Ukheshe & Digital PayGo Partner to Drive Zambian Business Growth
IT News Africa, September 27, 2022
Ukheshe’s SME in-a-box solution is making tangible changes to the lives of millions in Zambia through a partnership with Digital PayGo, improving financial inclusion and enhancing business dealings for entrepreneurs.
Digital PayGo, a local Zambian fintech driving a mobile-first approach, enhancing the digital payment space for SMEs, is the first partner to utilise Ukheshe’s SME in-a-box solution to its fullest extent and provides a range of virtual financial services to its customers.
“We’re so proud to be the technology partner enabling Digital PayGo in their partnership with Zambian bank Zanaco and Mastercard to implement this solution,” says Mark Dankworth, President of Business Development in Africa at Ukheshe.
“In line with Mastercard’s vision of enabling 50 million SMEs by 2025, the relationship between Ukheshe and Digital PayGo was a natural fit, given our shared values of driving financial inclusion with relevant solutions that address the needs of individuals and businesses. To be able to make a difference such as this in the Zambian Merchant payments ecosystem is truly exciting.”
The SME in-a-box suite of services includes acceptance of virtual and physical card payments; tap-on-phone (SoftPOS) and QR payments; digital onboarding; instant access to funds for money transfers and payments; virtual card issuing – all powered by Ukheshe’s award-winning Eclipse API.
But the benefits go far beyond just providing this functionality to consumers and businesses – useful as it may be, says Charity Mwanza, CEO – Digital PayGo.
“SME in a box – Lipila Na PayGo will cater for the pressing need of SMEs which is to make and receive payments seamlessly, while keeping a track record of all transactions thus making reporting and access to finance a possibility. We believe the solution will not only improve access to finance and financial inclusion but will increase trust in digital financial solutions as well.”
The convenience and safety of mobile and digital financial solutions, especially through Ukheshe, eases the way SMEs conduct business, therefore, contributing to the eventual push for a cashless society in Zambia.
For Ukheshe, this is another big step in the direction of its ultimate goal – being a global embedded finance enabler with the focus of providing innovative digital payment solutions to improve and address financial inclusion within emerging markets.
“Ukheshe is focused on democratising digital financial services through the accessibility of disparate technologies. Our technology has already improved financial access in locations across the continent, and we believe this partnership will do the same in Zambia and other emerging markets – changing millions of lives for the better,” says Dankworth.
Southern Africa Swiss Business Hub Eyes Zambia
The Independent Observer, July 27, 2022
The Southern Africa Swiss Business Hub, the representative of the Switzerland Global Enterprise (S-GE) and based at the Embassy of Switzerland in Pretoria, says it is considering investing in Zambia due to the country’s economic turnaround and a conducive business environment.
Head of Swiss Business Hub-Southern Africa Stephanie Labite, says the hub wants to spread its business tentacles across Southern and East Africa, supporting Small and Medium-Sized Enterprises (SMEs) and that Zambia is up the pecking order on its plans.
Ms. Labite said this in Pretoria during a business meeting with Zambia Acting High Commissioner to South Africa Inonge Mwenya.
She said the Southern Africa Swiss Business Hub has a specific mandate that focuses mainly on business and trade developments with key interest in infrastructure and technology, a domain of opportunities it is looking for in Zambia.
She says this will promote Zambia to Swiss business investments in South Africa as the hub has access to in-depth market knowledge through a local network of experts in all sectors of the economy and that this is the reason Zambia is its next preferred destination for investment.
She says the hub wants to collaborate with different stakeholders in Zambia such as the Zambia Development Agency (ZDA) and the Chambers of Commerce among others, as its motive is to engage Government while working with the private sector in exploring business opportunities and forging partnerships.
Meanwhile, Zambia Acting High Commissioner to South Africa, Inonge Mwenya says she is happy that the Hub is looking forward to partnering with Zambia and has pledged the Mission’s facilitation in actualising the interest expressed by the Hub in this regard.
Mining and Technical Exhibitions Expo Begins in Zambia
Foreign Brief, September 26, 2022
Zambia’s Mining and Technical Exhibition (MTE) begins today.
The MTE event takes place throughout Sub-Saharan Africa with the goal of introducing innovative technologies and developments in the mining sector to Zambia’s top mining companies like Konkola Copper Mines. Zambia is home to some of the world’s largest copper deposits and has smaller but exploitable cobalt, manganese and nickel deposits. Copper accounts for 60% of Zambia’s total exports. For years, investment has been hindered by inconsistent policies and unfavorable political conditions.
Image via First Quantum Minerals
First Quantum Minerals, a Canadian mining company, recently announced a $1.2-billion-dollar investment in Zambia’s Kansanshi copper mine, the largest such mine in Africa, indicating a trend towards more investment in Africa’s “Copper Belt” between Zambia and The Democratic Republic of Congo. With copper demand expected to grow as the renewable energy revolution continues and traditional producers, such as Chile and Peru facing greater political and regulatory uncertainty Zambia may come to the forefront as a viable source of copper.
Today’s exhibition where suppliers will showcase key products and innovative technologies that will be important for ramping up Zambia’s productive capacity by reducing costs to support major increases in output to support growing demand for copper cables and wires needed for electric vehicles, solar panels and other products for a global green economy transition.
Glencore Proposes Loans to Ensure Production at Mopani Copper Mine
Reuters, September 23, 2022
Glencore Plc and Zambia’s state-owned mining company ZCCM-IH could jointly lend Mopani Copper Mines $200 million to help cover running costs under a proposal made by the global miner last week, a letter seen by Reuters showed.
Glencore, which owned Mopani until March 2021, is prepared to lend up to $100 million as a short-term cash injection to Zambia’s Mopani copper mine, the global miner said in a Sept. 12 “non-binding letter of intent”.
Mopani Copper Mines is a large mine and smelter complex that Glencore sold to state mining investment firm ZCCM-IH in 2021 after drawing the ire of the Zambian government by putting it on care and maintenance in 2020 at a time of lower copper prices.
Switzerland-based Glencore however kept the exclusive right to sell Mopani’s production when it sold its majority stake in the asset to ZCCM-IH in a $1.5 billion deal funded by debt.
The more than 90-year-old mine has the potential to produce 225,000 tonnes of copper annually, nearly three times its expected 2022 production, Mopani Copper Mines officials have said, but it needs investment of at least $300 million to fund a complicated underground expansion.
With copper production falling and Mopani struggling to pay suppliers on time, ZCCM-IH in June hired investment bank Rothschild & Co for a strategic review that aims to find a new investor for the mine.
While Mopani waits for new investment, its production has fallen, making running costs increasingly hard to cover.
In the letter to Rothschild, Glencore said Mopani needs $200 million in “short-term liquidity”, and proposed to split that equally with ZCCM-IH. The cash would help Mopani cover general costs including buying reagents and paying workers and contractors, according to a source with knowledge of the letter.
Neither Glencore nor Rothschild commented on the contents of the letter, possible negotiations between the parties or progress of the strategic review.
Mopani Copper Mine - Image Courtesy of ZCCM Investment Holdings
ZCCM-IH declined to comment on the letter, saying only: “Rothschild… are looking at a range of expressions of interests and letters of intent from various stakeholders aimed at ensuring the sustainability, growth and profitability of Mopani.”
Zambia’s mines ministry did not respond to questions about the letter.
In the letter, Glencore said it has already lent Mopani $47 million through procuring letters of credit to cover copper concentrate purchases and electricity bills. Under the proposal, Glencore would provide up to $53 million more through letters of credit.
The proposal did not specify the interest rate for the loan.
Reuters reported in May that Glencore was helping to pay some of the company’s running costs, including electricity bills.
It is in Glencore’s interest for Mopani to keep producing because ZCCM is paying off its $1.5 billion debt to Glencore through Mopani’s copper.
Glencore would require $120 million worth of copper concentrates, anodes, and cathodes to be at the Mopani smelter or being transported to the border as a guarantee for its $100 million loan, according to the letter.
