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Agribusiness

The need to revamp and even drive the opening up of more local and privately owned fertilizer manufacturing factories in Zambia is now even more eminent following the steep increase in prices of the commodity on global markets on the back of the Russia-Ukraine conflict as well as the supply issues from Asia.

Ministry of Agriculture Permanent Secretary Green Mbozi says there is need to rehabilitate and revamp the Nitrogen Chemicals of Zambia – NCZ plant in Kafue in order for the company to increase their production capacity and be able to meet the national demand.

Speaking in an exclusive interview with the Zambian Business Times – ZBT, Mbozi said NCZ has indicated that it can produce up to 50, 000 metric tonnes of D Compound adding that going forward the company can increase their capacity if they are given additional funding for rehabilitation.

Mbozi said it is government’s plan to have NCZ produce as much D compound as possible as well as ammonium nitrate in the near future noting that it is safer to have domestic producers providing fertilizer considering the high prices of the commodity on the international market.

“Issues have to do with their capacity constraints, their plant needs to be rehabilitated, it may not have been rehabilitated over a long time, so this year they have indicated that they can produce up to 50, 000 metric tonnes probably going forward they can increase their capacity”, he said.

“We have a new government but the issue of capacity constraints were found, in the past NCZ was only given a total of 10, 000 metric tonnes to supply and the UPND gave them an additional 13, 000 to supply. This year we have given them up to 50,000 which is an increment, any increment has to be gradual, we don’t want to give to NCZ what they may not be able to produce, we are taking a step by step approach”, he said.

And Nitrogen Chemicals of Zambia-NCZ Sales and Marketing Manager Cleopatra Chanda noted that NCZ will be able to produce over 50, 000 metric tonnes of D Compound for the year 2022 adding that the company wishes to start operating at full capacity in the near future.

Last year 2021, then IDC Group CEO Mateyo Kaluba confirmed that a the total amount of K638 million was invested into NCZ for working capital support for the local production of fertilizer to enable the company consistently supply the commodity to the market, while K45.6 million would enable the procurement of a fertilizer blending plant.  See full article on this link IDC invests K640m into NCZ

As a country, Zambia seems to be taking a merry go round. When one looks at the reasons behind the set up of NCZ, it was precisely to secure local supply as fertilizer is a strategic commodity that is key to food security. But the country let it deteriorate and opted to import due to what some analysts say was motivated by graft and foreign interest that wanted to take over the supply business.

Today, the country is back to square one, in trying to rehabilitate and revamp NCZ as well as attracting foreign direct investment to set up local fertilizer factories that can secure supply as well as help cut down the cost of the final prices to farmers.

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The need to revamp and even drive

Markets

Increased demand and uptake for loans should ideally be a good economic indicator especially when people are borrowing for investment and to increase production.

But the case in Zambia is that there is an increase in demand for loans but the factors driving this demand is low liquidity levels resulting in the loans being taken for cashflow management and consumption purposes.

According to the Association of Microfinance Institutions in Zambia – AMIZ, there is a notable rise in demand for loans in the second quarter (April to June) of 2022 compared to the first quarter (January to March) of this same year – 2022.

AMIZ Executive Director Webby Mate however said the major challenge the country is facing is that there are more loans going towards consumption than production as more households and individuals are borrowing than businesses.

Speaking in an exclusive interview with the Zambian Business Times – ZBT, Mate explained that mainly households are borrowing to smoothen their consumption and pay for school fees with their salary as a source of repayment.

“There are more people borrowing mainly for consumption, so it says something about the state of economy, people’s livelihood, there is more going to consumption than productive activities”, he said.

Mate further told ZBT that although the increase from the first to the second quarter has been minimal, there is an improvement in terms of loans taken for the purpose of productive activities as a few more people are borrowing to invest in small and medium size businesses.

He noted that primarily, local businesses engaged in trading activities are the main borrowers with a few who are involved in small scale manufacturing, adding that the economy is opening up now post Covid-19 pandemic and people have started increasing their movements to bring in supplies from different countries.

“Generally, the situation we had under the Covid-19 pandemic has changed and improved a lot, the demand is now picking up, and the situation has changed from what it was under the Covid-19 pandemic”, he said.

