2
4
5
7
8
9
10
11
12
13 
14 
15
16
17
18
19
20
21
ZRA to revise the revenue collection estimates for this year
during the official opening of Chipata domestic taxes offices
THE Zambia Revenue Authority (ZRA) will revise the revenue collection estimates for this year following the recent changes made to the 2015 mining tax regime, Commissioner General Berlin Msiska has said.
Government has revised the 2015 taxation regime for the mining sector which will see mineral royalty tax rate for open cast mining and underground mining operations pegged at nine per cent.
The corporate income tax on income earned from mining operations will be at 30 per cent while the corporate income tax on income earned from mining operations processing will be at 35 percent.
Further, the variable profit tax on income earned from mining operations will be limited to 50 percent of taxable profits.
Mr Msiska said ZRA would make adjustments to the estimates that were originally made for this year in view of changes to the 2015 mining tax regime.
He was speaking in an interview in Livingstone yesterday after he officially opened the world’s foremost authority on cross-border taxation, IBFD’s first Africa tax Symposium
The conference is discussing the trends in international taxation while focusing on an African perspective.
“Now that Government is going to Parliament to take the proposed changes for the mining regime, Parliament will approve the changes that they are proposing and then ZRA will have to revise the original estimates for the rest of the year.
“When Government makes changes the tax policy, tax administrators have to compute the revenue impact and make adjustments to the estimates that were originally made for that particular year,” he said.
Mr Msiska said ZRA had done fairly well in the first quarter in terms of revenue collection but there are challenges as the mining sector had not performed well in contributing their revenue to Government.
“Some of the reasons attributed to that low revenue from mining companies are that the expected production which we thought they would make has not come through as expected.
“Further, the Kwacha depreciation would have helped us but still the production numbers are quite low and some of the mining companies had to apply for deferment of mineral royalty and they applied for deferent. What we expected to come through in the first quarter did not come through because it was under deferment,” Mr Msiska said.
He said in a mineral rich country like Zambia, one would have expected mining industry to contribute more than four percent of the Gross Domestic Product (GDP).
Mr Msiska said there was more that tax administration could do to get more money into Government coffers.
He said there was need to come up with appropriate taxation and make some changes while ensuring that such changes did not discourage investments.
“When the civil society and the media discuss the low revenue that the Government is getting from the mining sector, they narrow it to the contribution which the mining industry has been contributing to Government coffers.
“I think more can be done to get more revenue from multinationals in general and that is the essence of this conference in Livingstone,” Mr Msiska said.
IBFD Knowledge Centre director Belema Obuoforibo said there was need to building capacity in revenue collectors to boost revenue collection.
“Education is key and therefore countries need to have well trained people to implement taxation laws.
“We need to have good and beefed up laws as some transactions are very complex and difficult to tax them,” Ms Obuoforibo said.
Chief Mpezeni accepts Government’s apology
PARAMOUNT Chief Mpezeni of the Ngoni people of Eastern Province says he has accepted Government’s apology over police’s cancellation of a meeting he was to address over a land settlement dispute between the Ngonis and the Chewas in Chipangali on Sunday.
And Paramount Chief Kalonga Gawa Undi of the Chewa people of Eastern Province has appealed to traditional leaders and other stakeholders who have little or no knowledge of the Chewa and Ngoni history to desist from making uninformed statements on the matter because it can be a breeding ground for hostility.
Paramount Chief Mpezeni has invited Government to visit his palace to formalise the apology.
And chief government spokesperson Chishimba Kambwili has promised to visit paramount chiefs Mpezeni and Gawa Undi over the weekend to physically apologise to them.
“I am physically going there over the weekend to pay a courtesy call on both Gawa Undi and Mpezeni,” Mr Kambwili said in an interview yesterday.
He said Government is grateful that the two traditional leaders have accepted the apology.
