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Second oldest pharmaceutical manufacturing company in the Indian State of Goa, Medizest Pharmaceuticals Private Limited, has expressed interest to invest in Zambia.
Company Director Anurag Agrawal said the company has since been registered in Zambia as AMPL Zambia Private Limited to distribute medicine such as eye drops, injectables, tablets and creams for pain relief, anti -malaria, anti -fungal, anti -bacteria and anti -biotics.
He said Zambia Medical Regulations Authority has already approved 8 of Medizest Pharmaceuticals Private Limited’s 21 products submitted for registration in the country.
Mr. Agrawal said Medizest will urgently engage a Zambian importer in the immediate term as the company planned to start, within a year, the construction of a pharmaceutical manufacturing plant in Zambia to reduce the cost of importing medicine.
This came to light when Zambia’s High Commissioner to India Judith Kapijimpanga toured the pharmaceutical manufacturing company in the Indian State of Goa, 2000 kilometres away from the Indian Capital New Delhi.
And Mrs. Kapijimpanga said Goa had determined investors such as Narayan Bandekar who built a pharmaceutical manufacturing facility at Lusaka South Multi Facility and Pankaj Jain of SAFAL running a manganese factory in Serenje.
She said Zambia is ripe for investment in the manufacturing sector in line with President Edgar Lungu’s vision to take health care services as close to the people as possible within the continuum of care,” she said.
Mrs. Kapijimpanga said Zambia had enough skilled man power for the pharmaceutical industry as many were trained locally and abroad in countries such as India.
This is contained in a statement released by First Secretary Press and Tourism at the Zambian Mission in India, Bangwe Naviley.
File:Construction workers conducting maintenance works on the G4 unit, which failed to generate power after rehabilitation. The loadshedding schedule has been extended
The Centre for Trade Policy and Development is concerned with the recently pronounced decision by Power Utility Company Zesco to commence daily four-hour load shedding starting from June 1, 2019 due to low water levels in the major water reservoirs in the country.
CTPD Executive Director Isaac Mwaipopo says this development will contribute to further economic deterioration.
Mr. Mwaipopo says it is sad that this is happening at a time when Zambia should be making all efforts to find ways and means to resuscitate the ailing economy.
He noted that the biggest casualties when this happens will be the Micro, Small and Medium Enterprises whose businesses are highly dependent on a steady supply of electricity because they do not have adequate capacity to easily switch to other sources of energy as compared to larger businesses.
Mr. Mwaipopo added that an immediate consequence of this will be a reduction in productivity in these businesses, which will further result in even slower economic growth of the country, given the significant role played by small scale businesses in job creation and income generation.
He said in addition, the expected loss of business due to load shedding will most likely push the business to consider laying off some workers as a way of meeting losses.
Mr. Mwaipopo said the commencement of load shedding will, therefore, further divert the economy away from the path of economic recovery adding that the effects of this move are likely to be worse than that which was experienced in 2015 when Zambia had a similar experience.
He reiterated that the situation Zambia finds itself in now raises more anxiety and has urged government to seriously consider relooking at its energy sector investment strategy as the current investment strategy does not seem to be yielding results in helping the country to avert the effects of power deficits triggered by poor rainfall.
Mr. Mwaipopo said one alternative will be to consider investing heavily in solar energy adding that Biofuels as a source of energy could be another alternative the government should consider investing in.
He said these alternatives will not only be cheaper but will also be more sustainable.
Mr. Mwaipopo has also recommended that for ZESCO to consider strategically implementing the daily four hours of load shedding in a manner that will not affect business for the MSMEs.
He noted that it will save no purpose to load shed the places where business takes place during the busy working hours when production is expected to be at its peak.
Lusaka’s bus commuters were left surprised by top Zambian rapper Chef 187, when he treated lucky passengers to Hungry Lion’s Big Boss burgers made with 100% pure local chicken fillets. Some lucky commuters travelling on the city’s busiest bus routes got to celebrate International Burger Day with Zambia’s favourite quick service restaurant, Hungry Lion.
Hungry Lion country manager, Busu Mpepo said the collaboration with Chef for International Burger Day on 28 May gave the restaurant chain a chance to bring great food, fun and laughs to commuters in Lusaka.
“Hungry Lion and Chef are a perfect match because the appetite for great food and good times go hand in hand across all 35 of our stores nationwide. Nothing highlights the Hungry Lion experience more than sharing generous portions while having a good time and making our customers smile,” Mpepo says.
Celebrating International Burger Day with commuters was Hungry Lion’s way of giving the public a chance to not only enjoy the Hungry Lion meals that Zambians love so much, but also to experience the quick service restaurant’s sense of fun and community that defines Hungry Lion, making it a firm family favourite.
The city’s bus drivers were also winners as Chef, taking to popular bus routes, including Matero, Chawama and Kabulonga, treated them to delicious Hungry Lion burgers after completing fun challenges. Chef, currently enjoying airplay with the hit song ‘Tuleya Tulekula’, said it was exciting to see Hungry Lion engage and celebrate International Burger Day with Lusaka’s commuters.
He added that Hungry Lion’s International Burger Day initiative used food, fun and generosity to bring people together, something that is synonymous with the brand’s SHARE MORE values.
Bloomberg reports that the spread on the Zambia’s $750 million of debt maturing in September 2022 rose above 2,000 basis points this week. At 22%, the yield was 20 percentage points more than U.S. Treasuries of an equivalent maturity.
