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Lifestyle

The Zambia Institute of Chartered Accountant – ZICA has warned that if no practical policy actions are taken to tackle the high unemployment levels in the country, the situation will negate the good efforts of providing free education and high quality education to end up producing graduates that will find themselves on the streets and cannot start businesses due to the sticky lending rates and lack of start-up capital.

ZICA President Cecilia Zimba said Government still has a greater role to play when it comes to matters of job creation and therefore should be concerned with the rate at which unemployment is rising in the country.

Zimba said a picture presented in the outcome of the recent recruitment processes is undoubtedly evident that Zambia is faced with a ‘time bomb’ of high unemployment.

She said the evidence available suggests that there is no co-ordination and balance between the education sector (licensing of private colleges/universities), their enrolment practices and the jobs available in the economy.

“There has been a notable over-enrolment in most of the colleges/universities for most of the professions in contrast to what the industry can absorb in terms of job vacancies. We, therefore, implore on government to seriously consider a system of tracking and reporting the jobs in the economy so that skills development is in sync with job demand.” She said.

Zimba Explained that Zambia needs to put in place measures to capture employment data on a timely basis and report periodically in the same manner inflation and policy rates are reported. Employment should be regarded as a key economic variable with a measurable target like GDP, inflation and exchange rate among others.

She warned that if this matter is not addressed urgently, the high unemployment can result in significant economic costs, including lost output, decreased consumer spending, reduced tax revenue, and increased government spending.

Other challenges that may arise from this are reduced investment, lower labour force participation, and increased poverty which may negate everything that government intends to achieve under the economic recovery plan.

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The Zambia Institute of Chartered Accountant –

Mining

Zambia’s ambitious target to increase copper production from the current 830,000 metric tones to 3,000,000 in the next ten years is still uncertain as there seems to be no stringent measures being undertaken to hit the target.

The Association of Zambian Mineral Exploration Companies – AZMEC says although the 3 million metric tons copper production target is doable by 2031, the association is not aware of any exploration project that is currently at an advanced stage and will allow it to come into production before 2031.

Zambia’s copper production for the year had fallen by 5% to around 760,000 tonnes, which is not in line with the New Dawn Administration’s target to increase copper production to over 3 million tons [per annum by 2031.

AZMEC office Manager Kristina Kanche said Zambia has got geological potential to hit the target, however the question remains if it will be possible to do so by 20231.

She said the reason for that is that ramping up of the existing mines could take the country to double the current production to 1.5 mt of copper production per year.

The remainder production could have then come from projects that are currently under exploration status which may require more than 8 years to get to find economic mineralization (that is a mineralized area that meets specific criteria for volume, grade, and orebody geometry), delineate a resource, develop a mine plan and eventually build a mine and start production.

Kanche said the most important aspect that needs to be done for this aspiration to be realized is to demonstrate transparency and efficiency around the mining rights system and procedures, so there is more predictability for all the stakeholders. She said this will in turn increase investors’ confidence and would reactivate exploration activities which are which are required to build the foundations to have more mines in the future.

Additionally, the geological survey could be investing in aerial surveys and mapping to help build the base knowledge that is required for exploration companies to speed up their work.

Having an organised data system available online would be extremely helpful for the initial area selection stage before we move into acquiring exploration rights.

The Association has since recommended that Government should consider undertaking high resolution airbone geophysical surveys (magnetic, radiometric and electromagnetic) across the country to allow for mapping of the underlying geology and generation of conceptual drill targets.

Kanche said there is urgent need for new and more geophysical surveys in the country to increase exploration activities, which in-turn leads to increased mining production.

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Zambia’s ambitious target to increase copper production

Mining

The export earnings from refined copper in April 2023 decreased by 10 percent to K9.9 billion from K11.0 billion in March 2023.

According to official statistics availed to the Zambian Business Times – ZBT, Copper export volumes during the month of April 2023 decreased by 7.6 percent to 57.6 thousand MT from 62.3 thousand MT in March 2023.

Meanwhile, export volumes of refined Copper from January to April 2023 has also reduced by 16.1% when compared to the same period in 2022.

Statistician General Mulenga Musepa confirmed that the cumulative volume of refined copper exported from January to April 2023 was 249.8 thousand MT while that of 2022 for the same period was 297.8 thousand MT representing a 16.1 percent decrease.

