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Nkana on Saturday laboured to beat struggling Forest Rangers 1-0 in a FAZ Super Division match at Nkana Stadium in Wusakile while Mighty Mufulira Wanderers drowned at Kafubu Stadium.
Aggrey Chiyngi’s side needed a late goal from forward.
Walter Bwalya to rebound from last weekend’s 2-1 loss at Power Dynamos in the Kitwe derby.
Bwalya headed in a Joseph Musonda cross in the 79th minute to hand Nkana a hard-fought win.
Nkana had missed several chances prior to scoring in this Week 23 game watched by a sizeable crowd at Nkana Stadium.
Forest’s Douglas Muwowo kept his side in the game after clearing Freddy Tshimenge’s goal bound shot just after ten minutes.
Later in the game, Bwalya headed two great scoring opportunities over the bar from inside the box.
This win pushes Nkana to 31 points after 23 matches played while Forest remain stuck on 23 points.
Meanwhile, Mighty were beaten 2-0 at their adopted home in Luanshya by Zanaco.
Fackson Kapumbu and Salulani Phiri were on target for Zanaco in the 82nd and 85th minutes respectively for The Bankers.
Members of Parliament
The Christian Coalition has unearthed a scam where some people are planning to petition that the clause of the declaration of Zambia as a Christian nation be removed from the constitution.
Speaking at a press briefing in Lusaka today, Coalition President Charles Mwape says the country will forever remain a Christian nation citing that the country has a covenant with God.
He says as Christians, they will rise and protect the declaration of Zambia as a Christian nation adding that instead Zambia as a Christian nation should be moved from the preamble to an article in the constitution.
And Dr. Mwape says the partial amendment of the constitution should be supported by all genuine Zambians citing that they agree with the National Restoration Party and the Young African Leader’s Initiative (YALI) that the country does not have resources to hold a referendum.
Dr. Mwape notes that as long as the contents of the draft constitution are safe, there is no need to worry about the partial amendment as the only fear is tempering with the contents.
He adds that the constitution making process is beyond political campaigns and thus must not be politicized but be taken seriously.
Dr. Mwape has further that Zambians should be honest with themselves and support the partial amendment of the constitution if they want a constitution.
The International Monetary Fund as observed that Zambia’s legal framework for Public Finance Management is fragmented, and much of it is outdated.
The IMF says the laws fall short of capturing both recently introduced reforms and internationally accepted practices.
In its latest country report for Zambia, the IMF says the government has prioritized a revision of the existing legal framework for Public Finance Management and national development planning.
It says this revision will permit a range of important Public Finance Management reforms that are ongoing or planned to be incorporated within the legal framework.
‘These reforms include medium-term planning and budgeting, a performance oriented approach to budget management, the introduction of comprehensive commitment controls, adoption of international accounting and reporting standards (International Public Sector Accounting Standards (IPSAS) and Government Finance Statistics Manual (GFSM) 2001), implementation of a treasury single account (TSA), and recognition of electronic transaction processing arrangements,’ it said.
It said an updated legal framework would permit other important improvements in current practices to be incorporated.
“These amendments include extending the coverage of the law from the budgetary central government to general government and financial oversight of the wider public sector, harmonizing definitions and terminology, provisions on the management and monitoring of fiscal risks, and the approval for borrowing and guarantees issued by the government.”
It added, “Clarification of the roles of the MoF and the BoZ on cash and debt management, clear rules and procedural arrangements for supplementary budgets, excess expenditure, and the end-year carry-over of unspent appropriations and broadening the sanctions regime for breaches of financial regulations to the controlling offices of organizations as well as individuals.”
It added that a revision of the legal framework would facilitate the strengthening of existing institutions, in particular the powers of the National Assembly to scrutinize the government’s medium-term fiscal and budget strategy and to oversee the execution of the budget, and the independence of the Auditor General (AG).
The IMF also suggested that consideration could also be given to elevating the position of the Accountant General to Permanent Secretary level, in line with several other African countries.
