Opposition People’s Alliance for Change (PAC) Leader Andyford Banda has backed state power utility ZESCO’s decision to award contracts for the supply of wooden electrical poles to foreign companies.

Despite public outcry, Energy Minister Peter Kapala says ZESCO Limited will go ahead with plans to import electrical poles saying it is more prudent to procure the poles at factory costs from abroad.

Commenting on this development, Mr Banda says there is nothing wrong with ZESCO Limited importing the electrical wooden poles as long as it will cut the costs and enable the institution to save money.

Meanwhile, Former Zaffico Managing Director Fighton Sichone has attributed ZESCO’s decision to the inability by the local market to satisfy the power utility`s growing demand and a lack of private sector players in wood farming.

Mr. Sichone who has challenged stakeholders complaining about this decision to show where local suppliers are beyond the existing contract between ZESCO Limited and ZAFFICO saying there is nothing wrong with the power utility importing wood poles as local supply is failing to meet the ever increasing demand for electricity connections.

He argues that ZESCO’s listing of foreign suppliers dominated by South Africans and Zimbabweans to supply wooden poles for electricity transmission is testament of the lag by the local market dominated by ZAFFFICO to satisfy demand that has also seen the arrival of new players like the rural electrification authority-rea demand among others.

ZESCO Limited has clarified that by December 31, 2021, the power utility had in excess of 67000 pending new connections due to lack of material including a lack of treated wooden poles with the power utility needing over 40,000 of these of which local suppliers can only satisfy about 1.4 percent of requirements.

However, the Timber Producers Association of Zambia has called for the cancellation of the tender for the supply and delivery of wooden poles to Zesco by foreign companies.

Zesco has shortlisted 10 foreign companies for the supply and delivery of 9 and 12 meter wooden poles.
Charles Masange, the Association President said the awarding of a tender to foreign companies amounts to exporting of jobs.

Mr. Masange said Zambia is not short of companies who are capable of supplying Timber to Zesco and has wondered why only foreign companies have been shortlisted.

PATRIOTIC Front (PF) party Acting President Hon Given Lubinda says there is no justification for the price of fuel in the country to be over K26.

Hon Lubinda said the international fuel prices today, are $110 per barrel which could translate to roughly under K17 per litre in Zambia.

“I have said this before that if we were stealing K3 at a fuel price of k15, now that the price of fuel is K26 tell us who is stealing the K11.

“They told us that they will reduce the middlemen, have they done it? Instead, they have even closed Indeni which was supposed to be getting cheaper crude oil to come and refine it in Zambia.,” he said.

Hon Lubinda said the Country is being Governed by business people whose interest is not to serve the citizens.
He said this is why a foreign company has been contracted to supply ZESCO with Poles when that can be done in Zambia.

Hon Lubinda was speaking in Lusaka today, when he went to show solidarity to Hon Raphael Nakacinda who appeared before the Lusaka Magistrates Court in a matter where he is alleged to have defamed the President.

Hon Lubinda said from what has transpired, it is clear that the State is not ready to proceed with the matter.
He said it is important for the state to only prosecute when it is ready to do so. He has wondered how many Zambians will be living on police bond or bail.

“What every ordinary thinking Zambian would have expected from President HH was that he would make it clear that ‘I have been against this law so I would not want it to be applied in my name.’ He has allowed this case to take off when he himself was against the law which arrests people on the grounds of defaming the President. This is playing double standards,” he said

Meanwhile, Hon Lubinda said the party will certainly form Government in 2026.

Hon Lubinda said the party is just on leave from Governing and is building towards becoming the only alternative in the country.

He has since hailed the unity exhibited by PF Members in good and bad times.

Minister of Mines and Minerals Development Paul Kabuswe has updated Parliament on the status of Konkola Copper Mines (KCM) liquidation process.

In a ministerial statement, Mr. Kabuswe said the liquidation of KCM has come with the task of sustaining mine operations by implementing several funding and strategic initiatives.

Mr. Kabuswe said KCM has been split into two subsidiary companies namely KCM Smelterco Limited and KCM Mineral Resources Limited (KMR) with two separate management structures and employee arrangements.

He said the splitting of KCM resulted in transferring of 5,588 employees from the company to the newly formed companies and subsequent payment of redundancy packages at a total cost of US$110 million.

