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Agribusiness

The Grain Traders Association of Zambia-GTAZ says the maize floor price for the 2021/2022 crop-marketing season will be lower than the price for the 2020/2021 crop-marketing season.

Speaking in an interview with the Zambian Business Times-ZBT, Association Spokesperson Yotam Mkandawire explained that last year’s maize buying price was not genuine as it was induced politically therefore the expectation is that this year’s price will be market reflective.

“It was politically motivated because the president increased the price of maize, it was not the price that the market was expecting, it was an induced price, it was pronounced for the sake of elections and votes”, he said.

Mkandawire however noted that the price of the new crop will not stay low for long and will start going up because of the shortages in the region adding that there is a high demand for maize in the neighbouring countries.

“Beginning of the season, the price will be low but it will start going up eventually. Right now because of the moisture content, the price of maize is low because when people are buying they are factoring in the water in the maize and because of that water; you cannot give a very good price. As time progresses, around June-July prices will go up because the moisture content would have reached the desired level”, he said.

He also mentioned that the price of maize would be determined by factors such as the cost of production, cost of inputs , cost of labour and the cost of fuel adding that the cost of fuel is currently high therefore transporting a tonne of maize now will cost more than last year’s cost to transport the same quantity.

Mkandawire stressed that despite the reduction of maize production this year, maize prices would not be affected by this factor due to the substantial quantity of maize reserves that the country has.

Agriculture Minister Reuben Mtolo has disclosed that the country has recorded a decrease in maize production from last year’s 3.6 million metric tonnes to 2.7 million metric tonnes, which represents a 25.24% decline.

The minister said the reduction in maize production is due to the reduction in the area planted and the reduction in yields per hectare from 2.14 metric tons last season to 1.8 metric tons in the 2021/2022 farming season.

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The Grain Traders Association of Zambia-GTAZ says

Companies

The Road Transport and Safety Agency- RATSA and Bus operators have resolved to maintain the bus fares for local routes, inter- mine and peri-urban due to the negligible average  price reduction on diesel which most buses use.

The two key stakeholders have however agreed to reduce bus fares for all  inter-city routes  by K10.00 with effect from 12th May,2022, following  a slight drop in fuel pump announced by the Energy Regulation Board- ERB.

In an exclusive interview with the Zambian business times- ZBT, the Bus and Taxi Association of Zambia spokesperson Amis Daudi said that most of these buses used on the road are diesel propelled and the reduction in the price of diesel is under K1 (58 Ngwee to be specific) per liter thus the amount of money reduced in the cost of running a single bus is seen.

And in a statement made available to the Zambian Business Times – ZBT, the RTSA head for public relations, Fredrick Mubanga said that ERB reduced fuel pump prices by K2.35 for petrol and K0.58 for diesel with effect from 1 may, 2022 and that on 2nd may, 2022 RTSA held a consultative meeting with Bus and Taxi Owners Association of Zambia – BTOAZ, Commuter Rights Association of Zambia – CRAZ and Zambia Consumer Association- ZCA.

He has further stated that the meeting resolved to continue monitoring the factors affecting bus fare variations using the developed bus fare model which take into account the inflation rate, the cost of fuel and other operating costs.

Mubanga said that RTSA commits itself to fully manage the stakeholder engagement process in bus fare adjustment to protect the interest of the public while safeguarding the operations of the passenger.

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The Road Transport and Safety Agency- RATSA

Mining

First Quantum Minerals – FQM’s is set to massively boost its financial performance after a confirmation that it would be opening a nickel mine at Kalumbila,  with the company the expecting to generate revenues of about $800million per annum after a reported total initial investment of only $350 million.

FQM in a statement made available to the Zambian Business Times – ZBT, has confirmed that the mine would be opened in the next twelve months after the confirmation of an additional investment of $100 million to the $250 ‘enterprise nickel mine’ to bring the total to about $350 million.

The company stated that the mine is expected to have an annual production of 30,000 ton per annum. With the current Nickel spot prices of about $28,000 per ton, the annual revenues to be generated are expected to be about $810 million per annum, from a total reported investment of only $350 million

About 700 permanent jobs will be created once the mine is operational. The company did not however confirm its total invested amounts as analysts have stated that an annual return of $800m per annum from an investment of $100m plus the reported $250 million looks too lucrative to be true.

The opening of FQM’s Kalumbila based Nickel mine will make Zambia, Africa’s largest nickel producer. The country already had Munali Nickel mine at Mazabuka but the mine is yet to hit peak production levels.

The Zambia Revenue Authority (ZRA) is yet to share any expectations of the tax benefits they anticipate to extract as sceptics fear that the country may fail to leverage full benefits due to the global miners’ reputation of extracting massive concessions.

 

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First Quantum Minerals - FQM’s is set

Companies

Unknown people broke into Kenmark Broadcasting Network (KBN) TV station in Northmead area and walked away with all live transmission equipment.

KBN Station Manager Petty Chanda said the team received a report from the security guard who was securing the premises that burglars had broken into the offices around 03:00 hrs on 11 May 2022 adding that the criminals had access to the premises using the next door neighbour.