With future demand for copper expected to be strong due to the growth of electric vehicles, charging stations and other renewable energy infrastructure as the world seeks to decarbonise, Zambia sees expanding the mine as an opportunity to generate much-needed income.
SpaceX Starlink Team Meets With Zambia Officials for Satellite Internet Services
Tesla Rati, September 19, 2023
SpaceX is talking with Zambia officials, offering Starlink’s internet services to the country.
Recently, Jito Kayumba—the Special Assistant to the Republic of Zambia—tweeted about SpaceX and the country’s officials meeting about Starlink services.
“Our President’s engagement with the team from SpaceX and their Starlink initiative will escalate Zambia’s position in the digital economy and enable universal access to internet and other technologies. Grateful for this initiative from visionary entrepreneur Elon Musk,” tweeted Kayumba.
Elon Musk responded to Kayumba’s tweet, expressing his excitement for SpaceX’s Starlink service’s availability to the people of Zambia.
INTERNET IN ZAMBIA
According to DataReportal, Zambia had 5.47 million internet users as of January 2022. The number of internet users in the country increased by 5.4% between 2021 and 2022. At the beginning of the year, 71.5% of the population remained offline.
Zambia’s media mobile internet connection speed through cellular networks was 12.08 Mbps, up by 3.94 Mbps compared to late 2021. The country’s median fixed internet connection speed was 4.65 Mbps, down by 2.14 Mbps versus late last year. With such internet speeds, Starlink’s high-speed connection will definitely be appreciated in Zambia.
PROSPERITY THROUGH THE INTERNET
Due to the COVID-19 pandemic, many schools shifted from face-to-face classes to online learning platforms for distance learning. In 2020, the Save the Children of Zambia organization reported that only 0.8% of children from poor households had access to the internet to attend online classes.
Online classes were introduced across schools in Zambia in 2012-2013. When the pandemic hit, the country still lacked the necessary infrastructure to support distance learning.
Internet Society believes expanding internet access throughout Zambia would make education more affordable along with other benefits. It argues that access to the internet would give the people of Zambia access to health and shopping services, increase their productivity, and bring about technological development.
Starlink is now available on all seven continents, even Antarctica—aka “The Ice.” SpaceX recently installed a Starlink terminal at the McMurdo Station on the south tip of Ross Island in Antarctica.
Zambia's Energy Sector Drives the Country's Industrial Base... as Petroleum Pushes Social Interaction
Times of Zambia, September 14, 2022
ENERGY is a key sector to Zambia's socio-economic development and is inextricably linked to, and exerts a strong influence on other sectors of the economy.
Agricultural and industrial production, mining, tourism, construction, social and administrative services all rely on energy to drive their growth.
Petroleum products being mainly petrol, diesel and kerosene are used to fuel industrial activities both at micro and macro level, a clear demonstration of its importance to economic development.
In addition, petroleum products are useful at domestic level to fuel tanks of automobiles use by majority of the middle class for convenience, especially in a setting where public transport sectors are not well developed.
Hence, a private sector led energy industry is critical in enhancing the much needed capital to boost the industry's contribution to the economy.
With real Gross Domestic Product (GDP) estimated at 3.1 per cent this year, the energy demand is expected to grow at significant pace as well.
Zambia is said to be on a rapid economic recovery, driven by mining, tourism and manufacturing industries.
This is underpinned by the various reforms undertaken to revive Zambia's economy, as well as stimulate investment in key productive sectors.
The structural reforms, particularly those in the energy (Petroleum) sector are all aimed at accelerating growth, attracting investments and creation of employment for the Zambia people.
Thus, Petroleum plays a pivotal role in the economic development of every developing country like Zambia.
Access to gas and petroleum play an additional role of stimulating development in less developed rural area.
It is said that once a filling station is opened in rural area, not only does it serve to provide the primary function of providing fuel, but it results in the escalating of other industries such as lodges, entertainment spots, shops or industries and employment opportunities for the local population to mention but a few.
Furthermore, local tourism may be enhanced as well as promotion of social interactions and without fuel many of the social amenities cannot be properly exploited.
Politically, petroleum and gas related issues have been known to usher in new governments and result in the exit of others.
For example, the former Patriotic Front government kept domestic prices artificially low-through price control, export or quantity restrictions, or political pressures put on oil to act as subsidies.
With the coming in of the United Party for National Development (UPND) administration in August 2021, they adopted the "Cost Reflective Price Regulation on Petroleum" doing away with the subsidies.
The cost Reflective Price Regulation implemented by the Energy Regulation Board (ERB) is said to reflect the actual pricing of the commodity on the international market.
However, debates on the current pricing structure rages on from industry players, suggesting that it is difficult for businesses or individually to plan due to the monthly fluctuation of peterolum products.
Considering that Zambia is an energy importer that relies on raw material imports from the Middle East to be refined locally at the country's state-owned refinery, Indeni Oil Refinery, whose business model will soon change to a blending oil storage facility.
As a result, energy industry requires huge investments to encourage private sectorpar ticipation in the industry such as setting up of storage facilities.
For instance, Harvest Group of Companies and Othniel Brooks International Limited last year sealed a deal worth US$310 million from African Import-Export Bank (Afreximbank) to help build the country's three strategic fuel reserves.
This will help reduce the cost of fuel in Zambia and create product security once the three strategic reserves are completed.
The project will be implemented in the following provinces, North-western in Solwezi, Southern in Choma and Central in Kabwe.
Its Group chief executive officer Pauline Adaoha Ugo-Ngadi was quoted last year saying that the project will build infrastructure development in Zambia for the downstream sector of the oil and gas.
The Group intends to tap into opportunities that lie in Zambia's energy sector by working with progressive Zambians to grow local capacity in response to emerging global opportunities.
Harvest Group of Companies Limited is expanding its capacity to become a respected player in Zambia's oil and gas industry through promoting local participation.
This is a clear demonstration that with the correct policies and business friendly environment, many other ventures like the ones being undertaken by Harvest Group of Companies and Othniel Brooks International Limited will help accelerate Zambia's economic development.
Energy Minister, Peter Kapala, commenting on the developments in the sector says Government adopted a new business model for Indeni Oil Refinery to make it more efficient and effective.
Mr Kapala says works on the new Tanzania-Zambia Refined Oils Pipeline project has already begun, with the building of the 700-kilometer (435-mile) segment on the Tanzania side.
Zambia and Tanzania already share the Tanzania- Zambia Mafuta (TAZAMA) Pipeline, a 1,710-kilometer (1,063-mile) pipeline that has been transporting raw crude oil material for refining from the port of Dar-es-Salaam in Tanzania to the Indeni Petroleum Refinery in
Ndola from the 1960s until last year.
"The old pipeline has suffered wear and tear and some of its equipment is obsolete. However, the TAZAMA pipeline will be rehabilitated, cleaned up and reconfigured to start pumping finished products instead of commingled crude," Mr Kapala states.
Despite these efforts, "our two sister nations recognise the need to supplement the old pipeline, saying that the modalities to operationalise the framework of these pipeline have been concluded".
The new pipeline will run alongside the existing TAZAMA pipeline and will be more modernised and made mostly subterranean for security reasons.
The two pipelines - in addition to those from Angola and indeed Namibia - will bring in low-sulphur diesel from the Tanzanian ports into Zambia for our industries' mines and domestic use.
This will consequently reduce transportation costs and hence sustainably reduce the pump price of diesel, which is currently at a record high.
Within months, the pipeline will start pumping diesel fuel into Zambia. On the Zambian side, phase one of the new 12-inch diameter pipeline will end in Mpika District in Northern Province.
"We are in the final stages of finalising the financing mechanism for and we shall soon go out to tender. Phase one will cost between US$250 million and US$300 million to complete.
Phase two will see the pipeline extended from Mpika into Ndola on the Copperbelt Province and lastly phase three will be connected to a new pipeline in Solwezi in the mining region of North-Western Province," Mr Kapala says.
The total project cost for the two countries will be around US$1.5 billion.
