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Companies

Refined sugar shortage has emerged on the Zambian market with calls for government to open up the market to private importers and not only restrict the issuance of import permits to a few large multinational companies.

And Zambian Breweries Plc which is one of the companies that had been listed as having resorted to importing sugar has clarified that the company decided to import refined sugar due to operational challenges, which were emanating from the main supplier within the country.

According to information obtained by the Zambian Business Times-ZBT, the duty on refined sugar was suspended until 31st July 2022 for 4 companies to allow some companies that were issued with Sugar import quotas and permits to import without paying relevant import taxes.

Zambian Breweries – ZB, which is one of the four (4) companies that had been issued with import permits to bring in the commodity was permitted to import 2, 100 metric tonnes of refined sugar. Other companies that  allowed to import refined sugar include Coca-Cola Beverages which got a quota of 8, 500 tonnes, Trade Kings with a quota of 7, 060 tonnes and Invesco Limited-2, 000 tonnes.

ZB Company Corporate Affairs Director Ezekiel Sekele told ZBT that it was a once off short term measure and the imports were allowed in order to address the gaps that were existing from the supplier’s side as the supplier experienced some challenges.

Sekele explained that the importation of refined sugar is not something that will be happening going forward as the company is getting all its required quantity locally noting that such challenges are understandable. He revealed that government, the main suppliers and all key parties worked together to ensure there is stability and agreed to allow imports adding that all stakeholders are engaging for purposes of progress.

Sekele clarified that ZB does not intend to import more sugar, as the idea is to support local industries because local sourcing is the only way to achieve sustainability, but when there is a genuine operational challenge; all parties sit together and find a way forward.

“I believe that at the moment the main supplier is beginning to close those supply chain challenges, the operational challenges that we had experienced earlier on. It’s normal for them to experience operational challenges”, he said.

He noted that a number of players in the country have been experiencing operational challenges in the last 2 years due to supply chain challenges which in many instances have impacted the local trading environment adding that this can be attributed to what has been happening globally and regionally.

Sekele added that the local manufacturing sector has been resilient in terms of addressing the many operational challenges that have been taking place. Refined sugar is used for industrial purposes and has been experiencing expanding demand year on year.

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Refined sugar shortage has emerged on the

Mining

First Quantum Minerals FQM has launched the Largest Nickel Mine in Africa -Enterprise Nickel Mine – in Kalumbila District of North Western Province that will see the miner take in about $800 million in annual revenues.

Speaking during an official launch of the ground breaking ceremony Monitored by the Zambian Business Times –ZBT – President Hakainde Hichilema who officiated the ground breaking ceremony said the project will focus on mining and processing nickel which will contribute towards the raw materials that will be used in the electric vehicles.

President Hichilema said the project will play a key role in the nation’s continued development. The enterprise Nickel Project is expected deliver quit a lot as it will contribute too many value aspect and value components.

He reiterated that the project will also help the vision that Zambia has in playing a critical part towards the transition of energy from brown energy to energy the will reduce carbon emanations. This will help in transitioning from Fossil fuels to electric vehicles which requires nickel.

The Zambian president said he was fortunate that the country will host a fair share of the Nickel which will be produced and other minerals being mined.

Earlier ZBT has reported that once operational the project is expected to generate over $800 m will raise treasury income which part of the income will be channeled to support the free education policy.

The new Enterprise Nickel mine located approximately 14 kilometres from FQM sentinel mine in Columbia, has been given the go ahead, following FQM’s pledge to invest a final US$100 million in the project.

Once operational, the enterprise will be on the top ten 10 global nickel mine producing 30, 000 tons of nickel in concentrate annually, which will make Zambia Africa’s pre-eminent nickel producer. See for earlier article on this nickel mine https://zambianbusinesstimes.com/fqm-nickel-mine-to-generate-800m-revenue-per-year/

This came after election of Hakainde Hichilema as Zambia’s new president last year which saw the country reformed tax regulations in its national budget with new rules that mean that royalties mining companies pay are deductible from corporate tax.

Following this announcement, First Quantum pledged to expand its Kansanshi operations at Solwezi, known as the S3 project for about $1.25bn and also spend the final $100m instalment on its $250m Enterprise nickel project in Kalumbila District of North Western Province.

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First Quantum Minerals FQM has launched the

Tech

Zambias power utility ZESCO has disclosed that the state-owned company is waiting for regulator Energy Regulation Board – ERB to guide on way forward before the utility can start taking orders for new connections under the standard connections category.

