Saturday, April 20, 2024

Zambia to offer tender for oil, gas exploration

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magande.jpgZambia plans to offer 25 blocks for oil and gas exploration in a bidding round for international companies in the next few weeks, the finance minister said on Thursday.

The bidding round, Zambia’s first, follows an announcement in October last year that the landlocked southern African country had discovered oil and gas reserves in the northwest of the country bordering oil-producing Angola.

“We are now preparing the newspaper advertisement to invite interested parties to bid for the exploration on 25 blocks, and in the next few weeks or so we should be tendering for this,” Ng’andu Magande told Reuters on the sidelines of the World Economic forum for Africa in Cape Town.

He could not say exactly when the tender would be launched.

Magande said Zambian oil officials had visited Norway to get more expertise on how to conduct the bidding round.

The discovery was made by government geologists who had also carried out soil sample analysis confirming the find.

The government would select a foreign oil firm or firms to conduct comprehensive exploration, to determine the size of the identified oil and gas reserves.

The tender may also require them to expand the scope of the study to other districts of Zambia, he added.

Zambia does not produce oil but exports refined petroleum products to the Democratic Republic of Congo and Zimbabwe.

Zambia currently imports its crude oil from the Middle East and refines it at the Indeni Oil Refinery, which is in the copper-rich northern region of the country.

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102 COMMENTS

  1. On a serious note I am signing up for some of these tenders instead of wasting my time rumbling in helpless blogs. All my money, energy and credit lines are going towards this. I wasted my time on useless things when fellow smart Zambians are in cashing in on the boom.

  2. Let us get it right this time. This is a Zambian project, whoever will win the tender must incorporate indigenous Zambians as partners and the issue of corporate social responsibility must be critically looked at. The whole tendering process should be transparent and politicians who want to take part must declare their interests before the process starts.

  3. #1 do you know the capital outlay required for exploration? This calls for exclusive expertise and at high cost.All we need are just proper regulations so that we are not cheated in the process like the ‘oil from grass’ issue and yet the chap was mining emeralds.
    #2 you are right it should be done jointly with Zambians like BaJoze and myself for us to do proper due diligence

  4. Well Said # 2 just like the South African Govt has made it law for companies to partner with Black companies we should also compel our investor to partner with local Zambians. it is hgh time we stopped being managers and started being shareholders of our wealth.# 1 i am with you we all can have a share of this wealth , it is ours and like Mbulawa has said politicians must keep away or declare their interest in the projects before hand.Trnasparency sholud be exhibited and the locals must be educated about this project so that they can intelligently be involved.

  5. Entrepreneur(1), if contributing to these blogs is “wasting your time,money energy and credit lines” i doubt very much you can afford to submit a credible bid.The cost of tender documents alone will kill you!!
    Sharing your views and opinions with us is much cheaper and who knows you may link up with someone to help you meet the cost of submitting a bid!!!Please spare us a little of your time so that we may learn from you.

  6. #1 you are right we need to cash in on our wealth.Kuku the issue of capital outlay that is where the Govt comes in. They must put regulations in place especially with financial institutions to relax requirements for Zambians wanting to borrow money for investment purposes.

  7. Ba KUKU,dont you think that we can enable Zambians by subCOntracting the tenders?definately their is building material needed,Zambians can do that,camps will be erracted,zambians can do that.Some equipment for bulding will be needed,we can supply that.The money needs to stay in zambia.please refer to our last topic about enabling Zambians,enabling means creating a favorite environment for the citizens to have a steady income and investment.It could be share holder by expertise,Zambians this is the only time.
    THE ZAMBIAN GOVERNMENT ITS TIME THE LOOKED INTO THIS.

    I SUPPORT YOU #1

    BA JOZE iam worried AMA HAFU KUTI YAVA REFER #3 POINT #2

  8. #1 is a dreamer Pundit leave him alone.He doesnt even how to do an LC,if he cant afford browsing time pa net you think he will be anywhere near when we start doing our due diligence?He sounds like he is from Chipata to him exploration is like those tunnels and traps used for killing mbeba.Iyayi iwe mambala ninchito ikulu maningi.Kuli first surveying, then plotting and finally equipment all these come at enormous cost but we need a very trasparent system not the one we saw during privatisation where HH sold Zambezi loyal and became its chairman, he sold Lima bank and sold himself one of the big bank houses for a song, its not just FTJ who should be crucified for taking a few coins from Zamtroop there are more dirt hands at play including the director of Teka farms

  9. Efyo ndekana efyo,.please lets not be like robots in thinking and reasoning,everything is possible anyone else can crack it big,just have a big mind and the support of the of the government.

    ba JOZE # 6 ELYO NAIMONA PIC YOKWA MAGANDE work hard MUKAMBA NAIMWE BENE MUKAFIKA PALYA.

  10. #8 and#9 govt has no busness being in business it should just put a proper system in place that will empower indigenous Zambians. gk you are right that is why we want proper systems in place to support these ventures.We have been cheated enough by these investors they will start brining in their relatives just to come and hold the surveying campus and pay them heavily.We need a system that will spell labour composition,wages,supplier base,etc not a situation we saw at Kansanshi. My worry gk mwaice some one will bring those ex prisoners from CHINA because it seems China is our immediate saviour.

  11. Elilya nomba economical advocacy isa.WE need to fight for proper econmical laws that will safe guard the zambian people.

  12. No 12 on the contrary , an economy like ours needs alot of guidance.Govt has to be actively involved if we are to succeed. Only in developed countries do govts stay out of business.

    A serious advise to govt , they should only engage investors from countries that deal with inland oil explorations. lets us keep investors from china,india away

  13. Exploration and actual development of gas and oil deposits are different areas of expertise.Geologists are required in the former and petroleum engineers in the latter.Geologists we have plenty…..petroleum engineers ?????(those that sell fuel along the dual carriageway do not qualify please !!)
    We must legislate that any exploration or development must be in partnership with a Zambian firm (similar rules applied to road contractors).Further rules must state that a foreign company cannot own more than 49% of the joint venture for the first 50 years.Don’t think this will scare them away…. they need us and our resources and we will be protecting a diminshing asset to ensure development of our country. My ideas are not absolute and i invite anybody to refine them further.

