Suppliers and contractors have expressed happiness with the improved payments to suppliers by Konkola Copper Mines (KCM) following the directive by President Rupiah Banda recently.

The Kitwe District Chamber of Commerce and Industry (KDCCI) said it was encouraged by the improved payments to suppliers by KCM.

And Mine Suppliers and Contractors Association of Zambia president Fanuel Banda said in an interview in Kitwe yesterday that the mining firm had effected payments up to April this year.

KDCCI president Berry Mwango in a statement yesterday said payments had markedly improved following President Banda’s visit to the mine recently and the completion of works on the company’s accounting system.

Mr Mwango said the company, which had not paid suppliers going back 90 days, had managed to pay up to March.

He expected KCM to pay on all invoices for April by the end of the week ensuring that the payment period was reduced to 30 days.

[pullquote]“Following the president’s visit and his plea to the company’s chairman to ensure suppliers were paid, payments have improved,” he said.[/pullquote]

“Following the president’s visit and his plea to the company’s chairman to ensure suppliers were paid, payments have improved,” he said.

Mr Mwango said even the newly completed accounting system that the company had put in place, seemed to have improved payments.

He said the chamber was happy that payments had finally improved at KCM and that through dialogue, a better work environment could be established with the suppliers.

“This dialogue which has led to improved payments is what we have been asking for all along and we can only hope that such interactions will continue,” he said.

And the chamber said the company had not yet implemented the mandatory quality requirements for suppliers.

Mr Mwango said KCM was scheduled to hold a meeting with suppliers on how the system would work and that before then, it remained suspended.

He said the ISO certification was a good system but that it was costly for some business because of the few experts available to give certification.

He said the process of obtaining the ISO certification was prohibitive because of cost but that this would change if more local experts were engaged in the activity.

“We have had interactions with some Copperbelt University experts to consider specialising in such certification because they would be able to do it at a cheaper rate,” Mr Mwango said.

And Mr Banda said the association had met KCM management who indicated that they had made all payments up to April.

He said the mining company was current with its payments to suppliers.

He expressed hope that KCM would remain up to date but feared that other factors could still prevent this from happening.

Mr Banda said despite having high copper prices, KCM still had problems with the high cost of production.

He said that was why the Konkola Deep Mining Project was important to the company, as it would increase the amount of ore extracted.

He said the more the company produced, the more revenue and subsequently, the quicker it would be to pay its suppliers.
[Times of Zambia]

The leader of Zambia’s main opposition Patriotic Front (PF) party says the government’s announcement of a $1 billion Chinese investment to help build an electric power plant is a “cheaply conceived” ploy to garner votes ahead of next year’s general elections.

Michael Sata questions the timing of the announcement saying it is “premature and presumptuous” for the government to make such claims when negotiations with a Chinese Bank to finance the project are still ongoing.

“The whole point is any investment of any magnitude is welcome in any developing country or even in a developed country. But, the reality is where are they building this plant? Because we (the) people in Zambia, we don’t know and our electricity tariffs are the highest in the region. So, we don’t know where they are building it. Probably, they are building it in heaven or in hell,” he said.

President Rupiah Banda’s government announced that China plans to spend $1 billion to help build a power plant to boost Zambia’s electricity supply by 600 megawatts.

An official said the China Development Bank will provide equity amounting to $1 billion for the Kafue Gorge Lower power plant.The government says the Kafue Gorge Lower power plant will cost about $1.5 billion.

But, opposition leader Sata said the government’s plan is not pragmatic.

“Those are wishful thinking, and what they are doing that is a political campaign. We have adequate facilities at the Zambezi River and the Kafue River. We don’t need a need a new Chinese plant. If we wanted to expand our existing facilities…we could extend those, but they are using that for general elections next year. There is nothing realistic,” Sata said.

Local media quoted Energy minister Kenneth Konga as saying the government is seeking to wrap up negotiations with a Chinese bank to ensure that the electricity project will begin as originally planned.

Opposition leader Sata has often been accused of showing hatred towards Chinese investors. He was recently quoted as saying Chinese and other Asian mining firms in Zambia are creating “slave labor” conditions in Africa’s top copper producer with scant regard for safety or local culture – – charges Sata denies.

“The point is I have not condemned any investment worth talking about, but imaginary investment. And, we don’t want human investment we have enough human beings in Zambia; artisans and ordinary laborers. We don’t need Chinese laborers to come to Zambia and to call that investment…I have nothing against the Chinese, but they must the must be realistic and they must be honest and sincere,” Sata said.

Analysts say construction of the electricity plant is scheduled to begin next year, and possibly completed in 2017.

But, opposition leader Sata dismissed the assessment.