And Paramount Chief Mpezeni said in a telephone interview from his palace yesterday that: “Some people here want to de-campaign President Lungu by antagonising us, the traditional leaders. Let Government come in person and apologise.”
Paramount Chief Mpezeni said he has accepted Government’s apology but merely wants it formalised.
He wondered why Eastern Province permanent secretary Chanda Kasolo, who had earlier given him permission to address his subjects, later changed his mind.
“People here want to make President Lungu look bad. But I know that the President is well informed,” he said.
And Paramount Chief Mpezeni’s induna George Zulu said in a separate interview that the traditional leader has accepted Government’s apology.
Mr Zulu said Paramount Chief Mpezeni is happy that Government has apologised because he does not want to depart from the path of working with Government.
“I am happy with this honest apology by Government. This is dignifying but it is also an eye-opener that Government and the traditional leadership need to find a lasting solution to this problem so that the two people can continue to live in harmony as they have always done,” Paramount Chief Mpezeni said.
Paramount Chief Mpezeni wants to meet President Lungu and to brief him on the matter in case he was misinformed.
“We want to continue to co-exist. This problem does not need a political solution but an administrative one so that we can continue to live in harmony,” Paramount Chief Mpezeni said.
The traditional leader also urged Government to thoroughly investigate what transpired to establish the truth and tell President Lungu because some security wings have denied using force to disperse the people.
“I wish to appeal to our people in Chipangali to remain calm because this matter will be resolved amicably in the best interest of all,” Paramount Chief Mpezeni said.
On Wednesday, Mr Kambwili apologised to the paramount chief and the Ngoni people for the police action.
But Paramount Chief Gawa Undi, through his spokesperson James Chirwa, has said that: “If indeed the police stopped that meeting from taking place, we feel that was the right thing to do.”
This was said at a press briefing in Lusaka yesterday.
Paramount Chief Gawa Undi said while he enjoys peaceful coexistence with all other neighbouring tribes, Paramount Chief Mpezeni should not go and install a councillor in Chipangali, a Chewa territory.
He said the action taken by the police should not have been a surprise because the provincial leadership had advised that the Ngoni meeting should not go ahead citing security reasons.
“I further call upon all the Chewa to remain calm and not take the law into their own hands,” he said.
Government to open 1 million hectares of land for agricultural purposes across the country
GOVERNMENT is to open 1 million hectares of land for agricultural purposes as well as job creations among the youths across the country.
Agriculture and Livestock Minister Given Lubinda said when he officiated at AgriProFocus Agri-Business Finance Fair at golf course in Chipata yesterday that the Government was intending to open up agricultural blocks in all the provinces like Nansanga agricultural block in Central Province with the view to create jobs among the youths and increase food production of the country.
The minister said the opening up of the 1 million hectares of agriculture activities would enable the Government to feed the larger population through the increased in the food production.
The minister said the Government would reduce unemployment levels after the opening up of farming blocks in the country.
Mr Lubinda also said the country needs to double up of the food production by 60 percent before 2060.
The agriculture and Livestock Minister who was accompanied by his deputy Maxas Ngónga said there was need for farmers to double up the food production and meet the demands of 60 percent of the food production by 2060.
The minister said it was approximately that 8 million Worldwide were suffering from hunger stating that there was need for the farmers to double up the food production in order for the country not to face the food deficit as the population was increasing.
“Approximately 8 million people are starving from hunger and as a country we need to meet 60 percent of food production by the year 2060,”he said.
He called for the crop diversification by the farmers in order to increase the food production in the country.
He also warned farmers against exporting maize to other countries stating that the farmers should follow the rightful procedure in exporting the maize through obtaining export permit.
He explained that the Government of President Edgar Lungu was putting effort to the empowering of the farmers through agriculture sector.
Mr Lubinda said the Government would also put up hammer mills in all the ten provinces.
Speaking earlier AgriProFocus country coordinator Claire Van Der Kleij said the Zambia’s agricultural sector was crucial for the development of the country.
