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Resident Doctors Association of Zambia – RDAZ President Dr. Brian Sampa has disclosed that the issues popping up  at the Ministry of Health – MOH and it’s key institutions such as the University Teaching Hospital – UTH are no longer about money, but about the quality of management and leadership.
Dr. Sampa stated that it’s not about money because the new dawn government keeps on announcing billions of money being released. Moreover, this is the only government which has managed to release K3.3 billion for medical supplies, thus it is not about money but about the management challenges at the ministry.
The RDAZ President said that the Minister has lamentably failed, thus the issue of management at the ministry requires the intervention of the President. The minister has no capacity to run the ministry at this moment, it’s like it’s complicated for her.
In an exclusive interview with the Zambian Business Times – ZBT, Dr. Sampa said Ministry of Health is so critical such that it’s smooth operations boarders on national security, it’s very cardinal and the goodwill of the president may be tarnished just because of one ministry”.
The current Health Minister [Sylvia Masebo] who is also Chongwe member of parliament has shown several times that she does not believe that we have a problem in MOH, she believes whatever people are talking about are just insinuations from people who are not happy”, RDAZ has revealed.
Dr. Sampa says Zambia has a collapsing health system and things are not okay, these are things always talked about but no one seems to be paying attention. He said the suspension of full blood count testing by the University Teaching Hospital under  the department of pathology and microbiology is just a tip of an iceberg, because others areas are also in crisis. The CT scans are not working,  the X-ray machines are not working, the ultra sound machines etc have challenges.
He further re-iterated that there are no drugs and needles among other things in most public health institutions. Dr. Sampa added that if one has a fracture and goes to the hospital today, there will be need for one to buy his/her own bandage and cotton wool among others. He told ZBT that at cancer hospital, people are dying because the drugs are not there.
UTH has today through a statement  announced the suspension of full blood count testing – a basic and essential procedure – attributing the suspension of the service to the lack of reagents for instruments. The statement from UTH further stated that until the department of pathology and microbiology receives the needed reagents, it cannot predict when testing will be resumed.
Efforts to get a comment from the health Minister Sylvia Masebo proved futile by press time.
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Resident Doctors Association of Zambia - RDAZ

Markets

Former Economic Association of Zambia – EAZ President Lubinda Haabazoka has observed that “People don’t have money and that’s why inflation is slowing”.

Haabazoka stated that because people don’t have money, “people can’t import goods that’s why the exchange rate is strong and so where there is no money there is reduced consumption which means companies that produce goods and services have no business. That can lead to lack of employment, people won’t be employed because there is no demand for goods and services being produced”, he said.

The economist said “payments are taking time; they are dragging, so there is no efficiency for what is happening, people should be paid promptly because those are businesses. He also called for companies to find ways to move away from supplying government so that there is no or limited dependency on government for business”.

He stated that one of the reasons why the economy has continued to experience low liquidity were most people are saying there is “no money in circulation” is because many suppliers of government goods and services remain unpaid.

Haabazoka explained that nonpayment of money owed to suppliers has resulted in reduced economic activities and the trickle-down effect is that employees remain unpaid and there is reduced consumption of goods, which means companies that produce goods have also been affected, as there is no business.

Speaking in an exclusive interview with the Zambian Business Times-ZBT, Haabazoka welcomed governments’ release of K368.8 million in May 2022, which was channeled towards dismantling liabilities or arrears for goods and services previously supplied to government.

He however noted that what was released towards the payment of suppliers is minimal compared to the billions of kwacha that the suppliers are owed therefore government should speed up the process of dismantling the arrears owed to suppliers so that the economy can start running.

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Former Economic Association of Zambia - EAZ

Markets

The Zambia Revenue Authority – ZRA has opted to remain mute on allegations that government is paying out excessive tax refunds and dedicating excessive resources to dismantling the controversial VAT refunds to the mining companies resulting in the current liquidity (no money in circulation) challenges being experienced across the country.

Efforts by the Zambian Business Times – ZBT to get official responses on the allegations from ZRA on the VAT and other tax refunds that have been paid out for the first quarter of 2022 as well as the net tax revenue position from the mining sector have proved futile.

