICA President Yande S Mwenye said It is disheartening to note that 3,067 schools in Southern, North-western, Central, Muchinga, Northern, and Luapula provinces operated without accounting officers for the period under review and some dating back to 2018.

“The Institute wishes to state that in accordance with the Accountants Act No. 13 of 2008, section 18 (1) A person shall not, unless the person is registered as a Chartered Accountant under this Act- (a) practice as, be employed as, offer services as, or hold out to be, a Chartered Accountant.”

She said, “As ZICA, we are happy to note the statement issued by the Basic Education Teachers Union of Zambia (BETUZ)’s Public and International Director to the media, where he echoed the concern around misappropriation of funds due to the lack of recruitment of qualified Chartered Accountants.”

ZICA reiterated that the country cannot have huge resources of money being allocated by the Government treasury without qualified accountants to manage them. “Therefore, the recruitment of qualified accountants in secondary schools by the government is a pressing issue that can lead to significant challenges in financial management and oversight.”

She said this shortage may contribute to the mismanagement and potential abuse of public funds, undermining the integrity of educational institutions.

“It is clear that the involvement of qualified accountants will help in the strategic planning and financial decision-making processes, which are crucial for the long-term development of educational institutions, especially now that the government has rolled out the free education and the Constituency Development Fund (CDF).”

Mwenye said It is evident that the integration of skilled financial professionals into the educational framework will not only be beneficial but necessary for the advancement of the education sector in Zambia.

ZICA has called on the Zambian government to take urgent measures to address the shortage of qualified accountants in secondary schools to prevent the mismanagement and potential abuse of public funds and to restore the integrity of educational institutions.

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The Zambia Institute of Chartered Accountants (ZICA)

Agribusiness

The move by government to start importing maize from neighbouring Country has been questioned after it has been established that the same government exported 1.1 tons of maize last year.

According to officcial statistics seen by the Zambian Business Times -ZBT, government exported about 1.1 million tons of maize in the marketing year 2022/23 and have now announced their intentions to start importing 650,000 metric tonnes of Maize from foreign Countries aimed at responding to the effects of the drought.

Recently, Agriculture Minister Reuben Mtolo revealed that Government by the end of this month (April) will start the importation of 650,000 metric tonnes of Maize from South Africa and other countries in East Africa to respond to the effects of the drought that has threatened the National food security after conducting massive exports that has left the Country in a food crisis amid the drought.

Meanwhile, according to a 2023 report by The United States Department of agriculture (USDA) dubbed “Zambia maintains it’s status as a net exporter,” seen by ZBT, Zambia had a record of 1.5 million metric tons of corn available at the start of the marketing year 2022/23.

However, in August 2022, the government announced an upsurge in the demand for Zambian corn in East Africa, especially from Kenya and Zambia’s regional neighbors in Malawi, Angola, Mozambique, and Namibia who also expressed interest in maize imports from Zambia to meet their consumption needs.

The report further revealed that as a result of the demand from the aforementioned countries, Zambia ended up exporting almost 1.1 million tons of corn in the marketing year 2022/23.

“At the start of MY 2022/23, Zambia had a record of 1.5 MMT of corn available. In August 2022, the government announced an upsurge in the demand for Zambian corn in East Africa, especially from Kenya, which was suffering from drought conditions. In addition, Zambia’s regional neighbors, including Malawi, Angola, Mozambique, and Namibia, also expressed interest in corn imports from Zambia to meet consumption needs. As a result, Post estimates Zambia exported almost 1.1 million tons of corn in MY 2022/23,” revealed the report.

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The move by government to start importing

Tech

Government has confirmed the completion of the feasibility study of an electric vehicle (EV) battery manufacturing facility plant, with positive results indicating that Zambia has enough facilities to set up the plant.

Minister of Commerce, Trade and Industry Chipoka Mulenga has disclosed that the Zambian government is set to establish an electric vehicle (EV) battery manufacturing facility plant in the country following positive results from a feasibility study.