  14. 14 #gk the starting point lies in a well achieved constitution.Look at USA where you are things just fall in place or the UK where Kayata is things just fall in place and no one even ever dreams of changing the constitution.The document was written with a human heart to stand the best of centuries nomba ifwe lelo ati article 4 , mailo ati article79 after 2011 at ati article 16 what the hell goes on? If we had a credible constitution we could have been the happiest nation in Africa bacause everyone will have known their limits

  15. The Govt should not be in a hurry to put this project to tender . Regulation should be put in place first and the citizen economic empowerment should also come to the party so that local Zambians are educted about playing a role in this investment.I disagree with # 2 politicians saving in the present govt must not be involved.if any one in govt wants to be a part of it they must resign.Let us do it right for once.

  16. Pundit that is why when you read thru #18 you find his comments to be useful. Wemust not rush to tender this project. We need to make sure atleast we put zamnbians in schools to study Petroleum Engineering.# 14 please look at the state of the sudanese economy and you now know why china is exploring oil from there

  17. #3 Oil from Grass
    Most people including intellectuals laughed when KK floated this Idea. To day almost 25 years later this has become a reality.Plants such as Jatropha,Kabansas and Lin are able to produce oil which blended in the rigt format are able to produce combustable fuels to propel vehicles.

    Other grasses such as maize and sugarcane are being used as alternates of fossil fuels to produce biogas. The derivative ethane is now being heralded as the new energy for cars. It clean, sustainable and very cheap to produce. Countries in the Carribean and South America which have suitable climates are now turning towards this energy source.
    Kaunda nmy not have known the rudiments, but the motive to find alternative fuels sources to fossil fuel was a brave and commendable one

  18. # 14. T boz.
    We dont need to take that long to get started. We have enough man power and knowledge. We just have to identify it.

    Issues of (further) training can be done as we go along.

  19. # 19. T boz.
    We dont need to take that long to get started. We have enough man power and knowledge. We just have to identify it.

    Issues of (further) training can be done as we go along.

  20. # 19.
    We dont need to take that long to get started. We have enough man power and knowledge. We just have to identify it.

    Issues of (further) training can be done as we go along.

  21. Kuku #17. You make it sound sooooo simple. Who told you that in the UK and in USA “Things Just Fall In Place”. You must be dreaming!!

  22. #25 Born Rich mwaice since I have never been there I rely on my research,of course they dont change the constitution like a shirt.Unless you are there illegally but they have more developed system interms of judicial, financial, medical, education and who ever is in power will just promote their manifesto not to temper with the constitution.
    Waumfwa mwaice born rich if you are an illegal immigrant legitimise your stay or wait for George Bush’s amnesty to go through

  23. Kuku#16, for your information, the UK HAS NO WRITTEN CONSTITUTION, it evolves by way of statues & Bills presented to parliament, thus it is a very dynamic & rapidly evolving constitution. USA on the other hand has a written constitution, this was done after the revolutions/wars against Britain.

  24. #26. Kuku. I dont want to be too hard on you. I know the point you are trying to put accross in #17. A good constitution is good for any country, zambia included. Bye for now.

  25. #26. Kuku. Concerning the issue of illegal immigration, my ernest believe is that USA would not be as succesiful as it is without immigrants, whether Illegal or otherwise.

    USA needs much more immigrants than the democrats want to make us believe. I think the fear for this guys is not so much the “normal illegal immigrant” but those that are “terrorists in nature”, you know what i mean?

  26. This is the time for Zambians to form companies and tender in a bid. When Chinese do so and are awarded contracts, there should be no need to turn around and call them Infestors.

  27. Kuku.. The “Oil from Grass” was not a bad idea. Its what is being refered to today as Bio diesel. The concept was good. But there was no reaserch done to make technocrats and policy makers understand how its done. If that project was done the right way Zambia today would be competting with Brazil on ethanol and bio fuel production. Can some one explain to me why Zambia sugar company does not produce ethanol?
    …Born Rich the whole issue of immigration in the brother land is about cheap labour. When you legalise 12meters of illegals they will a right to ask for a minimum wage and their interests would be protected by the law. This would bring about a significant rise in companies operational costs. They are trying to mitigate the impact by introducing the guest worker program to slowly replace the current low cost work force with new people. Who by the way will be negotiating their pay in mexico and they can not work for another company except the one that brought them in. That way …

  28. #28 &30 Born Rich mwaice wandi no vundu, iwe uli wa correct wiba kwati ni ci Citizen.Every where I believe illegals do the donkey work-cleaning,polishing toilets etc which the indigenous find too dirty to do so these developed worlds can not do without them but like SAGE has articulated is the huge cost companies will have to folk out after the amnesty.They have to protect their own interests and you know most of the senators are businessmen and women so its tricky but it will be a great thing if Bush is surppported in this regard.#27 Bauze many thanks for sharing with me that data.
    #32 The bio fuels were only given the much thought recently when KK was shouting loudly that in Chama oil can be made from grass this chap was just halucinating,the grass he was talking about was star grass(imisanse)not the real grass used for bio fuels.He was 180 degrees off tangent we cannot even say that he was any close to the recent technology.Even at that time research was being done on certain plant

  29. #32 SAGE there is nothing like bio-diesel but bio-gas(methene), bio fuel(fire wood). therefore, diesel is the heavy hydrocarbon te? therefore, hydrocarbon fuel can only be obtained from organic material for more than 100 year after decomposition is over te? and the end results are coal and oil. manje zambia and zim-zim mwaliba coal but no oil te? now get me rigt here, coal is found in layers so the earth is tilted te? manje ama deposite ya oil are found on the western sides of the continent te? so angola kwaba oil. but we may have traces ya oil ku haye.

    ethanol is not produced from cane sugar coz of carbonic structure of plants (C6 H12 C6)but we can get methane from the fermetation of molasse te? methane can be processed to methanol as an alcohol te? iwe sage umutwe wakalipa kuchisungu nalemba nomba naya mukushita panandor

  30. #35 As Bajoze as explained Zambia sugar produces Methanol from molasses and actually there is another use for molasses paving of dust roads it works just like bitumen.Ethanol is actually a heavy hydrocarbon.So when paving your road to the farm just apply molasses on it and you wont regret.
    BaJoze many thanks for bringing back my C110

  31. Ba Jose thanks you really make my day. Well explained pandtu tuleumfwa fye at amafuta ku NP buti no concrete data. So mudala teti tu gete ka tender ka exploration? The only thing we have took at here is the monetory factor. I get worried when words like “tender” are used. Whe he says tender that means the government has to pay the cost for exploration. why cant we let the oil companies foot the bill for exploration. Usually the exploring companies gets some royalties from the discoverd oil thats how they get back their investment or they go into production temselves.
    palyashi lya immigration i think umukalamba Mpanga ala pela ama documa. Aliba sana determined apo abika umunwe palaba ibala.

