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Agribusiness

Defense Minister Ambrose Lufuma has exclusively revealed to the Zambian Business Times – ZBT the reasons behind the three Zambia National Service – ZNS Industrial Milling Plants failure to help improve supply of affordable mealie-meal and help tame the escalating prices with some areas districts reporting prices of K240 per 25kg bag of breakfast mealie meal.

Residents in different parts of the country have bitterly complained over the escalating prices of the staple food of mealie-meal which have increased the cost of living and made life difficult. Governments had established regional ZNS industrial milling plants that were meant to help cushion mealie meal prices in times of price escalation but this has

Speaking in an exclusive interview with the Zambian Business Times – ZBT, Lufuma revealed that the three ZNS Industrial Milling Plants which are expected to help lower the price of mealie meal are not fully operational as they need a combined total of about 120,000 metric tons of Maize which is not currently available.

“We as the Zambia National Service – ZNS do not have the necessary stock which needs money to make it fully operational.” The Defence minister disclosed. When asked how much investment was needed to make the plants fully operational, Lufuma said, “we require 120,000 metric tons of maize, so if you multiply that by about K200 per bag, you will find out how much is needed”

He explained that once the plants are [supplied] with the necessary stock, they are ready to produce at full capacity as the machines are okay with enough man power, a situation he said may help trickle down the mealie meal prices. Lufuma said this season, they have increased the hectares of maize and are doing better smart farming and better management of the crop in order to maximize [the harvest] per unit area.  

He also mentioned that negotiations are currently ongoing with the Food Reserve Agency – FRA to sale the excess stock to ZNS so that they can be able to produce at full capacity. Monze, Chongwe and in Mpika all together have the production of 240,000 metric tons of mealie meal per day.

The industrial milling plants which are a presidential initiative initiated by the previous government under former President Edgar Lungu with financial and technical assistance from the Chinese government. In 2019 former President Lungu flagged off the commencement of the construction of 13 milling plants for each province to have at least one under the presidential milling plants initiative to help curb price escalations like the current one being experienced.

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Defense Minister Ambrose Lufuma has exclusively revealed to the

Lifestyle

The Rural Electrification Authority – REA has revealed that they plan to electrify about 15,195 households in the current year 2023. This marks a huge milestone in making electricity available to rural folks, a key catalyst for driving sustainable local development.

REA Chief Executive Officer – CEO Eng. Linus Chanda said a total of K1.97 billion which include the committed funds and other funds coming from cooperating partners is currently available for the 2023 projects.

Speaking during the 2023 work plan monitored by the Zambian Business Times –ZBT – Eng. Chanda, said about K362 million representing 43.6% of REA’s 2023 capital budget, has been allocated to grid development projects which include grid extension, grid intensification and grid densification. He said this allocation will translate into sixty-two new projects (62) targeting sixty-five (65) rural growth centres, which will in turn result in at least 12,000 connections.

Eng. Chanda remarked that that k190, 800,000 representing 23.8% of REA’s 2023 budget, has been allocated towards off-grid renewable energy projects. He explained that this represents 23.8% of REA’s 2023 budget. “under this budget allocation, we hope to complete (18) solar mini grids; 120 high powered solar home systems; one (1) biogas project; and one (1) wind power project. The completion of these projects will result into a further addition of 2,453 connections.”

He added that k15,310,000) have been allocated towards special collaboration projects which include electrification of maheba refugee camp in solwezi, electrification of chiefdoms in itezhi-tezhi and electrification of matanda village in luapula province.  

Eng. Chanda said collectively, once all these projects are completed, fifteen thousand one hundred ninety five (15,195) rural households will be electrified. “This will represent 10% cumulative increment on the access rate putting us on firm direction towards our 2026 target.”

Speaking in a separate interview REA Corporate Affairs Manager Justine Mukosa said the commencement of implementation of these various projects depends on the completion of the tendering and other process. Mukosa told the Zambian Business Times – ZBT – that a lot of these projects are currently on the procurement stage in terms of tendering.

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The Rural Electrification Authority - REA has

Markets

Airtel Networks Zambia has been declared WINNER of the ‘Best Dividend Paying Company’ at the 12th Corporate Governance Annual Awards of the Lusaka Securities Exchange (LuSE) held on 27th January 2023 in Lusaka.

