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The exit of Bwin from the Zambian market has raised concerns about the impact of foreign companies on the local economy and the need for stronger regulations to protect the rights of employees as over 70 employees will be left with no benefits nor clear vision about the company’s exit from the Zambian market.

The Austrian online betting brand acquired by Entain plc earlier confirmed to ZBT that it is exiting the Zambian market claiming that there is a change of strategy at the group level and the focus is now shifted to a high-growth market. However, it has emerged that only 3 people have been served with termination letters.

BWIN Africa Chief Marketing Officer SPENCER OKACH had indicated during the time when Bwin was officially entering the Zambian market in 2022 that 15 Zambians were employed before the launch and 50 more people where going to be employed after the Launch.

Speaking in an exclusive interview with the Zambian Business Times – ZBT, Bwin’s country marketing manager, Golden Ngandu, however said only three people were directly employed by the company, while the rest were outsourced adding that only 3 people were served with termination letters.

When asked about the fate of the ‘outsourced employees’, Ngandu explained that it’s the same procedure that happens when a company shuts down meaning the rest of the people will only be left with nothing. This statement has sparked controversy as many are questioning the fairness of leaving employees without any notice or compensation.

The company claimed that there was a change of strategy at the group level and that the focus has now shifted to a high-growth market. However, this decision has left a number of Zambians with nothing but CVs as they are left without jobs.

Bwin, a global sports betting platform, was launched in Zambia in November 2022 after seeing the booming market of online betting in the country. However, the company says it has since given notice to all regulators, including the Ministry of Tourism, of its decision to pull out of the Zambian market.

Ngandu however stated that the three employees who were directly employed by the company were served with separation letters and each entered into a separation agreement that spelled out all the details of the benefits and the reasons why the company decided to exit the market.

Meanwhile, there has been some allegations indicating that only the big fish “directors” were entered into seperation agreement, leaving the majority poor zambians with nothing to take home with.

“We have since given notice to all our regulators, including the Ministry of Tourism, and in terms of staff like for Zambia, we had a co-staff complement of 3 people who were directly employed by the Company the rest were outsourced and only the three people were notified and each was entered into a separation agreement. The agreement is the one that spells out all the details of the benefits and the reasons why the Company decided to pull out of the Zambian market.”

As the Zambian government works to attract foreign investment, it has been challenged to ensure that the interests of its citizens are not overlooked.

Picture below is Trade & Commerce Minister Chipoka Mulenga welcoming Bwin as they launched operations in Zambia.

May be an image of 4 people, suit, newsroom and text that says 'sino bwin Sports Botting & Casino bwin bwin.com'

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The exit of Bwin from the Zambian

Mining

Maamba Collieries Limited mute on $160M ZESCO debt write-offZambia’s largest coal mine and the nation’s biggest Independent Power Producer (IPP) with Zambia’s only coal-fired Thermal Power Plant (TPP), Maamba Collieries Limited (MCL), has gone mute on the $160 million given up to the state-owned power company – ZESCO after a protracted period of dispute, negotiation, and final arbitration.

The debt between Maamba Collieries Limited and ZESCO had been allowed to accumulate to over $600 million as of 2021 due to the reluctance and dispute by the state-owned power utility Company – ZESCO to settle the bill.

According to the statement issued by ZESCO Managing Director Victor Mapani, Maamba power plant has since agreed to write off the receivables of $160 ($453 a situation which has raised suspicion that Maamba Collieries Limited (the parent company) may have deliberately and corruptly tried to over bill the public utility ZESCO as there has been no justification as to how this huge debt was allowed to continue to grow over time.

This means that the amount of debt owed by ZESCO to the Mamba power plant has been lowered down from $607 million to now only $250 million after the writing off of the $160 million as well as an additional payment of about $197 million by ZESCO to Mamba in the last two years.

When contacted for a comment by the Zambian Business Times – ZBT, the Maamba corporate affairs office could not comment on the matter stating that the country director was outside the country and was the only one authorized to speak.

“There is no one who can give you that information because the director PJ Sudhir left the Country for India on holiday and there is no one sitting in for him so you just have to wait for him to return.”

Maamba power plant is just another independent power producer – IPP after the Itezhi Tezhi Power Corporation – ITPC received half a billion dollars ($653) knock after ZESCO debt write-off following a protracted period of dispute, negotiation, and final arbitration.

The dispute between MCL and the state-owned power utility Company – ZESCO last year 2023 saw even Maamba shutting down operations at one of the 150 MW units thereby affecting the country’s power supply and leading to massive load shedding as the situation was only resolved after the closed-door meeting in which the Head of states President Hakainde Hichilema.

