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Mining

The mine union has urged the government to announce an investor to take over Mopani and provide the necessary funds to recapitalize the Mine.

Copper Production output at Mopani Copper Mines Plc a multi-faceted mining investment with operations in Kitwe and Mufulira districts of the Copperbelt Province, has continued dropping due to operational challenges caused by lack of investment.

According to the consolidated 2023 half-year mineral report obtained by the Zambian Business Times – ZBT, copper output at Mopani decreased by about ten percent from about 20, 000 metric tons produced in the first half-year of 2022 to now about 17, 000 in the first half of 2023.

At a time when copper prices are at about $8, 100 per ton, the mine has lost over $12 billion in the first half-year of 2023.

Speaking in an exclusive interview with the Zambian Business Times, NUMAW President Saul Simujika emphasized that the government needs to act fast to avoid any negative impact on production.

With Mopani being a major contributor to Zambia’s copper production, any delays or disruptions could have further ripple effects throughout the country’s economy hence the need for the government to take action to prevent any further delays and secure the mine’s success.

NUMAW president said although so many announcements have been made the union still awaits for the final announcement of the investor to take over the Mine.

“So we are hoping that this will be done as soon as possible as you may be aware that Mopani is still limping just like Konkola Copper Mines – KCM.”

NUMAW notes that even when it is believed that there is a thorough process, there is still need for the Government to expedite the process as further delays may have a ripple effect on the economy. “Our word to Government as they are doing these considerations, time is also of essence so that they don’t lose the mine.”

He said, “As for the workers we are still eagerly waiting for the recapitalizing of the mine which is long overdue. Everybody is affected with the delay to recapitalize the mine and we are hoping that the new investor will be announced before end of this year.”

with only a moth left to conclude the year, Government’s promises to have an investor to take over Mopani have not materialized and NUMAW hoped that the new investor will be announced before end of 2023.

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The mine union has urged the government

Agribusiness

Economist Trevor Hambayi has called on government to seriously look at factors contributing to the reduction in the export of agricultural products.

According to the Zambia statistics agency (ZAMSTATS) October monthly report, export earnings from agricultural products decreased by 17.5 percent to k2.0 billion in September 2023from k2.4 billion in august 2023. The major export commodities were other raw cane sugar accounting for 14.1 percent, tobacco, partly or wholly stemmed / stripped (12.5%) and other corn seed (10.4%).

Speaking in an exclusive interview with the Zambian business times – ZBT, Mr. Hambayi said there are a lot of cash crops that the country should be exporting that support the agriculture sector and that Zambia has the capacity to produce them in qualities needed for the export market.

Hambayi noted that government has not done enough in terms of creating a conducive environment to support all farmers and the private sector to maximize the export potential of the country.

He said that it is so unfortunate that as a country driving at export diversification, we are getting reductions in the export of agriculture products.

“We must look very seriously at what factors are contributing towards the reduction in the export of our agricultural products. But also what we do find is that there are a lot of cash crops that we should be exporting that should be supporting the agriculture sector such as soya beans, sunflower, cotton and tobacco. All these particular products that we have, we have the capacity to be able to be produce them in qualities that need the export market,” he said.

“So essentially I think as a country we have not done enough to be able to create an environment that is strong enough to support all our farmers and the private sector to be able to maximize the export potential of the country. It is very unfortunate that as a country that is driving at export diversification from the mining sector to agriculture, we find that we are getting reductions in the export of agriculture products. The second aspect that we also see is that we’ve also been experiencing a reduction in exports from the mining sector because we have not produced as much cooper during the year,” said Hambayi.

Meanwhile, Hambayi noted that Zambia would have achieved a high export of agricultural products because there was a very high demand of maize a few months ago which should have moved to the export sector.

“Technically speaking, you would have thought that in the last few months Zambia would have achieved a very high export of agricultural products because there was a very high demand of maize which we have excess surplus in terms of production which we then should have moved to the export sector. Even though we are speaking about having to be able to put strategies to be able to increase our non-traditional exports driven by the agricultural sector, the numbers are saying that we are actually progressing in terms of achieving this,” said Hambayi.