  32. yes i agree with #2 and #5.if these international companies come and bid for rights to explore for oil in zed they shd be able to demonstrate how they will ensure that the pillars of empowerment will be incorporated in what they will be doing.it is not enuf to just say creation of employment.how are they going to assist in the economic transformation of society and ensure that the indigenous zambian benefits from oil prospecting activities and in turn participates in the economy.

    furthermore grz should make it clear to these investors that certain incentives will only accrue to them if they can show that they are in partnership with indigenous zambians and no fronting.

  33. BA JOZE YOU ROCK !!! PLZ GIVE ME YOUR CONTACT!! I dont care what Pipo will say. I need you contact e-mail address.

  34. Kuku,this is where now the importance of the constitution you mentioned in #16 comes.
    Whats the political stability such that once these foreign companies invest in the exploration,they will not lose their investments? Unlike Chavez and his dreams….
    The importance of a good constitution will avoid situations as in Darfur,where now, the investors are prolonging the war to protect their interests. eg.Petroleum China,Rolls Royce,Shell,BAE etc.
    It is the change of govt,and unclear “constitutions” that brings about all these conflicts,and not the “racism” and “tribalism” they make us believe or is it the “cleansing”.
    On Zambia’s exploration of oil etc,these are stories we have been hearing for a while.The govt should focus on policies that would bring development than stories of oil.This is not the best way to invite “investors”, considering the happening in the “niger delta” which serious explorer would invest a cent or pence in zambia? This is just some excitement and no vision

  35. Citizen your reminding the nation of the diesel from grass is a good thing. The proble is the man lied to the nation at that time. This was not posible if it was he would have done it. All what he wanted his to his research of oil and other minerals. The story didnt end there exploration was done in the whole countrs on minerals the USA guys said Zambia as no oil the same the dd to Sudan. They were aim at making them reserves. So you see Sudan gave china the chance to start ´tapping oil and this made America not happy today we have Darfur war and people are made to believe that the Sudanese are causing this crisis. Listen to the debate of the west in parliament that is when you will know the truth. Its good the LPM has after venture capital scandal told the world that Zambia doesnt need loans but direct investments. He should as well say only in partnership with local firms. The principle should be if you tell them they come and invest.

  36. #41 iwe jude i cant give you my email address mulwalala or limbi niwe DR HK te? wekamoyowe fipwile apapene.

    #38 illigal migration is a two way traffic te? mexican immigrants are getting more indukis(money)in USA and USA is getting cheap labour te? George mpanga chikopo sana and surrounded by govt beneficiaries who are *****s.

  37. Ethopia has signed an oil exploration deal worth millions of dollars with Petronas from Malaysia,and explorations in other parts of Africa are continuing like Namibia,South Africa,Madagascar,Mozambique and Tanzania.
    Ethopia would receive 5 percent from the royalties, and if production increases,so will the royalties.

  38. Big brother is watching in Zim
    Zimbabwe’s Members of Parliament has passed a law to allow the government to monitor e-mails, telephone calls, the internet and postal communications.

    Opposition MP, David Coltart called it a “fascist piece of legislation” aimed at cracking down on political dissent.

    But Communications Minister Christopher Mushowe defended it, saying it was similar to anti-terror laws elsewhere such as in the UK, US and South Africa.

    “These are countries which are regarded as the beacons of democracy,” he said.

    The Interception of Communications Bill now passes to the Senate, where it is expected to face little opposition, Reuters news agency reports.

    President Robert Mugabe’s government already faces criticism for laws that curtail free speech and movement.

    The bill obliges internet service providers (ISPs) to install equipment, at their own expense, which will allow a monitoring service to intercept e-mails.

    The communications minister will be able to issue warrants for interception.

  39. #38 SAGE, ku maamba kwaliba coal te? so common sense can tell us that oil deposites are likely to be kwahaye te? now the earth is tilted at 23 degs so drawing a line from maamba at 23 degs can extends to southern part of NW prov te? the other possibility is maamba itself. they should drill deeper and deeper beyond those coal plate. Plz sage get a tender

  40. Quite frankly this is an exciting discovery.However,we need more time to study the best and most equitable way to open this up.There are numerous suggestions being propagated and gov. will do well to apply caution.My take on this is that gov. should not have a hand in running this venture.What they can do is strenghen regulating authorities and enact water-tight frameworks beginning with the tender process right up to taxation.If we do not do this in the initial stages,we risk being short-changed by these multi-national corps.Gov. will also have to revisit the law on expatriation of Forex so we can ensure a bigger chunk is reinvested locally.We do not need to be desperate about this.One thing we seem to lack is projection for the future.Corporations in a Capitalist setting are out to maximize profits,which makes business sense.But for a country like Zambia,we need laws that would ensure that the locals benefit from such huge investments.Low paying jobs in oil companies will not do.

  41. #38 SAGE, ku maamba kwaliba coal te? so common sense can tell us that oil deposites are likely to be kwahaye (WP) te? now the earth is tilted at 23 degs so drawing a line from maamba at 23 degs can extends to southern part of NW prov te? the other possibility is maamba itself. they should drill deeper and deeper beyond those coal plates. Plz sage get a tender

  42. SAGE goog ideas Zambian should apply for tenders even those who dont have capital they should get loans from govt.This should be more Zambian. Over the new law for its not new the west are the leading in this area. From 11.09.2001 communications has been intercepted in western countries. Telecoms and ISP were told to save data for 6 mouths but now this being extended to 2 yrs. If you ask them we are not interested in the content but who contacted who. This is the only way we can fight criminality faster. So Zim is correct it has so many traitors among its nations who have betrayed that countries.If you want to contribute to bbc haveyoursay you have to give a telephone and contact adress its like this blog her I hope the will change it soon.