“We hope this trend continues as credit keeps the economy going, it keeps businesses going, we expect that this will continue into the third quarter and beyond. With the pronouncements from government regarding a possible conclusion of the deal with IMF, we expect the economy to be much more stable.

If the IMF deal comes through, it is expected that it will help stabilize the exchange rate, the local unit – the Kwacha may strengthen against the dollar and that will spur more importation of goods into the country, so the outlook for micro finance is very positive”, he said.

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Increased demand and uptake for loans should

Agribusiness

Farmers in Central Province have appealed to government to consider allowing the export of soya beans in order to address the issue of the current low prices of the commodity locally.

Cresta Kabwata, one of the farmers in Mukonchi, Kapiri Mposhi said the prices of soya beans have continued to drop due to the restrictions on the export of the commodity therefore the need to consider allowing exports.

Speaking in an interview with the Zambian Business Times-ZBT, Kabwata noted that the highest price that soya beans buyers are offering currently is K7.65 per kg, which the farmers are not happy with considering the production costs.

Kabwata mentioned that buyers were offering around K11 per kg in May but the prices have continued to drop which is disturbing adding that the farmers cannot wait for the Food Reserve Agency (FRA) to start buying the crop, as they need the money now.

“They have not started buying and we can’t wait, we have problems that need money so we can’t wait for the government to come and buy whilst our problems are waiting so we have no option but to take to the millers who are giving us a lower price”, he said.

“We were just hearing that they are exporting, especially these people from Tanzania, they were coming in to buy, that’s why the price was good. The ones buying soya beans now are local buyers, maybe they are keeping it for resale”, he said.

 

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Farmers in Central Province have appealed to

Companies

The Zambia Consumer Association (ZACA) has condemned the move by the Zambia Metrology Agency – ZMA to withhold the names of the five (5) companies that were found wanting after inspection in the first half of 2022, accusing the government body of abetting wrong doing.

Association Executive Secretary Juba Sakala said Zambian consumers deserve to know what products  have been found wanting so that as to inform their future buying decisions. There is need for the market to be informed and companies found wanting to be fined or punished.

In an exclusive interview with the Zambian Business Times – ZBT,  Sakala stated that the association will compel Zambia Metrology Agency-ZMA to reveal the five companies so as to know which products on the market have been found underweight.

He said this is one way of protecting consumers by disclosing who and what was found faulty because consumer need to get value for their money. They also need to be compensated were it can be proved that they have not received the right value.

Sakala further added that, it is the consumer’s right to know the findings of Zambia Metrology Agency-ZMA, they are funded by tax payers money, hence it is just proper to disclose such information to the public.

He stated that disclosure of these companies will expose the types of products on the market, the giving of half-baked information is not fair on the consumer side. ZMA needs to know that it’s working for the Zambian public and not special interests.

Zambia Metrology Agency shielded and refused to name five (5) companies that were found wanting for the first list of 2022. But the agency was then accused of playing double standards after they had named Africa and Nyimba Milling, but refused to disclose the other five companies.

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The Zambia Consumer Association (ZACA) has condemned

Companies

A railway concession agreement has been signed off by the Angolan government with a consortium that includes global metals and minerals trader Trafigura, infrastructure construction services provider Mota Engil and Vecturis, a Belgian railway operator that will see Zambia lose out on huge transport and logistics revenues if no immediate actions are taken by the Zambian government.

According to a statement by the Angola Ministry of Transport availed to the Zambian Business Times – ZBT, the rebuild and revamp of the Lobito railway between Angola and Democratic Republic of Congo – DRC will see the concessionaires (Trafigura, Mota Engil & Vecturis) invest US$256 million in infrastructure, US$73 million in equipment and rolling stock, and an additional amount of US$4 million in various activities.

Railway transport which is much more cost effective for the transportation of bulk mineral and Agro commodities which are currently being transported by road via Zambia to ports such as Dare-salaam in Tanzania, Beira in Mozambique, Durban in South Africa and Walvis Bay in Namibia.

Zambia risks losing out hundreds of millions dollars in logistics business opportunities of on the existing heavy cargo traffic from DRC through Zambia to its export and import destinations. Moreover, most toll gates in Zambia are collecting huge monthly revenues driven by the DRC traffic.

The statement seen by ZBT further indicated that the consortium will take over the operation, exploration and maintenance of the rail transport of goods between Lobito and Luau, as well as the maintenance of the entire existing infrastructure along the Corridor.

