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The Zambia National Association for Saw Millers says cheap timber from Malawi and Tanzania has continued to flood the Zambian market due to lack of regulatory policies.

Association Secretary General Derick Chilatu said government feels the country does not have sufficient timber to meet the country’s demand therefore it cannot regulate imports which is very disappointing as the country has sufficient timber to meet the demand.
Speaking in an interview with the Zambian Business Times-ZBT, Chilatu said the Association was hoping government would take a stand on the matter and protect the local market but government is not interested for one reason or the other.
“I was advised that government feels there is no enough timber to satisfy the market, which is not true, which is not the case. I don’t think they have been on the ground to find out because the Copperbelt where most of that soft wood comes from is flooded, it’s so flooded our members have nowhere to sell their timber to and yet Forestry department maintains that they have no capacity to satisfy the market which is very wrong”, he said.
Chilatu explained that the timber from Tanzania and Malawi is substandard because some of it is genetically modified and is not grown according to ethical forest procedures adding that there are certain procedures that need to be followed when one is growing trees for commercial purposes but the farmers that are growing timber in those two countries are not following the procedure.
“The timber that is grown by the statutory government institution of Tanzania is very expensive and it doesn’t come to Zambia. The timber that comes to Zambia is substandard because it can’t be exported because it’s not grown according to forestry ethics so that’s how come it’s cheaper”, he said.
He mentioned that the landing cost of that timber in Zambia is around K100-K110 for a 50 by 150 therefore even if it is sold at K150, one is able to make a profit but the locals are buying very expensive timber from the Zambia Forestry and Forest Industries Corporation (ZAFFICO) and cannot compete with that price.
“So when we move timber from the Copperbelt to Lusaka, our landed cost is K150 so that’s what makes it very difficult for us to compete with that timber and most of our customers were coming from the Congo to the Copperbelt to buy timber but now what has happened is that the Tanzanian timber is proving to be cheaper so they would rather go to Tanzania, we are losing out on business and forex”, he said.

The Zambia National Association for Saw Millers

The Association of Microfinance Institutions in Zambia (AMIZ) says it expects the 2023 national budget which Minister of Finance and National Planning Situmbeko Musokotwane is scheduled to present tomorrow, 30 September 2022, to address the dismantling of local debt.

Association Executive Director Webby Mate said most microfinance customers are people who participate in the local government debt so it would be beneficial for government to continue dismantling the debt as this will start putting money into the economy.

Speaking in an interview with the Zambian Business Times-ZBT, Mate said once government starts putting back money into the economy; it will contribute to growing the economy and ultimately attain some of government’s objectives such as achieving the 3% growth.

He noted that the cost of doing business has always remained high therefore; government should work on pronouncements that will help address the matter and bring down the cost of doing business.

“The major issue was debt, which government has taken positive steps in addressing and as a result we have seen inflation trending downwards, kwacha strengthening though not very much because of developments elsewhere. The dollar is becoming bullish so other currencies are beginning to suffer and the kwacha will not be spared also, within the confines of our economy, all this has happened because of the positive steps government has taken”, he said.

Mate mentioned that the association wants to see government continuing with infrastructure development because microfinance customers are business people who travel on roads to get supplies and deliver supplies.

“The state of the roads is very worrying right now and the rains are yet to come so after the rains these roads will even be in a very bad shape so we hope government can begin to move in that direction, fixing some of these roads”, he added.

He said so far, “The 2022 national budget has generally performed well, given the fact that in June this year, government requested for the approval of a K22 billion supplementary budget to spend money they claimed they had saved”.

“This means the budget has performed well than people expected, we have free education, the issue of CDF, the Ministry of Local Government is always announcing when a quarter comes and when it has been disbursed. They are managing their flows well and we can only encourage them to continue doing the same as they plan for 2023”, Mate added.

 

 

 

 

 

 

 

The Association of Microfinance Institutions in Zambia

Editorial

Today, Zambia is dogged with a steep youth unemployment crisis. The recent 2022 census recruitment circus we witnessed in Zambia was just but an eye opener to those who care to discern, on how deep and crashing this problem is.

The fact of the matter is that the Zambian economy today is not creating enough jobs to satisfy the increasing number of youths completing secondary, college and university education. The population is on an aggressive rise for the next two to three generations to come.