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Economist Trevor Hambayi has called on government

Agribusiness

The residents of Chienge and Nchelenge have been forced to pay exorbitant prices for mealie meal, which has caused great hardship for many families.

The residents of these areas have been denied access to the cheaper mealie meal provided by the Zambia National Service – ZNS – which has failed to reach their communities, leaving them with no affordable options for this staple food.

The ZNS was engaged to provide affordable mealie meal to the people of Zambia, but its efforts have not been seen by all Zambians.

According to the statistics from the Zambian Statistics Agency –ZAMSTATS, for the month of October 2023, Mealie meal in Chienge, and Nchelenge districts in Luapula province is trading at K370 for a 25 kg bag of Breakfast meal, and K305 for a 25 kg bag of Roller meal respectively.

Many believe that the government should provide more support to the ZNS so that it can fulfill its mandate of providing affordable mealie meal to all Zambians. But for now, the people of Chienge and Nchelenge continue to struggle with the high cost of this basic necessity.

The Luapula Chamber of Commerce attributed the high mealie meal prices to the lack of reach by the Zambia National Service –ZNS- Eagle’s Mealing to the affected areas in the province due to the far flung status of their terrain.

Speaking in an exclusive interview with the Zambian Business Times –ZBT, the Chamber president Emmanuel Musanje said ZNS has not yet spread to those areas, hence there is no competition to help cushion the price of mealie meal. “Cheaper mealie meal from the National Service is predominantly around areas where there is ShopRite outlets, but as soon as they roll out to those areas, others will have no option, but to drop” said Musanje. He said one of the factors is that they have not received cheaper mealie meal from ZNS as result of the distance factor.

It has been almost two months since the Zambia National Service –ZNS- began distributing the Eagle’s Mealing to outlets such as Shoprite to help cushion the high prices of mealie meal on the local market, and address the concerns of the people by providing a cheaper alternative. 

Musanje however noted that there is only one ShopRite outlet in Luapula province which is in Mansa, and one ZNS base. He said there is need for more ZNS agencies around the province in order to arrest the rise in mealie meal prices in the affected areas of the province.   

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The residents of Chienge and Nchelenge have

Tech

Renowned Zambian economist Professor Oliver Saasa has cautioned that the country should not sacrifice domestic investors to a level where there is more focus on foreign investors.

Speaking in an exclusive interview with the Zambian Business Times – ZBT regarding the current high levels of interest rates which are said to be constraining domestic growth, Professor Saasa stated that the drivers of national development are domestic investors.

When asked to comment on the market sentiment that the current high interest or discount rates offered by the government through treasury bills and government bonds are driving up the overall cost of borrowing for domestic and local investors, Prof Saasa admitted that treasury bills and government bonds rates have an effect on the primary movement in the market interest rates.

He also agreed that there is some pressure on the government by the business community that the current interest rates are too high. The internationally acclaimed economist however was quick to state that obtaining interest rates on treasury bills and government bonds can be a double-edged sword.

When interest rates on treasury bills and government bonds are attractive, they invite foreign portfolio investors into the local market who in turn bring in foreign exchange [which is converted into local currency to buy T-bills and bonds which are denominated in Kwacha].

But this same action of having attractive interest rates or yields on T-bills and government bonds will lead commercial banks and other domestic funds to lock in their funds with the government which results in crowding out or “starving off” the private sector. This results in low availability of credit and was available, Credit is availed to the private sector at high-interest rates especially where the rate of non-performing loans is high.

However, when interest rates are too low for treasury bills and government bonds, this will lead to a market drop in overall interest rates and the credit availability to domestic investors will increase. Unattractive rates for t-bills and government bonds will however result in reduced inflows of forex from foreign portfolio investors.

Prof Saasa stated that one of the commitments of government in the 2024 budget is to minimize the overcrowding effect on domestic borrowers and to increase access to credit for the private sector. This is expected to address the high cost of borrowing.

