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Markets

The Bureau de Change Association of Zambia has disclosed that players in the market are worried and unconfident about the current market sentiment thereby withholding dollars from the market.

The Zambian kwacha has continued to depreciate against the United States US$ dollar, a situation that has heavily contributed to the country’s economic instability.

The Zambian kwacha has depreciated by about 30 percent from about K18 in January 2023 to over K23 as of mid-November 2023.

Speaking in an exclusive interview with the Zambian Business Times –ZBT, the association president Paul Kalumba said this is because the market sentiment is not positive as compared to the beginning of the year thereby causing doubt among the different players who are hesitant to inject their forex into the local economy.

Kalumba explained that there are players in the market who import and export and that if these players have a positive feeling that the economy is moving in a positive direction, they release dollars to the market but that has not been the case. He also noted that if they feel the market is moving in a negative direction, they withhold the dollars. He said by withholding the dollar scarcity is created in the market causing the rate to go up.

“The person who is demanding the dollars has to pay more because it is now scarce on the market, meanwhile the person who has the dollars, because of lack of confidence in the market holds the dollars, and as the rate keeps going, will continue to hold them hoping to get more kwacha for the same dollar” said Kalumba.

He noted that for a country’s exchange rate to improve there must be production and export adding that the more items are exported, the more forex is earned and that the more forex is available on the market, the more the kwacha gains.  

Kalumba noted that Zambia’s biggest export is copper and that the country has this year recorded the lowest production of copper in fourteen (14) years. He said this entails that the amount of forex coming into the country is very low with high demand.

He further added that during the final quarter, demand also goes up because other industries usually ask for forex as there are non-productive sectors such as the ordering of fireworks for the festive season, and that despite such being non-productive; forex is needed to be able to order them. “So the demand is huge because people are preparing for the festival season thereby increasing the demand on the already scarce currency.”

He said the real solution is to quickly get Mopani and Konkola Copper Mines – KCM operational for it to be producing, exporting, and earning forex.

Kalumba mentioned that there was a lot of good feeling about the UPND government and reaching debt restructuring adding that people thought money would start flowing when these come into play which has not been the case.

He noted that MoUs are still being signed, and negotiations are still ongoing. He said servicing debt puts strain on the country, and that as long as the debt relief is not secured, the country is in trouble.

Kalumba however said he is positive that Zambia will soon get the relief. “It has taken time, but the time we have lost is not in vain. I am positive that it will become steady not in the too distant future.” He added that if the mines get back to operation it will bring positivity as it will increase the country’s production.

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The Bureau de Change Association of Zambia

Mining

The annual Copper production has dropped from 560, 000 to now about 500, 000 in the third quarter Q3 of 2023 representing about 10 percent.

The continued decrease in copper production has been a hot topic in the mining industry. While some experts believe that the low investment in the sector is to blame, others argue that there are deeper systemic issues at play.

Some analysts argue that the industry has been too reliant on government subsidies and tax breaks, which have shielded it from market pressures and prevented it from making the necessary changes to remain competitive.

They argue that a more market-driven approach is however needed to stimulate investment and innovation in the sector to improve production.

The production levels had even during the first half of 2023 declined by about 15 percent to 321, 778 metric tons from over 365, 042 metric tons produced within the same period in the previous year of 2022.

Zambia’s Copper production has continued to decrease a situation that has had serious implications on the economy, as copper is such an important commodity in economic development.

According to a consolidated copper production report obtained by the Zambian Business Times –ZBT, Zambia’s Copper production during the Q3 of 2023 has further declined by about 10 percent to 515, 11.37 from 565, 806.92 metric tons produced within the same period in the previous year of 2022. This trend goes against the New Dawn Administration’s target to rump up Copper production to over 3 million tons in 10 years.

The continued drop has been expected after continued delays in resolving production challenges and sourcing for short-term funding at both Mopani Copper Mines – MCM and Konkola Copper Mines – KCM to hold down optimum production levels, and the decreasing productions in other large-scale mines.

Many businesses that rely on copper for their products have been struggling to stay afloat due to this decreasing copper production.

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The annual Copper production has dropped from

Lifestyle

The ACLE Net Zambian Center for Lightning Information and Research Organization (ZACLIR) has charged that the government is moving at a snail’s pace towards supporting lightning safety awareness campaigns across the country.