According to Bloomberg, these are levels almost unheard of in the bond world. Only nations already in default, such as Venezuela, have dollar spreads and yields as high as Zambia’s. Argentina is in the second-worst position among emerging markets still current on their Eurobonds, according to JPMorgan Chase & Co.’s indexes, and its average spreads are roughly half Zambia’s.
The report went on to say that it would be a bold move for any investor to buy Zambian assets. Moody’s Investors Service last week downgraded the country to Caa2 — eight steps into junk. The economy is forecast by the International Monetary Fund to grow 2.3% in 2019, the slowest pace in more than two decades, and reserves have fallen 50% in the past three years to just $1.4 billion. The government’s attempt to seize copper mines from Vedanta Resources Ltd. has only added to investors’ unease.
“Investing in Zambia’s high-beta Eurobonds is fraught with default risk,” Gregory Smith, a fixed-income strategist at Renaissance Capital, wrote in a note on May 24. “We do not think the government will default on the Eurobond coupons in 2019, especially as half the $237 million of coupons due in 2019 has been paid. However, recent events do increase the probability of default in 2020 and in subsequent years.”
Some investors think prices are cheap enough to justify the risks. The 2022 bond rose 3 cents to 65 cents on the dollar as of 12:33 p.m. in London, reducing the spread to 1,837 basis points and the yield to 20.4%. Zambia’s $1 billion of 2024 securities climbed 2 cents to 66.
“High Eurobond yields, or market pressures, would never be enough. For government to stop signing new loans and cutting ribbons on new infrastructure projects, they would need to feel domestic economic and political pressures.”
Zambia probably needs a combination of an IMF bailout, a credit line from China’s central bank, and a restructuring of loans from Chinese lenders for the government to avert a debt crisis, according to Smith. He estimates a recovery rate of between 60 and 74 cents on the dollar if President Edgar Lungu’s administration does default, which it has repeatedly said it can avoid.
Finance Minister Margaret Mwanakatwe told state TV Wednesday that Zambia had made progress in talks with China to convert dollar debt into yuan. She also said the Zambian and Chinese central banks were working on a memorandum of understanding, without giving further details.
“It would take rising domestic pressures to shift this government from complacency to urgency,” said RenCap’s Smith. “High Eurobond yields, or market pressures, would never be enough. For government to stop signing new loans and cutting ribbons on new infrastructure projects, they would need to feel domestic economic and political pressures.”
Here Are the Facts Just the Facts And Nothing But The Facts!
By Sunday Chilufya Chanda
INTRODUCTION
We refer the recent News Diggers editorial under the sensational caption “Why do we tolerate Bemba-Sponsored tribalism in Zambia”.
As for The Editorial of 28th May 2019, careless and reckless doesn’t even begin to describe the editorial referred to in this response. I do not want to believe that it was written out of a misplaced altruistic sense of obligation to “balance” the tribal legacy of a certain opposition political party frequently associated with tribalism.
Nevertheless, how does the ranting of some possibly misguided irrational cadre warrant such an alarming headline and judgmental article , written with the express intention of tainting a combined ethnic grouping of millions people? Making such sweeping statements, jumping to conclusions and the practise of such logical fallacies is not best journalism practise and certainly not expected of such an experienced and otherwise respected media house.
Having said that, I wish to reaffirm that tribalism has no place anywhere in the 10 Provinces of Zambia. It can be a highly emotive and volatile subject, and we all have a responsibility to confront it without escalating it by speaking the truth with love. Truth and fact are on the same side.
Fact dispels fallacy. The following empirical data covering Presidential elections since 2001 from “Bemba Provinces” and the main opposition “stronghold” dispel the assertion of any “Bemba-Sponsored tribalism” in PF or outside PF. On the other hand, a pattern of tribal sponsorship being practiced by a certain opposition political party is irrefutably established.
2001 Luapula Province
The UPND was established in 1998 and the 2001 elections the party contested and its maiden candidate was founder the late Anderson Kambela Mazoka whose roots were in Monze, Southern Province. 2001 also saw the late Benjamin Yoram Mwila a.k.a “B.Y” a business mogul and indigene of Luapula who had businesses spread across the Copperbelt and Lusaka. It was also former late Michael Chilufya Sata’s debut Presidential contest.
President Levy Mwanawasa, another newcomer who took over the MMD mantle from President Fredrick Chiluba won the overall election in Luapula beating Bembas in their own territory. The following were the results in Luapula Province Levy Mwanawasa 71,509 and 53.3%7 of the vote, BY Mwila was second with 20,998 representing 15.67% and Mazoka of UPND came 5th with 5,674 (4.23%) edging Bemba speaking Michael Chilufya Sata into sixth place with 4,832 votes (3.61%).
In certain constituencies like Chembe apart, from giving Mazoka first place, the people of Luapula gave Mazoka more votes 767 (16.64%) than they did to all their fellow Bemba tribesmates combined; BY Mwila 247 (5.36%) Nevers Mumba 257 (5.58%) Michael Sata 29 (0.63%), Konie 21 (0.46%). In fact in Chembe Constituency non-Bembas i.e., Mwanawasa, Mazoka and Miyanda in that order took the top three positions in the Presidential poll with 2,137 (46.37%) 767 (16.64%) and 545 (11.82%). Where was Bemba Sponsorship?
Overall the people of Luapula that year also gave more votes to Mazoka than the following “Bemba Speakers” Dr Nevers Sekwila Mumba then of NCC 3,020 (2.25%) and the late Dr Gwendoline C. Konie of SDP 666(0.50%). Where was “Bemba Sponsorship”?
