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Agribusiness

A close relative to the late Prominent Namwala biggest cattle rancher of Southern Province Teddy Namainga has revealed that the late Namainga has left behind over 4000 herds of cattle worth over K50 million and 28 children.

Teddy Namainga, fondly known Mukamaangwe, Namainga aged 84, died on 25th February, 2024, in Lusaka, after an illness.
Speaking in an exclusive with the Zambian Business Times-ZBT, Auster Chikwaye one of the close neighbors to the late Namainga also revealed that the late Namainga has also left behind 28 children and 35 dependents.

Chikwaye expressed sadness to Namainga’s demise adding that his death has come as a shock to his children, his dependents and the entire Southern Province.

Chikwaye said that Namainga’s death will really affect those he has left behind especially those he sponsored in school.

He said that the late Namainga loved upcoming farmers and was a role model to every young man in Namwala district.
He noted that the late Namainga was also a pillar not only at family level but at shimunenga ceremony adding that without him the ceremony will never be the same.

“In total the cattle he’s left behind are about 4000 herds of cattle. He had a lot of dependents who helped him to keep those animals. The average price of those animals is about K12,000 per cattle although some of the cattle even go up to K20,000 and K25,000 of which the cheapest can go up to k5,000. Mr Namainga has left behind 28 children and 35 dependants,” he said.
“The death of Mr. Namainga is really a sad thing that has affected his children and his dependents and the entire district because he was a motivation to every young man and he’s one person who loved upcoming farmers. People could learn from him, he was like a role model to especially young people.”

“His death will really affect those he sponsored in school because some might even drop out of school. He was a pillar even at our ceremony called shimunenga ceremony and without him and his animals the ceremony was more less like there was no ceremony. He was our pride,” said Chikwaye.

Meanwhile Chikwaye revealed that Namainga will be put to rest on Friday, 1st March, 2024.

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A close relative to the late Prominent

Mining

Barrick’s Lumwana mine, the second largest copper miner in Zambia has confirmed that they are fully compliant with the the Bank of Zambia – BOZ Export Proceeds Tracking Framework Directives issued in December 2023 as they do not export copper.

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.

Speaking in an exclusive interview with the Zambian Business Times – ZBT, Lumwana Mine Country Manager Anthony Malenga stated that the mine does not export copper but trades locally through other players that have smelters.

Malenga stated that “Lumwana is in full compliance as we do not export. We produce concentrate sold to smelters locally”. Being the second largest copper producer, Lumwana mine has attracted the attention of analysts 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, the Kwacha may post further gains as this balance of payments monitoring tool is expected to bring more transparency and result in more export forex inflows into the country.

The BOZ 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.

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 or banks or financial institutions that fail to comply, which include revocation of their tax clearance certificate and TPIN.

By time of publication, ZBT was still actively 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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Barrick's Lumwana mine, the second largest copper

Mining, Uncategorized

First Quantum Minerals – FQM, the largest copper miner in Zambia with mines at Kansanshi – Solwezi and Trident – Kalumbila has failed to categorically confirm if they are complaint or will proceed to comply with the export proceed framework directive.

FQM’s Public Relations Manager Mirriam Hammond in response to a Zambian Business Times – ZBT enquiry stated that the “reporting [on the export proceeds tracking framework directive] will only be availed at the end of the quarter given the 1st of January implementation date and the 90 days reporting period”.

Hammond further disclosed that “It is still in the early stages and there has been a number of meetings between FQM, banks and BOZ to discuss/clarify details, systems [and] concerns”. Efforts to get direct confirmation from the country manager Dr. Godwin Beene proved futile by press time.

But analysts say, with merely about one month remaining to the end of Q1, FQM may be looking for ways or loopholes to get extensions for compliance as the period remaining is too short.

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.

FQM being the largest copper producer 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, the Kwacha may post further gains as this balance of payments monitoring tool is expected to bring more transparency and result in more export forex inflows into the country.

The BOZ 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.

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 or banks or financial institutions that fail to comply, which include revocation of their tax clearance certificate and TPIN.