In recent weeks, Luapula Province has experienced a distressing surge in lightning-related fatalities, which have so far claimed the lives of over nine people this year.

Speaking in an exclusive interview with the Zambian Business Times – ZBT, director of ACLE Net Zambia (ZACLIR) who is also a Scientist in lightening research Foster Chileshe Lubasi said that for the past three years now, her organization has been trying to work with the disaster management and mitigation unit (DMMU) to carryout lightning safety awareness campaigns in every part of the country but the response from the unit has not been encouraging.

Lubasi said that currently, ACLE Net Zambia (ZACLIR) is in the process of planning how best the organization can effectively commence with the campaign hoping that when they do so government will come in.

She added that the organization is also carrying out a research project with Witwatersrand University in South Africa aimed at studying indigenous knowledge on lightening because the aforementioned university has better equipment and their lightening research labs are more established.

“The challenge that we are currently facing is that the government is not saying no but they are also moving very slowly into supporting us so that we can do lightening safety awareness campaigns in every part of the country. We have been trying to work with DMMU. If you go to DMMU you will find hundreds of our letters there. They keep postponing dates for round table talks of which it’s now been 2 to 3 years. We’ve been trying to get the government and the corporate world into supporting us so that we can do lightning safety awareness campaigns in every part of the country because that’s the very first step basically when you look at those two children who were playing in the house when it was raining, there were supposed to be doing so when it was raining especially when there are lightning and thunderstorms. After all, if lightning strikes, it has potential voltage rings and if you step on those you are gone,” she said.

“Right now we are in the process of planning so that we think on how we can effectively start this work hoping that when we start with the campaigns government will come in but right now government is government and it hasn’t been very encouraging. Currently, we have a research project which we are doing with Witwatersrand University in South Africa where we want to study indigenous knowledge because they have better equipment and their lightning research labs are more established,” said Lubasi.

Lubasi revealed that before the country even talks about what needs to be put up for lightning protection, people need knowledge on how they can protect themselves.

She advised that people must ensure that lightning protection systems are incorporated into their buildings to avoid lightning-related deaths.

She added that there is a need for government to advocate for the ban of hats in rural areas which are at a higher risk of being struck by lightning.

“So we advise people to sit in one place and not sit on the floor. We also advise people to sit in an elevated position and put their legs together and not spread them, not take their bath while it’s raining, and not lean against the wall because if lightning strikes your house, the lightening current goes down through the walls and depending on the magnitude of the voltage that strikes your roof, it can jump from the roof down to the ground. So people need to know all those things but they can only know if we do lightening awareness campaigns. Before we even talk about what we can put up for their lightning protection, people need knowledge on how they can protect themselves. Lightening protection systems must be part and parcel when people are seeking approval of building their houses they must ensure that lightening protection system is incorporated and it must be appropriate for the size of the house,” she said.

“For the villages, the other thing we need to advocate is that the government should ban hats. The government must insist that everyone builds a bigger house because if your house is too small and lightning strikes your house, electromagnetic signals are everywhere which makes it difficult for one to escape. We are not talking about big high-cost houses but affordable bigger houses. What is needed are bigger houses with space where people can put chairs unlike small houses where one is unable to put a stool in there,” said Lubasi.

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The ACLE Net Zambian Center for Lightning

Tech

The turn around strategy for the state owned telecommunications Company has taken longer than expected as no announcement has so far been made regarding its state of profitability.

Zamtel has for long been in a state of unprofitability, and concerns have been raised from concerned stakeholders over its lack of ability to bring dividends from its operations. Rumors of having the company sold, and privatized had surfaced sometime last year, but later dispelled by the permanent secretary for Science and Technology Dr. Brilliant Habeenzu who said a solution would be found together with the private sector through the Public Private Dialogue.

Dr. Habeenzu had mentioned to ZBT that Zamtel had continued to make losses, but assured that the ministry is working on changing the situation, noting that government has plans to making such entities profitable and sustainable.

It was also mentioned that Zamtel needs about $260 million for its recapitalization. It has been over a year since then, but the responsible minister Felix Mutati has told the public through ZBT that a roadmap for the telecoms company will provided next week.   

The Minister of Science and Technology Felix Mutati has however promised to give a roadmap on the matter concerning Zamtel emanating from concerns of it being unprofitable or loss making.

In an exclusive interview with the Zambian Business Times –ZBT, Mutati noted that the operations and profitability of Zamtel is a concern that has always been present for a long time now. “What I can tell you is that get in touch with us next week, then we will give you a roadmap” said Mutati.