This follows increasing customer complaints that ZESCO is only giving very high quotations which most newly built home owners are struggling to pay for. Some have stated that the special connections fees being quoted right now are exorbitant and most low income earners can not afford.

ZESCO has proposed to increase some connection charges by over 500%, through an application to ERB that raised public uproar. The cost of living has been on the upside with most households facing  steep fuel price increases and a general reduction in liquidity in the market affecting the majority workers in the informal sector.

ZESCO which operates as a monopoly in most part of Zambia  may be avoiding taking new standard connection orders fearing that they would connect new customers at a loss and further exacerbate their already strained cash flows. The company says it expects to start signing and making quotation for new connections and installations soon once ERB gives a go ahead.

Speaking an exclusive interview with the Zambian Business Times – ZBT, ZESCO Spokesperson Henry Kapata clarified that it is only the standard connections category that is on a hold but the utility is issuing quotations and once paid, proceeding to connect new customer with specific scope of works.

He said the only one which is on hold is the standard ones. “We do that [connections] if we look at the scopes of work and we say this is what is required. When customer pay, we are able to connect them. But for those with standard connection requirements, they are the ones we don’t give quotations for, so for now, we wait for feedback from ERB.” he told ZBT.

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Zambias power utility ZESCO has disclosed that

Agribusiness

The deal signed by Zambia and China for the export of Stevia leaves will initially only benefit five (5) commercial farmers, with calls for more local farmers to get involved and start cultivating the crop and benefit from the export market that has now been re-opened.

The Zambian government announced that it has signed a Memorandum of Understanding (MOU) with China for the export of stevia, a natural sweetener and sugar substitute derived from the leaves of the plant species called stevia rabaudiana.

However Pritchard Mukuwa, the Principal Plant Health Inspector for Plant Quarantine and Phytosanitary Service, a department in the Ministry of Agriculture responsible for facilitating safe agriculture trade has revealed that currently, there are only 5 commercial farmers who are significantly growing stevia in Zambia.

Speaking in an exclusive interview with the Zambian Business Times – ZBT, Mukuwa said stevia is mainly grown in Southern province towns of Livingstone, Kalomo, Magoye and Choma, emphasizing that that this is the region where most of the stevia production has been happening.

Mukuwa noted that out of the 5 farmers that have been growing the crop, only two have been consistently shipping to China and they ship about 6-7 containers each a year and on average, one container carries 23 metric tonnes of stevia which is worth about $60,000.

The inspector mentioned that the crop fetches around $2.5 per kg adding that the price fluctuates depending on the demand and supply. He further explained that stevia is only grown for export and it is exported to China as no one is processing it in Zambia, adding that it is a new crop and there have been some market access issues.

Mukuwa told ZBT that farmers started growing stevia in 2016 and it takes about 4 months for farmers to start harvesting the crop. He added that he is hopeful that more people will venture into the production of the crop following the signing of the MOU with China.

“From growing to harvesting it takes about 4 months. You do your nursery, when you transplant from your nursery, it will take you about 4 months for you to start harvesting.It is also exported as a dried product. It is a natural sweetener and you can also use it to bake “,he said.

He noted that there is need for value addition because when the stevia is produced in Zambia,it is exported just as a crop when value can be added so that when it is exported to China,it can go straight into supermarkets and people can buy it as a finished product.

And Senior Plant Health Inspector Martin Siazemo said the current production by the two farmers stands around 322, 000 metric tonnes per year but the production was higher when most farmers were growing the crop adding that the highest production was around 900, 000 metric tonnes in 2019 with a single farmer cultivating about 90 hectares.

Siazemo mentioned that it requires some substantial investment and that is why it is mostly grown by commercial farmers. It is a perennial crop which grows throughout the year and requires a lot of water, therefore some small holder farmers who may not be able to use irrigation facilities have not ventured into stevia production.

He however mentioned that a number of small scale farmers have expressed interest in growing the crop noting that they have irrigation infrastructure but need to be given contracts by the company promoting and marketing the production of stevia in Zambia.

The Plant Inspector noted that there were 24 farmers growing the crop a few years ago but because the company promoting stevia production mishandled the whole process, other farmers pulled out.

“The variety which these guys first introduced to farmers was performing well, then they realized that there was a new variety on the market which had a better taste profile, stevia is about the sweetness of the leaf, the sweeter the leaf, the more the market will pay for it”.

