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Tech

In the turn of events, the Basic Education Teachers Union of Zambia – BETUZ, has revealed that the actual number of houses it plans to build for its teachers is 60,000, and not the previously stated 100,000, leaving out a significant 40, 000 with no clear explanation.

In 2022, BETUZ President Binston Tembo, and the union Secretary General, Henry Sinkala publicly announced that the union intends to invest about $9 billion to build 100,000 low-cost houses for its members across the country but has now u-turned the position suggesting that only 60, 000 houses will be constructed by the union.

The commencement of the construction of the now 60, 000 low-cost houses has also dragged after some sources indicated that the Union does not have the capacity to undertake such a massive project.

Earlier a financial expert exclusively with the Zambian Business Times – ZBT, questioned the $9 billion deal that the Basic Education Union of Zambia BETUZ signed with a United Arab Emirates-based Company to build 100, 000 houses on a rent-to-own initiative for teachers.

Speaking in an exclusive interview with the Zambian Business Times – ZBT, when reminded that he is on record announcing the 100, 000, BETUZ General Secretary Henry Sinkala, denied that he does not recall mentioning the 100, 000 teachers’ houses nor remember stating that figure.

“I do not know where that number is coming from and I don’t know who said it because we plan to construct 60, 000 houses for our teachers that are currently registered. Betuz only has about 60, 000 teachers.” He remarked.

The reduction in the number of houses and the lack of clarity on the timeline for construction have made some teachers lose hope in the promise the union made to the teachers. There have also been some allegations pointing out that the union was only making false promises and using the housing initiative as a political tool to gain support.

The promise to construct the houses was made by BETUZ in 2022, where it was touted as a major breakthrough for the country’s teaching profession.

The union had pledged to work with the government and other stakeholders to ensure that the houses were built and bought by educators over a 15-20-year period.

Meanwhile, Sinkala said the construction of the now reduced 60, 000 houses, depends on when the resources will be made available from the engaged funders of the project.

Sinkala said the union said that it had explored various funding options, including partnerships with private investors, but had been unable to secure the necessary resources as the funds have not yet been made available.

Asked why the construction had been delayed and whether it was true that the union did not have the capacity to undertake such a massive project, Sinkala denied to comment adding that he was attending to something else important.

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In the turn of events, the Basic

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The Zambia National Service (ZNS) involvement in the importation of genetically modified organism (GMO) mealie meal from South Africa to the Democratic Republic of Congo (DRC) seems to have been lacking the necessary legal support as both ZNS and the ministry of agriculture have failed to clearly state which law supports ZNS to participate in such trade.

The Zambia National Service (ZNS) is a Defence Force Wing that is mandated to train citizens to serve the Republic, develop infrastructure, enhance National food security and contribute to the social economic development.

However, the recent announcement the the defense wing is involved in the importation of the GMOs when Zambia does not consume GMOs has raised concerns among members of the public who question the rationale behind the involvement of a wing that is responsible for providing non-GMO mealie meal to Zambian citizens.

This development has sparked a debate about the legality of ZNS’s involvement in the importation of GMO mealie meal and the implications of such actions.

Speaking in an exclusive interview with the Zambian Business Times – ZBT, ZNS Chief Marketing and Public Relations Officer Col Mable Nyone deferred queries on the legality of ZNS’s involvement in the trade to the Ministry of Agriculture.

Nyoni failed to confirm whether or not there is law that supports ZNS’s involvement in trade and referred all queries to the Ministry of Agriculture.

 “This mealie meal is not for sale in Zambia. You can ask Ministry of Agriculture then if there are laws that facilitate that because I don’t think there is any offence of transiting through a country because the mealie meal is not sold locally. So I think Ministry of Agriculture will be in a better position because they are the ones that give permits and for them to give that permit it means that there is something that is backing them,” said Nyone.

Meanwhile, when contacted for a comment Ministry of Agriculture revealed that there is no law that disqualifies   ZNS from participating in international trade but failed to provide specific evidence.

When asked further to confirm which law qualifies ZNS to participating in international trade, Ministry of Agriculture failed to confirm the supporting law.