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The turn around strategy for the state

Lifestyle

The Zambia Consumer Association (ZACA) has projected that Zambia is likely to have malnourished people due to the high cost of living.

According to the October report of the Jesuit Centre for Theological Reflection – JCTR, the cost of living for a family of five in Lusaka has increased to K9, 294.76 In comparison to the recorded figure of K9, 146.06 in September 2023 which signifies an increase of K148.70.

The report also revealed an increase in food items such as roller mealie meals, beans, kapenta, and charcoal and a decrease in fruits such as mangoes, oranges, and apples.

Speaking in an exclusive interview with the Zambian Business Times – ZBT, ZACA executive secretary Juba Sakala said that due to the high cost of living, some people will be forced to forgo nutritional food stuffs and reduce the number of times they have their meals which will be a threat to their nutrition.

ZACA noted that the high cost of living will also force people who are unable to afford nutritional food to resort to unhealthy food.

He added that due to the anthrax outbreak, the country is also likely to see people buying cheap meat products which might hurt their health.

Meanwhile, Sakala urged consumers to do away with meat products and buy other alternative food products following the increase in anthrax cases.

“This increase of k150 will hurt consumers because we know that now, the people who used to get a certain amount of money have to do more for them to reach that amount. Unfortunately, three-quarters of the people are not even half of the food basket. That will harm consumers because we can see that some people will start forgoing some of the things for them to live to the next income meaning that people will be able to reduce how many times they have their meals and the type of food people will be buying which will be a threat in the sense that we are bound to have malnourished people because people won’t be able to afford food that have higher levels of nutrition. Also, we are looking at a situation where if people have one meal which is not fully balanced then we are bound to have malnourished people because nutritional food is expensive and people cannot manage to buy it so they resort to food which has less nutrition,” he said.

“It’s a worry and fear to all of us because due to the anthrax outbreak, people won’t be buying beef, pork, and goat meat now, as a result, we are bound to see that these types of food will be left and it will become cheaper. So the fear is that since most people’s incomes are low, they might start buying cheap beef which might harm their health. So we just hope that the situation doesn’t get to that level but our call as ZACA is we are urging the people that with the little that they have, let them do away with meat products like beef, pork, and goat meat. Let them look the other way by buying other food products such as fish, chicken, kapenta or beans although these food stuffs might be expensive for them and that is the worry that we have, “said Sakala.

“We hope that government will work round the clock to see to it that this beef issue is really stopped and these shops put in meat that is free from anthrax and also be able to ensure that the cost of living goes down so that those people who have less money can afford nutritional food,” said Sakala. 

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The Zambia Consumer Association (ZACA) has projected

Tech

The Examination Council of Zambia – ECZ, has denied claims that they had set the examination questions for the outgoing secondary/primary pupils beyond the legal curriculum standard a situation which is alleged to have angered some pupils resorting to the damaging of school properties.

There have been high-level allegations pointing to the Examination Council of Zambia (ECZ) of setting exams that go beyond the curriculum standards, which has caused violence among some students.

According to sources, some students have expressed frustration with the level of difficulty of the exams, claiming that they were not adequately prepared for the content a situation they feel may have led to some pupils resorting to damaging school property out of anger.

The situation has however raised concerns among parents and education stakeholders, who are calling for a thorough investigation into the matter. They are also urging authorities to ensure that students are adequately prepared for exams to avoid a repeat of such incidents in the future.

In response to the accusations, the ECZ has exclusively told the Zambian Business Times – ZBT, that all exams are set in accordance with the curriculum standards and that they are regularly reviewed to ensure that they are up-to-date and relevant.

In a recent development, a fire alleged to have been lit by the aggrieved ex-pupils, swept through parts of Kamwala Secondary School, burning the head teacher’s office, a school bus, and other important school properties.

ECZ public relations manager Nicholas Nkuwa however said if candidates didn’t prepare for the exams, the Council has no control over that because the duty there is to provide the assessment to candidates which they did. Nkhuwa also emphasized the importance of students preparing adequately for exams and taking responsibility for their own learning.

He therefore condemned the act of burning school properties and urged institutions of learning to ensure that they prepare their learners for ECZ assessments.