  43. Ba Joze mwilasabaila. Kalaleni ngatamukwete fya kulanda pali investment mu Zed. Ba Joze, your best investment limbi nimuli Shakerz or mayeu. Only chuchu can invest in the mining exploration pantu naiba nashifula nomba.

  44. Gentlemen remember the phrase “let the sleeping dog to lie”.In our case, it is easy to see that would be investors would again try to take advantage of a government that is so starved of popularity, and is in a hurry to go an extra mile in attracting investments.Im still skeptical about Chinese.We need to push for an investment policy that will treat foreign and local investors much the same way and further more tenders must be done in a more trasparent way through radio, tv flyers and credible NGOs like Jubilee Zambia to monitor or vet the selection of bidders in an open and honest way.This time anything needing ‘DISCLOSURE’IN THE LEGAL CONTRACT must be disclosed in a simplified and well understood language to all such as access, pricing,users’rights and performance bench marks.Consumer groups must be given extra teeth to say what is best for the consumers not the current Fair Trade commission which is blunt.
    Consortium of local investors will be the way to deal with this priveledge.

  45. #50 Bro SAGE, this is how i feel Zambians can contribute positively to future developments in the Zambia.
    First,it is a well known fact that the citizens of zambia have more financial assets than the govt.
    Secondly,Encourage every Zambian to have a bank/building society account,and all payments are to be encouraged through established financial systems.
    Thirdly,if the above are achieved,Banks financial base would increase,and Banks ie Indo-Zambia,Finance,Barclays,Stanbic,Citibank,Zanaco etc together with other insurance companies would form equity firms or “consortiums” that would buy out such projects. Individuals would buy “corporate bonds” that they would earn with an interest on top from these consortiums and every zambian would benefit in the long run from such projects.
    Lastly,though politics and money mix, we should separate “extremists” from such projects.

  46. Kayata 55# good keep up educating checepa Ba Joze, Kuku und those who still blind. Making a consortium is a brillant idea that is why we have a stock exchange not only to see which company is doing better and benefit just few individuals. Luse should encompass other firms. SAGE is still warding he has not yet crossed the river.

  47. #56 The difference between you Easy and our selves(Myself,AM and Joze) is we are established entrepreneurs already but you who is still in diaspora you will have difficult undertsnading what is obtaining on the ground.If I were you I would ask for leads as to where to start from.
    #55 Kayata what we actually need will be munincipal bonds for everyone.We dont want the rural areas to be left in the state they have been eversince BSA.I know financial system is biased when it comes to funding especially to local business men, preference is given to the foreign investors no wonder all our Management Buy out collapsed.Listing on the Stock exchange will be the first credible move to make while we pool other resources together.Fund Managers have alot of idle cash who can agree for deals through commercial papers.There are so many alternative pertaining to resource mobilisation

  48. #57 Kuku,muni. bonds would be ideal but what resource base do Municipalties have to sustain these bonds.Do they have a sound accountability system to ensure that bond buyers are recompensed at maturity of the bond(s).What investments would they undertake to generate income?Can we separate municipalities from the influence of government?Defaults by municipalties would only mean one thing,government stepping in with yours and my tax money.Notwithstanding this though,we can start with Toll roads in our highways.Charge a fee to transporters and motorists alike.Use that money to maintain roads.Municipalities can also pre-refund the bonds to ensure that repayment is timely.Good idea though.

  49. #56 mwaiche EASY teka bola panshi, You are talking to accomplished busness men here. I may be in USA but i own a computer company Kus “Z” and i also have a phone company here so teka bola panshi. Wilati nga wanwa shekaz wala sabaila. Mwaiche tutila twanwa dollar twa luka Dollar ku “Z”. we understand what we are talking about. Nga ndelanda at the cost of doing business in “Z” is too high its out of personal experience. Ngo lelanda nabantu read between the lines. Ulemona ati data ifumya Ba Jose kuti waisanga pa inters? Ulonfwa Kuku ngalelemba , afumya data with substance so mwaiche tekanya. Ngoli mu USA ulefwaya job landa na KC. Get connected and stop halucinating nga chuchu.

  50. Kayata.. to add to your comment on #55 In South africa its mandetory to have a bank account or you cant get paid. Its a good idea but the minimum balance is an impediment. You guys the banks are supposed to have money but what the minimum balance does is it makes the bank ride on its customers backs. The MB does not even acrue interest. Ba Jose do something about that.

  51. For your information, there was comprehensive oil exploration in Zambia in Kaunda govt/era. Mineralisaton reports for North western was found to have had high good grade of oil which could be exploited commerically. However this project was derailed due to our commitment to liberation struggle.One day, the americans and the British just left the area with all the machinery and DATA. This was at the height of regional tentions. Oil and Copper would have made Zambia more powerfull and the Western Regim just poured water on the project and moved on. The facts are that the Western world is fully knowledgeable about this oil and they have all the geological Maps.

  52. #58KC if we get the right local investor incentives going round local authority empowerment would not be an impedement in financial development.In a well regulated environment all these things are possible all we need is a listening govt in being in place at the right and appropriate time.WE should decentralise the operations of munincipalities and empower them to take advantage of investor presence for development.Clear set rules of governance will be desireable if not essential.A proper business plan in place can easily attract guarantors to secure funds and govt involvement must be kept barest minimal.KC dont forget we are local investors whose lives are wholly confined to development of Zambia and will never run away after raking in profits.What we shall make will be squarely used for Zambia’s development and not GOA or Singapore so there is evey possibility of a striking a win win deal with whoever will be there

  53. I think it`s time we Zambians stepped up and grabbed this bull by the horns.Umuchanga uyu wena wapwalala.We need to make sure Govt puts policies in place that would safeguard our interest as a nation.

  54. #59 SAGE the problem we have on this blog people want to speak theories from text books,job seekers must be honest with themselves because they dont have balance sheets to support their halucinations.This fora has come at the right time when Zambia is in dear need of investors.On a positive side Zambia has enough intelligent and wise human resource who are fully baked not the likes of Dr Lungwangwa and Co and the way we are coming into contact through this discussion , one day will put up something beyond China.Let us keep our dreams live gentleman twacula pafula let us help our brothers and sisters who have no priviledge to use a computer,get to a library,sit on a proper desk,no balck board na chalk yamaka takwaba sure after 43 years of independence.Chakana sana.Love your neighbour as you love yourself.BaJoze who is your neighbour? gk,HK,Ci Citizen?