“The existing law does not exclude ZNS from importing mealie meal. There is no law that eliminates ZNS from participating in importation. That is what I’m telling you, there is no law that disqualifies ZNS from participating in importation. Even you. You can now apply and start importing.”

Experts are since calling for the government to clarify the legal framework surrounding the importation of GMO mealie meal and the involvement of ZNS in the trade.

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The Zambia National Service (ZNS) involvement in

Lifestyle

The death of the senior Barotse Royal Establishment (BRE) Iduna Inenete Akapelwa Silumbu which happened at his residence in Limulunga District in Western Province, has left the family devastated calling for thorough investigations into the matter

Elder brother to the deceased Tawila Akapelwa Silumbu said it is saddening as the village is known for its quietness and the shooting dead of his elder brother is shocking to the family and the entire Chiefdom.

Recently, the police revealed that BRE Senior Induna Inenete Akapelwa Silumbu was shot dead by unknown people at his house in Limulunga district at his residence in Salambango village in Nalubutu chiefdom in Mongu while trying to lock up his vehicle on March 17, 2024.

Speaking in an exclusive interview with the Zambian Business Times – ZBT, elder brother to the deceased Tawila Akapelwa Silumbu revealed that Salambango village in Nalubutu chiefdom is known for its quietness and that the shooting dead of his elder brother makes it the very first shooting incident in the area.

Silumbu noted that police are still carrying out investigation and that no new information has been revealed to the family yet.

He has therefore called on the police to expedite their investigations and ensure that the perpetrators are brought to book.

“The area is not known for gun incidences, I don’t know what transpired because is a very quiet place. There has never been any cases of anyone getting shot at in the area, my brother was the only one and first one. We are very devastated as a family, we are not ourselves, and we have been hit below the belt. Investigations are still ongoing and no new information has been found as at now. Police should be fast in carrying out the investigations,”

He said as the police continues with their investigations, the mystery behind the shooting dead of senior Induna Inenete Akapelwa Silumbu in a place not known for guns still remains unknown.  

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The death of the senior Barotse Royal

Lifestyle

The auditor general’s report for the financial years ended 31st December 2021 and 2022 has revealed that the National Health Insurance Management Authority (NHMA), put confidential customer data (who are mostly patients) at a risk of being breached because of the authority’s failure to secure a software source code for their operational infrastructure system.

A software source code is a set of instructions and statements written by a programmer using a computer programming language and when it comes to software development, owning the source code is a crucial aspect that should not be overlooked because the ownership of the source code determines who has the right to modify, distribute and sell the software.

But according to the AG report, an examination of financial and other relevant records maintained at NHIMA for the financial years ended 31st December 2021 and 2022 revealed that the authority on 13th February 2020, awarded a K790 million contract to ZSIC Life Limited for the supply their operational infrastructure system which included its design, implementation, deployment and support.

The report revealed that as at 30th September 2023, NHIMA paid ZSIC Life Ltd over K517 million for the contract and were left with a balance  of over  K272 million.

The report further revealed that the contract stated that the consultant would be required to provide a fully customizable integrated Enterprise Resource Planning (ERP) information system to support the implementation of NHI scheme of which the core system was to be wholly owned by NHIMA

However, it was observed that as at September 2023, NHIMA had not secured the source code for the HIP system which put the customer’s data at a risk of being breached.

“On 13th February 2020, NHIMA awarded a contract to ZSIC Life Limited for the supply of a system. The scope of works included design, implementation, deployment and support of the operational infrastructure for NHIMA at a contract sum of K790, 000,000. Among the modules to be implemented were member registrations, payment portal and benefit management modules,” the report revealed.

“The contract was for a period of five (5) years from the effective date of the contract. As at 30th September 2023, NHIMA had paid the ZSIC Life Ltd amounts totaling K517, 365,000 leaving a balance of K272, 635,000. Appendix A, Section 3.6 (a) of the contract stated that the consultant would be required to provide a fully customizable integrated Enterprise Resource Planning (ERP) information system to support the implementation of NHI scheme. The core system would be wholly owned by the NHIMA including its source code and all the data was to be hosted in Zambia. No license fees were to apply beyond the initial procurement and deployment of the system by NHIMA. However, it was observed that as at September 2023, NHIMA had not secured the source code for the HIP system. Not owning the source code may lead to several risks, such as Security risks: An Institution may not be able to fix security vulnerabilities or bugs in the software which could lead to breach of customer data. This implies that NHIMA will forever rely on the developer for any modification, bug fix, upgrade to the system and the developer may raise the price for such services. revealed the report.