Speaking in an exclusive interview with the Zambian Business Times – ZBT, Mulenga said the final findings of the feasibility studies will be announced by President Hakainde Hichilema, who launched the initiative with his counterpart from the Democratic Republic of Congo (DRC).

Mulenga however, could not confirm when is the commencement of the construction likely to start. “once the engagement with the President is done you will get all the details on that.”

In 2022, the Zambian Government and the Government of the Democratic Republic of Congo (DRC) signed a historical cooperation agreement to facilitate the development of the value chain in the electric battery and clean energy sector. The Copper Belt Province Minister Elisha Matambo confirmed to ZBT that the plant will be set in Ndola.

The Cooperation Agreement is aimed at providing a framework for bilateral cooperation on the initiative to develop the battery value chain as well as strengthen collaboration between Zambia and DRC. 

“We have concluded the feasibility study and  the results are very positive but we are waiting to brief the President  who will announce to the nation.”

“Once we brief the President next week, then soon we will announce to the nation, so we are done with the study and now the technical team has to brief the President then he will announce to the Country. Remember the launch of this thing was launched by the President and his counterpart from DRC so even the results of this must be announced fully by the President.” Remarked Mulenga.

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Government has confirmed the completion of the

Agribusiness

Following government’s intentions to start distributing farming inputs to 58 districts earmarked for winter maize production, an agriculture technology expert has revealed that winter maize will come with an added cost of over 30% because of the cost of irrigation compared to rain fed maize.

Government through the Ministry of Community Development revealed its intensions to start distributing farming inputs to 58 Districts in the country ready to start planting winter maize following the drought which has affected most parts of the Country.

speaking in an exclusive interview with the Zambian Business Times – ZBT, agriculture technology expert Jonah Banda said growing winter maize is a great idea but will incur obvious costs of irrigation.

Banda said that Winter maize farming in the short term will greatly depend on commercial farmers.

He said that there is therefore a need to encourage commercial farmers to put in their best in winter maize production.

He further noted that there is also need for collaboration between commercial farmers and small scale to ensure sustainable winter maize production.

Banda therefore emphasized on the need need for water harvesting strategies to see farmers through the winter period to ensure easy irrigation.

“Winter maize farming in the short term will greatly depend on commercial farmers because they have the ability to irrigate today. So the idea is to encourage commercial farmers to farm and of course winter maize will come with a little bit of an added cost of over 10 to 30%.  So they should be able to sell it more than the rain fed maize but it is attainable if the commercial farmers participate fully,” he said.

“On the small scale farmers, I don’t see us filling the gap this year but that is where the commercial farmers come in. so what has to happen is that there has to be a collaboration between commercial farmers and small scale farmers. Since commercial farmers have access to the water for example if you see the way areas such as Serenje, Mkushi are, small scale farmers are next to Mkushi farmers. So if they are able to share the water, I think that can work. So it’s either commercial farmers grow the winter maize or they collaborate with small scale farmers to provide them with cheaper water,” said Banda.

Banda noted that borehole irrigation will be very costly because there will be need for more pumps as opposed to water harvesting in dams.

He further noted that borehole irrigation is a long term strategy that requires a balance between its environmental impacts and the cost of water harvesting to make it available for irrigation.

“Growing winter maize is a great idea but there is that obvious cost of irrigation of that has to be considered. There is need for water harvesting strategies so that by the time winter comes we should be able to easily irrigate the fields and to irrigate the fields from boreholes will be very costly because we will have to go lower so there will be need for more pumps as opposed to water harvesting on the surface where we can just dam some of these little streams in certain areas and use that water during winter times,” he said.

“I feel like it will be a long term strategy to balance the environmental impact but as well as balancing the cost to harvesting that water so that there is water available for irrigation,” said Banda.

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Following government’s intentions to start distributing farming