Experts says revenue from Copper exports is falling because of the current production struggles in the mining sector.

Meanwhile, Performance of Traditional and Non-Traditional Exports (TE’s) earnings for April decreased by 9.2 percent to K10.0 billion in April 2023 from K11.0 billion in March 2023. In terms of share in total exports, TEs accounted for 66.2 percent during the month under review.

Earnings from Non-Traditional Exports (NTEs) decreased by 14.6 percent to K5.1 billion in April 2023 from K6.0 billion in March 2023. In terms of share in total exports, NTEs accounted for 33.8 percent in April 2023.

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The export earnings from refined copper in

Uncategorized

Corruption allegations arise over early distribution of Urea fertilizer 

Some companies who bid for the supply of top dressing Urea fertilizer for the 2023/2024 Agro season have expressed shock at the reports that one of the connected bidders, Alpha commodities, seems to have already secured the tender and started distribution even before preliminary tender results are processed and announced.

The concerned bidders have accused the Ministry of Agriculture of grand corruption and impunity, stating that Agro Minister, Mtolo Phiri and his Permanent Secretary Green Mboozi to categorically state when this contract to Alpha commodities was awarded.

The sources told the Zambian Business Times – ZBT that there was an international open bidding tender that closed on 18 April 2023 for a total of 120,380 metric tonnes of Urea fertilizer under the Farmer Input Support Program – FISP.

The Agro Ministry Information was that by end of May 2023, the nation would be informed of who the successful bidder was based on the published tender requirements. According to the solicitation documents made available to ZBT, the bidding provided for joint ventures which some foreign and local companies partnered in.

The bidding companies which spoke to ZBT on condition of anonymity stated that they were shocked only to hear that Alpha commodities has already started delivering to some named districts under the same FISP 2023/2024 Agro season.

“When were the contracts awarded, what we know is that the tender is under evaluation”. A check on various media channels as well as at the ministry of Agriculture shows that the tender results have not been announced.

“How do you go about as a government to let Business people to go through a tedious and costly tender process when in the end, you give the tender to related parties? Why waste business people’s financial resources through raising bid security, testing of Urea samples for radiation etc?”.

A check with the Agro Ministry by ZBT has confirmed that the tender process is still under evaluation and that the earliest the ministry would announce is next week if not two weeks from now.

A state owned national TV broadcaster reported and confirmed that Urea fertilizer distribution in Northern and Muchinga provinces has started with over 10,000 metric tonnes already in the region.

The Agro Ministry has been at the center of crisis after crisis with the the previous FISP distribution being chaotic and characterized by corruption allegations, late and no deliverly of Input in some districts.

Corruption allegations have continued to be made on this ministry with no serious follow ups from the Anti-Corruption Commission (ACC). The quality of fertilizer delivered has also been questionable as some regions experience low yields on account of sub-standard inputs which are not subjected to quality control tests.

Some observers and Agro experts have questioned the wisdom in distribution of top dressing Urea fertilizer ahead of Compound D basal dressing fertilizer and seed to small scale farmers who may not have proper storage facilities, Some say it’s a clear indication of blatant corruption and a ploy to creat avenues to dump the product on poor and unsuspecting farmers while the government picks up the tab.

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Corruption allegations arise over early distribution of

Mining

The National Union of Miners and Allied Workers – NUMAW president Saul Simujika has disclosed that the union was expecting a positive pronouncement regarding the direction in terms of Mopani and KCM from the head of state during the latest press briefing.

“Off course there was a fresh assurance to the public by the head of states that the issues surrounding the two major copper mines are actively being looked at and they will be handled soon, but we still expect the that will be done as soon as possible – ASAP.

Simujika stated that the expectation for full resolution of issues surrounding the two large scale mines on the copperbelt is high and we hope that soon, the head of state said is actually soon because we want to see the unlocking of these two giant mines.

“The confidence is there, we know that there are some bottlenecks that needed to be handled especially with KCM but we still request that let that be done as soon as possible so that the two giant mines can also apply some positive energy in terms of contributing to the recovery and growth of the economy of the country.”

The Union President noted that the President talked much on the growth of the economy when the non-performance of the two giant mines is largely negatively affecting the overall growth.

