Mfuwe International Airport set for rehabilitation to enhance safety & operational excellence – ZACL

In an effort to ensure the continued safety and efficiency of air travel, Zambia Airports Corporation Limited (ZACL) has announced that Mfuwe International Airport (MIA) will soon undergo a period of rehabilitation, commencing on 13th June 2024, causing a temporal closure of the facility.

During the rehabilitation period, which is expected to last for 90 days, all domestic air traffic will be diverted to Chipata Airport.

According to a statement issued by ZACL Board Chairperson – Zevyanji Sinkala and availed to the Zambian Business Times – ZBT, rehabilitation is essential to maintain and enhance the airport’s infrastructure, ensuring it meets the highest standards of operational excellence.

“Mfuwe International Airport infrastructure has recorded marked deterioration, especially the Runway, Taxiway, and Apron Pavements which are critical to aircraft operations. This has necessitated the rehabilitation works which will encompass essential maintenance and upgrades aimed at enhancing the airport’s facilities and overall operational capacity. The scope of work will comprise the rehabilitation of the Runway, Taxiway, and Apron Pavements, the upgrade of the Airfield Ground Lighting (AGL) System to replace the current one which is obsolete, and the re-construction of the Inner Perimeter Fence, and Extension of the Terminal Building.”

Sinkala said the aforementioned works have also been necessitated to comply with the Zambia Civil Aviation Requirements (ZCARs) as espoused by the Zambia Civil Aviation Authority (ZCAA).

“The Government of the Republic of Zambia through the Ministry of Transport and Logistics has aided in the provision of funds to rehabilitate critical airport facilities that will enhance the safety and security profile of Mfuwe International Airport.”

Chipata Airport is currently undergoing rehabilitation to meet the acceptable levels of safety and security needed for aircraft operations. This temporary relocation has been necessitated by the desire to minimise the impact of the disruption to passenger travel schedules that will be occasioned by the temporary closure of Mfuwe International Airport.

He said the decision to temporarily close Mfuwe International Airport has been made with the utmost consideration for the safety and comfort of all passengers and stakeholders. “In this vein, be rest assured that all stakeholders will be engaged to fully understand and appreciate this undertaking which is aimed at improving the safety and security profile of the airport, and its marketability.”

“Zambia Airports Corporation Limited remains committed to providing safe, efficient, and reliable airport and air navigation services, and we sincerely apologize for the inconvenience this undertaking will cause. We look forward to welcoming our valued customers, passengers, airlines and Tenants back to an improved and upgraded Mfuwe International Airport upon the completion of the rehabilitation works.” He remarked.

In an effort to ensure the continued

ZICA urges greater accountability in CDF Management amid allegations of abuse of funds

The Zambian Institute of Chartered Accountants (ZICA) has called for increased transparency and accountability in the management of the Constituency Development Fund (CDF) following recent allegations of misuse of public funds

This is following revelations of alleged abuse of CDF funds at the Kalabo District Council, which has triggered an internal audit of all constituencies.

ZICA President Yande S Mwenye has since commended the Minister of Finance, Dr. Situmbeko Musokotwane MP, for taking a keen interest in addressing the issue and emphasized the need for qualified accountants and auditors regulated by ZICA to be employed to ensure adherence to ethical standards.

Mwenya noted that the CDF allocation was increased in the national budget from K1.6million to K28.3million 2021 and currently to K30.6million, this requires accountability and transparency of the disbursements to ensure confidence in the Zambian people, as these funds are intended for the betterment and to provision of positive impact to local communities across the country.

“We reiterate the need for prudent use of these funds in all constituencies as said before. We need to see more transparency and accountability in the application, approval and disbursement process of the CDF as this is of utmost importance! However, this can only be achieved if qualified accountants and auditors regulated by ZICA are employed. This will ensure adherence to our ethical standards and of course employment for the Zambian accountant.”

ZICA has also expressed concerns about the placement of qualified accountants in non-strategic roles within local authorities, hindering their ability to provide effective oversight of resources.

The institute urged the Local Government Commission to address this issue urgently, emphasizing that the recruitment of registered accountants in local authorities would lead to significant improvements in financial management and oversight.

“The recruitment of registered accountants by local authorities will lead to significant improvements in financial management and oversight. Recruitment of non-registered accountants contributes to the mismanagement and potential abuse of public funds, undermining the integrity of local authorities. As ZICA, we wish to re-emphasize the need for custodians of CDF funds to be trained so that they are able to execute their duties in line with the CDF guidelines. We are ready to help build capacity by providing targeted trainings in financial management to all local governance structures (Ward Development Committees) in all the constituencies.”