Meanwhile, the state-owned power company in Zambia (ZESCO) has been commended for bringing down the debt owed to IPPs from over $1,800 million in 2021 to now about $583 million representing over 32 percent decrease as of 31st January 2024.

Maamba Collieries Limited (MCL) operates a 300 MW (2 X 150 MW units) modern coal-fired power plant with the capacity to supply 10 percent of the country’s current installed electricity generation capacity.

MCL is owned 65 percent by Nava Bharat Singapore Pte. Ltd and 35 percent by ZCCM-IH, with some US$919 million invested since 2010.

The power generated from the Maamba is sold to ZESCO under a power purchase agreement for a period of 20 years.

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Maamba Collieries Limited mute on $160M ZESCO

Tech

In a show of support for women’s rights and education, the Zambia Institute of Chartered Accountants (ZICA) has donated 25 additional desks and rehabilitated the dining hall at Ngombe Community School.

Speaking during the handover ceremony, ZICA President Yande Siame Mwenye explained that as the world celebrates International Women’s Day which falls on 8th March 2024, it was fitting that ZICA donated to the less privileged in society.

She added that while the Institute had donated desks to the school last year, they thought it was important to consider other areas that would enhance the pupils’ well-being, hence the project to rehabilitate the dining hall.

“Tomorrow is International Women’s Day and it befits that, as we commemorate that special day in this special month, we hand over goodies to the less privileged in society”, said Mwenye.

The ZICA President also reiterated the Institute’s commitment to supporting the education sector in Zambia and improving the learning environment for children. She praised the school for its academic excellence and urged the pupils to work hard and pursue their dreams.

Others who attended the ceremony were ZICA Vice President Mr Joseph Matimba, Council Member Mr. Mulendo Siame, ZICA CEO Mr. Anthony Bwembya, ZiCA Staff, the school management, teachers, pupils, and community members.

Meanwhile, the School Head Teacher, Catherine Changaya, expressed her gratitude to ZICA for the generous gesture adding that the desks and the dining hall would enhance the quality of education and health for the pupils. The pupils, in turn, expressed their gratitude to ZICA and sang songs of appreciation during the event.

The pupils expressed their gratitude to ZICA and sang songs of appreciation during the event. To crown it all ZICA Council and Staff sponsored a luncheon for the pupils which they all enjoyed together in the newly rehabilitated dining hall.

It is heartening to see organizations like ZICA taking an active role in supporting education and promoting women’s rights, especially in vulnerable communities. The donation and rehabilitation of the dining hall is expected to undoubtedly go a long way in enhancing the pupils’ learning environment and well-being.

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In a show of support for women's

Agribusiness

Four (4) Insurance Companies that collected over K102 million in premiums from over 1 million local farmers have gone mute after the revelations and confirmation of the 2023/2024 national disaster drought, a trigger point for processing payouts to all FISP registered farmers.

The Weather insurance index under FISP was meant to be an innovative approach aimed at managing climate related risks using a pre–defined index such as rainfall to determine payouts, but a situation reveals that local farmers risks not getting their payouts from the Insurance Companies.

The Ministry of Agriculture has revealed to the Zambian Business Times – ZBT, that ZISC general insurance, Professional insurance, Mayfair and Hollard insurance companies are the companies that collected over K102 million in weather index insurance premiums from over 1 million farmers under the Farmer input support programme (FISP).

Insurance companies that collected the Weather insurance index under FISP are therefore mandated to facilitate the financial pay-outs for FISP farmers to help them recover their investment losses from weather related events such as drought and floods.

According to the official documentation reviewed by ZBT, all beneficiaries under FISP are required to contribute K400 to be eligible to receive inputs and from this contribution, K100 is paid and allocated as a premium towards the weather index insurance for each farming season.

Speaking in an exclusive interview with ZBT, Ministry of Agriculture Director – Agribusiness and Marketing Musoka Mwendalubi disclosed that during the 2023 farming season, 1,024,000 farmers were registered under FISP and therefore contributed towards the weather index insurance premiums.

“For the 2023 season, we had Madison, ZISC general, professional insurance, Mayfair and Hollard insurance Companies. So we have 1,024,000 farmers under FISP. This means that the insurance companies in question collected a total of K102, 400,000 as premium from FISP farmers in the 2023 farming season.” revealed Mwendalubi.

