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Tech

The safety and structural integrity of the Society House tower building located in Lusaka’s central business district along Cairo road which had first been raised in 2020 has come back with two engineering firms getting suspended.

The Engineering Institute of Zambia –EIZ has suspended the membership of BICON and BCHOD, both Consulting Engineering firms following the irregularities revealed after a joint investigation conducted by the EIZ technical committee and the government’s Joint Investigative Team – JIT on society house and the Ndola-Mufulira-Mokambo road.

Addressing the Media in Lusaka attended by the Zambian Business Times –ZBT, EIZ President Abel Ngandu disclosed that this came after the request of the Joint Investigation Team where EIZ was invited to review the Ndola Mukambo Mufulira road project.

Ngandu explained that in the interest of the general public, the technical committee constituted a team of expert to review the technical audit reports of the work that were conducted so far. He said the technical audit report revealed a lot of irregularities of great concern to the profession.

“EIZ has since referred the matter to the disciplinary committee in a bid to protect public interest.” He said. When asked by ZBZ how long the suspension is, EIZ President said it is up to the disciplinary committee to determine the time frame.

The EIZ President however mentioned that the suspension is due to the gravity of the matter, EIZ has suspended their membership as governed by the EIZ statutes. Ngandu however could not reveal the actual irregularities, stating that the matter was before the government’s JIT working with the EIZ. EIZ has since urged its Members to strictly follow the code of conduct and provisions of the EIZ act.

In 2020, issues surrounding concerns over the structural integrity and the need to strengthen the columns of the Society House Tower were raised with BICON reporting that 153 columns of the total of 258 columns were found to have lower than the specified design capacity of the specified concrete strength. More to follow

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The safety and structural integrity of the

Tech

The state of the railway transport sector in Zambia is a dire need of leadership as this sector should be able to deliver the cheapest and the most cost effective means to transport bulk good and passengers over a long distance.

Some experts say if railway transport was used to deliver finished petroleum products, it would help cut the current high price of fuel pump prices even by say K2 per liter as only a pipeline can deliver at a much cheaper cost, compared to the current state were fuel is being imported by road using tanker trucks

From the recent Zambian Business Times – ZBT discussion and engagement with the two railway companies (Zambia Railways and TAZARA), we are getting a sense of lack of direction as non of the two companies seem to have a view of the strategic direction they are taking.

Both ZR and TAZARA seem to be at sea and are unable to confirm if they have medium to long term plans enter the cleaner energy electric train space, let alone share any plans on how they intend to raise the needed funds to upgrade the trains and tracks.

And Tanzania-Zambia Railway TAZARA has disclosed to the Zambian Business Times – ZBT that it is expecting to resume passenger and cargo services after next month. It’s services have remained suspended and are costing the nation huge sums in terms of lost value of the millions of dollars of investment that had been pumped over the years into the company.

Speaking in an exclusive interview with ZBT, TAZARA Head of Public Relations Conrad Simuchile said the services are expected to resume in September this year of 2022. “The plan to resume freight operations will awaken both the Passenger and Cargo Services which were suspended in May 2020, in the wake of the Covid-19 pandemic”.

When asked by ZBT what is really causing the delay as most transport sectors such as road and air have already resumed services and no longer using COVID as an excuse to remain closed, Simuchile requested for a formal press query which he has yet to respond to by time of going to press.

Cheaper passenger travel services in Zambia through Railways should also be revamped as it enables local businesses to intensify local or intra-country trade. Trade within the country is also a key for local development and currency velocity, which can help spur additional engines for faster economic development.

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The state of the railway transport sector

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