Meanwhile, the report also revealed that the authority’s failure to secure the source code also put the system at vendor lock risks and the authority having limited control of the system.

“Not owning the source code may also lead to several risks, such as: Vendor lock-in: where an institution becomes dependent on the vendor who developed the software and may not be able to switch to another vendor if they are not satisfied with their services.  Limited control: An institution may not have full control over the software and may not be able to customize it according to their needs or upgrade it. This implies that NHIMA will forever rely on the developer for any modification, bug fix, upgrade to the system and the developer may raise the price for such services,” revealed the report.

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The auditor general’s report for the financial

Lifestyle

Following the sexual abuse allegations by a Lusaka socialite Florence Solochi which implicated Zambia National Service – ZNS commander Lieutenant General Maliti Solochi, the Council of Churches in Zambia –CCZ, has challenged law enforcement agencies to take interest in Solochi’s claim and ensure that investigations are made so that justice prevails.

Recently, Facebook socialite, Florence Solochi in a Facebook Live revealed that she was raised in the household of ZNS commander Lieutenant General Maliti Solochi where she alleged that she was sexually abused multiple times by ZNS commander and his sons #GirlChildRights

Speaking in an exclusive interview with the Zambian Business Times –ZBT, CCZ General Secretary Fr. Emmanuel Chikoya said that when accusations are made, the only way to clear them is to conduct investigations that are not biased so that everyone is equal before the law.

Fr. Chikoya noted that considering the relationship shared between the victim and the accused, it is evident that the victim thought about all the allegations and is now seeking justice for what could have happened to her in the past #sexualabuse

He further noted that there is a need for socialite Solochi to be protected given the status of the person accused.

“Everybody has a right to justice so when accusations are made, the only way to clear them is to have investigations that are not biased so that those that are mighty and the weak, the known and the unknown, the significant and the insignificant, all are equal before the law,” he said. The only caution is that it’s an issue where one needs to be concrete in terms of standing on firm grounds on that matter and since they are related, it must be an issue that someone has thought about hoping that there is no malice involved,” he said #womensrights

“The person is seeking justice for what could have happened to them. So the best thing to be done is to ensure that those investigations are undertaken and she’s protected given the status of the person that has been accused. We pray and hope that she will be safe and nothing will happen to her. Of course, people may tend to rush and brush it off, call her all sorts of names but the only solution is to have the matter investigated, the lady listened to and thereafter a conclusive position be made,” said Fr. Chikoya.

Fr Chikoya said It can therefore be noted that independent investigations in this case can only be carried out by law enforcement agencies when General Solichi is suspended of which his suspension can only come from the President.

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Following the sexual abuse allegations by a

Tech

Following audit findings that Mpulungu Harbour Corporation Limited (MHCL) Company profit dropped by 93% attributed to a reduction in cargo volume passing through the Port, MHCL has revealed that the Reduction in cargo throughput and 93% profit loss was due to Limited shipping capacity, Fuel Shortage in Burundi, Reduced export of sugar to the Great Lakes region and Low Clinker exports.

According to the auditor general’s report for the financial years ended 31st December 2021 and 2022, Mpulungu Harbour Corporation Limited (MHCL) Company’s profit reduced by 93% from over K4 million in 2021 to about K363 thousand in 2022.

The AG report also revealed that the reduction in profit was mainly attributed to a reduction in cargo volume passing through the Port from 231,000 metric tons in 2021 to 185,000 metric tons in 2022.

However according to a press query response from Mpulungu Harbour Corporation Limited (MHCL) to the Zambian Business Times – ZBT, MHCL Acting Managing Director Katowa Kabunda revealed that between 2022 and 2023 the Mpulungu Port ship calls were restricted because of inadequate cargo ship operators on the Lake amidst many competing Ports of call, a situation he said was exacerbated by the sinking of two ships in February and March 2022 which led to ship calls reducing from 308 to 267.