Ms Kleij said all the stakeholders in the agricultural sector have a role to play saying AgriProFocus Zambia aims to improve collaboration between different actors in agricultural value chains by establishing business connections.
She explained that 520 have joined the Agri Pro Focus Zambia and appealed to communities to join the network.
She said the AgriProFocus was aiming to double up the network membership to 1,000.
“AgriProFocus Zambia provides the agri-business forum with a wider network, innovative opportunities and expertise which support us to provide more sustainable quality services to our members,”Ms Kleij said.
And Netherlands Development Organisation (SNV) country operations manager Bwali Ndau said the Zambia agriculture sector comprises mainly the small scale farmers in the rural areas who faces an array of obstacles that inhibit their optimum participation in the Zambian economy.
Mr Ndau said farming entails long cycles of production which require upfront investment in animals,equipment,seeds,fertilisers and other inputs.
He however said small scale farmers were facing problems securing access to credit and were not often served by traditional financial institutions.
He said many small scale farmers were managing their businesses informally and frequently do not have records or financial information that banks require for lending.
He said only an estimated 400,000 smallholder farmers were linked to formal markets in Zambia.
Meanwhile Chipata’s Finance Bank Limited Branch Manager Anderson Zulu said the farmers should start saving to enable them get inputs on time.
Contribution of mining to the development of Zambia has been limited-President Lungu
PRESIDENT Lungu says Government is putting in place policies to address the limited contribution of mining to national development so that citizens can receive meaningful benefits from the exploitation of mineral resources.
The President said his administration wants to move away from policies tailored to position mining as a mere revenue source of Government to that of having an industry that will create broad-based development.
Mr Lungu said this in a speech read for him by Minister of Mines, Energy and Water Development Christopher Yaluma during the official opening of the 5th Zambia International Mining and Energy Conference (ZIMEC) exhibition in Lusaka yesterday.
The event is themed: ‘Zambia’s mining and energy economy 50 years’.
“Contribution of mining to the development of this country has been limited and this has to change in the next 50 years since the focus of Government is to ensure that meaningful benefits trickle down to ordinary people,” President Lungu said.
He said the mining sector will have no excuse but to effectively contribute to the building of a much stronger and sustainable Zambian economy.
“As Government, we are providing a stable and predictable environment and fiscal regime that conforms to international best practices. We are also providing a conducive investment climate that will enhance private sector growth and enhancing necessary policies and regulations to promote effective participation of the Zambian people in the mining supply value chain in order to create wealth,” President Lungu said.
He said there is need to reflect on what can be done to avoid pitfalls experienced in the past 50 years of independence.
President Lungu said in addressing challenges that will ensure a sustainable and strong economy in the next 50 years, people should be mindful that mining is the mainstay of Zambia’s economy and any development in the sector reflects on the lives of people.
He said there have been calls for Zambia to benefit more from mineral resources since the resurgence of the industry after privatisation.
“There also have been concerns on the need for legal and regulatory reforms to improve business environment on one hand and increase benefits for people on the other hand, so we need to go beyond the reforms,” he said.
Earlier, Association of Zambian Mining and Exploration Companies president Geoffrey Mulenga urged Government to expedite enactment of the revised Mines and Minerals Development Act.
“This will ensure security of tenure since exploration takes time and we are happy that taxation issues have been resolved, otherwise some exploration works could have collapsed,” he said.
UNZA Lecturers’ and Researchers want the Vice Chancellor out
University of Zambia Lecturers’ and Researchers Union (UNZALARU) members have demanded the immediate resignation of Vice Chancellor Professor Stephen Simukanga together with three other principal officers at the university.
UNZALARU General Secretary Jason Mwanza in a statement released to QFM News says the members resolved during a meeting held yesterday that Professor Simukanga, the Registrar, Dr Kavwanga Yambayamba, the Bursar, Mrs Barbra Sampa Katoyo and the Librarian, Dr Vitalicy Chifwepa should resign on moral grounds.