“Assessments are prepared to the level of candidates being assessed in this case the grade 12 candidates were given exams that were according to their standard. Secondly, why are they the only ones who have turned out to behave like that in all the schools in Zambia? So if they didn’t prepare for the exams, ECZ has no control over that. Our duty is to provide the assessment, which we did. We condemn that act as well if that is the reason why the pupils behaved like that as it has been alleged, we also condemn that aspect because that is not the way out. I think the way forward is to ensure that all schools just prepare the learners to take the assessments that we prepare as ECZ otherwise for us, we do not set any exams that are outside the curriculum that has been set for this country. Of what benefit is it for us to bring things that are not of the standard of learners,” he said.

“We don’t pick things from anywhere, there’s a teaching and learning curriculum which we follow. So pupils should not just behave otherwise because they have failed to prepare adequately for these assessments and they want to derail our achievements. Basically what we should all be fighting for is to ensure continued Excellency and credibility of our assessments but the question we continue to ask is if that was the allegation behind the burning of school properties, why were they the only ones who behaved in that manner out of all the schools. So the investigations will tell us the motivation of the people who were involved in that arson action,’ remarked Nkuwa.

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The Examination Council of Zambia – ECZ,

Lifestyle

Defense Minister Ambrose Lufuma has declined to reveal the identity and details of the ZNS officer alleged to have killed a 15-year-old juvenile identified as Chrispin Bunda during an anti-mealie meal smuggling operation.

Recently, the Zambia National Service – ZNS officer in Kankoyo Township of Mufulira district during an anti-mealie meal smuggling operation, allegedly cut short the life of a 15-year-old juvenile identified as Chrispin Bunda after a fracas that resulted from the operation resulting into the shooting of an innocent boy who is now deceased.

According to the police report, the 15-year-old boy was killed after a ZNS officer used live ammunition to disperse people who were obstructing the officers from searching their premises suspected to be harboring mealie meal destined for the Democratic Republic of Congo – DRC.

Speaking in an exclusive interview with the Zambian Business Times – ZBT, Lufuma revealed that the shooting incident is still being investigated and that details of the investigations will be availed to members of the public.

Asked to confirm if it was indeed a ZNS officer who shot dead Bunda, Lufuma retorted that the response to the question was unnecessary information.

“Don’t extract unnecessary information, I have told you what to do, you think you will just say who shot? How do you know? It’s difficult to say. You put it in writing that the shooting is still being investigated and the public will be told.” Remarked Lufuma.

Government leaders have been accused of being incentives to the economic hardships on the ground and the “no money in circulation” complaints which is pushing people into desperation and involved in illegal exports (smuggling) of mealie meal to survive.

The government continues to struggle to provide an enabling environment for local enterprises to thrive, thereby leading to limited to no employment opportunities for citizens.

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Defense Minister Ambrose Lufuma has declined to

Lifestyle

The independent churches of Zambia (ICOZ), have called upon women to stop applying oils such as that of Aunty Dodix to attract men.

Recently there has been a common trend of business people and some social media influencers who have been selling and promoting what they term bedroom products such as honey pot, make him cry powder, and “follow follow rich man magnate oil,” to attract rich men.

Tina Sakala commonly known as Aunty Dodix is among the people who has been selling such products and claims the oil attracts men such as ministers, rich men, businessmen, and engineers among other men.

She also uses her social media platforms to encourages women to bathe, look good, apply the oil, and go to places where rich men are found.

In an exclusive interview with the Zambian Business Times – ZBT, ICOZ president bishop David Masupa said applying such oils might seem to be good for the user at the moment but might have a negative impact in the long run.

Masupa says one of the impacts this oil might have on the user is that the target market for this oil who are rich men might transmit diseases such as HIV and AIDS to the user.

He adds that women should follow a good career path and earn a decent living for the sake of their children and families.

“We want to call upon the same ladies that may be applying such kind of oil such as the “follow follow rich man magnate oil,” that it may seem to be good for you now because the country is in an economic downturn in terms of the standard of living but it will have a negative impact in your life because such kind of men they bring disease such as HIV and AIDS and also your life will never be the same. So as a church leader, I would just advise you to follow a good career path and earn a decent living for the sake of your children and your family,” he said.

Masupa also notes that there is no control in media houses on products being advertised on whether they are fake or capable of corrupting the morals of the Zambian people.

He has since condemned the oil and called on the government to control the promotion and sale of such products in an advert form in some media houses.