Furthermore, ZICA has highlighted the importance of training custodians of CDF funds to ensure compliance with CDF guidelines and offered to provide targeted financial management training to all local governance structures. The institute stressed the need for increased implementation of internal controls at all levels to ensure accountability and transparency in the use of allocated resources by the government.

ZICA also expressed readiness to receive reports from the Controller of Internal Audit once the audits of all constituencies are concluded and emphasized the provisions of the Accountants Act No. 13 of 2008, section 18 (1), which outlines the requirements for practicing as a chartered accountant in Zambia.

The institute’s strong stance on the need for improved accountability and transparency in the management of the CDF underscores the importance of ethical financial practices in driving positive impact and development within local communities across the country.

“We are ready to help build capacity by providing targeted trainings in financial management to all local governance structures (Ward Development Committees) in all the constituencies. Increased implementation of internal controls at all levels is of utmost importance to ensure accountability and transparency of the use of all allocated resources by Government. We look forward to receiving the reports from the Controller of Internal Audit once the audits of all the constituencies are concluded.”

“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 added.

The Zambian Institute of Chartered Accountants (ZICA)

Airtel Africa reports strong financial performance amid a volatile macroeconomic environment

Airtel Africa plc has announced its financial results for the year ended 31 March 2024, showcasing a resilient performance amid a volatile macroeconomic environment.

The company reported a 9 % increase in its total customer base, reaching 152.7 million, with a significant growth of 17.8% in data customers to 64.4 million and a 20.8% increase in data usage per customer and another increase in mobile money subscribers. Africa’s leading telecom company has also reiterated its Continued commitment to network investment to support an enhanced customer experience and drive increased coverage.

“Mobile money subscriber growth of 20.7% reflects our continued investment into distribution to drive increased financial inclusion across our markets. Transaction value increased by 38.2% in constant currency with an annual transaction value of over $112bn in reported currency. The Increase in transactions across the ecosystem reflects the enhanced range of offerings and increased customer adoption, supporting constant currency ARPU growth of 8.6%.”

The company’s revenue in constant currency grew by 20.9%, driven by robust growth in mobile services and mobile money revenue. Despite currency headwinds, Airtel Africa maintained a resilient EBITDA margin of 48.8%, with EBITDA increasing by 21.3% in constant currency.

The company’s CEO, Olusegun Ogunsanya, attributed the success to the consistent deployment of the ‘Win with’ strategy, which has reduced the impact of currency headwinds and increased revenue growth. Furthermore, the company’s rigorous approach to de-risking its balance sheet and capital allocation priorities has reduced the risks that the currency devaluation has had on the business.

The CEO expressed his gratitude to the customers, partners, governments, and employees for their support and contribution to the business adding that the purpose of transforming lives across Africa will continue to be the company’s highest priority.

“This strong revenue performance is a reflection not only of the opportunity that is inherent across our markets but also the resilience of our affordable offerings despite the inflationary pressure many of our customers have experienced.”

He said “Facilitating this growth has been, and will remain, fundamental to our performance. The investment in our distribution to catalyze growth, and the technology required to support this growth has been key. Furthermore, our rigorous approach to de-risking our balance sheet and our capital allocation priorities has materially reduced the risks that the currency devaluation has had on our business. Key initiatives include the reduction of US dollar debt across the business and the accumulation of cash at the HoldCo level to fully cover the outstanding debt due. We will continue to focus on reducing our exposure to currency volatility. At the beginning of March, we launched our first buyback program reflecting the strength of our financial position.”

“The growth opportunity that exists across our markets remains compelling, and we are well positioned to deliver against this opportunity. We will continue to focus on margin improvement from the recent level as we progress through the year.”

However, the company reported a loss after tax of $89 million, primarily impacted by foreign exchange headwinds, resulting in a $549m exceptional loss net of tax following the Nigerian naira devaluation in June 2023 and Q4’24, and the Malawian kwacha devaluation in November 2023. Airtel Africa’s capital allocation strategy included a share buyback program of up to $100 million and a recommended final dividend of 3.57 cents per share. “Capex was broadly flat at $737m and was below our guidance largely due to a deferral in data center investments. In addition, we invested $152m in license renewal and spectrum acquisitions, including $127m for the Nigerian 3G license renewal.”