Zambia’s Copper mining sector represents over 70% of the country’s total export, copper is currently trading around US$9,600 per ton, a price point considered to be among the best times and yet that country does not seem to be getting the much needed trickle down effect.

Most business leaders have indicated that their companies are facing low demand for goods, depressed sells and a general atmosphere of low spending power and low liquidity (no money in circulation) challenges. The upward fuel price adjustments have exacerbated the cost of living in Zambia further dampening consumer demand.

The Zambia Revenue Authority (ZRA) had earlier reported that it recorded an increase in mining company tax collections for the period January to April 2022 compared to the same period in 2021. But their report was short of stating the net tax positions, as allegations are that ZRA is picking up reduced net tax positions after paying out VAT and other forms of tax refunds.

There are growing allegations that ZRA is paying out more to mines in form of tax refunds compared to how much the agency is making from tax collections, the net position is alleged to be deteriorating, which is shocking at a time when there are better international copper prices.

Economist Yusuf Dodia told the Zambian Business Times – ZBT that government is struggling to pay off Value Added Tax (VAT) refunds to mining companies as it has a huge debt to the mining firms where VAT refunds are concerned. There has been no public audit conducted to verify the outstanding VAT refunds debt.

Zambia had in 2020 paid K8.5 billion in value added tax refunds to mining companies and according to the Zambia Revenue Authority, government was owing K7.1 billion in VAT refunds to mining companies as of January 2021.

The government economic management team at the Ministry of Finance and Bank of Zambia have all indicated that getting an IMF deal remains the one and only viable way out, but countries like Ghana that had gotten on similar program continued to experience harsh economic conditions for the majority of their population to an extent were they abandoned the IMF program before it ended.

Further efforts to get a comment from ZRA on how much the authority has paid out to mining companies in terms of VAT refunds proved futile as press queries sent to the authority’s Acting Corporate Communications Manager Oliver Nzala proved futile by press time.

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The Zambia Revenue Authority - ZRA has

Agribusiness

If you thought the Kwacha appreciation is good for everyone, think again as exporters and manufacturers take a hit whenever the local unit gains against major convertible currencies such as the US dollar.

One such crop which has about 90% of its output exported and earns the Zambian economy the much needed forex is tobacco. This crop has an extensive outgrower farming community which the Tobacco Association of Zambia estimated to be over 16,000 farmers.

This large number of local outgrower farmers that sell in Kwacha to off-takers such as Japan Tobacco International – JTI, Tombwe, Alliance One etc have been hurt by dropping Kwacha prices this year following the appreciation of the Kwacha.

One of the top five Tobacco Processing and Trading companies in Zambia has disclosed that the local prices of tobacco have gone down this year due to mostly the appreciation of the kwacha, a situation that is being interpreted negatively by most outgrower local farmers.

A source who asked to remain anonymous due to the sensitivity of the matter explained that tobacco which is mainly exported is fetching for less in Kwacha terms this year compared to last year because the kwacha to a dollar exchange rate was around K21 per dollar in 2021 but is now trading around K17 per dollar, meaning that even if the prices for export have been maintained in dollar terms, the local farmers will get less Kwacha sells revenues .

Speaking in an exclusive interview with the Zambian Business Times – ZBT, the source explained that tobacco is a crop that needs to be handled carefully because if not cured properly, the crop can be sold for a very low price. The source noted that how much one gets for their tobacco harvest is heavily dependent on the quality, adding that the best quality is currently selling around K76 per kg or $4.5 per kg.

“You can have a big leaf in the field but if not cured properly, you can sell it as low as K2.70. The best grade was K84 in April 2022 but now it’s  about K76 as the exchange rate is now at K17, last year, the same quality and quantity of leaf was going for around K110 when the exchange rate was around K21 “, the source said.

The source said a thin leaf was K77 per kg for the best quality when the exchange rate was around K18 but now that the kwacha has slightly appreciated, the same crop would earn the farmer around K64 per kag now.