“We condemn that oil in the strongest possible terms. When we declare ourselves a Christian nation, it means that our practices should also pertain to Christian principles. We condemn that and I know that it is social media which the government may have no control over but the publication of such on our media houses can be controlled. We have noted with concern and our concern is that there is no control as to what comes to our media houses or whether they know it is fake or will corrupt the morals of the Zambian people. Media houses go ahead to make advertisements even without getting to the truth of such kinds of products and they will affect the moral fiber of the people of Zambia,” said Masupa.

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The independent churches of Zambia (ICOZ), have

Agribusiness

The Ministry of Livestock and Fisheries has promised to eliminate the current fish deficit in the country in 3 years by 2026.

Livestock and Fisheries Minister Makozo Chikote says the country still has a deficit of about 35 metric tons of fish based on 2022 estimates.

Speaking in an exclusive interview with the Zambian Business Times –ZBT, Chikote said the ministry is putting up interventions to enhance production, and that if all the measures that are being worked on are put in place, Zambia will not have a fish deficit within the next two-three years. 

He said to close up the gap, the ministry has introduced the aquaculture intervention, which includes supporting the farmers by providing them with affordable loans through the ZAEDP project. “Farmers have access to affordable loans ranging from K150,000 going upwards, and when it crosses the threshold of K500,000, that is when they would ask for collateral. This is one of the funds that is motivating our fish farmers to help them enhance production” said Chikote.

Chikote disclosed that several people have been trained in the field to ensure that they provide extension services to farmers for them to understand the latest interventions in aquaculture, and make fish farming a business. He added that the ministry is trying to work on reducing the cost of feed, as it has been a challenge in the aquaculture sector.

He further disclosed that fingerling production is another challenging issue noting that for those in Kivuku of North Western Province to get fingerlings, they have to go as far as Copperbelt. “So to transport the fingerlings from Copperbelt to North Western sometimes is a big challenge for our farmers. We are trying to address this by introducing the Aqua pack that we have put in place to facilitate our farmers to have these requirements they need to go into aquaculture” said Chikote.

He said the ministry is looking forward to collaborating with cooperating partners to be able to put up hatcheries. He said hatcheries need to be put up in all potential areas for farmers to be able to access fingerlings.

Chikote also mentioned that the ministry is trying to ensure that the private sector comes on board by producing fish feed at an affordable price. He said if all these measures are implemented and put in place, Zambia will in the next two to three years not have a fish deficit, but instead discussions will be around Zambia being a net exporter of fish.

The Minister also urged fish farmers to tap into the opportunities the government is creating. “Issues to do with the loans of ZAEDP, although this ZAEDP project is winding up in December 2023, we will continue with the revolving fund, because the money that we have given our farmers will be put in a basket as a revolving fund. We want our farmers first of all to take opportunity, to learn, and to understand what is it that they are required of for them to be fish farmers” said Chikote.

He has said the government will always try to make sure that a conducive environment is created for the farmers to excel in the sector.

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The Ministry of Livestock and Fisheries has

Markets

The Bank of Zambia -BOZ has increased the monetary policy rate by 100 basis points to 11 percent from the previous 10 percent in quarter 3.

Speaking at a monetary policy committee -MPC- announcement in Lusaka attended by the Zambian Business Times -ZBT-, BOZ governor Dr. Denny Kalyalya attributed the increase to the persistent inflationary pressures since the last MPC in August.

Dr. Kalyalya noted that inflation rose to an average of 11.0 percent in the third quarter from 9.9 percent in the second quarter. He further noted that inflation increased to 12.6 percent from 12.0 percent in September.

Dr. Kalyalya said that higher food mostly maize and its products, retail fuel prices as well as the depreciation of the kwacha against the US dollar have been major drivers of these inflationary pressures.

While the increase in MPR is a necessary move to control inflation and stabilize the economy, its impact on the economy and ordinary citizens, cannot be overlooked. The MPR is the benchmark interest rate used by the Central Bank to control inflation and regulate the money supply in the economy.

The increase in interest rates means that the cost of borrowing money from banks and other financial institutions will also increase. This move is expected to discourage borrowing and spending, which will help to reduce inflationary pressures in the economy.

On the other hand, the increase in interest rates will negatively affect businesses, especially those that rely on borrowed funds to operate, and further increase the cost of production, which may lead to an increase in the prices of goods and services.

Details to follow…

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The Bank of Zambia -BOZ has increased