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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

Mining

The Kitwe Teaching Hospital, the main government hospital for Zambia’s second largest city of Kitwe on the Copperbelt has refuted claims that it admitted some bodies that were Brought In Dead – BIDs from the black mountain.

Kitwe Teaching Hospital acting Public Relation Officer Nkuluka Hlupazi said the Hospital has not received any brought in dead persons nor injuries from the black mountain.

Confirming to the Zambian Business Times – ZBT, Hlupazi stated that the stories that are circulating on some media outlets were not true as the hospital has not received any victim from the black mountain.

She said the videos and pictures circulating on social media are not really from the black mountain but from somewhere else where an accident occurred.

The Acting Public Relations Officer said the Body that is being shown on facebook and other media platforms is from Kalulushi and not from Kitwe’s black mountain. She said the deceased died after a road accident which occurred in Kalulushi district of copperbelt Province.

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The Kitwe Teaching Hospital, the main government

Agribusiness

Zambia has no excuse for the continued wheat deficit which has led to continued wheat imports, a Zambian Commercial Wheat farmer has disclosed. According to the latest available statistics for 2021, Zambia has continued to have a wheat deficit and was importing about 100, 000 tonnes of wheat to cover the deficit.

David Samutela, a Zambian Commercial Wheat farmer and Director of Rockshield farm of Mkushi has told the Zambian Business Times-ZBT that Zambia has the requisite soils, available land and a young working population that are capable of growing enough wheat to meet its local consumption demand and later aim to export the excess.

Samutela said it is unclear why the country has continued to import wheat despite the Zambia National Farmers’ Union (ZNFU) records showing that the country is capable of producing enough wheat for local consumption.

He explained that one of the reasons the millers have continued to import wheat is because they process it into products such as flour and export to neighboring countries. The commercial farmer who has broken the mental barrier to venture into cultivation wheat noted that this year’s harvest is expected to improve because the weather and rainfall was okay and most dams are full, therefore there will be good production coupled with projected good prices for the farmers.

Samutela predicted that there will be no need for imports to meet local demand because the farmers will produce enough as many farmers have gone into full production due to the availability of water. “We have had droughts, there wasn’t enough water to do irrigation but with good rains, the dams are full, so farmers are able to go into full production”, he told ZBT.

He further mentioned that the biggest challenge for wheat farmers continued to be capital. Wheat cultivation involves investing in the high cost of fertilizer, fuel and specialised chemicals. Since most of these inputs are imported, there is need to have a stable currency if more local farmers are to venture into wheat.

Samutela said he hopes that government will actulise its pronouncements of going into value addition and industrialisation so that the country can produce its own fertilizer which will bring the cost of fertilizer down adding that government should focus on agriculture as it is the biggest employer.

Analysts point to the lessons that can be drawn from the adverse effects of the Covid-19 pandemic and the current conflict in Ukraine and Russia, which point to the fact that it is important to be self sufficient as a country.

The world’s second largest wheat producer India, has imposed a partial ban on wheat exports in order to focus on domestic demand which should be a wake up call on the importance of producing enough food as a country so as to avoid any disruptions in supply. Countries like Zambia should be able to take these lessons on board and become net exporters of wheat.

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Zambia has no excuse for the continued

Agribusiness

Copperbelt Forestry Company (CFC) says it is in the process of signing a deal with ZESCO, which will see the company supply 6,500 transmission poles to the power utility company.

A source who sought anonymity said currently, CFC has no running contract with ZESCO but is likely to sign a contract with the utility company next week adding that ZESCO would be awarding the company contracts in phases depending on how much poles it is able to supply at a particular time.

Speaking in an interview with the Zambian Business Times-ZBT, the source explained that the company is still cutting poles noting that some poles will dry in November and December and it takes five to six months for poles to dry.

“There are local contracts which after talking to us they said they will sign but the difference is what they want to get from outside, so for what we have now, we are signing the contract by next week. We are getting orders from ZESCO, they have given us, we are just finalising on the signing part”, the source said.

The source explained that the company currently has poles equivalent to the order that ZESCO has given them and is capable of supplying 30, 000 poles by the end of the year.

“They came to our plant and checked what we are able to supply now. They are giving us an order and when we have some more dry poles, they advised that we indicate to them that we have poles and we will be able to supply”, the source said.

