ZAMBIA is expected to record investments worth US$1.5billion by the end of this year compared to the US$ one billion recorded last year.

Zambia Development Agency (ZDA) acting director for research planning and policy Collins Sifafula said the increase in investments will be driven by robust mining, manufacturing and energy sectors.

Mr Sifafula said this on Tuesday evening at the launch of the United Nations Conference on Trade and Development (UNCTAD) World Investment Report 2011

And speaking at the same occasion ZDA acting director for investment promotion and privatisation Henry Sakala said foreign direct investment (FDI) stocks increased to US$8.515billion last year compared to US$7.4 billion recorded the previous year.

Mr Sakala said Zambia needs to continue to be the investment destination of choice because FDI is a key component of the world’s growth engine.

He said intensifying good economic policies and maintaining a stable political environment are key factors in attracting FDIs.

Mr Sakala observed that the post-economic crisis recovery in FDIs has been slow to take off and is unevenly spread hence the need to attract FDI amid challenges.

The global FDI last year stood at US$1.24 trillion, 15 percent below the FDI recorded in 2007 before the global recession.

“Many uncertainties still haunt investors in the global economy. National and international policy developments are sending mixed messages to the community,” he said.

UNCTAD, however, noted that recovery of FDI flows will continue in 2011 with the expected growth of inflows to be between US$ 1.4 trillion and US$ 1.6 trillion.

“FDI flows are forecast to rise to US$1.7 trillion in 2012 and US$1.9 trillion in 2013,”the UNCTAD report stated.

The expected growth will be stimulated by high levels of cash holdings, low rates of debt financing and rising stock market valuations of transnational corporations.

The report has also stated that the on-going corporate and industrial restructuring, privatisations resulting from rebalancing efforts and unwinding of state support programmes and the growth of emerging economies will also create new investment opportunities.

[Zambia Daily Mail]

THE annual inflation rate for this month has remained unchanged at nine percent.

Zambia has recorded another trade surplus valued at K527.3 billion in June 2011, representing a nominal decrease of about 33.7 percent from K795.6 billion recorded in May 2011.

Central Statistical Office (CSO) acting director John Kalumbi speaking at the monthly briefing in Lusaka yesterday said of the nine percent, food products accounted for 2.8 percent while non-food products in the consumer price index accounted for 6.2 percent.

Mr Kalumbi said the annual inflation rates reduced for clothing, footwear, household fuel, lighting, transport, communication, other goods and services.

A comparison of retail prices between June 2011 and July 2011 shows that the national average price of a 25 kilogramme bag of white breakfast mealie meal reduced by 1.1 percent from K48,522 to K47,987.

The average price of 25kg bag of white roller mealie meal has also reduced by 1.5 percent from K34, 054 to K33, 536.

Mr Kalumbi said the national average price of one kg of tomatoes increased by 5.1 percent from K4,273 to K4,492 while one kg of rape vegetable increased by 14.3 percent, from K2,510 to K2,870.

The CSO also noted price increases in dried Kapenta and dried fish.

Meanwhile, Zambia has continued to record a trade surplus.

“The country exported more in June 2011 than it imported…the country has had monthly trade surplus since January 2011 with the highest valued at K1,484.3 billion recorded in January 2011 and the lowest in June 2011, valued at K527.3 billion,” he said.

Mr Kalumbi said major export products in June 2011 were from intermediate goods mainly copper cathodes and sections of refined copper accounting for about 82.5 percent.

Other exports were consumer and capital goods which collectively accounted for about 17.5 percent of total exports in June 2011.

He said Zambia’s major export destination in June 2011 was Switzerland, which accounted for 52.4 percent, followed by China, South Africa, Democratic Republic of Congo and Zimbabwe.

The five countries collectively accounted for 85.7 percent of Zambia’s total export earnings in June 2011.

Mr Kalumbi said the Southern Africa Development Community (SADC) accounted for the largest market for Zambia’s exports at 22.3 percent, followed by Asia, 16.9 percent, the Common Market for Eastern and Southern Africa (COMESA) 9.8 percent and the European Union (EU) at 3.7 percent.

He said Zambia’s major import source in June 2011 was South Africa, accounting for 34.2 percent, followed by DRC 20 percent, China 12.3 percent, United Kingdom 3.9 percent and India 3.7 percent.