So they found a variety which was 1,000 times sweeter than the sugar that we buy. So they imposed that variety on the farmers without doing enough trial to see how it can perform in Zambia. This new one was a total failure and was flowering at a tender stage and because the farmers spent a lot of money in form of irrigation and fertilizer, they ended up asking for compensation but the company refused, so that’s how most farmers quit the crop”, he said.

Siazemo further revealed that the farmers were allowed to export the crop from 2018 to last year when the agreement expired, but with the signing of a new deal, exports will resume adding that before exports to China began, the farmers used to ship the produce to Uraguay then to China until the bilateral agreement was signed to ship the crop directly to China in 2018.

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The deal signed by Zambia and China

Tech

The Ministry of Education has disclosed that it cannot initiate the process of securing foreign teaching jobs for the teachers that were left out after the recent massive recruitment as there is still a deficit of teachers in Zambia .

Questions have arisen as to why some of the excess teachers who were left out can not be aided to go and work in other foreign countries were they have ready opening so that the teachers can start earning a living and Zambia can start benefiting from remittances. Moreover, more teachers are expected to graduate this year which will only increase the numbers of unemployed teachers.

This follows the just ended teacher recruitment were over 120,000 teachers were reported to have applied for the 2022 teacher recruitment but government only managed to recruit 30,494 teachers leaving over 70,000 teachers unemployed.

Responding to the Zambian Business Times – ZBT on why government is not facilitating for skilled labour exports as done by other countries which have huge diaspora communities across the world, the Permanent Secretary – PS at the Ministry of Education disclosed that there is still a deficit of teachers in the country.

He explained that about 115,000 teachers are needed in the country but government only managed to recruit about 30,500 because it does not have money to recruit all the needed teachers compliment. “Before we decide to export skilled teachers, there must be conscious that we still need them, but what we don’t have is the money to recruit them all, had we had the money, we would employee everybody because we need them” He said.

Kamoko was quick to mention that even if government had recruited all the teachers there was still going to be a shortfall of about 10,000 teachers. But remember that we are trying to stabilize the economy and we have to work closely with the other international partners such as the IMF. So we can’t do crazy things and then the economy is not manageable, it will mean that the same teachers will not get paid.

The employing of about 30, 500 teachers should give hope to those that are still in the streets as there is the second chance coming. The PS said very soon government will need more teachers as there are some teachers who will be retiring this year.

But again, those that want to work outside the country are free to do so. If you follow the AU, SADC and COMESA protocols, no one is restricted to look for employment outside Zambia if they follow the law. But remember again if you are going to look for employment outside the country, you must be duly registered and going abroad is not as easy as it seems, as you only go where there is need.

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The Ministry of Education has disclosed that

Agribusiness

The Agricultural and Commercial Cooperative Society of Zambia-ACSZ says it is confident that the 94th edition of the Zambia Agricultural and Commercial Show, which will commence on Wednesday 27 July 2022 to 1st August 2022 will be highly successful.

ACSZ President Duncan Mfula said the 2022 trade show and exhibition would be successful in terms of the quality products on show, attendance numbers and the level of national and continental building discussions that the society engaged upon.

Speaking during a press briefing attended by the Zambian Business Times-ZBT, Mfula said this will be 6 days of high-level business networking, engagements and entertainment, adding that in terms of space utilization, most of the spaces have been subscribed. The Society President revealed that over 20 foreign countries and international visitors are expected to participate.

Mfula explained that the estimated exhibition area of 14 hectares housing 75 small single purpose buildings as well as indoor facilities such as Jubilee hall, Jubilee gardens, Zambia hall, Andrew Hamaamba, Young Farmers, Agricultural hall, Chinese pavilion and outdoor space on the grounds is expected to attract slightly over 1,000 floor users as exhibitors.

He noted that majority of the exhibitors are SMEs who will account for 55% participation mostly in outdoor spaces and the society expects direct and indirect exhibitors to participate adding that corporates have taken up space in most of the small buildings along with government, ministries and government agencies.

The Society President mentioned that over 20 foreign countries and international visitors are expected to Participate and confirmed participation and pending enquiries from countries include Burundi, Botswana, Cameron, China, Egypt, DRC, Ethiopia, Germany, Ghana, India, Italy, Iran, Japan, Kenya, Malawi, Mauritius, Mozambique, Namibia, Nigeria, Pakistan, South Africa, Tanzania, Uganda and Zimbabwe.

