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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

Uncategorized

President Hakainde Hichilema – HH has facilitated the signing of a landmark energy deal that has potential to transform the Zambian energy sector if implemented. The Zambian owned Power Utility Company ZESCO has signed an agreement with the United Arabs Emirates’ Company Masdar to develop Solar Projects worth $2 billion.

Speaking when witnessing the signing of a Memorandum of Understanding (MoU) and a landmark Joint Development Agreement (JDA) between Zambia and the United Arab Emirates Hichilema said the MoU is aimed at facilitating massive investment in renewable energy in Zambia.

He said the MoU and JDA will see ZESCO partner with MASDAR, a key investment funding entity of the United Arab Emirates (UAE), to form a joint venture in developing and deploying large scale solar projects across the country, estimated at US$2 billion.

In a statement seen by the Zambian Business Times – ZBT, the Zambian president Hakainde Hichilema said this is not a loan but a capital injection or investment in which the Zambian people, through ZESCO, will be partners in shareholding.

He said the projects shall be undertaken in a phased manner, which will commence immediately, starting with the phased installation of 500 megawatts.

Hichilema said once completed, the projects will result in an additional 2000 megawatts of electricity in the country, within the next few years.

“The historical significance of this project [if implemented] is that, in the last 58 years of our independence, the country only developed 3,500 megawatts of electricity. This remarkable investment shall bring in the much needed 2,000 megawatts, within a shorter period of time.”

President Hichilema added that with the projected increase in electricity supply, Zambians shall be assured of even more accelerated economic development and increased employment opportunities.

Some energy experts say Zambia should consider setting up a uranium powered nuclear power plant that can generate enormous amount of power that would make the country a net exporter. Zambia has reported findings of local uranium deposits that could be exploited for such an ambitious venture.

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President Hakainde Hichilema - HH has facilitated

Companies

The Itezhi Tezhi Hydropower Project (ITHP) that is capable of supplying 120MW of power generated to ZESCO has confirmed that the company is only generating 80MW due to low water levels.

Speaking in an exclusive interview with the Zambian Business Times – ZBT – ITHP Chief Executive Officer Moses Mbuta said this is due to low amount of water in the reservoir lake and river.

Mbuta said the current produced 80MW of power is being supplied to ZESCO and could not mention how much power is supplied per megawatt.

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

“Even if there is demand, if the water is not enough, there is nothing else that we can do as we can only generate according to the water that is there.” We are in the season when we are filling in the reservoir and going forward because of the water which is increasing, will also start increasing the generation  

He said the trend cannot be curbed because of low rainfall that has been seen in the recent passed which he said is a natural cause.

Zambia is still grappling with constrained electricity generation from hydro power due to what a lot of producers are referring to below water levels in the reservoirs.

According to electricity producers, there are low water levels in major rivers on which dams have been constructed to generate electricity a situation which has resulted in less power generation in the country.

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 in this era of load shedding.

Already Zambia is rationing electricity to domestic and commercial users. Earlier, the Zambia Electricity Supply Corporation Limited ZESCO, imposed a 12 hours (divided in two) power cuts at various times of the day to save water in the dams of the reservoirs.

The hours of load shedding have since been officially reduced from 12 hours a day to 8 hours a day, though some high density residential areas insist that the hours of load shedding are way beyond the half day announced. Some areas say ZESCO has been using the excuse of routine maintenance works to cut power for over half a day.

Meanwhile, experts have said that the lack of reliable power is hitting Zambia’s economy as people struggle to make a living without electricity for half a day even as the power utility continues to export. Jobs mostly in the local small and medium enterprises – SMEs are at risk of being lost with some local businesses facing eminent closure.

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The Itezhi Tezhi Hydropower Project (ITHP) that is

Lifestyle

Chief Justice – CJ Dr. Mumba Malila has disclosed that there is no new laws were promulgated by the new dawn government with respect to bail. The CJ however has urged all adjudicators in various courts across the country to support bail applications at all the times and ensure that the conditions set are not unduly onerous or impossible.

Responding to an enquiry by the Zambian Business Times – ZBT – on implementation of bail pronouncement of the [New Dawn] Government and whether the Judiciary was in a position to confirm that the practice is now embedded in the system, Dr. Malila said, the Judiciary has its own practices with regard to the granting of bail which is anchored in the provision of the law, particularly the constitution and the criminal procedure Code.

Getting bail on time as well as improvements in timelines for issuance of police bond has been abused by successive governments in Zambia leading to new extra-judicial punishments being meted on suspects in the abscence of a competent Court judgment. The new dawn government has been expected to put up new laws to fulfil this campaign promise.

The CJ disclosed that no new laws have been promulgated by the new government with respect to bail as according to his knowledge the appeal is that the Courts should grant bail more liberally than hitherto been the case.