With the rents negotiated, the Angolan government expects to collect, in each period of 10 years, revenues of US$319 million, in the first 10 years, US$ 787 million between the eleventh and the twentieth, and US$ 919 million in the last 10 years of the 30 years concession.

The Angola Transport Ministry stated that the award of the Lobito Corridor brings other relevant benefits for the country, namely the direct impact on the development of industries, “heavily” dependent on the logistics chain, such as agriculture and mining, and the consequent creation of jobs in each of them.

As for Zambia, the government is more concerned with fighting local political battles. This has resulted in further delays in construction the Solwezi – Kipushi road to open alternative routes to DRC, delays in opening up of the jimbe and Shangombo border with Angola which are key to unlocking trade with resource rich neighbors in Angola and DRC. Zambia’s Minister of Transport Frank Tayali could not be reached for a comment at the time of going to press

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A railway concession agreement has been signed

Agribusiness

The Zambian Fruit and Vegetable Traders Association has attributed the current low prices of tomatoes on the market to the availability of the commodity as most farmers are currently harvesting their crop.

Association President Bernard Sikunyongana said farmers have flooded their produce on the market and supply has outstripped demand, which is leading to the commodity fetching a lower price.

Speaking in an interview with the Zambian Business Times-ZBT, Sikunyongana said there is need for coordination among farmers so that they do not offload their produce on the market at the same time.

Sikunyongana said some farmers have an alternative market, which is Kasumbalesa border in the Democratic Republic of Congo (DRC) but those who can only sell their produce locally may incur losses looking at the current prices therefore the need to start looking for long-term solutions.

He said one way of addressing this issue is investing in cold storage facilities so that farmers are able to keep their produce for a longer period in the event that the market is flooded with a particular product.

Farmers have expressed concern over the low prices of tomatoes, which is lower than the cost of production, causing farmers to incur losses. A box of tomato is selling for as low as K40 in some places.

 

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The Zambian Fruit and Vegetable Traders Association

Agribusiness

The Zambia Cooperative Federation-ZCF says it has concluded discussions with Rwanda and the Democratic Republic of Congo (DRC) concerning the export of maize to the two countries.

ZCF Director General James Chirwa said all that is remaining now is for the two countries to agree to the asking price that the federation has set and process the payment then the maize exports can start.

Speaking in an interview with the Zambian Business Times-ZBT, Chirwa said the demand is over 30, 000 metric tonnes and the federation intends to export between 15, 000 to 20, 000 metric tonnes of maize.

Rwanda and DRC had earlier shown interest in importing maize from Zambia and the federation wants to take advantage of the opportunity to create a market for maize and its products so that the country can earn foreign exchange.

Chirwa noted that all the cooperatives from across the country could take part in the business venture especially those strategically positioned in order to ensure that the farmers realise a decent amount of profit from the venture.

He reiterated that it is important for small-scale farmers to belong to cooperatives, as it is an easier channel to use to do business adding that it is easier to export when the cooperatives put their commodities together.

“We are talking about Rwanda, obviously we cannot go and pick maize from Kasempa to take to Rwanda, it will be a costly venture so we look at the cost of doing that business. We are still waiting for the purchaser to send the payment, we are waiting for a process of payment but we have concluded the discussions”, he said.

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The Zambia Cooperative Federation-ZCF says it has

Mining

Minister of Mines and Minerals Development Paul Kabuswe says the delay in reopening Kasenseli gold mine is because government wants to ensure that everything is done correctly before operations resume at the mine.

Responding to a question from the Zambian Business Times-ZBT, during a media briefing, on why government is not reopening Kasenseli gold mine, Kabuswe said the gold mine will be reopened at an appropriate time.

“We are going to reopen Kasenseli gold mine at an appropriate time, like I mentioned to you, the challenges that we thought were easy, were actually deep so when something is deep you have to also dig deep to come up with a correct way of doing things”, he said.

Kabuswe said gold is a game changer and Kasenseli gold mine is a critical component of how government wants to formalize the gold sub sector in Zambia adding that the nation should be assured that the formalization that government is going to bring about for the artisanal miners will be exceptional.

He mentioned that he is aware that government has the role of eradicating poverty in the country noting that the process needs to be done correctly so that there will be no need of going back to the same things.