Mr Kapala indicates that the country needs to act and reduce the local prices irrespective of what happens with the war in Ukraine, stating that the construction of the pipeline from Namibia, Tanzania and Angola are they way forward.
Zambia imports most of its petroleum requirements from the Middle East through the port of Dar-es-Salaam in Tanzania.
These two pipelines from Dar-es-Salaam will ensure these imports get into Zambia seamlessly. The pipeline from Angola will allow Zambia to finally access Angolan oil whose transportation will be cheaper than petroleum from the Gulf Region.
This applies to the Namibian oil too, once that also is available.
Mr Kapala also says the Government has renewed talks with the Government of Saud Arabia for cheaper importation of oil which will help oil marketing companies (OMCs) procure large volumes of the commodity.
On growing stakeholders' demands to revert to the quarterly fuel review to stabilise businesses ,the Minister says:"We have no plans to revert to previous ways of adjusting fuel prices after months, as that makes it hard to manage the debts owed to oil marketing companies and does not make the pump price to be cost-reflective."
Zambia's daily fuel consumption averages at two million litres (530,000 gallons) of diesel, one million litres of petroleum, and 800,000 litres of kerosene.
The desire by the Government is to facilitate ethanol blending plants in all the country's 10 provinces, which will be a game changer in promoting renewable energy in the country.
Mr Kapala says Government will start constructing ethanol plants in provincial centres for blending fuel, as a measure and strategy to reduce the cost of petroleum in the country.
"Blending of fuel will reduce the pump-price of fuel, which will reduce the cost of doing business and also facilitate the creation of more jobs for the youths.
"The plan is that the blended fuel will use ethanol from cassava," Mr Kapala states. In response to the Minister plans, Economic Association of Zambia (EAZ) is of the view that Government should come up with more incentives to propel biofuel blending activities in thecountry as it plans to establish ethanol blending facilities in the 10 provinces.
EAZ Copperbelt chapter chairperson Mathews Muyembe says the country lagged behind in terms of fuel blending despite having one of the robust biofuel blueprints in the region.
"We need to start offering incentives to investors wanting to start fuel blending to encourage more investments in the energy sector," Mr Muyembe says.
In terms of the investment opportunities, the expanding mining sector and economic activities will continue creating demand for the petroleum products in the country.
Therefore, it is evidently clear that Zambia's energy sector is set to drive industrial base that will stimulate growth and job opportunities for the Zambian people.
Image: Zbynek Burival via Unsplash
Zambia to Generate $2bn USD from Agriculture Sector by 2026
Farmers Review Africa, September 12, 2022
Zambia projects to more than double earnings to US$2 billion from exports of agriculture sector by 2026 following the unveiling of a five-year-blueprint to reinvigorate the economy through diversification from traditional copper mining to various growth sectors.
Under the 8th National Development Plan-2022-26-the Southern African state-seeks to bolster growth and add value to various traditional products and increase export earnings from the current US$756.2 million realised at the close of 2021.
According to the over K1 million blueprint unveiled by President Hakainde Hichilema dubbed: ” “Social Economic Transformation to Improve Livelihoods”, Zambia realises ten need for a diversified economy to overturn economic losses incurred through climate change, debt overhang and COVID 19 among other factors and will industrialise to fulfil its growth prospects.
Increasing agriculture production and productivity, promoting mining of traditional and nontraditional minerals, promoting value addition and manufacturing, promoting rural industrialisation as well as tourism. The Government will implement a number of strategies that are among key strategies for raising the country’s export profile.
Other areas to upscale to maintain growth in the period under review include enhancing management and productive use of water resources, promotion of irrigation, raising generation, transmission and distribution of electricity.
It seeks to extend diversification to other renewable as well as clean alternative energy sources, enhancing the management of petroleum products, improving transport and logistics, upscaling the provision of industry relevant skills, investing in applied research and development, enhancing digital capacity and.
In collaboration with the private sector efforts are underway to create an enabling environment for private sector growth in the agriculture sector by providing a stable trade policy with emphasis on easing restrictions on exports of agricultural commodities and facilitating access to finance.
” A robust comprehensive agriculture support programme will be implemented beginning from the 2022/2023 farming season.
“The programme will encompass the provision of inputs through the electronic agro-input system to include extension service support, support for value addition, storage and logistics. Further, the programme will provide for better targeting and equity across beneficiaries. ” read the blueprint.
Tree crop production and irrigation development will also be promoted. To support increased production in the sector, research and development will be promoted, particularly in the development of improved varieties and breeds of crops including tree crops, livestock and fish.
To increase hectarage under production and enhance productivity, agricultural mechanisation will be promoted. The Government will also promote farm block development with special focus on diversification of crops and expansion of the livestock and fisheries sub sectors.
The farm block concept entails the creation of specialised agricultural production and processing zones. Resettlement schemes will also be developed as centres for agricultural production.
Interventions in fisheries will aim at promoting investments for increased fingerling production and establishing and operationalising fish breeding and freezing centres, as measures to bridge the domestic fish deficit and expand into the regional market.
Livestock production will be enhanced through establishing community-managed livestock service centres, provincial livestock insemination centres and veterinary laboratories.
The Government will also devolve veterinary services to improve efficiency in the livestock sub-sector. These interventions are expected to result in an agricultural growth rate of at least 10 percent per annum over the Plan period.
Over the same period, agricultural exports are also expected to increase to above US$2 billion by 2026 from US$756.2 million in 2021.
On 2 September, President Hakainde Hichilema launched the blueprint with a call for hard work to actualize its objectives. The plan presents the country’s ambitious but bold steps for the country’s social-economic development.
The blueprint marks the country’s medium-term blueprint to unlock the country’s potential in various sectors for sustainable, holistic and inclusive development.
“May we as a people of Zambia cherish the art of hard work. It is a necessary ingredient to achieve success,” he said.
The Government envisions that the macroeconomic objectives set in the 105-page plan are projected to place the economy on a higher growth trajectory.
The vision is premised on restricting fiscal deficit, enhancing domestic revenue mobilization, and addressing and curtailing the accumulation of domestic arrears.
The plan was anchored on key measures targeted at addressing the debt problem, providing free education, scaling up social safety nets and taking service delivery and resources to the people.
Earlier, finance minister Situmbeko Musokotwane described the plan as a strategic direction setting development priorities and implementation of strategies that will play a pivotal role as building blocks toward the attainment of the national vision.
‘Calculator Boy’ Hichilema Revives Zambia’s Fortunes After Chinese Debt Disaster
The Times, September 8, 2023
Not that long ago Chinese credit was easy to get in Zambia. A government department could contact a Beijing lender directly without needing to get it signed off by finance ministers.
Millions of dollars were squandered or used to line pockets. Ministers campaigned in helicopters and the president had a Gulfstream jet. All the while the debts were racking up. It could not last.
“We have lost an obscene amount of money on corruption — money that could have been used to feed, house, clothe and educate our children,” said Hakainde Hichilema, a man once mocked as “calculator boy” for his head for dry numbers.
A year after securing the presidency — at his sixth attempt — in a landslide, Hichilema is unpicking the ruinous rule of his predecessor, Edgar Lungu, who threatened to turn Zambia into the new Zimbabwe.
Under Lungu’s administration, international debt quadrupled to more than 120 per cent of Zambia’s GDP. He failed to negotiate a lifeline from the International Monetary Fund (IMF) after it became the first African state to default since the 2005 agreement to wipe clean the debts of 30 of the continent’s poorest states.
The $1.3 billion IMF bailout secured by Hichilema’s government last week was seen as a huge vote of confidence in his commitment to restraint and reform. A successful exit from default could make Zambia a model for other states in Africa, where China is the biggest lender and the threat of debt distress is high. China has overtaken the World Bank as the biggest foreign creditor to developing countries.
The crisis has revived accusations, led by Washington, that Beijing is using “debt trap diplomacy” to hobble borrowers with unsustainable debts and then grab assets.