2001 Northern Province
Non-Bemba Mwanawasa was the run-away winner with 82,867 (42.01%) another non-Bemba speaker the late General Christone Tembo with 24,823 (12.58%). Although UPND’s Mazoka with 8,888 votes (4.51%)was behind the late B.Y Mwila 18,424 (9.34%) and the late Michael Chilufya Sata 15,781 (8.00%) the Southern Province “outsider” was better received by the people of Northern Province than they received their own tribesman Dr Nevers Mumba 4,423(2.24%) and kinswoman the late Mama Gwendoline Konie 1,351 (0.68%). Curiously, Mwanawasa the non-Bemba topped all constituencies and Mazoka from Southern Province even topped all the six Bemba Candidates in some Northern Province Constituencies like Chilubi. How “tolerant” were the Bemba voters? Where was the Bemba Sponsorship?
2001 Southern Province
Overall, Mazoka with 172,253 votes (70.93%) had a clean sweep of the Province. Mwanawasa of the then ruling MMD was a distant second with 36,068 (14.85%), B.Y Mwila in 6th place with2,784 (1.15%) scored the highest among the Bemba Candidates. Nevers Mumba received 2,227 (0.92%) while the late Dr Konie received 1,375 (0.57%). The late founder of the Patriotic Front and eventual 5th Head of State Michael Chilufya Sata was given 790 votes (0.33%) out of 242,848 votes cast and he emerged 11th out of a field of the same number. Was the favour returned in terms of the “tolerance” for “outsiders” levels in Luapula and Northern Province?
2006 in General
The UPND founder Mazoka unfortunately passed away in 2006, and Mr Hakainde Hichilema took over the reins in controversial circumstances blighted by tribal rhetoric. UPND at the time was a member of the United Democratic Alliance (UDA) which was an alliance of 3 parties that sought to field one candidate to wrest power from MMD at the 2006 polls. Mr Hichilema, the inexperienced green horn contentiously put himself ahead of the more experienced FDD leader Edith Nawakwi (again…where was the Bemba sponsorship) and UNIP’s Tilyenji Kaunda who was the Chairman of the UDA Alliance and President of UNIP, Zambia’s oldest party. He stood on the UDA ticket.
In Northern Province, more than 50% constituencies gave Mwanawasa the top vote. In some constituencies Hichilema – another non Bemba( Southerner)even came second to Mwanawasa after he received more votes in Isoka East 1,515 (11.25%) and Isoka West (1,758) 13.90% than the PF Patriarch Mr. Michael Chilufya Sata 1101 (8.17%) and 1,570 (12.41%) whose Chitulika village in Mpika was just a little over a three and a half hour drive from there (263.1 km), compared to Mr Hichilema’s village in Monze which is at least a 15 hour drive(1,095.9 km).
Meanwhile, in Monze Central, Hichilema swept 19,785 (83.10%) of the vote while the late PF founder only received a paltry 557 (2.34 %) Who was not tolerating who?
2008 In General
The 2008 generally took the same trend as 2006.
Hichilema/UPND got an overall vote tally of 506,763. Of these votes 266,754 came from one region representing 53%; who is sponsoring what?
The People of Zambia ushered President Michael Chilufya Sata and the Patriotic Front into office with 1,170,966 votes spread across the country.
2015 Luapula Province
In the 2015 Elections, UPND came second to PF in Luapula Province; Hakainde Hichilema got more votes in Luapula Province than the combined vote tally of Dan Pule, Nevers Mumba, Edith Nawakwi, Eric Chanda, Elias Chipimo and Peter Sinkamba. These candidates from Provinces that have Bemba speakers collectively received 4,495 votes; which was less than even 50% of the 10,493 votes Mr Hakainde Hichilema of UPND amassed. Where does “Bemba Sponsorship” come in? If there was “Bemba Sponsorship” would Mr. Hichilema have received the votes he did? In fact in Reverend Dan Pule’s home town of Samfya he mustered 262 votes against Hakainde Hichilema’s 2058. Where is the “Bemba Sponsorship”? Who is “tolerating” who?
Meanwhile in Hichilema’s home town of Monze, Reverend Pule received a paltry 11 votes against Mr. Hakainde’s 42,182. Who is “sponsoring who” and who is indeed “tolerating” who?
Muchinga 2015
Muchinga was no different. Chinsali in the heart of Bemba is the home of many a Bemba luminary including renowned freedom fighter, the first Vice President of the Republic of Zambia from 1967 to 1970, one of our nation’s distinguished patriarchs and eminent Bemba tribesman the late Simon Mwansa Kapwepwe. To put things in perspective, the combined total of the Bemba candidates; Elias Chipimo Jr. (100) Eric Chanda (44) Daniel Pule (41) Edith Nawakwi (18) and Peter Sinkamba (4) was barely half of what Hakainde Hichilema received in the same area! If there was “Bemba Sponsorship” or tribalism would this have been possible? Who is tolerating who?
Southern Province 2015
In the meantime in Monze district the UPND leader’s hometown, he received 42,182 votes, while the man from Chinsali Dr Nevers Mumba received 92 votes! The total votes cast for all the 6 Bemba speaking candidates i.e. Chipimo,Chanda,Pule, Nawakwi and Sinkamba in Monze District was 407! The combined vote of 6 Bemba candidates was less than 1% of Mr Hichilema’s Vote! The overall Provincial tally followed a similar pattern. Who is not tolerating who?
As for 2015 results by the selected Provinces.