Some thought that with a change of government, this problem would be sorted out in the shortest period of time. As a the first year of the new Dawn UPND Government has passed on, its now more clear that the problem of youth unemployment is BIG, is humongous and needs unconventional solutions.

Some youths and to a larger extent, some experienced hands alike thought that this youth unemployment crisis was a creation of of the then PF government, and that a UPND government would sort it out at a breakneck speed. Alas, it’s still very visible even to the most passive of our citizens.

Well, as they say, the jury is still out and too early for us to judge as we still have four more years to see how the new dawn administration will deal with this unemployment crisis which is far much more complex than what entrenched politicians would ever publicly admit.

Actually, had it not been for the high poverty levels and limited opportunities, some of the new appointees in the current government who are honest enough would by now have started resigning on their own after getting to terms with the depth of the problems and their ability to solve the them in the constitutionally mandated five year term of office.

But we should also be honest that genuine attempts have been made to create jobs by the new dawn government. Even as we recognized and commend the current government for employing about 40k education and health workers into the civil service, the state of youth unemployment remains at crisis level.

No wonder our statistic agency stays away from publishing this number in their monthly bulletin headlines despite the statistic being more important to gauge the economic health of our economy at this time of having the majority of our citizens being youths.

That’s why we are seeing more and more well meaning citizens coming to terms with the fact that the economy is simply not creating enough jobs and that this deep problem of unemployment were our young people are resorting to betting as a means to make a living needs unconventional solutions which may not even be attainable in the short to term.

We say this because we now have an estimated 200k (200,000) plus new graduates or job seekers that include school drop outs, secondary schools, trade schools, colleges  and universities on a yearly basis joining the hunt for the few available jobs, making the queue longer and longer every three, to six to twelve months.

One tested way to create massive employment opportunities is to industrialize the economy. To industrialize an economy, analysts say Zambia only lacks one major component as the country is already well endowed with huge land mass, expanding population of labour and enterprising citizens. What the country lacks is adequate and excess affordable power or electricity to attract global industrialists capital to set up.

One unconventional solution that has been suggested for Zambia is to set up nuclear power plants and generate massive energy that could be used to attract large scale industrial producers and export of excess power. There is need to critically look at this option that offers to transfer this technology to Zambia through Rasatom or any other well established global player. Considerable progress was made on this bilateral deal but it seems to have been put on ice.

For your own information, the UK is reported to have over over 8 commercial nuclear power plants, France has over 56, US has over 55, Russia has over 35, China has with Ukraine being also a major Nuclear power producer. Suffice to say, most notable industrialized economies including our very own South Africa in Africa has power generated from commercial nuclear power plants.

Zambia has notable reported local Uranium deposits that can be exploited for commercial and energy purposes, a situation that can turn around Zambia’s current power production of over 3,300 MW to some thousands of Giga Watts, a scenario that would be used to attract large scale global manufactures, industries with the excess being offloaded onto the export market.

You may argue that we don’t need nuclear power plants to develop, to industrialize and create mass employment, to solve the huge youth unemployment crisis which is now threatening to make the country’s politics and social life toxic, but a check around the countries that are ahead economically shows a different picture, they actually have commercial nuclear power plants and their total annual power production figures are 100 times more than what Zambia currently produces.

The above is just one of the unconventional ways that have been put out. Dear reader, feel free to contribute by commenting on this article or sending an anonymous email on what other unconventional of extra-ordinary solutions that Zambia should pursue. These business as usual incremental actions have limited impact to radically move the country to the next level.

What is perhaps clear to the initiated is that something extra-ordinary, something unconventional needs to be done by those that hold the collective power of the state, by those that hold sway of the highest office of the land.

Even as time moves on, as greed and familiarity sets in, as the new dawn government presents its second national budget, it will soon dawn even to the most loyal and optimistic nationalists that even the much hyped IMF facility is but just a drop in the ocean of the complex challenges that beseech our beloved country Zambia and its geopolitical position.

The need for extra-ordinary and unconventional solutions is now more urgent than ever before. The levels of youth unemployment is alarming and needs immediate attention. Do we have any policies that have been put out by the HH led government that we should expect will create massive employment opportunities for our youths to close the widening gap? 