The Fund also noted that revisions to the Public Finance Management legal framework will need to be harmonized with the new Constitution, a draft of which was finalized in 2014.
“In addition, the government has embarked on a decentralization reform which by 2017 will substantially increase the autonomy of and the amount of fiscal transfers to local governments,” it said.
It said the reform will require the establishment of legal provisions for enhancing intergovernmental fiscal relations, including central government’s oversight of local government fiscal operations as well as harmonization of the Local Government Act (LGA) with the Public Finance Act (PFA).
The IMF also noted that the government is currently proposing a two-track approach to revising the Public Finance Management legislation.
“The first track comprises a Planning and Budgeting Bill (PBB) that has already been drafted and should be submitted to the Cabinet and National Assembly in summer 2015. The PBB covers broadly the preparation of the national development plan (NDP) and the budget. The second track would comprise the preparation, in longer time, of the revised PFA and other specific PFM-related laws, including on debt management, state-owned enterprises (SOE), and local government finance.”
The IMF said it has reservations about the government’s two-track approach as there are risks that the two laws will not be comprehensive, and will lack consistency and comparability.
“A preferred approach would be to prepare a single integrated PFM law—a new Public Finance Management Act (PFMA)—taking elements from the PFA 2004 and the draft PBB, and consolidating and updating them.”
It said many other African countries (such as Kenya, Liberia, Mauritius, Rwanda, Seychelles, Swaziland, and Uganda) have followed a similar path in updating their legal framework for budgeting and public finance.
“If the government decides to continue with the two-track approach, it is very important that the process of drafting legal framework is managed by a single technical working group, and the work is closely coordinated with relevant experts in the MoF, the Ministry of Local Government and Housing (MoLG), the Cabinet Office, and other government ministries and agencies. Ideally, the two Bills should be presented to the Cabinet for approval concurrently, followed by their combined submission to the National Assembly.
The country report proposes a road-map for completing the process of drafting and adopting the revised legal framework.
“It will be particularly important to consult at an early stage with all stakeholders, especially the National Assembly. Early engagement with the legislature may convince them that it is necessary to extend the timetable for consultation and drafting in order to prepare a fully integrated legal framework as emphasized above.”
Energy Regulations Board (ERB) offices
THE Energy Regulations Board (ERB) has announced that over 60 companies want to invest in Liquid Petroleum Gases (LPGs) and solar energy in a bid to help caution the current electricity deficit in the country.
ERB executive director Langiwe Lungu announced yesterday after the tour of two gas companies and one solar energy firm in Lusaka.
Ms Lungu said ERB had received over 30 applications from companies willing to invest in solar energy and also over 30 applications from companies willing to invest in LPGs.
She appealed to the public to consider switching to LPGs and solar energies as alternative sources of clean energy a compared to charcoal.
“There is need for people to switch to LPG and solar energy in the event of the countrywide massive load shedding following the poor rainfall that the country experienced in the last rainy season,” Ms Lungu said.
Ms Lungu discouraged the continued use of charcoal as an alternative source of energy as it had a devastating effect on the environment.
She said though solar energy was expensive to install, the cost was a one way off and maintenance was cheaper.
On the other hand, she said LPG was equally the best alternative to charcoal as it was clean and had no effect to the environment.
She said the ERB would engage Government to wavier duty importation of LPG to help cushion the prices of the commodity on the market which have skyrocketed due to high demand and weakening of the kwacha.
The LPG was currently being sold between K19 and K20 per kilogramme from about K13 and K14 per kilogramme.
The prices of the LPG and solar panels have gone up on the market following the increase in the exchange rate.
The three companies that were visited are AFROX, ORYX energies and Muhanya Solar Limited.
The energy companies however complained that the prices of the commodity and equipment were increasing due to the weakening of the Kwacha against the dollar.
Muhanya Solar Limited managing director Geoffrey Kaila said there was need for Government consider wooing investor to set up plants of manufacturing solar systems to help reduce the prices.