Last month, the Zambia Public Procurement Authority (ZPPA) cleared ZESCO over its decision to procure wooden poles from Zimbabwean and South African companies stating that the use of Limited Bidding procurement method by ZESCO to acquire the treated wooden poles was within the law.

ZPPA Director General Idah Chulu said ZESCO relied on section 42(2) of the Public Procurement Act No.8 of 2020, which states that when there is an urgent need for the goods, works or services and engaging open bidding would be impractical, limited bidding procurement method would be used.

 

 

 

 

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Copperbelt Forestry Company (CFC) says it is

Mining

Zambia’s second largest gold mine, Mwinilunga’s Kasenseli gold mine whose operations were suspended following the change of government has now had the suspension lifted. The mine management is now free open the gold mine after they fulfill some set conditions by the ministry of mines.

Director of Mines at the Ministry of Mines and Minerals Development Fred Banda has disclosed that the suspension of operations at Kasenseli gold mine has been lifted but could not state the targeted date when the mine would resume operations.

Kasenseli Gold Mine operations were suspended following a ministerial directive by the Minister of Mines Paul Kabuswe. Kabuswe when suspending operations at Zambia’s second largest gold mine (second to FQM’s Kansanshi Mine) sighted concerns relating to mining license conditions as well as safety regulations among other concerns.

Speaking in an exclusive interview with the Zambian Business Times – ZBT, Ministry of mines and Minerals development Director of Mines Fred Banda disclosed that the suspension has been lifted but was quick to mention that there are a number of conditions that have to be fulfilled before the actual operations can resume.

The Mines Director however told ZBT that the actual gold mining and production will only commence once the mining firm – Zambia gold company – has fulfilled all the conditions that have been given to them and that Zambia Gold Company was in a better position to state when they project they could fulfill the conditions set and when exactly the mine would open.

The Zambia Gold Company, a subsidiary of ZCCM IH started its official gold mining operations at Kasenseli in June 2020, was opened with great anticipation and hope for the Zambian economy as the huge gold reserves held were believed to be large enough for the set up of a huge gold reserve that could provide a viable alternative to holding of US dollar reserves.

However, the mine operations and gold production has now been shut for about half a year, depriving the country of the opportunity to aggressively build up its gold reserves. The Bank of Zambia was left to rely on gold supplies from the privately held Kansanshi Copper and gold Mine.

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Zambia’s second largest gold mine, Mwinilunga’s Kasenseli

Agribusiness

The National Union for Small Scale Farmers in Zambia-NUSFAZ has appealed to government to devote atleast 10% of the 2023 national budget to the agriculture sector.

Union Executive Director Ebony Loloji said the agriculture budget should conform to the Malabo declaration, which states that member countries or countries signatory to that declaration should devote atleast 10% of their budget towards agriculture.

Speaking in an interview with the Zambian Business Times-ZBT, Loloji explained that most resources for the agriculture sector are dedicated to the Farmer Input Support Programme (FISP) and the Food Reserve Agency (FRA), which gobble more than 50% of the budget leaving other equally important programmes to suffer.

Loloji noted that there is need for a paradigm shift for the 2023 budget if the agriculture sector is to develop adding that inputs distributed under FISP as well as a market for the farmers through FRA are important but research, extension, irrigation and livestock are equally important to the development of the sector

“Go to countries where you know they have devoted a considerable amount of resources to those programmes you will realise that the agriculture sector has actually developed at a much faster rate than what is happening in this country”, he said.

He said there should be more resources allocated to research so that more information is availed to farmers which would enable them to be more productive adding that the extension service should also be funded adequately so they are able to work closely with farmers and provide them with updated information from continuous research.

The Union representative mentioned that Zambia has 2 750, 000 hectares of land which has potential for irrigation but only 8% has been exploited therefore the need for more investment so that small scale farmers have access to irrigation which will enable them to produce throughout the year and increase their income.

Loloji noted that the tax measures introduced in the 2022 national budget were favouring large-scale farmers even though small-scale farmers are responsible for the production of most maize in the country as well as more than 80% of the cattle population.

“Going forward let’s be careful as we put in tax measures and who they will benefit more. Tax incentives are always given to big equipment like combine harvesters and big pumps which can only be accessed by large commercial farmers so it’s time to give incentives that would benefit small scale farmers too. Reduce tax on boreholes so that small scale farmers can have access to that, diesel pumps too, relax tax measures on that and walking tractors too so that small scale farmers can have access to that”, he said.

 

 

 

 

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The National Union for Small Scale Farmers