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President Hakainde Hichilema – HH has facilitated the signing of a landmark energy deal that has potential to transform the Zambian energy sector if implemented. The Zambian owned Power Utility Company ZESCO has signed an agreement with the United Arabs Emirates’ Company Masdar to develop Solar Projects worth $2 billion.

Speaking when witnessing the signing of a Memorandum of Understanding (MoU) and a landmark Joint Development Agreement (JDA) between Zambia and the United Arab Emirates Hichilema said the MoU is aimed at facilitating massive investment in renewable energy in Zambia.

He said the MoU and JDA will see ZESCO partner with MASDAR, a key investment funding entity of the United Arab Emirates (UAE), to form a joint venture in developing and deploying large scale solar projects across the country, estimated at US$2 billion.

In a statement seen by the Zambian Business Times – ZBT, the Zambian president Hakainde Hichilema said this is not a loan but a capital injection or investment in which the Zambian people, through ZESCO, will be partners in shareholding.

He said the projects shall be undertaken in a phased manner, which will commence immediately, starting with the phased installation of 500 megawatts.

Hichilema said once completed, the projects will result in an additional 2000 megawatts of electricity in the country, within the next few years.

“The historical significance of this project [if implemented] is that, in the last 58 years of our independence, the country only developed 3,500 megawatts of electricity. This remarkable investment shall bring in the much needed 2,000 megawatts, within a shorter period of time.”

President Hichilema added that with the projected increase in electricity supply, Zambians shall be assured of even more accelerated economic development and increased employment opportunities.

Some energy experts say Zambia should consider setting up a uranium powered nuclear power plant that can generate enormous amount of power that would make the country a net exporter. Zambia has reported findings of local uranium deposits that could be exploited for such an ambitious venture.

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President Hakainde Hichilema - HH has facilitated

Companies

The Itezhi Tezhi Hydropower Project (ITHP) that is capable of supplying 120MW of power generated to ZESCO has confirmed that the company is only generating 80MW due to low water levels.

Speaking in an exclusive interview with the Zambian Business Times – ZBT – ITHP Chief Executive Officer Moses Mbuta said this is due to low amount of water in the reservoir lake and river.

Mbuta said the current produced 80MW of power is being supplied to ZESCO and could not mention how much power is supplied per megawatt.

Mbuta said because of the variable of low water levels in reservoirs, the company is unable to produce at full capacity and be able to challenge the rising demand of power.

“Even if there is demand, if the water is not enough, there is nothing else that we can do as we can only generate according to the water that is there.” We are in the season when we are filling in the reservoir and going forward because of the water which is increasing, will also start increasing the generation  

He said the trend cannot be curbed because of low rainfall that has been seen in the recent passed which he said is a natural cause.

Zambia is still grappling with constrained electricity generation from hydro power due to what a lot of producers are referring to below water levels in the reservoirs.

According to electricity producers, there are low water levels in major rivers on which dams have been constructed to generate electricity a situation which has resulted in less power generation in the country.

Mbuta said the company is however trying by all means to ensure that generation is at full capacity and support the State owned power Utility Company ZESCO in this era of load shedding.

Already Zambia is rationing electricity to domestic and commercial users. Earlier, the Zambia Electricity Supply Corporation Limited ZESCO, imposed a 12 hours (divided in two) power cuts at various times of the day to save water in the dams of the reservoirs.

The hours of load shedding have since been officially reduced from 12 hours a day to 8 hours a day, though some high density residential areas insist that the hours of load shedding are way beyond the half day announced. Some areas say ZESCO has been using the excuse of routine maintenance works to cut power for over half a day.

Meanwhile, experts have said that the lack of reliable power is hitting Zambia’s economy as people struggle to make a living without electricity for half a day even as the power utility continues to export. Jobs mostly in the local small and medium enterprises – SMEs are at risk of being lost with some local businesses facing eminent closure.