With Commercial farmers, the outlook may be different as most of these farmers are able to hedge as sell in dollars as well as have dollar denominated cost of production structures and financing facilities. The local financial services industry is yet to come up with tailored solutions for small, medium and emerging outgrower farmers who end up taking up the exchange losses.

Zambia has continued to lag behind its Neighbours Malawi and Zimbabwe as far as Tobacco production and exports are concerned, with analysts challenging government to grow Zambia’s share of the lucrative global export quotas.

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If you thought the Kwacha appreciation is

Agribusiness

Oilseeds stakeholders have allowed the Grain Traders Association of Zambia-GTAZ to export 100, 000 metric tonnes of soya beans due to increased production following the Ministry of Agriculture’s announcement that the country’s estimated production of soya beans is 475, 353 metric tonnes in the 2021/2022 farming season.

According to FNB Zambia’s Agribusiness monthly report for May/June 2022, soya beans closed off the month of May trading at $630 per ton therefore Zambia is expected to bring in $63 million from the export of 100, 000 metric tonnes of soya beans.

In a statement made available to the Zambian Business Times-ZBT, Zambia National Farmers’ Union-ZNFU said Oilseeds stakeholders met in Lusaka for a consultative meeting on soya beans marketing during the 2022 marketing window and unanimously agreed to export 100,000 metric tonnes of soyabeans.

Stakeholders who were part of this resolution include the Grain Traders Association of Zambia-GTAZ, the Poultry Association of Zambia (PAZ), the Dairy Association of Zambia (DAZ), the Crushers of Edible Oils and Refiners Association (CEDORA) and ZNFU.

ZNFU Public Relations Manager Calvin Kaleyi explained that 230, 000MTs of soya beans will be utilized in manufacturing of feed and other animal protein while 50, 000 MTs will be utilized in the manufacturing of food for human consumption, bringing the total domestic requirements to 280, 000MT, which would leave a total of 195, 353MTs of soya beans available on the market.

Kaleyi said the stakeholders recommendation to the Ministry of Agriculture to allow for the allocation of 100, 000MT of soya beans for export through the Grain Traders Association of Zambia, will allow the traders to participate in soya beans marketing and venture into the export market, which will in turn be of benefit to the entire value chain which is key to future expansion of soya beans production.

He added that permitting for the allocation of 95, 000MT for soya meal/cake to the Crushers of Edible Oils and Refiners Association (CEDORA) will allow the Refiners to export soya cake while stock feed processors lock in their domestic requirements.

Kaleyi noted that oilseeds stakeholders have since submitted the resolutions to the Ministry of Agriculture for implementation.

 

 

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Oilseeds stakeholders have allowed the Grain Traders

Mining

The Zambia Gold Company – ZGC , the company in charge of Kasenseli gold mine has failed to confirm the projected date or timeline of re-opening the Mwinilunga based gold mine despite the Ministry of Mines claims that they have lifted suspension of its operations.

Earlier the Mines Director at the Ministry of Mines and Minerals Development Fred Banda disclosed to the Zambian Business Times – ZBT that the suspension of the operations at Kasenseli gold mine had been lifted with conditions for resuming operations given to ZGC.

ZGC Public Relations Manager Mathews Liyani when contacted by ZBT however said there are still some things that need to be cleared at the ministry of mines and it would be too early for them to comment. He added that the case is still being handled at the ministry level and the ministry of mines and minerals development would be in a better position.

Speaking in an exclusive interview with the Zambian Business Times – ZBT, Liyani said the company will only be able to give a comprehensive comment once the ministry of mines and Minerals Development finalises on what they are doing.

He said he could not confirm if Kasenseli Gold Mine will or will not reopen any time soon. Liyani referred the matter back to the ministry of mines stating that “the Ministry of Mines and Minerals Development would be in the better position to give the right update on when exactly will the Company re-open the gold mine”.

The continued indefinite closure of Kasenseli Gold Mine’s operations have continued to harm Zambia’s gold reserves build up as the central bank – BOZ has confirmed that purchases from ZGC have been discontinued after the mine operations were indefinitely suspended by the new dawn government upon assuming state power.

There seems to be a business as usual approach at the ministry of mines were strategic gold mining operations have remained suspended for about half a year, losing the country millions of dollars in forgone export revenues.