Receiving the award, Airtel Networks Zambia Plc, Managing Director Manu Sood said the award would not have been possible without the unwavering trust of customers in Airtel as the preferred network provider. Sood said the growing Airtel customer base is further testament of continued customers’ trust in Airtel.

He said best Dividend Paying Company award from LuSE is a recognition of Airtel’s consistent and high dividend track record in recent past adding that Airtel is focused on serving customers, shareholders and communities as a responsible corporate.

“Over and above creating value for our shareholders, being a responsible corporate, Airtel has also been very consistent and focused on its CSR activities. Our CSR activities have always been centered on education for the under-privileged.”

He added that Airtel has been working collaboratively with Zambia Open Community Schools (ZOCS) and the Ministry of Education for the common objective of making an impact for the education of the under-privileged. “Airtel has supported schools in – Petauke, Choma, Kafue, Chongwe, Chisamba, Mwalubemba and Twalubuka.” He added.

Sood thanked LuSE and said it was indeed an honor and privilege to receive the award on behalf of airtel. “This award would not have been possible without the unwavering trust of customers in Airtel as the preferred network provider.”

The LuSE Corporate Governance Annual Awards are held to recognise listed Companies that have exceptionally adhered to the LuSE Corporate Governance Code amongst other listing requirements.  The 12th LuSE Award ceremony was graced by the Accountant General of the Republic of Zambia, Mr. Kennedy Musonda, representing (Minister of Finance – Dr. Situmbeko Musokotwane) and other dignitaries of LUSE and SEC.

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Airtel Networks Zambia has been declared WINNER

Tech

The imperative for the Zambian telecoms sector to diversify further and attract more players to deepen product innovation and competitive pricing may still be unmet as the fourth (4th) to be mobile network operator – Beeline Telecom trading as Zedmobile has declined to comment on allegations that they have failed to launch operations within the given timeframe, thereby breaching licensing guidelines.

Beeline was granted an operating license in February 2021 and had initially been set to launch commercial mobile phone services and operations in June of 2022 but encountered problems to meet the deadlines which was at the time blamed on Covid-19 and it’s related socio-economic impact.

Then later during the year 2022, ZICTA’s Manager – Legal and Regulatory Affairs, Banji Michelo confirmed that Beeline was granted an extension because they were unable to commence operations due to challenges with the procurement process owing to Covid-19. ZICTA then stated after Covid 19 concerns lessened that “but now the company will launch operations on January 31, 2023.”

And when contacted by the Zambian Business Times – ZBT, Beeline promoter Kelvin Hambwezya said he could not comment on the matter. When asked on allegations that the company has failed to adhere to licensing requirements to begin operations, Hambwezya however said he is not aware of any deadline regarding the commencement of operation, a position which is at variance with the regulator – ZICTA.  ZICTA has not officially confirmed the third extension from End of January 2023 to July 2023, a date that Beeline indicated during its launch event.

“Am not in a position to comment now and I don’t know what you are talking about, ukamba chani (what are you asking) who gave us that deadline – why ufunsa ine (asking me), ask them [ZICTA]?” questioned Hambwezya. Efforts to get a comment from ZICTA if a new timeline has been given to Beeline we’re underway by press time.

Beeline Telecom secured its operating license in February 2021 after Uzi Zambia failed to roll out a service, despite having received several extensions. Beeline opted to hold a launch event which was graced by Technology minister Felix Mutati, but actual operations launch date remains a mirage.

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The imperative for the Zambian telecoms sector

Markets

As if concerns that there is little to “no money” in circulation by most local businesses and households have not been loud enough, Zambia’s central bank – the Bank of Zambia (BOZ) has announced that it has raised the minimum statutory reserve ratio by 2.5%, a move that will further withdraw more money from circulation.

BOZ has justified its action by stating that the need to address the increased volatility in the exchange rate and safeguard the stability of the foreign exchange market far outweighs the adverse risks that this action may have on the economy. BOZ has also admitted to weak foreign exchanges coming back into the Zambian economy.

With effect from Monday, 13 February 2023, the Bank of Zambia – BOZ has directed that the minimum statutory reserve ratio on both local and foreign currency deposits, including Government Deposits, and Vostro accounts deposits, will be increased from the current 9% to 11.5% representing 2.5% infor all commercial banks. This means that Banks will be required to deposit money with BOZ which could have been made available and utilized by businesses and households, effectively withdrawing more money from circulation.