With the severe droughts being experienced in the country, the insurance companies are supposed to pay out FISP beneficiaries covered under this insurance to help them recover their investment losses from the drought.

However, when contacted by ZBT, ZISC general insurance communications and customer experience Officer Penipher Sikainda confirmed that they are indeed among the insurance companies dealing with the weather index insurance for FISP farmers and confirmed ZISC being a part but was unable to give more details and amounts that should be paid back to the affected local farmers.

 “It’s not all of them, we do insure the FISP farmers but not all of them. The system was changed so we have several insurance companies that handle insurance for FISP farmers,” she said.

Meanwhile efforts to get comments from Professional insurance, Mayfair and Hollard insurance companies, on how much will be paid to farmers to help them recover their investment losses from drought proved futile by press time.

For comments, contribution or whistleblowing email: editor@zambianbusinesstimes.com

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Four (4) Insurance Companies that collected over

Agribusiness

The cheaper mealie meal Zambia National Service – ZNS has been providing to vulnerable citizens is expected to reduce following the revelation that about 76 percent of the crops managed by ZNS have been damaged by the dry spells.

The Zambia National Service (ZNS) has revealed that out of the 1,455 hectares of maize put to crop by ZNS, 1,096 hectares of maize about 76 percent have been destroyed by the droughts leaving only 359 hectares.

With over 76% of their crops affected, it is feared that production of cheaper mealie meals, which is vital for vulnerable citizens, will plummet if immediate measures are not taken.

Recently, President Hakainde Hichilema declared the prolonged drought the country has been experiencing as a national disaster and emergency necessitated by the destruction of crops that affected over a million of households countrywide.

Speaking during a media briefing monitored by the Zambia Business Times – ZBT, ZNS commander lieutenant general Maliti Solochi said Solochi said that from the 359 hectares spared, very little to nothing is expected to be harvested.

He further revealed that revealed that of the 120 hectares of early maize put to crop at ZNS Munsakamba in Mkushi, ZNS expects to harvest about 960 tons of maize.

Solochi therefore revealed that ZNS will be undertaking short-term and medium-term interventions such as suspending the growing of wheat among other measures to heed the declaration of drought as a national disaster and emergency.

“ZNS had put to crop 1,455 hectares of maize out of which 1,096 hectares is completely destroyed with very little to nothing expected to be harvested. This leaves only 359 ha where we are likely to harvest some cobs. 120 hectares of early maize was put to crop at ZNS Munsakamba in Mkushi from which we envisage to harvest about 960 tons,” he said.

“In heeding to the timely declaration of drought as a national disaster and emergency, the Zambia national services will this year suspend the growing of wheat in order to commit all its irrigation equipment to grow irrigated maize. Two (02) new farms namely Shikabeta farm in Rufunsa and Luena farm in Kawambwa will be added to those where ZNS will grow maize. Each of the farms will add 128 and 520 hectares respectively. the Zambia national service will also put to crop 1, 978 hectares of irrigated maize by the end of July this year, with a projected yield of about 1 5 000 metric tons of maize grain by the end of the third quarter of 2024. ZNS will also drill solar boreholes in its ranches to mitigate the water shortages likely to be experienced which may affect livestock.”

“ZNS will continue working around the clock to ensure eagle’s Mealie meal is produced from its milling plants and we shall further continue to bring more retailers based in communities on board to ensure easy access to the commodity. Three (03) more dams are to be constructed this year at airport farms, Sopelo in Lusaka West, and Nyimba. Four more center pivots are being installed to bring the total holding of center pivot irrigation equipment to twenty-six (26). This will add 360 hectares to irrigate crops. Construction of community dams to promote irrigation farming in the country in collaboration with the Ministry of Water and Sanitation,” said Solochi,

The drought crisis facing Zambia is a wake-up call for the government and the agriculture sector to take the issue of climate change seriously as the suspension of wheat cultivation and drilling of solar boreholes may provide temporary relief, but a more comprehensive and long-term strategy is needed to tackle the problem head-on.

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The cheaper mealie meal Zambia National Service

Mining

Chambishi Copper Smelter – CCS, one of Zambia’s largest copper concentrate processing companies has failed to confirm if the Company is adhering to the export proceeds tracking framework directive by the Bank of Zambia – BoZ, which came into effect on 1st January 2024.

This is after Barrick’s Lumwana mine, the second-largest copper miner in Zambia denied exporting copper but trades locally through other players that have smelters, of which CCS is one of the largest Copper Smelting companies in Zambia.

