The Standard Bank Group says Zambia is poised to continue recording strong economic growth with GDP projected to hit 7.3% this year.

Standard Bank Group which trades in Zambia as Stanbic Bank says the Zambian continues to benefit from investment in public infrastructure at road and rail as well as selected power projects.

Standard Bank Group Africa Strategist Yvette Babb said the local economy is expected to accelerate further to 8% in 2014 if the levels of investment and the external sector remain unchanged.

Ms. Babb was speaking in Lusaka this morning during a media breakfast when she made a presentation on the Zambian economic forecast.

“What we see in the short to medium term is a strong GDP growth rate for Zambia, buoyed mainly by increased public infrastructure investments and a favourable copper price. We think Zambia will by 2014 hit the 1 million mark with regard to copper export as key copper projects come on stream,” Ms. Babb said.

She however warned that some key risks from the external front such as a weakened consumer demand in China and the Eurozone.

“We are confident we will see GDP accelerate from 7.3% y/y in 2012, to close to 8.0% y/y in 2014.”

Ms. Babb also warned that Zambia faces a serious risk to budget deficit due to the growth in public sector wages.

“Growth in public sector wage bill will exert considerable pressure on expenditure. Basic wages will rise by 40-50% from Sep 2013 following a 15% adjustment last year. The shift to a single spine salary structure will furthermore be associated with additional once-off costs,” She said.

She added, “This is unlikely to be offset by the savings from the removal of the fuel subsidies or a rise in other revenues.”

Ms. Babb also noted that the removal of fuel subsidies and the looming electricity hike will contribute to increased non-food inflation expectations.

She further observed that the Statutory Instrument 32 which will be effected in July 13 will see export revenues brought onshore but will have no immediate effect on demand for the Kwacha.

Finance Minister Alexander Chikwanda has challenged the power utility company ZESCO to work extra hard and ensure that Zambia becomes the biggest earner in power export in the region.
Speaking shortly before touring the Kariba North bank power station in Siavonga today, Mr. Chikwanda said the Patriotic Front government will not hesitate to provide funding to the ZESCO to in order to address the power deficit in the country.

Mr. Chikwanda observed that Zambia has a comparative advantage to supplying enough power to other regions which cannot be matched with other countries, hence the need for ZESCO to work extremely hard and put Zambia on top class.

The Finance Minister also noted that there is no excuse for the power utility company to continue loadsheding when it has all the equipment to make it necessary to save enough power at their main stations.

And ZESCO Managing Director Cyprian Chitundu affirmed that ZESCO is on course with ensuring that all the works at Kariba north bank are done on time to cut down on loadshading in the country.

Mr. Chitundu pointed out that the project to rehabilitate and upgrade the four generating units is already completed and that it has added 30 mega watts to each unit bringing the total installed capacity to 720 mw.

Vice President Guy Scott has called on foreign investors in the country to make use of local products in their operations.

ZANIS Ndola reports that the vice president made the pronouncements yesterday during the official opening of the new 90 million United States dollars investment at the Zambian Breweries Ndola Brewery plant.

Dr Scott said he was happy that the Zambian Breweries was buying its wheat from the local farmers.

And speaking earlier Sub Miller Africa Managing Director Mark Bowman explained that apart from the $90m plant in Ndola, his company had invested a further $25m investment in the Chibuku plant in Lusaka earmarked for completion by the end of this year.

Mr Bowman said the Ndola plant was one of the modern plants in Sub Miller’s entire African group of companies.

“I am glad to stand here and boast that the Ndola plant is the best plant in all our African group of companies,” he said.

He further revealed that Sub Miller had developed a technique of producing beer from cassava with a plot project in Mozambique, which is expected to be introduced in all the African group of companies.

“Let me also take this opportunity to inform you that we have developed a technique where we are producing beer from cassava and our plot project is in Mozambique but will soon spread to all our African group,” he said.

And Labour Minister Fackson Shamenda who also witnessed the official opening of the plant called on Zambian Breweries to employ local youths in Ndola Central constituency where the is located.

“Am very happy that this plant is situated here in Ndola Central Constituency and as Area MP, am appealing to you to employ the many unemployed youths from this very constituency,’ he said.

He further implored the company to adhere to the labour laws and to maintain a motivated workforce.