Mr Mwanza says the resolution was arrived at following revelations that the four principal officers have paid themselves gratuities and pension and have gone further to pay four former principal officers in the same manner namely Dr Wilson Mwenya, Dr Alvert Ngandu, Mr Boniface Chitambala and Mr Hector Chiboola outside the University policy of first in, first out.
He says if the principal officers do not heed to this resolution, UNZALARU members reserve the right to take any action they may deem fit.
Mr Mwanza adds that the union members during the same meeting dismissed the proposed road the Permanent Secretary of Education, noting that government has still not recognized the urgency of resolving the financial challenges facing the University of Zambia.
He says the members resolved that they will administer and mark examinations but may withhold the results if government does not come up with a clear roadmap acceptable to the members on dismantling contractual obligations.
Zambian’s Zambia’s two Euro Bonds Performing well-Finance Ministry
Zambia’s US$1 billion bond and the US$750 million bond are performing well, making them the best priced bonds amongst African Sovereigns.
In a statement released to the media by Ministry of Finance Public Relations Officer, Chileshe Kandeta, Government said that conditions in the International Capital Market are tapering the performance of Zambia’s two Sovereign Bonds.
According to a market assessment for May/June, Zambia’s US$1 billion bond which matures in 2024 is trading at 107.13 percent. This makes it one of the best priced bonds amongst African Sovereigns.
As at 16th June, 2015, the yield rate for the US$750 million bond stood at 6.97 percent. On the other hand, the US$1 billion bond yield rate was a much improved 7.38 percent compared to 8.625 percent at issuance in April, 2014.
” This trend is within an acceptable trajectory and also signifies the robustness of Zambia’s economic transformation program, ” read the statement.
” It also manifests the steadfastness of the confidence that international investors have in the consistency, predictability and direction of our policies towards socio-economic stability, ” concluded the statement.
Yesterday, Finance Minister Alexander Chikwanda said Zambia will return to the international capital market for fresh borrowing following the widened budget deficit in the first six months of the year which has risen to K 20 billion accounting for 18.5 percent of the GDP.
Mr Chikwanda told Journalists in Lusaka Wednesday afternoon that Zambia is definitely issuing a third Eurobond in four years but refused to confirm that the country will seek to borrow as much as $ 2 billion.
The Zambian government has raised $1.75 billion in two separate Euro bonds since 2012.
And Open Society Foundation is dismayed with what it has described as government’s insatiable appetite for borrowing.
Executive Obbious Chikombola says his organisation is left wondering as to whether the answer to the country’s fiscal quagmire rests entirely on the backbone of borrowing.
Mr Chisala says the effects of gross borrowing are not new to Zambia, stating that it was a s a result of borrowing that the mines were sold for a song due to pressure from the International Monetary Fund and international lenders.
He adds that it was due to this high gearing ratio that Structural adjustment programs were imposed on Zambia which in turn exacerbated the poverty rate in the towns and cities.
Mr Chisala says Open Society Foundation Challenges the government to tell the people of Zambia how they have used the $1.750 Billion Eurobond before they contract the $2 billion euro bond.
He notes that borrowing is no bad provided the money borrowed is channelled towards infrastructure development and capital projects such in the transport and energy sectors.
Mr Chisala says the concern is that $2 billion Eurobond issuance is being planned in response to the looming budget deficit of K20 billion.
He says the country Cannot afford to borrow for consumption, and has since challenges government what expenditure constitutes the K20 billion deficit.
Mr Chisala says his organisation will support the government only when they provide a detailed analysis of the expenditure to which they intend to channel the said Eurobond money.
African Park challenged to compensate Munde farmers
Farmers living inside Liuwa National Park in Munde area are demanding a K24, 000 as compensation from African Parks for 116 sweet potato mounds that were destroyed by wild animals between the 2013/2014 farming season.