The Minister said the reforms being made in the gold, manganese and other mineral sub sectors will benefit a lot of people and not only the treasury as there will be proper formalization and record keeping.

Kabuswe said this would ensure that those who have not been complying in terms of paying taxes would have nowhere to hide, as the ministry of mines will be present wherever there are mining activities.

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Minister of Mines and Minerals Development Paul

Lifestyle

The joint statement which was made by the Minister of Local Govt and a representative of the Mobile Money Traders Association has been disowned citing the fact that the meeting prior to the press briefing was not a dialogue but an imposition of views by the government team.

A source who asked to remain anonymous has disclosed that the closed door meeting that was held yesterday at the ministry of local government was in no way a fair or two way meeting because the mobile money traders were not given a chance to air out their views but instead were told to agree to what was being imposed on them.

The source stated that most of the affected mobile money booth owners are still waiting to hear and see if the Minister of Local Government Gary Nkombo and the Mayor of Lusaka will do what is favorable for them before coming out in the open on what is obtaining on the ground.

The source told the Zambian Business Times – ZBT that the Mobile Money booth owners made it known to the Minster that the proposed place the government is suggesting to make affected agents to be trading from, that is from the post office up until Findeco house is not ideal or safe for anyone to trade from. But despite the unresolved concerns, the minister went ahead and made the announcement to the public that that’s what was agreed upon.

And when the source was asked why their representative didn’t have anything to say when given the chance during the press briefing that was held after the closed door meeting that ZBT attended, the source accused the agents representative  to have been compromised or bought. “that guy was just bought, he is not with us and we are not with him, he was just bribed, he does not even have a booth, he does not know what it even means to have float, he is on their side”.

The source further told ZBT that the decisions that were made yesterday was not out of consensus, no one is comfortable with it, the source alluded that the excuse that the Minster gave yesterday of finding faecal matter within the booths is not making sense. “How can we do that within our offices and expect customers to come and trade with us, they are just saying such to paint us black” the source said.

It was also revealed that contrary to what is circulating on different social media platforms, the mobile money traders are being told to look for areas which have public toilets so as to set up their booths. This is in the case were mobile money booths were brought down with the aim of relocating them according to the local government minister, but the traders are refuting to the area they ought to be relocated to and the conditions therein being stipulated.

Yesterday 11 November 2022, the minister of Local Government, the Lusaka Mayor and other stakeholder representatives held a closed door meeting with mobile money traders before a press briefing that took place at the ministry. Only one question was taken which left various media houses representatives stunned and left with a lot of un-answered questions.

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The joint statement which was made by

Lifestyle

Minister of Local Government Gary Nkombo yesterday took only one question from the media in what in the end resulted in dodging of other questions that the media was eagerly waiting to get answers. Nkombo had called for a press briefing to address the media and mobile money booth owners concerning the displacement of mobile money booths in undesignated areas in Lusaka.

Nkombo who is managing one of the most complex ministries had called for a press briefing to address the media and mobile money booth owners concerning the displacement of mobile money booths in what the Ministry discribed as undesignated areas in Lusaka.

The decision to forcefully remove the mobile money booths which provide jobs to most of the unemployed youths has backfired as it coincides with the increased cost of living and increasing commodity prices on the back of consecutive fuel price hikes.

Before addressing the media, the minister held a closed-door meeting, which lasted for 40 minutes with mobile money booth owners, a representative from the Mobile Money Business Association of Zambia and other stakeholders.

Speaking during the media briefing which was attended by the Zambian Business Times-ZBT, Nkombo said all the stakeholders had agreed to work together to ensure that there is sanity in the Central Business District therefore the need to relocate the mobile money booths.

However, the minister had dodged a number of questions from the media such as how many individuals have been displaced, what is the financial impact if the government would compensate the affected owners of booths etc as he only took two questions from one journalist because the moderator stated that it was in the interest of time and requested that all those with questions should follow the minister to his office.

Nkombo explained that government has been having discussions with the Mobile Money Business Association and other relevant stakeholders concerning reorganizing the sector for 12 months now adding that this will cause disturbances in the business.

He noted that going forward no, individuals will be allowed to establish mobile money booths anyhow as it was done earlier. The mobile money owners spoken to by ZBT however still felt their concerns had not been adequately addressed.

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Minister of Local Government Gary Nkombo yesterday