He said SADC accounted for the country’s largest sources of imports at 57.7 percent, followed by Asia 27 percent, COMESA 23.3 percent and EU at 11.1 percent.

[Zambia Daily Mail]

The Lusaka Water and sewerage Company (LWSC)says it has embarked on a project seeking private sector partnership in its maintenance of its water networks.

ZANIS reports the Utility company ‘s Managing Director George Ndongwe explaining that the main objective of the

Project is aimed at improving efficiency of water supply networks.

Mr. Ndongwe explained that his company will subcontract certain functions or maintenance, to Small Medium

Enterprises (SMEs) specializing in water network repairs and leak detection

He explained that in order to achieve the objective LWSC and CDE have embarked on a programme to train SMEs in effective water network repairs and leak detection.

The Utility company’s chief was speaking at a media briefing held at LWSC headquarters in Lusaka today.

Mr. Ndongwe notes that vandalism and breakage of water pipes are some of the major challenges the company encounters.

He said due to vandalism and leakages, the company losses about K 50 billion annually.

“44 percent production is lost through physical losses like leakages which occur sometimes underground and cannot be seen and we have pipes that are which are quite old about thirty years old and can easily burst.

“ Commercial losses are encountered through administrative errors and sometimes incoherence’s in meters reading also lead the company to record losses,” he said.

He notes that empowered with training and skills SMEs be able to help the company address water leakages and will be able to compete on the local market and to become more active in subcontracting or alliances with foreign companies.

He added that the SMEs will be selected through an open and transparent procurement process.

And CDE Director of project Claude Jamati said the project will cost a total of 300 000 Euros.

Mr. Jamati explained that CDE launched a programme to strengthen the capacity in maintenance of water distribution networks in Djibouti, Ghana, Ivory Coast, Kenya, Senegal and now in Lusaka, Zambia.

He said LWSC will benefit from the availability of a pool of trained and motivated subcontractors that will have been oriented to share the aspirations of the company in dealing with water losses.

The CDE is an African, Caribbean and Pacific (ACP), European Union (EU) joint institution created in the framework of Cotonou Agreement. Its objective is to ensure the development of professional ACP enterprise operating in the private sector.

ZANIS

President Rupiah Banda says his administration is determined to create jobs for the people of Masaiti on the Copperbelt by attracting investors to the area.

Mr. Banda was speaking on arrival at the site of the ground-breaking ceremony for the $400m Dangote Cement Factory which will be located in Masaiti District near Ndola.

The President made the remarks as he talked to excited local people who gathered to witness the ground-breaking ceremony for the new factory that will produce one-point-five metric tons of cement per year.

Mr. Banda spent some time with the people including women, men and children who greeted him in the local language and ululated to show their appreciation for the cement factory.

In his speech, President Banda says the Dangote has come to invest in Zambia following President Banda’s efforts to lure foreign investors.

He says Dangote is the first big African company to invest in Zambia and that he is proud of the development.

Dangonte President and Chief Executive Officer Alhaji Aliko Dangote says the investment will further cement the relations between Zambia and Nigeria.

Dangote is a Nigerian based company.

Mr. Dangote says Africa should not wait for investors from outside the continent but promote the growth of local industries.

He has thanked President Banda and former Commerce Minister Felix Mutati for working hard to ensure that the company invests in Zambia

Mr. Dangote has described President Banda as a hard-working man who looks after the people well.

The Dangote President has promised that apart from establishing the cement factory, his company will also invest in its social responsibility obligations by building a hospital and a school in Masaiti.

And Senior Chief Chiwala says he is a proud traditional leader to witness the birth of huge company in his area.

The Senior Chief thanked President Banda and Mr Mutati for attracting Dangote to invest in Masaiti.

[ZNBC]

MAAMBA Collieries Limited (MCL) has submitted a power purchase agreement to the Energy Regulation Board (ERB) for regulatory consent to sell about 300 megawatts of electricity to Zesco Limited from its upcoming coal-powered generation plant.

According to the power purchase agreement, MCL intends to design, finance, build, commission, own, operate and maintain a coal-powered generation plant with a capacity of 300 megawatts (mw) at a cost of US$700 million.

This is contained in a statement issued on yesterday by ERB communications officer Kwali Mfuni.

