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The Zambia Tourism Agency – ZTA has clarified that the 3 million tourist arrivals ‘target’ by 2024 announced by Tourism Minister Rodney Sikumba is an aspiration.

ZTA told the Zambian Business Times – ZBT after a request that a breakdown year by year from 2022 be shared on how Zambia plans to reach 3 million tourist arrivals by 2024. ZTA stated that “there is no specific breakdown on a year to year basis of the projected 3 million tourist arrivals in Zambia by end of 2024”.

Minister of Tourism Sikumba announced plans to increase tourist arrivals in Zambia to three (3) million in 2024 from the current peak of 1.2 million per annum. The Tourism ministry further stated that they  will support events that promote tourist inflows in order to help achieve the target.

When contacted to give a breakdown of the target Minister of Tourism Rodney Sikumba directed the query to the Zambia Tourism Agency – ZTA who told ZBT that the 3 million was an aspiration.

The ZTA acting Chief Executive Officer Chavunga Lungu said the figures given by the Minister is a stretch mark. He added that the aspiration will be met after we get back to what the country had in the pre-covid 19 levels before 2019

Lungu said going by that projection, it would be good for the country to get into the 1.5 million tourist arrivals at the end of 2023 so that the number can be doubled by the end of 2024.

“We are working at that particular stretch which the minister did announce and we are putting in place strategies that will ensure that we get to that number which is the aspiration of the Tourism minister.” he said.

Lungu said among other measures being put in place, is to enhance the marketing strategies and ensure that the message reach out especially to countries known as key source markets. He said these are markets that generates the big numbers in terms of tourist arrivals that the country is looking for.

He said other strategies are recommendations from government through the minister of tourism that include the waiver of visa requirements and incentives being given to tourism sector so that there is a lot of investments in the sector to help realise the numbers.

“So yes it is a stretch and is something that can be definitely be realised so that is our initiative as the country to attract tourists”. When asked if it’s right for Zambia to waive visas for countries that are unwilling to reciprocate the gesture. Lungu stated that whether those countries decides to reciprocate or not, that is not our focus for now.

We are taking the initiative as a country and we have identified certain things that we need to do which are being put into the marketing strategies and Visa waiver is definitely one of those for Zambia to attract more tourists.” ZTA told ZBT.

The acting ZTA CEO however said it is not the government’s concern on whether the 17 countries with waived visas requirements [reciprocate], stating that they are sovereign states who make decisions on their own and choose who they decide to accept [via Visa waiver] in their country or not. “So I can only give information as far as what is it that we are trying to achieve as the country which is to attract [more] tourist.”

When asked to share how much revenue loss is expected from the waiver of visa to the 17 countries announced? Lungu stated that “I do not have the figures on what the country will lose out in terms of visa fees, but from a tourism point of view, the country will have potential to attract more foreign direct investments and forex.”

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The Zambia Tourism Agency - ZTA has

Lifestyle

Questions have arisen as to whether it is morally, intellectually or socially right for Zambia to proceed with the waiver of visa requirements for citizens of countries that are unwilling to reciprocate this gesture and continue subjecting Zambian citizens wishing to visit their countries to stringent and exorbitant Visa fees.

In an effort to jump start and exponentially grow its tourist arrivals, government officials have announced the waiving of visa requirements for about 17 countries deemed to be the highest source countries for its international tourist arrivals.

Minister of Tourism Rodney Sikumba has joined the 3 million target club which also has Minister of Finance Dr. Situmbeko Musokotwane who had earlier announced a 3 million copper production target. The only difference is perhaps that Dr. Musokotwane’s announce a target achievement period  of 10 years.

His counterpart, Tourism Minister Sikumba aims to hit the 3 million annual tourist arrivals target in 3 years. Sikumba announced that his ministry plans to increase tourist arrivals in Zambia from the existing peak of 1.2 million arrivals to 3 million in 2024.

Minister of Home Affairs Jack Mwiimbu confirmed at a media briefing that Zambia has waived visa for 17 countries that include, the United Kingdom – UK, United States of America – USA, Canada, Norway, Australia and New Zealand. Others countries are, China, Japan, South Korea, the Gulf States, Bahrain, Irag, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates – UAE.