Speaking on behalf of other affected farmers, Nalwalo Simangolwa, who is also acting village headman, explained to ZANIS that Munde area had been hit by hunger not because of the poor rainfall pattern but as a result of animals that kept destroying their crop fields.
Mr Simangolwa blamed African Parks, the company managing Liuwa National Park, for introducing new animals into the park hence the demand to ask for compensation from the company.
He explained that villagers lived in harmony with animals that were in the park before the introduction of elands and buffalos.
“The people living in Munde are really suffering from hunger every year because of these animals which were brought by African Parks. When we asked them whether they can find ways in which to control their animals, their response was that it was not their responsibility to control these animals but it is us the owners of the fields,” Mr Simangolwa stated.
Mr Simangolwa wondered as to who was more important between animals and humans, adding that they would never leave the park for the animals.
The traditional leader has since appealed to government and The Barotse Royal Establishment (BRE) to assist the people of Munde to alleviate the hunger situation that had been caused by wild animals.
And Zambia Wildlife Authority (ZAWA) Liuwa National Park Ranger, Safely Mulala, said there was no policy on compensation when animals destroy crops.
Mr Mulala said the ZAWA Act No. 12 was silent on compensation and only gave powers to kill an animal when it became a danger to society.
He advised the farmers in Munde area to fence their fields to prevent animals from grazing their crops.
Government to avoid maize wastage during marketing
Government says it will not allow any maize wastage during this year’s crop marketing season.
And the Food Reserve Agency (FRA) will purchase 7,500 metric tonnes of white maize from farmers in Monze district.
Officially opening a one-day-training workshop for satellite depot supervisors held at Southern Comfort Lodge today, newly appointed Monze District Commissioner, Cyprian Hamanyanga, said government expects all FRA officials to perform to their expectation and avoid any maize wastages during the marketing season.
Mr Hamanyanga said he was impressed with the FRA’s performance in the district last year when it drastically reduced maize thefts and wastages.
He urged all FRA officials in the district not to relent but to perform better than last year by ensuring that the purchased commodity was moved to the holding depots without delay to avoid thefts and wastages.
“It is imperative that this year we perform better than last year by expediting the movement of purchased maize stock from satellite depots to holding depots because the government shall not allow maize going to waste.
“It is for this reason that I implore you as supervisors to perform to the expectation of government so that maize is not stolen and that it is moved to safety before the next rainy season,” said Mr. Hamanyanga.
The District Commissioner also strongly advised the supervisors to be honest beyond reproach in their work to buy the right quantity and quality of white maize from farmers when the exercise commences.
He said government shall not tolerate any malpractices during the maize buying exercise, adding that those who would be found wanting shall be liable of immediate prosecution.
“As you start buying when the maize moisture content drops to the recommended 12.5 per cent, I wish to advise you as satellite depot supervisors to be honest beyond reproach in your work to receive the right quality and quantity of white maize,” said Mr. Hamanyanga.
He further urged the 36 satellite depot supervisors to take the training seriously as an important platform that would provide them with guidance and modalities aimed at preventing crop wastages and thefts to be followed during the 2014/2015 marketing season.
And Mr Hamanyanga said government would buy all the maize that will be supplied by farmers in Monze district and advised the farmers to be patient saying government would soon announce the floor price of maize.
CEEC should work with lands, councils – Chikwanda
Finance Minister, Alexander Chikwanda, says the Citizens Economic Empowerment Commission (CEEC) must work with the Ministry of Lands and local authorities to acquire land for entrepreneurship clusters as a way of supporting micro and medium enterprises.
Mr Chikwanda says such an approach will guarantee the empowerment of people, especially women and youth entrepreneurs in rural areas.
The minister was speaking in Lusaka today when Commerce and Industry Minister, Margaret Mwanakatwe and a delegation from her ministry, made a presentation on the performance of the CEEC at Ministry of Finance headquarters.