Kabunda said that the Persistent fuel shortages in Burundi negatively affected vessel operators’ turnaround time and calls per month.

He said that a Surge in domestic market demand for Sugar reduced quantities available for export adding that the increase in supply chain costs made the Mpulungu Corridor less attractive as an export route.

“Reduction in cargo throughput and net profit was a result of the following factors; a) Limited shipping capacity – Mpulungu Port ship calls are restricted because of inadequate cargo ship operators on the Lake amidst many competing Ports of call. This situation was exacerbated by the sinking of two ships (2,200Mt lost capacity per ship call) in February and March 2022. As a consequence, ship calls were reduced from 308 to 267 between 2022 and 2023. b) Fuel Shortage in Burundi – Persistent fuel shortages in Burundi negatively affected vessel operators’ turnaround time and calls per month. c) Reduced export of sugar to the Great Lakes region –Surge in domestic market demand for Sugar reduced quantities available for export. In addition, the increase in supply chain costs made the Mpulungu Corridor less attractive as an export route,” he said.

Kabunda noted that the demand for Clinker dropped from 112,000 Mt (2021) to 46,000 Mt (2022), due to supply contract credit terms disagreements between Burundi Cement Company (BUCECO) and Chilanga Cement Plc following a change of ownership.

He noted that the decline in cargo volumes resulted in a significant reduction in sales revenue while fixed costs such as salaries, constituting a major portion of the company’s costs remained largely constant.

He further added that the combined effect of declining revenues and fixed costs resulted in a reduction in net profit.

“Low Clinker exports – Demand for Clinker dropped from 112,000 Mt (2021) to 46,000 Mt (2022), due to supply contract credit terms disagreements between Burundi Cement Company (BUCECO) and Chilanga Cement Plc following a change of ownership. The decline in cargo volumes resulted in a significant reduction in sales revenue while fixed costs, such as salaries, constituting a major portion of the company’s costs remained largely constant,” said Kabunda.

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Following audit findings that Mpulungu Harbour Corporation

Markets

Economist Yusuf Dodia says the Zambian Kwacha which is currently at K26 per dollar, is likely to strengthen to below K15 per 1USD after the full implementation of the export proceeds tracking framework which came into effect on January 1, 2024, as announced by the Bank of Zambia (BoZ).

The export proceeds tracking framework compels all exporters to deposit their export earnings within 90 days of export in banks domiciled in Zambia. The Framework is intended to enhance the compilation of balance of payments statistics by expanding the coverage of external sector statistics, particularly relating to the capture of data on the utilization of export earnings and information on balances held abroad by resident enterprises.

Speaking in an exclusive interview with the Zambian Business Times, Dodia explained that the full implementation of the framework would result in a significant increase in revenue for the country, with as much as K30 million US dollars coming in every day.

Dodia argued that if the framework is successfully implemented, there is no way the Kwacha will continue to depreciate.

He also warned that failure to implement the framework would lead to continued pressures from multinational companies, resulting in little money being paid through mineral royalty tax and ultimately hindering the country’s economic growth.

Dodia said the implementation of the export proceeds tracking framework will play a significant role in shaping the future of Zambia’s economy noting that when money begins to come in through the framework, the kwacha may begin to gain strength.

“My prediction is that if we stay the course if we are committed, if we are consistent, we should see a kwacha to dollar relationship below K15 to 1 US dollar, if the local currency continues to depreciate, it will mean the framework is not being implemented. “If it is implemented, we should be seeing K30 million US dollars coming in every day. If that amount of money is coming in there is no way you can say the Kwacha will continue to deteriorate” said Dodia.

He said if the framework is not implemented and the country continues to succumb to the pressures of the large multinational companies, the economy will be condemned to remain as it is for many years as all the wealth will be going out leaving the country with the little money being paid through mineral royalty tax which is not enough to grow the economy.