But a Lusaka based immigration Consultant says the waiving of visa requirements for 17 countries is a welcome move as it will help to boost the economy from the spend expected from the increased tourist arrivals.

Reacting on the matter, Managing consultant of an Immigration consultancy firm Robson Mulawa said the waiving of immigration fees for a visa which currently stands at $25.28 would be offset by gains from increased tourist arrivals. He did not however have the number on how much revenue loss will emanate from this initiative.

Mulawa told the Zambian Business Times – ZBT that “It is okay [for government] to have waived the visa requirements, remember this has been done as a strategy to grow the tourism industry in Zambia and when tourists come in the country, they spend money and it has all the multiplier effects on the country.”

“It is a good thing and we do not need to compare what they are doing for us as it is us who are fighting to improve our own economy.” The Immigration firm Managing consultant said this has been done to increase the number of tourists coming into Zambia and when they come they spend money in the country a situation he reiterated that will help the GDP to grow.

Other experts have called on the minister of Tourism to reveal the revenue loss from this measure and advise how it will measure the gains other than just counting the number of tourist arrivals. If for instance, government currently collections as the immigration fee which currently stands at $25.28 for say 500,000 tourist arrivals, then we need to find ways to measure how these funds will be recovered.

There are also questions on the human relations principle of reciprocity, why offer citizens of a foreign country visa free access and entry into your country when they impose stringent and expensive visa requirements for your citizens? This is a moral issue that we shouldn’t  sacrifice on the table of revenue expediency

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Questions have arisen as to whether it

Lifestyle

The Zambia Police Service has disclosed that it cannot make public its findings following its investigations of the authenticity of a pornographic video clip that went viral which is alleged to involve current Drug Enforcement Commission – DEC Director General Mary Chirwa stating that the matter is before court.

Speaking in an exclusive interview with the Zambian Business Times-ZBT, Hamoonga said the matter was in court and the police can not release its report to the public. He however did not confirm if investigations have been concluded and a final report has been presented to the appointing authority.

Earlier in July 2022, a videos containing obscene materials showing a woman alleged to be Director General of the Drug Enforcement Commission Mary Chirwa emerged and went viral with calls for police to fully investigate the matter and avail the appointing authority a report to either convict or vindicate the DEC Chief.

The video was widely circulated on social media and via various WhatsApp blogs with many bloggers expressing disgust and calling for timely investigations and actions from the appointing authorities. Others called for her immediate resignation pending investigations, while others called for the sacking of the DEC boss due to the sensitivity and moral authority required in the public execution of the role.

Concerns are now emerging on blatant failures to live up to the maxim of the rule of law. Office holders for key investigative wings are required to be held by people of high moral standing. They should not just be of high moral standing, they should also be seen to be of high moral standing.

But it’s now about 3 months down the line after the Zambia Police service through its spokesperson Rae Hamoonga stated that Police were investigating the matter and the results have not yet been made public. These are some of the actions that risk resulting in loss of confidence in institutions of governance such as DEC by the general public.

Meanwhile Economic Front (EF) President Wynter Kabimba who took the matter to court said the matter is still active in court. Kabimba told ZBT that the matter is scheduled to take off on the 9th of Novermber 2022, stating that the complaint was launched after the Zambia Information and Communication Technology Authority ZICTA and the Police failed to respond.

He said the Police IG [and acting ZICTA DG needed to tell the public the truth about how far they had gone with investigations and whether they had ascertained that it was her (DEC DG Mary Chirwa) in the obscene video.

Kabimba is on record to have stated that since July 27, Zambians had heard nothing about the conclusion of these investigations but that on September 11 three women of Mindolo committed a similar offence but it was shocking that the following day they were picked despite the video being of poor quality.

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The Zambia Police Service has disclosed that

Markets

The Oil Marketing Companies Association of Zambia (OMCAZ) expected fuel pump prices for November 2022 to be maintained or adjusted downwards, but the Energy Regulation Board – ERB has announced an upward adjustment, perhaps demonstrating the widening expectations gap even between the industry players and the regulator.