Mfula added that Zimbabwe is expected to have at least 30 exhibitors, while China will have 110 companies exhibiting and the Chinese government through its embassy here in Zambia is exhibiting as the country of honour adding that all this has been through the effort of the ACSZ board and management by way of making visits to embassies accredited to Zambia..

He noted that with regards local participation, 65% of exhibitors came from Lusaka while 35% came from remaining parts of Zambia and other countries.

Mfula said Memorandum of Understanding between stakeholders are expected to be signed during the show, these involves ACSZ and Chinese chamber, ZACCI and Chinese chamber among others and several meetings during the show are expected to culminate into increased cooperation and investment among stakeholders.

He mentioned that the official opening ceremony and the guest of honour for this year’s show is the President Hakainde Hichilema and the official opening ceremony of the show will be held on Sunday 31 July 2022.

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The Agricultural and Commercial Cooperative Society of

Tech

The Zambia Consumer Association – ZACA has expressed concern over the continued delay and soft stance by state ICT regulator ZICTA to give Zambian consumers a  4th mobile phone operator which has now by passed the expected timelines.

The Zambia Information and Communication Technology Authority – ZICTA – had in 2021 indicated that it had granted a local firm Beeline Telecom Limited a license to commence mobile phone operations in the country within the period of 6 months. This timeline was extended and a new deadline was given to Beeline to commence operations by 30th June 2022, and this has also not materialized.

Speaking in an exclusive interview with the Zambian Business Times –ZBT, ZACA General Secretary Juba Sakala said the association was concerned that these continued delays is denying Zambian consumers alternative services and that this is not the first time such is happening were commencement of operations extensions are being given on earlier extensions.

He explained that some time back another Company was awarded a licence but could not start operation adding that the current one has taken a year plus and has not yet started operation. A check by ZBT indeed confirmed that Unitel’s UZZI had indeed gone through several extensions until the license awarded was eventually cancelled, while Zambian consumers remain being unserved from benefits that may arise from having a 4th mobile phone and Mobile Internet operator

Sakala has since challenged the Directors of Beeline and the ZICTA board and management to come out in the open and explain their position to the nation before people are left with no options but to speculate and make their own conclusions.

“We would like ZICTA which is under the Ministry of Technology to state their position on Beeline and tell the nation what the way forward is” He said. An investigation by ZBT also drew a blank as the company – Beeline does not seem to have available contact persons who can be engaged to give the status quo.

“They should tell the nation what is the delay and when are they starting because justice delayed is justice denied, so we don’t know whether that this company will start operations or not”, ZACA told ZBT.  ZACA is of the view that if Beeline Telecom is unable to source funds to start operations, they should state so and that ZICTA should be proactive and immediately re-advertise the license.

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The Zambia Consumer Association - ZACA has

Tech

Consulting Engineering firm Brian Colquhoun, Hugh O’Donnell & Partners – BCHOD Zambia whose shareholding is majority held by Zambians has challenged the Engineers Institute of Zambia – EIZ to reveal what exact details led to their membership being suspended.

Speaking in an exclusive interview with the Zambian Business Times –ZBT, BCHOD Managing Partner George Sitali said EIZ had suspended them without giving them an opportunity to be heard. “We don’t even know what the charges are and what they have been suspended for, EIZ has a process we’re members are written to and given time to respond if there are charges” Sitali told ZBT.

Sitali said EIZ did not at any point inform or write to us concerning the suspension of our membership. We are hearing this from the press statements and queries just like this. EIZ has processes on how to handle issues and we have not been engaged.

A further investigation by ZBT has revealed a political twist in that Sitali is the husband to constitutional court judge  Annie Mwewa-Sitali who was appointed during the former ruling party – the Patriotic Front – PF regime. She is a prominent Judge and has handled highly sensitive cases and this may be the reason why the husbands company may be targeted.

Sitali when asked to confirm if he was married to a prominent lawyer who was being investigated as per tip received by ZBT, he confirmed that he is married to Constitutional court Judge Annie Sitali but he was not aware of her being investigated.

EIZ has suspended the membership of the BICON and BCHOD, both consulting Engineering firms following the irregularities revealed after a government appointed Joint Investigation Team – JIT invited the EIZ Technical Committee to review the issues surrounding Society House Tower building and the Ndola Mufulira Mukambo road construction projects.

