Zambia’s aviation industry recovery hits 119%

The Zambia Airports Corporation Limited (ZACL) has disclosed that Zambia’s aviation industry performance has seen an impressive start in 2024 with a significant increase in both international and domestic passenger traffic leading to a recovery of 119% to pre COVID-19 in the first quarter of the year.

According to ZACL Communications and Brand Manager Mweembe Sikaulu, said the overall trend in passenger numbers is promising and optimistic adding that demand for air travel to key business and tourist destinations from Lusaka remains upbeat.

“In the quarter under review, Zambia Airports Corporation Limited (ZACL) served 482,400 general passengers, this represents an increase of 20% when compared to the 403,478 passengers recorded in Q1 of 2023 and a recovery to pre COVID-19 levels of 119% when compared to the 404,581 passengers recorded in 2019.”

The highest recovery rate was at Kenneth Kaunda International Airport (KKIA) at 133% recovery and the least was at Harry Mwaanga Nkumbula International Airport (HMNIA) at 71% recovery.

International passengers recovered by 116% with KKIA recording the highest recovery of 133%. HMNIA which mainly serves the tourism industry continued with a slow pace to recovery at only 55%, an increase of 8 percentage points when compared to the same period in 2023.

The notable increase in international passenger numbers was attributed to various events with many taking place in March 2024. Some of the events include the hosting of the Extraordinary Summit of the Organ Troika, Plus SADC Troika which was preceded by the Extraordinary Meeting of the Ministerial Committee of the Organ (MCO) & the meeting of the Senior Officials of the MCO as well as the Extraordinary

Meeting of Interstate Defence and Security Sub Committee (ISDSC).

Domestic passengers recovered by 133% with all airports surpassing pre COVID-19 passenger levels. Simon Mwansa Kapwepwe International Airport (SMKIA) recorded the highest recovery of 156% as the Lusaka-Ndola route was the busiest in the period

under review. The positive domestic performance continues to be driven by the competitive pricing being offered by domestic airlines for flights to and from Lusaka.

Furthermore, it is predicted that domestic performance will continue on an upward trajectory as a result of the opening of the Lusaka – Kasama route that commenced in March 2024. The continued hosting of various meetings in Livingstone by Professional Bodies has also continued to be a significant contributor to domestic passenger

performance.

“3,987 tonnes of cargo and mail passed through ZACL airports in Quarter 1 of 2024, representing a negative growth of 8% when compared to 2023 when 4,205 tonnes were recorded. The rate of recovery to 2019 levels when 5,101 tonnes were recorded was at 78%.

Looking ahead, trade and tourism will remain key drivers of growth, fuelled by the hosting of diverse events like meetings, incentives, conferences, and exhibitions.”

“Additionally, the introduction of flights to Kasama will further boost domestic travel.As Zambia Airports Corporation Limited, we will continue to collaborate with key industry stakeholders to enhance Zambia’s appeal as an affordable and attractive

destination. Our focus remains on ensuring seamless air travel experiences, which will

in turn attract more business tourism, including meetings and conferences.” she added.

“The primary concern that the industry continues to grapple with is the significant increase in fuel prices globally. This has the potential to affect the entire industry negatively, as it has a direct impact on airline operating costs which translates into higher ticket prices.”

The Zambia Airports Corporation Limited (ZACL) has

$5 billion Batoka gorge hydropower plant construction drags

The long-awaited $5 billion Batoka Gorge Hydroelectric Scheme (BGHES) in Zambia and Zimbabwe is facing delays in construction, which is having a significant impact on the energy needs of both countries.

The BGHES is expected to add 2,400 MW of power to the shared grid, helping to reduce the power supply deficit in the two countries.
However, delays in the construction mean that the potential of the Zambezi River as a clean energy source is not being maximized, while the energy gap continues to negatively impact the economies of both countries.

According to the Zambezi River Authority – ZRA, the BGHES the disengagement with the initially appointed project developer has caused delays as the new developer is yet to be appointed.

In an inquiry by the Zambian Business Times – ZBT, Zambezi River Authority, Chief Executive, Eng. Munyaradzi C. Munodawafa, the Authority plans to retender the project in 2024 and expects to receive bids from potential developers by April 2025, with the selection of bidders expected to be undertaken by September 2025. The estimated cost of the project is $5 billion, subject to change depending on inflation and other economic factors.

“It is anticipated that the construction of the BGHES will add 2 400Mw of power to be shared equally between Zambia and Zimbabwe. This increase in power supply would significantly reduce the power supply deficit in both countries. The delay in the construction of the BGHES means that the two countries are not maximizing the potential of the Zambezi River as a clean energy source, whilst the prevailing energy gap continues to negatively impact the performance of the two economies.”

Asked about What measures are being taken to address the challenges that have led to the delay in the construction of the power station. Munodawafa said the Authority will embark on an international competitive tendering process to procure a new developer.

“To ensure that transparency and value for money principles are upheld from the tendering stage through to the final development of the hydropower scheme, steps have been taken for the Authority to enter into partnerships with key renewable energy institutions and international financing institutions (IFIs) whose experience will contribute in respect of driving the project towards bankability and financial close. Measures will be put in place to ensure the project works are done within the timeframe that will be decided upon.”