And Mrs Mwanakatwe said government was committed to ensuring that more citizens participated in the economy by strengthening the capacity of the CEEC as one way of creating jobs and wealth.
She said CEEC has maintained high standards of governance by ensuring that beneficiaries of the CEEC funds comply with the lending terms so that the revolving capital funds benefit other citizens.
CEEC chairperson, Kasuka Mutukwa, said there is need to scale up the capacity of the CEEC in order to get more Zambians to participate in the economy.
This is according to a press statement issued by Ministry of Finance Public Relations Officer, Chileshe Kandeta.
Lwandamina names final 18 for CHAN qualifier
George Lwandamina has named his final 18-member team to face Namibia this Sunday away in Windhoek in a 2016 CHAN first round, first leg qualifier.
Ten members of the team return to face Namibia a month after losing on post-match penalties to the latter in the 2015 Cosafa Cup quarterfinals in South Africa on May 24 in Rustenburg.
Also making the travelling party is veteran midfielder Buchizya Mfune who is set for his first Zambia cap this weekend.
However, Lwandamina has dropped Zanaco goalkeeper Toaster Nsabata, Napsa Stars defender Boyd Mkandawire,Webster Mulenga from Nakambala Leopards including the Red Arrows duo of midfielder Shadreck Malambo and defender Benedict Chepeshi.
Zambia will host Namibia in the final leg on July 4 with the winner over both legs to face victor of the other first round tie between Mozambique and The Seychelles in the final round decider in October for a place at next years finals in Rwanda.
Goalkeepers: Daniel Munyao (Red Arrows), Jacob Banda (Zesco United)
Defenders: Donashano Malama (Nkana), Christopher Munthali (Power Dynamos), Fackson Kapumbu (Zanaco), Bronson Chama (Red Arrows), Jack Chirwa (Green Buffaloes)
Midfielders:Buchizya Mfune (Green Buffaloes), Paul Katema (Red Arrows), Justin Zulu, Kondwani Mtonga (both Zesco United), Charles Zulu (Zanaco)
Forwards: Winston Kalengo, Jackson Mwanza (both Zesco United), Patson Daka (Nchanga Rangers), Patrick Ngoma (Red Arrows), Allan Mukuka (Green Buffaloes), Jimmy Ndhlovu (Power Dynamos)
Misunderstanding ‘halts’ Freedom Park mall construction
Parliament heard today that the construction of the Freedom Park Shopping Mall in Kitwe district on the Copperbelt province stalled because of alleged misunderstandings between the project owner and the financiers.
Local Government and Housing Deputy Minister Danny Chingimbu told parliament that the owners are Platinum Gold Equity who initially pumped in US$15 million in 2009 towards the project.
Mr. Chingimbu said government has since engaged the Kitwe City Council to find another strategic partner to carry on and complete project.
He disclosed that the new partners will be announced soon after consultations are concluded.
The Deputy Minister was responding to a question raised by Kwacha Patriotic Front (PF) Member of Parliament Boniface Mutale who wanted to find out why the construction of the Freedom Park Shopping Mall in Kitwe has stalled.
Mr. Mutale also wanted to know who the owners of the mall were, what the estimated cost of the project was and what the way forward for the project was.
End Wastage, HH tells Government
UPND leader Hakainde Hichilema has called for an end to the culture of wastage in the use of public resources in light of the rising budget deficit.
Mr Hichilema said the current situation requires serious and immediate action, and a series of measures big and small such as an end to waste.
He said the UPND has talked before about how Government costs are far too high, with Government living beyond its means and leaving the Zambian people in poverty as a result.
In a Facebook posting, Mr Hichilema said Zambians have rightly reacted with concern to the announcement made by the Minister of Finance in Parliament this week that the economy is in trouble and that as a result, the PF Government will be seeking to borrow vast amounts of money in order to try and plug the financing gaps.
‘This from a Government that in the previous 3 years has already accumulated the same level of debt as were accumulated in the 27 years before that sounds bad,’ Mr Hichilema said.