AFROX regional manager Victor Kapanda said during the tour of the plant that besides stabilising the kwacha, there was need to find alternative sources of LPG beside the traditional sources which include Indeni Refinery and South Africa.
ORYX managing director Dansel Sannigadu said his company had sufficient LPG which it imports from Mozambique and Tanzania.
GOVERNMENT has released US$120 million on the market to arrest the depreciation of the Kwacha against major convertible currencies, a move that will see the Kwacha start rebounding by today.
President Edgar Lungu said the money has been released to offset Government bills in sectors like health, education and construction.
This is according to President Lungu’s Special Assistant for Press and Public Relations Amos Chanda who briefed the Press at State House yesterday to announce measures Government had put up to arrest the rapid depreciation of the Kwacha and energy deficit.
President Lungu said the interventions to arrest the plummeting Kwacha include the release of the US$120 million from part of the recently procured $1.2 billion Euro bond.
The money was released between Thursday and today.
“The Kwacha will, starting today show signs of recovery because of the money that is been released. Part of the reason that the Kwacha has been performing badly is because some sectors have slowed down due to non payment,” he said.
President Lungu said the increased volatility of the Kwacha appeared to be reflecting market panic more than underlying fundamentals.
The President has therefore directed the Finance minister to work closely with the Central Bank to assess additional market intervention measures to address the volatility.
Mr Lungu urged the public and private sector to reduce on imports and increase exports as well as avoid activities that would lead to further demand for forex as a way to calm the Kwacha.
The Kwacha has been depreciating due to among other reasons, low price of copper, a commodity which is the country’s main forex earner.
In the energy sector, President Lungu has sanctioned remedial measures including power importation and transferring shares from the Ministry of Finance to the Industrial Development Corporation (IDC) which would allow the IDC source an initial $500 million to invest in the energy sector.
The President has instructed Zesco to operate more efficiently by being self sufficient, reliable and not rely on expensive measures like importing power.
Government has also signed a contract with an independent power supplier and was talking to another to supply power by January among other interventions.
The measures would see Zambia export power in less than two years. He has thanked Zambians for putting up with inconveniences of power cuts which have affected both small and large businesses.
“This is what I think about every day. I want the nation to know that no one feels the anguish of these disruptions more than I do,” President Lungu said.
Meanwhile, President Lungu has said it was regrettable that some people had reduced the power and currency challenges to factors of political rhetoric.
He said Government was in control and citizens should not panic but instead work together to rise above the problems.
The President would announce major measures Government had taken on September 18, this year when n he addresses Parliament.
KONKOLA Copper Mine (KCM) has sent 133 employees on leave to allow for a review of the firm’s operations with a view to increasing productivity and ensuring future profitability.
And three miners are admitted to Wusakile Mine Hospital in Kitwe after they suffered burns at Mopani Copper Mines (MCM).
On the forced leave of the 133, KCM said in a statement made available in Chingola yesterday that the employees have not been made redundant, but this option remains open given the economic conditions facing the company.
KCM chief executive officer Steven Din said: “The global copper industry is currently experiencing very difficult business conditions. This includes KCM. Our clear objective is to return the company to profitability.”
Mr Din said the decision to place 133 employees on recess has been a difficult one, and that the company understands that it will create distress for those involved and their families.
He said there is a possibility of the positions involved being made redundant, but that this will not be done until all options have been fully evaluated.
“In any case, we will ensure we provide all necessary support to the individuals involved,” he said.
Mr Din said the mining firm is in contact with the Government and unions to update them on the current situation.
UNZA library
MINISTER of Education, Science, Vocational Training and Early Education Michael Kaingu says Government is committed to ensuring that the K320 million owed to University of Zambia (UNZA) staff through retirement benefits and contractual entitlements is cleared soon.
Government has already committed K50 million to the debt but University of Zambia lecturers and researchers say it is not enough and want at least half of the money.