CCS is a largely copper smelting and processing company located within the Chambishi Multi-Facility Economic Zone (MFEZ) and is one of Zambia’s largest copper concentrate processing companies, with a capacity designed to produce about 250,000 tons of copper blister per year.

This is from the copper concentrates that the company purchases from both local and foreign entities mostly from neighboring DRC. It also produces 670,000 tons of sulphuric acid as a by-product for local and export markets.

When contacted by the Zambian Business Times – ZBT, on Friday 1st March 2024, CCS through its Corporate Affairs Officer Elezeti Nyambi refused to confirm if the Company is adhering to the new BoZ directive and only promised to get back after some time. A check, however, with her as of Monday 5th March 2024, established that she was still unable to confirm if the Company is adhering to the directive.

The BOZ export tracking framework requires that all exporters in Zambia open bank accounts with a bank or financial institution domiciled in Zambia and deposit all export proceeds to that account within a period of 90 days.

CCS being one of the largest copper concentrate processing companies in Zambia remains key to the success of this export proceeds tracking framework as copper exports alone account for over 70% of Zambia’s total annual exports.

The BOZ export proceeds tracking framework directive has brought renewed hope, with analysts and economists projecting that, if well implemented, policy actions will be well directed and that the Kwacha may post further gains as this balance of payments monitoring tool is expected to bring more transparency and result in more export dollar inflows into the country.

The export tracking framework among other things requires exporters to open and maintain a bank account with a bank or financial institution domiciled in Zambia and that an exporter shall deposit all proceeds of exports of goods and/or services into this account within ninety (90) days from the date of export.

All exporters in Zambia are required to complete and submit to Zambia Revenue Authority (ZRA), the customs export declaration form.

And the banks or financial institutions that receive these export proceeds are required to make a return or report to BOZ through submission of money receipts and remittances report on the electronic Balance of payment (e-BoP) Monitoring System.

The directive has also prescribed adequate penalties for exporters, banks, financial institutions and other players involved in export that fail to comply, which include revocation of their tax clearance certificate and TPIN.

By time of publication, ZBT was still actively seeking confirming with companies that run smelters if they are complying with this directive. More details to follow.

For comments, contribution or whistleblowing email:editor@zambianbusinesstimes.com

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Chambishi Copper Smelter – CCS, one of

Mining

Economist has warned that the Zambia revenue authority collection target of K125 billion for the financial year 2024 will be unattainable if the country’s mines do not resume to full production.

Speaking in an exclusive interview with the Zambian Business Times, Naylor Kopakopa said that if the mines do not return to full production, the Zambia Revenue Authority (ZRA) will struggle to meet its target. “However, if the mines do resume operations, ZRA may be closer to achieving its target, as the tonnage at KCM and Mopani, and sales tax collection, is expected to increase.”

Kopakopa further explained that ZRA does not seem to have the capacity to collect enough revenue through income tax, as it depends on how sophisticated a firm’s accountants are. He added that ZRA does not have its accounting standards for tax purposes but relies on international accounting standards. This means that even when the mines make a profit, they may make a loss for tax purposes because of the way they do their accounting.

However, if production goes up due to the resumption of work at Mopani and KCM, the tonnage of copper production will go up, and mineral royalty tax, which is based on sales, will help boost revenue collection.

Kopakopa noted that the mining sector is the major area where ZRA can capitalize in terms of revenue collection. The key is the increase in copper production because sales tax is difficult to manipulate since the amount of copper sold on a particular day is known.

“Income tax depends on how sophisticated the accountants of a firm are because the financial reporting standards give a lot of alternative treatment of the items or expenses. So a clever accountant would treat an expense in a way that will help him reduce the tax liability” said Kopakopa. He said ZRA does not have its accounting standards for tax purposes but relies on international accounting standards. “So even when the mines do make a profit, they will make a loss for tax purposes because of the way they do their accounting,” said Kopakopa.

He also discussed the Export Tracking Framework by the Bank of Zambia (BOZ), which he believes will be of help in the collection of revenue. The framework will ensure that all exporters who were not paying taxes will begin paying, thereby increasing revenue collection.

He added that the Zambian government may need to take measures to ensure that the mining sector returns to full production capacity to achieve its revenue collection target.

Additionally, ZRA may need to explore other avenues to increase revenue collection, especially in areas where it has the capacity to capitalize on, such as the mining sector.

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Economist has warned that the Zambia revenue

Markets

Zambia is currently facing a major economic crisis as inflation rates continue to soar, causing financial strain on families and businesses.