Even large scale copper mines operations such as Mopani Copper mines and KCM are operating at sub-optimal levels despite the current high global copper prices due to failure to urgently resolve the capitalization and investment requirements, some of which can even be sourced using their parent company ZCCM IH without waiting for foreign equity partners or investors.

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The Zambia Gold Company - ZGC ,

Markets

The Zambia Association of Manufacturers (ZAM) says the African Continental Free Trade Area (AfCFTA) currently seems to be in favour of African countries with a larger industrial base and not for countries like Zambia, which have smaller manufacturing industries.

Association President Ashu Sagar explained that Zambia is amongst the countries that have a lower export potential in the AfCFTA, therefore, there is a high possibility of a surge of imports from countries with a larger industrial base.

In an interview with the Zambian Business Times-ZBT, Sagar said the surge in imports would affect the local manufacturing industry because countries with a larger industrial base have achieved economies of scale and their products are significantly cheaper than the equivalent products made locally.

Sagar said Zambia should focus on strengthening its safeguard provisions in the AfCFTA in order to protect the domestic manufacturing industry from the risk of dumping of imported cheaper products.

He stressed that one of the main concerns is protecting the infant industry and making sure it has a sound base to compete in the new AfCFTA environment adding that the Zambian government can work with the private sector to develop the export capacity and diversify into more value-added exports.

The Association president mentioned that according to the United Nations Conference on Trade and Development (UNCTAD) Policy Brief No. 94 of 2022, the AfCFTA might not be as hopeful for Least Developed Countries (LDCs) as it might be for developing countries.

Sagar added that the UNCTAD’s Policy Brief No. 94 revealed that the 33 LDCs in Africa only account for 16% of the export potential in the AfCFTA, whilst majority of the export potential lies with Egypt, Morocco and South Africa.

He however noted that once implemented, the Africa Continental Free Trade Area (AfCFTA) will connect 1.3 billion across 54 African countries, therefore having a combined GDP of US$ 3.4 trillion adding that for trade in  goods, the AfCFTA will liberalize 90% of the tariff lines, eliminate non-tariff barriers and will  facilitate for easy movement across borders.

 

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The Zambia Association of Manufacturers (ZAM) says

Companies

One of Zambia’s leading banks – Atlas  Mara has launched Zambia’s first ever Small and Medium Enterprises – SME mobile app during the launch of the new and improved SME customer value proposition.
The bank which has maintained one of the largest physical presence in Zambia with 50 branches, 116 ATMs spread across all the ten provinces has revealed that its new SME customer value proposition is based on a comprehensive set of workable and scalable solutions that will enable over 16,000 existing Atlas Mara Bank SME customer and prospective customers to transact efficiently and effectively.
Atlas Mara acting CEO Bobbline Cheembela said that the new SME customer value proposition took the team two years to develop the structure after visiting all ten (10) provinces and holding focus group discussions with small and medium business enterprises.
He said, the team went through key sources on research to fully understand the SME ecosystem and its needs.
At an event that was held in Lusaka today, the CEO said the research resulted into three key areas of needs, among them is, easy conducting of transacting and understanding of the position of their accounts without calling or going to the bank, need for advisory services and help to develop capacity to managae their business and the need for easy and hustle free lending arrangement with a shorter turnaround time.
Cheembela further added that the customer value proposition has three key features to answer to the needs of the majority SMEs, on the three is the New SME Mobile application which will aid business owners in building and managing their businesses. He stated that the mission is to develop digital tools that enable business owners to automate time-consuming administrative duties such as scheduling, payment collecting etc.
“The app will help our SMEs from wherever they are to have information on what transaction have gone through their accounts and the expected payments received from their customers”, he said.
The Atlas Mara acting CEO stated that the second feature is the Atlas Mara business club through which the need for advisory and capacity development services have been answered. The club will help provide practical business advice to the SME customers and provide SME’s with opportunities to network, source markets and receive assistance in developing competent business capacity, he added.
Cheembela stated that the third feature is the lending programme which is an answer to an easy and hustle free lending arrangement with shorter turnaround time. He said this will not only aid the financing needs of SMEs, but also address the issue of limited security that most SMEs find themselves in, by arrangements with partners that are able to provide cover of up to 70% if the SME meet all criteria which answer to a viable business undertaking, he said.
Atlas Mara has reiterated that the bank will continue to support the needs of Zambian SMEs by increasing customer loyalty and satisfaction.
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One of Zambia’s leading banks - Atlas