Dr Kaingu has since made a passionate appeal to the union executive to talk to its members to release students’ results as soon as possible so that the school calendar is not disrupted.
He said this through his spokesperson Hillary Chipango after he held a two-hour closed door meeting with University of Zambia Lecturers and Researchers Union (UNZALARU) at his office yesterday.
“The meeting was also aimed at revisiting the stand-off between UNZALARU and management over unpaid statutory financial obligations,” Mr Chipango said.
Dr Kaingu said he is confident that the withheld students’ examination results will soon be released on the basis of Government’s assurance to UNZA academic staff.
Mr Chipango described the meeting with the union executive as cordial and successful.
And when contacted for a comment, UNZALARU president Euston Chiputa described the meeting with Dr Kaingu as cordial.
Dr Chiputa said the executive will need to brief its members before they chart the way forward.
“We will schedule a meeting with our members any day next week, and we will be able to brief the press on the way forward,” he said.
UNZA lecturers have withheld students’ examination results in protest against unpaid pension and contractual dues.
Local government minister Dr John Phiri follows a discussion at one of the largest recycling companies in Sweden that employs 700 workers, IL Recycling with Zambia’s Deputy Ambassador to Sweden Anthony Mukwita.
ZAMBIA has decided to act decisively in managing its mountains of waste that can be recycled into either energy or other profitable commodities on a large-scale, says Local Government and Housing Minister Dr John Phiri.
Dr Phiri was speaking on the side-lines of a week-long inter-active business event organised by the Embassy of Zambia in Stockholm, Sweden which is exploring ways of efficient waste management and water purification.
This is contained in a statement released by Zambia’s deputy ambassador to Sweden Anthony Mukwita.
Mr Mukwita said Dr Phiri’s delegation is also attempting to find solutions to the current garbage challenge in Zambia and see whether waste can be a source of energy as the case is in Sweden.
“We have to put a premium price to waste and turn it into a fortune instead of a menace,” Dr Phiri said, “ It will take a long time for us to see the benefits of waste management, just as it took a long time for Sweden, but we have to start now to record progress in future.”
Dr Phiri is leading a delegation of energy and solid waste management experts from Zambia that are presently having ‘hands on’ waste management meetings to find practical solutions to waste challenges in Zambia.
The Minister has visited among others, IL Recycling chief executive officer and president Lars-Gunnar Almryd who told the ministerial delegation that waste management can be a profitable venture, that can also create jobs with time.
IL Recycling employs about 700 people and has a net value of about 200 million Euros, while the entire waste industry in Sweden is worth billions of dollars and employs about 20,000 people.
Sweden, with a population of about 9 million people, generates about 4.2 million tonnes of waste annually, compared to Zambia’s 810,000 metric tonnes of recorded waste annually from a population of about 13 million people.
Dr Phiri told his officers at the start of the meeting that, “I do not want this to be another tourism expedition…when we get back to Zambia, I want all of you to be accountable and give the media a briefing on what you have learnt and how we can turn it into practical waste management solutions. This is not a tourism expedition at all.”
And Zambia’s Ambassador to Sweden, Edith Mutale, said it was about time Zambia joined the rest of the world in going “green” by recycling its waste in view of the power deficit due to natural calamities such as droughts.
Ms Mutale said President Lungu’s Government is already in the process of plugging the gap through looking at solar initiatives and other alternative sources of energy.
Among the people in Dr Phiri’s delegation are senior principal economist Danny Zulu and senior solid waste management officer Hartman Ngwale, including Tourism Board marketing and public relations manager Caristo Chitamfya.
She said Mr Chitamfya is also expected to have a separate platform to give “Ten Reasons Swedes should visit Zambia.”
ZAMTEL says it is determined to empower its subscribers with assets that promote financial independence.
Chief Marketing Officer Evans Muhanga says ZAMTEL seeks to promote a spirit of entrepreneurship among its clients.
He said this during the launch of the Nonka Nonka nationwide promotion in which one of its mobile subscribers stands to win a brand new tipper truck worth 6-hundred thousand Kwacha.
