PRESIDENT Banda yesterday commissioned the construction of the US$2 billion Kafue Gorge Lower Hydro-electric Power Station which will add 750 megawatts of power to the national grid once completed in 2017.

The project, which will create about 300 direct jobs for indigenous Zambians, is being implemented under the public- private partnership made up of Zesco, Sino Hydro Corporation and the China Africa Development Fund.

Speaking at the ground-breaking ceremony in Namalundu Gorge in Kafue, Mr Banda said the power station is one of the most important components of Government’s strategy to meet the growing energy demand in the country and the region.

“The energy sector is essential for the smooth functioning of our industrial sector and must be expanded as quickly as possible. Zambia’s power needs have been increasing faster than projected, largely due to the rapid growth of our economy which has averaged 6.4 percent over the last six years,” President Banda said.

The mining and agricultural sectors have registered increased growth during the last five years. The mining sector grew from 2.5 percent rate in 2008 to 15.2 percent in 2010, while agriculture grew by more than 6.6 percent in the same year.

The President said the growth rate must be planned ahead to keep pace with the rising demand for power.

Mr Banda said Government’s strategy is to facilitate the growth of small businesses in rural areas, by initiating more rural electrification programmes through Zesco and the Rural Electrification Authority.

President Banda said the strategy is designed to support agriculture and other formal and informal businesses which create employment in rural areas.

He said communities do not immediately see the long-term benefits of large-scale projects like the Kafue Gorge Lower Hydro-power Station and it is necessary to ensure that the communities see rewards from such projects.

“In this case, the commencement of this project will open up opportunities for employment and enhance the overall development of Kafue Gorge area,” he said

The project will entail building new roads, houses, hospitals and schools while some existing infrastructure will be expanded.

He said the project will boost local businesses including small and medium enterprises dealing in cement, steel and other building materials which will be sourced locally.

President Banda said besides power generation, Government is also paying close attention to the power distribution and transmission system.

Government has initiated measures to improve the efficiency of the power distribution system and ensure its expansion beyond urban centres to rural areas and communities where electricity is on high demand.

Minister of Energy and water Development Kenneth Konga said the implementation of the project is an indication that Government’s policies are being effectively executed.

Southern Province Minister Elijah Muchima said it is painful that opposition parties have continued to condemn President Banda’s administration even when Government is implementing projects like the Kafue Gorge Lower project.

Chinese ambassador to Zambia Zhou Yuxiao urged Syno Hydro Corporation to employ local Zambians and pay them rewarding salaries.

Mr Zhou said the contractor should also ensure that it observes labour laws and respects its employs.

He said by the end of 2010, China’s investment in Zambia has accumulated to about US$2 billion, covering sectors like mining, power generation and transmission, infrastructure, agriculture, manufacturing, tourism and telecommunications.

Special assistant to the president of Sino Hydro Corporation Wang Minsheng said his company is committed to the completion of the project in time.

[Zambia Daily Mail]

The Nakonde border in Northern Province has been temporarily closed following a strike action by striking Tanzanian truck drivers who have became violent this morning.

There was tension at the border post as the irate drivers ran amock bringing business at both Tunduma and Nakonde border to a stand still. They set even attempted to set on fire a fuel tanker belonging to one of the companies in Tanzania carrying fuel destined for Zambia .

However, quick action by the Zambia Police and their Tanzanian counterparts saved the fuel tanker from being set on fire. The tanker has since been escorted by armed Zambia police officers and it is parked at Nakonde police station.

The strike action by the Tanzanian truck drivers which has entered day-4 today failed to be resolved yesterday during a meeting addressed by the Mbeya Region minister John Mwakipesile at Tunduma border in Tanzania yesterday afternoon.

Paramilitary police officers in both Zambia and Tanzania are keeping vigil as striking drivers stand in groups possibly planning the next move.
The chanting drivers said their strike action can only be called off after their grienvances have been met in full.

The international drivers are now demanding to be addressed by the Tanzanian Republican President Jakaya Kikwete or his vice president saying their issue is very serious and should be addressed by senior Government officials and not regional officials.

They have vowed to continue with their strike action saying time has come for them to speak and demand for what is right and good for them. One of the drivers, Musa Mwaiseki said their issue needs serious people to sort it out.

Mwaiseki said no amount of threats would stop them from demanding for what is due to them. He said all what the drivers are demanding for is an increased salary and improved conditions of services.

Yesterday striking drivers told ZANIS they will continue with their strike action until their demands are met in full. Joseph Johns said they have decided to go on strike because they have suffered for a long time adding that it is high time that they are given what is due to them.
Johns said the transporters are given enough money by the owners of the goods but give their drivers very little. “We have all the information concerning how much our employers are given because we have managed to access some contract forms between our respective companies and the owners of the goods we are carrying to either Zambia or the Democratic Republic of Zambia (DRC) and we just wonder why they give us very little,”said Johns.

The strike action has affected revenue collection by the Zambia Revenue Authority (ZRA) and the Road Transport and Safety Agency (RATSA) offices at Nakonde.

Yesterday one of the drivers Mohammed Aziri told ZANIS in an interview at Tunduma that they have agreed as drivers not to resume work until all their grievances are met.

