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African governments and Zambia’s new dawn government in particular may have a lesson to learn from Central American negotiation skills after the confirmation that the Panama government has secured a minimum of $375 million per annum from First Quantum Minerals – FQM.

In a note shared with the Zambian Business Times – ZBT, has announced that its Panamanian subsidiary, Minera Panamá, S.A. (“MPSA”), has agreed and finalized the draft of a concession contract (the “Proposed Concession Contract”) with the Government of Panamá (the “Government”) for the Cobre Panamá mine.

The Proposed Concession Contract entails payment by FQMs MPSA of $375 million plus an additional $20 million to cover taxes and royalties up to the year end 2022 as well as payment by MPSA starting in 2023 of an annual minimum contribution of $375 million in Government income, comprised of corporate taxes, withholding taxes and a profit-based mineral royalty of 12 to 16 percent, with downside protections

And in respect to safeguarding public interest and respect for non state actors and national stakeholders and unlike the situation in Zambia were public deals are negotiated in secrete, the proposed Panama – FQM Concession Contract is subject to a 30-day public consultation process and approvals by the Panamanian Cabinet, Comptroller General of the Republic and the National Assembly. 

Tristan Pascall, Chief Executive Officer, said, “After a lengthy and arduous negotiation process, the finalized Proposed Concession Contract outlines the basis for the future of Cobre Panamá for all stakeholders, including the Government, our investors and the country of Panamá.

In Zambia, government instead of negotiating for getting maximum benefits, Minister of Finance Dr. Situmbeko Musokotwane opted to make mineral royalty tax – MRT tax deductible resulting in an annual revenue loss of between $150 million to $200 million per annum adding up to about $1 billion in five years.

With $375m minimum annual revenues, Panama will recoup about $2 billion in five years. The Zambian government should also consider adopting wider public consultation when handling huge public deals especially if their impact goes beyond a five year time horizon.

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African governments and Zambia’s new dawn government

Tech

The Itezhi Tezhi Power Corporation – ITPC, a joint venture company between ZESCO and Tata Africa has revealed that they are now capable of supplying 120MW of power generated to ZESCO, the Company is now able to produce at almost full capacity following improved water levels following a good spell Of rainfall and in some cases flush floods.

ITPC had earlier disclosed that the company was only generating 80MW out of 120 MW installed capacity due to low water levels, a situation which had contributed to recent experienced load shedding that slowed down the economy losing about one month in nationals production and socio-economic disruption.

Speaking in an exclusive interview with the Zambian Business Times – ZBT, ITPC Chief Executive Officer Moses Mbuta said the Company is now able to produce about 110 megawatts and it expects to start generating at full capacity (120MW) before end of February 2023.

Mbuta said the current produced 110MW of power is being supplied to ZESCO but declined to reveal the tariff or price at which power is supplied per megawatt to ZESCO, a state owned Power utility. Calls to list even 5% of ZESCO shares on Lusaka Securities Exchange – LuSE have arisen due to concerns over abuse by successive politicians, poor Corporates governance practices and lack of timely financials and operational reports, which would become mandatory if listed.

Mbuta said because of the variable of low water levels in reservoirs, the company was in the last few months unable to produce at full capacity and be able to challenge the rising demand of power.

According to electricity producers, there was low water levels in major rivers on which dams have been constructed to generate electricity a situation which had resulted in less power generation in the country and a one month return to crippling load shedding.

Mbuta said the company is however trying by all means to ensure that generation is at full capacity and support the State owned power Utility Company ZESCO and the country at large.

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The Itezhi Tezhi Power Corporation - ITPC, a

Mining

Zambia’s annual Copper production has dropped by 5% to about 760,000 tons. This trend goes against the New Dawn Administrations target to rump up Copper production to over 3 million tons in 10 years.

The 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. The 763,287 metric tons of the total copper produced in Zambia in 2022 is a drop from 800,696 tons which was produced in the preceding year 2021.

According to a consolidated copper production report obtained by the Zambian Business Times –ZBT and verified by the Chamber of mines, the 2022 copper production has decreased by a whooping 37,409 tonnes in the year 2022. At average international copper prices of $9,000, this is an export opportunity revenue gap or loss of about $340 million in 2022.