[pullquote]Mr Hichilema observed that for the cost of just one car, Government could pay 50 teachers on K5, 000 a month for a year.[/pullquote]
‘We have compared the cost of the generous vehicle allowance senior government officials are entitled to, which includes two vehicles, maintenance and fuel costs, to the cost of teachers salaries and sinking boreholes,’ he stated.
Mr Hichilema observed that for the cost of just one car, Government could pay 50 teachers on K5, 000 a month for a year.
‘Think about the knock on benefits if this money was spent on teachers and education, compared with when it is spent on buying an imported car,’ he said.
‘Looking at the bigger picture we need to open up sectors that offer strong prospects for growth and job creation. In the UPND we see particular opportunities in this respect for tourism, agro-processing and technology for example.’
Mr Hichilema said by providing a stable policy environment, consulting widely and incentivising investment and business start-ups in these sectors, the UPND government will not only move Zambia forward, but also greatly accelerate the pace of growth and the outlook for the future including creating jobs.
Kalaba reiterates commitment to dialogue with EU
Government has reiterated its commitment in holding annual dialogue sessions with the European Union (EU) ambassadors in order to enhance understanding between Europe and Zambia.
Speaking during the official opening of the EU- Zambia dialogue meeting, Foreign Affairs minister Harry Kalaba said government will regularly engage with the EU in a bid to foster mutual understanding between Europe and Zambia.
Mr Kalaba noted that the annual dialogue sessions between Zambia and EU ambassadors are important as the sessions create a platform to take stock of the progress made on the essential elements of the Cotonou agreement.
He explained that under Article 8 of the Çotonou Partnership Agreement (CPA) provides for holding periodic political dialogue with a view of exchanging high level international information on important matters of mutual benefits.
The Foreign Affairs minister emphasised that dialogue should cover issues of human rights, good governance, migration and the rule of law.
Mr Kalaba said Africa and Europe should continue working towards strengthening the existing partnership between the two continents.
He said the two continents should exploit the opportunities that the new world order offers.
Mr Kalaba said the hosting of the dialogue meeting is a clear demonstration of governments desire to nurture and strengthen the long standing partnership.
And EU representative to Zambia Gilles Hervio stated that trade and investment has been cardinal in cementing the existing relationship between Zambia and Europe.
He said Zambia is the most attractive country to invest in as evidence by the high number of European business missions coming to invest in Zambia.
Mr Hervio said the two continents need each other to foster trade relationships.
ZamPalm pioneers Zambia’s first Palm oil platation
Zampalm in Mpika is Zambia’s first ever palm plantation. The plantation boasts 2,800 hectares of palm plants, which when harvested will produce crude palm oil that is the basic ingredient in most vegetable oils on the market in Zambia.
The locally produced palm oil will enable government to cut back on crude palm oil imports which currently stand at over US$70 million annually.
With its first nursery set up 20 km away from the main plantation site, near Chief Kopa’s palace, Zampalm was keen to get the community involved from the very start.
“This was something new and on a scale that has never been done in the area before so there were concerns on the part of the local community. However, with the help of Chief Kopa were able to communicate what was happening,” said Trusted Mwiinga, who has been in the agriculture sector for over 25 years and has worked on the project from its inception by Zambeef Products in 2009 as Zampalm’s plantation manager.
Getting the plantation up and running was no easy task with little infrastructure in place and at a site that was cut off from the rest of Zambia, so management had its work cut out and only after overcoming the initial setbacks was the project truly able to move forward.
“We had the first seedlings fail due to water stress. Farming requires dedication, especially if the crop is one that has not been farmed before. The seedlings tend to suffer in the winter period but after three years they are able to adjust and cope with the weather conditions. With the help of an expert advice the challenges were addressed,” explained Mr Mwiinga.