Mr Hichilema got 272,182 out of 299,546 which was 91% of the vote. The Bembas received insignificant votes which would need a viewing aid such as a microscope or magnifying glass to view on a pie chart such as the one above.
Bembas in Luapula were well off the pace even falling significantly behind Mr Hakainde Hichilema of UPND
Bembas in Northern Province did not vote for fellow Bembas
Newly created predominantly Bemba-Speaking Muchinga Province did NOT vote Bemba
2016 Luapula
President Edgar Chagwa Lungu and PF won with 205,770 votes (81.9 %). As for Bemba candidates the voting trend continued. 4 Bemba candidates only managed a combined total of 5,932 votes out of a total number of 251,224 votes representing a measly 2.4% of votes in Luapula while on the other hand Hichilema of UPND scored 35,929 which was 14.3% of the total tally.
2016 Southern Province
Out of 575,354votes cast, 4 Bemba candidates (Chishimba, Nawakwi, Sinkamba and Mumba) only received a combined 2,464 votes which is less than even half of one percent (0.4%) of the total votes cast. Hakainde Hichilema an indigene of Southern Province got 527,893 votes (92%) while PF candidate President Edgar Lungu in second place in the province garnered 42,909 votes (7%).
Hichilema’s vote in Southern Province accounted for 30% of his national vote of 1,760,347
CONCLUSION
The preceding information no doubt illustrates that there is no “Bemba-Sponsorship” of tribalism. However, there is cause for concern for high intolerance levels of other tribes in a certain opposition party’s strongholds. Perhaps News Diggers could follow it up?
Zambia’s Ambassador to France Dr. Christine Kaseba-Sata
FRANCE’s leading wind and solar energy company ENGIE, has pleged to install ten (10) more mini-grids (PowerCorner) in Zambia.
The company inaugurated its first PowerCorner in Zambian’s Chitandika Village in Eastern Province on 3rd April, 2019, an event witnessed by ENGIE’s top management and the Energy Minister, Hon. Mr. Mathew Nkhuwa.
ENGIE is a French Multinational utility company which operates in the fields of electricity generation and distribution, natural gas, nuclear and renewable energy and a leading wind and solar energy company in France.
And Zambia’s Ambassador to France Dr. Christine Kaseba-Sata expressed gratitude and called for more French investment in the energy sector and off-grid solutions.
Ambassador Kaseba-Sata was encouraged by the number of French companies pouring into the energy sector of Zambia and urged the company to continue on their expansionary plans especially in the rural areas.
“As you may be aware, our development agenda is guided by the Seventh National Development Plan (7NDP) which has placed the energy sector as an enabler and important sector to economic development. I am happy that you are considering plans to expand your business in Zambia and I’d like to state that there are more opportunities in the off-grid solutions as this is the area that remains unexploited”. Ambassador Dr. Kaseba-Sata said.
Speaking when he paid a courtesy call on the Zambian Envoy at the Chancery, ENGIE Africa’s Chief Innovation and New Business Officer, Mr. Raphael Tilot expresses enthusiasm of the company’s investments in Zambia and disclosed that his company had sold 90,000 home solar kits that had continued to change many people’s lives especially in rural areas.
“ENGIE’s new mini-grid in Chitandika provides energy to 378 households translating into 1,500 inhabitants which earlier lacked access to electricity and I am happy to state that this facility has enhanced the local businesses and supports public services such as a health centre and two schools. for us, as a long term investor, Zambia is a country where we would like to do investment and expand” Mr. Tilot explained.
Mr. Tilot added that the current PowerCorner was expected to promote economic development in the village by enabling other electrical productive uses such as water pumping for agriculture use, carpentry and welding machines, and by triggering business opportunities for entrepreneurs in the village.
Earlier, the Ambassador held trade talks with Mr. Thomas Verhaeghe, Managing Director of InnoVent, another French company that has partnered with the Copperbelt Energy Corporation (CEC) to develop a total 40MW solar plants under the GET FiT Zambia Programme to be located in Garneton North (20 MW) and Garneton South (20MW).
The Ambassador was happy that InnoVent had partnered with a Zambian company to undertake huge solar investment in Zambia as this partnership would ensure local transfer of skills and technology.
The Ambassador noted therefore that Zambia’s Republican President, Mr. Edgar Chagwa Lungu has continously underscored the urgent need to increase electricity generation using alternative sources of energy.
Dr. Kaseba-Sata further urged the company to consider venturing into waste to energy and work tirelessly and stick to their timelines. The solar plants are expected to be commissioned by end 2020.
Minister of Mines and Minerals Development Richard Musukwa has assured Zambians, the international community and investors that Zambia is still a favorable destination for investment in the mining sector.
Mr Musukwa has stressed that the mining sector will remain private sector driven.
He says Konkola Copper Mine (KCM) is an isolated case which has been triggered by failure to comply with the law and issues surrounding KCM should not be used to dent the good image of Zambia.
He adds that the case should instead be used as a signal to other mining companies not complying with the law to put their houses in order.
The Minister says government will not allow investors to abuse Zambians and violate laws that protect investments.
Mr Musukwa says government will continue to use dialogue as a means of reaching amicable solutions and work with investors who mean well for the country.
He says investors will have a fair share from their investment as long as they do not break the law.
Mr Musukwa said this in Lusaka during a meeting held with Mopani Chief Executive Officer Chris Vermeulen.
The Minister urged Mopani to continue working with government in resolving issues surrounding the shaft and offer solutions to safe guard equipment of locals and contractors.