Mr Muhanga said the winner could add value to the asset by leasing it or hiring it out for construction works.
The promotion includes daily cash prizes. The total cost of the 90 day promotion is three million Kwacha.
Mines, Energy and Water Development Minster Christopher Yaluma
Mines Minister Christopher Yaluma says government is ready to welcome home its professionals from the diaspora.
Bright Mukwasa reports that speaking on the sidelines of the Africa Down Under 2015 Conference which ends today when he met Zambians living in Australia, Mr Yaluma says Zambia has taken a good turn for development.
Mr Yaluma says Zambia needs the expertise from abroad to help build the nation.
And speaking on behalf of Zambians in Perth, Mapanza Nkwilimba says Zambians in the Diaspora have a duty to contribute to national development.
Meanwhile, Japanese Ambassador to Zambia Kiyoshi Koinuma has advised Zambians to take up rice production along with maize cultivation.
Ambassador Koinuma says the Japanese government is willing to improve the agriculture sector in Zambia especially rice production.
ZANIS reports that the Japanese envoy said his government seeks to identify a suitable place for rice production on the Copperbelt province.
Mr. Koinuma said this when he called on Copperbelt Province Minister Mwenya Musenge at his Office in Ndola.
And Mr Musenge says the country is working towards diversifying from mining to agriculture.
Meanwhile Ambassador Koinuma says Japanese companies are ready to partner with potential Zambian business entities especially in agriculture, mining and manufacturing.
Vice President Inonge Wina (c) after the official opening of a 1x 2 class room block worth k160,000 at Kataba Primary School in Nalolo District
Vice President Inonge Wina says it is unfortunate that some opposition political parties are condemning First Lady Esther Lungu for her noble gesture of helping the under privileged in society.
Mrs Wina says instead of condemning Mrs Lungu, she should be praised for remembering the people in the remotest parts of the country.
She said it is inspiring that the President’s wife has a heart for the poor .
Mrs Wina was speaking at Shang’ombo grounds.
She thanked the residents for the hospitality rendered to the First Lady during her tour of Western Province.
The Vice President is inspecting government projects in Western Province.
Energy Regulations Board (ERB) offices
The Energy Regulation Board (ERB) says the power deficit the country is facing is a wake-up call on the need to come up with cost reflective electricity tariffs.
ERB Executive Director Langiwe Lungu says the electricity crisis is also what the country needed to begin to appreciate other alternative sources of energy.
Ms Lungu says the electriERB ED LangiweHLungucity crisis is also a reflection of the sub-economical electricity tariffs being charged by ZESCO.
She notes that if the country had cost reflective electricity tariffs, there would have been more investments in power generation by now.
Ms. Lungu was speaking to Journalists in Lusaka this afternoon after a tour of Liquefied Petroleum Gas suppliers namely Afrox Zambia Limited, Oryx Oil Zambia Limited and Muhanya Solar Limited.
Speaking during the tour of his company, Afrox Zambia Limited Regional Manager Victor Kapanda noted the need for government to consider setting up strategic storage reserves for Liquefied Petroleum Gas.
Mr. Kapanda says because of not having Liquefied Petroleum Gas readily available in the country, his company is now importing the gas from South Africa the reason why its price for the 1kg cylinder which used to be sold at K13 is now at K19.
He says in view of the fact that Indeni is currently not producing LPG; government should consider waiving duty on imported Liquefied Petroleum Gas as way of supporting growth and demand for gas as an alternative source of energy.
And Oryx Oil Zambia Limited Managing Director Dansel Sannigadu observed the need to improve on the capacity of transporters of Liquefied Petroleum Gas in Zambia.
President Edgar Lunga has directed all government institutions and the private sector to reduce foreign currency related expenditures in order to save the Kwacha from further sliding. In a statement released to the media by his Special Assistant for Press and public relations Mr Amos Chanda, the President urged all entrepreneurs small, medium and large to increase production of various goods that can be exported to reduce the country’s trade deficits.