“The position is that the law has not changed and individual Judges and Magistrates still have to make individualised consideration as to the appropriateness of granting bail and the conditions attaching to such bail.” He explained.  

The Chief Justice Dr Malila said all adjudicators are however urged to ensure that bail conditions are reasonable at all times and are not unduly onerous or impossible.

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Chief Justice - CJ Dr. Mumba Malila

Companies

The Lunsemfwa Hydro Power Company Limited (LHPC) has confirmed that it is not supplying power to the state owned power utility company ZESCO due to historical and long outstanding debts. This follows questions being asked on whether there is an artificial deficit that has resulted in domestic load-shedding why power exports continue.

LHPC, which is the first independent power producer – IPP in Zambia with a total installed capacity of 56 MW and has the capacity to contribute to cutting load shedding in Zambia’s and improve the regions power production via renewable power production, perhaps gives a test case as to whether more investments by IPPs could help end load shedding in the medium term.

Speaking in an exclusive interview with the Zambian Business Times – ZBT – LHPC Chief Executive Officer Alpha Mwale said before the production was suspended, most of the power produced was consumed or up-taken by the Copperbelt Energy Corporation – CEC.

LHPC revealed that even before it suspended production because of low water levels in its two reservior dams, it wasn’t not supply ZESCO due to long outstanding debt. A Check by ZBT has also revealed that ZESCO has a huge debt with coal fired Maamba Power plant, which has made the company operate at “half capacity”.

Mwale said ZESCO is one of their customers but of late, they were not supplying to the state owned power utility company and most of the power produced about 20 – 30 MW depending on the hydraulic condition was being consumed or off-taken by CEC.

He said this is due to some historical debts which ZESCO had accumulated and LHP needed ZESCO to clear the debt, a situation he said ZESCO has been slowly clearing in the recent past.

He however could not mention how much is still being owed now by ZESCO on what could be termed as confidentiality requirements with LHPC stating that the state owned power utility Company has been paying every month and there was need to have updated figures.

Mwale added that resuming of full production is expected in the First week of February 2023 and they should be able to commence production with 40MW and then within the same month, they would be able to do full load of 56 MW.

Meanwhile Mwale said chances are very high that this time around, they will be supplying power to ZESCO because of the payments they have been making in the recent past.

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The Lunsemfwa Hydro Power Company Limited (LHPC)

Highlights

The Department of the Immigration has clarified that visa waiver apply to a total forty-three (43) countries contrary to earlier reports that had indicated that only about 17 countries had been awarded. This move has made zambia one of the most liberal countries to visit.

However, the move has also attracted concerns that Zambia has awarded visa waiver to countries not willing to reciprocate, a scenario that questions the countries ability to negotiate and value its sovereignty. Others say the fact that no African countries have been included on the list, speaks volumes about the loop sided thinking of policy makers.

Responding to a Zambian Business Times – ZBT press query, Immigration department Public Relations officer Namanti Nshinka confirmed that they are actually 43 countries in which visa waivers apply.

Nshinka told ZBT that visa policies are the primary instrument for regulating and controlling immigration. “In our case, we have three categories of immigrants’ vis-à-vis visa requirements. Firstly, we have countries that do not require visas to enter Zambia (visa-free countries). Secondly, we have those that can get visas on arrival or at the Zambian Missions Abroad, and thirdly, those that require pre-approved visas (referred visas) before traveling to Zambia. The second and third categories may also apply for their visas online.”

He explained that the underlying idea of requiring people to have a visa before entering the country is for the Department and other law-enforcement agencies to carry out pre-arrival security screening to determine the traveler’s suitability to enter the country. “In other words, the visa requirement before travel prevents people from starting their journeys without prior permission.”

The 43 countries that have been recently included are;

1Australia13Finland25Luxemburg37Slovenia
2Austria14France26Malta38South Korea
3Bahrain15Germany27Netherlands39Spain
4Belgium16Greece28New Zealand40Sweden
5Bulgaria17Hungary29Norway41The United States of America
6Canada18Iraq30Oman42United Arab Emirates 
7China19Ireland31Poland43United Kingdom
8Croatia20Italy32Portugal  
9Cyprus21Japan33Qatar  
10Czech Republic22Kuwait34Romania  
11Denmark23Latvia35Saudi Arabia  
12Estonia24Lithuania36Slovakia  

Nshinka said it must be noted that only seven (7) countries, Bahrain, China, Iraq, Kuwait, Oman, Qatar, and Saudi Arabia, of the Forty-three (43) countries in the visa-waiver list previously required prior permission.

He said Ireland was already in the visa-free category, while the other thirty-five (35) could get visas on arrival.

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The Department of the Immigration has clarified