And Mr. Vermeulen assured the Minister that Mopani will continue working with Government and key stakeholders to make sure there are no job cuts.
Mr Vermeulen said Mopani is currently working on infrastructure which will improve production and local contractors will be given a platform to grow.
He cited the new concentrator project in Kitwe which is at 61 percent and the Henderson shaft in Mufulira which is at 98 percent complete respectively.
PF Deputy Secretary General Mumbi Phiri (l) raises the party symbol as Vice President Inonge Wina (r) Looks on arrival at Mongu Airport for a two-day working visit to inspect government developmental projects in Western Province
PF deputy secretary general Mumbi Phiri has withdrawn her recent statement where she threatened to reveal names of some ministers allegedly destabilizing the party.
In a statement today, Phiri stated that the party had resolved during Sunday’s central committee meeting to “always sort out our issues as a party internally and not on media”.
“The Mighty Patriotic Front party and its entire membership is solidly behind the able leadership of His Excellency the President of the party Mr Edgar Chagwa Lungu who is also the Republican President.
The Central Committee which is the supreme organ of the PF party sat on Sunday the 26th May, 2019 and discussed a very serious matter of National and party unity.
The matter of the perceived Ministers undermining the President was amicably resolved and we were happy as Central Committee to reach an understanding that we are all solidly behind the Able Leadership of our beloved President Mr Edgar Chagwa Lungu.
We further resolved to always sort out our issues as a party internally and not on media. Therefore, I would like to sincerely withdraw my sentiments on the unnamed Ministers unreservedly,” Phiri stated.
She stated that the Secretariat would endeavor to unite and instill a sense of oneness, love, hardwork, tolerance, genuine forgiveness and reconciliation amongst party members at all levels of leadership.
“We take responsibility of uniting the general membership of the party so that we approach 2021 as a powerful united force to deliver the inevitable victory for our beloved party,” stated Phiri. “May the Almighty God our saviour bless Mother Zambia in Jesus’ name.”
Africa has been abused. It has been exploited. It has been impoverished by both colonial powers and now, our own ruling class, whom we have entrusted with power to get us out of poverty.
NEW HOPE FOR AFRICA
Africa shall become the world’s leader not far from now. We are already classified as the world’s richest continent and rightly so. We are already credited with the fastest growing church in the world. We are already credited with the fastest growing youth population. All the fundamental pillars that make a people to succeed are in place. The greatest deposits of minerals and precious stones are here in Africa. Africa has abundance of water, great landmass for agriculture and a vibrant workforce hungry for work. All this resource is surrounded by fauna, beauty and priceless tourism attractions.
Besides all these gifts from God, we have endured pain, depravation, hunger, poverty, disease and lack of equitable development. We have paid our price. The prison sentence of pain must now come to an end. Scripture says, “Weeping may endure for a night but joy comes in the morning.” Africa, our morning is at hand.
MAKING AFRICA GREAT
It is time that Africa took charge of her own economy. Africa is endowed with resources unmatched by any other continent on earth. We have vast reserves of gold, diamonds, copper, cobalt and emeralds of all shades. We must own these resources by adopting the unpopular policy of Donald Trump. Instead of America, we must say, AFRICA FIRST. This means that all our resources shall be managed by us.
The London Metal Exchange has no business determining the cost of our minerals here in Africa. The United Kingdom does not even have a single copper mine. To put Africa first, we must be courageous enough to create a single economic market to determine how we value our products.
It is time that Africa wrote her own books. It is time that Africa printed her own business cards. It is time that Africa sang her own songs, and I must add that it is time Africa paid her own bills. The new leadership shall demand a proper place for our continent. That is in front of the line of the continents of the world.
The stories of overcoming all odds are painted across history. In a shocking upset, young David of the bible defeated Goliath. In the recent past, Liverpool football club stunned the world by beating Barcelona when all hope had been lost. Such is life. Africa’s looming upset of the status quo is at hand, but we must invest in a leadership of morality and integrity for this to happen.
Dr. Nevers Sekwila Mumba
President,
Movement for Multi-Party Democracy
Last week, the Zambian government applied to place Konkola Copper Mines, the country’s largest private employer, into provisional liquidation. Is this a sign that an increasingly desperate government, starved of resources to pay the salaries of a burgeoning civil service and of cash to meet the international debt it has rung up in record time, is thinking of nationalising the mines? After all, Zambia has been here before — and with devastating consequences the last time around.
Four-fifths owned by Indian commodity tycoon Anil Agarwal’s Vedanta and the remainder by the government-controlled Zambia Consolidated Copper Mines Investment Holdings (ZCCM-IH), Konkola Copper Mines (KCM) is Zambia’s largest PAYE provider with more than 13,000 workers at its mines at Nchanga and Konkola.
It has invested more than $3-billion into these facilities since its acquisition of a majority share after Anglo American’s withdrawal from the project in 2002, including sinking a deep shaft in the Chililabombwe ore body in 2006, commissioning a new smelter in 2008 and opening three new concentrators between 2010 and 2012.
Whereas KCM’s lack of productivity had made it one of the biggest contributors of the daily $1-million loss of the mines before ZCCM’s privatisation in 2000, now it contributes usually about one-fifth of Zambia’s 800,000-ton annual copper production.
This means that the only likely rescuers are the Chinese. But the question is, at what cost?
In explaining the liquidation application, President Edgar Lungu’s government cited breaches of KCM’s operating licence and its financial position. But there may be more sinister motives related to Zambia’s precarious debt situation.