Below is the full statement
PRESIDENT MOVES TO GUIDE INTERVENTION MEASURES ON KWACHA, ENERGY SITUATION
LUSAKA (Friday, September 4, 2015)- Following the deterioration of the currency and energy situation in the country in recent months, His Excellency Mr. Edgar Chagwa Lungu, President of the Republic of Zambia has intervened to guide monetary and fiscal policy measures designed to stabilize the markets.
1.Developments in the foreign exchange market
The continued difficulties in the global economy and the unprecedented strengthening of the US Dollar has sent all currencies including our national currency, the Kwacha on a downward spin.
The Kwacha depreciation has in the recent past accelerated largely due to the trade imbalances that we are experiencing because the imports are in excess of the exports which have reduced both in volume and value. This is a major function of low commodity price levels globally. Total exports for the first half of 2015 are 26.9% lower than that recorded in the same period in 2014.
The President has therefore directed the ministries involved in economic management particularly the Ministry of Finance working together with the Bank of Zambia to closely monitor the situation and keep him constantly and frequently appraised.
The President wishes to urge all entrepreneurs small, medium and large to increase production of various goods that can be exported to reduce the trade deficits.
There should be a bold drive to increase the levels of production and processing of a wide range of things that are within the country’s reach to reduce on unnecessary imports.
A depreciating Kwacha to unreasonable levels has severe cost implications for a country like Zambia, which imports a lot of its requirements, some of which are excessive. The low Kwacha also compounds our external debt servicing.
The President has directed all government institutions to rationalize and minimize in all areas that engender foreign exchange costs. The President also enjoins the private sector to reduce foreign currency related expenditures. He makes a strong appeal to the Commercial Banks to be proactive and on the alert for the many leakages and other illicit out flows without being prodded or policed by the Bank of Zambia.
The President notes that following global economic developments over the past two weeks that have had adverse effects on many emerging and developing economies, including Zambia, the Treasury and the central bank have been closely monitoring developments to assess the resultant impact on the domestic economy and the local currency.
Growth in the global economy remains modest and uneven. According to the July 2015 International Monetary Fund World Economic Outlook update, growth for 2015 is projected at 3.3%, 0.2 percentage points lower than in the April outlook.
Growth in emerging markets and developing economies is expected to slow down to 4.2% compared with the outturn of 4.6% in 2014. China’s growth slowed down to 6.8% year-on-year in the first half of 2015 from 7.4% recorded in 2014.
In Sub-Saharan Africa, growth is projected to slow to 4.4% in 2015 compared with 5.0% in 2014, largely reflecting the drop in commodity prices that has led to deterioration in external sector performance, particularly for commodity exporters like Zambia.
Zambia remains vulnerable to developments in the global economy. In particular, the balance of payments position has deteriorated reflecting a widening current account deficit. Both traditional and non-traditional exports have declined significantly this year while imports have declined at a slower pace. As a result, the Kwacha has been on a depreciating trend.
In addition, global investors have been anticipating that the US central bank would begin raising interest rates before the end of the year for the first time since 2006. As a result, emerging markets like Zambia have experienced systematic net outflows of capital, creating pressure on their currencies to depreciate.
More recently, the Kwacha has come under immense pressure, largely emanating from global economic and financial market developments. The major factor has been associated with slow growth in China, the second largest economy after the US.
Chinese authorities recently announced changes to their foreign exchange management, a process that resulted in about 4% devaluation of the Renminbi (Chinese Yuan) against the dollar. Fears that the Chinese economy is slowing down have caused major global stock markets to plummet while emerging markets currencies experienced excessive volatility.
The regional currencies that have depreciated include the South African Rand, the Tanzanian Shilling, the Ugandan Shilling and the Ghanaian Cedi.
Commodity prices, including copper, have dropped with the Zambian economy impacted adversely through the decline in the price of copper, which has fallen to around US$4,900 per tonne from above US$6,500 per tonne in 2014.