Speaking in an exclusive interview with the Zambian Business Times-ZBT before the adjustment was announced, OMCAZ President Dr. Kafula Mubanga explained that OMCs are not expecting any upward adjustment for fuel prices from ERB owing to the fact that the Kwacha has been performing very well in the last few months.

Dr. Mubanga said [crude oil and finished petroleum] prices on the international market have not been escalated, in which case – it is anticipate that there won’t be any price adjustment adding that hopefully it will be maintained on the same trajectory or possibly adjusted downwards.

He said given the fundamentals of the market where the Kwacha performed well and the oil prices on the international market has not escalated, it is hoped that this will be able to result in the maintenance of the price or having prices adjusted downwards.

“You anticipate that with any adjustment upwards it comes with its own effects on businesses the cost of doing business is most likely higher but we hope that this month the government should look at the accrued benefits of Kwacha on the international market against the US Dollar and then be able to adjust the cost downwards or maintaining the cost given the fundamentals.” He said.

However, ERB announced a whooping 20% increase in Kerosene prices, a 7% and 5% increase in both petrol and diesel. This has left many stakeholders wondering why the prices have gone up. ERB is yet to release the breakdown or cost build up computation for a further detailed analysis.

And on the expected impact on pump prices following announcements that fuel blending will now be allowed in Zambia, Dr. Mubanga said the announced blending by the Minister of Energy Chibwe Kapala provides direction which if well implemented, can help reduce the pump prices in Zambia.

He however urged government to put in place specific measures that will prevent illegal and sub-standard blending, so that there is no illegal practice around it. “That the window will give us the feel of what sort of product we are going to have at the end of the day and that we can progress to blend more than the initial 10%”.

Stakeholders that include businesses and households have complained of the exhausting monthly fuel price adjustment which ERB and the Ministry of Energy insist is working for everyone, but some say it’s may be working for the government but not for its people or citizens.

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The Oil Marketing Companies Association of Zambia (OMCAZ)

Companies

The Zambia Revenue Authority – ZRA has been accused of selective payments of tax refunds after it emerged that some foreign owned mines Value Added Tax – VAT refunds liabilities are being  paid off regularly while that of locally and state owned mines such as Mopani Copper Mines are not being given the same treatment.

The Zambian Business Times – ZBT has received information that ZRA owes Mopani Copper Mines  about $110 million in VAT – refunds, but the rate at which ZRA is refunding the ZCCM IH majority owned mine is not as consistent when compare to foreign owned mines.

While Mopani is looking for the $300 million capital injection to revamp operations and make the mine profitable, the selective and slow payments of refunds from ZRA is not helping matters. Mopani new parent company ZCCM IH instead of floating shares on Lusaka Security Exchange – LuSE to raise the needed funds seem to favor the option of shading equity to some foreign investors and has engaged an advisor to endorse the decisions  to sell stake to a foreign equity partner.

When contacted by the Zambian Business Times-ZBT, to give their position, ZRA Corporate Affairs Manager Oliver Nzala said the law under taxation does not allow the authority to give information to the third party or the public. Nzala explained that due to confidentiality issues the authority does not give out information on whether Mopani is Owing to ZRA or the other way round.

When told that this is a public interest matter and that their is a risk of Mopani ending up in foreign hands when it can raise the capital on LuSE locally, the ZRA corporate affairs manager insisted that “We are unable to respond to your query due to the confidentiality provisions embedded in the legislation ZRA administers which stipulates the limited situations which permit such information to be divulged.”

Both Mopani Copper Mines Management and Mines Minister Paul Kabuswe have confirmed that Mopani needs about $300 million capital injection to make the mine fully productive and enable the company to complete its expansion project in a bid to double production.

Mining and finance experts have argued that the $110 million owed in VAT refunds which other mines are being paid may help reduce the deficit from the $300 million needed to make the mine profitable. It seems that the local management has been starved of capital so that ZCCM IH justifies its intensions to offload the mine back into foreign hands.