  55. #60 SAGE actually the trend has changed, now everyone has an account because there is now ‘community Banking’ Capital Bank has opened up branches in all high density areas like kalingalinga , matero etc because this dependency syndrome on corporate culture is not yielding equity and actually they seem to be doing fine.The minimu now with Stanbic common account is K100,000 but current accounts every where is 0 bal but you pay monthly service fees of min K30,000 .So every thing is in place, muchanga fye ulefwaikwa na proper business plan.Elo when it comes to writing business plans Iam there to contribute.

  56. I need to get your personal contact #65 KUKU for us to explore this venture because were there`s a will there`s always a way.

  57. Kuku.. you have my email why dont you drop me an email may be can start some akantemba in Ndola there. what do you think?

  58. #62 Kuku,as i said in my closing remark,you have a point.Everything points to one thing,government establishing well-meaning and all-encompassing legislation.We have so much cash floating within the hands of locals and our leaders have failed to take advantage of this.I’ve been thinking that,if municipalities are to issue bonds,we can start with border town municipalities.Gov.can empower these authorities to collect 60% of revenue from duty,taxes etc and use these proceeds to issue General Obligation Bonds.The G.O. bonds would be backed by the taxing power of the local authorities,so that if a situation of default is imminent,the local authority would converge an emergency meeting to increase taxes or duty.This would be a sure way to create independence in these authorities.Alternatively,local authorities can be empowered by gov. legislation to supervise the issuance of Revenue Bonds to corporations.Like it is called,a Rev. bond is for the sole purpose of raising revenue through

  59. continued

    creating or developing infrastructure which can be leased out to corporations.The corps. would be responsible for maintaining those structures for the full term of the lease.Example,LCC can construct a soccer stadium by issuing bonds and collect revenue from gate takings.Since a Rev. bond is not backed by taxes but the infrastructure developed,regulation would be passed to hold all international matches in this stadium.Local teams would also use this stadium to max.revenue.

  60. Br kuku,Sage and baJoze You guys make me always read from this blog.I think it will be good for Zambians to have exchange of programmes as well as studies in off shore Engineering as Nigeria and Angola do with the Scottish govt. Infact Aberdeen University in Scotland does offer degrees up to PHD in Oil and gas studies with good experience placements in the North sea where students go to work to gain experience in the same fields. Sometimes there are scholarships btween companies involved in oil and gas explorations. In turn this will make Zambians be employed, empowered &have shares in this companies as Angolans and Nigerians. University of Zambia can also gain revenues from partnership with Oil and gas companies as well as with Aberdeen University.I have met alot of Angolans and Nigerians studying at Aberdeen university.many are offered employment& get same pay as their local counterparts not what we hear in zed mining. The govt must ensure that zambian are paid as foreigners.

  61. i fail to understand how some zambians think, how can we give away every source of income, very few if any zambians can afford to buy the oil reserve’s. the government should take that over and feed the people, i can see some rich investors from south africa, america and britain or china comming to milk zambia dry, then the same government will complain about unfair treatment. Learn from nigeria people are killing each other over oil and we want to give away what people are dying for, oil reserves world wide are runnig dry, this is probabaly the best source of income for zambia.

  62. STATE INSISTS ON NEW ROYALTIES

    The government says it is possible to re-arrange the mining agreements it signed with copper mine investors in the 90’s based on the same principle the investors used to get massive incentives when copper prices on the international market were low.
    Finance Minister, Ng’andu Magande says at the time, the Zambian government signed the mine agreements which offered 0.6 percent mineral royalties, mine investors claimed that copper prices were too low and that they would not make profits for 20 years.
    Mr. Magande said now that copper prices have increased from 61 cents per pound in the 90s to 320 cents per pound, it is time the agreements were re-arranged because the times have changed.
    He said this, during the World Economic Forum Zambia dinner when answering a question from a South African Lawyer, Peter Lyon who wondered if the governments demand to renegotiate the mine agreement will not damage investor confidence.
    But Mr. Magande said the gover

  63. STATE INSISTS ON NEW ROYALTIES
    The government says it is possible to re-arrange the mining agreements it signed with copper mine investors in the 90’s based on the same principle the investors used to get massive incentives when copper prices on the international market were low. Finance Minister, Ng’andu Magande says at the time, the Zambian government signed the mine agreements which offered 0.6 percent mineral royalties, mine investors claimed that copper prices were too low and that they would not make profits for 20 years. Mr. Magande said now that copper prices have increased from 61 cents per pound in the 90s to 320 cents per pound, it is time the agreements were re-arranged because the times have changed. He said this, during the World Economic Forum Zambia dinner when answering a question from a South African Lawyer, Peter Lyon who wondered if the governments demand to renegotiate the mine agreement will not damage investor confidence. But Mr. Magande said the government is not asking for something out of the ordinary. He said it is a general practice world over for governments to charge mineral royalties of three percent. Mr. Magande said the Zambian government should have put up parameters in the mine agreements to ensure that should copper prices increase, the country would also adjust incentives offered to benefit from any copper boom. He said all the government is asking for, is a mutual beneficial relationship between mine investors and the people of Zambia.

  64. Tell Mugande to put in place a plan of build a railway line with new technology instead of the old system which cause hazards to climate. Preserve nature for a good living enviroment.

