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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

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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

Tech

As Zambia is facing an energy crisis due to a deficit in electricity supply, an Energy Engineer has urged the Zambian government to urgently develop provincial research centers as one way of diversifying the energy sector.  

The government has been struggling to meet the growing demand for energy as the country’s population continues to rise.

In response to this Engineer Bornface Zulu has urged the Zambian government to establish a network of provincial Research and Development (R&D) centers dedicated to the diversification of energy resources. Engineer Zulu said with careful planning and investment, Zambia can create a resilient and diverse energy portfolio that supports economic growth and environmental stewardship.

Zulu believes that establishing provincial R&D centers for energy diversification is a strategic move that will empower each province to contribute to Zambia’s energy independence and sustainability. With careful planning and investment, Zambia can create a resilient and diverse energy portfolio that supports economic growth and environmental stewardship.

According to Zulu, these centers will play a crucial role in assessing and harnessing local energy potentials, tailored to the unique environmental and geographical characteristics of each province. “To achieve this, the centers will need to focus on five key areas, including morphology, topography, hydrology, ecology, and meteorology.”

Zulu suggested that the Zambian government should explore several avenues to finance these R&D centers.

He said these include local funding, international funding, and development banks adding that if Zambia considers nuclear energy, it is imperative to invest in education.

He said as the energy crisis continues to affect Zambia, it is essential to take action and develop a sustainable energy plan for the future.

The establishment of provincial R&D centers for energy diversification will not only address the current energy deficit but also ensure a stable energy supply for the country’s growing population.

For comments and whistleblowing email: editor@zambianbusinesstimes.com

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As Zambia is facing an energy crisis

Tech

The prices for gas, oil, and electricity are still high. This hurts your wallet, because: Heating accounts for around 75 percent of a household’s energy consumption. Correct heating is therefore the ideal way to save costs and reduce CO2 emissions.

We don’t yet know how cold it will get in the coming winter months or how long the energy price brakes will remain in force. But we do know one thing: Space heating accounts for around three-quarters of total energy consumption in households, so in times of still high energy prices, it also accounts for three-quarters of your energy costs! Correct heating can therefore help you save a lot of money. And this money you can use for https://22bet.co.mz/en_mz/live

Even simple measures can help to heat properly: lower the blinds, seal the windows, insulate the radiators, ventilate the room, and set the heating correctly … This can save a lot of energy and money when heating – and ensure a healthy indoor climate at the same time. Here are all the tips in detail.

OUR TIPS

  1. Conserve heating energy at night
    Windows do not have the same insulating effect as walls. You can therefore heat properly and save money simply by allowing as little heat as possible to escape – especially in winter.
    It therefore makes sense to lower shutters and blinds completely after dark (or even during the day if rooms are not in use). This can reduce heat loss at the windows by up to 20 percent and save you heating costs.

By the way: Drawing the curtains will also save a few percent!

And the same applies vice versa in summer: closed shutters help to keep rooms cool.

  1. Heating correctly means heating more consciously
    Heating properly and saving money often just means heating less and using the heating more consciously. No home needs to be 25 degrees in winter. Every degree less saves heating energy and therefore costs. According to estimates, you save around six percent of energy and money per degree.

The optimum room temperature in the living room is around 20 degrees.
In the bathroom, it should be 22 degrees. A floor mat helps against cold feet.
In the kitchen, the oven and fridge give off heat, so you often don’t need to heat the room at all.
In the bedroom, 17 to 18 degrees ensures a good night’s sleep, some prefer even less.
Important: It’s not about freezing within your own four walls! But often you don’t feel cold despite the heating, but because of it. If you wear T-shirts in winter, you are doing something wrong. The body adapts to the higher temperature in the room and no longer notices that the room has long been overheated.
Incidentally, unused rooms need little or no heating. But: It should not get much colder than 15 degrees in winter when the outside temperature is below zero. Otherwise there is a risk of mold. This applies above all to sources of moisture in the room (shower, kitchen) and especially in cool rooms.

  1. Shock ventilation instead of permanent airing
    Correct heating is only possible with correct ventilation: Permanently tilted windows hardly provide any air exchange, but only cool down the walls. Correct airing, on the other hand, saves a lot of energy and is also good for your health.

Too little humidity in the room dries out the mucous membranes, and too much encourages mold, especially on cold walls. So open the windows fully for a few minutes several times a day to ensure a complete exchange of air – but turn down the thermostat valve on the heating first.