This drop is however against the government target of increasing copper production to 1.3 million metric tons for the 2022 fiscal year, a build up target needed as a step towards achieving the target of 3 million tons of copper within the next 9 years. Minister of finance and mines continue to insist that this 3 million copper production target is attainable despite top mining and exploration experts disputing and stating that the target is unattainable and the target may have not been based on exploration and mine developments on the ground.

Mining experts spoken to have attributed the 5% decrease to the continued declining of production at Mopani and unresolved Konkola Copper mine issues that are deteriorating on the ground, stating that they have largely contributed to the 2022 decreased copper production. If even resolving gold mining at Kasenseli mine has delayed to this long, how about large scale copper minimum?.

Former president of Mining Suppliers Augustine Mubanga told ZBT that the country is anticipating to see that the mining sector begins to contribute to the economic agenda of this country, because if left in the current state, it is dangerous on the national economy and specifically the Copperbelt’s regional economy, and also the negative impact on the lives of the people that directly depend on the smooth operations of the mines.

Mubanga said the negative contribution of Mopani and Konkola Copper Mine to the total production of 2022 will further have a significant impact on the revenues that will be received from the Mining Sector. Towns and cities like Kitwe, Ndola, Chingola, Mufulira and even Chililabombwe are under economic pressure.

He added that government should form a technical group of various stakeholders with historical and strong knowledge in the mining sector to advice government on issues surrounding the mining sector especially where two giant mines like Mopani and KCM are concerned.  

For so long Calls for urgent attention have continued on both the court cases at Konkola Copper Mines and unprofitability of the Glenore deal at Mopani Copper Mines as they have left local businesses limping and have paralyzed the Copperbelt and the country at large.

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Zambia’s annual Copper production has dropped by

Agribusiness

Onion prices have collapsed by over 30% following excessive seasonal supply. And the Zambia National Farmers Union – ZNFU has attributed the current low prices of onion on the market to the overwhelming availability of the commodity as most farmers are currently harvesting their crop.

Speaking in an exclusive interview with the Zambian Business Times – ZBT, ZNFU Public Relations Manager Calvin Kaleyi attributed the collapse in prices on the market to over supply, with onions and the stocks being sold to have exceeded demand.

Kaleyi explained that, “If the market is saturated and is over supplied, basically the prices will come down. The market is now saturated and it has plenty onion supplies and the stocks are exceeding demand, so automatically the situation dictates that there should be slow down in prices, so this is what is happening.”

He said the prices are however expected to again rise towards May and June when there is likely to be low supply. Most farmers pen traders do not have industrial driers to add shelf life to onions, so they are forced to offload. The other option is to grow onions as a winter crop so that harvesting and marketing is during period of low supply.

Onion prices as measured by the Jesuit Centre for Theological Reflection (JCTR) Basic Needs and Nutrition Basket (BNNB) for the month of January 2023 have declined by K37.78 from the month of December. A 4kg onion pouch went down by K37.78 from K117.69 (K29.42/1 kg) to K79.91 (K19.98/1kg), a drop of 32%.

Onion can also be exported but lack of investments, aggregation and follow through continues to hinder local onion farmers growth and development. However, commercial farmers are able to grow high quality onions, have purpose built driers and export excess to retain profitability.

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Onion prices have collapsed by over 30%

Tech

The Railways Workers Union of Zambia – RWUZ says it is unfair for the railway sector to continue paying fuel levy which do not even go into the rehabilitation of the rail line and a steep employee representatives, they are calling for the sector to be exempted from paying this levy so that benefits can be passed on to passengers.

Speaking in an exclusive interview with the Zambian Business Times – ZBT, RWUZ Secretary General Simon Ngambi said the railway sector purchases fuel in large quantities and yet they are subjected to pay fuel levy which has no benefit on the sector.

According to the Energy Regulatory Board – ERB, the Fuel Levy is paid by every consumer of Petrol and Diesel. ERB Public Relations Manager Namukolo Kasumpa said the current fuel levy is K1.01 per litre for Petrol and K0.32 per litre for Diesel which is used by the Government for road construction and maintenance.

