Connect with:
Thursday / June 12.
logo
mobile-logo
HomeStandard Blog Whole Post (Page 89)
Companies

A financial expert has charged that the delay and failure to significantly liquidate arrears owned to local suppliers and contractors by government has led to the current reduction in the flow of money (no money in circulation) in the Zambian economy.

Speaking in an exclusive interview with the Zambian Business Times – ZBT, Financial expert Bright Chizondwe said government has not liquidated most of the arrears owed to most of the local suppliers, which has effectively locked the financial flows locally.

When asked on the amount which Konkola Copper Mines – KCM has released for local suppliers, the financial economist has however said the $2 million set aside by Konkola Copper Mine KCM to dismantle debt owed to contractors and local suppliers, will help improve the cashflow and liquidity on the Copperbelt in the short term.

He said that if released, the $2 million will help the companies to pay back the loans which they might have gotten from the banks in order for them to survive. Some of the companies have even defaulted The Financial economist said this does not however mean that the country should cerebrate as the money was owed to these companies and is not enough to significantly clear the backlog.

“So it is not something that we should be excited about per say, because this is actually money owed to these companies and they were supposed to pay these funds a long time ago, but it is good that they have decided to set aside some money and to clear off some of the arrears.” He said.

He explained that the amount will not have a significant impact on the economy as it is a small amount for the growing economy like for Zambia. The minister of Finance has announced the appointment of auditors to verify the local debt while no audit or verification had been done for foreign debt.

Most local businesses and those in the informal sector have told ZBT that there is general dampened demand for products as well complaints of no money in circulation, resulting in businesses posting low revenues. Moreover, fuel price increases which are now done on a monthly basis has further exacerbated the harsh economic environment.

0 Comments
0 likes

A financial expert has charged that the

Mining

A Bishop and Overseer at the Life Giving Word Ministries of Chingola has charged that those that are opposing the return of Vedanta are misinformed, or do not know what is on the ground or have been paid, that is why they can’t make informed decisions.

The Bishop accused those that are opposed to the return of Vedanta of being oiled or bribed as this view is mainly peddled by the opposition voices to the ruling UPND government. The return of Vedanta has been controversial and the option of Zambians running the mine through ZCCM IH seem to have been abandoned by the new board led by Dolika Banda.

Speaking in an exclusive interview with the Zambian Business Times – ZBT, Bishop Ellison Bwalya said that there are some people that he cannot disclose who are also calling for the return of Vedanta.

The Chingola Bishop said he has spoken to a number of people on the matter and a lot of members of the general public are scared to come out in the open and back the return of Vedanta because they are under oath and fear losing their Jobs.

An Church Overseer Stated that the community of Chingola are the ones who should be consulted and their views taken on board. Most Chingola residents would be in a better position if they had Vedanta back to take over the operations of KCM.

Bishop Bwalya said the court process is taking too long for Konkola Copper Mine – KCM to reopen which has affected the business and social environment in Chingola and the country at large. The overseer who also intends to supply clothes to KCM employees once fully operational told ZBT that business is not picking up as there are no supply jobs being given to local businesses.

He has since challenged the new dawn government to bring back Vedanta as soon as possible adding that ignoring Vedanta will be costly as it may take long for the court processes to get concluded and arrive at judgement that would be equitable for key stakeholders. He said the country losing out now that the copper prices are at the all time high.

“The sooner the new dawn government bring in Vedanta the better as most the communities in Chingola are suffering. There are also people accusing those that are behind calls for the return of Vedanta of having been oiled (bribed) by the government or Vedanta, but what about those that are opposing, have they also been paid by the opposition? Or other sponsors? Bishop Bwalya questioned.

Vedanta has been heavily opposed following its chairman demeaning remarks against Zambia’s leaders who were said to have been duped into selling the mine at giveaway prices. Moreover, Vedanta had a terrible reputation with delayed payments to local suppliers and contractors. The Zambian government and tax authorities also accused the company of not paying adequate taxes and reporting perpetual loses to lower their tax liabilities.

0 Comments
0 likes

A Bishop and Overseer at the Life

Agribusiness

The six families who have been illegally evicted or expelled from the Kaleya Smallholders Company Limited – KASCOL estates following their questioning of illegal share transfers by businessmen believed to be “connected to high offices” are appealing to President Hakainde Hichilema – HH to intervene and ensure that justice and the rule of law prevails

The six families have been expelled from the Mazabuka based Kaleya smallholders estates following  their questioning of what they have described as an illegal share transfer and take over of the company by commercial farmer Costain Chilala and Corporate Executive Munakopya Hantuba.