In a statement seen by the Zambian Business Times – ZBT, Deputy Governor Operations Francis Chipimo said the change in the statutory reserve requirements has been necessitated by increased volatility in the exchange rate which intensified in December 2022 and has persisted in 2023.

Chipimo said the revised statutory reserves ratio of 11.5 percent will be based on the weekly return of the selected assets and liabilities as of Wednesday 8, 2023. “This measure is aimed at addressing the increased volatility in the exchange rate which intensified in December 2022 and has persisted in 2023. The measure is also aimed at safeguarding the stability of the foreign exchange market.”

This weak supply in foreign exchange for Zambia Ian however an artificial one, that is a result of failure by successive governments (including the New Dawn Government) to negotiate with the foreign owned mining companies to remit back into the Zambian economy – a significant part of the copper export proceeds. If you look at copper production and export figures for both December 2022 and January 2023, it’s clear that the Zambian economy could be flush with forex.

BOZ blamed the continued depreciation of the Kwacha on weak foreign exchange supply amidst strong demand by market players for various purposes, including critical imports of fuel, medicines and agricultural inputs. The statement was however mute on how much forex inflows could be if Copper exports were to be remitted back into the Zambian economy.

Meanwhile, economist Kelvin Chisanga has attributed the measures by BOZ as being aimed at reducing liquidity in the market to curtail demand and reduce the inflation pressure, therefore limiting access to the kwacha. He said the current situation in terms of foreign currency markets – we see that the economy has faced a sustained poor supply of US Dollars on the market and the interventions that the bank of Zambia is making will help in the short term to make inflation anchor within the single digit.

In an interview with ZBT, Chisenga said the country currency has been depreciating and if the central bank does not take action to stem further depreciation (which has the biggest component and contribution to [imported] inflation), it may distort the economic variables that have been built so far.

Chisanga said his concern was that this move will further push interest rates upwards which will eventually hurt local businesses [and households]. High interest rates are a challenge to economic growth. “We are also looking forward to seeing better economics management and market discipline to a point where the country can attain price stability.”

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As if concerns that there is little

Uncategorized

The Oil Marketing Companies Association of Zambia has hinted that some reported incidences of persistent withholding of fuel in some parts of Lusaka and some fueling stations could be as a result of some Oil Marketing Companies- OMCs holding on to the product because of the tight profit margins which are not attractive.

Some oil marketing companies in some parts of Lusaka have opted to withhold their fuel and are telling customers that they have run out of stock when actually not. This is after the Energy Regulatory Board – ERB adjusted Fuel Prices Upwards by about 11%. For Petrol, the price has increased from K24.49 to K27.22 per liter and for Diesel from K26.44 to K29.85 per liter.

Reacting to indications that an artificial fuel shortage may emerge, the OMCs Association President Dr. Kafula Mubanga said OMCs have strived for some time with the tight profiting margins which has not been so attractive. He revealed that in January 2023, OMCs were making less than a Kwacha per liter, a situation he said was hard for business.

Dr. Mubanga said, “as of last month they were making less than a kwacha per liter which was a bit tough for business to run meaning the profit margins were not very attractive but of course with this review, we hope that we will have a little bit of an attractive margin that will inspire OMCs to bring in oil”

He said the current fuel pump price in the long run threatens national supply in terms of availability of the various oil products. “because you anticipate that these tight percentages of margin may lead to erratic supply, If our national storage levels are below 30 days of average demand volumes, it becomes a concern and the minister should be able to ensure that the national stock is reserved for at least not less than 15 days in the country.”

Dr Mubanga stated that OMCs are not able to sustain their businesses if they bring in fuel at UN profitable margins. OMCs have since appealed to government to continue consulting with OMCs in arriving at some of these key decisions. He however hoped that erratic supplies before and after the announcement of monthly fuel pump prices will normalize. We look forward to Government relooking at coming up with a slightly moderate pricing structure that will be more attractive for OMCs going forward.

Government has adopted a monthly fuel pump price review, a move that seems to be at odds with most businesses and households who prefer a historical quarterly review.