Mining

Chililabombwe Member of Parliament – MP Paul Kabuswe has clarified that the distributions of free educational and learning materials to vulnerable primary school learners in his constituency is a donation which came from well-wishers.

This follows social media speculation that Vedanta Resources were behind the monsters donation in a bid to win back the mine after having fallen out and lost control of Konkola Copper Mines – KCM. KCM has large scale Nchanga Copper Mine at Chingola and Konkola Copper Mine at Chililabombwe.

The Chililabombwe MP is on record of launching the distribution of free learning materials to vulnerable learners in his constituency, a move that has raised a number of questions with a lot of people wanting to know where exactly the funds used to procure the educational materials are coming from.

Speaking in an exclusive interview with the Zambian Business Times – ZBT, Kabuswe who is also Minister of Mines said there is no much money involved, adding that the donation is only a small budget aimed at helping vulnerable learners.

Kabuswe said the programme will help vulnerable learners acquire these educational materials and as a result, given an opportunity to every child to be in school. He said the programme will be done every after two months as he hopes that it goes a long way.

Chililabombwe MP said all schools in his constituency will receive ten thousand books, pencils and other learning materials each. “There was no money that we received, it is just small exercise books, pencils and pens. It is not even a big budget, it is just for the vulnerable people,” he further said.

The Chililabombwe Member of Parliament could however not disclose who the well-wishers involved in this donations are. Donations by ministers to their constituencies always attracts suspicion due to the power these top government officials hold to sway public policy. Kabuswe is not the only minister who has made donations to his constituency.

Zambia currently has no laws that require political parties and politicians to disclose their sources of funding. As a result, most of the funding to political parties are made in cash or in kind, a situation that makes these donations susceptible to misappropriation and corruption.

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Chililabombwe Member of Parliament - MP Paul

Companies

Centre for Trade Policy and Development- CTPD has backed the decision by ZESCO to source poles from foreign companies, sighting capacity issues with local companies.
Two local companies – the Zambia Forest and Forestry Industry Corporation – ZAFFICO and Copperbelt Forestry Company – CFC had earlier confirmed that they were capable of meeting ZESCO’s demand for wooden poles. ZESCO initially admitted to not engaging local suppliers first but the power utility has since indicated that they will go ahead to issue the said tenders to foreign firms.
CTPD in supporting ZESCO’s decision stated that the issue of local companies being able to supply goods and services when there is urgent need, is a tricky one, its one thing to say they can and it’s another to make sure that there is consistency in supply.
CTPD head of research Boyd Muleya told the Zambian Business Times – ZBT that in as much as parastatal companies like ZESCO are willing to give concessions [or tenders] to local companies, it is very difficult in terms of getting the best returns because most local companies give short repayment periods, hence ZESCO would opt for [a foreign] company that might offer them three things, payment periods that are favourable, the quality of what is being supplied and consistency in the supply of the products.
And when asked if giving of concessions or tenders to foreign companies is running away from the message that government has been preaching of promoting local business for local investments, Muleya stated that the thrust by the government is correct but the systems are not in place to ensure that the country attains that.
He told ZBT that whilst the local companies are preparing to be the suppliers that will be more reliable, companies are still free to get goods and services where there is consistent supply. “Not to say that we should not support our own, it is about preparing them to an extent were they are able to supply to that extent”, he said.
This is the case where Zesco limited was cleared by Zambia public procurement Authority- ZPPA over its decision to buy the 9 and 12 wooden poles from ten (10) foreign countries from South Africa and Zimbabwe. ZESCO was accused of needlessly externalizing the much needed forex for products that could be sourced locally at better prices.
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Centre for Trade Policy and Development- CTPD