Chanda said the criminals walked away with electronic gadgets such as cameras and laptops among others and cut the fiber cable that sends signal to Top Star hence the station is off air on the public signal distributor.

In an interview with the Zambian Business Times-ZBT, Chanda said the criminals might know the station premises too well as the act was well organized.

She mentioned that the incident is in no way related to the news that circulated on social media some time back that the station was owing some workers at that particular time as they have all been paid now.

Police are actively investigating the matter and the night guard is being held to help the Police with investigations.

And Media Owner Association of Zambia (MOAZ) has called on the police to quicken its investigation on the theft of all studio equipment and associated broadcasting equipment belonging to KBN Television station.

Association President Evans Banda has condemned the act saying justice must be delivered.

In a statement made available to ZBT, Banda said the theft of studio transmission equipment which was airing programmes at the time of the theft is unprecedented and a strange act.

The association has since demanded for quick action by the police in order to bring the culprits to book.

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Unknown people broke into Kenmark Broadcasting Network

Mining

Zambia is set to emerge as Africa’s largest nickel producer following First Quantum Minerals (FQM)’s pledge to invest US$100 million in the Enterprise Nickel project.

The existing Nickel mine – Munali Nickel has a total annual production capacity of about 4,000 tonnes (over 300 tonnes per month) and this will add to the 30,000 tonnes that FQMs Kalumbila Nickel mine is expected to produce.

First Quantum Minerals has disclosed that the new Enterprise Nickel project will be operational within 12 months.

According to a statement from FQM, made available to the Zambian Business Times-ZBT, once operational,the mine will employ approximately 700 full time staff.

The new Enterprise Nickel mine located approximately 14 kilometres from FQM sentinel mine in Kalumbila, has been given the go ahead, following FQM’s pledge to invest a final US$100 million in the project.

Once operational,the enterprise will be on the top ten 10 global nickel mine producing 30, 000 tons of nickel in concentrate annually, which will make Zambia Africa’s pre-eminent nickel producer.

“Enterprise high grade nickel sulphide deposits provide precisely the type of nickel that is required to manufacture batteries for electric vehicles-EVs thus positioning Zambia as a producer of strategic metals”, the company said.

The company noted that copper and nickel, are vital to the production of the new technologies and the green energy revolution.

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Zambia is set to emerge as Africa’s

Companies

The Copperbelt Forestry Company (CFC) says it expects a revenue boost this year due to ZESCO’s interest in procuring poles locally.

In March this year, the power utility company ZESCO, shortlisted 10 foreign companies from South Africa and Zimbabwe to supply 9 and 12 metre wooden poles to the company on the pretext that no Zambian company is capable of supplying the poles. CFC confirmed to the ZBT that it had the capacity to supply ZESCO with the required poles.

Company Managing Director James Mulenga said the company is expecting a full deal and if given the deal, CFC will be complementing each other with Zambia Forestry and Forest Industries Corporation (ZAFFICO) in supplying the poles to ZESCO.

Speaking in an interview with the Zambian Business Times-ZBT, Mulenga said ZAFFICO is cutting 40,000 poles and CFC is cutting about 30, 000 poles therefore the two companies should be able to supply the poles to ZESCO.

Mulenga said he is hopeful that the deal will be given to both companies adding that ZAFFICO has already started supplying the poles to ZESCO as it has dry poles.

“The projections for the year 2022 look positive with the interest from ZESCO wanting to buy electric poles locally. We hope that part is going to boost our sales for this year if ZESCO comes on board. The hope is that by 3rd quarter, the demand for the poles will come into strum”, he said.

He noted that the company faced numerous challenges with financing during the Covid-19 pandemic and was not fortunate that enough to access any of the stimulus packages from government noting that the company is just recovering.

 

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The Copperbelt Forestry Company (CFC) says it

Markets

The Association of Microfinance Institutions in Zambia (AMIZ) says the interest rates on borrowing are likely to go down due to factors such as low inflation and a stable exchange rate.

Association Executive Director Webby Mate said factors such as low inflation and a stable exchange rate as well as a strong currency have an impact on the movement of interest rates

Speaking in an interview with the Zambian Business Times-ZBT, Mate commended government’s efforts towards lowering the inflation rate and stabilizing the kwacha adding that government is on the right path.

“I know what they are doing will have an impact on the cost of money ultimately so they are on the right trajectory but they should continue so that things can get better for small business people. Inflation is going down, the exchange rate is stabilizing and also the kwacha is strengthening, those are key indicators that should be able to impact on the movement of the interest rates”, he said.

Mate mentioned that interest rates are quite high but government has made pronouncements that it would like the cost of money to small businesses to come down therefore the association is looking forward to seeing government taking more steps to actualise such plans.

He noted that stabilizing the economy is important because when the economy is stable, the exchange rate will not be changing anyhow which helps one to plan adding that a stable economy also means the rate at which prices of goods change becomes stable.