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

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First Quantum Minerals - FQM, the largest

Tech

Airtel Networks Zambia Plc has announced the appointment of Hussam Baday as its new Managing Director – MD, following his successful stint as Interim MD.

Baday was appointed Interim MD last September and prior to that appointment, Hussam was the Chief Commercial Officer in Airtel Zambia since December 2021. He also served as the Company’s Marketing Director since July 2018.

Baday takes over from Manu Sood who decided to pursue other personal interests outside Airtel.

In a statement issued and signed by the board chairperson of Airtel Zambia, Katebe Monica Musonda and made available to the Zambian Business Times – by Airtel Head of Corporate Communications, Yuyo Nachali-Kambikambi, Hussam holds a Master of Business Administration from the University of Leicester (UK) and BSc holder in Electronics and Communications Engineering. He also holds a Professional Diploma from The Chartered Institute of Marketing (UK) and a professional certificate in “Behavioral Economics” From Harvard Business School (HBS). He has attended an executive education in Leading with Results from INSEAD (France).

According to the statement, Prior to Airtel Networks Zambia PLC appointment, he was Chief Marketing Officer at Sudatel Telecom Group (STG), also he worked in Ericsson and Huawei.

“Hussam has a rich background in successful Commercial strategies, business development, and proper execution that turned around commercial performance. He also serves as an advisory board member at CMO- council Africa. We welcome Hussam wholeheartedly.” Remarked board chairperson of Airtel Zambia, Musonda.

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Airtel Networks Zambia Plc has announced the

Companies

About thirteen (13) Industrial Development Corporation – IDC, subsidiary companies are reported to have incurred losses amounting to over K2.6 billion (K2, 600,986,817) between the economic year 2021 and 2022.

The auditor general report for the financial year ended 31st December 2022, has revealed that the thirteen (13) companies incurred losses amounting to K746,084,000 and K1,854,902,817 in 2021 and 2022 respectively together totaling about K2.6 billion.  

Of the 13 subsidiary Companies, included, the Zambia Consolidated Copper Mines -ZCCM Investments Holdings, Zambia Railways, Infratel, Times Printpak, ZESCO, Zamtel, and Zambia Airways Limited.

Others include, Indeni Petroleum Limited, Superior Milling Company, Zamplam Limited, Mulungushi Village Complex Limited, Mukuba Hotel Limited and NIEC Business School Trust.

The report further revealed that consequently, out of the thirty (30) State-Owned Enterprises (SOEs) in which the IDC holds 62.28 to 100 percent shareholding, only five (5) declared dividends amounting to K61,334,600 and K62,012,587 in 2021 and 2022 respectively.

“During the period under review, IDC issued ten (10) loans amounting to K170,222,517 to six (6) of its subsidiaries. The repayment periods ranged from fifteen (15) to sixty (60) months. However, a total of K196,421,914 including interest remained outstanding as of 31st December 2022.”

Meanwhile, an examination of financial and other records maintained at the IDC for the financial years ended 31st December 2021 and 2022 revealed as of 30th September 2023, the IDC had not produced audited Consolidated Financial Statements for the years ended 31st December 2018 to 2022 and no sanctions were meted out on subsidiaries that had not prepared their financial statements.

In addition, eight (8) State Owned Enterprises had not produced audited financial statements for the financial years ended 31st December 2020, 2021, and 2022 as of 30th September 2023.

Corporate governance structures of the subsidiaries have also been hit hard, with six SOEs operating without Boards of Directors for periods ranging from six to eleven months as of 30th September 2023. This situation could have hurt the provision of policy and strategic direction to the subsidiaries.

Further, the report adds that the Approved Board Composition of the Committees – Investment and Portfolio Committee, which provides for seven members, including three co-opted members namely; an Investment specialist/Development Economist, a Senior Banker, and an eminent business person, has not been followed. “A review of the actual composition of the committee revealed that all the members were Directors of the Board, and none was a co-opted member.”

The IDC’s discouraging performance and lack of accountability have raised serious concerns about its ability to manage and regulate the SOEs effectively.