  1. Expose radiators
    Make sure that your radiators are not covered, for example by furniture or curtains. Thermostats should also not be covered. Otherwise, the heat cannot be distributed properly in the room and your heating will have to work harder than necessary – this only wastes energy and costs money.
  2. Turn the heating off earlier
    When you go to bed, you like to turn the heating off (or turn it down) beforehand. However, the heating continues to heat for a while – unfortunately, this heat is no longer of any use to the occupants.

So it’s smarter to turn the heating down half an hour before you go to bed. This also saves energy.

6 When to heat – only in the depths of winter?
Many people ask themselves the question of when proper heating makes sense at all or when heating by landlords must be made possible in principle.

Typically, heating doesn’t start until October at the earliest.
From the middle/end of April, heating is usually no longer necessary. Of course, this also depends on your region and the local temperatures.
The following applies to landlords: heating is permitted from October 1 until April 30. If the temperature in rented rooms drops below 16 degrees or below 18 degrees for a longer period, it must also be possible to heat outside the heating period. If landlords do not ensure this, there is a material defect and tenants can reduce the rent.
The majority of our heating energy consumption occurs between December and March: heating properly and saving money also means: if possible, start heating later and stop earlier.

Incidentally, heating is one of the things that has the greatest impact on the climate. Reducing the floor area of your home is therefore one of the most effective (but also one of the most difficult) things you can do to protect the climate and save money.

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The prices for gas, oil, and electricity

Mining

GoviEx Uranium Company says its Muntanga Uranium Project in Zambia is progressing as planned and the Company will publish the feasibility study in the second half of 2024.

With an anticipated annual production capacity of 2.5 million pounds of U3O8, the project is expected to be a significant contributor to the global uranium market. According to GoviEx production will be marketed to utilities, off-takers, and potentially the spot market.

Speaking in an interview with the Zambian Business Times – ZBT, GoviEx Uranium Inc. Head of Investor Relations and Corporate Communications, Isabel Vilela, said the company is on schedule to publish the Feasibility Study in the second half of this year, as anticipated.

Vilela said the Muntanga Uranium Project is a cornerstone of GoviEx’s strategy to become a major uranium supplier, alongside its Madaouela project in Niger.

She said GoviEx has also taken steps to ensure the safety of workers and the local community during the mining process.

She said the bullish market outlook for uranium prices in 2023 further bolsters GoviEx’s enthusiasm for the Muntanga project. “Uranium prices have shown remarkable performance, being the best-performing commodity in 2023. This positive market outlook and its implications for GoviEx’s success make the Muntanga project a highly promising venture.”

Asked about the projected timelines for the completion of the project and the start of production, Vilela said, “with the Feasibility Study on the horizon, we will gear up for debt finance planning in 2025, followed by a two-year construction phase. It’s a bit early to set these dates in stone, but that’s the roadmap we’re working with for now.”

“We anticipate an annual production capacity of 2.5 million pounds of U3O8 (this is called yellowcake and it’s one of the forms in which uranium is traded on the market) per year, although this will have to be confirmed in the Feasibility Study. Our production will be marketed to utilities, off-takers, and potentially the spot market. Specific strategies remain adaptable to best serve the project’s interests.”

Asked about the measures being taken to ensure the safety of workers and the local community during the mining process, Vilela said “Our company not only adheres to Zambian health and safety standards but follows best practice international standards, having robust health and safety policies in place.We have a solid stakeholder engagement plan and are committed to community welfare and development through substantial initiatives, including the construction of schools and health clinics in the project area. We are also promoting local employment through our Back to School Project where we partnered up with the District Education Board Secretaries (DEBS) for the Siavonga and Chirundu Districts to fund an adult education plan, aiming to bring adults back to school so they can potentially work in the project, once they reach grade four and the project is up and running. At the moment we have nearly 500 students enrolled in this project. We also have a junior trainee program and are funding the tuition, boarding, and upkeep of an initial six students from three communities in the areas around the Muntanga Project.”

asked about the role does the Zambian government play in the project, and what is their level of support for the project, Vilela said, “they are fully supportive of the project and their backing is invaluable to our project’s success. We maintain a continued and fulsome communication with many levels of the Zambian Government.”

“As with any new venture, we face certain risks that could impact our timelines. These can vary from the supply chain, labor, environment, etc but our approach to mitigating these risks is proactive and focused on minimizing delays and other potential challenges.”

“Uranium prices have shown remarkable performance, being the best-performing commodity in 2023. This bullish trend bolsters our enthusiasm for the Muntanga project, and we remain optimistic about the positive market outlook and its implications for our success.” She added.

