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National Action for Quality Education in Zambia-NAQUEZ

Biofuel blending to deliver cheaper fuel to consumers

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.

September 21, 2022

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Oil Marketing Companies Association of Zambia (OMCAZ)

Tech

Zambia needs $14 billion to meet electricity demand

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.

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Zambia will require a total of US$

Lifestyle

Churches asked to desist from shielding defilement perpetrators

The Council of Churches in Zambia-CCZ says the clergy should desist from over spiritualizing things to an extent of not reporting defilement cases in churches which is making victims endure abuse.

CCZ General Secretary Father Emmanuel Chikoya said when any type of abuse happens to anyone, be it a girl child or a boy child, there is need to ensure that the law visits the perpetrators as care for victims is being provided because not everything can be resolved by the church.

In an interview with the Zambian Business Times-ZBT, Fr Chikoya said a criminal is a criminal despite wearing a church uniform hence they should be dealt with, in accordance with the law adding that the clergy should desist from beating around the bush when it comes to such issues.

He stated that the church must be a primary defender of vulnerable people and there is also need for deliberate polices in churches to protect the members of respective churches, the women and their children especially because how the church handles such cases can directly reflect how the church views defilement cases among other abuse related cases.

“The victims should as well be making sure that they are consistently there so that the perpetrators are prosecuted because sometimes victims just complain and don’t take matters to the police”, he said.

Fr Chikoya further added that such issues should never be swept under the carpet in churches and the church should offer mechanisms where the young and the old are both safe through deliberate safety policies.

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The Council of Churches in Zambia-CCZ says

Lifestyle

BETUZ calls for curriculum review

Basic Education Teachers Union of Zambia-BETUZ says the education system in Zambia should give mining and agriculture among other reflective sectors prominence so that pupils understand that everything can be a business and an investment.

Union Public and International Relations Director Kabika Kakunta said there have been a lot of questions from parents and pupils concerning some things that learners are taught such as what the importance of learning parts of a grasshopper is and how it contributes to the livelihood of the people after undergoing such an education as the curriculum does not respond to the needs of the economy and the people.

In an interview with the Zambian Business Times-ZBT, Kakunta said there is need to actualize the aspirations of the current curriculum system even before reforming it so that everything is supported by training.

He said the curriculum has gone through a number of reviews in the previous years but has always lacked full financing because any changes affect the teacher training process which would be the case if the curriculum was to be reviewed so as to be responsive to the current needs of the people.

“When you are changing the curriculum it means our teachers also need to be retrained so as to begin to make them skilled with the new content in the reviewed curriculum”, he said.

Kakunta stated that curriculum reforms go beyond content and call for reviews of the educational books that are used in different schools hence the system also calls for huge investments.

He further added that it should be understood that education is critical and calls for huge investments thus it is only important that Zambia goes through curriculum reviews so that the education system is responsive and leaves less to be desired.

“There is also need to remove irrelevant content which does not have a direct impact on the livelihood of the people”, he added.

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Basic Education Teachers Union of Zambia-BETUZ says

International oil prices and exchange rate remain major determinants of fuel price

The Energy Regulation Board-ERB has clarified that the international oil prices and the exchange rate of the Zambian Kwacha against the United States Dollar are the major determinants of domestic fuel prices in Zambia.

Oil Marketing Companies Association of Zambia (OMCAZ) had earlier questioned the fuel pricing model that the ERB is using to come up with the monthly fuel pump prices because the fuel pump price for a particular month was adjusted upwards when the price of crude oil on the international market was coming down.

ERB Public Relations Manager Namukolo Kasumpa said when pricing fuel in Zambia the ERB considers the performance of these two key factors that affect the price of fuel adding that each month, these two factors are monitored and analysed and if they move in tandem and increase or decrease then the local price of fuel is affected accordingly.

In response to a query from the Zambian Business Times-ZBT, Kasumpa added that if the two move in opposite directions, the greater effect by either of the two is what matters most noting that other factors that are considered include the changes in taxes, fees and or levies/duties.