Zambia’s debt of $6 billion to 18 different lenders was twice previous estimates. But speaking to The Times, Hichilema, 60, denied that Beijing had an appetite for opacity. He described China as his country’s “all-weather friends”.
New laws on transparency and a cap on future borrowing will keep things honest, he said. “The only change we can probably say is that we have just raised the bar in terms of engagement.”
In the year since Hichilema took power, its currency, the kwacha, has become one of the world’s best performers against the dollar, having long been the worst. Inflation has bucked the regional trend, dropping to single digits, while neighbouring states have seen fuel and food prices surge.
One of the country’s richest men in his own right, Hichilema studied economics locally and for an MBA in Britain before building a business empire. Describing himself as a “volunteer president”, he does not need the salary.
• China debt ‘could bury poorest’
Though content that colleagues should draw their salaries, he would prefer more austerity as the country’s population of 13 million continues to suffer. A video of Hichilema rebuking local government officials for their taste in fancy cars lit up social media.
“I have to remind them they are there to serve and not be served,” he said. “There is no need to have top-of-the-range vehicles when your own constituents are going to bed hungry.”
After enduring beatings and dozens of arrests during his five failed runs for office, Hichilema insists that he has no appetite for vindictiveness. A pledge to recover what was looted has led to assets worth millions of dollars, including helicopters and property, being seized from Lungu, his family and former ministers. The proceeds have been used to fund more than 2,000 scholarships at the University of Zambia.
Though momentous, the IMF bailout will not bring quick relief to Zambians, 58 per cent of whom earn less than $1.90 per day; across sub-Saharan Africa it is 41 per cent.
“We cannot afford to be populists. We have to reform, reform, reform,” Hichilema said, firmly advising those without jobs to create work for themselves and not expect handouts. “There is nothing more satisfying and gratifying than earning your money in an honest manner and sleeping peacefully at night.”
• The Times view on Hakainde Hichilema’s election: Zambian Democracy
The free-for-all climate that marked life under the old guard is slowly lifting, according to Laura Miti, the head of a Zambian NGO focused on public accountability. “We’ve gone a year without a major corruption scandal,” she said. “There used to be one a week.”
Beyond the economy, she would like to see Hichilema promote some women to his cabinet, take a less conservative approach on social issues and urgently prioritise reform of laws that Zambia’s governments have consistently used to suppress free speech.
“It would not have taken much to improve things after Lungu,” Miti said. “We were at rock bottom. Hichilema has got a great deal more to do but it does at least feel like there’s an adult in the room.”
Image: TSVANGIRAYI MUKWAZHI/AP TO
Zambia’s Kwacha is the World’s Best Performing Currency Against the Dollar
Quartz Africa, September 4, 2022
Most African countries have been unable to tame rising inflation but Zambia has managed to reduce the inflation rate from 24.4% in Aug. 2021 to 9.7% in June.
Hi Quartz Africa readers,
When I was growing up, American action movies often featured one type of super-villain: A bulky, heavily-accented gruff Russian. At that age, I was not politically aware enough to understand why the hero had to be American and the villain Russian, and I never questioned it much.
As an adult now, I see how global geopolitics comes to play even in pop-culture. In every story, there has to be a hero, a savior of humanity, and the villain has to be someone who threatens these global ideals of democracy, peace and order. It’s even worse if the villain is trying to usurp the hero by almost landing the first man on the moon or having access to even more nuclear weapons.
This past week, the last leader of the Soviet Union Mikhail Gorbachev, died. As an African, the USSR’s legacy on the continent and the fall of the Soviet Union is complicated, as it brought both advantages and disadvantages. The steps Gorbachev took in dismantling the Soviet Union laid seeds for independence in certain parts of southern Africa, including eventually leading to the end of apartheid in South Africa.
John Wessels/AFP Via Getty Images
Since the fall of the Soviet Union, new narratives have emerged in Hollywood and elsewhere. One superpower is pitted against the other, with Africans expected to pick good from evil. But expecting a clear cut division between good and evil is a fallacy and a failure to understand history and the intricacies at play in every village, town, country and region. One person’s hero is another’s villain—Gorbachev too was more revered abroad than at home.
Your hero might be behind the assassination of DRC’s Patrice Lumumba, one of Africa’s greatest post-colonial heroes. Your hero might have destabilized Mali, laying the seeds for insurgency in the Sahel. Your heroes might have illegally over-fished with giant ships leading to the rise of piracy in the horn of Africa.
African governments’ apparent hesitancy to pick sides on certain geopolitical issues is all the proof needed that things are not always so black and white. Sometimes, it’s complicated. This pseudo-neutrality should be seen as a sign of wisdom from those who know that yesterday’s foes might be tomorrow’s friends. —Ciku Kimeria, Africa editor.
Featured Image: Lukasz Radziejewski Via Unsplash
IMF Approves USD 1.3 Billion Extended Credit Facility for Zambia
Zambia Invest, September 1, 2022
The Executive Board of the International Monetary Fund (IMF) just approved a 38-month arrangement under the Extended Credit Facility (ECF) in an amount equivalent to SDR 978.2 million (around US$1.3 billion, or 100% of quota).
The program is based on the authorities’ homegrown economic reform plan that aims to restore macroeconomic stability and foster higher, more resilient, and more inclusive growth.
The IMF explains that Zambia is dealing with the legacy of years of economic mismanagement, with an especially inefficient public investment drive.
Growth has been too low to reduce rates of poverty, inequality, and malnutrition which are amongst the highest in the world.
Zambia is in debt distress and needs a deep and comprehensive debt treatment to place public debt on a sustainable path.
The ECF-supported program will help reestablish sustainability through fiscal adjustment and debt restructuring, create fiscal space for social spending to cushion the burden of adjustment, and strengthen economic governance, including by improving public financial management.
The program will also catalyze much-needed financial support from development partners.
IMF Governors Meeting in 2019, Image via Flickr
The Executive Board’s decision will enable an immediate disbursement equivalent to SDR 139.88 million (about USD 185 million).
Following the Executive Board discussion on Zambia, Ms. Kristalina Georgieva, IMF’s Managing Director, issued the following statement: “Zambia continues to face profound challenges reflected in high poverty levels and low growth. The ECF-supported program aims to restore macroeconomic stability and foster higher, more resilient, and more inclusive growth.”
“Restoring fiscal sustainability will require a sustained fiscal adjustment. The authorities’ adjustment plans appropriately focus on eliminating regressive fuel subsidies, enhancing the efficiency of the agricultural subsidy program, and reducing inefficient public investment. Domestic revenue mobilization also needs to support the medium-term adjustment. The adjustment creates fiscal space for increased social spending to cushion the burden on the most vulnerable, help reduce poverty, and invest in Zambia’s people. The ongoing expansion of the authorities’ Social Cash Transfer program and their plans to increase public spending on health and education are particularly welcome. Together with the fiscal adjustment, Zambia needs a deep and comprehensive debt treatment under the G20 Common Framework to restore debt sustainability.”
“A substantial strengthening of fiscal controls is needed to support the fiscal adjustment, as well as address governance and corruption vulnerabilities. Public investment management and procurement practices need to be strengthened to ensure transparency and the efficient use of scarce resources. It will also be important to bolster the framework for monitoring fiscal risks, particularly those related to large state-owned enterprises.”
“The Bank of Zambia should continue its efforts to reduce inflation and preserve financial stability. International reserves should be replenished as conditions allow and the exchange rate should continue to reflect market conditions. Addressing high NPL levels and ensuring adequate capital buffers will also be important.”
For this part, Zambia’s President Hakainde Hichilema wrote on his Twitter account: “We are delighted that the IMF shares our vision for a prosperous Zambia, with strong socio-economic growth at the heart of our development plans. Thanks to the people of Zambia for believing in us. There is still much more to be done.”
Zambia’s Inflation Down to 9.8% in August 2022
Zambia Invest, September 1, 2023
Zambia’s Annual inflation for August 2022 decreased to 9.8% from 9.9% recorded in July 2022. This means that on average, prices of goods and services increased by 9.8% between August 2021 and August 2022.