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The Zambia Revenue Authority - ZRA has

Companies

Reports have emerged that the Bank of Zambia (BOZ) has rejected the request to approve the merger between Access Bank Zambia and Atlas Mara Zambia, leaving affected stakeholders, clients and employees in limbo on the way forward.

An impeccable source with knowledge of the merger transaction stated that the request to BOZ to approve the transaction was tantamount to asking the regulator to approve an illegality. There are some serious insider dealing issues which BOZ is aware of which has made it difficult for the regulator to approve.

In response to a query from the Zambian Business Times-ZBT, the Bank of Zambia – BOZ has refused to confirm the report but instead asked that the affected banks confirm the status of the transaction. BOZ stated that as the supervisor of the financial sector with a mandate to safeguard financial system stability, BOZ does not provide bank specific information on supervisory and regulatory matters.

BOZ explained that in this regard, the relevant institutions or bank were in the best position to provide specific information. However, efforts to get a comment on the matter from both Access Bank and Atlas Mara proved futile by press time.

In 2021, Access Bank Group, straight from acquiring another local bank – Cavmont bank in Zambia announced that it had intentions to grow its Zambian business by merging with Atlas Mara. On 25 October 2021, the West African Bank announced that it would be merging its Zambian operations-Access Bank Zambia and Atlas Mara Zambia and the enlarged operation would be called Access Bank Zambia.

According to a statement seen by the Zambian Business Times-ZBT, Access Bank Group CEO Herbert Wigwe said, “This transaction is a milestone that brings us closer to our broader strategic objectives. The merger of Atlas Mara Zambia and Access Bank Zambia is expected to augment our presence in Zambia and the wider COMESA region”.

The Access Bank Group CEO also hinted that its newly recruited Country Manager Lishala Situmbeko would lead the merged entity, which effectively means that this may be at the expense of the Atlas Mara top management team.

Wigwe noted that, “We are excited with the increased earnings contribution from the enlarged Access Bank Zambia which has also appointed its new Managing Director Lishala Situmbeko”. This transaction is now almost one year and no approvals have been made by BOZ indicating that there are some reservations from the central bank.

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Reports have emerged that the Bank of

Tech

Stakeholders in the underperforming railway sector have demanded that Zambia Railways Limited-ZRL management should come out in the open and explain where and how the $120 million Eurobond that was injected in the company was utilised when the railway sector has remained in a deplorable state.

Speaking in an exclusive interview with the Zambian Business Times-ZBT, a source who asked to have their name withheld said a US$120 million Eurobond was injected to revive operations at the Zambia Railways Limited between 2012 and 2013 but up to date, nothing much has changed. The new UPND government should conduct an enquiry and inform the public on what really happened.

The $120 million Eurobond was given to Zambia Railways to undertake the rehabilitation of the track, purchase of locomotives and purchase of wagons.

“If the said three things were not done, then the money was misappropriated but only ZRL management and Government officials at the time should answer that question, because government has the resources to do a forensic audit”, the source said.

“When we asked if the Eurobond was used for the intended purposes, the response has been for anyone to go to Zambia Railways and see if any wagon or Locomotive was bought and if not, then the answer is plain for all to see. Secondly, was the track rehabilitated? Partially yes but speeds have gone down to 15km per hour on average” the source added.

Some stakeholders have noted that in essence, Zambia Railways has no track that can sustain the economic development of Zambia as at now and this explains the market share that the rail has of less than 10% meaning 90% goes to the road, which puts a lot of pressure on the roads.

The source mentioned that the state of the track right now is worrisome as there are no short to medium or long-term measures in place adding that the only measure is to have a wagonload of concrete sleepers put at strategic stations to mitigate and respond to derailments.

“Ultimately the medium to long-term action is to actualize the recapitalization process, Zambia Railways is in dire need of recapitalization to survive and the track must be given priority but we all want to know where the $120 million went or was utilized”, the source said.

The state of roads has become a major concern with more road traffic accidents being reported. The alternative to road travel which is more cost effective is the railway system, but this has also collapsed with trains having speeds of about 15km per hour, which are not viable. While other African countries have invested and upgraded to electric trains, Zambia does not seem to have a clear plan of action in this area.