According to the latest statistics obtained by the Zambian Business Times, the annual inflation rate has hit an alarming 13.5 percent in February 2024, up from 13.2 percent in the preceding month.

This means that on average, prices of goods and services increased by 13.5 percent between February 2023 and February 2024. This development has been mainly attributed to price movements of selected food and non-food items.

The continued rise in inflation is a major concern for families who are already struggling to make ends meet.

According to the official statistics obtained by the Zambian Business Times – ZBT, from the government’s statistics Agency Zamstat, of the overall 13.5 percent annual inflation, Lusaka province contributed the highest at 3.9 percentage points followed by Copperbelt which contributed 2.7 percentage points. Central and Southern Provinces contributed 1.7 and 1.4 percentage points respectively while Northwestern province had the lowest contribution of 0.5 percentage points.

Meanwhile, the overall monthly inflation for February 2024 was recorded at 2.2 percent from 2.1 percent recorded in the previous month. This outturn was mainly attributed to price movements in selected food and non-food items.

The Zambian government has since been urged to take immediate action to control inflation and ensure that the people of the country are not burdened with rising prices. Failure to do so could result in a further deterioration of the economy and an increase in poverty levels.

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Zambia is currently facing a major economic

Markets

The proposed Export Proceeds Tracking Framework by the Central Bank of Zambia – BoZ, has been met with mixed reactions from various stakeholders.

While some have praised the initiative as a step towards promoting transparency and accountability in the country’s export sector, others have raised concerns over its implementation with a possible negative impact on the economy if the directive is to fail.

Economist Yusuf Dodia has warned that the Export Proceeds Tracking Framework may face opposition from multi-national companies operating in Zambia. In a recent interview, Dodia expressed his concerns that some of these companies may resist the framework in order to protect their profits and avoid scrutiny.

Dodia noted that the Export Proceeds Tracking Framework requires exporters to repatriate their export proceeds back to Zambia within 90 days of shipment, in order to promote transparency and prevent capital flight adding that this may not sit well with multi-national companies who may prefer to keep their profits offshore.

Dodia emphasized the importance of the Export Proceeds Tracking Framework in promoting transparency and accountability in Zambia’s export sector. He called on the Central Bank to engage with all stakeholders and address their concerns in order to ensure the successful implementation of the framework.

Dodia explained that the successful implementation of the framework will see the local currency gain resilience in the second quarter of the year after the country realizes more forex income through the Export Proceeds Tracking Framework.

Speaking in an exclusive interview with the Zambian Business Times –ZBT-, Dodia said what is being seen now is a very strange phenomenon noting that the kwacha is very strong in the period of November and December. He said this is because all the country’s big investors such as the mining sector and large multinational companies bring in a lot of money during that period as they have to pay a lot of bills, year-end taxes, renewal of contracts, and renew insurance policies among others. “One expects that November to December is when the kwacha becomes stronger because there is abundance of foreign currency, but we did not see it last year.” said Dodia.

He said this may be because the government had earlier announced that it was to implement the Export Proceeds Tracking Framework which is a regulation demanding that all exporters bring their export earnings into Zambian banks.

“Since Zambia’s economy is heavily dominated by the large exporters comprising of the mining sector, cement producers, sugar producers, and other commercial farmers, it appears that because these large institutions, these large producers, these multinational companies were unhappy about the introduction of this new framework that they decided to hold back on bringing in money to the Zambian economy,” said Dodia. He said this may have contributed to the deterioration of the Kwacha right into January.

He said companies do not want to be monitored as closely as the government would like and do not want to show how much money they are making, but rather keep their money abroad. He however noted that for the interest of the nation, the framework tries to recapitalize the Zambian economy so that it can grow. “If this speculation holds any water, it means as a nation we are being held to ransom by the large multinational companies. They are holding us by the throat, they are forcing us to abandon this Export Proceedings Tracking Framework” said Dodia.

He likened this to the experience in 2013 when the statutory instrument number 15 of 2013 known as the Balance of Payments Monitoring System which had a similar effect was put in place and only implemented for three months before it was revoked by the minister of finance. He said it might be the same story playing out by large exporters trying to squeeze the government to withdraw the framework in order to continue taking advantage of an economy where monitoring and transparency are at a minimum.

Dodia said it is important that the government is steadfast and stays the course without losing focus. He said if the framework is strictly implemented, there will be positive change in the next few months. “But whether the government has the strength and the resilience to stay the course is the issue which might be difficult,” said Dodia.

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The proposed Export Proceeds Tracking Framework by