They are appealing to HH to intervene as all offices in government from the District, Constituency, Provincial and Ministerial level are afraid to attend to them because of the perpetrators of the alleged illegalities (Chilala & Hantuba) are connected to the head of state.

Some of the affected small holder farmers who have invested their lives at the estate who sought anonymity disclosed to the Zambian Business Times – ZBT, that they have tried to seek audience from the various government and the ruling UPND offices but nothing has been done, the issue is simply being ignored or avoided.

The source told ZBT that the istrict commissioner for Mazabuka has got all the evidence, with all the documentations in place, copies were made avaliable to the DCs office on the illegalities on the acquisition of shares by Chilala and Hantuba.

The source  stated that the provincial administration used to call meetings were the District Commissioner and all the parties involved were being invited including the board of directors for KASCOL and Zambia Sugar.

“It seems there is no office that can take up the matter, it seems we are dealing with people that cannot be take anywhere, people who are untouchable. We have passed through necessary offices who are just quiet or are intimidated to try and resolve the matter”.

“The office of the Mayor, District Commissioner who initially asked for copies have done nothing even after being availed all the evidence. The area Member of Parliament Garry Nkombo who is also the Minister of Local Government openly said “ there is nothing i can do for you, You can you can go to court if you want”, the source said.

And when asked if the small holders famers have attempted to meet with Hantuba and Chilala to iron out the issue, the source stated that, a meeting for consolidation was held before the top six members of KASCOL was held and the farmers presented what needed to be done and the duo [Hantuba &Chilala] acted like they had agreed but went ahead and expelled the top six leaders after the said meeting.

The small holders farmers are appealing for Justice and fair treatment. They said that using the court process is being used against them as they have limited resources to engage lawyers. They have appealed to HH to intervene and not allow people to use his name to commit illegalities and expelled deserving members who have invested their lives by connected people.

0 Comments
0 likes

The six families who have been illegally

Companies

The Zambia Revenue Authority – ZRA has yet again reported that it has exceeded the mid year revenue collection target by K2.1 billion (about $130 million) but analysts and local business people have expressed concern on whether these collected revenues are being spent in Zambia or are mostly being drained out of the economy through foreign payments.

A random survey by the Zambian Business Times – ZBT reveals that most local businesses, traders and those plying their trade in the informal sector are still experiencing low demand for their goods and services with complaints of “no money” in circulation coming up as a daily challenge.

According to a statement made available to ZBT by ZRA, the tax revenue agency has recorded an above-target revenue performance in the first half of the year 2022 after collecting a net tax outturn of K48 billion against the period target of K46 billion, thereby registering a surplus of K2.1 billion or 5% above target.

Some have alleged that ZRA has become aggressive with local tax collections from local businesses which are already strained due to the liquidity. The Association of Microfinance institutions in Zambia – AMIZ disclosing to ZBT that most loans are being taken for consumption and not investments.

The new dawn UPND appointed Finance Minister Situmbeko Musokotwane has been criticized for allowing the deductibility of mineral royalty for corporate income tax assessment purposes for mining companies in Zambia which has resulted in revenue loss of about K3.2 billion ( about $200 million) per annum.

Musokotwane also announced that the new dawn administration has set a target of Zambia producing 3 million tons of copper per annum in the next 10 years (which coincides with two terms of office in government for the UPND).

However, this target of producing 3 million tons of copper per annum has been said to be unrealistic by established mining engineers and mineral exploration experts. The finance minister is yet to share a detailed plan with milestones on how this target would be attained.

The Ministry of Finance and its local government counterpart have been confirming that funds are being remitted into Constituency Development Fund – CDF accounts but a check at Ward and Constituency geographical levels even among ruling UPND connected firms shows that he issue of liquidity and “no money in circulation” keeps popping up.

0 Comments
0 likes

The Zambia Revenue Authority - ZRA has

Markets

Oil Marketing Companies Association of Zambia (OMCAZ) says the Energy Regulation Board-ERB should inform the public what formula it is using to come up with the monthly fuel pump prices.

Association President Dr. Kafula Mubanga explained that it is surprising that the fuel pump price has been adjusted upwards when the price of crude oil on the international market was coming down last month adding that as of today, a barrel of crude oil is costing around $105.

Speaking in an interview with the Zambian Business Times-ZBT, Mubanga said crude oil prices were around $110 a barrel in May and ERB only increased the price of petrol by K0.80 but now that the crude oil prices are around $105 a barrel, ERB has increased fuel prices for petrol, diesel and kerosene by a bigger margin.