In 2005, Zambia’s debt had largely been forgiven. Today, however, the country is once more in it up to its eyeballs, and the government has no plan to stop spending. External debt, at the end of 2018, has increased to $10.1-billion, of which about $3-billion was in Eurobonds, $1.8-billion multilateral and $2.9-billion from China (mainly Exim bank). Since then Zambia has announced a further $1-billion from the Chinese, while there are other ongoing contracts which are committed, but not yet disbursed.
As external debt payments ramp up to be larger more-often-than-not to inflows, Zambia’s foreign exchange reserves have declined since 2017. External debt service is up by 90% in 2019. There is no way out, apparently, from these debt challenges without an IMF programme or another credit line, or both. This explains why the kwacha has recently broken through the psychological K13-$1 margin for the first time since 2015, making it the world’s second-worst performing currency in 2019.
There are other negative events. The seasonal drought promises a poor yield for farmers, while Kariba Lake has dwindled to 2014/15 levels, in part because of low rainfall and in part because of the irresponsible use of new turbines by both Zimbabwe and Zambia, which promises power cuts and productivity losses.
An IMF deal is currently unlikely. The Zambian government kicked out the IMF representative Alfredo Baldini in 2018, and there’s no good way to negotiate without a resident representative in place. Moreover, the IMF is unlikely to change its view that the government of Zambia needs to stop spending and borrowing, especially from the Chinese, which they won’t do. A pandered-to and fully-stuffed civil service, and rents from infrastructure projects are politically indispensable, at least for the ruling party.
Zambia is at the bottom of the hole now, but the ruling elite is keen to keep digging, despite regular promises that they won’t take on any more debt.
This means that the only likely rescuers are the Chinese. But the question is, at what cost?
It’s hard to read the president’s end game, if there is one.
The most benign explanation for this action is of an honest if a cack-handed attempt to try to recoup the money owed by Vedanta, a notoriously slow payer, including on the $103-million price-participation award made to ZCCM-IH against KCM by UK arbitrators two years ago.
Yet, while the Zambian government laments that KCM hasn’t met its production targets, it doesn’t admit to changing the tax rules over the years such that it will have made it more and more difficult for KCM to finance whatever was required to improve performance, such as the withheld VAT or the increase in mining royalties.
Equally, a rise in electricity tariffs hit KCM particularly hard, with its huge power demand on pumping no less than 350 million litres of water a day, which doesn’t produce any copper. Trimming labour costs is made more difficult in an environment where cash flow is weak and workers are entitled to three months’ pay for each year of service.
While the fast-changing tax and tariff policy environment demanded by a cash-hungry government have not made it easy to run a profitable mine, the greatest irony is that between the government and ZCCM-IH they have three representatives on each of the ex-ZCCM/state mines. They get the detailed financials every quarter, and are perfectly placed to review the budgets and other programmes.
Now the government is essentially suing itself in liquidating KCM, just as it has done by threatening other mining companies with audits in the wake this liquidation application.
More threateningly, however, through the liquidation, Lungu could be trying to force Vedanta’s hand — and those of other mining companies — overpayment of a new, non-refundable sales tax and any other scheme that it might dream up.
Vedanta, and KCM, with a record of environmental problems and faltering production, is the softest target for such a move among the big miners. The liquidation application came shortly after Vedanta reported an annual loss of $165-million, blamed on import taxes on concentrate from the Congo and the weakening of the kwacha.
Yet there are considerable costs to such an extortion tactic by government, even if it stops short of nationalisation. Though it may briefly oil the wheels, it can only bring further long-term misery. There is the cost to employment in the Copperbelt, already politically indisposed to Lungu. This comes on the back of Glencore’s announcement that it will close two shafts at its Nkana mine in Kitwe, threatening 2,000 jobs. The consequences are unpredictable; the place could just blow up.
And there is the downstream cost to the business, in Zambia and the region. There is a lot of money in circulation between the mines and their creditors. KCM owes nearly $120-million to mostly South African suppliers, for instance. The costs of Lungu’s policy lurch are not thus confined to Zambia.
Whether these relatively benign goals — retrieve the money, and/or use Vedanta as an example to the other miners — lie behind Lungu’s liquidation move will be determined by the nature and pace of the resolution. If Vedanta and the government quickly settle through the payment of money owed, a fresh price sharing agreement, and the dropping of the $180-million VAT reimbursement claim, Lungu’s strategy to squeeze more cash out of KCM would be clear and successful, if somewhat high risk.
There is, of course, the cost to governance — and of establishing the wrong incentives for government policy — if a solution is cobbled together. This “success” could encourage a fresh attempt to extort from other mines, including through raising electricity tariffs.
There may be another, more extreme Lungu motive, however. He may be trying to access a large chunk of cash through a re-sale of KCM’s assets.
There is already scuttlebutt about Chinese and Russian suitors and Lebanese middle-men. This is sending the markets, and those institutions which hold KCM paper, into a bit of a spin. Moody’s immediately downgraded Zambia’s credit rating last week, citing pressures impairing the government’s ability to service its debt. With $3-billion invested, KCM is an enticing swap for debt, or at least a means of currying favour and buying time.
In this scenario, Lungu’s targeting of the mines would be indicative of the direction he wants to take Zambia, away from the West, and its governance norms, and towards China, seen as relatively unregulated, governance laissez-faire and diplomatically on-side. But there is little evidence that the Chinese are more likely to forgive the scale of Zambia’s debt and turn a blind eye to the spendthrift habits of Lungu’s PF government, at least without assurances of payback.