Government announcement on resolving of KCM and Mopani will be a welcome news to the residents of the Copperbelt and the country at large who have been eagerly and patiently waiting for solutions to the challenges surrounding the two giant mines.

Some mining experts say short to medium term interventions need to be implemented even as a long term solution is being worked out.

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The National Union of Miners and Allied

Mining

A mining expert has described the recently held press briefing by President Hakainde Hichilema as falling short of meeting mining stakeholders’ expectations.

Stakeholders in the Mining sector who have been eagerly waiting for solutions to the challenges affecting Mopani Copper Mines – MCM, Konkola Copper Mines – KCM and the mining sector at large have expressed disappointment over President Hakainde Hichilema’s press briefing adding that it didn’t have any tangible on the mining sector, the main lever for resuscitation of the Zambian economy.

Stakeholders are of the view that the main topic of discussion was supposed to be focused on Mopani and KCM as the two giant mines are key to economic recovery.

He stated that the President extensively discussed the need to grow the economy when the non-performance of the two giant mines is negatively affecting the growth.

President Hakainde Hichilema reconfirmed during the press briefing at state house that government has not yet resolved the issues surrounding both Mopani and KCM but assured that government continues to work on actions to close the transaction.

Speaking in an exclusive interview with the Zambian Business Times – ZBT, Mining expert Edward Simukonda said mining stakeholders were hopeful that the President this time around was going to announce that KCM and Mopani issued have been resolved, “we believed that the two mines resolution was going to be the major topic as people have been waiting for so long’.

Simukonda said the mining sector on the Copperbelt is still not healthy because the two giant mines Mopani and KCM are not operating to their full potential and as a result, the even the whole country is losing out, a situation he said leaves one to wonder whether the country is going to hit the pronounced 3 million metric tons copper production target by 2031 when the mining sector is still in a bad shape.

“And am sure all Copperbelt based citizens that were listening to the press conference were hoping to have something positive about the 2 mines being resolved but now it looks like its just more promises, so from our part as mining stakeholders, the conference was not impressive.” He remarked.

About 5 major towns and over 1 million people in Zambia are negatively affected by the continued delay in resolving the two giant mines way forward.

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A mining expert has described the recently

Agribusiness

The Zambia National Farmers’ Union – ZNFU says it is disappointed that soyabeans will not be part of the FRA strategic reserves this marketing season when farmers in far flung areas have embraced crop diversification and the season promises a record crop of soyabeans.

ZNFU President Jervis Zimba has however urged government to allow regulated exports of soyabeans immediately if the prices are to be salvaged.

Government has shown no interest in soyabeans in this year’s crop marketing season stating that there is still enough of the commodity in stock.

In a statement made available to the Zambian Business Times –ZBT, Zimba said the union would like to see a situation where all the soyabeans value chain players are sustained in business and not short-changing the farmer. What good will it be to abandon soyabeans farmers at crop marketing, having oriented them to growing soyabeans as an alternative crop which is also good for the soils in crop rotation?

Zimba said the idea of assuming that there is enough crushing capacity for all the beans should be interrogated with historical facts of dynamics of this value chain because in practice this is not tenable. We invite Government to a constructive consultative meeting on the soyabeans value chain so that together we can agree on pragmatic solutions.

It is a fact South Africa has a huge soyabeans crop implying that the demand in the region for value added products will be subdued. This suggests we should also look at exports of the beans itself if the prices are to be salvaged. The fact that our soyabeans is non-GMO will give Zambia an edge in niche markets which traditionally pay premiums on non-GMO commodities.

Zimba said another key factor to bear in mind is that the crop marketing window is relatively short and as such, we urge government to make timely decisions on exports and send right policy signals to players in the market.

He reiterated that the Union remains confident that the signal set on maize pricing by FRA, will be sustained and reverse the production curve that has been on steady decrease in the last three years. We are encouraged and believe that it is feasible to realize the dream of being a breadbasket of the region.

Zambian soyabeans Farmers have cried foul on the drastic fall of the prices of soybeans on the market.

Some private buyers of the crop in some parts of the country are offering between K5 per kilogram while in other areas buyers are offering as low as k3 per kilogram against last season’s k11 per kg.

A check by the Zambian Business Times in some parts of central Province, established that some private buyers were offering k5 per kg translating into K250 for a 50kg bag of soya grain and k5, 000 per ton.