Interest rates have reached astronomical levels in Zambia where private lenders are charging between 10 to 15% per month, annualized to about 120%. Regulated microfinance lenders are applying about 5% interest per month, annualized to 60% per annum.

Commercial banks which have the biggest portfolio of lending to private and domestic investors have also hiked their effective interest rates to about 30%, levels which the business community says have made the cost of doing business in various sectors unprofitable.

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Renowned Zambian economist Professor Oliver Saasa has

Mining

North Western Province Chiefs who had earlier demanded a minimum of 15% share from First Quantum Minerals – FQM, Kalumbila mine revenues, and other mining firms harvesting minerals from their chiefdoms have begged the Government to expedite the assignment so that it becomes a reality program for everyone to benefit.

The Chiefs’ request for a 15% mineral royalty tax is a crucial issue that demands the government’s prompt attention. However, to date, the government has not yet taken a position on this important matter.

Chief Dr. Mumena has since called on the government to urgently look into the matter adding that the request is coming from the communities and not Chiefs.

Speaking in an exclusive interview with the Zambian Business Times – ZBT, North Western Chiefs Representative, Chief Dr. Mumena said the Chiefs have not abandoned the request as they are still focused on getting the 15 percent mineral royalty tax they requested from the Head of State President Hakainde Hichilema during the ground-breaking ceremony for the enterprise Nickel Mine in Kalumbila District of North Western Province.

In July last year 2022, Chiefs in North Western Province who are the original and rightful custodians of the wider community interests of the people of the province, requested the government under President Hakainde Hichilema to review the Mining Policy to include provisions where 15% of proceeds from Mining firms will remain in host Provinces.

 “We have not received a position on this matter but we are still optimistic that the Government is going to respond affirmatively to this request because as we said we are looking at communities growing from local resources which is also a Government program. And so this is going to help to alleviate poverty, lift the people’s living standards, help communities feed themselves.” Said Dr Mumena.

“We made our submissions and it’s a waiting game so we are waiting for the government to finalize and tell us how far they have gone with the request that we made from the Province.” Remarked Chief Dr Mumena.

He reiterated that this is not just about one province it is about all other provinces wherever there are God-given resources the law should be the same.

“So it is not for just one Province like the North West but for everyone because I believe that every Province actually has some content of mineral resources and mineral deposits. Others are yet to be discovered so we want a law that is going to embrace everyone.”

Chief Dr. Mumena said that once fully implemented this is going to improve not only by bringing about formal employment but even the informal employment sector is going to be enhanced so we looking at this from the developmental agenda from the grassroots.

“We have not abandoned the plans and remember this calls for policy review registration review and this is what we pushed for when we had the review programs for the Mines and Minerals Act we pushed in that as the province that the 15 percent remains in the province and also remains with the chiefdoms that are hosting the investments. So that’s what we have pushed into the program that we had for the registration review Mining Mineral Act and so we are still looking forward to that being captured, it is still our stand.”

Asked why the Government has delayed giving a response, Chief Dr. Mumena said, “I may not know exactly what has caused the delay on the part of the Government but we do know that Government programs take time and that they are also systematic so we are optimistic that we are going to receive a positive result on this assignment and I will just implore the government to look at this issue urgently. This is already the Government’s call as they are also looking at how best they can help communities and improve rural development.”

Dr Mumena noted that when that money remains in provinces it is going to be used for infrastructure development, boost agriculture production, boost livelihoods, bring in rural electrification, build the road network around communities and better housing among many others, and bring in home-grown solutions.

“We think that this is also the money that is going to be used to boost and enhance food production and at the same time be able to participate in the programs that are coming in such as the Lobito Corridor which runs through our province and we think that the local people can only meaningfully participate when they have the power and the money.”

Asked if there is a timeframe set for this important request to be realized, Chief Dr. Mumena said, “Right now we have requested meetings with the government at the highest level and this is one of the items on the agenda that we are going to look at so the request has already been pushed in and the outcomes so far are that the Chiefs are still Focused on the request which we made because this is not just about the Chiefs, when we are talking about the Chiefs we are talking about the communities and the chiefs are just institutional leaders representing the communities. So we really talking about the voice of the people and trumpeting the voice of the people that over and above are voiceless so they come out through their leaders and the call by the Chiefs is actually a Leadership assignment because we know what is on the ground, we have the data on the fingertips, we know what can be developed there even the participation of our people in the small scale and large scale mining we also looking at the participation of Zambians that will be able to come on board and develop large scale mines.”