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Stakeholders in the underperforming railway sector have

Mining

Minister of Finance Dr. Situmbeko Musokotwane has been challenged to come out in the open and give clear details and milestones on how realistic the aspiration or target for Zambia to hit the 3 million tons per annum copper production in the next nine years as he has continued to refer to it even in the 2023 national budget.

Top mining, economists and financial experts have questioned Dr. Musokotwane’s motive behind the continued reference to hitting the 3 million tons per annum copper production without supporting mining or exploration projects which are large enough to support such aspirations.

And the Centre for Trade Policy and Development – CTPD has also weighed in and notes that the budget speech mentions that the country needs to attain the three million metric tonnes annual target for copper production.

CTPD Senior Researcher – Extractives Webby Banda said “We cannot see any exploration and Mine developmental projects that will lead to the attaining of the three million metric tonnes copper production target.”

Banda said this is against the backdrop that we cannot attain the three million metric tonnes with the current producing projects only. He echoed other stakeholders that have admitted that the target is unattainable – stating that growing the mining sector to the level of producing three million metric tonnes from the current level means that we must grow the sector by almost three-fold.

“In other words, we must have additional three identical mining operations for every current project. Additionally, mining takes a long time to reach the exploitation phase (i.e., in the best-case scenario, it takes about 5 – 10 years).” he maintained.

“The other question that needs deep interrogation is that even with the current 800,000 tonnes of annual copper production, the country continues to face problems with illicit financial flows, transfer mispricing, lack of value addition, lack of backward linkages (local content), problems in major mines such as KCM and Mopani, so how will 3 million annual copper production be attained?”

Banda further told ZBT that even if Zambia increase Copper production to 3 million tons per annum, what is the guarantee that these problems above will be resolved to induce a surge in the local benefits take?

Finance Minister Dr. Situmbeko Musokotwane announced that government is targeting to increased copper production from the current 800,000 tons per annum to 3 million tons per annum in 10 years when justifying his decision to awarding tax incentives to the mining industry, a number that continues to be questioned by more and more experts.

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Minister of Finance Dr. Situmbeko Musokotwane has

Lifestyle

International governance watchdog local unit, Transparency International Zambia – TIZ has disclosed that the Electoral Commission of Zambia ECZ are to be blame for the record low voter turnout recorded for both Kabushi and Kwacha Constituencies on the Copperbelt.

The recently held Kwacha by-elections in Kitwe recorded a shocking 14% voter turn out while Kabushi of Ndola recorded another record low voter turn out of about 24%, a voter turn out that questions the credibility and community endorsement as well as representativeness of the final results.

Voters in the two constituencies as per inference from the final voter turn out, shunned taking part after it emerged that main opposition and immediate past ruling party – the Patriotic Front – PF candidates had been barred from re-contesting on legal and political technicalities, thereby denying the residents their right to pick leaders of their choice.

Speaking in an exclusive interview with the Zambian Business Times-ZBT, TIZ President Sampa Kalunga stated that there was a lot of what the institution termed as ‘political engineering’ which resulted into illegal activities taking place in the two constituencies.

“The two by-elections have left a big dent in the country’s democratic credentials and the quality of the justice system as there were a lot of political fighting between the ruling UPND and the main opposition PF.” he told ZBT.

Kalunga said the Kabushi and Kwacha by-election have made the courts look indecisive and very contradicting, we have seen that whenever the courts have tried to interpret the law, citizens have been left with more questions than they went with.

“We have seen where courts fail to give a clear no and a clear yes, a situation that has raised questions about the courts ability to deliver justice as they were meant to.” The TIZ President said the two by-elections have rendered the country’s democratic credentials, the courts and the justice system to be highly questioned and the perception of a number of people is that they demand for answers that are clear for all to understand.

“As much as we respect the courts, they have not lived up to our expectations as the by-elections have really damaged the reputation of all the key stakeholders.”

“We have become less – in terms of democracy during this time of by-elections in the two constituencies and also our courts have given us less confidence in the way they have handled the issues concerning the elections and further the ECZ itself has rendered itself to be questioned whether it is capable of being an impartial body that can handle the elections in Zambia fairly.” He said.