With billions of Kwacha lost and no clear plan to turn things around, it remains to be seen how the government will address this issue and prevent it from spiraling out of control.

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About thirteen (13) Industrial Development Corporation –

Agribusiness

Pork prices are likely to go up after about a 30 percent increase in pig feed prices effective 19th February 2024. Pig feed prices have gone up by a significant K210 from K750 to K960, a situation which is likely to affect the cost of doing business for pig farmers.

According to a pricelist seen by the Zambian Business Times – ZBT, the retail price for a 50 kg bag of complete Premium Pig Creep Pellets has gone up by 28%, while the retail price for a 50 kg bag of complete Premium Pig Weaner Pellets has increased by 18%. Standard pig feeds have also seen a significant increase in prices. For instance, the price of a 50 kg bag of Pig Grower Pellets has gone up by K22, while Pig Grower Mash has increased by K75.

The increase in pig feed prices is expected to have a considerable impact on pig farmers in Zambia as the cost of doing business for pig farmers is likely to go up, and this may lead to an increase in the price of pork. This increase in pork prices may have a ripple effect on consumers, who may have to dig deeper into their pockets to purchase pork products.

The increase in pig feed prices comes at a time when the cost of living in Zambia is already high, with many families struggling to make ends meet.

For complete standard pig feeds, the price of a 50 kg bag of Pig Grower Pellets has also gone up by K22 from K415 to k437 while Pig Grower Mash has gone up by K75 from K365 to k440. Pig Finisher Pellets and Pig Finisher Mash feed prices have also gone up to K415 for finisher pellets and K425 from K375 for pig finisher mash respectively.

Meanwhile, Standard concentrates for pig weaner, grower, and finisher concentrates have gone up from K580 to K650, K445 to K491, and K425 to K485 while pig sow and boar and pig lactating concentrates have gone up from K430 to K475 and K515 to K555 respectively.

For value concentrates, value pig grower and finisher feed prices for a 50 kg bag size have gone up from K420 to K455, K380 to K425 while the value sow and boar and the value lactating sow have gone up from K395 to K470 and K475 to K555 respectively.

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Pork prices are likely to go up

Tech

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

Mpulungu Harbour Corporation Limited (MHCL), is a company wholly owned by the Industrial Development Corporation (IDC) operates Zambia’s only water-based Port. The Port opens up the country to a regional market made up of Eastern Democratic Republic of Congo, Burundi and Western Tanzania, extending further to Rwanda and South Sudan.

MHCL is in the business of facilitating cargo movement that is imported or exported through the Lake Tanganyika Transport Corridor. Various cargo such as cement, sugar, coal, other construction materials and frozen foods like chicken or fish transit through the Port.

According to the audit findings seen by the Zambian Business Times – ZBT, the reduction in profit was mainly attributable to a reduction in cargo volume passing through the Port from 231,000 metric tons in 2021 to 185,000 metric tons in 2022.

The auditor general’s reports also revealed that, MHCL failed to meet its targeted revenue in 2021 by over 1 million representing 2%.

The report further revealed that in 2022 the company’s situation worsened as the company failed to meet its budgeted targets by over 17 million representing 28%

“The company’s Profit reduced by 93% from K4, 935,431 in 2021 to K363, 419 in 2022. The reduction in profit was mainly attributable to reduction in cargo volume passing through the Port from 231,000 metric tons in 2021 to 185,000 metric tons in 2022,” the report revealed.

“MHCL projected to raise amounts totalling K68, 134,567 in 2021 and K62, 617,563 in 2022 through provision of various harbour and port facility services. However, a scrutiny of the financial statements and other financial documentation revealed that the company failed to meet its targeted revenue in 2021 by K1, 218,778 representing 2%. In 2022 the situation worsened as the company failed to meet its budgeted targets by K17, 483,326 representing 28%,” revealed the report.

The auditor general’s report findings also revealed that during the period from 1st January 2021 to 31st December 2022, MHCL also failed to meet its income budget of over 11 million.