Kasumpa explained that for each monthly fuel price review, the local price of fuel is only adjusted if, the resultant change in the price of fuel locally, (whether increase or decrease) is more than 2.5% adding that if the price change falls below the 2.5% threshold then the fuel prices will not be changed.

She noted that the ERB continues to use the Cost Plus Model (CPM) to determine the wholesale and pump prices for petroleum products.

Kasumpa said the underlying assumption of the CPM is that the final price of petroleum products should cover all the costs incurred in the supply chain of fuel and this is done in order to ensure that fuel prices are cost reflective to raise adequate revenue for sustainable security of supply.

She reiterated that all petroleum products or fuel is imported into the country, as Zambia does not produce its own oil yet and this fuel is bought off international markets and is priced in US dollars.

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The Energy Regulation Board-ERB has clarified that

LuSE requirements discouraging companies from listing

Longhorn Associates, a licensed Investment Broker has disclosed that the conditions that companies need to meet before listing their stock on the Lusaka Securities Exchange (LuSE) may be one of the reasons discouraging companies from listing on LuSE.

Investment Advisor and Analyst Joy Nanyinza said there are so many conditions that companies need to meet before they can list on LuSE and Brokers among other stakeholders have tried to engage the regulators in an effort to have the listing requirements revised as they are deterring companies from listing.

Speaking in an interview with the Zambian Business Times-ZBT, Nanyinza explained that a company is required to have a minimum of 10 million shares in issues and Directors and Senior Management of a company should have a certain level of expertise if they have to be part of the board.

“The Directors or Senior Management should have a certain level of expertise; LuSE will want to know what qualifications the board has. LuSE will look at who’s in your board, what’s their qualification, what does the Chairperson have, are they all in one sector or is it diverse, the requirements obviously are one of the reasons very few companies are listing”, she said.

Nanyinza mentioned that the whole listing process is tedious and starting the process does not guarantee that a company will automatically be allowed to list on LuSE once the process is complete as a company may be told at the end of the process that it does not qualify to list.

She added that in some instances, companies may be told that they will not be listed just yet but quoted which means a company’s securities are registered with the Securities and Exchange Commission (SEC) but the company has not been listed on the market and may be listed after due investigations and the company meets certain requirements.

Other listing conditions are that the applicant must be a duly incorporated company, must have its shares registered with the SEC, must have a minimum prescribed share capital and three years profit history (must have a satisfactory audited profit history for the preceding 3 financial years). The LuSE may in its absolute discretion list a company which is in its development stage, (other than a mineral company) and which does not have the required profit history.

Applicants must be carrying on as its main activity, either by itself or through one or more of its subsidiaries, an independent business, which is supported by its historic revenue earning history, and which gives it control over the majority of its assets and must have 25% of each class of equity securities held by the public.

The Directors and Senior Management of an applicant must collectively have appropriate expertise and experience for the management of the applicant and shares must be fully paid up and transferable and applicant’s number of the public shareholders in respect of listed securities shall be atleast 300 for equity shares and 50 for preference shares or equity instruments.

Alternative market conditions for listing are that the company must be a public company, must have a minimum trading turnover of K250, 000 and a maximum of K20 million, the public must hold a minimum of 10% free float and the issuer must appoint a designated adviser.

In addition, the company must show that it has been in operations for a period of 5 years or show increased revenues and market share for three years, the company must have a minimum of five Directors, the majority of whom should be non-family and the Directors must undertake a Directors training induction with the IOD.

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Longhorn Associates, a licensed Investment Broker has

$1.3 billion IMF loan to help Zambia achieve economic stability

Economist Trevor Hambayi says the US$1.3 billion International Monetary Fund (IMF) bailout package will allow government to have more room in its budget to provide resources for a desired purpose without jeopardizing the sustainability of its financial position or the stability of the economy.

In an interview with the Zambian Business Times-ZBT, Hambayi said the fiscal space that the country is likely to have, will also allow the usage of resources domestically which will drive the much needed economic recovery.

Hambayi explained that the key aspect of the IMF bailout package is that it will be able to catalyze the additional funding from bilateral partners and Paris Club members like China who are willing to consider debt forgiveness.