“So far with the exception of Dr Sixtus Mulenga who has developed a mine in Luapula, we have not seen any Zambian that has been involved in developing a mine as the rest that are into mining the majority of them are there as employees when we want Zambians that are going to own mines and develop the mines and control the proceeds of trade and at that stage we are going to say we are creating Zambians that are billionaires and obviously what they will be doing will scale back into the communities where they hell from.”

“This is our prayer that Zambians get involved meaningfully in mining and not just there as employees and observers. So we need to be into proper Zambians that are going to be in the mining sector, industrial sector, manufacturing sector, and agriculture sector, but what do we need, seed money and part of that seed money also goes with the structures that are going to be developed with the 16 percent mineral royalty tax remaining in the particular provinces.”

He added that the request is holistic and is going to impact positively on economic development education, health, and everything else so we are looking at a big picture.

“I can only implore the Government to expedite this assignment so that it becomes a reality program for everyone besides we currently have a government that is looking at economic enhancements and this has been exhibited through the release of more money through the Constituency Development Fund CDF and NAPSA partial withdraw so we feel that it’s the other side of the coin where we are still looking at the unlocking of resources to the citizenry so I could only implore Government to expedite on this assignment because this is about political will, leadership, we cannot look at developing these natural resources or indeed extracting them if we don’t have the resources so the resources we are talking about are therefore resources that are going to unlock the great potential that is around us and seats within us.”

Chief Mumena also has appealed to the media institution to continue helping with trumpeting the need for unlocking the resources to help communities process the natural wealth that God has richly endowed them.

The government should carefully consider this request and take a proactive approach in engaging in constructive dialogue with the Chiefs as this could lead to a mutually beneficial solution that supports sustainable development and promotes economic growth which will have a significant impact on the local communities and the mining industry.

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North Western Province Chiefs who had earlier

Markets

The Zambia Consumer Association ZACA said the increase in the license fee for commercial Kapenta Operators from K3, 333 to K4, 000 about 40 percent will only increasing further the cost of doing business in Zambia.

In the 2024 National Budget presentation Finance and National Planning Minister Dr. Situmbeko Musokotwane proposed to increase the license fees for commercial kapenta operators to K4, 000 from K3, 333 last revised in 2011.

ZACA Executive Director Juba Sakala has questioned as to why such an increase has been made in light of the prevailing economic challenges that the people are facing. He said kapenta is the livelihood of many of people, and that it is already expensive on the market, hence an increase in the fee will hike its price.

Speaking in an exclusive interview with the Zambian Business Times, Sakala said the reparations of such decisions will cause a further increase in food items, and the cost of living will never go down, but keep getting higher.

“No one will get a license of kapenta at k4, 000, and sale a bag of kapenta at k2, 000. Everyone wants to make profit, because the cost of doing bringing the kapenta from the source to the seller is so high” said Sakala.

He said the cost of doing business, and production is so high in Zambia, and is the root cause of the high cost of living causing people to barely make it a day.

Sakala said government should look at the matter, and possibly consider bringing it down, or hike by minimal amount so as to avoid constraining the operators, and consumers.

He said it does not matter as to when it was last revised, the increase should at least be by K300. He said as much as it was revised about 12 years ago, it is important the current situation is considered.

“The increment could be necessary, but let us look at what percentage we can put so that it does not have a negative impact on other issues around,” said Sakala.   

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The Zambia Consumer Association ZACA said the

Markets

The move by governments to increase the Constituency Development Fund – CDF – has been called into question by many especially since it seems to be coming at the expense of efforts to cushion fuel prices.

Although others have argued that it could be a political move aimed at winning support from certain constituencies, it’s important to consider the potential impact of these decisions on the wider economy and the public.