The problem with the PF’s approach to government is that eventually, to paraphrase Margaret Thatcher, they will run out of someone else’s money.
Thus a recovery strategy should be less about from where Lusaka will source its next loan or tax bonanza than how they will grow the pie, diversify away from mining, improve productivity, ease logistical constraints and reduce government red-tape and overheads.
Instead, without such policy debate, KCM’s plight is a marker for Zambia’s future path, which if unchecked, is as depressing as the likely solutions.
The IMF will set terms which the Zambians won’t like, so there is unlikely to be a deal, but they will find a way to keep going, in part through extortion, and in part through further borrowing.
Repression will likely increase as fast as joblessness. The next election in 2021 might offer prospects for change, but by then Zambia will be in so deep that changing the political and economic trajectory will be much more difficult. Just look at Zimbabwe. DM
Dr Mills heads the Johannesburg-based Brenthurst Foundation.
Zambia’s Ambassador to Germany, His Excellency Anthony Mukwita has saluted Joel Saboi Mvula, a young Zambian academic that participated in the prestigious 2nd World Congress on Undergraduate Research that took place recently at the University of Oldenburg, Germany.
Ambassador Mukwita described Mvula, who holds Bachelors` degrees in Psychology and English Language and Literature with Education, as an Ambassador in his own right.
“You were not just there at the congress as Joel but as a representative of Zambia. That is a huge achievement not only for you but for the country”, Ambassador Mukwita told Mvula when he called on him at the embassy.
Mr. Mukwita said President Edgar Lungu places a high premium on education especially for young people as he sees it as an “equalizer”. The Ambassador further said even the First Lady realizes this fact hence her decision to study.
“The First Lady could have stayed at home and enjoyed the trappings of State House but instead she is studying for a degree in addition to her crucial charity work. That’s how important education is”, the ambassador said.
The Zambian envoy noted that President Lungu often hosts young people at State House from various schools as part of his efforts to promote the importance of education.
“Because of education, you are able to travel to different parts of the world and address hundreds of people something you may not have achieved”, Ambassador Mukwita said.
The senior diplomat used the occasion to appeal to young people to embrace education as a “game changer” if they are to challenge the circumstances of their lives. He cited the example of President Lungu who hails from humble beginnings but holds the most coveted job in the country due to a sound education as an astute lawyer.
“Through education, he changed his circumstances and will now go down history as Zambia’s 6th President”, Mr. Mukwita observed. Noting that Joel is from Rusangu University, a new institution run by the Seventh-day Adventist Church, Ambassador Mukwita appealed to other privately-run schools to take a leaf from Rusangu saying, “this goes to show the quality of education the institution is offering”.
Mvula told Ambassador Mukwita that the chance to make an oral presentation of his research was richly rewarding and promises to open more doors for him.
“Next month, I am heading to the United States where I am participating in another researcher’s activity at Michigan State University”, Mvula said.
Out of thousands of entries that were submitted globally, only 250 research papers were accepted with fewer than ten from Africa. Mvula was the only one picked from Zambia and 1 out of 67 students that were sponsored by both the university and the German government.
The 2nd World Congress on Undergraduate Research was an interdisciplinary event open to all undergraduates globally to orally or by poster present research papers on some of the major themes representing current global challenges.
These include the environment, the economy, health, communication, innovation and politics. Mvula’s paper addressed sleep practices with a focus on students at Rusangu University. His study found that close to 80 percent of the students reported poor sleeping habits with only about 14 percent sleeping the recommended 7hours.
Experts have always warned against the adverse effects of poor sleeping habits that include the risk of dementia, low immune system, permanent damage to brain cells, diabetes, obesity, heart disease, heart attack, susceptibility to some cancers and in some cases death.
In recognition of the seriousness of sleep disorders, in June 1993, the US Congress established the National Center on Sleep Disorders Research. Over the years, there has been a flurry of activities in developing what is now generally referred to as sleep medicine as medical science has now accepted that there are diseases that arise from poor sleeping habits.
The embassy in Berlin has opened its doors not only to business people but also to ordinary Zambians that gain extraordinary achievements.
ISSUED IN BERLIN BY KELLYS KAUNDA, FIRST SECRETARY – PRESS AND PUBLIC RELATIONS. ZAMBIA EMBASSY
Defender Ziyo Tembo returns to the Zambia fold after a one year exile while long-serving first-choice goalkeeper Kennedy Mweene has been omitted from Chipolopoo’s 20-member team for June’s three-match friendly tour.
Zambia A will also be in action next month with three away friendly dates against Cameroon, Morocco and Gambia.
Zambia B comprising of home-based players are currently in South Africa taking part in the 2019 COSAFA Cup that is running from May 25 to June 8 in Durban.
Ziyo, of Saudi Arabia side Al Shoula, is back for the first time since the 2018 COSAFA Cup in Polokwane , South Africa where they lost to Zimbabwe in the finals.
Coach Beston Chambeshi, who will be in charge of Zambia for the tour, has also picked goalkeeper’s Charles Muntanga of Nkwazi and the inconsistent Nkana goalie Allan Chibwe.
It is the second successive match that Mweene will miss after he was left out of the 2019 AFCON Group K deadrubber against Namibia on March 23 in Lusaka.
Also out is midfielder Cletus Chama who has just helped inspire Simba SC to its second successive Tanzanian league title.
Defender Kabaso Chongo, who captained Zambia against Namibia last March in Lusaka, is the only call-up from DR Congo giants TP Mazembe.