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The Oil Marketing Companies Association of Zambia

Uncategorized

When people take to social media and vent their frustrations, there have been accusations and counter-accusations that the complaints regarding the skyrocketing cost of living are being exaggerated to make the sitting government look bad, that its a smear campaign and based on the color of political lenses one is putting on.

Well, if we are to go by the maxim that numbers dont lie, the Governments own statistics bureau has released official figures that show that there has been a 40% increase in inflation or simply a 40% jump in prices of essential food and non-food items in Eastern Province within one month.

Official stats have revealed that the annual inflation for Eastern Province has jumped from 6.4% in December 2022 to 9% in January 2023, a month on month average price or inflation jump of about 40%.

A month on month increase of 40% in average annual prices of commodities and non-food items in the national basket is tantamount to an economic shock for most local businesses and households, a situation that needs urgent attention as incomes or salaries of the residents this region have not risen by that quantum within subsequent months.

Reacting to the report by the governments own statistics agency, Eastern Province Permanent Secretary – PS is of the view that the continued economic slowdown in neighboring Malawi may be a contributing factor to the increased inflation rate in Eastern Province.

Speaking in an exclusive interview with the Zambian Business Times – ZBT, Eastern Province Permanent Secretary Paul Thole said the increased inflation rate in the province is as a result of the filter through from the two bordering countries. “As you are aware that we are bordering two countries, Mozambique and Malawi and our economic activities [also] depends on what is obtaining in the two countries which could have led to the steep increase in inflation and prices of commodities.”

“It may be seasonal or we can say it’s a passing phase, and it will soon stabilizes because inflation in Malawi is quit high, so is Mozambique and as soon as the inflation in these two countries stabilizes, we may see also the change in inflation rate in eastern province.” Thole said the Province is however trying to put in place interventions that will normalize the situation in the province.

According to the Government official statistics, Eastern Province is among the provinces that had recorded steep increase in inflation rate for the month of January 2023 when compared to December 2022. Others Provinces that posted increased annual inflation rates include Central (8.4% from 7.2%); Eastern (9% from 6.4%); North-western (12.8% from 11.1 %).

However, some provinces recorded reductions in average prices between December 2022 to January 2023, monthly inflation rates dropped for Copperbelt (9% from 10.5%); Luapula (11.4% from 11.6%); Lusaka (10.4% from 10.9 %); Northern (8.9% from 11.1%); Southern (7.9 % from 9.1%); and Western (7.1% from 12.0%)

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When people take to social media and

Tech

Minister of Infrastructure has disclosed that the Construction of the long awaited Lusaka – Ndola dual carriage way road is expected to commence within two weeks. The key road has become a hell run with road accidents being reported frequently due to it’s bad state.

The start date of rehabilitation and construction of this very important road has been postponed about three times before but the minister has this time assured that it’s going ahead. Concerns have been on what rate the tolls would reach when the road is done via public private partnership – PPP.

Speaking in an exclusive interview with the Zambian Business Times – ZBT, Infrastructure Development Minister Charles Milupi stated that the major challenges that caused the delay in commencement of the construction had been the negotiations with the concessionaire.

He explained that from now onwards, there will be faster movement as the negotiations which were delaying the entire process, were concluded on the Friday 20th January 2023. Milupi told ZBT that the only remaining stage is to bring the documents together as per constitution so that the Attorney General can approve as a way of ensuring that all is within the law.

“Immediately the Attorney General gives an approval we shall officially announce and we expect that to be done within 1-2 weeks and then the Concessionaires will mobilize themselves to begin the process of working on the road.” He said.

When asked at what total cost the road will be developed, Milupi said, “we will announce when making it official but it is much less than what our colleagues had signed on off.

And with regards to continued extension of commencement date, Milupi said it was difficult to deal with the investors as they are coming to spend their money and needed an assurance that their investments were going to be safe. “First of all, we need to understand that private investors are coming to spend their money on a road and over a period of time they will be drawing back their money which is initial investment plus the marginal profit they would have made.”

“So in a way, they are owning that road and when you come now to negotiations, they look at the things that were once privatized like Zamtel and when the other Government came in and nationalised it, so these are some of the things that we were facing during the negotiation with the Concessionaires.” He said.