The report further revealed that MHCL revenue decreased from K66.9 million in 2021 to K45.1 million in 2022.

“During the period from 1st January 2021 to 31st December 2022, the Corporation had a total income budget of K130, 752,130 out of which amounts totaling K119, 188,585 were realized resulting in a negative variance of K11, 563,545. Revenue decreased from K66.9 million in 2021 to K45.1 million in 2022; whereas other income increased from K3.2 million in 2021 to K3.8 million in 2022,” revealed the report.

The audit finding’s also revealed that MHCL’s turnover ratio declined from 1.6 in 2021 to 1.1 in 2022, indicating a reduced asset efficiency.

A company’s asset turnover ratio measures how profitably a company uses its assets to produce revenue. A higher ratio denotes an efficient use of assets while a lower ratio indicates poor efficiency.

“The asset turnover ratio declined from 1.6 in 2021 to 1.1 in 2022, indicating a reduced asset efficiency,” revealed the report.

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The auditor general’s report for the financial

Companies

Concerns are mounting as the much-needed construction of the Lusaka-Ndola dual carriageway continues to face funding delays. The project, which was expected to commence in 2020, is yet to take off, leaving the public in despair.

Road Development Agency -RDA- says the official commencement of the Lusaka – Ndola dual-carriageway is expected to commence in March which is the last extension the authority has given to Macro Oceans Investment Limited who were awarded the contract.

In February, 2023, the New Dawn Government signed a USD 577 Million concession agreement deal with Macro-Ocean Investment Consortium for the financing, construction, operation and maintenance of 327 Kilometers Ndola-Lusaka Dual Carriage Way and the rehabilitation of the 45 Kilometers Luanshya-Fisenge Masangano Road.

Speaking in an exclusive interview with the Zambian Business Times – ZBT, RDA, Acting Communications Manager, Anthony Mulowa said the agency anticipates that the funding will be attained by Macro Oceans Investment Limited within the projected time for the commencement of the project.

According to RDA spokesperson, Mulowa, the concessionaire has until March to seek funding for the project, but could not confirm where the funds will come from.

The Lusaka-Ndola road is a critical transport link that connects the capital city of Lusaka to the Copperbelt province, where most of the country’s mining activities take place. The current road is narrow, poorly maintained, and has become a major hindrance to trade and commerce in the country.

The construction of the dual carriageway has been on the cards for a long time, and the government promised to commence the project last year. However, the delays in funding have stalled the much-needed project, leaving the public unsatisfied.

Mulowa explained that the concessionaire still has only up to March, 2024 to secure funding adding that so far the indications have been positive.

Asked about where the source of funding is coming from and who exactly has delayed the project by not releasing funds on time, Mulowa said, “Am not aware of where they are getting the funds from but remember last time there was an issue with NAPSA so if at all they agreed, they are in business because they have been lending several businesses so if they agree on certain terms there is no problem but at the moment Macro Oceans Investment Limited has not come to us to say where they are getting the funding from and once that is done we will tell the public because definitely, this is a matter of public interest.”

Asked about the assurance that RDA is giving to the public as to whether indeed the construction of this project will commence in March when there have been several postponements and considering the fact that only days are remaining to March, Mulowa said, “We are working around the clock to ensure that the project starts after the rainy season.”

“Remember I said we have given this to the concessionaire so we don’t have much control as we are only the contracting authority so they have to come back to tell us when the funds are ready but it has to be within the given timeframe.”

“But what is so important is that they have been doing reasonable work on site because one thing that you need to know is that we have to create a diversion where cars should pass when the actuall construction start, so I think things are going just well and we are certain that we will attain our desired goal.”

Asked if RDA is likely to postpone the commencement of the construction of the road if the Concessionaire fails again to find funds during the time which has been given, Mulowa said, “We are not looking at that because we have been assured that the funding will be sourced before the time, so we are not looking at failure or whatsoever as far as we are concerned we are on course and the concessionaire is on course and has been giving us positive indications.”