But RWUZ Secretary General Simon Ngambi has argued that it does not make sense for the railway sector to continue paying for the particular component when they do not use the road and government does not use the funds to improve the track. Rail is a much cheaper mode of transport than road but lack of investment and upgrade continue to hinder the sector from taking its rightful place.

Ngambi said Government should come in and see how best it can help the rail sector stating that the fuel which they buy does not go towards the maintenance of the rail but to the maintenance of the road.

“We are asking Government to exempt the railway sector from paying the (fuel levy) that particular component so that the company can mitigate some of the challenges the company is facing.” He said. 

Ngambi said, “This is our concern because the fuel we buy and the fuel levy we pay does not go to rehabilitate the rail line but the component goes to the rehabilitation of the road.”

He said Zambia railways contribute to the maintenance of the road through fuel levy which they do not even use.

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The Railways Workers Union of Zambia -

Tech

ZESCO Limited, Zambia’s energy giant has disclosed that the waiting list of people who have paid for connection of electricity from has been cut from about 67,000 to about 11,000. This is expected to improve national household and commercial entities connections to the national grid which experts say at country level, is only at about 30 to 40%.

The state-owned power company (ZESCO) reported that it had accumulated a connection backlog of over 67,000 customers as of December 2021 which built up from 2014 to 2021. The backlog was initially blamed on lack of wooden poles locally, to justify importation of wooden poles, a claim that was refuted by ZAFFICO – a publicly listed producer of wooden poles and a local wooden poles trader Copperbelt Forestry Company.

Speaking during a media briefing in Lusaka Monitored by the Zambian Business Times – ZBT, ZESCO Managing Director Victor Mapani said the backlog is currently sitting at 11, 000 with all standard connections completed and the only ones remaining are non-standards.

He said ZESCO set out to clear the backlog within a year and by the end of the 1st quarter 2022 and quarter 2 of 2022, the backlog was sitting at 37, 000 and 25, 000 respectively.

Mapani said this process was derailed when the Zambia Public Procurement Authority (ZPPA) was petitioned over the importation of the poles which were not readily available in Zambia.

He also said the power utility firm also had debt owed to independent power producers which had now been reduced by $500 million.

Mapani said ZESCO’s huge debt encumbrance which has hindered the corporation from functioning optimally has been reduced from $3.5 billion as of December 2022 to now about $3 billion.It Ian however not clear if the $3 billion debt also includes the $2 billion invested into the construction of the 750MW Kafue Gorge Lower.

He said the debt reduction has mostly been driven by the renegotiating of existing contracts and improving the corporation’s financial discipline which has resulted in ZESCO meeting obligations as and when they fall due. ZESCO has since ended a month long load shedding which had blighted and tarnished the image of the energy company.

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ZESCO Limited, Zambia’s energy giant has disclosed

Mining

Mufumbwe District Council Chairperson has disclosed that Euro Africa Kalengwa Mines Limited has moved on site and has commenced construction of the processing plant after it was granted a mining license to take up operations at Mufumbwe’s Kalengwa copper mine.  

Council Chairpesron Lemmy Namukuka said following a long legal battle for kalengwa mine between Kalengwa Processing Zone Limited and Euro Africa Kalengwa Mines Limited the license has finally been granted to Euro Africa Kalengwa Mines Limited.

The mine is expected to have an initial annual Copper production of 15,000 tons, which would add about $135 million to Zambia’s forex earnings if proceeds are banked locally. The mine site has one of Zambia’s highest Copper content ore and annual production would easily be doubled with the right expertise and technology being deployed.

Kalengwa Processing Zone Limited had taken Government to Court over the cancelation of its large scale exploration licence, describing it as unlawful. It is however not clear if more legal drama and fight backs will not follow and further delay this mine development and operations.

According to media reports seen by the Zambian Business Times – ZBT, some years back, Kalengwa Processing Zone Limited who were holding the mining license had applied for leave to commence judicial review of the decision by the mining licencing committee to terminate its large-scale exploration licence no. 24401-HQ-LEL.