In addition to its financial performance, Airtel Africa highlighted its sustainability strategy, including a $57 million partnership with UNICEF and the ConnectRwanda 2.0 initiative in collaboration with the Government of Rwanda. These initiatives aim to provide educational resources and affordable smartphones to bridge the digital divide, reflecting the company’s commitment to sustainable growth and social impact.

“I want to say a particular thank-you to our customers, partners, governments and regulators for their support and our employees for their unrelenting contribution to the business. Our purpose of transforming lives across Africa will continue to be our highest priority.” He remarked.

Airtel Africa plc has announced its financial

Zambia’s aviation industry recovery hits 119%

The Zambia Airports Corporation Limited (ZACL) has disclosed that Zambia’s aviation industry performance has seen an impressive start in 2024 with a significant increase in both international and domestic passenger traffic leading to a recovery of 119% to pre COVID-19 in the first quarter of the year.

According to ZACL Communications and Brand Manager Mweembe Sikaulu, said the overall trend in passenger numbers is promising and optimistic adding that demand for air travel to key business and tourist destinations from Lusaka remains upbeat.

“In the quarter under review, Zambia Airports Corporation Limited (ZACL) served 482,400 general passengers, this represents an increase of 20% when compared to the 403,478 passengers recorded in Q1 of 2023 and a recovery to pre COVID-19 levels of 119% when compared to the 404,581 passengers recorded in 2019.”

The highest recovery rate was at Kenneth Kaunda International Airport (KKIA) at 133% recovery and the least was at Harry Mwaanga Nkumbula International Airport (HMNIA) at 71% recovery.

International passengers recovered by 116% with KKIA recording the highest recovery of 133%. HMNIA which mainly serves the tourism industry continued with a slow pace to recovery at only 55%, an increase of 8 percentage points when compared to the same period in 2023.

The notable increase in international passenger numbers was attributed to various events with many taking place in March 2024. Some of the events include the hosting of the Extraordinary Summit of the Organ Troika, Plus SADC Troika which was preceded by the Extraordinary Meeting of the Ministerial Committee of the Organ (MCO) & the meeting of the Senior Officials of the MCO as well as the Extraordinary

Meeting of Interstate Defence and Security Sub Committee (ISDSC).

Domestic passengers recovered by 133% with all airports surpassing pre COVID-19 passenger levels. Simon Mwansa Kapwepwe International Airport (SMKIA) recorded the highest recovery of 156% as the Lusaka-Ndola route was the busiest in the period

under review. The positive domestic performance continues to be driven by the competitive pricing being offered by domestic airlines for flights to and from Lusaka.

Furthermore, it is predicted that domestic performance will continue on an upward trajectory as a result of the opening of the Lusaka – Kasama route that commenced in March 2024. The continued hosting of various meetings in Livingstone by Professional Bodies has also continued to be a significant contributor to domestic passenger

performance.

“3,987 tonnes of cargo and mail passed through ZACL airports in Quarter 1 of 2024, representing a negative growth of 8% when compared to 2023 when 4,205 tonnes were recorded. The rate of recovery to 2019 levels when 5,101 tonnes were recorded was at 78%.

Looking ahead, trade and tourism will remain key drivers of growth, fuelled by the hosting of diverse events like meetings, incentives, conferences, and exhibitions.”

“Additionally, the introduction of flights to Kasama will further boost domestic travel.As Zambia Airports Corporation Limited, we will continue to collaborate with key industry stakeholders to enhance Zambia’s appeal as an affordable and attractive

destination. Our focus remains on ensuring seamless air travel experiences, which will

in turn attract more business tourism, including meetings and conferences.” she added.

“The primary concern that the industry continues to grapple with is the significant increase in fuel prices globally. This has the potential to affect the entire industry negatively, as it has a direct impact on airline operating costs which translates into higher ticket prices.”

The Zambia Airports Corporation Limited (ZACL) has

$5 billion Batoka gorge hydropower plant construction drags

The long-awaited $5 billion Batoka Gorge Hydroelectric Scheme (BGHES) in Zambia and Zimbabwe is facing delays in construction, which is having a significant impact on the energy needs of both countries.

The BGHES is expected to add 2,400 MW of power to the shared grid, helping to reduce the power supply deficit in the two countries.
However, delays in the construction mean that the potential of the Zambezi River as a clean energy source is not being maximized, while the energy gap continues to negatively impact the economies of both countries.

According to the Zambezi River Authority – ZRA, the BGHES the disengagement with the initially appointed project developer has caused delays as the new developer is yet to be appointed.