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The Itezhi Tezhi Hydropower Project (ITHP) that is

Lifestyle

Chief Justice – CJ Dr. Mumba Malila has disclosed that there is no new laws were promulgated by the new dawn government with respect to bail. The CJ however has urged all adjudicators in various courts across the country to support bail applications at all the times and ensure that the conditions set are not unduly onerous or impossible.

Responding to an enquiry by the Zambian Business Times – ZBT – on implementation of bail pronouncement of the [New Dawn] Government and whether the Judiciary was in a position to confirm that the practice is now embedded in the system, Dr. Malila said, the Judiciary has its own practices with regard to the granting of bail which is anchored in the provision of the law, particularly the constitution and the criminal procedure Code.

Getting bail on time as well as improvements in timelines for issuance of police bond has been abused by successive governments in Zambia leading to new extra-judicial punishments being meted on suspects in the abscence of a competent Court judgment. The new dawn government has been expected to put up new laws to fulfil this campaign promise.

The CJ disclosed that no new laws have been promulgated by the new government with respect to bail as according to his knowledge the appeal is that the Courts should grant bail more liberally than hitherto been the case.

“The position is that the law has not changed and individual Judges and Magistrates still have to make individualised consideration as to the appropriateness of granting bail and the conditions attaching to such bail.” He explained.  

The Chief Justice Dr Malila said all adjudicators are however urged to ensure that bail conditions are reasonable at all times and are not unduly onerous or impossible.

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Chief Justice - CJ Dr. Mumba Malila

Companies

The Lunsemfwa Hydro Power Company Limited (LHPC) has confirmed that it is not supplying power to the state owned power utility company ZESCO due to historical and long outstanding debts. This follows questions being asked on whether there is an artificial deficit that has resulted in domestic load-shedding why power exports continue.

LHPC, which is the first independent power producer – IPP in Zambia with a total installed capacity of 56 MW and has the capacity to contribute to cutting load shedding in Zambia’s and improve the regions power production via renewable power production, perhaps gives a test case as to whether more investments by IPPs could help end load shedding in the medium term.

Speaking in an exclusive interview with the Zambian Business Times – ZBT – LHPC Chief Executive Officer Alpha Mwale said before the production was suspended, most of the power produced was consumed or up-taken by the Copperbelt Energy Corporation – CEC.

LHPC revealed that even before it suspended production because of low water levels in its two reservior dams, it wasn’t not supply ZESCO due to long outstanding debt. A Check by ZBT has also revealed that ZESCO has a huge debt with coal fired Maamba Power plant, which has made the company operate at “half capacity”.

Mwale said ZESCO is one of their customers but of late, they were not supplying to the state owned power utility company and most of the power produced about 20 – 30 MW depending on the hydraulic condition was being consumed or off-taken by CEC.

He said this is due to some historical debts which ZESCO had accumulated and LHP needed ZESCO to clear the debt, a situation he said ZESCO has been slowly clearing in the recent past.

He however could not mention how much is still being owed now by ZESCO on what could be termed as confidentiality requirements with LHPC stating that the state owned power utility Company has been paying every month and there was need to have updated figures.

Mwale added that resuming of full production is expected in the First week of February 2023 and they should be able to commence production with 40MW and then within the same month, they would be able to do full load of 56 MW.

Meanwhile Mwale said chances are very high that this time around, they will be supplying power to ZESCO because of the payments they have been making in the recent past.

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The Lunsemfwa Hydro Power Company Limited (LHPC)

Highlights

The Department of the Immigration has clarified that visa waiver apply to a total forty-three (43) countries contrary to earlier reports that had indicated that only about 17 countries had been awarded. This move has made zambia one of the most liberal countries to visit.

However, the move has also attracted concerns that Zambia has awarded visa waiver to countries not willing to reciprocate, a scenario that questions the countries ability to negotiate and value its sovereignty. Others say the fact that no African countries have been included on the list, speaks volumes about the loop sided thinking of policy makers.

Responding to a Zambian Business Times – ZBT press query, Immigration department Public Relations officer Namanti Nshinka confirmed that they are actually 43 countries in which visa waivers apply.