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Economist Yusuf Dodia says the Zambian Kwacha

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Lack of tailored products hindering local firms from accessing finance – BOZThe Micro Small and Medium Sized Enterprises – MSMEs finance survey report has revealed that the lack of suitable and tailored products is among the critical challenges hindering ‘local’ business growth in Zambia.

The Bank of Zambia BoZ, in collaboration with various stakeholders, has officially launched the Micro, Small, and Medium Enterprises (MSME) Finance Survey 2022 report which provides insights into the financing needs, constraints, and preferences of MSMEs, highlighting areas that require attention and intervention.

The main challenges highlighted include the high cost of credit, lack of collateral and proper documentation, low-income levels, as well as unsuitable loan products that do not meet the needs of the MSMEs.

As to be expected, these factors limit the ability of MSMEs, or more specifically ‘local businesses’ to access credit to invest, expand, and create jobs in the economy.

Speaking during the launch MSMEs financial Survey Report, Bank of Zambia Governor Dr. Denny Kalyalya said addressing these barriers is essential to unlocking the full potential of local firms for them to upscale and prosper, and thus be able to play their much-expected viral economic growth role.

Dr Kalyalya recognized the importance of the MSME sector in contributing to economic activity and poverty reduction (wealth creation) in Zambia.

Dr. Kalyalay explained that as a response to the general complaints about the challenges this important sector faces concerning financial access and to support these efforts, the Bank of Zambia undertook the MSME Finance Survey to provide the much-needed information required to understand the landscape, behavior, and challenges faced by MSMEs.

Dr.Kalyalya added that only 3 percent of startup capital was sourced from formal Financial Services Providers (FSPs), while 7.3 percent of MSMEs applied for a loan during the five years prior to the Survey (2017-2022).

“Furthermore, the report highlights the importance of fostering a conducive regulatory and policy environment that supports MSME development. Simplifying regulatory processes, enhancing financial literacy, promoting innovative financing mechanisms as well as establishing relevant infrastructure and market linkages are some of the measures that can help MSMEs overcome obstacles and thrive in today’s dynamic business environment.”

The Bank of Zambia Governor has since urged all key stakeholders, notably, policymakers, regulators, FSPs, and MSMEs themselves, to leverage the solutions provided in the report to inform their decision-making and actions.

The Bank of Zambia governor believes that by working together and implementing targeted interventions, they can address the challenges facing local enterprises and create an enabling ecosystem where they can drive economic development through innovation and more job creation.

“By working together and implementing targeted interventions, we can do a better job of addressing the challenges facing MSMEs (local firms) and create an enabling ecosystem where they are able to drive economic development through innovation and job creation.” Remarked Dr Kalyalya.

Speaking at the same event Ministry of Finance and National Planning Secretary to the Treasury, Felix Nkulukusa said the Government is actively exploring various fiscal policies to enhance private sector investment in micro, small, and medium enterprises.

“Given the challenges still faced by local enterprises (MSMEs) in accessing credit and formalizing business, there is a need for a coordinated approach by the Government and key stakeholders to develop national policies, strategies, and interventions that would enhance financial literacy levels and access to finance for MSMEs.” Said Nkulukusa.

Meanwhile, the Ministry of Small and Medium Enterprise Development, permanent secretary, Subeta Mutelo said The dissemination of the survey report marks an important milestone in the journey towards supporting the growth and success of MSMEs in Zambia as it provides evidence-based recommendations that will guide our policies and interventions in the coming years.

Mutelo said about the recommendation for the Ministry to initiate the development of legislation specifically targeted at supporting MSMEs, the Ministry has commenced the process of facilitating the development of legislation to support the growth and development of the micro, small, and medium enterprises, particularly by addressing the unique needs and challenges they face, such as accessible financial products and services.

She said through this legislation, the Ministry aims to provide a conducive environment for MSMEs to thrive and access the necessary financial support for their growth and development and ultimately resulting in the growth and development of the country.

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Lack of tailored products hindering local firms

Companies

Despite management of SERIOES International Limited spending a considerable amount on personal emoluments and other costs to manage the unsold assets, the Auditor General’s report has exposed the failure to facilitate payment of terminal benefits to over 280 ex-employees of SERIOES International Limited a total of K5,730,609 as of 31st December 2022.