“We really do not know the formula that ERB is using, is it taking the behaviour and the performances of the market towards the end of the month in terms of its final week and that becomes the basis of adjusted prices. We need to all understand where ERB is coming from, is it taking in the pricing towards the end of the month, what formula are they deploying to come up with that, that’s the biggest challenge”, he said.

Mubanga noted that guiding the public on what the ERB puts into consideration when coming up with the prices would assist the public to know what to expect every month unlike the current situation where it seems like ERB determines the price without considering the price of crude oil on the international market.

“So then government must justify this particular adjustment, it should give you a comparative analysis because you will find that this month might be the lowest in terms of crude oil prices on the international market, it doesn’t make sense”, he said.

He noted that the association has written to the Ministry of Finance concerning the institutionalization of a national oil marketing company, which is enforceable by law and will help address the various issues the country is facing as a national oil company holds the rights in as far as expanding the portfolios of exploration of oil and gas is concerned.

“It will also be able to aid ERB and the ministry in as far as pricing structures are concerned, they will have an input and also come up with solutions as a state owned company. It gives it mandate to negotiate with people who can explore gas and oil something that we have not taken keen interest in as a country from the time the reserves were discovered in the country, we do have deposits of oil but we need a political will”, he said.

 

 

 

 

 

 

0 Comments
0 likes

Oil Marketing Companies Association of Zambia (OMCAZ)

Mining

The Small Scale Miners Association of Zambia-SSMAZ says small-scale miners are not contributing effectively to the economy because of the high operational costs, which are affecting their production.

Association President Kunda Chani said most of the miners are struggling because of the hiked operational costs noting that the majority of small-scale Zambian miners are not building wealth hence not providing value to the industry.

Speaking in an exclusive interview with the Zambian Business Times-ZBT, Chani said most small scale miners are not providing value to the industry because of the hiked pricing in diesel, which has led to downsizing of their workforce leading to increased price of the tools used.

“The biggest challenge that the industry is facing is stunt growth at the moment as the industry is not growing and building wealth thereby not contributing to the economy”, he said.

Chani noted that the production from the small-scale miners has dwindled due to the high operational costs adding that the larger mass of operation in the artisanal and small-scale mining sector is hand to mouth and when the cost of diesel goes up, the miners are greatly affected.

He said the amount of diesel consumed now has increased therefore the profit margins have reduced and cannot sustain the operations.

The association has since appealed to key stakeholders to double their efforts in terms of political will in order to help the miners enhance their operations, which will see the sector grow thereby increasing the growth of the economy.

 

 

 

 

0 Comments
0 likes

The Small Scale Miners Association of Zambia-SSMAZ

Markets

The annual inflation rate for June 2022 has reduced to 9.7% from 10.2% recorded in May 2022. This means that on average, prices of goods and services increased by 9.7% between June 2021 and June 2022.

Zambia Statistics Agency-ZAMSTATS said the slow down in inflation is mainly because of the price movements in both food and non-food items. Food inflation decreased to 11.9% from 12.3% in May 2022 while non-food inflation decreased to 6.9% from 7.5% in May 2022.

ZAMSTATS-Interim Statistician General Mulenga Musepa however noted that annual inflation for June 2022 increased for Lusaka (8.2% from 8.0%), Northwestern (13.9% from 13.2%) and Southern (10.9% from 10.5%) provinces.

According to information made available to the Zambian Business Times-ZBT, Musepa said total trade in May 2022 decreased by 6.9% to K31.2 billion compared to K33.6 billion in May 2021 and a trade surplus of K3.4 billion was recorded in May 2022 indicating a 14.1% decrease from a surplus of K3.9 billion in April 2022.

Musepa mentioned that the reduction in the trade surplus was driven by an increase in imports noting that imports increased by 12.2% to K13.9 billion in May 2022 from K12.4 billion in April 2022 adding that the increase in imports was mainly on account of 18.4% and 23.1% increases in import earning from raw materials and intermediate goods respectively.

He explained that exports increased by 5.9% to K17.3 billion in May 2022 from K16.3 billion in April 2022 and the increase was mainly on account of 15.9% and 5.8% increases in export earnings from raw materials and intermediate goods, respectively.

2 Comments
0 likes

The annual inflation rate for June 2022

Agribusiness

The National Union for Small Scale Farmers in Zambia-NUSFAZ says it is surprising to hear government say it will increase the number of fertiliser bags farmers will receive in the 2022/2023 agriculture season from four to six.