And in his vote of thanks Ndola Mayor Davies Chiwala said the opening of the new plant in Ndola would go a long way in revitalizing the city as an industrial hub in the province.

“This new plant will take back Ndola to what it was, because people think Ndola is a dead town, but we are now taking back our status as an industrial town in the province,” he said.

Councillor Chiwala explained that Zambian Breweries was a responsible company which had partnered with the Ndola City Council in solid waste collection.

ZANIS

KONKOLA Copper Mines (KCM) has announced its intentions to cut down the total number of employees by 2,000 from the current 8,263.

But government yesterday engaged the mining firm over its decision saying it would have a bigger impact on the affected workers.

Labour Deputy Minister Rayford Mbulu has since appealed to all stakeholders to remain calm while a lasting and permanent solution to the problem was being sought.

Mr Mbulu said last evening at a press briefing in his office that his office held a tripartite meeting with KCM management and mine unions as part of consultations and engagement to mitigate the impact of staff outplacement.

He said consultations into the issue would continue on Wednesday next week and that all parties agreed that no further statements would be issued until after the conclusion of the ongoing consultations.

Mr Mbulu said “I would like to inform the nation that I have had a fruitful meeting with KCM management and the unions which was convened this afternoon.

“In the interim it is my request that all stakeholders remain calm as we seek to find a permanent solution on the issue at hand.”

KCM has disclosed that the price of copper on the world market has been steadily declining – by 22 per cent in the last year – and macro-economic trends suggested it would remain depressed as such it would be forced to cut on its workforce.

“At the same time, our two key costs – labour and electricity – have been increasing constantly and substantially” KCM Public Relations Manager Joy Sata said.

Ms Sata said that KCM would make every effort to assist redundant staff find new jobs, both on individual or collective basis to increase economic opportunities in the Copperbelt region and around its facilities.

She however said that workers would for now continue working until the issue was resolved amicably with government and other stakeholders.

Production of tea at the country’s only tea company, Kawambwa Tea, may not be possible as the investor who has been holding on to the company for more than ten years has been feeding workers and the Zambian government with unfulfilled promises.

And Kawambwa District Commissioner, Ivo Mpasa, has recommended for the repossession of Kawambwa Tea Company from the Zimbabwean investor who he said has failed to commence production of tea since taking over the company.

Mr Mpasa noted that the investor does not have the interest of the Zambian people and government at heart as he has kept workers without pay for over 40 months and that he has abandoned the country.

The District Commissioner said this when Information and Broadcasting Services Deputy Minister, Mwansa Kapeya, paid a courtesy call on him at his office.

He said workers are willing to start production of tea but the investor has been at large after failing to pay salaries and make remittance to the National Pensions Scheme Authority.

Mr Mpasa appealed to government to move quickly and save the tea estate by repossessing it so that it could be revamped and give people employment.

And the DC has praised government for the construction of roads that will directly link Kawambwa to all the surrounding districts in Luapula and Northern Provinces.
Mr Mpasa said the Patriotic Front (PF) government has exhibited political will in developing Luapula province.

He told the minister that construction works on Pambashe road, which will link Kawambwa to Luwingu and Kasama, was progressing well while the Chiengi-Kaputa and the Kawamba-Mporokoso roads have also reached advanced stages.

He said the President will be invited to commission the 152 km Kawambwa-Luwingu road which will soon be completed.

He further disclosed that two investors have expressed interest in putting up a hydro-power generation plant at Lumangwe Falls which is the second largest water fall in Zambia.

He added that the district plans to establish a sugar production firm in Chief Chama’s area where enough land has since been allocated.

And Deputy Minister of Information and Broadcasting Services, Mwansa Kapeya, said the PF government is committed to developing Zambia by first making it a land linked country via the construction of access roads.

Mr Kapeya said despite Zambia being land locked, government wants it to be economically positioned through construction of roads, hospitals, schools and many other infrastructures in order to allow its people lead decent lives.

The minister, however, noted that the many developmental projects that the government is currently undertaking can only be appreciated by people if the media highlight, educate and inform citizens on government policies and programmes.

The deputy minister is in Luapula province where he is conducting familiarization tours of the public, private and community media houses.

Mr Kapeya has since toured media houses in Samfya, Mansa, Mwense, Kawambwa and Nchelenge districts in Luapula Province.

ZANIS