“First of all, $1 billion is a lot of money. If it is (a) $1 billion project, where are they building this project? How do you build a project of $1 billion without feasibility studies? How do you build a project of $1 billion without showing the site where this thing is going to be?” Sata asked.

[voanews.com]

Zambia will raise fuel prices by up to 13 percent, the energy regulator said on Tuesday, announcing the second big price increase this year in Africa’s biggest copper producer.

The Energy Regulation Board (ERB) said the prices of petrol and diesel had to rise again, following January’s 15 percent increase, due to higher global oil prices.

“As such the government cannot continue to absorb the high costs associated with keeping pump prices artificially low,” the ERB said in a statement.

It said the petrol price would rise by 13.2 percent and the diesel price by 9.5 percent from Wednesday.

Petrol and diesel would now cost more than $1.50 a litre in remote areas, where prices are generally higher than in urban areas.

[Reuters]

PRESIDENT Rupiah Banda has said Government will review the competition policy in line with the National Development Plan and other business reform programmes to reduce the cost of doing business in Zambia.

Mr Banda said the evaluation of the competition policy according to the National Development Plan would make the country more competitive regionally and internationally.

“I am sure that our efforts in the business reform programme which include trade and competition will enable Zambia achieve its Vision 2030 of becoming a middle-income country,” Mr Banda said.

In a speech read for him by Commerce, Trade and Industry Minister Felix Mutati during the UNCTAD conference on Trade and Competition Policy in Lusaka yesterday, Mr Banda said the role of the competition authority in ensuring equitable access to wealth for all citizens was critical for both economic and social development.

President Banda said there was need to have a system of policy monitoring and evaluation of competition law enforcement in the country.

“I do understand that almost all the countries in the southern region have competition laws and institutional frameworks or are in the process of doing so. I am also aware that there is growing need for collaboration in the enforcement of competition laws,” he said.

Mr Banda noted that competition and consumer protection were important pillars of any result-oriented development initiative hence the role of Government and key stakeholders such as donors and other cooperating partners.

Mr Banda said technical assistance to the developing competition authority was important to ensure that they understand not only what but also how to achieve the objectives of the competition policy on the ground.

He observed that for a country to develop, there was need to trade with other countries of which success in trade was dependent on how a country uses its competitive advantages.

Mr Banda explained that this could not be achieved if the domestic economy from which export goods originate was not a hub of fair competition.

He said it was not possible to attain a sustainable trading system where the trade environment was uncompetitive for fair growth and development of business.

It is for this reason that countries need to have a sound legal system to deal with all matters that would adversely affect trade within their domestic economies themselves before they can reasonably deal with external trade disputes and gain from the same.

President Banda said economic growth in a market economy was based on a competitive environment, which prevents abuse in the market and ensures the production of quality goods and services.

“We encourage large firms to come into our markets and there is also need for our governments to support micro, small and medium size business along side large firms,” he said.

[Times of Zambia]

GOVERNMENT has approved the long-term recommendations of the national indaba which was called by President Banda last year to brainstorm on ways of mitigating the effects of the global economic crisis on the Zambian economy in the short, medium and long term.

Acting Government chief spokesperson Dora Siliya said Cabinet endorsed the recommendations at its meeting held yesterday in Lusaka after careful consultations and considerations of the suggested policy measures.

The salient features of the recommendations of the National Indaba which was held on April 4 and 5, 2009, include economic diversification, changing of mindset within the Government systems and procedures, development of a transparent and accountable system of determining who should be beneficiaries of special support through fiscal stimulus measures and periodical holding of indabas prior to the presentation of the annual budget.

Ms Siliya who is also acting Minister of Information and Broadcasting Services said this in a statement issued in Lusaka yesterday.

She said Government sees the proposed measures actionable and concrete and therefore wishes to adopt them to enhance and sustain the country’s economy in the aftermath of the global economic crisis.

“As you are aware, President Banda’s administration already implemented some of the proposed policy actions from the National Indaba to insulate the country’s economy from the negative effects of the global economic meltdown in the just ended fifth national development plan,” Ms Siliya said.

She said Government managed to successfully mitigate the impact of the financial crisis on the Zambian economy through the use of the recommendations.

Ms Siliya who is Minister of Education said Government has since directed the Ministry of Finance and National Planning to incorporate the recommended policy measures in the sixth National Development Plan and also receive monthly progress reports from the key ministries.

She said Cabinet Office has been tasked to monitor and oversee the implementation process.

Ms Siliya however said two recommendations have not been accepted.

Those are on the establishment of taskforce to oversee the implementation of the recommendations of the indaba and that of the Minister of Finance and National planning be directed to mobilise funds amounting to K5 billion to facilitate the operations of the taskforce.

Ms Siliya said the recommendations were rejected because they are not budgeted for in this year’s budget.

[Zambia Daily Mail]