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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

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