Mate mentioned that the Ministry of Finance should focus on putting in place strategies that would stabilize the economy and make it more conducive for the growth of businesses, which would help interest rates be more affordable.

 

 

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The Association of Microfinance Institutions in Zambia

Lifestyle

Former Secretary to the Treasury Fredson Yamba says he will be able to give his side of the story concerning his arrest once all court proceedings are concluded.

Speaking in an exclusive interview with the Zambian Business Times-ZBT, Yamba said “the media should follow proceedings through court. Because I have been arrested and trial is going on, I can not give a comment”.

The Anti-Corruption Commission arrested the former secretary to the treasury for corrupt practices involving over US$33 million on 4 May 2022.

According to a statement issued by ACC Chief Corporate Affairs Officer Timothy Moono, Yamba 62, was arrested and charged with one count of willful failure to comply with applicable law and procedure relating to procurement contrary to section 32 (2) (b) of the Anti-Corruption Act No.3 of 2012.

Moono said in 2018, Yamba did not follow procedure when he authorised an advance payment of US$33, 750, 000 to China Energy Engineering Group-Hunan Electric Power Design Institute Co. Ltd for the construction of FTJ Chiluba University in Mansa and Kasama under the Ministry of Higher Education. The said money was paid to the contractor but to date no university has been constructed.

In the same matter, ACC also arrested Joseph Phiri, an architect at the Ministry of Higher Education for attempting to fraudulently facilitate a payment amounting to US$ 29, 186, 169.09 to China Energy Engineering Group-Hunan Electric Power Design Institute Co.Ltd.

Phiri, 57 of Lusaka , was charged with one count of fraudulent facilitation of payment contrary to section 34 (2) (a) as read together with section 40 (2) of the Anti-Corruption Commission  Act No.3 of 2012.

Being an architect at the ministry and Project Manager for the construction of FTJ Chiluba University in Mansa and Kasama in 2018, Phiri attempted to fraudulently facilitate a payment to the Chinese company by signing and issuing an interim payment certificate No.2 valued at US$ 29, 186, 169.09 with an inflated sum of US$7, 578, 772.41 for goods purportedly supplied when in fact not.

 

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Former Secretary to the Treasury Fredson Yamba

Agribusiness

The National Union for Small Scale Farmers in Zambia-NUSFAZ has appealed to government to increase the price at which the Food Reserve Agency (FRA) will be buying maize in the 2022 crop-marketing season.

Union Executive Director Ebony Loloji said the production costs for farmers have increased due to the increase in fertiliser and fuel prices among other inputs adding that some farmers use fuel to operate different types of machinery.

Speaking in an interview with the Zambian Business Times-ZBT, Loloji said government should consider the work that farmers put into the production of maize as well as the increasing production costs as it sets the maize floor price for the coming crop-marketing season.

“The increment in fuel affects transportation costs of inputs to the farm and also output to the market so all those factors have to be put into consideration. When determining the floor price of maize it is important to take all those factors into consideration so that we are able to protect the small scale farmers who are feeding the nation”, he said.

“Due to continued increase in input prices or factors of production of maize, our expectation as a representative of small scale farmers is that there should be an increment from K150 per 50kg offered in the last season”, he said.

Loloji noted that if the floor price is maintained at K150, private market players would take advantage of small scale farmers knowing that they will not go anywhere else but to them therefore it is important to offer a competitive price and avoid exposing small scale farmers to exploitation.

He however mentioned that factors of supply and demand do affect the pricing therefore the maize being held in the food reserve should not be released to the millers anyhow when there is maize available on the market from the farmers whom millers and other market players can buy from.

“Provided that you know that the maize is going to be held in the strategic food reserves and leave what will be harvested to be bought by private buyers, I don’t think the forces of demand will have a lot of impact on the price for this coming marketing season”, he said.

 

 

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The National Union for Small Scale Farmers

Mining

President Hakainde Hichilema has called upon the private sector to work with government in the development of the mining industry and unlock the various challenges the private sector is facing.

The Head of State said government appreciates the important role that the private sector plays in the development of the mining industry therefore government policy will promote a private sector driven, competitive, thriving and sustainable mining industry.

Speaking when he delivered his keynote speech in Cape Town, South Africa at the African Mining Indaba themed ‘Evolution of African Mining: Investing in the Energy Transition, ESG and Economies’, monitored by the Zambian Business Times-ZBT, President Hichilema said government is committed to supporting domestic economic empowerment and job creation without resource nationalism.

He said government’s agenda is to have every Zambian Citizen playing a critical role in the mining supply and value chain along with investment adding that development of roads, airways and railways are part of the mining agenda.

“It is clear that aggressive investment into the exploration will unlock the undiscovered mineral resources and create social economic impact that will not only lift many Zambians out of poverty but will create new wealth and prosperity. This will result in sustainability of the investment in the country and secure the much needed social contracts”, the President said.

President Hichilema said Africa is blessed with vast mineral resources, which are key drivers of the development agenda adding that Zambia is determined to respond to the high demand of copper, as it is critical in green transition.

 

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President Hakainde Hichilema has called upon the