Questions had earlier risen on the alleged corrupt sale of the SERIOES International Limited Property Stand No. 1554 in Luanshya to Nyimba Investments Limited by the Office of the Administrator General and Official Receiver after it was discovered that the property was sold at a price that was lower than the reserve price by about K1.3 million.

This is after the sale of Luanshya’s SERIOES International Company Limited properties, a company that was once a producer of suits for the local and international markets before the privatization era, has been rounded off by alleged corrupt deals.

A review of schedules relating to outstanding terminal benefits to ex-employees of SERIOES Company however, revealed that as of 31st December 2022, a total of 282 ex-employees were owed amounts totaling K5,730,609.

However, no payments had been made to any ex-employee but management had spent amounts totaling K216,335 on payment of personal emoluments and other costs to employees engaged to manage the unsold assets leaving a balance of K1,433,665 as at 31st October 2023.

The sale of the company’s properties Stand No. 1554 in Luanshya, has been had raised questions for alleged corrupt deals after the property was sold to Nyimba Investments Limited at a price lower than the reserve price by about K1.3 million, raising questions about the transparency and fairness of the sale.

SERIOES International Limited was once a renowned company that produced high-quality suits for the local and international markets. It was known for its exceptional garment-making skills, and its suits were worn by people in the military and even President Kenneth Kaunda himself. However, the privatization era saw the company’s downfall, and it was eventually sold off.

The failure to pay the terminal benefits to ex-employees is however a serious issue that needs to be addressed immediately as it highlights the company’s disregard for its former employees, who had dedicated their time and effort to SERIOES International Limited.

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Despite management of SERIOES International Limited spending

Tech

INFRATEL Company limited, a Zambian telecommunications infrastructure company, has been hit hard by mismanagement and failure to generate revenue resulting in the loss of over K8 million.

A review of accounting and other records maintained at INFRATEL Headquarters in Lusaka by the Auditor General’s Office for the financial years ended 31st December 2020, 2021, and 2022, revealed that INFRATEL maintained a total of eighty-one (81) Telecommunication Towers in eight (8) provinces (Copperbelt, Central, Lusaka, Muchinga, Northern, North-Western, Southern and Western) that were not generating any revenue for the company as there were no customers that were using the towers.

In this regard, a total amount of K228,800 was spent to maintain the towers every month resulting in a loss of funds amounting to K8,236,800 during the period under review.

INFRATEL Company Limited was incorporated on 23rd August 2018 and commenced
operations on 1st October 2019 and is wholly owned by the Government through the
Industrial Development Corporation (IDC).

According to the report, On 1st June 2020, ZAMTEL and INFRATEL and the Government of the Republic of Zambia acting through the Ministry of Home Affairs entered into a novation agreement relating to the Colocation on Towers and Equipment Agreement executed between ZAMTEL and the Government of the Republic of Zambia dated 1st March 2019. Clause 4 (i) of the Agreement stated: “Subject to the agreed terms, INFRATEL shall replace ZAMTEL as a party to the agreement and shall from the effective date be bound to perform all the terms and conditions of the agreement as if it were the original party to the agreement.”

According to the AG’s report however, during the period under review, INFRATEL maintained 81 telecommunication towers in eight provinces that were not generating any revenue for the company as no customers were using them. The company spent a total amount of K228,800 to maintain the towers every month, resulting in a loss of funds amounting to K8,236,800.

Meanwhile, the company’s Statement of Profit and Loss and Other Comprehensive Income showed that INFRATEL recorded losses for three consecutive years. Although the loss was reduced by 10.8% from K3,138,630 in 2020 to K2, 944,516 in 2021. As of December 31, 2022, the company had accumulated losses of K5,577,179, representing an increase of 87% from K3,138,630 in 2020.

The auditor General’s report also indicate that during the period under review, INFRATEL operated with a negative working capital of K14,580,838 in 2020, K77,133,358 in 2021, and K89,764,846 in 2022, which meant the company could not pay off its liabilities when they fell due.

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INFRATEL Company limited, a Zambian telecommunications infrastructure