BCHOD is of the view that it was wrong for EIZ to suspend their membership without the due process of being heard. The BCHOD Consulting Engineers Managing Partner said it was very difficult for him to give further comments as they were not informed of anything.

He said EIZ need to reveal to them the illegalities that have been found. “The rules of natural and fair justice demands that when you accuse someone, you need first to inform them before anything is done, but that was not the case.” He said.

He added that BCHOD Lawyers have since written to the EIZ to ask for what the charges are and share more details on everything that has transpired to arrive at the decision to suspend their membership.

After the above connection and relations, it’s now not clear if it’s the government’s JIT which initiated the review of these projects which has concluded that both BICON and BCHOD are guilty. EIZ confirmed that the institution was invited to be part of the investigation but the process of arriving at the verdict after the investigation has not been made public.

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Consulting Engineering firm Brian Colquhoun, Hugh O’Donnell

Companies

Italian energy giant ENI which has a $7 billion coral floating liquefied natural gas project in Mozambique which Italian President Sergio Matterella visited before coming to Zambia intends to use the Luangwa valley under the Luangwa Community Forest Project – LCFP of Zambia without announcing any significant compensation to generate carbon offset credits needed for the project to pass global and EU emissions net zero requirements.

The Italian Energy company which has launched a multi billion (estimated at $7 billion by Bloomberg) project in Mozambique needs the Zambian based LCFP to successfully proceed and justify the carbon emissions that are expected to be generated by its new gas project.

The question however is whether the Zambian government has properly negotiated to get the best payout of significant economic value relative to what ENI will make from the gas emissions as well as as the over 1 million hectares that will be dedicated to forest conservation in lieu of potential future development by local Zambians who currently inhabit the vast area.

According to ENI, the Luangwa community Forests Project- LCFP covers about 1 million hectares, involves more than 170,000 local people in the affected communities, and is key to the energy company’s goal to achieve a zero net upstream emissions by 2030. This target includes the its Mozambique project.

ENI in its official report seen by the Zambian Business Times – ZBT confirmed that the Luangwa Valley project is key to not only achieving the minimization of direct Carbon dioxide (CO2) emissions, but also implementing projects to compensate for residual emissions from its multi billion dollar projects.

The Zambian government and Ministry of Green economy have been engaged to reveal how much the Zambian government will make in terms of revenues from this project. Ideally, ENI should be paying funds into the Zambian treasury for the carbon credits they are purchasing from Zambia’s Luangwa Valley.

A critical look at an investment of $7 billion and annual revenues expected from the gas that will be harvested in Mozambique, Zambia should be able to negotiate and get out some significant value as its negotiating play should take into consideration the risk/return that is commensurate with the international prices for both the gas to be extracted annually as well as carbon credits to be obtained from Luangwa valley.

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Italian energy giant ENI which has a

Lifestyle

The rightful candidate who should now have been the United Party for National Development – UPND member of parliament – MP for Chingola in place of the current MP and Trade Minister Chipoka Mulenga has sued the state claiming various damages, costs and interest.

Donald Chishika in a statement of claim seen by the Zambian Business Times – ZBT stated that he was the aspiring candidate for member of parliament for Chingola Constituency but ended up not being adopted because the party [UPND] feared to adopt a candidate who was appearing for a criminal offense, despite being political in nature.

A check by ZBT on who eventually got adopted and subsequently scoped the seat shows that Trade Minister and current Chingola MP Chipoka Mulenga, a situation that has made the rightful candidate miss out on his lifetime opportunity which he may not be able to get for the rest of his life.

Chishika who is being represented by Robson Malipenga & Co legal firm, stated that he was arrested on 24 October 2019 and detained upto 28 October 2019 as a UPND member after they attempted to attend Independence celebrations on the invitation of the district commissioner.

He stated that he was kept in prison for three days and released on bail. The trial resumed and he continued to appear before court until 17 December 2021 when they were acquitted. This is after the change of government on 12 August 2021, by which time he lost out on the opportunity of being a candidate for Chingola.

Chishika is now seeking for damages for false imprisonment, damages for malicious prosecution and mental torture, interest snd costs.  No specific claim amounts have been indicated in the statement of claim.

The Zambian government is facing a lot of claims for damages for ‘political’ cases after the change of government from Patriotic Front – PF to UPND. The total number of cases and amounts to be paid out to all the various cases that have been initiated across the country is yet to be ascertained.

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The rightful candidate who should now have