“Mpika is a sparsely populated area; what you can see now if you visited the plantation is endless neat rows of palm trees. The landscape looks very different compared to the time when we first came here. It was much like the Kafue plains; full of grass, anthills and the ground was very rough. There was no need for tree cutting because the place was virtually tree-free and no deforestation resulted from it,” he recalls.
“We had no communication network, one had to go to the Boma to make a phone call, which can be very difficult on the family man as that was only possible once a week in the beginning. We also didn’t have five star accommodation or power,” he said of the early days.
The success of the project has resulted in improvement in social amenities such as accommodation, water and power on the plantation and surrounding areas. Over the three years of its existence in the area, Zampalm has employed local people in its nursery, plantation and workshop. There are currently 120 permanent employees and 400 seasonal workers with these numbers expected to rise as the harvesting and production begin.
With an untrained workforce comprised mostly of small-scale farmers, fishermen and hunters, absenteeism and time-keeping posed a problem at first, but with time employees understood the work requirements and adjusted their lifestyle.
And the community residents were able to benefit from skills training in various areas such as weeding, spraying, chipping and construction, all of which were needed for the plantation to operate smoothly. Given that the machinery in question was something that they had never seen before, the training was imperative for a safe working environment.
“The plantation is taking shape and harvesting will commence in a few months and we will be able to see the fruit of our work. There’s been improved accommodation, water reticulation, roads, and I am very happy to be a part of this legacy,” said Mr Mwiinga.
The Zampalm project was launched in 2009 and currently has some 370,900 palms planted over an area of 2,612 hectares in the main plantation, with another 39,000 seedlings in the main and pre-nursery. Zampalm owns 20,238 hectares of titled land, and the intention is to plant a total of 4,812 hectares in 2017 and similar areas in subsequent years as the business grows.
A 2-tonnes-per-hour crushing mill was built this year, with plans for a second 2-tonne plant in 2017 and a further 10-tonne plant in the following year, taking crude palm oil production up to 17,000 tonnes a year.
The total investment cost is estimated at US$41.5 million, of which Zambeef has spent US$20 million so far. At current prices the average production of crude oil of 3 to 3.5 tonnes per hectare could generate more than US$170 million in revenue over the next decade.
The market for edible oils in Zambia, of which palm oil is one component, is estimated at 120,000 tonnes per year, and this is expected to continuing growing as the country develops further.
More than half of Zambia’s edible oil consumption is imported from the Far East, East Africa and South Africa.
Palm oil is the world’s most used vegetable oil and has many different uses in addition to cooking oil. Palm oil and its derivatives are found in foods such as margarines and ice cream, used as a thickener, preservative and antioxidant; as well as in personal care products such as shampoo, and cosmetics; industrial products such as lubricants paints and inks; and as a renewable fuel.
Once fully operational the plantation will contribute to substituting 70,000 tonnes of cooking oil imported into Zambia, saving the country around US$70 million (K511 million) in foreign exchange outflows every year.
While Zambia is not a traditional growing region for palm oil, lower yields are expected to be outweighed by the competitive advantage of being closer to consumers in the region given that the cost of importing edible oil from the Far East can account for around a third of its retail price.
In addition to the commercial and economic benefits of the Zampalm plantation the initiative has provided a number of social and environmental benefits, including the creation of employment and infrastructure in the remote community in the area, which has high poverty levels.
Traditionally, the Bisa people in the sparsely populated area of Senior Chief Kopa were fishermen, hunters or cassava farmers. Since Zampalm was launched there are now shops springing up and economy growing, changing livelihoods.
People can educate their children and improve their houses, with thatched roofs replaced with iron sheets; some children are now going to high school; people can buy new clothes; and health has improved, said Mr Mwiinga.
There are two government health posts that are 15 and 20 km away but Zampalm has provided transport to the clinics, including an ambulance to Kopa clinic and Mpika District Hospital.
Zampalm is also planning an outgrower scheme with the company providing seedlings. It has already given the nearby school 100 seedlings to plant.