For anonymous comments and contribution, email: editor@zambianbusinesstimes.com

Editorial Today, Zambia is dogged with a steep

As Zambia’s President Hakainde Hichilema – HH announced that he had struck a deal that will see high speed satellite Internet services extended to Zambia by US firm Starlink, however – questions have arisen as to whether the deal also took care of the service access cost and monthly subscription charges which are reported to be a premium service above the average earnings of the majority of Zambians.

A check by the Zambian Business Times – ZBT reveals that Starlink is on an Africa penetration drive with its services set for start in Nigeria and Mozambique in 2022. Starlink has also confirmed that it is setting up shop in Burkina Faso, Cameroon, Chad, Ghana, Mali and Niger in 2023, time that has now also been indicated for Zambia.

What is troubling most analysts is the affordability of Starlink Services. Americans pay $110 (about K1,600) per month for subscribing to its fast internet services, a price point which in Zambia may only complete in the local and multinational Corporates business market.

In Nigeria, during its pilot launch phase, the US firm started with connection fee of $99 with monthly subscription expected to be at $100 per month, a price point which even some well to do Nigerians have indicated is too high for the African market. It remains to be seen if the Zambia deal has some sweeteners that will make the service.

However, the Information and Communication Technology Association of Zambia (ICTAZ) says it will support government’s vision of providing high speed internet to all citizens. Zambia currently has Airtel and Paratus among the top ISPs who provide internet service providers and these companies will need to go head to head with Starlink for the local and international Corporates market share.

Speaking in an interview with the Zambian Business Times – ZBT, ICTAZ President Clement Sinyangwe said there must be intentional strategies put in place to ensure the right professionals are equipped with the training, skills and infrastructure to adopt new technologies.

Sinyangwe mentioned that Zambia is on track to achieving the goals of becoming a digital economy and that the local ICT sector is up to the task. “Zambia currently has trained ICT professionals that contribute in various sectors of the economy on a daily basis”, he said.

“We welcome the pronouncement made on introducing high-speed internet to the entire country by means of the Starlink services because this will see the expansion of internet service provision and contribute to the general growth of the economy.”

This follows HH meeting with Starlink Business Operations vice-president Chad Gibbs. During the meeting, partnership possibilities for high speed internet in Zambia was discussed with the President highlighting Zambias Government’s intention to adopt technologies that will enhance revenue collection by eliminating manual processes.

The President indicated that full digitalisation of services would require universal internet to ensure that all concerns around revenue leakages and inefficiencies in service delivery to be a thing of the past. In a tweet, SpaceX founder and Chief Executive Officer Elon Musk said he looks forward to providing the Starlink service to the people of Zambia. Starlink has so far gotten regulatory approvals for its operations in Nigeria and Mozambique.

As Zambia’s President Hakainde Hichilema - HH

Following wrangles at Mopani Copper Mines (MCM) and Konkola Copper Mines (KCM), the Copperbelt Province is in shambles and Copperbelt Province Minister Elisha Matambo has called on investors from all sectors to consider investing in the province as a way to face-lift the region.

Speaking in an interview with the Zambian Business Times-ZBT, Matambo said Copperbelt Province is blessed with good soils for agriculture and almost all the minerals as well as tourism sites.

The Minister said investing in the Copperbelt Province would mean that the cost of doing business would be low as the land has nearly everything.

“I can guarantee that the environment is conducive in terms of security for any investor as there is law and order,” he said.

He explained that the wrangles at both Mopani Copper Mines and Konkola Copper Mines should not discourage investors adding that the disputes at both mines will be sorted out soon.

Matambo said very soon, government would be making positive pronouncements concerning the two mines, which will be an added advantage to whoever would want to invest in the Copperbelt Province.

The Copperbelt Province Minister has since encouraged businesses on the Copperbelt not to lose hope as government is working on resolving the major challenges affecting the province, which include KCM and Mopani squabbles.

 

 

 

 

Following wrangles at Mopani Copper Mines (MCM)

North Western Province Chiefs who had earlier demanded for a minimum of 15% share from First Quantum Minerals – FQM Kalumbila mine revenues and other mining firms harvesting minerals from their chiefdoms have expressed confidence that their requests will be granted by Zambia’s head of state – President Hakainde Hichilema – HH.

Chiefs in North Western province who are the original and rightful custodians of the wider community interests of the people of the province had asked the Zambian government to award at least 15% of the revenue collected from the mining activities in the province to be re-invested in the province to facilitate development as well as enable the local people benefit directly from their God given wealth which they occupy.