Annual Food and Non-Food Inflation
Annual food inflation for August 2022 was recorded at 11.3% from 12.0% in July 2022.
This development was mainly attributed to price movements in food items such as meats (brisket, mixed cut, t-bone, beef sausages, mince meat, ox-liver, chicken live); fruits (oranges, lemons, bananas, apples, watermelons, pineapples, avocadoes), rice local and eggs.
The annual non-food inflation for August 2022 was recorded at 7.8% from 7.2% in July 2022. This outturn was mainly on account of price movements in non-food items due to the base effect in Transport.
Annual Inflation Rate by CPI Main Groups
The Annual Inflation Rate in August 2022 increased for:
Transport: the CPI for the Transport main group increased by 13.6% between August 2021 and August 2022. This was higher than the 7.3% in the same month of 2021 and 4.3% recorded in July 2022.
Communication: the CPI for the Communication main group increased by 2.1% between August 2021 and August 2022. This was lower than 3.8% in the same month of 2021 but above 1.9% recorded in July 2022.
The Annual Rate of Inflation for August 2022 decreased for:
Food and Non-alcoholic Beverages: the index for the Food and Non-alcoholic beverages main group increased by 11.3% between August 2021 and August 2022. This was lower than 31.6% in the same month of 2021 as well as the 12.0% recorded in July 2022.
Alcoholic Beverages and Tobacco: the index for the Alcoholic Beverages and Tobacco main group increased by 7.0% between August 2021 and August 2022. This was lower than the 13.3% in the same month of 2021 and 8.1% recorded in July 2022.
Clothing and Footwear: the CPI for Clothing and Footwear increased by 9.1% between August 2021 and August. This was lower than 16.1% in the same month of 2021 and 11.5% recorded in July 2022.
Housing, Water, Electricity, Gas, & Other Fuels: the CPI for the Housing, Water, Electricity, Gas & Other Fuels group increased by 5.4% between August 2021 and August 2022. This was lower than the 22.7% recorded in the same month of 2021 as well as 6.2% recorded in July 2022.
Furnishing, Household Equipment and Household Maintenance: the CPI for the Furnishing, Household Equipment and Household Maintenance main group increased by 6.0% between August 2021 and August 2022. This was lower than 21.2% recorded in the same month of 2021 and below 7.1% recorded in July 2022.
Health: the index for the Health main group increased by 4.8% between August 2021 and August. This was lower than 12.3% in the same month of 2021 as well as 5.1% recorded in July 2022.
Recreation and Culture: the CPI for the Recreation and Culture main group increased by 12.3% between August 2021 and August 2022. This was lower than the 15.9% in the same month of 2021 and 13.7% recorded in July 2022.
Restaurant & Hotel: the index for the Restaurant & Hotel main group increased by 6.8% between August 2021 and August 2022. This was lower than the 14.1% in the same month of 2021 as well as the 8.0% recorded in July 2022.
Miscellaneous Goods and Services: the CPI for the Miscellaneous Goods and Services main group increased by 8.8% between August 2021 and August 2022. This was lower than 15.4% in the same month of 2021 and below the 9.9% recorded in July 2022.
The Annual Rate of Inflation for July 2022 remained the same for:
Education: the CPI for the Education main group increased by 2.3% between August 2021 and August. This was lower than 5.6% in the same month of 2021 and the same as that recorded in July 2022.
Contribution of CPI Main Groups to Overall Inflation Rate of 9.8%
Of the overall 9.8% annual inflation, Food and Non-alcoholic beverages group contributed 6.4% points, while Non-food items accounted for 3.4% points.
Of the 3.4% points, Transport contributed the highest at 0.9% points, followed by Clothing and footwear& Housing, water, electricity, gas and other fuels at 0.7% points each; Furnishing Household Clothing and footwear equipment and routine household maintenance groups contributed 0.4% points. The rest of the Non-Food group accounted for the remaining 0.7% points.
August 2022 Overall Monthly Inflation
Overall monthly inflation for August 2022 was recorded at 0.3% compared with 0.4% the previous month. This outturn was mainly attributed to price decreases in some non-food items. Monthly food inflation for August 2022 was 0.4%, an increase of 0.1% points from 0.3% in July 2022. This development was mainly attributed to the general decrease in prices of items such as Vegetables (Rape, .Sweet potato leaves, lumanda, Cabbage, Tomatoes), Dried bream. Monthly non-food inflation for August 2022 was recorded at 0.1% from 0.7% in July 2022. This outturn was mainly attributed to a slow down in price increases of non-food items such as Fuels & lubricants (Diesel, Petrol, Engine oil) and; Passenger transport by road (Minibus fare, Coach fare).
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AfDB’s $14m USD, Zambia’s Agricultural Future - Mtolo
Farmers Review Africa, September 1, 2023
Africa Development Bank funded US$14.4 million concessional loan planned for disbursement for agriculture and aqua-culture sector development has added impetus to Zambia’s quest to diversify and redeem the economy with plans to promote farming blocks.
Last July, the AfDB’s board of directors gave consent for Zambia to access to its concessional window dubbed: “Building today, a better Africa tomorrow” of a staggering a $14.4 million loan for food security, amid heightening desire to use natural and human resources to bolster the sector and sustain its reliability as southern Africa’s regional bread basket.
The funding, expected to start being utilized this year, anchored in the African Development Bank Group’s African Emergency Food Production Facility will provide, among other facilitations, the country’s certified seeds and fertilizer to 45,000 emergent farmers, a move the Government has applauded.
The provision will be done using the innovation and ICT platforms through existing private sector-based distribution channels. Women and youths will receive 50%-subsidized seeds through an electronic platform that enhances transparency, accountability and sustainability.
Under the financing facility, the project will promote proven climate-smart agricultural practices employed by the Bank’s Technologies for African Agricultural Transformation Initiative (TAAT). Another outcome will be the implementation of agriculture and trade policy reforms.
Additionally, farmers are expected to receive 36,000 metric tons of fertilizer and 3,000 metric tons of improved seeds, as part of the expected outcomes. Further, farm gate fertilizer prices will be reduced by 50%. Majority beneficiaries will be women and youth who lack financial capacity to sustain the business.
A partial credit guarantee scheme will result in over 100,000 metric tons of fertilizer on the local market and stabilize prices. Over 90,000 hectares of maize and soya will be planted, with an incremental annual output of 265,000 metric tons valued at $43.72 million.
This will reduce potential food imports by 200,000 metric tons. The average farm income will rise from $350 to $500 per year. Zambia, one of the countries affected by the high fertiliser cost imported spurred by the Russia-Ukraine conflict, coupled with inflationary impact across various sectors.
Agriculture minister Reuben Mtolo told FRA, the assistance was a stimulant to the Government’s quest to use agriculture and aquaculture sectors as the country’s economic revival lines and meet national obligations amid increased donor interest to financing the National Agriculture Investment Plan (NAIP).
“……this is the beginning of the revolution of the agriculture sector, given the goodwill from the donor community and we hope to invest in irrigation, animal disease control and support to the small holder farmers, many that need farming inputs to reverse the losses incurred last season”
Minister Mtolo notes that with the planned promotion and establishment of farming blocks, the funding from AfDB and other donors will assist drive the revival of the agriculture and aquaculture sectors and that financing would be spread to all the 10 provinces of the country.
According to the Agriculture Productivity and Market Enhancement Project (APMEP) program, financed by the Global Agriculture and Food Security Program (GAFSP), a Financial Intermediary Fund hosted within the World Bank Group, the funds will go towards technical assistance to farmers in various aspects.
Recently, GAFSP had extended $31.13 million in grant funds Zambia for APMEP, while at the time African Development Bank disbursed the money and provided technical expertise.
Under APMEP, Zambia will expect to develop irrigation schemes, intensify agricultural mechanization, promote conservation agriculture, crop diversification, and enhanced aquaculture and livestock development in Zambia.