  65. #68 SAGE good morning my brother,I will send you an article to your mail box and this will give an insight of what is happening in Southern Africa.
    Dont worry ,I have your email add and as Chapi says please do likewise but I would also like to be in touch with KC by mail

  66. STATE LOSES K110 BILLION
    GOVERNMENT has lost over K110 billion in irregular payments to contractors engaged by the Ministry of Works and Supply, Auditor-General, Anna Chifungula, has revealed in a special audit report released yesterday.The report titled: “Administration of selected contracts in the Ministry of Works and Supply,” says 14 contracts were over-paid by K110, 678,772,372 million because of avoidable variations that officials allowed between 2000 and 2006.“The payments of these variations and fluctuations are not a fair charge to public funds,” Ms Chifungula said. “There were other charges which could not be explained for lack of documentation on them.” Ms Chifungula explained that between 2000 and 2005, the Ministry of Works and Supply entered into contracts with various contractors but the management of the contracts was poor and therefore caused huge losses of State funds.“Consequently, contracts which could have been discharged at lower costs ended up being discharged at higher costs due to variations and fluctuations in labour and material costs and interest on delayed payments,” she said. Of the various extra payments beyond what was originally agreed, K16.8 billion was cited as unexplained charges and K1.6 billion as interest.She said the extra costs could have been avoided had the rights and obligations provided for in the contracts been complied with by both parties.In a detailed account illustrated by pictorial evidence of site inspections of unfinished and poorly done works, damaged roads and works not done at all but for which payment had been made, the Auditor-General lamented the wasteful expenditure she said was avoidable.Some of the works in question include the Chirundu road which gobbled an extra K32.9 billion; the Chitondo-Namwala road (K56 billion), and the reconstruction of the Kasama-Luwingu road (K14.9 billion).The Auditor-General also questioned the 17 months-delay in the commencement of the construction of the freight terminal at Chirundu, a situation that cost Government an additional K1 billion.“It is not clear why, contrary to the Appropriation Act, the Ministry (of Works and Supply) budgeted for an activity in 2004 which was only going to commence in 2005,” she said.“It is also not clear why commencement of the works was delayed. As a result of the delays, the contractor made claims in labour and material fluctuations amounting to K894, 118,717.” The claims were at the ruling bank interest rate.In some cases, such as the Sable Transport works on the Kasama-Luwingu road, the contractor piled up gravel on the road for a long time and when it was washed away by rains, the firm returned to claim extra payment and that was allowed.And Tarcon Construction had its tarmac works of February 2006 peeling off in less than a year because of the thinly spread-out layer.The culverts it put at several points were left blocked while others got vandalised. And in another special audit on parastatal bodies, the Auditor-General reveals glaring irregular payments on expenditure including K4 trillion which the disbanded Central Board of Health (CBoH) spent without following tender procedures.Mrs Chifungula disclosed in her 2005 special report covering the period 2005to March 31, 2006, that CBoH did violate Government tender regulations when they spent K3, 736, 484, 550 on accommodation facilities for workshops and other procurements in what appears like panic spending in the final days of the national health body whose dissolution was hinted two years earlier.”A scrutiny of records relating to purchases of goods and services and related supporting records revealed that payments made in respect of accommodation facilities on seminars and workshops were made without obtaining three competitive quotations, contrary to procurement guidelines,” Ms Chifungula said.Payments for allowances in respect of workshops and seminars amounting to K618, 687,455 were not supported by acquittal sheets and were not made available for audit, thereby violating Financial Regulation No. 156.Payment vouchers amounting to K3,108,000,968 also went missing, making it impossible to verify the authenticity of the transactions. And contrary to CBoH workers’ conditions of service that no employee should be granted a salary advance before the earlier one was fully recovered, cash advances of up to K178,907,350 were not recovered. The report also reveals that the former director-general went away with a CBoH vehicle after the board was dissolved in March last year.Mrs Chifungula also said the Medical Stores used K4,640,080,490 to purchase drugs without supporting documents such as purchase orders, invoices and goods received notes, contrary to Financial Regulation No.156.”This could therefore, not be verified.We could not obtain assurance that these payments were made on account of obligations of the Ministry of Health,” she said.Medical Stores also used K2,290,357, 853 to buy drugs that up to now had not been received and no receipts and disposal details were available.And 30 tonnes of drugs expired because of over-stocking and poor storage, costing the taxpayer a whooping K24.3 billion. “The expired drugs were not destroyed but were merely removed from warehouse and stored at the company’s premises,” Ms Chifungula said.She also observed that the fixing of the remuneration package of the Zambia National Tourist Board managing director, by the Ministry of Tourism, Environment and Natural Resources in 2005, was irregular as it was contrary to the Act.The ZNTB managing director’s remuneration was pegged at K47, 240, 000 per month, by far exceeding other chief executives of grant-aided groups within the same ministry.For instance, the Zambia Wildlife Authority director-general got K22, 306, 900 while his counterpart at the National Heritage Conservation Commission got K15, 149, 192 and lowest was the Museums Board director at K12, 250, 177.

  67. ZAMTEL PAYS K113M. TO ‘NOBODY’
    THE Auditor-General’s latest special report has revealed that the Zambia Telecommunications Company Limited (ZAMTEL) allegedly remitted over K113 million to a foreign company to pay for a half-page advertisement in the Fortune Magazine of the United States. The transaction, which was made in two equal installments to Global Business World, was carried out between May and October 2002. Auditor-General, Anna Chifungula, said inquiries with ZAMTEL management revealed that there was no evidence to show that the advertisement was published in the named magazine and that no contract was signed. In his November 2006 response to inquiries, ZAMTEL managing director stated that the company had made efforts to trace the advertising agency that was paid the money but that such efforts had been fruitless. “He stated that all the contact telephone numbers on the file were not working.The managing director further said the authority to pay was made by the director of commercial services who was no longer with the company,” Mrs Chifungula said. She said ZAMTEL also entered into an agreement with Manda Hill Centre Limited to rent Shop No. 27 A at Manda Hill Shopping Complex at a cost of US$3,656 per month.However, despite the agreement having been signed in May, 2003, the company only started operating from the shop 16 months later when it had already paid K317,153,277 (US$66,531). When asked why the company did not start operating from the shop upon signing the agreement, the managing director said the commercial department could not do so because the building was still under renovation. It was also observed that despite the Bank of Zambia’s directive that the company’s transactions be denominated in Kwacha, ZAMTEL went ahead to pay rentals in US Dollars.The special report also revealed that salaries and allowances of the National Airports Corporation Limited (NACL) managing director, directors and the corporation secretary were pegged in US Dollars.This was contrary to Government’s directive or policy on the use of foreign currency on local experts. And in 2005, when the Kwacha appreciated against the US Dollar from K4,900 in April to K4,650 per dollar in July, NACL directors requested their board in August to revise their salaries because of the exchange rate that had dropped following the local currency’s appreciation.The board accepted the request and fixed the directors’ salaries at K4, 900 per US Dollar when the exchange rate was at K4, 420.The board also gave the directors salary arrears from April 2005, to compensate for the months the local currency appreciated.This resulted in the corporation paying a total of K15,734,000 to the managing director and five other directors.The report has further observed that the corporation did not hold title to any of the airports in the country contrary to sections 25 and 29 of the Aviation Act Cap 444 of the Laws of Zambia.