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The Zambia National Farmers’ Union - ZNFU

Agribusiness

The Food Reserve Agency (FRA) has fixed its maize purchasing price for the 2023 Grain Marketing season at K280 per 50kg bag of white maize which translates to K100 increment from last year’s K180 for the commodity.

FRA however exclusively told the Zambian Business Times – ZBT that it will not purchase soya beans because there is more than enough in the stock but could not state how much is in stock.

And Speaking during the announcing of the buying price for Maize, and Paddy rice, Board Chairperson Kelvin Hambwezya said that the agency targets expects to purchase maize to meet the minimum statutory strategic grain reserve threshold of 500, 000 mt and 1,000 mt of paddy rice.

“You may be aware that the agency had a carryover stock of 652,000 metric tonnes of grade a white maize at the beginning of 2023 and over 400,000 metric tonnes has since been sold to local millers. The agency has 248,772.35 metric tonnes of maize in the national strategic food reserve.” He added.

He said that in arriving at the determined prices for 2023, the agency acknowledged the urgent need to replenish the strategic grain reserves from a dynamic grain market obtaining locally and in the region.

He said the agency has endeavoured among other things to analyse the cost of production for the designated crops indicated above and therefore, prices announced are reflective of the cost of production and specific to what the agency will be offering.

He also stated that other players in the sector are urged to buy these crops as the prices announced are not floor prices but rather FRA prices under the principle of willing seller and willing buyer.

Hambwezya said the agency during the 2023 crop marketing season will make an early entry into the market to ensure that the national strategic food reserves are adequately replenished and farmers are protected from uncompetitive prices.

“As we start this year’s crop marketing season, i wish to start by urging farmers to ensure that they stock a variety of agricultural foodstuff for their domestic consumption. What should be offered for sell to FRA and other players on the market is their excess produce only. This is because national food security begins at household level and ultimately results into national food security. In this regard, we make a strong plea to farmers to secure food for long term domestic consumption and only sell what is excess.”

Hambwezya added that during this year’s crop marketing season, the agency will operate a total of 1,200 satellite depots to provide market access to small scale farmers. “This employment opportunity will result in the engagement of 4,800 seasonal buyers and security guards drawn from the local communities who are mainly youths and women and over 10,000 jobs for various activities associated to the agency’s area of operation.”

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The Food Reserve Agency (FRA) has fixed

Markets

The Bank of Zambia (BOZ) has increased the Monetary Policy Rate (MPR) and in effect lending rates by 0.25% ( 25 basis points) from 9.25 percent to 9.50 percent.

Experts have however warned that the increase will create a very strong upshoot to the business structure across the board.

Speaking during the Monetary Policy Committee Announcement and Press Briefing monitored by the Zambian Business Times-ZBT, Bank of Zambia Governor Dr. Denny Kalyalya said the decision to increase the MPR by 25 basis points was informed by the projection that inflation will continue to be above the target band of 6-8 percent over the forecast horizon.

Dr. Kalyalya said Inflation declined further in Q1 2023, albeit marginally. However, it remained elevated and is projected to remain above the 6-8% target band over the forecast horizon. In Q1 2023, inflation averaged 9.6% compared to 9.8% in Q4 2022.

He noted that in April 2023, inflation rose to 10.2% from 9.9% in March. Strong regional demand for maize grain and maize meal as well as the lagged pass-through from the depreciation of the Kwacha against the US dollar were the major drivers.

Dr Kalyala said the inflationary pressures observed in April are expected to persist over the forecast horizon and keep inflation above the target band of 6-8% despite declining slightly relative to the February 2023 forecast.

He explained that inderpinning the current forecast are largely the impact of the recently approved electricity tariffs and elevated maize prices, particularly in 2023, as anticipated in the February 2023 Statement.

He stated that inflation is projected to average 10.5% and 8.4% in 2023 and 2024 compared to 11.1% and 10.1% in February 2023 forecast, respectively. In Q1 2025, inflation is forecast to remain at 8.4%.

He further warned that delays in external debt restructuring negotiations, tighter global financial conditions, higher maize prices, due to the anticipated lower production amid strong regional demand, and the impact of the prolonged Russia-Ukraine war on food and energy prices remain key upside risks to the inflation outlook.

Dr. Kalyalya said the committee also took into account fragile growth, and lingering vulnerabilities and risks in the financial sector.