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Concerns are mounting as the much-needed construction

Tech

The Bank of Zambia – BOZ Micro Small, and Medium Enterprises (MSME) Finance Survey report of 2022, has revealed that 97 percent of the Micro, Small, and Medium Enterprises (MSME) which are mostly local enterprises were unable to source for start-up capital from commercial banks and other lending institutions.

The reasons behind this huge failure rate for local enterprises to access capital from banks was due to high-interest rates, limited tailored products and lack of collateral among many other challenges.

According to the MSME finance survey report conducted and released by the Bank of Zambia, Only 3 percent of enterprises were able to source for start-up capital from commercial banks, microfinance institutions, the government, NGOs, and community-based financial institutions such as saving groups leaving out the 97 percent with no option but to source for start-up capital from families and friends.

Small and Medium Enterprises (MSMEs) whose are mostly locally owned businesses are the lifeblood of economies around the world as they drive economic growth, create more jobs, and foster innovation. However, the numerous challenges they face hinder them from growing and providing the much-needed support to the growth of the economy.

The main barriers to accessing credit were high-interest rates, lack of collateral, and low income levels. This has resulted in a situation where many entrepreneurs are unable to start or grow their businesses, leading to a stagnant economy and high unemployment rates. Details to follow…..

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The Bank of Zambia – BOZ Micro

Agribusiness

The Ministry of Agriculture has been caught in violation of the Public Procurement Act –PPA, No. 8 of 2020, which mandates the use of the electronic government procurement system (e-GP) for all public procurement entities, in a bid to promote transparency and accountability. The Ministry has on the contrary issued public tenders manually, defying the law and the spirit of its provisions.

According to two tender adverts from the Ministry of Agriculture seen by the Zambian Business Times -ZBT, interested bidders are being asked to deposit their submissions in the bid box, which is not a transparent way of making submissions.

This has raised concerns about the fairness and impartiality of the tender process, and the possibility of corruption and favoritism.

The Ministry has invited citizen and local bidders for consultancy services for the development of the national irrigation policy and consultancy services for the construction of feeder roads in Luapula and Central provinces. However, in both tender adverts, bidders were instructed to deposit their submissions in the bid box at the Ministry, which is a clear violation of the law.

Speaking in an exclusive interview with the Zambian Business Times – ZBT, Ministry of Agriculture Secretary – Procurement Committee, Anon Madima confirmed that all public tenders are supposed to be done electronically but failed to give a clear justification as to why the ministry has gone ahead to issue 2 public tenders manually.

Madima also dodged the question of whether the ministry got ZPPA authorization to issue a manual tender and justified that the manual tender is meant for people who are not on the EGP system.

” Yes all tenders are supposed to be done electronically but you are going to notice that even when a tender is done on the EGP, there’s also a manual tender that is done and the Ministry of Agriculture is not the first Ministry to issue a manual tender but submission will be done on the EGP,” he said.

“Submissions of expressions of interest have also been put on paper to let people know because it’s not everyone who is on the EGP system. Let’s do this, I’m in the middle of something. Call me in the afternoon,” said Madima.

Officials from the Zambia Public Procurement Authority (ZPPA) have also failed to confirm whether the Ministry got authorization from the authority to issue the manual tenders. The source noted that although the use of the EGP system is mandatory, there have been cases where some public entities failed to publish public tenders on the EGP system.

The sources further added that by May 2024, all procurement entities will be required to use the EGP system

“Sometimes procurement entities do request for a waiver not to use the egp system but I will have to find out whether it was done. I will have to check the records to see what was written and if the Ministry wrote to ZPPA,” the source said.

“There have been some tenders that have been advertised manually although the use of the EGP system is mandatory There’ve been cases where some tenders are not published using the EGP system but come May 2024, all procurement entities will use the EGP system because that is what the law provides. The nonuse of the EGP system should only be for some procurement entities that do not have the infrastructure needed for the EGP system but by May 2024 all procurement entities will have to use the EGP system including all districts in far flung areas,” revealed the source.

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The Ministry of Agriculture has been caught