This is part of an integrated agriculture value chain development under the Ministry of Agriculture. The project contributes to economic growth and poverty reduction by enhancing food security, incomes, and nutrition among participating households.
According to the Bank’s Director of Agriculture and Agro-Industry Martin Fregene; “GAFSP has provided farmers with ways to improve their livelihoods and created employment, especially for vulnerable people like women and youth in rural areas.”
Zambia lost 25% of the grain produced during the 2022 farming season, dropping to 2.7 million metric tons, 600, 000 less than produced a year earlier. The low output is despite increasing demand for maize from neighbors, hard hit by drought and climatic change effects.
To grow agriculture, Zambia’s finance minister Situmbeko Musokotwane incentivized the sector during the 2022 national budget to help transform the agriculture sector into an agro-export industry and attract investments in farm blocks.
Government proposed to promote large-scale estate production for both domestic and export markets.
It will provide necessary infrastructure in farm blocks for them to be operational. The incentives will promote agro-processing and exports, and more investors will be willing to invest in the farm blocks.
Government in collaboration with the World Bank seeks to help service the farm blocks. This will motivate players in the agriculture sector to produce finished agricultural products for export, farm blocks being effective vehicles for economic growth.
“We need to attract investors who will establish mango, banana and sugar plantations to make finished agricultural products” he told lawmakers on 29 October.
Image: James Baltz via Unsplash
ZESCO Tenders for 50 MWp of Solar Power in PPP
Afrik 21, August 25, 2022
State-owned Zambia Electricity Supply Corporation (ZESCO) is inviting tenders for the construction of three solar power plants in several provinces in Zambia. Interested independent power producers (IPPs) have until 2 September 2022 to apply.
Zambia will soon have three new solar photovoltaic plants. The project, led by the state-owned Zambia Electricity Supply Corporation (ZESCO), is subject to a tender with a deadline of 2 September 2022. The facilities will be built in Southern, Western and Luapula provinces, with a combined capacity of 50 MWp.
The selected Independent Power Producers (IPPs) will develop, finance, build and operate the solar PV plants. All applications will be considered, together with the relevant feasibility studies, under commercial contracts agreed between the developers (IPPs) and the utility ZESCO.
The development of these projects should enable Zambia to diversify its electricity mix. The East African country has an installed capacity of 3,030 MW, of which 2,393 MW is generated by hydroelectric plants. The largest of these is the 1,319 MW Kariba plant, which Zambia shares with Zimbabwe. ZESCO obtains some of the electricity it distributes to people and businesses from thermal (gas and coal) and solar power plants.
With the increasing droughts in Eastern and Southern Africa, Zambia is faced with lower dam levels and therefore lower electricity production in the dry season. To cope with this situation, ZESCO wants to further diversify its sources of production by focusing on solar energy. Zambia already has an installed solar capacity of 91 MW according to Power Africa. Among the solar power plants commissioned in recent years is the 54 MWp Bangweulu plant. The park was built by a consortium of French IPP Neoen and Zambian investor Industrial Development Corporation (IDC).
For more information on the ZESCO tender, click here.
Lusaka July 2022 to drive Zambian Tourism: in Partnership with the Zambia Tourism Agency
Mwebantu, August 24, 2022
OVER two million viewers will be tuned into Diamond TV to witness the fashionable gathering of 300 influential Zambians and networking enthusiasts at the 7th annual Lusaka July event on 3 September 2022 at the Lusaka Polo Club. The 2022 edition of the event is themed “Emeralds In A Zambian World” – a celebration of Zambian excellence through fashion, art and lifestyle. Following the six years of successfully hosting the event, PR Girl Media has partnered with Zambia Tourism Agency to co-present the Lusaka July as a platform to promote local and international tourism for Zambia.
Speaking at a press briefing held to officiate the launch of the Lusaka July 2022 event, Minister of Tourism P.S Mr Evans Muhanga stated that “the Lusaka July is Zambia’s leading fashion networking event which has attracted mass publicity across Africa. As the Ministry of Tourism, we are proud to witness the growth of a Zambian product beyond our borders. The entertainment industry must play an active role in the promotion of Zambian tourism – the success of the Lusaka July and other local productions in art, fashion and media is an indication that Zambians are truly capable of producing quality content for foreign markets.”
In addressing the media at the press briefing held at Lusaka’s Hilton Garden, CEO of Diamond TV Mr Costa Mwansa said, “as a media partner we have supported the Lusaka July for the last four years. The event showpiece has grown the quality of content on the Diamond Media platform and is a major calendar event in our annual programming. We are proud once again to partner with PR Girl Media in delivering a TV showcase to millions across the world, in our quest to promote Zambia’s pop culture, art and tourism”.
Acting CEO of Zambia Tourism Agency Mr Chavunga Lungu has confirmed the endorsement of the Lusaka July event as a tourism activity. “We are excited to partner with PR Girl Media in the expansion of the Lusaka July into the tourism sector. The entertainment industry is a vibrant addition to our tourism portfolio and we are thrilled to be a part of a colourful event that highlights our beautiful people, culture and food”.
Zambian Breweries Brand Manager Ms Mwila Matoka added that Zambian Breweries has supported the Lusaka July for five consecutive years. “We are proud to be part of an event that has generated public and media interest in the country and beyond our borders. We are passionate about the fashion and arts industry, empowering women and youth who use their creativity to showcase Zambia.” Ms Mwila said that Zambian Breweries is encouraged by the Lusaka July partnership with Zambia Tourism Agency. “There is a natural connection between tourism and entertainment, we hope this partnership yields many positive results for the Zambian market in boosting local enterprise.”
Also speaking at the press briefing, Ms Bridget Kambobe highlighted the importance of corporate participation in the fashion and arts industry. “There is so much potential in initiatives such as the Lusaka July and as Big Tree Beverages, we support the recognition of the event as a key tourism platform”. Ms Kambobe further stated that the “Lusaka July is a Zambian product that is deserving of corporate investment, we believe in its ability to drive local and international tourism for Zambia and in turn boost our economy.”
The Lusaka July 2022 is supported by Zambia Tourism Agency, Zambian Breweries, Big Tree Beverages, Manda Hill, Nederburg Wines, Inverroche Gin, Hilton Hotel, Proflight Zambia and Orca Deco. The event will feature Zambian fashion designers among others from Namibia, Botswana, Uganda and South Africa including some of the continent’s biggest lifestyle influencers. The Lusaka Polo Club will have a one-day tournament of polo which as per event tradition as a backdrop to a lavish afternoon of networking. Lifestyle and fashion enthusiasts are invited to purchase tickets at K3,000 per person from Manda Hill Information Desk. Further details of the event can be found via the PR Girl Media social profiles on Facebook, Instagram and Twitter using #LusakaJuly2022..
Zambia Pushes for Innovation in Agriculture to Accelerate Food Security
Farmers Review Africa, August 16, 2022
ZAMBIA’s hosting of the 4th Mid Year African Union summit hosted in the capital Lusaka last July dubbed: “Strengthening Resilience in Nutrition and Food Security on the African Continent” has instilled a call innovative technologies and become the pivot for sustained food security.
Inspired by resolutions from the Africa’s Heads of States and Governments summits in Equatorial Guinea capital, Malabo since 2003 to date coupled by the African Union meeting’s theme, Zambia wants to bolster production using innovations and become the continent’s food basket.
At the Malabo meetings, one driving resolution as Africa is to jointly identify and prepare bankable projects at the national and regional levels, through the RECs in food and agriculture and to engage in mobilising resources to implement them, and investing in sectors essential for agricultural growth and development.
President Hakainde Hichilema had during the July 17-20 AU mid-year meeting underscored the need for Africa to drive and own an agenda in meeting the aspirations of the 2063 agenda. This is, despite the pervasive disruptions of climate change, the COVID-19 pandemic and the war in Ukraine.
To address climate change and other shocks, urges Africa to encourage innovation in member states and consider signing and ratifying the Africa risk capacity treaty and open up assistance channels in planning, preparing and responding to these shocks in a timely and cost-effective manner and redress food insecurity.