Nshinka told ZBT that visa policies are the primary instrument for regulating and controlling immigration. “In our case, we have three categories of immigrants’ vis-à-vis visa requirements. Firstly, we have countries that do not require visas to enter Zambia (visa-free countries). Secondly, we have those that can get visas on arrival or at the Zambian Missions Abroad, and thirdly, those that require pre-approved visas (referred visas) before traveling to Zambia. The second and third categories may also apply for their visas online.”

He explained that the underlying idea of requiring people to have a visa before entering the country is for the Department and other law-enforcement agencies to carry out pre-arrival security screening to determine the traveler’s suitability to enter the country. “In other words, the visa requirement before travel prevents people from starting their journeys without prior permission.”

The 43 countries that have been recently included are;

1Australia13Finland25Luxemburg37Slovenia
2Austria14France26Malta38South Korea
3Bahrain15Germany27Netherlands39Spain
4Belgium16Greece28New Zealand40Sweden
5Bulgaria17Hungary29Norway41The United States of America
6Canada18Iraq30Oman42United Arab Emirates 
7China19Ireland31Poland43United Kingdom
8Croatia20Italy32Portugal  
9Cyprus21Japan33Qatar  
10Czech Republic22Kuwait34Romania  
11Denmark23Latvia35Saudi Arabia  
12Estonia24Lithuania36Slovakia  

Nshinka said it must be noted that only seven (7) countries, Bahrain, China, Iraq, Kuwait, Oman, Qatar, and Saudi Arabia, of the Forty-three (43) countries in the visa-waiver list previously required prior permission.

He said Ireland was already in the visa-free category, while the other thirty-five (35) could get visas on arrival.

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The Department of the Immigration has clarified

Uncategorized

In order for the rule of law to take root, Zambia needs to put in place adequate adequate court infrastructure not only in major town and cities, but across all the ten provinces and their respective districts. But the legal system in Zambia is still limited in its capability to address the needs of a Just and fair society’s due to the inadequate leves of essential judicial infrastructure and resource limitations.

The Judiciary has admitted that there has not been adequate Court infrastructure in all provinces and Districts across the country. Chief Justice Dr. Mumba Malila notes that the Judiciary faces serious infrastructure deficit country wide.

Responding to a Zambian Business Times – ZBT – enquiry, Dr. Malila explained that the problem runs through the whole hierarchy of the courts starting from those at the apex, i.e. the Supreme Court and constitutional court, down to the local courts.

He told the Zambian Business Times that, “indeed with our emphasis on access to justice, there is need to have court infrastructure all over the country to enable litigant’s access court services easily.”

The Chief Justice mentioned that the central Government is aware of the Judiciary’s infrastructure needs and has been releasing resources towards rehabilitation of dilapidated courtroom infrastructure especially at local court and Subordinate court levels.

He added that there is however much more that requires to be done for the superior courts in all provinces and districts country wide.

One critical role of courts in the society is ensuring justice is served in a fair manner as judges guided by the constitution will listen to arguments from both sides when coming up with their final judgment when compared to customary laws used in some major parts of the country.

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In order for the rule of law

Uncategorized

Airtel Networks Zambia Plc has disclosed that it rolled out 138 sites across the 10 provinces in 2022 to strengthen network accessibility.

Airtel Networks Zambia Plc Managing Director, Mr. Manu Sood, said the Company continues to invest more in the expansion of the network and distribution, thus providing opportunities for many people to run associated businesses, therefore helping the economy thrive.

Some of the districts where sites have been rolled out include, Chiengi, Chibombo, Chipangali, Namwala, Lufwanyama, Sinazongwe, Nakonde, Solwezi, Kazungula and Kaoma to mention a few.

“As the New Year starts, we reaffirm our commitment to providing a superior network to the people that will enable further digitization and financial inclusion. This is in line with the 8th National Development Plan, adding to the much sought after technology to support digital transformation and innovation as key enablers to economic growth.” Sood said.