2018/2019 South Africa Premier Soccer League golden boot winner Mwape Musonda of Black Leopards is also in the team.
Zambia will kick-off their friendly tour against defending African champions Cameroon on June 9 in Madrid and later face Gambia in Casablanca on June 12 before closing their excursion against hosts Morocco on June 16.
Team
GOALKEEPERS:Allan Chibwe (Nkana), Charles Muntanga (Nkwazi)
DEFENDERS:Kabaso Chongo (TP Mazembe, DR Congo), Stopilla Sunzu (FC Metz, France), Ziyo Tembo (Al Shoula, Saudi Arabia), Kebson Kamanga (Nkwazi), Paul Banda (Lusaka Dynamos), Moses Nyondo (Nkana), Shemmy Mayembe (Zesco United)
MIDFIELDERS:Donashano Malama (Chippa United, South Africa), Gamphani Lungu (SuperSport United, South Africa), Salulani Phiri (Polokwane City, South Afrca), Enock Mwepu (Red Bull Salzburg, Austria), Emmanuel Banda (AS Beziers, France), Kings Kangwa (Buildcon), Augustine Mulenga (Orlando Pirates,South Africa),
VEDANTA BOSS CLAIMS $500 MILLION PROFIT PER YEAR AT KCM!
Video of Anil Agarwal speaking in March 2014 reveals how he bought KCM for just $25 million. Agarwal claims KCM is giving him $500 million every year in profit, plus an extra $1 billion.Meanwhile Vedanta have continued to claim that they are making a loss, or a minimal profit at KCM.A video released by activists from Foil Vedanta , shows Vedanta boss, and 69% owner, Anil Agarwal, telling a large audience how he bought Konkola Copper Mines for just $25 million, rather than the $400 million asking price, and receiving loud cheers when he states that the company brings in $500 million in profit each year.
Foil Vedanta had previously released figures from Vedanta’s annual reports showing that the company made $362 million in 2013, but Vedanta CEO Tom Albanese had disputed this during his visits to Zambia in February, repeating the previous claim that KCM was making a very low profit or a loss due to high operational costs and taxes.
In the video, Agarwal, speaking to the Jain International Trade Organisation in Bangalore, India, March 22 – 23 2014, states about KCM:
“Its been 9 years [since we’ve owned the company], and since then every year it is giving us a minimum of 500 million dollar, plus 1 billion dollar, every year it has been continuously giving back.”
Anil Agarwal also explains in detail how he came to buy ‘the largest copper mine in Africa’ at Konkola, describing how he took a chance by offering only $25 million rather than the $400 million asking price.He describes his surprise at receiving a VIP welcome in the Zambian parliament, and ridicules the then Zambian President Levy Mwanawasa for claiming that Vedanta would improve the lives of Zambians, saying:
“He told the entire parliament that what great people we are, and our empire, and that they will make our lives gorgeous. And they will make schools, make hospitals and blah blah …”
Vedanta’s Chairman Anil Agarwal says on he was prepared to invest in increasing Zambian copper production to 400,000 tonnes, creating another 10,000 jobs at Konkola Copper Mines (KCM), but said “the right framework” had to be in place.
Vedanta is fighting Zambia’s decision this month to name a provisional liquidator to run Vedanta Resources’ KCM business.
The government has accused KCM of breaching its operating licence.
Legal proceedings have been adjourned until June 4.
In an announcement published in Zambian newspapers, Mr. Agarwal said he had told Zambia’s president Edgar Lungu that, “with the right framework” Vedanta was prepared to increase output.
“I am prepared to invest what is required to increase production safely and sustainably to 400,000 tonnes, creating another 10,000 jobs at KCM and more social benefits,” he said.
KCM is one of Zambia’s largest employees, creating work for around 13,000 people.
It has previously said it would raise output to 400,000 tonnes per year, but instead production has fallen because of technical issues as inrastructure has aged, as well as problems such as power outages.
Production for the full-year ended March 2019 was around 90,000 tonnes.
Mr. Agarwal said Vedanta worked to comply with Zambia’s laws and tax requirements and said he did not understand why state-controlled ZCCM-IH, which holds around 20 percent of KCM, had gone to court to seek the appointment of a provisional liquidator.
Vedanta Resources, partial owner of the Mumbai-listed Vedanta group of companies, is the majority shareholder of KCM.
Mr. Agarwal said “the current position” of the Zambian government would harm the country’s “investor-friendly status” and he said a lot of mining companies were considering leaving Zambia.
First Quantum said it had abandoned plans to lay off workers, but Glencore has said it is closing shafts that are no longer economic.
Meanwhile, in a series of tweets, Chief Government Spokesperson Dora Siliya said that KCM liquidation is dissolving of the partnership between ZCCM-IH and Vedanta while the asset continues to operate so that worker/supplier obligations continue to be met as a going concern through Liquidator. The Minister further said that much interest is already being shown by other potential investors.
The Minister went on to tweet that the Government sent KCM default notice on 23 April 2018 after KCM failure to adhere to Expert Team recommendations in 2013 including failure to invest 357 million dollars. This resulted in insolvency threat. To date KCM has ZMK 1.9 Billion VAT claims while it owes ZMK 3.01 Billion in taxes.
“As Anglo-American left KCM in 2002, Vendanta came. As such, it’s unfair to claim KCM liquidation now threatens other mines. The KCM Partnership is no longer desirable for the People of Zambia hence why Govt is talking to others to safe guard the Asset and worker interests, ” read the last tweet.