These developments apart from underscoring the long overdue need for the diversification of our economy to reduce dependence on copper, they also provide an opportunity for the country to take practical measures to respond to the challenges of diversification.
Difficult as the situation is, it is an ideal time to actualise this structural transformation. The movements in the exchange rate are sending clear signals that our economy needs an expanded export base and a reduction in unnecessary imports.
“In recent days, we have seen an acceleration in the depreciation of the Kwacha against the major currencies. The increased volatility appears to be reflecting market panic more than underlying fundamentals,” the Head of State said.
“I therefore deem the Bank of Zambia’s current monetary policy stance appropriate in anchoring inflation expectations. I have to this effect directed the Minister of Finance who leads the fiscal policy team to work closely with the Central Bank (which is responsible for monetary policy), to assess additional market intervention measures to address the observed excessive volatility.”
The envisaged interventions are designed to calm the markets and allow fundamental factors to be the main determinants of exchange rate movements.
2.Energy situation
Owing to erratic rains last season resulting in low water levels at Kariba dam and Kafue Gorge dam, Zambia’s hydropower generation has drastically reduced leading to ZESCO’s massive load shedding to save power. This has adversely affected households, small businesses like barbershops, hair salons, poultry, welding dependent on electricity, big industries and other essential services.
“This is what I think about every day and I want you to know, I want the nation to know that no one feels the anguish of these disruptions more than I do. My Government is doing its very best to alleviate the suffering of our people.”
The President deplores the current power-cuts, which are adversely affecting industry across the board and have the effect of reducing our Gross Domestic Product Growth to below 5 per cent. The President therefore will require an improvement in areas, which are not acts of God such as in the areas of operations.
In the interim the President has sanctioned a series of remedial measures including importation of power to contain shortfalls.
For the medium and long term the President wants to see determined and expedient efforts to promote investments in alternative power schemes which have short gestations of six months to a year.
The President is hopeful and confident that the decisions to adjust the tariff to 10.35 cents per Kwh will spur investments.
With the transfer of shares on 24th August, 2015 at the behest of the President, from the Minister of Finance to the Industrial Development Corporation (IDC), the President expects IDC to spearhead the accelerated investment in the power sector.
The IDC will now be able to go to the market in the coming weeks to raise an initial US$500 million to invest in the energy sector and other related infrastructural development programmes.
It is necessary for both expedition and corporate culture to use IDC as a delivery vehicle. The President wants to see Zambia as a power exporter in the next one to one and half years when another 600 megawatts could originate from the thermal subsector.
The President wants to thank the Zambian people for putting up the inconveniences of power cuts. He assures that their agonies will not be inordinately prolonged.
“I now instruct ZESCO to quickly identify and contract firms that are offering the lowest cost of generation for solar and which will allow ZESCO to earn a profit considering the current retail prices for electricity until Zambia has rebuilt and owned its generation capacity to its actual base load.”
“I am fully aware of firms that have over the years been offering alternative energy solutions at prices lower than the current tariffs with the benefit of long term concessional funding which would allow ZESCO to own the facility upon finishing construction and not require subsidies from the Treasury,” the President said.
Government’s desire is a ZESCO that is profitable, reliable, self-sufficient and does not rely on expensive measures such as the importation of power from outside the country or buying power at expensive prices from independent power producers (IPPs).
The power deficit is not only peculiar to Zambia but is being experienced in the entire SADC region and therefore, due to the current generation deficit we are experiencing, the national power utility, ZESCO Limited is currently carrying out load management in order to conserve energy.
Government is working tirelessly in order to mitigate the impact of the power shortage, which has affected all sectors of the economy.
It is in this regard that the government is supporting ZESCO through the implementation of some medium to long-term measures to cushion the impact of power rationing on the economy.
The following are some of the measures that have been put in place:
(i) Government has signed a contract with an Independent Power Producer Aggreko for the supply of emergency power of up to 148 MW with effect from 1st September 2015. An additional 40 MW will be available from January 2016.