In an inquiry by the Zambian Business Times – ZBT, Zambezi River Authority, Chief Executive, Eng. Munyaradzi C. Munodawafa, the Authority plans to retender the project in 2024 and expects to receive bids from potential developers by April 2025, with the selection of bidders expected to be undertaken by September 2025. The estimated cost of the project is $5 billion, subject to change depending on inflation and other economic factors.

“It is anticipated that the construction of the BGHES will add 2 400Mw of power to be shared equally between Zambia and Zimbabwe. This increase in power supply would significantly reduce the power supply deficit in both countries. The delay in the construction of the BGHES means that the two countries are not maximizing the potential of the Zambezi River as a clean energy source, whilst the prevailing energy gap continues to negatively impact the performance of the two economies.”

Asked about What measures are being taken to address the challenges that have led to the delay in the construction of the power station. Munodawafa said the Authority will embark on an international competitive tendering process to procure a new developer.

“To ensure that transparency and value for money principles are upheld from the tendering stage through to the final development of the hydropower scheme, steps have been taken for the Authority to enter into partnerships with key renewable energy institutions and international financing institutions (IFIs) whose experience will contribute in respect of driving the project towards bankability and financial close. Measures will be put in place to ensure the project works are done within the timeframe that will be decided upon.”

He said the construction will start soon after reaching financial close spearheaded by a developer who is yet to be appointed. The Authority intends to retender the project within the course of 2024 and expects to receive bids from potential developers by April 2025 while the selection of bidders is expected to be undertaken by September 2025.

Munodawafa said the estimated cost of the project is 5 Billion United States Dollars. “However, this may be subject to change depending on inflation and other economic factors that may affect the cost of goods and services required for the construction of the Batoka Gorge Hydro Power station.”

The BGHES has the potential to provide significant benefits to both countries, and its completion is crucial to their economic development and progress as the two countries face the negative effects of climate change.

Batoka Gorge Hydro Electricity Scheme (BHES) is a 2.4GW hydroelectric project located across the boundary between Zambia and Zimbabwe, on the Zambezi River, approximately 54km downstream of the Victoria Waterfall.

The project is being undertaken by the Zambezi River Authority (ZRA), an entity equally owned by the Zambia and Zimbabwe governments.

A memorandum of understanding (MoU) was signed between Zambia and Zimbabwe to develop the BHES project, in February 2012.

Construction on the £4bn ($5.2bn) project was expected to begin in 2020 and targeted for completion in 2026.

The long-awaited $5 billion Batoka Gorge Hydroelectric

Airtel Zambia injects K300, 000 into 2024 ZICTA ICT Innovation Program

Airtel Networks Zambia Plc has pumped in K300,000 for a record 5th year running to become the Platinum partner for the Zambia Information Communication Technology Authority (ZICTA) 2024 ICT Innovation Program Cohort.

Zambia Information Communication Technology Authority (ZICTA) Director General, Engineer. Choolwe Nalubamba received the cheque on behalf of the Authority saying that the Innovation program which started in 2016 has had over 400 program beneficiaries with at least 30 of the innovations being commercialized.

“Today is another great day for us who have seen this Innovation program grow from strength to strength since 2016 when we first introduced it as an Authority. Receiving this K300,000 from Airtel Networks Zambia Plc today, is something we are excited about and more so because this is the 5th year that Airtel has been the platinum partner,” Nalubamba said.

Adding: “Just recently, we witnessed one of our Alumni innovators host a successful market launch of his product and that in itself underscores the impact that is being created by ZICTA and our partners on the program.”

Airtel Managing Director, Hussam Baday said his Company was pleased to join hands with ZICTA and other organisations in working towards transforming the rich, innovative ideas coming from the program into viable ventures that in turn unlock inclusive and sustainable growth for Zambia.

“We are proud of our continued association with the ICT Innovation Programme, for the 5th year running. This is mainly because of its transformative impact not just to the innovators, but the country. We continue to be inspired by the many success stories that have been coming out of this programme – the start-ups that are getting commercialised, the jobs that are being created, and the huge impact that the innovations are having on the lives of individuals and businesses across the country.”

According to Airtel Zambia, Head – Corporate Communications, Yuyo Nachali-Kambikambi, The Call for submission of Innovations opened in April and will close on May 15th 2024.

The program is expected to run until November with several activities lined up in between including business and technical development workshops as well as group coaching and pitching sessions for the finalists.

Airtel Networks Zambia Plc has pumped in