“We need to raise the levels of productivity in agriculture, emphasise on value addition through Agro-processing, accelerate research in agriculture, emphasise on and increase support to rural farmers whose livelihoods mainly depend on agriculture.” he said in his address to delegates while calling for reliable transport connectivity
Zambia’s ministers of livestock and fisheries Makozo Chikote and Agriculture, Reuben Mtolo share a common vision; enhancing and maximizing the technological innovations induced in the country to insulate the country from climate change, COVID 19 and other related calamities that forced economic downturn since 2020.
Zambia’s annual fish deficit averages 87,000 metric tons with the country’s production capacity in excess of 100,000 metric tons (mt), with about 85,000mt from capture fisheries while the aquaculture sector, currently is in its infancy, and contributes around 30,000m
Innovative practices include conservative fish farming to reduce increasing post harvest losses and discourage bad fishing methods through the use of snares. Zambia is encouraging women and children in coastal and inland areas to be active to boost food security.
“I am impressed with the innovation and we have a test to pass on the technology to the rural small scale farmers and increase food security but we need to work with all sector players to demand for the livestock.” Minister Chikote said recently after touring the 94th Agriculture and Commercial Show in Lusaka.
And Agriculture minister Mtolo said Zambia has adopted a ‘smart technological investment’ initiative to bolster food production by setting up agro processing plants in all 107 districts and all 10 provinces to encourage value addition and maximize returns from ‘value added exported products’.
Zambia is encouraged the growing and harvest of tomatoes, pineapples, mangoes, groundnuts, among other products though hampered by lack of agro processing plants in the country resulting in waste-cp0ntrasting the vision of the Africa Continent Free Trade Area (AfCFTA) of enhancing reliable markets for all member states, of which 46 have now ratified the treaty operationalised last year.
On 28 July, President Hichilema commissioned the K130 million (US$810,000) multi fruit processing Kalene Hills Fruit Factory, in north western Zambia. It will process a variety of fruits and other farm produce such as beans, groundnuts and tomatoes using small scale farmers as suppliers ultimately to encourage value addition.
In April 2022, the Common Market for Eastern and Southern Africa in collaboration with the African Development Bank (AfDB) and the United Nations Economic for Africa sought to set up a Joint Agro Industrial Park to increase the availability of industrial goods and services for the bilateral market and expand intra- regional trade in manufacturing.
The industrial park to be partially located on each side of the border, will help develop industrialists seeking to acquire ownership and management of the industries. It is hoped to prioritise processing of value chains such as cotton, maize, wheat, rice, soya beans, sugar, livestock (leather and dairy) and horticulture.
The sectors provide extensive linkages with the manufacturing sector particularly in the processed food sub-sector-key to promoting industrial activities for skills development and knowledge in industries strengthen collaboration and bolster networking among policy makers, regulators, industry and academia.
The project is aligned with the COMESA Industrial Strategy, which Member States have adopted and create a globally competitive environment-friendly, diversified industrial sector which is based on innovation and manufacturing as tools for transforming regional resources into sustainable wealth and prosperity for all.
The project seeks to encourage the setting up of Special Economic Zones (SEZs) and tap the potential and later used as platforms for regional and sub-regional markets and inputs supply, says Comesa assistant secretary general Dr Kipyego Cheluget.
The African Union is cautious of the effects of food insecurity on the continent and calls for mobilization of massive investments for substantial agricultural production in Africa, says its chair, Macky Sall, also Senegalese President.
“It is urgent that we win the battle for food security to settle an existential question and take up a challenge of dignity for our continent.”
Tanzania and Zambia Agree to Upgrade Tazara Railway
Connection between the two countries will be rebuilt to standard gauge to further economic development.
Photo Credit: Richard Stupart/Wikipedia Commons
TANZANIA and Zambia have agreed to upgrade the Tazara railway that connects the two countries as part of measures to improve bilateral ties.
The 1160km cross-border railway linking Kapiri-Mposhi in Zambia with the port of Dar es Salaam in Tanzania will now be upgraded to standard gauge through a partnership with the private sector and development partners.
Tanzania’s president, Ms Samia Suluhu Hassan, says the 1067mm gauge, single-track Tazara line does not deliver what is expected of it and an upgrade is needed to open up new business opportunities along the route.
“In today’s world, railway is standard gauge,” says Hassan. “So through a Public-Private Partnership (PPP) we have agreed to come up with a project to improve the Tazara railway to that level.”
Tanzania is also constructing a 1219km standard-gauge line from Dar es Salaam to the city of Mwanza on the southern shores of Lake Victoria.
Known as the Tanzania Standard Gauge Railway, the system is being designed to link Tanzania with Rwanda and Uganda, and continuing to Burundi and the Democratic Republic of Congo. The work is included in the East African Railway Master Plan aimed at rejuvenating the region’s railways and increasing efficiency and speed while lowering transport of freight costs and furthering economic development. The railway will use electric power and transport of goods to Uganda from Mwanza will be by lake ferries.
As of April 2022, the 300km Phase 1 from Dar es Salaam to Morogoro had been completed while work on the 426km Phase 2 Morogoro – Makutopora, 294km Phase 3 Lot 1 Makutupora – Tabora, and 341km Phase 5 Isaka - Mwanza sections was in progress. Phase 5 is being built by China Civil Engineering Construction (CCEC) and China Railway Construction Company (CRCC).
In July 2022 Tanzania Railway Corporation (TRC) signed a $US 900.1m contract with Yapi Merkezi for the construction of the 130km Phase 3 Lot 2 Tabora – Isaka section, along with its 35km of branches, the same company having previously won a $US 1.9bn contract for Phase 3 Lot 1.
TRC has also signed a contract with Korean national operator Korail to provide training In rail construction and operations following the line’s opening.
The first locomotives being used for testing of the electrified Phase 1 of the Tanzania SGR are former class 1014 locomotives purchased from Austrian Federal Railways (ÖBB).
Image: Marissa Beletti via Unsplash
Government Launches Three Strategies and Action Plans to Increase Access to Electricity and Renewable Energy
Lusaka Times, July 29, 2022
The government yesterday launched three strategies and action plans under the Increased Access to Electricity and Renewable Energy Production (IAEREP ) project aimed at improving the management of the energy sector.
The European Union and COMESA funded project has seen the formulation of the Energy Management Information System, Zambia Power Development Framework and the Energy Sector Strategies.
Minister of Energy, Peter Kapala said the three strategies will transform the energy sector calling on all stakeholders to support the ministry successfully implement the strategies.
ZANIS reports that said Mr. Kapala this in a speech read on his behalf by Ministry of Energy Permanent, Francesca Zyambo in Lusaka today.
Mr. Kapala said the Energy Management Information System has been developed to automate business processes in the ministry and effective monitoring of the performance of the energy sector.
“The successful implementation of the three strategies requires the participation of all relevant stakeholders. Let me therefore implore the private and public sector institutions, the cooperating partners, research institutions, civil society and other key stakeholders to support the Ministry of Energy in the implementation of the strategies, “he said.
He explained that government is alive to the challenges faced by investors in the sector saying the development of the Zambia Power Development Framework, will help improve processes and procedures in the sector, while the Renewable Energy Strategy is set to ensure systematic investment into renewable energy market.
“The new dawn government realizes the importance that the private sector plays in the energy sector. In this regard, my ministry has been working on lessening the burden the investors have previously endured of moving from one office to another enquiring the procedures and the processes for obtaining licences for the power projects,” he said.
And speaking at the same event, Head of Cooperation for the European Union delegation to Zambia and COMESA, Arnaud Borchard said the EU and Zambia have since 2014 worked together in developing the energy sector through various interventions towards a green economy. He disclosed that over K4.2 billion has been invested in the sector citing the rehabilitation of the Kariba dam as one of the many interventions.
Mr. Borchard said the interventions are not only on the country level but regional level stating that EU plans to extend the interventions to other sectors such as water.