Sood said the company was proud of providing the highest number of 4G sites in Zambia and these additional 138 sites will further supplement the Airtel 4G konse.

“This along with our new spectrum in 800 MHz has provided customers with the best in class indoor experience as well as further reach in rural areas.” He added.

“We now have more than 1,600 4G sites across the country. Additionally, the superior indoor experience and higher rural reach, has been made possible after Airtel won an additional 10 MHz through competitive bidding during early 2022, making it a total of 20 Mhz in 800 MHz.”

Sood stated that Airtel took the lead in the rollout of 4G network which has since helped to drive digitalization and financial inclusion adding that Airtel currently has the highest number of 4G sites in Zambia.

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Airtel Networks Zambia Plc has disclosed that

Tech

Even as the common Zambians who fall under domestic consumers categories and some commercial entities are being subjected to the 12 hours (half a day) load shedding, the largely foreign Owned copper mining sector who is the largest power consumers in the country are exempted from load shedding.

Domestic and some commercial clients have complained of being treated as second class by their own public utility which seems to respect supply contracts for export and foreign owned Copper mines but abrogates local supply agreements with impunity for domestic customers.

Making the revelations to the Zambian Business Times-ZBT- Ministry of Mines and Minerals Development Permanent secretary Mooya Lumamba confirmed that the current load-shedding do not apply to the mining sector.

Lumamba told ZBT that mines have not been disturbed from the effects of the loadshedding and they are still operating on a normal circumstances and are meeting the requirements.

He added that, “Operations are different from one mine to another adding and the amount of power they use is different but what I can assure you is that mines are getting what they need because there is no loadsheding or any restrictions.”

Zambia’s electricity utility company ZESCO has announced that the Corporation has resolved to revert back to the daily load shedding schedule on a rotational basis Country wide a situation that will hinder business for home and other commercial users.

ZESCO Managing Director Victor Mapani in December 2022 said loadsheding is as a result of reduced power generation being experienced at the Kariba North Bank power station. Mapani explained that load management will be done through rotational schedules countrywide.

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Even as the common Zambians who fall

Markets

The admission by the current ZESCO board and by extension the top management team that they failed to plan properly and even mis-informed the head of state and the country at large that load shedding has ended should not have ended at mere apologies, but the responsible board members and top management staff should have resigned.

And in the case like this were the responsible board members and top management staff are not honorable enough to offer their resignation, they ought to be fired by their appointing authority. In this case, President Hakainde Hichilema – HH who promised to run a merit based governments and is the appointing authority should step in and relieve the responsible ZESCO board members and management staff.

We do appreciate that Job opportunities are hard to come by in Zambia, but if you look at how many jobs that these few senior ZESCO staff or appointees are going to cost the nation, one can’t only conclude that if they are not fired, it’s either because of political considerations (appointees who are party loyalist and cadres or issues of nepotism).

Zambia is today back again in the midst of an electricity or power supply crisis that will derail what is left of our ailing economy, this load shedding is hurting a lot of local businesses and has already destabilize our struggling members citizen who are the majority. Wait until month-end to see how many small and medium businesses will struggle to meet their payroll obligations, how about the petty traders who live from hand to mouth?

And the Zambia Consumer Association – ZACA has predicted a resultant high cost of basic essential commodities in the next few months from now because of escalated cost of production due to load shedding.

Speaking in an exclusive interview with the Zambian Business Times –ZBT, ZACA Executive Secretary Juba Sakala disclosed that the impact of load shedding is immense as businesses are now operating at half capacity. He said this entails that prices of products on the market will be higher as there is reduced supply due to the fact that some industries are now operating at half capacity because of the high cost of doing business (using more expensive power from high priced diesel generators) caused by high hours of load shedding.

Sakala said time and again Government have made decisions that have costed the local people and now we are in this situation because of the decisions that government made without looking at the future or considering local interests first. He added that government officials should not do things to please their masters. “Do not make policies to please your “master”, the one who is giving you money which could be probably the IMF or World Bank but consider the local people first when making decisions.”