“Observed budgetary discipline and continued implementation of fiscal consolidation measures, including broader economic reforms, will remain important anchors to achieving lower inflation and macroeconomic stability.” He said.

He added that the decisions on the Policy Rate will continue to be guided by inflation outcomes, forecasts, and identified risks, including those associated with financial stability and external debt restructuring.

Meanwhile experts have attributed the increase the more driven factors of imports as compared to the exports. experts have also warned that the increase will create a very strong upshoot to the business structure across the board

Speaking in an exclusive interview with the Zambian Business Times – ZBT, Economist Kelvin Chisanga said the country need for the country to create a sound will in terms of balance of trade.

“The cost of capital is something that is directed impacted on this and we have already got a situation where the market has not been fairly very well in terms of loan contraction, payment model and even much more the business has been a bit slow so that also complements to be a negative impact regarding the direction that we need to take.” Said Chisanga.  

Chisanga said this will obviously create a very strong upshot to the business structure across the board and when you look at the challenging factor on the export market it becomes difficult because obviously when you are financing production and then you want to increase the volume of sales through export it is difficult.

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The Bank of Zambia (BOZ) has increased

Lifestyle

Absa Life Zambia and Airtel Mobile Commerce Ltd (Airtel Money) have unveiled the Umoyo Funeral Cover which is a digital insurance product powered by Inclusivity Solutions, a leading provider of digital insurance technology.

The Umoyo Funeral Cover is a unique offering that provides comprehensive funeral cover to all Airtel customers. The product comes as a package offering coverage to the entire family at an affordable premium of k20 per month for a cover of K7, 500 each for the customer and their spouse and K1, 875 each for children up to a maximum of five. 

Speaking at the launch attended by the Zambian Business Times -ZBT, Minister of Technology and Science, Hon. Felix Mutati said one of the key measurements of a growing economy is easy access to financial services for its population.

Mutati said, “Government has emphasized time and again how financial inclusion is a key strategic agenda and more recently we have seen significant digital uplift of financial services in the banking sector, where customers can now complete transactions on their mobile phones that previously required a series of approvals and steps at a physical branch.

“Today we are witnessing the expansion of such services to insurance. With this product offering, customers will be able to acquire insurance from the comfort of their homes, offices and even while on the street by simply accessing the service on the Airtel money platform using USSD. This is in line with our ministry’s belief that technology is the foundation for economic growth and sustainability.” Mutati said.

Speaking at the same event, Airtel Money Country Director, Andrew Chuma said Airtel Money was dedicated to providing its customers with convenient digital solutions for navigating life even in the most difficult moments.

“We believe that partnerships such as this one help deliver value for customers. The prospect of loss and profound grief can be overwhelming, therefore planning ahead of time can help in handling the financial burdens that come with such unfortunate circumstances. It is for this purposethat our partnership with Absa Life Zambia exists to provide a convenient and affordable funeral plan for our customers,” Mr. Chuma said.

And Absa Life Zambia Ltd Managing Director Collins Hamusonde, expressed his excitement at the partnership with Airtel Money and the opportunity to provide affordable funeral cover to Airtel Zambia customers.

Hamusonde said, “We are delighted to partner with Airtel Zambia to bring this innovative product to our market. This digital insurance launch speaks directly to key objectives that are driven by Government through various financial regulatory bodies. The product is affordably priced to meet the needs of the market with the aim of reaching out to as many Zambians as possible and help reduce the burden of losing a loved one.”

Meanwhile, Inclusivity Solutions Head of Operations, Sam Ndori, also expressed his delight at the partnership and opportunity to anchor the technology behind the innovative digital solution.

“We are thrilled to partner with Absa Life Zambia and Airtel Money to power the Umoyo Funeral Cover. Our award-winning digital insurance platform enables us to support the access of the underserved customers, and we are excited to bring this innovative product to customers in Zambia,” he said.

The product will be distributed through a digital channel with Airtel as the distributor and can be purchased directly from Airtel customers’ mobile phones by dialing *115#.

Any Zambian citizen aged between 18 and 65, subscribed to Airtel and has a Mobile money account can apply for this unique offering that provides comprehensive funeral cover to all Airtel customers.

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Absa Life Zambia and Airtel Mobile Commerce