Aziri said truck drivers are demanding for increased salaries and improved conditions of service. He said Tanzanian truck drivers were the least paid in the region adding that drivers are also demanding for risk allowance to be paid to each driver before goods are loaded onto the trucks because some of the goods they carry are highly risky though no risk allowance is given to the driver.

Muhammed Aziri said other drivers in the region like the South Africans are always given risk allowance but wondered why Tanznian transporters can not give the same allowance to its drivers. The truck driver also complained that the travelling allowance given to them in Tanzanian shillings is not enough because they have to change the money to other currencies depending on their destination.

Another driver Ali Mohammed said the expenditure from the time they load the truck to the time they ofload is too much compared to how much they are given by the owners of the trucks.

Mohammed said they are a lot of charges they have to pay when in transit such as parking fees at Nakonde dry port which has to be paid from their own pocket because the transporter does not give them money to carter for such expenses.

ZANIS

FIRST Quantum Minerals’ Zambian Depositary Receipts (ZDRs) are expected to be listed and admitted to trading on the Lusaka Stock Exchange (LuSE) today, the mining company has said.

The company says the ZDRs will trade on the LuSE under the symbol FQMZ (ISIN ZM0000000375), according to a statement issued by the company and availed to the Mail yesterday.

“Further to prior announcements, Renaissance Capital and First Quantum Minerals (FQM) Limited are pleased to confirm that following closure of the offer period, First Quantum’s Zambian Depositary Receipts will be listed and admitted to trading on the Lusaka Stock Exchange from 09:00 on Wednesday July 20, 2011.”

“Each ZDR will represent interests in First Quantum’s underlying Common Shares (TSX: FM). An allotment announcement with full details of the listing will be published prior to listing,” the company said.

LuSE chief executive officer Beatrice Nkanza hailed First Quantum for becoming the first mining company to issue shares on the local stock exchange, adding that the listing avails Zambians the opportunity to invest directly in the company.

“The capital market is very excited about this development and establishes the LuSE as a prime listing destination for multinational mining companies operating in the region,” she said.

Commenting on the listing, Pangaea Renaissance Securities Limited chief executive officer Ceaser Siwale said, “The First Quantum listing has been very well received by Zambian investors, and we at Renaissance Capital are delighted to have worked with First Quantum to bring this landmark transaction to the Zambian market.”

Renaissance Securities are the book runners for FQM.

FQM resident director Kwalela Lamaswala said the listing is in recognition that Zambians are important stakeholders of First Quantum and creates another way for Zambians to identify with and participate in the growth of the company.

And THERE was impressive activity on the Lusaka Stock Exchange (LuSE) last week with turnover sky-rocketing to a massive K25 billion from the previous week’s K8.7 billion.

According to LuSE Weekly News for July 15, 2011, a total of 9, 558,050 were transacted in 182 trades, yielding a total turnover of K25 billion.

This is compared to 2,747,950 shares that were transacted in 64 trades yielding over K8.7 billion.

LuSE attributed the highest volume to trades in Shoprite shares amounting to 4,248,189 shares worth K17 billion.

Overall trading activity occurred in 15 listed stocks namely; BP Zambia, Cavmont Chartered Holding Zambia, Copperbelt Energy Corporation, Lafarge Cement Zambia, Farmers House, Investrust, Standard Chartered Bank Zambia, Zambeef Products and Zamefa.

Trading activity also occurred in Zambian Breweries, Zanaco Bank, Zambia Sugar, African Explosives Limited Zambia and BATA Shoe Company.

LuSE indicates that the all-share index closed at 3,931.47 points down by negative 1.45 percent from 3,989.43 points over the previous week ending July 8, 2011.

On year-to-date in Kwacha terms, the index which measures performance of stocks on the stock market rose by 18.99 percent. The stock exchange also recorded 2,450,139 rights worth K247,014 in Investrust letters of allotment.

THE Jesuit Centre for Theological Reflection (JCTR) says the reclassification of Zambia as a lower middle income country is commendable as it comes in the wake of improved macro-economic indicators, including sustained economic growth and improved credit rating.

JCTR social conditions programme manager Miniva Chibuye said in a statement issued in Lusaka yesterday that the reclassification is a good thing for the economy and more investors are likely to be attracted to Zambia.

Ms Chibuye said the major concern for the JCTR is that social development indicators are not improving at the same rate.

Ms Chibuye said the reclassification announced by the World Bank last week, is also marred with challenges in terms of accessing concessionary loans and development assistance, which are normally meant for low income countries.

She said the aspects must be firmly considered and planned for as they can potentially compromise the achievement of Millennium Development Goals (MDGs) including MDG one, on halving extreme poverty and eradicating hunger by the year 2015.

Ms Chibuye said it is important to improve socio-economic indicators and enhance access to income and basic household needs.

She said Government must continue to focus more on improving the human development indicators for the lower middle income status to be more meaningful to citizens.

She also said Government should find sustainable ways of raising domestic revenue to improve the lives of Zambians who are still poor.

The World Bank recently reclassified Zambia and Ghana as lower middle income countries, following the annual assessment of poor countries.

The Bank’s re-assessment is based on the value of a country’s GNI. This means that per capita income for the two countries is now above the low income countries’ threshold of $1,005.

Countries that are considered to be in the lower middle income category are those with GNI ranging from $1,006 to $3,975 per person per year while upper middle income countries have a per capita income ranging from $3,976 to $12,275.

[Zambia Daily Mail]