He said the construction will start soon after reaching financial close spearheaded by a developer who is yet to be appointed. The Authority intends to retender the project within the course of 2024 and expects to receive bids from potential developers by April 2025 while the selection of bidders is expected to be undertaken by September 2025.

Munodawafa said the estimated cost of the project is 5 Billion United States Dollars. “However, this may be subject to change depending on inflation and other economic factors that may affect the cost of goods and services required for the construction of the Batoka Gorge Hydro Power station.”

The BGHES has the potential to provide significant benefits to both countries, and its completion is crucial to their economic development and progress as the two countries face the negative effects of climate change.

Batoka Gorge Hydro Electricity Scheme (BHES) is a 2.4GW hydroelectric project located across the boundary between Zambia and Zimbabwe, on the Zambezi River, approximately 54km downstream of the Victoria Waterfall.

The project is being undertaken by the Zambezi River Authority (ZRA), an entity equally owned by the Zambia and Zimbabwe governments.

A memorandum of understanding (MoU) was signed between Zambia and Zimbabwe to develop the BHES project, in February 2012.

Construction on the £4bn ($5.2bn) project was expected to begin in 2020 and targeted for completion in 2026.

The long-awaited $5 billion Batoka Gorge Hydroelectric

Airtel Zambia injects K300, 000 into 2024 ZICTA ICT Innovation Program

Airtel Networks Zambia Plc has pumped in K300,000 for a record 5th year running to become the Platinum partner for the Zambia Information Communication Technology Authority (ZICTA) 2024 ICT Innovation Program Cohort.

Zambia Information Communication Technology Authority (ZICTA) Director General, Engineer. Choolwe Nalubamba received the cheque on behalf of the Authority saying that the Innovation program which started in 2016 has had over 400 program beneficiaries with at least 30 of the innovations being commercialized.

“Today is another great day for us who have seen this Innovation program grow from strength to strength since 2016 when we first introduced it as an Authority. Receiving this K300,000 from Airtel Networks Zambia Plc today, is something we are excited about and more so because this is the 5th year that Airtel has been the platinum partner,” Nalubamba said.

Adding: “Just recently, we witnessed one of our Alumni innovators host a successful market launch of his product and that in itself underscores the impact that is being created by ZICTA and our partners on the program.”

Airtel Managing Director, Hussam Baday said his Company was pleased to join hands with ZICTA and other organisations in working towards transforming the rich, innovative ideas coming from the program into viable ventures that in turn unlock inclusive and sustainable growth for Zambia.

“We are proud of our continued association with the ICT Innovation Programme, for the 5th year running. This is mainly because of its transformative impact not just to the innovators, but the country. We continue to be inspired by the many success stories that have been coming out of this programme – the start-ups that are getting commercialised, the jobs that are being created, and the huge impact that the innovations are having on the lives of individuals and businesses across the country.”

According to Airtel Zambia, Head – Corporate Communications, Yuyo Nachali-Kambikambi, The Call for submission of Innovations opened in April and will close on May 15th 2024.

The program is expected to run until November with several activities lined up in between including business and technical development workshops as well as group coaching and pitching sessions for the finalists.

Airtel Networks Zambia Plc has pumped in

Govt challenged to immediately reverse fuel pump prices

The Oil Marketing Companies Association of Zambia – OMCAZ, has challenged the government to immediately reverse the fuel pump prices after the revelation that the Energy Regulatory Board – ERB did not consult the government before announcing approved hiked prices a situation the government claimed did not sit well with them.

This follows Chief Government Spokesperson Cornelius Mweetwa’s revelation during a media briefing that the Energy Regulations Board -ERB- did not consult the government before announcing approved the prices.

Speaking in an exclusive interview with the Zambian Business Times – ZBT, OMCAZ President Dr. Kafula Mubanga said, “What it technically means is that money has been stolen from the Zambians if the government was not consulted and Zambians should demand a refund on the prices from the suppliers of this particular product because there were no consultations.”

Dr Mubanga noted that it is a crime for the ex-board chairman to have adjusted the prices without consultations.

“The biggest problem that we have in Zambia is that we don’t want to take full responsibility and it’s clear that we have been stolen from, how then does the government ensure that this money is refunded?

“According to the Minister’s position, those that have put these fuel prices, are stealing from the Zambians that’s the clear position and that should have raised eyebrows to ACC and other investigative wings to investigate who has been eating that money and why getting it from the Zambian people who are already starving.”

Dr Mubanga said it is enough that the Information Minister should state how he assumes that the Zambians would get back their money as they want it back. “There is an admission of guilt to a certain extent and we can’t just let that pass because we have to  be responsible enough that if those people stole from the Zambians let the government go to the OMCs and direct them to reverse the prices but also to the price extent that the people of Zambia have lost.”

“So the review should be two times downwards because we know that they stole the money which is evident even in the Auditor General’s report where about K51 billion kwacha was siphoned from the overpricing of fuel prices.

Dr Mubanga remarked that it is not sufficient for the Government to just come and tell people that it was not aware of the theft adding that adequate actions must be taken and ensure that the money is paid back to the Zambians.

“Yes government was not aware and that’s the identification of crime but how then does it ensure that the money trickles down to the rightful people?

Government should now show political will and instruct all OMCs to reduce the prices backward.”  remarked Dr. Mubanga.

The Oil Marketing Companies Association of Zambia