Economist Naylor Kopakopa has expressed displeasure over the government’s decision to increase the constituency development fund –CDF- from the current 28 million Kwacha to 30 million Kwacha at the expense of cushioning the fuel prices which has a direct impact on the economy.

Finance and National Planning Minister Dr. Situmbeko Musokotwane announced during the presentation of the 2024 National Budget that the CDF will next year be increased to 30 million kwacha from the current 28 million kwacha.

However, Kopakopa noted that more subsidies have been given to CDF and Education which are key sectors, but is of the view that part of that money should have been taken to cushion the fuel price.     

Speaking in an exclusive interview with the Zambian Business Times – ZBT, Kopakopa noted that the country is not meeting its growth target this year which was revised due to various reasons, as well as the inflation target, which may the country to end at a higher inflation rate.

He said the target of 6 to 8 percent inflation target by the Central Bank has been maintained for next, in addition to a target of 4.8 percent GDP growth rate, but has however questioned if the factors that have caused the country to fail to reach this target, not affect it next year, and what is being done to address the negative impact of these factors.

Kopakopa said the prices of goods have now doubled compared to the recent past due to the hiked fuel pump prices which is negatively affecting the majority of the Zambians.

“The economy is not growing, the inflation is growing. Now when you keep the subsidies constant, it means that their value is not as high as you want it to be, and the next thing that you would want to do, is to increase the allocation towards those subsidies so that you buy the same amount of goods that you intended to be buying” said Kopakopa.

He however said because the economy is not growing and has not been taken care of, and inflation growing, there will be no capacity to increase the allocation. He has therefore questioned why areas that have a direct impact on the economy are not being prioritized in order to create the ability to make money, and later allocate it to the preferred area of subsidies.

Kopakopa is of the view that instead of allocating more to CDF and education, part of that money must go to the support of fuel prices to have a more positive impact on the economy, and the lives of the people. “The minister acknowledges that fuel is the driver of economic growth, he mentioned it. But if you recognize that fuel is very important, what are you doing about it, because the oil price worldwide is beyond our control, and we want not to do anything to manage our exchange rates, how do we then grow the economy so that we create more money for subsidies” said Kopakopa.

He said there is no logic in setting very good targets, but almost doing nothing about it. He said it will not be by chance that the targets of inflation, and growth will be achieved, but needs to work for them and invest in them.

He said the exchange rate is the driver of inflation as well as fuel, but wondered what exactly is being done to address them.

He said there was no need to increase the CDF and education subsidies, but instead half of them, and take the money to fuel, and later come back and double the subsidies into education, and CDF when the economy has stabilized.

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The move by governments to increase the

Uncategorized

Mwinilunga Member of Parliament Newton Samakayi says the reopening of the Kasenseli gold mine is likely to face further delays as the matter is now actively in court.

Speaking in an exclusive interview with the Zambian Business Times – ZBT, the area Member of Parliament said for now there is nothing that can be done to reopen the gold mine until the court issues conclude.

According to Mwinilunga Member of Parliament Newton Samakayi, this is with regard to the latest development where the three prominent mining entities, ZCCM-IH Investment Holdings, Zambia Gold Company, and Kasenseli Gold Mine, have taken legal action to request a stay of a recent High Court Order in a dispute over the small-scale mining license of Kasenseli Gold Limited.

PCB Mining Limited had earlier demanded the Ministry of Mines and Minerals Development to immediately re-instate its license no.24988-HQ-SEL, being 375.443 hectares of the Kasenseli gold mine area in its original shape as per the High Court judgment dated September 11, 2023.

High Court Judge, Edward Musona, ordered ZCCM-IH and its subsidiary, Zambia Gold Company Limited, to forthwith transfer the said licence to the rightful owners, PCB Mining Limited.

Samakayi however said the people on the ground are eagerly waiting for the mine to start operating and boost the economy.

I wish that the court process will be concluded quickly so that the way forward is found to begin mining the gold so that the people and the country can benefit.

The Kasenseli gold mine has great potential to positively contribute to the economic development of the region.