The firm was seeking a declaration that the decision of the committee to terminate its licence and reinstate Euro Africa Kalengwa Mine Limited’s licence no. 8584-HQ-LEL is illegal and procedurally improper. The Council chairperson could however not give details regarding this matter.

Namukuka however told ZBT that he was briefed by Euro Africa Kalengwa Limited Country Managing Director that they are almost through with the ZEMA in terms of the environmental impact assessment report and go ahead.

He said the construction of the processing plant is expected to be completed within three months and after that they expect to commence productions.

He said once operational they expect a boom in terms of business activities in the sense that there will be an influx of many people that will get employment at the mine and open up a number of business within the district.

“We as the council are also expecting that we will have an increase in terms of the revenue from the property tax and land rates that will be collected from the mine which will in turn help to carter for our environmental and social economic activities.” He said.

He further remarked that, “We are so excited because this is a natural resource for the people of Mufumbwe as the people of Mufumbwe will have to benefit through employment and we also expect development in terms of infrastructure, support industries and sectors such as housing, shopping and commercial centers which will contribute to the development of the District.”

Kalengwa mine is located in the North-western province of Zambia 800 km north-west of Lusaka and 400 km south-west of Kitwe. The Copper Mine is believed to have been one of the highest-grade copper mines in Zambia.

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Mufumbwe District Council Chairperson has disclosed that

Mining

Mwinilunga Member of Parliament – MP, Newton Samakayi has accused the Zambia National Service – ZNS Officers that have been assigned to secure the mine of taking party in the illegal mining activities that he said is happening at Kasenseli gold mine.

Speaking in an exclusive interview with the Zambian Business Times – ZBT, the lawmaker questioned why cases of illegal gold mine at the mining site are increasing when there are officers from security wings stationed to look after the place.

Samakayi said the security wings must be questioned for allowing illegal gold mining at Kasenseli gold mine in Mwinilunga District of the North-Western Province.

“The Zambia police there were told and they arrested some people and they were released, why were they released? It means now what was happening under the former ruling PF is repeating itself under the UPND Government.”

“I was talking about theft of gold then in PF and you know what happened there were a lot of people who were involved some of them lost their jobs because of gold theft. Now it has started again, so different people but people of the same position have started stealing.” He remarked.

“But you see we have heard reports on how gold is stolen and those people who are stealing are not acting alone they are acting with other people including the villagers and some officers from Zambia Police.”

“So ZNS and Police Officers in Mwinilunga must be questioned because they should know what is going on at the gold mining site and everybody must know as nobody was spared during PF and even now, some security and connected individuals must be involved for the theft of gold to be successful.”

The lawmarker has since called on the removal of all the ZNS personnel whom he said have been there since the mine was closed and replace them with fresh ones.  

“You cannot keep the same people for more than one year and they are looking after the precious stones like that they will end up start stealing. The nature of the job is that every after 6 months they are replaced but that has not happened at Kasenseli gold mine.”

He said People must be responsible whenever they are given responsivity they should incur it with utmost integrity. “Stealing those assets that you have been given I think that is the irresponsibility of the highest order and people with such character must be punished.”

Meanwhile Samakayi revealed that there has been an escalations of reported illegal gold mining in the past two weeks.

“Am the area Member of Parliament and I have a network of people on the ground and I know what happens in every corner of my constituency because of the reliable network I have.” He told ZBT.

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Mwinilunga Member of Parliament - MP, Newton

Uncategorized

Political power and all its trappings are a human construct, hence its longevity and hold remains a constant exercise of skill and state craftsmanship. In Zambia, with our hue of democracy, we have a Presidential system, with the President occupying a very powerful position that is akin to organizations having one person that is both the chairperson and chief executive officer.

Even if we theoretically have the separation of powers through the three arms of government, the executive headed by the President, the Legislature headed by the Speaker and the Judiciary headed by the Chief Justice, our legal system still gets an elected President to nominate and effectively appoint the Speaker and the Chief Justice.