“That’s why we are calling for them to completely ban exports so that they satisfy the local market and stabilize the production of essential commodities in the country.” He stressed.

“Look, we are in another wrong decision where people exporting power, were people misinformed the president and those people are still in offices and now we wonder what type of decisions are we going to be making day in day out to please the masters at the expense of taking decisions in the best interests local Zambians.”

Sakala added, “We are in this situation where production has gone down and people have no power for 12 hrs (even more hours of load shedding in some areas) because of some decisions that people made to please their masters and am quite disturbed with such decisions.”

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The admission by the current ZESCO board

Mining

The Centre for Trade Policy and Development (CTPD) has expressed concern on the continued reduction of the ZCCM-IH influence in critical large-scale mines, stating that “With this new undertaking, we are afraid that we will see a mining sector where all the critical large-scale mines are run by multinational enterprises with maximum influence. This is contrary to the 2023 national budget where government intends to increase its golden shares in the sector.” He said.  

This follows ZCCM-IH entering into a transaction with FQM where it will convert its dividend rights and 20 percent equity value in Kansanshi Mining Plc (KMP) into a life of mine royalty.

CTPD Research Associate Webby Banda said though the move will ensure the stability of revenue inflow into ZCCM-IH coffers because the royalty will be based on the gross value of production as opposed to dividends which are centred on profit, it is still mind-boggling to a common Zambian as the terms of the transaction speak to the conversion of dividend rights and equity stake into the “life of mine royalty”.

Banda noted that ZCCM-IH will also de-recognise its equity stake in KMP as an investment in associate and will recognise the acquired royalty as a financial asset. “An investment in associate simply means an investment in an entity in which the investor has significant influence but does not have full control like a parent and subsidiary relation.” He said.

Banda explained that this occurs when a party owns 20 – 50% of shares adding that by extension of this definition, it means ZCCM-IH will relinquish its significant influence and partial control in the asset at the price of a 3.1 percent life of mine royalty.

In a statement made available to the Zambian Business Times – ZBT – Banda who is also a mining Expert said it is not clear why ZCCM-IH has gone this route as an investment in associate equity stake by ZCCM-IH ensures a certain level of government involvement in the running of mining enterprises.

“With this new undertaking, we are afraid that we will see a mining sector where all the critical large-scale mines are run by multinational enterprises with maximum influence. This is contrary to the 2023 national budget where government intends to increase its golden shares in the sector.” He said.  

He said the least expectation was for ZCCM-IH to convert its dividend rights and not necessarily its equity stake in the Mine into a royalty adding that the call over these years has been to transform the ZCCM-IH docile equity participation in these ventures into an active one and not necessarily to relinquish or covert them for a certain price. 

Banda explained that the economic value of ZCCM-IH’s 20 percent equity stake in KMP will be realized through the VAT refunds which means post-transaction, the KMP burden of paying ZCCM-IH will be converted to a VAT refund when received by ZRA.

“It is still not clear why ZCCM-IH agreed to this mode of financing the 20% equity stake. What is expected in this regard is for the 20 percent stake to be raised through other financing methods. This is because this will further generate intricacies in the disbursement process. A critical question that needs to be answered in this transaction is whether late payment of VAT refunds to KMP by ZRA will delay the raising of the economic value of the 20% equity stake.” He remarked.

Banda said mineral resources are the strategic assets that the country have and therefore, they must be exploited for the benefit of the citizenry to steer socio-economic development. “This transaction offers some leverage to extract maximal benefits through the conversion of the dividend rights and equity stake into a life of mine royalty on extracted mineral products at KMP.”

“CTPD is however concerned with the continued reduction of ZCCM-IH control or influence in critical large-scale mines. A certain level of involvement improves the governance process of these assets. Therefore, some active equity interest must be retained.  If this transaction is finally completed, it should serve as a litmus test for further undertakings in other assets.” He said.

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The Centre for Trade Policy and Development

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