The reopening of the mine will not only create employment opportunities for the locals but also contribute to the country’s GDP.

The mine has the potential to generate significant revenue for the government, which can be used for various development projects. Therefore, it is essential to resolve the ongoing court case surrounding the mine’s reopening to ensure its contribution to the economic growth of the area and the country at large.

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Mwinilunga Member of Parliament Newton Samakayi says

Uncategorized

Zambia Air Force (ZAF) instructor and fitness trainer Joseph Mtonga has suggested that Nshima should be eaten once in a while, if possible people should eliminate it from their diet.

According to a research conducted by Lilongwe University of Agriculture (Luanar), Nshima cooked using maize flours and recipes would continue to raise blood sugar levels in the long-term considering high glycaemic load figures recorded.

The report also revealed that food that increases blood glucose level faster after consuming it, is said to have a high glycaemic index.

Glycaemic index is a system that ranks foods on a scale from 1 to 100 based on their effect on blood-sugar levels.

In an exclusive interview with the Zambian Bussiness Times -ZBT, Mtonga noted that In Zambia Nshima is the reason there are lot of diabetic cases.

He alleged that
too much Nshima is also the reason most people have all these potbelly’s around.

He added that in Zambia, cases of diabetes are very high because of people incorporating unhealthy foods in their diet.

Mtonga said in villages it’s rare to find cases of diabetes because people in rural areas don’t only concentrate on Nshima and fast foods but incorporate health foods in their diet and that one way of overcoming diabetes is by having a shift in diet.

He alleged that for farmers, farming is not about the health of the nation but bussiness.

He said cultivating health foods should not be left to farmers alone but people should take it upon themselves and plant health foods for there own benefits.

Meanwhile, Mtonga expressed concern on the culture of exercising in Zambia which he termed as being very poor.

He alleged that in Zambia people hate exercising and feel it’s a waste of time.

He added that in most cases people who exercise are mostly teased by neighbors and friends.

“Sometimes when you jogging, your friends and neighbors will be teasing you and asking you questions like why you are punishing yourself or what are you chasing that you will never catch?. ” it’s because they don’t understand the importance of exercising, ” said Mtonga.

He added that his heart bleeds when he sees people gaining weight but not incoperating exercises in their daily routine.

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Zambia Air Force (ZAF) instructor and fitness

Tech

Mansa airport is undergoing preliminary rehabilitation work to improve its safety and efficiency. The project, which began recently, has been long-awaited by residents and travelers in the area. The rehabilitation works are being carried out by the Zambia Airports Corporation Limited (ZACL), which is responsible for the management of all airports in the country.

Luapula province Permanent Secretary Mighty Mumba has disclosed that preliminary works have begun for the rehabilitation of the Mansa Airport in Luapula Province.

The Mansa the Airport is one of the four airports earmarked for rehabilitation. Other airports include, Mongu, Mbala, and Solwezi airports, with 700.7 million kwacha set aside for all together with the development of Chinsali, Choma, and Kasaba Bay Airports.  

In an exclusive interview with the Zambian Business Times –ZBT, Mr Mumba said the contractor is already on sight undertaking the necessary preliminary works, and are yet to meet to share the scope of works, and discuss on what is contained in the contract that will be executed.

Mumba said that some of the issues that were being highlighted included the absence of lighting. He noted that Mansa airport has not had a lighting system to allow plains to land and take off in the night which will be part of the contract.    

He also mentioned that there was talk of enhancing security around the airport, and putting up of cold storage facilities. “These were the issues that we have been talking about, but in terms of the actual content of the contract, and what is supposed to be implemented now after the contract has been awarded,  I am not preview to it, until after the courtesy call on my office” said  Mumba.  

The Mansa airport rehabilitation works are an important step towards improving the infrastructure and connectivity in Zambia.

Once the rehabilitation works are complete, the Mansa airport is expected to be safer and more efficient, which will benefit both residents and travelers.

With continued investment in key sectors such as aviation, the country is well-positioned to achieve sustained economic growth and development in the years ahead.

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Mansa airport is undergoing preliminary rehabilitation work