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GoviEx Uranium Company says its Muntanga Uranium

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Economist Trevor Hambayi has projected that Zambia is likely to continue experiencing the high cost of living which currently stands at over K10, 600 noting that there are no economic fundamentals that seem to be driving a reduction in the cost of living this year.

Aaccording to the Jesuit Center for theological Reflection (JCTR), the cost of living for a family of 5 is currently standing at K10, 603.40 as of March, 2024 from K 10, 307.01 recorded in February.

Speaking in an exclusive interview with the Zambian Business Times -ZBT, Economist Trevor Hambayi said it is unlikely that the cost of living will come down in 2024 as there seems to be not intervention measures being put in place.

Hambayi said the high cost of living will continue until the country reaches a greater degree of productivity to grow the gross domestic product (GDP).

He noted that the growth of the GDP will create macro stability in the exchange rate which will see a consistency in the prices of goods and services which will in turn reduce the cost of living.

He further attributed the high cost of living amid the current appreciation of the Kwacha to the prices of goods and services remaining constant.

“If you look at the economic fundamentals, we do not see any economic fundamentals that are speaking to be able to drive a reduction in the cost of living in 2024.So essentially in 2024, it is unlikely that the cost of living is going to be coming down,” he said.

“This general trend is going to continue until we can see a situation where the country is reaching a greater degree of productivity. This productivity is going to be measured by the GDP. So the GDP needs to grow before we can start to see the cost of living coming down. When the GDP grows, it will also create macro stability in the exchange rate and when there is that stability in the exchange rate, we will see a consistency in the prices of goods and services and that is what is going to create a level of reduction in the cost of living.”

“In terms of the cost of living is that the Zambian cost of living is being driven by the depreciation of the Kwacha. In the last month we saw that the kwacha had depreciated to K27 and what resulted from this was that the prices of goods and services were also increased. But in the last two weeks we have seen an appreciation of the Kwacha but what we do see is that the prices of goods and services have not reduced and that is why we continue to see an increase in the cost of living,” said Hambayi.

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Economist Trevor Hambayi has projected that Zambia

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The Zambia Consumers Association (ZACA) has charged that the Government’s decision to ban the issuance of permits for the Production of charcoal amid load shedding is a good decision that has come at a wrong time when people are desperately looking for other sources of energy.

Recently, the Government through the Ministry of Green Economy and Environment banned the issuance of permits for Cord- Wood used for the production of charcoal in Mumbwa Itezhi Tezhi and Shibuyunji Districts of Central Province, until further notice due to the unprecedented levels of deforestation in the country.

Speaking in an exclusive interview with the Zambian Business Times -ZBT, ZACA Executive Secretary Zuba Sakala said that the government could have imposed the ban some years back unlike imposing it when the Country is grappling with load shedding where most people are depending on charcoal as one of the easiest and most affordable sources of energy.

Sakala said that unlike being proactive, the Government is rather being reactive to the current situation.

He noted that if the government had applied proactivity some years back, people could have found other alternative sources of energy.

He further emphasized that the ban of import permits for the production of charcoal amid load shedding will increase the cost of charcoal in that charcoal production will go down while it’s demand will go up.

“The problem we have as a Country is that we are reactive. This ban would have come 3 to 4 years ago but we have decided to impose it now when we have another problem of load shedding where we know that people will run for charcoal as one of the easiest sources of energy. So being reactive is another problem,” he said.

“The government could have been proactive 4 years ago and people could have already found another alternative but as the situation stands now it looks bad but it’s a good decision coming at a wrong time when people are desperately looking for other sources of energy. On the issue of charcoal being expensive following the ban of import permits on charcoal production the possibility is there because the charcoal that will be coming will be coming in a few,” said Sakala.

Meanwhile, According to the Zambian Living Conditions Monitoring Survey, the major sources of energy consumed at the household level in Zambia are firewood, charcoal, and electricity.

Over half (54.3%) of all households in Zambia use firewood as their main fuel for cooking, while 28.7% use charcoal and 16.8% use electricity.

This means with the onset of load shedding households that relied on the use of electricity for cooking will now now have to rely on either firewood or charcoal.

And with the ban of the issuance permits for the production of charcoal in Mumbwa Itezhi Tezhi and Shibuyunji Districts of Central Province amid load shedding, it is anticipated that the production of charcoal will go down while the demand will go up.

And when this happens, the cost of charcoal will also go up meaning that people will have to spend more money to buy charcoal at household level amid load shedding or find other alternative sources of energy that are in most cases more expensive.

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The Zambia Consumers Association (ZACA) has