  68. #70 &71 KC wonderful data with a perfect vision.Great stuff.I enjoy reading such literature.Mwaice Easy get on the job on training with the right people there in the US as ba Sage has advised you in#59.
    Your comment in #79 what are you trying to say?ucili na hangover yamailo tefyo

  69. #79 &79 Many thanks for such information,the New Deal govt is doing very well in the fight against corruption.So when LPM said 3trillion had been stolen he wasnt just dreaming it was factual and its even more than that if 4 trillion can not be accounted for alone at COBH.What a waste of resoruces,this is high profile crime, I wish Anne chifungula had powers to prosecute because involving ACC all these details will vanish in thin air.Jean where are you?You collegues must be seen to work for their money.This is a bottomless pit.Zambia has lost direction in the fight against corruption really.How can a company pay to NOBODY? Who are the external auditors for ZAmtel?Heads must roll, I hope that ex commercial director is alive,These are cases where QC Smith must be outsourced

  70. Support local investors
    THE African Continent will continue lagging behind in development as long as local investors are not given the recognition they deserve, Investment Climate Facility (ICF) chief executive, Omari Issa, has said.
    Professor Issa said this in Cape Town, South Africa when he presented a paper on ?Key Challenges in Improving Investment Climate? during the one-day media workshop attended by business editors from 11 African countries.

    He observed that despite efforts to put things right, African growth was static because of the perception by many African governments that foreign investors were better than the local ones.

    “This preferential treatment of foreign investors, even if their track records were not known, had frustrated the local investors some of whom had been thrown out of business,” he said.

    The ICF chief executive said it was unfortunate that African government officials spent colossal sums of money across the globe in search of foreign investors to attract yet there were some local investors, business entities and business individuals who could perform wonders given the necessary support and a conducive environment in which they operated from.

    “Existing investors in Africa are not being recognised. What is more worrying is the fact that African government officials are busy travelling the globe to hold conferences so that they can attract foreign investors at the expense of local ones.

    “They don?t realise that they are spending a lot of money on these trips and conferences,? Prof Issa said amid murmurs of approval from the audience.

    He gave an example of multinationals like SABMILLER and Coca Cola that had invested heavily in Africa by creating more than 6,000 jobs on the continent.

    Instead of ignoring such multinationals, Prof Issa said there was need to change the stance and engage the multinationals in discussions to know what problems they were facing.

    “Our priorities must be put right.

    We need to talk to these local investors so that we know the problems they are encountering and help them to do business in a conducive environment,? he said.

    However, Prof Issa admitted that it was hard to invest in Africa because of myriad challenges that the continent was faced with.

    He was of the view that lack of infrastructure, poor records of governance, rampant corruption, plunder of public resources, lack of electricity supply, bad investment as well as migration laws were some of the problems that hampered investment in Africa.

    Prof Issa noted that the African continent would not be on track to meeting the Millennium Development Goals (MDGs) so long as the investment impediments were not removed on the continent.

    More than 40 senior business editors from Africa had converged at the media workshop that was held in the resort city of Cape Town, South Africa.

    A day-long workshop was being sponsored by the brewing giants, SABMILLER and Coca-Cola Africa.

    It mainly focused on stimulating greater media debate around the key economic and developing challenges in African countries including local business and investment climate.

    Other topics that were covered are: The role of the media in development, Business and Economic reporting, Investment and development, and making Africa a better place to do business.

    Among the seminar facilitators were SAB-UNESCO chair of Media and Democracy and acting Head of School of Journalism and Media Studies at Rhodes University, Prof Fackson Banda.

    [Times of Zambia]

  71. #34 KUKU
    While most of your contributions are logical and insightful on this subject, your diesel from grass is based on rumours and not facts.

    The facts are that the diesel from grass was not in Chama, but in Chiawa in the lower Zambezi and the grass was not star grass (imisanse) but elephant grass.

    Oil exploration in Chama was done by a an American company called placid oil.This exploration was as a result of the locals observing that two streams constantly showed traces of oil and reflected light prism in different colours. The government hoped that this might create economic drought in Chama due to the failure in Agricure as a result of continous drought.

    After the project was abandoned the rumour mill becames active that emeralds had been taken away.
    As always it was rumour and not fact

  72. Iwe ci Citizen thanks for the correction but read what your blood govt(New deal) is doing interms of stealing.Ask paparazzi.Elephant grass is what is imisanse iwe Ci Citizen without fixed abode it was just slip of the hands.All your efforts went to fight FTJ when on the other hand people helped themselves to trillions.LPM’s rule has recorded the highest corrupt in the history of Zambia.Are you still doubting that Levy ayitaya?

  73. #78 #78 papparrazi well done, no doubt you are a proper papparrazi. Those ladies at ZNTB and NACL get a lot of cash with little to show for it. look at our international airport,so disgusting, an eyesore. ZNTB where do they market Zambia, i have never seen a single advert about my country in the UK. We dont push these people to earn their money (not attending workshops for days on end). Just like soccer coaches, they should be fired if they are not winning.

  74. Kuku84# plz take your time I know you are like lice who hold on to a dying horse. Your uncle FTJ is making the last kicks tell him reveal the benefinaries of tenure of office we all them to answerable. The new deal saw you to be UK where you are now. In the past you would have chance of going that far you would ended up Kaponya. So on serious note Kuku who do you think can succeed PLM? Hu This time no nabula fwe those who were ajacket under a tone shirt with only colar. 85# ZNTB has no vision that is why most things bypassed them. One thing should have to knów we have to accept change as time revolves. Not kwilaika fwe mu office and kulalashika.