She said under the proposed agreement, Zesco is expected to undertake the design, engineering and construction of the interconnection facilities for the transmission of power in line with the development and connection agreement between the two entities.

Ms Mfuni said in phase one, the power plant will be able to generate 300mw, and double that capacity under phase two of its development.

She said construction of phase one will soon begin.

“While phase one is set to start soon, phase two will only commence when an off-taker for the additional power to be generated has been identified,” she said.

Ms Mfuni said MCL is seeking regulatory consent as a pre-requisite for securing financing for the project.

The project is expected to be completed in 36 months after the contractor moves on site. A contractor is being identified by the coal firm.

Meanwhile, Ms Mfuni said the board has received another power purchase agreement from Zesco for the selling of power to Botswana Power Corporation (BPC).

She said the power Zesco will sell to BPC is for supplying Kasane, one of Botswana’s border areas.

Ms Mfuni said under the proposed agreement, Zesco is proposing to sell up to 10MVA on firm basis at a voltage of 66 kilovolts for a period of five years.

She said a joint technical committee comprising Zesco and BPC representatives will be established to address the technical and operational issues of the power purchase agreement between the two utilities.

Ms Mfuni said ERB is reviewing the two agreements.

[Zambia Daily Mail]

GOVERNMENT says it will revamp the ammonium nitrate plant at Nitrogen Chemicals of Zambia (NCZ) at a cost of K20 billion before the end of this year.

Minister of Livestock and Fisheries Bradford Machila said the plant will enable NCZ to resume production of ammonium nitrate, used in explosives in mines and will meet the increasing demand for explosives by the mining sector.

Mr Machila, who is also Kafue member of Parliament, said in Kafue on Tuesday that the Ministry of Commerce, Trade and Industry through Zambia Development Agency (ZDA) is currently looking into issues pertaining to revamping the plant.

He said the long-term plan is to ensure that the plant operates at its full capacity and produces both fertiliser and ammonium nitrate so that it performs its intended purpose of serving the mining and agricultural sectors.

NCZ has the capacity to produce 142,000 metric tonnes of fertiliser but currently produces between 20,000 and 30,000 tonnes due to lack of working capital.

[Zambia Daily Mail]

GOVERNMENT has signed three agreements with foreign investors with one meant to facilitate the extension of Chipata-Mchinji railway line to Mpika via Petauke to be linked to TAZARA.

The other MoU is for a railway line covering a stretch of 1000 kilometres from Solwezi to Kasempa, Kaoma to Katima Mulilo up to Namibia through Walvis Bay.

The third agreement is for railway to cover Nseluka near Kasama in Northern Province from TAZARA to link to Mpulungu port.

Permanent Secretary for the Ministry of Communication and Transport, Dominic Sichinga in an interview said Government has achieved a lot in the last couple of years in terms of focusing on what needs to be done in the railway sector.

The three memorandum of understanding (MoU) signed this year by the Ministry of Communication and Transport are part of Government’s plan to enhance development in the railway sector.

“This year alone, we have signed three major agreements for rail development. Last year Government completed the long awaited 24 kilometre Chipata-Mchinji railway line that was opened by President Banda,” he said.

He said the agreement for the Chipata to Mpika railway is for a year’s feasibility study and the potential investor is on the ground carrying out the works.

He said the railway line to connect Nseluka near Kasama in Northern Province from TAZARA to link to Mpulungu port is a stretch of 200 kilometres, signed with a company to carry out a feasibility study.

Mr Sichinga said the line once fully developed will open up Mpulungu port to greater volume of trade.

Mpulungu port is Zambia’s gateway to the great lakes region.

“The trade volume has doubled at Mpulungu port from the time Government took over; we have seen new products such as steel which we did not have during the time of the concession.

With the railway link, it will be a gateway to the great lakes region,” he said.

He said Government has also settled the dispute with North West railway that will build a line from Chingola to Jumbe, a border town with Angola adding that the new permit will soon be granted.

“These are not small projects but million dollar projects. Once they are fully functional, they will complement the two railway systems that we have in the country, Railway System of Zambia and TAZARA,” he said.

Mr Sichinga said Government is also interested in seeing the Njanji commuter services functional with modern equipment running through the metro district of Lusaka.

He said the Njanji project is being spearheaded by Zambia Development Agency and has attracted some interested investors that are being evaluated

[Zambia Daily Mail]