Government announced that it has increased the amount of fertiliser bags that farmers will receive under the Farmer Input Support Programme (FISP) in the 2022/2023 agriculture season from four to six bags.

Speaking in an interview with the Zambian Business Times-ZBT, Union Executive Director Ebony Loloji said according to the information that the union has, farmers were receiving six bags of fertilizer last season.

“I thought that in the last season they were giving six and then the report that we are getting is that they are increasing from four to six, they are saying last time they were getting four but from the information that we have, last season the farmers were getting six”, he said.

Loloji has appealed to government to address all the issues surrounding the implementation of FISP adding that the programme has been characterised by many flaws such as ineligible people accessing the inputs.

“Our appeal is that in as much as they are saying they have increased the fertiliser allocation to the beneficiaries, it is also important that all the loopholes are sealed. So that the correct beneficiaries are able to get the correct number of bags which is six bags, three D compound and three top dressing”, he said.

“It has reached an extent where cadres were getting fertilizer, other people would get it and sell it meanwhile the real beneficiaries, people entitled to this programme were walking away with one or two bags which should not be the case”, he said.

He said this would ensure that farmers are empowered adding that they will be in a position to produce more for the country.

 

 

 

 

 

0 Comments
0 likes

The National Union for Small Scale Farmers

Tech

Ministry of Technology and Science Permanent Secretary Dr. Brilliant Habeenzu has disclosed that government does not intend to privatise Zamtel.

Speaking in an exclusive interview with the Zambian Business Times-ZBT, Habeenzu said the company has continued to make losses but the ministry is working to change the narrative noting that government has plans to make entities such as Zamtel profit making so they can be self-sustaining.

Habeenzu explained that Zamtel currently needs an injection of about $260 million for recapitalization adding that government is not happy with the way the company is operating.

“They are telling me that it is because they are in areas which are underserved and unserved areas where it is not profitable but they have continued to be there because they are a government entity and they have to serve those areas”, he said.

The Permanent Secretary however mentioned that government has not prescribed any solutions so far but stressed that all the rumors going round that government has privatised Zamtel are false.

“We have not prescribed any solutions so far as government. Those rumors that are going round to say government has decided to privatise Zamtel are not true, what has then been decided is that we are going to find a solution together with the private sector through the Public Private Dialogue Forum (PPDF)”, he said.

He noted that Zamtel is unable to help drive the digital transformation agenda, which needs a minimum of 746 towers in order to cover 96% of the country, which includes data.

Habeenzu added that under the digital transformation strategy, government intends to put as many services as possible online so that efficiency can be improved as well as effective service delivery, which as a result will see growth in the economy.

 

0 Comments
0 likes

Ministry of Technology and Science Permanent Secretary

Companies

Zambeef Products has appointed Faith Mukutu as its new Chief Executive Officer-CEO with effect from July 1, 2022.

Mukutu becomes the first Zambian CEO in the 28-year history of Zambeef, which is listed on the Lusaka Securities Exchange and the Alternative Investment Market (AIM) of the London Stock Exchange.

According to a statement seen by the Zambian Business Times-ZBT, Mukutu replaces Walter Roodt, who will remain on the Zambeef Board in a strategic role overseeing the company’s US$100 million expansion plans that will see cropping at its Mpongwe farms double and a resulting knock-on effect on efficiency and production throughout its value chain.

Mukutu (41) takes the top position as Zambia’s favourite integrated food producer and retailer enters a period of expansion that aims to support national and regional food security.

“Zambeef is a home-grown world-class company that has set a new standard in food production and retailing, creating thousands of jobs and supporting our farmers throughout the country. I am thus immensely proud that the board has given me this opportunity to take the company to the next level”, said Mukutu.

“It is a role I will approach with dedication and a sense of duty to build on the legacy of one of the nation’s flagship companies”, she added.

An accountant by training, Mukutu joined Zambeef in 2019 as Chief Financial Officer, having previously been Finance Director of three listed entities: Zambian Breweries Plc, National Breweries Plc and Zambia Sugar Plc. The Appointment of a new Chief Financial Officer will be announced in due course.

“The Board is confident that Faith’s combination of financial aptitude, operational skill, strategic flair and capital markets experience is fundamental to delivering the strategic imperatives the company has embarked on”, said Board Chairman Michael Mundashi.

1 Comment
0 likes

Zambeef Products has appointed Faith Mukutu as