  75. #86 Mwaice Easy point of correction, Iam in Ndola,so if Ndola is UK to you then its most unfortunate.Iam still not impressed with your sentences, dont rush when writing and as such Iam struggling to understand your reasoning.Even your bemba is like punjabi what is wrong with you?Stop thinking in your language then translate to English, think and write english.
    Have ever taken time to read the bible? Read Proverbs 11:17
    “Those who are generous are their own BENEFACTORS” MEANING a generous person is the one who thinks of others, the one who helps without expecting anything back, the one who can forgive without resentment.

    If you cant understand this mwaice Easy come back? How old are you by the way? Your analysis is not fit for this blog,its rather shallow and boring, take time to select what to write on this blog.If you are at school, then you are on the wrong platform.Was your father a Minister in KK era? If you want to engage me in any discussion please write sense otherwise NO

  76. #86 seriously ulekwatako respect and start to debate intelligently. your contribution is so incoherent,go and get yourself a job.

  77. If HH did not hijack UPND Saki would be president today. It’s too early to tell who is going to be Presida. Look at the political dynamics. Before Andy died Sata failed to capture the minds of most people in Lusaka. If Saki was president and HH his vice, SP, WP and part of NWP would have gone to UPND. Lusaka would be the battle ground with PF sharing the city limits with UPND while MMD taking chongwe for obvious reasons. PF would scoop NP, LP and CB. With less negative publicity on UPND, EP could be for grabs, factoring in the alliance between UPND and FDD. A Lozi being president, well they lost a golden opportunity in 2006. If MMD chooses a Lozi to replace LPM. MMD will lose EP. If for instance they choose a bemba in the name of Capt Chewe. He will cut tremendously into PF’s stronghold while at the same time loosing traction in Central and NWP. If they choose Ronnie, chances are they will maintain CP. EP and WP will be up for grabs which might go HH’s way. The best bet is HH join which is highly unlikely. We don’t know who is running and who might die God forbid, but that’s life.

  78. Kuku87# that is Zangilish I hope u understand. Are you buying shares in the new mining com´pany or you have not interest. You stakeholder have much to say and save the direction of a company. If a company is is profit oriented then you can make a bit of dividends to pay your online bills without troubles

  79. #89 SAGE.Zambia has past the stage of electing a leader based on their respective tribe.Whoever has their name floated on such a platform will absolutely have no chance of getting to plot 1.With the creation of such forum as lusakatimes blog there`s no way a tribalist can gain any votes among the literate.People can say that we already have a president that got majority of his votes from villagers(abenamishi)but that`s now history and it won`t ever happen in Zambia again if we have political thinkers playing their cards right.SATA missed a golden opportunity during the 2006 elections when he neglected NW,E,Western and Southern Provinces and just concentrated on 5 povinces.It`s going to be hard for SATA to create the kind of euforia he did.HH hasn`t proven to be in touch with reality and the tribalism tag still hovers over his head but if he could learn a few communication skills from Shi Chilufya(SATA)& he could be a force to be reconed with.Some attention needs to be paid to Nawakwi..

  80. Chapi92# Good tell them Zambia is no longer divided its on paper. Thank of national services training which people finding themselves in Katete all the way from kwa Bulozi. People have intermarried. Even the education system under Kaunda some one from Luwingu would find himself in Lusangu secondary school. Government employs used to stay only two years in one district.So all we need a president who be of intellectual, not thief, ocnfident, self motivated to serve the nation, eradicating poverty and hunger. Improve living std of jim adn jack. A president would deversifify the economy, a leader with zeal to lead the nation in peace and empowering Zambians. A president who is creative and proactive. A president who will listen to the pipo who will give vote to rule. A non tribalist. Commiitted to deliver. This must include mininsters and MPs who are willing to serve its people not those whó will wait for years transform economy reforms. This group who must focused.

  81. Chapi and Easy dream on.. last what does the results of last years election tell you? Did you ever hear that HH is campaigning in Malole? Learn to seperate reality from fiction. Zambia is as polarised certain tribes dont trust other tribes to realy serve their interests. This is where FTJ really failed. every group of people now are trying to float a candidate. what you guys think is the ideal Zambia that we all wish for. But we are not yet there.

  82. STATE TO DISCUSS PROPOSED INCREMENT OF MINERAL ROYALTIES WITH MINING FIRMS
    PRESIDENT Mwanawasa has invited chief executive officers of mining firms doing business in Zambia to State House for a meeting to discuss the proposed increment of mineral royalties.President Mwanawasa said he had invited the top mining officials to discuss their opposition on the proposed increment of mineral royalties from the 0.6 per cent to three per cent.The President said this during the Zambia dinner hosted at the World Economic Forum on Africa in Cape Town on Wednesday night.
    He was responding to a question from South African lawyer, Peter Lyon, who wanted to know how Zambia was dealing with contractual negotiations affecting mining firms.Mr Mwanawasa said so far, the mining firms had in principle agreed with the Government’s intention to increase mineral royalties.“Soon a team of Government officials and their counterparts from mining firms shall meet to draw up new rates of mineral royalties,” Mr Mwanawasa said.And Finance and National Planning Minister, Ng’andu Magande, said Zambia had abundant minerals and yet 100 years after mining started, most Zambians still lived in poverty’.“We do not want Zambians to continue wallowing in poverty in the next 100 years when they have mineral wealth,” he added.He explained further that at the time of privatising the mines some six years ago, copper prices were low.“When privatising, the price of copper on the world market was US 61 cents per pound weight. The price has since increased to the present US 320 cents per pound weight. This is why we are saying the mineral royalty should increase to benefit our people,” Mr Magande said.He said already, this year’s Budget reduced a number of taxes for businesses, including the mining firms.
    Mr Magande said the proposed increment in mineral royalty was not peculiar to Zambia alone as South Africa had done the same this year by upping the rate to two per cent.Mr Magande disclosed that China has agreed to cancel Zambia’s debt of more than US$500 million used to construct the Tanzania-Zambia Railway Authority (TAZARA) 30 years ago.He declared that Zambia was now free of external debts following China’s goodwill gesture to write-off the TAZARA loan.Mr Magande said so far, all the debts Zambia owed to external lenders amounting to more than US$ 7 billion had been written off.“We’re grateful for this gesture as money to be saved from servicing the debts will now be channelled to improving the living conditions of the Zambian people,” Mr Magande told business leaders.

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