He added that the fund will allow the country to restructure its debt adding that because of where the country is after receiving the package and having had been considered as a low income country, Zambia will be able to attract grant financing that will go towards supporting the country’s economic recovery.

“In terms of our budget you will realize that the 2022 budget had 42% debt complements but we are hoping that going into 2023 our budget will have yes external financing but external financing that will support economic stability”, he said.

Hambayi further said the macro-economic stability would strengthen by virtue of reducing debt finance and government will be able to run the economy on the strength of fiscal consolidation, which is within government’s means to create a strong macroeconomic position.

The Economist said to ensure the sustainability of all the plans that will be implemented, there is need to support everything with productivity in different sectors among them, the mining and agriculture sector, in order to contribute effectively into the economy.

He noted that the idea is that fiscal space must exist or be created since extra resources have been made available for useful government spending but the question is whether government will raise taxes, secure outside grants, cut lower priority expenditure among other things to create sustainable fiscal space.

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Economist Trevor Hambayi says the US$1.3 billion

Mining

Taxing of small scale miners condemned

Mining Expert Edward Simukonda says it is unusual for the Zambia Revenue Authority (ZRA) to target establishing a tax collection unit for small and medium scale mines next year in order to address low tax compliance.

Speaking in an interview with the Zambian Business Times-ZBT, Simukonda said if there are people in the mining industry that need a tax holiday, it is the small and medium miners in Zambia as they do not make a lot of money.

The Zambia Revenue Authority had earlier announced that it targets to establish a tax collection unit for small and medium scale mines next year in order to address the issue of low tax compliance.

Simukonda said it is saddening that ZRA has such a target when the small and medium enterprise miners do not make a lot of money, as it is too expensive to make meaningful productions from their operations.

He said ZRA should understand what is involved in mining and the operations of small-scale miners and not just look at the collection of money from the small-scale miners.

“I don’t see ZRA retaining enough money from the small scale and medium miners unless they change the system. But this can only be achievable if the small and medium miners are given an opportunity to produce and then government can tax them from what they are producing”, he said.

Simukonda added that, “ZRA should make the policy of collecting taxes from the small and medium miners favourable so that they are able to work in the free space and be able to produce in the sense that they will tax them after selling because government will know how much they are making when they are selling”.

ZRA Commissioner General Dingani Banda said only about 171 small, medium and artisanal mines declared mineral royalties last year despite the country having over 2400 mines registered for tax.

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Mining Expert Edward Simukonda says it is

Lifestyle

Governance Expert calls for printing of ballot papers locally

Governance Expert George Chimembe has called on the UPND government to consider putting in place modalities that will enable the country to print ballot papers locally.

Chimembe, who is also former Foundation for Democratic Process (FODEP) Executive Director said printing ballot papers locally would save the country resources and increase the integrity of the electoral process, as it will allow stakeholders to participate in such processes.

He explained that in the last general election, the Electoral Commission of Zambia (ECZ) could not sponsor stakeholders to go and witness the printing of ballot papers in Dubai, which disadvantages stakeholders who may not be able to raise their own funds and travel to Dubai to witness the printing process.

Speaking in an interview with the Zambian Business Times-ZBT, Chimembe said the UPND government while in opposition was against printing ballot papers outside the country therefore they should be able to change the standard and save the country major resources.

Chimembe added that if done locally, stakeholders will be part of the printing process and this lessens disputes that come in the aftermath of an election as people may think certain things happened in their absence and that is why they may have lost an election.

“When PF just came into power, they said they were going to revamp government printers so they could handle issues of ballot papers but that died a natural death. UPND should bring some of the promises they were making to life to save on money”, he said.

“If we print locally, we are not going to use any cargo plane and cargo planes are very expensive. You may even have to book the whole of DHL cargo plane, that’s a lot of money which can be saved, part of that money can now be used for CDF if we save wisely or other sectors of the economy”, he said.

The Governance Expert mentioned that government would have to make the necessary investment in infrastructure and machinery adding that currently, the country may not have the capacity to print ballot papers locally therefore the need to invest in infrastructure.