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Mining

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.

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North Western Province Chiefs who had earlier

Companies

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.

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Editorial We have received information that some senior

Lifestyle

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.

 

 

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National Action for Quality Education in Zambia-NAQUEZ

Markets

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.

 

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Oil Marketing Companies Association of Zambia (OMCAZ)

Tech

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

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

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

Markets

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

Markets

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

Markets

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