“President Hakainde Hichilema – HH was campaigning even before judgement was passed, this can be construed that he knew something before anybody else.”

“There is need for the governing UPND to learn that such behaviour were we see certain projects only being inspected during campaigns is leading back to the same system which used to happen in the previous regime.”

“We have also seen the government itself being overbearing we cannot do this, we have been over delayed tactical unfairly delays were somebody from the government cannot be present at the court so that they wait for the time to elapse.”

“The pain we having is being reminded of the same things that were happening in the previous government continuing happening under the UPND government.” He said.

The governing UPND won both constituencies amid what some have described as voter silent treatment that saw the elections being shunned. The UPND candidates total voter tally was too low to win such big constituencies, but’s its supporters contend that the low voter turn out shows that people are happy with the current government and that large turn out are for we’re their is a need for change of government.

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International governance watchdog local unit, Transparency International

Tech

Even as power utility ZESCO proposes to increase electricity connection fees among other proposed increaments in tariffs, it’s worrying to note that 70% of Zambia’s household are currently not connected to the electricity national grid.

According to the revelation by the Energy Regulation Board – ERB to the Zambian Business Times – ZBT, the official number of households connected to the national grid as at 30th June, 2022 was about 1.2 million.

When ZBT compared this 1.2 million households connected to the grid to a total of about 3.5 million households for the entire country using the official Zamstats average family size of 5.5 people and a national projected population of about 19 million people, this confirms that only about 30% of households in Zambia are connected to the electricity national grid.

This revelation puts state owned power utility ZESCO on the spot for its infatuation for exports when 70% of its citizens have no access to electricity at household level. The power utility despite this damning statistic has proceeded to request for an upward tariff adjustment of over 600%.

Responding to a press query from ZBT, ERB Corporate affairs Manager Kasumpa Namukolo said according to the report the regulator received from ZESCO as at 30th June, 2022, the official number of households connected was 1,177,699 (about 1.2 million) compared to 1,154,409 recorded at the end of quarter 1 of 2022.

She however said the breakdown of customers connected to the grid by province, district or constituency ward level, could best be obtained from their licensed grid connected distribution companies. This is despite the fact that universal access to electricity is a fundamental objective of any responsible ministry of energy as well as ERB.

“Though as a regulator, ERB has no direct role in connecting households to the grid, the Board guarantees that licensed distribution enterprises are appropriately compensated through a reasonable tariff or connection charges, which ensure growth in extending the grid and/or connecting more districts.” She said.

Kasumpa explained that Key to the ERB’s mandate is to ensure that the electricity is financially and technically viable through implementation of regulatory practices that promote investment in the sector in line with Government policy.

She said ERB is mandated under the Electricity Act No.11 of 2019 to secure a regular, efficient, coordinated and economic supply of electricity and also to facilitate universal access. Kasumpa however mentioned that ZESCO and Rural Electrification Authority (REA) are the two key institutions working in collaboration with the Ministry of Energy undertaking a number of projects to ensure that more districts are connected to the grid.

ERB stated that some of the projects being undertaken include the Lusaka Transmission & Distribution Rehabilitation Project (LTDRP) – Last Mile, Electricity Services Access Project (ESAP) and Sustainable Electricity Supply Southern Division (SESSD) among other projects.

When separately contacted to give the official number of districts connected to the national grid, both the Rural Electrification authority – REA and the Copperbelt Energy Corporation – CEC referred ZBT to ZESCO who had not responded by press time.

Analysts say putting up of electrify infrastructure and connecting all districts and achieving over 90% connections to the electricity national grid for all households in Zambia is as important as putting up road and other essential infrastructure necessary such as schools and hospitals for national development.

The increased allocation to REA is a welcome move which should be followed up by clear objectives such as how many districts will be connected in 2023 and what timelines are attached to when all the 116 districts are connected to the national grid. Agro development which rely on irrigation for instance and general Industrial Investments in most districts and the hinterlands of Zambia are hindered by lack of reliable source of electricity.

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Even as power utility ZESCO proposes to