“We supporting electricity programme, particularly to increase access in rural areas. And these initiatives are fundamental for enabling a broader, inclusive economic and social development as well as facilitating the emergence of the green economy. Since 2014, we have allocated more than K4.2 billion to the energy sector under our partnership between the EU and Zambia and we are active in all compartments in the energy sector” he said.
Image via Lusaka Times
Zambia to be a champion of nickel production in Africa-HH
Lusaka Times, July 27, 2022
President Hakainde Hichilema says the newly a US$250 million Enterprise Nickel mine project in Kalumbila district is important as it will provide raw materials for the production of electric motor vehicle batteries.
Mr Hichilema says development will also help the country make the vision of moving into a clean and environmental friendly nation a reality.
The President made the remarks when he officiated at the ground breaking ceremony for a project which is part of the US$1.35 billion expansion investment by First Quantum Minerals (FQM).
The project which will be the biggest nickel producer in Africa is expected to create about 18,000 direct and indirect jobs.
“The vision of Zambia moving from a brown energy to green energy is slowly becoming a reality with such projects coming on board,” Mr Hichilema said.
The head of state said the project will also create jobs and household income for the local people as well as generate revenue for the country adding that the revenue generated through taxes will be channeled to other needy areas such as procurement of desks and drugs.
” This project is important for our country, as it will create jobs for our people and food in homes, this is an important consideration for us when embarking on any project,” he said.
Mr Hichilema said there is need to create long lasting relationships between the community and investors because both parties are beneficiaries.
He said government will for this reason continue working with partners and investors in reducing poverty, creating jobs and income for the local people.
“We are ready to work with any and all that love progress to reduce poverty, create jobs and household income,” Mr Hichilema said.
Speaking earlier, FQM chief executive officer Tristan Pascal said Zambia continues to be a prime destination for investment owing to the conducive environment.
Once in full operation , the mine will produce 30,000 tonnes of nickel per year.
Mr Pascal said the nickel project will also provide about 430 megawatts of wind and solar energy in a few years to come.
And mines Minister, Paul Kabuswe said the mine project will make Zambia a champion of nickel production in Africa as the country will contribute to the growing demand of nickel for production of electric motor vehicle batteries.
Mr Kabuswe said government will ensure that any investment that comes to any part of the country uplifts the lives of the local people.
Northwestern province Minister Robert Lihefu said the nickel project will create many other opportunities apart from direct jobs.
Mr Lihefu said the coming of the project is in line with the United Party for National Development (UPND) manifesto on job creation and poverty eradication.
ZESCO to Commence the Exportation of Electricity to Zimbabwe
Lusaka Times, July 27, 2022
Energy Minister Peter Kapala says ZESCO will next month commence with the exportation of 100MW electricity to Zimbabwe under a five years deal.
In a statement published on his Facebook page, Mr Kapala noted that power from the Kafue Gorge Lower will be exported to Zimbabwe and Namibia through contracts signed in the last few months.
He added that Zimbabwe is currently facing a critical shortage of power because of the local power shortfall which has been worsened by the depressed generation at Hwange and Harare thermal power stations, including the loss of one unit, that is unit 6, that produces 125MW at Kariba Power Station.
The Minister explained that Zimbabwe Power Company – ZESA’s power generation arm is currently producing 1 201MW at its five power stations against peak winter season demand of 2 200MW, and last week, the biggest power generation plant in Zimbabwe, Kariba South, was generating only 758MW against an installed capacity of 1 050MW while Hwange Power Station was generating 411MW against an installed capacity of 920MW.
“This has forced the Zimbabwe Electricity Supply Authority (ZESA) to facilitate the creation of a group of intensive energy users to finance power imports from the region,” he said
And Zimbabwe Electricity Transmission and Distribution Company (ZETDC) Acting Managing Director Howard Choga told Zimbabwean media that the power imports were imminent.
“We signed power import deals with Zambia a long time ago, but we had not been getting electricity from that country because of cash flow challenges. Now, because we have prepaid, we expect this to be settled in the coming weeks and we will start receiving 100MW from Zambia. We have to prepay them a month before we receive the electricity,” he explained
Mr Choga added that the power import deal with ZESCO has a three to five-years tenure, as the negotiations with ZESCO were premised on Zimbabwe making pre-payments for the 100 MW, which will come from Kafue Gorge Lower and the condition precedent is that ZESA has to pay monthly deposits of USD 6.3 million to enjoy the facility.
He noted that the task of importing electricity from Zambia was led by a delegation to its subsidiaries namely, the energy generating company Zimbabwe Power Company (ZPC) and the Zimbabwe Electricity Transmission and Distribution Company (ZETDC) and other subsidiaries such as the investment branch ZESA Enterprises (ZENT) and internet provider PowerTel Communications (Private) Limited.
“ZESA is the only electricity generator and supplier for the public grid which represents Zimbabwe in the Southern African Power Pool,” he said
Mr Choga noted that Zimbabwe Electricity Supply Authority, (ZESA) whose official name is ZESA Holdings (Private) Limited, is a state-owned company whose task is to generate, transmit, and distribute electricity in Zimbabwe.
Image via Lusaka Times
AfDB Grants $1.4 Million to Strengthen Women Agri-Businesses in Zambia, Tanzania and Mozambique
Zambia Invest, July 27, 2022
The Board of Directors of the African Development Bank Group (AfDB) has approved a USD 1.4 million technical assistance grant to Export Trading Group (ETG) for the funding of women-owned businesses in Zambia, Tanzania, and Mozambique.
ETG is one of the largest and fastest-growing integrated agricultural supply chain managers and processors in Sub-Saharan Africa.
The project will enable 600 women-led businesses in Mozambique, Tanzania, and Zambia (200 in each country), to improve their entrepreneurship skills through training under ETG’s Women Entrepreneurship and Employability project.
The project’s main objective is to increase the efficiency of targeted women-owned and led small and medium-sized enterprises employed in ETG’s operations. The project will run until 2025.
Of the financing for the grant, USD 1.4 million will come from AfDB-managed We-Fi grant resources, which will be utilized to undertake a diagnostic study and capacity building of the selected enterprises in the major ETG locations.
Additional co-financing of up to USD 400,000 will come from ETG for the employability aspects of the project. It will also be used to facilitate collaboration with financial institutions and other relevant stakeholders.
“This new technical assistance project complements a USD 150 million trade and agri-finance package approved by the Bank in November 2021 to our strategic partner Export Trading Group (ETG). This is the first project to directly leverage AfDB’s Affirmative Finance Action for Women in Africa program for private sector agriculture projects, enhancing development impact while supporting women farmers and women-led small and medium enterprises,” noted Atsuko Toda, Director for Agricultural Finance and Rural Infrastructure Development for the AfDB.
The project will be implemented in partnership with ETG’s development arm, the Farmers Foundation, a nonprofit organization established in 2012 in Tanzania to stimulate growth in agriculture and foster the development of rural economies.
The Farmers Foundation has worked with 100,000 (40% female) agribusinesses and created an inclusive sustainable development model in multiple value chains: oil seeds, legumes, pulses, cereals, coffee, and cashew in Uganda, Kenya, Tanzania, Zambia, Zimbabwe, and Mozambique.
The project aligns with We-Fi objectives of providing women-owned enterprises with opportunities to link with domestic and global markets, scaling up access to financial products and services, building capacity, and expanding networks plus mentorship.
“The Bank’s role through the AFAWA program is to support the implementation of the project through provision of gender equitable financial and technical support in agriculture towards increased productivity and food security, access to financial services, information, markets, technology, and productive resources,” said Esther Dassanou, Manager of the Bank’s Affirmative Finance Action for Women in Africa ( AFAWA) program.
“ETG has shown its commitment to embedding a gender perspective into its business operations with the understanding that this is key to its success and that women are at the center of this development process, and a crucial resource in agriculture and the rural economy,” she added.
The agriculture sector significantly contributes to the growth of the economies of Mozambique, Tanzania, and Zambia. Women constitute up to 60% of the rural labor force and approximately 80% of food producers in these economies.