Milupi said it is not easy to deal with the matters like that but added that Government had reached a level where they had given assurance to investors adding that all this time government has not been idle but has been trying to negotiate with the investors.

He said it has taken longer than expected because it needed to be done properly. “If we had money, we would have done it a long a time ago but Government does not have money because the budget is too small as locally generated revenue is only about $6 billion.” He told ZBT.

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Minister of Infrastructure has disclosed that the

Mining

First Quantum Minerals – FQM says the official date for commencement of production at its projected $800 million annual revenue enterprise Nickel project in Kalumbila has not yet been set as the miner is still in the stripping process.

Speaking in an exclusive interview with the Zambian Business Times – ZBT, FQM Government Relations Manager Dr Godwin Beene said there has not yet been the official date set as they have not yet completed the stripping process as the team has not yet reached the ore bodies.

Dr. Beene who is also Zambia Chamber of Mines President, said the mine is currently operational as the plant is already built, the team is mining and sooner or later they will reach the ore body and then the plant will be commissioned once the ore is available.

He said the commissioning will be done in stages and will be done after running for three to six months just to ensure that the plant is stable before commissioning and also to build to a steady state operation adding that the project is delivering the biggest Nickel mine in Africa.

“So the process is you mine, then you strip, you go and throw away the soils until when you are in the ore body then you prepare to take it to the plant and process it and at that point, we must commission the processing plant and then the nickel in concentrate should come out.” He explained.  

He added that the launch of the processing plant will come at a time when all the all the people are trained and the plant is in a steady state operation.

FQM had announced on the 8 May 2022 that Enterprise Nickel Mine would be brought online within 12 months after the confirmation of an additional investment of $100 million to the $250 ‘enterprise nickel mine’ to bring the total investment to about $350 million.

The $250m Enterprise Nickel Mine which was officially launched by President Hakainde Hichilema in July 2022, is expected to create over 700 new permanent jobs.

Earlier ZBT had reported that once operational the project is expected to generate over $800 million which has the capacity to raise treasury income which part of the income will be channelled to support the free education policy.

Once operational, the enterprise will be on the top ten 10 global nickel mine producing 30, 000 tons of nickel in concentrate annually, which will make Zambia Africa’s pre-eminent nickel largest producer.

The company stated that the mine is expected to have an annual production of 30,000 ton per annum. With then Nickel spot prices of about $28,000 per ton, the annual revenues to be generated were expected to be about $810 million per annum, from a total reported investment of only $350 million

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First Quantum Minerals - FQM says the

Tech

After Zambia investing over $1 billion dollars in the past decade in upgrading its Airport infrastructure and relaunching it’s national airline, the next natural step is to start attracting more tourists and airlines into the country. One such initiative was to waive visa requirement from source countries.

Despite Government issuing visa waivers to now confirmed 43 mostly European Union – EU countries, arrivals from these very countries which were selected on the basis of being tourist source nations in the first month of implementation has dropped compared to the recent past two months.

According to the information made available to the Zambian Business Times – ZBT in an exclusive engagement with Immigration Department, the waivers for 43 countries which came in effect on the 1st November 2022 seems to have not been properly marketed by the Zambia Tourism Agency – ZTA.

When compared this month and to that of the last month in October 2022, arrivals into Zambia have reduced by about 20% to 12,213 from 15, 156 representing about 3,000 tourist reduction in the number of arrivals.

Responding to the ZBT query, Immigration Department Public Relations Officer Namanti Nshinka said the first month of November recorded 12,213 arrivals when compared to 15,156 recorded in the previous month of October before waivers came into effect.

The arrivals recorded in November is also below 14, 9991 which was recorded in September 2022. Nshinka however explained that this is because this period is an off season for tourist arrivals. He also mentioned that the statistics were from the 21 ports of entry connected to the Zambia Immigration Management System (ZIMS).

Government has waived visa requirements for 43 countries deemed to be a key source market for tourists. In an effort to jump start and exponentially grow its tourist arrivals, government proceeded to issue the waivers despite some of the listed countries not reciprocating the gesture.

No African country was however included on this list leading to questions being asked on matters of the veracity of the strategy and with some accusing the policy proponents of having a colonial mindset and totally ignoring the need to grow inter – African tourism.

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After Zambia investing over $1 billion dollars