Speaking in an exclusive interview with the Zambian Business Times-ZBT, Chief Mumena, a prominent Chief from North-Western Province said the head of state assured the traditional leaders that he will respond in due course as to give direction on the matter.

Chief Mumena said, “Am confident that the head of state will grant our request for one reason, the head of state has been present advacote for local community empowerment and beneficiation of the local communities that are hosting these entities.”

“And I know that this is not only the position of the North western Province, but it should be the position of every province in the country as all the ten provinces stand to benefit from the implementation of such a policy,” he said.

Chief Mumena said the assignment is critical to the Communities and the country at large as it addresses the issue of mining revenue and the local benefits to the host communities in north western province and the country at large.

“It is just a matter of time, this thing will be done and we are anxiously waiting because we know it is going to help local communities and it is also going to help mitigate the other sufferings that are brought about by industrialization.” He added.

Earlier during an engagement meeting with President HH ahead of the ground breaking ceremony of the the $800 million Nickel Enterprise Mine, the Kalumbila Chiefs on top of the 15% revenue share further asked for a minimum of 5% equity share for the local host communities.

The Chiefs argued that the basis of getting such an equity stake would go into helping the locals in the sense that these are communities that are losing out on the land, water resources, hunting grounds, livelihoods etc that the mining companies have since taken over.

North Western Province Chiefs who had earlier

Editorial
We have received information that some senior staff at power utility ZESCO in cohort with some corrupt politicians in government are still pursuing the route to importing wooden poles from companies based in South Africa and Zimbabwe despite clear indications that these poles can be sourced locally at cost effective prices.

One of the problems these corrupt and rent seeking people disguised as public leaders have drugged their feet to source from ZAFFICO is that the company is now publicly listed and it is very difficult to get kickbacks from transacting locally.

ZAFFICO by its listing on the Lusaka Securities Exchange – LuSE makes the company subject to report significant transactions publicly. Which basically threatens to make the transaction be done at an arms length with transparency. Even if interests at ZESCO and their sponsors try to overprice the poles deal with say ZAFFICO, all the money will flow into ZAFFICO’s audited accounts.

When we as Zambian Business Times – ZBT asked the ZESCO management team why they opted to import when they could easily and cost efficiently source from local suppliers cutting off import duties and transportation costs, we were told that ZAFFICO has no capacity to supply the quantities needed.

However, when we put this question of capacity to ZAFFICO, they simply restated as even publicly indicated on their website that they have an annual capacity of producing over the total number of poles that ZESCO intends to import.

ZAFFICO at their Pole treatment plant which adds value to Eucalyptus logs located in Kalulushi on the Copperbelt Province, has capacity of producing 140,000 treated poles per year to meet the Country’s demand for treated poles such as power transmission, fencing and construction poles.

When we further checked with ZAFFICO on ZESCO allegations they they are failing to deliver and have an outstanding order with ZESCO, ZAFFICO indicated that the pole treatment process and seasonality of harvesting means that deliverly of poles can not be done in one day, but with planned ordering and procurement, the forest and timber company delivers the indicated 140,000 per annum.

Any sensible and sober person can see that it’s ZESCO’s procurement interests and graft tendencies that have created an artificial requirement for one time bulk deliverly to justify the requirement for imports. To create a scenario that ZAFFICO and other local suppliers can not meet the requirement.

In fact, you can even see that if this order was given early in the year to ZAFFICO and other local suppliers, the poles required would have been delivered in batches and finished by the third quarter or now as we proceed into the last quarter of 2022.

If ZESCO wanted to increase the delivering due to limited monthly capacity of the treatment plant at ZAFFICO, they would have even backed the forest company to expand its treatment plant, a process that can be undertaken within the year.

Moreover, turning this into a local purchase order by ZESCO will stop the unnecessary forex outflow from the country. Zambia’s currency is always under pressure because of continued preference to import even on items that can be sourced or manufactured locally.

Our informed advise to ZESCO is that go and sit down with LuSE listed ZAFFICO and come up with a deal that is in the interest of Zambia. This deal will just burn your fingers and ruin your personal financial futures. The examples are many of some of your predecessors who have now become even more familiar with court processes and procedures than even some our lawyers working in Corporates as company secretaries or legal advisors.