This in effect makes the President the most powerful figure in the sovereign, as a shrewd appointment of “cronies or user friendly” people to the Speaker and Chief Justice positions basically secures the sitting president ultimate control not only of the executive, but of the Judicial and legislative agenda of the nation. It is this possibility of attaining absolute power that perhaps is the most dicey.

It is said that power corrupts, and that absolute power corrupts absolutely. And like most, if not all Presidents before him, President Hakainde Hichilema – HH has now made appointment in the Judiciary that any initiated citizen would recognize as an exercise in further consolidating his power and grip on the Judiciary. 

In a statement seen by the Zambian Business Times – ZBT, President HH has appointed Professor Judge Margerate Munalula as Judge President of the constitutional court, replacing Hildah Chibomba, an appointee of his predecessor former President Edgar Lungu. Judge Munalula has been a Judge even during the previous regime and became famous for issuing dissenting judgements.

HH has further appointed Judge Anold Mweetwa Shilimi as deputy president of the Constitution court replacing Judge Annie Mwewa – Sitali – another appointee of former President Lungu – who had acted as President after the departure of Judge Hildah Chibomba. Shilima has wide international experience having worked in Kenya and UK, and had been a partner in the firm of Mwansa, Phiri, Shilimi & Theu Legal Practitioners

And in what can be seen as packing the constitutional court with his appointees to be in a majority, President HH has appointed High court Judge Maria Mapani-Kawimbe, Mudford Zachariah Mwandenga and a Judge embroiled in a legal controversy with his research advocate – Judge Kenneth Mulife.

For the court of appeal, HH has appointed Judge Mwiinde Siavwapa as Judge President. The head of state has also appointed Abha Patel and Yvonne Chembe as judges of the court of appeal.For the High Court, President HH has appointed ZIALE Executive Director Anne Malata-Ononuju, Laston Mwanabo, Mwaka Samundengu, Mbile Wina, Enias Chulu, Oblister Musukwa, Geoffrey Mulenga, Vincent Siloka, Malario Nyirenda, Greenwell Malumani, Mabolobolo Mwanajiti and Chocho Situmbeko.

The question that will only be answered by time, is how HH will use this consolidated power. Will it be a force for good, Will it benefit the country and the majority of its humble citizens, will he manage to resist the temptation of abuse and use it to eliminate political competition, will he resist the temptation of the ability to engage in absolute corruption?. Only time will tell

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Political power and all its trappings are

Tech

The state owned power utility Company and Zambia’s energy giant ZESCO has disclosed that it has progressed procurement for the development of its first 150 megawatts solar power station out of the planned three that will be situated in three different provinces.

ZESCO’s Managing Director Victor Mapani the country’s hydropower generating portfolio which makes up 86% of the country’s installed power generating capacity, and despite its installed capacity being in excess of the of demand, all being equal, it has seasonally failed to yield adequate capacity to meet demand, hence the perennial deficit which occasions load shedding as has been the case.

He said in medium term, the power utility company is focused on expanding its power generation mix by investing in other renewable energy sources. No plans for development of nuclear power plant was announced, though most industrialized countries in the world have them.

Mapani explained during a media briefing monitored by the Zambian Business Times – ZBT that the corporation targets to on board a renewable energy composed of a minimum of 800MW of solar energy, 500MW of wind energy and 500MW of hydro in the next 10 years.

He said the tender for its first 150 megawatts solar power stations closes in April 2023 after which they expect to accelerate the project to the construction stage as they anticipate for the commissioning in 2024.

The power Utility Company has embarked on an investment drive that will see all provinces have at least one solar PV farm. The initial plan is to start with 150MW as part of the strategic plan to which aims to construct up to 800 megawatts of on-grid solar power generation by 2032.

Solar projects in Zambia have received a major boost after President Hakainde Hichilema clinched and witnessed the signing the of a memorandum of Understanding – MoU and a landmark joint development Agreement – JDA between Zambia and the United Arab Emirates – UAE to facilitate a US $2 billion investment in renewable energy in Zambia.

Meanwhile, Mapani said the recent signing of a $2 billion dollar solar deal with MASDAR of the United Arab Emirates facilitated by President Hakainde Hichilema is one emphatic step that will boost the country’s power generation capacity.

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The state owned power utility Company and