(ii) Government is currently negotiating with another IPP for the supply of an additional 150MW, which will be available by January 2016.
(iii) The 300MW coal fired power plant being constructed in Southern Province in Maamba will bring on board the first 150 MW unit by January 2016, whilst the last 150 MW is scheduled for commissioning by the end of the first quarter of 2016.
(iv) The 120 MW, Itezhi-Tezhi hydropower project is 87% complete. The first unit of 60 MW is scheduled for commissioning by December 2015, and the last 60 MW unit is scheduled for January, 2016.
(v) Further ZESCO has initiated a project to install distributed solar plants to the tune of 300MW and commissioning is scheduled to start in the fourth quarter of 2016.
(vi) ZESCO has continued securing power imports of up to 300 MW from EDM of Mozambique and the Southern Africa Power Pool Day-Ahead-Market during off peak periods.
(vii) The procurement process for the 750 MW power station at Kafue Gorge Lower is nearing completion. The shall keep the nation informed on the progress being made.
(viii) ZESCO is looking to spread the hydrological risk by exploring sites on the Luapula River.
The President therefore takes this opportunity to appeal to all users of electricity to practice energy efficiency during this period, and we also encourage the use of alternative sources of energy such as Liquefied Petroleum Gas and Solar for cooking and heating.
3. Conclusion
The President regrets there are citizens who have a field day when the country experiences difficulties which arises from external factors beyond our control. Nobody, let alone government, has magical solutions.
The challenges the country faces today are real and unprecedented and should not be reduced to mere political rhetoric. “While I take the lead in providing decisive solutions to these challenges, I ask all Zambians irrespective of political affiliation or any other interests to unite and come together so that we as a nation can pull through these challenges.”
The President wishes to state further that he will announce additional measures in his State of the Nation Address through the National Assembly on 18th September 2015.
The Head of State will provide comprehensive direction to the Nation on short and medium term interventions to cut costs, diversify the economy and reduce the nation’s dependency on copper and hydropower.
Issued by: Amos Chanda SPECIAL ASSISTANT TO THE PRESIDENT (PRESS AND PUBLIC RELATIONS) STATE HOUSE
Kenya striker Allan Wanga believes playing at home will give the Harambee Stars an edge over Zambia in Sunday’s 2017 Africa Cup qualifier in Nairobi.
Kenya have never beaten Zambia in three Africa Cup qualifiers.
Wanga of Azam FC in Tanzania said beating Chipolopolo would brighten Kenya’s chances of qualifying to the Gabon AFCON.
“We have a chance this time around because we started off well.
We managed to get one point away in the first game,” Wanga told SuperSport.
“Playing at home with the fans, I think we have a chance. If we manage to get three points on Sunday it will put us somewhere,” he said.
Congo and Guinea Bissau completes Group E of the 2017 AFCON qualifiers. All the four teams in this group have a point each after drawing their day one matches in June.
Second placed Power Dynamos look set to cut Zesco United’s seven point lead at the top of the FAZ Super Division when they face Red Arrows away at Nkoloma Stadium on Saturday. Power could take advantage of Zesco’s postponed week 23 match against Nkwazi to cut their lead to four points.
Power have 45 points, seven behind Zesco after 22 matches played. Both Arrows and Power trots into Nkoloma with a one win and loss from their last two games.
In their last match, Power defeated Nkana 2-1 at home while Arrows stole a 1-0 win at Green Eagle in Choma. Mathews Phiri’s Air Men lost the first leg match 1-0 at Power on the night of July 6.
Elsewhere, Mighty Mufulira Wanderers aims to maintain their fourth place on the table when they host third placed Zanaco at Kafubu Stadium in Luanshya.
On their way to meeting Zanaco, Mighty have beaten Power Dynamos and Forest Rangers.
On the other hand, Zanaco have a win and draw in their last two matches. Meanwhile, the Bankers triumphed over the Mufulira side in their earlier meeting in Lusaka.