Our reminder to some few selfish ZESCO senior management team members who are pushing for this deal, is that today, you may feel entitled to abuse public resources, to be powerful and allow yourselves to be used to push corrupt political agents agenda’s to get cuts or rents from questionable deals, but when tomorrow comes, you will be made to account. Some will end up even spending more than they will get from such deals defending themselves in court, while others will end up in Jail.

Editorial We have received information that some senior

National Action for Quality Education in Zambia-NAQUEZ has appealed to government through the Ministry of Finance to allocate at least 20% of the 2023 national budget to the education sector in order to address the challenges the sector is facing.

Speaking in an exclusive interview with the Zambian Business Times-ZBT, NAQUEZ Executive Director Aaron Chansa said the sector needs more money if the quality of education is to be enhanced.

Chansa said the Ministry of Finance should bear in mind that many learners in classes need more desks, books, and computers and there is need to build more houses for teachers, which requires a lot of money.

He said out of the entire national budget, the Ministry of Finance should ensure that 20% is allocated to the education sector.

Chansa stated that, “Even the regional treaty like the SADC protocol of education advises members to at least spend that amount on education”.

He noted that previously, the Ministry had allocated only 10.4% towards the education sector, which is insignificant, therefore the need for a better allocation in 2023.

Chansa also mentioned that many teachers have been complaining about not having adequate learning materials, which has resulted in teachers being overworked therefore the need to ensure teachers are provided with the necessary materials which will also ensure pupils receive quality education.

 

 

National Action for Quality Education in Zambia-NAQUEZ

Oil Marketing Companies Association of Zambia (OMCAZ) says blended fuel will be cheaper for consumers and will allow the country to save resources.

The Energy Regulation Board (ERB) has developed and approved the technical specifications for blending fuels in Zambia.

Association President Dr. Kafula Mubanga explained that blended fuel is expected to be cheaper because producers will be using local materials to blend, which reduces the cost of production as well as the cost of doing business and attracts more labour in terms of production thereby creating jobs and providing affordable products as well as competitive products.

Speaking in an interview with the Zambian Business Times-ZBT, Mubanga said there are many blending materials that can be used to blend fuels including ethanol.

“You are blending so if you are importing 50% of products then the other 50% is as a byproduct of blended material, it means your importation cost goes low and the rest of it goes towards empowering your local materials for blending purposes”, he said.

He noted that many companies have applied for licenses, which will enable them to blend fuel and make it available to consumers.

Dr. Mubanga added that blending fuels requires a lot of investment because a plant is required therefore those that will have a system in place will have the privilege to be able to blend fuels.

“You need more than $200, 000, 000 to set up a plant because the equipment needed is very expensive”, he said.

The Association President said hopefully this will come into fruition by October this year adding that bio-fuel blending will save the country a lot of resources.

 

Oil Marketing Companies Association of Zambia (OMCAZ)

Zambia will require a total of US$ 14 billion worth of investment to meet the projected demand of electricity by 2040.

According to the Government Green Paper on the findings and recommendations of the 2021 Cost of Service Study (CoSS), seen by the Zambian Business Times-ZBT, the investment is broken down as; $ 9.4 billion for generation, $ 2.7 billion for transmission and $ 1.9 billion for distribution.

The report reveals that Government has accepted the recommendation that additional investment, at as low a cost as possible is required to increase electricity generation, transmission and distribution.

It explained that the CoSS assumptions on the development of least cost plan have been overtaken by Government’s ambitions to implement an ambitious energy investment plan that takes into account effects of climate change and environmental impacts with the view to enhance energy security and increase access to affordable electricity services.

The results from the 30-year (2022-2052) Integrated Resource Plan (IRP) for the electricity sector shows that to meet the projected demand of about 8,000MW by 2030, the country requires approximately US$10.78 billion of investments in generation, transmission and distribution.

The reported also revealed that Government will promote investments in electrification initiatives, including off-grid systems at an estimated cost of US$ 2.93 billion to achieve universal access.

It stated that further, Government will endeavour to create an enabling environment to attract investment from private sector and cooperating partners, including climate finance, in expansion of generation, transmission and distribution infrastructure in response to the envisaged growth in energy demand in the medium term.

 

 

 

 

 

 

 

Zambia will require a total of US$