“Konkola Copper Mines (KCM) has been under the full control of the provisional liquidator who has been tasked with sustaining its operations by implementing several funding and strategic initiatives. Effective 1 February, 2021 a decision was taken to split KCM into two separate business units; to improve operational and financial efficiencies. The split was done by formation of two subsidiary companies, namely KCM Smelterco limited and KCM Mineral Resources Limited (KMR) with two separate management structures and employee arrangements. Both companies are currently wholly-owned by KCM (in liquidation),” Mr. Kabuswe stated.

“Madam Speaker, Smelterco comprises the Nchanga smelter & refinery, the Nampundwe pyrite mine, the tailings leach plant, and the old east mill. KMR comprises the mining units (Konkola underground mine, Nchanga open pits and underground mines), support services such as hospitals, schools and corporate offices, the 500 tons per day acid plant, and the tailings dams. Madam speaker,The splitting of the business operations into two companies for the purpose of mining and processing as subsidiaries of KCM resulted in transferring of 5,588 employees from the company to the newly formed companies and subsequently payment of redundancy packages at a total cost of US$110 million. The redundancy package was phased in three (3) equal installments. As at 31 December 2021, the redundancy packages had been paid in full,” he stated.

Mr. Kabuswe confessed that KCM has had operational challenges in the past that include under-investment in the development of ore reserves.

“Following the resignation of Mr Milingo Lungu from his position as provisional liquidator for KCM on 17th March 2022, Ms Natasha Kalimukwa assumed the role of provisional liquidator by operation of law. I wish to acknowledge that KCM has had operational challenges in the past attributed to the following: Under-investment in the development of ore reserves which has resulted in failure to realise economies of scale to cover high production costs; poor de-watering infrastructure; liquidity and capital constraints and significant interest-bearing loans that have increased from us$1.188 billion to us$1.55 billion as at 31st December 2021;low equipment availability; and poor infrastructure among others,” the Chililabombwe Member of Parliament added.

Mr. Kabuswe said the future of KCM lies in the Konkola Deep Project (KDP) which has been partly implemented with the initial sinking of the number 4 shaft at Konkola.

“It is gratifying to note that the picture is showing a positive trajectory. For instance, integrated copper production over the past two months has increased from an average of 4,300 to 6,100 tonnes. This represents a 41% increase in production. It is also worth noting that this is the highest integrated production achieved ever since KCM was placed under liquidation. Furthermore, KCM has put in place plans to increase production to 7000 tonnes per month. I wish to inform the house that the future of KCM lies in the Konkola deep project (KDP). This project has been partly implemented with the initial sinking of the number 4 shaft at Konkola. However, additional work is required to complete the project. The project is estimated to take 4.5 to 5 years of construction, equipping and development before the company experiences increased production and the benefit of the investment,” he said.

Mr. Kabuswe concluded:”The completion of this project will result in the life of mine being increased to about 35 years as estimated by KCM management. Let me conclude by assuring the house that KCM is one of the mining companies in which ZCCM-IH has key interest. To this effect in order to establish the current state of the company, ZCCM-IH is undertaking a number of measures including carrying out review and technical evaluation of the company to ensure that the company is viable and remains competitive.”

Social economist and business consultant Kelvin Chisanga says the huge increment in fuel pump prices will swallow the economic gains Zambia has made in recent months.

The Energy Regulation Board (ERB) has adjusted upwards the pump prices of petroleum products by K4.54/litre for Petrol, K4.68/litre for Diesel and K3.93/litre for Kerosene.

ERB Board Chairperson Reynolds Bowa yesterday said the increase in pump prices is due to the continued strain in global oil supply mainly due to the geopolitical conflict between Russia and Ukraine that has exerted additional pressure on the already escalating oil prices on the international market.

He said these developments have heightened the demand for petroleum products and have increased the cost of importation.

Mr. Bowa explained that prices of finished products on the international markets have gone up steeply and continue to trade above US$ 130/barrel, while on the domestic market, the impact would have been more adverse had it not been for the resilience and marginal appreciation of the Kwacha against the United States Dollar, during the review period.

But Mr. Chisanga has described the increase of fuel prices by a margin of over Four Kwacha as huge.

He said that hiked fuel prices will increase inflation rate and weaken the Kwacha further.

The latest increase means one can only buy three litres of petrol from K100 which is the highest note in the country.

Mr. Chisanga reiterated that the Government should remove fuel levy as one way of stabilizing fuel prices has fluctuated in the last four five months.

“Fuel increment to disturb key current economic performances! As expected from the onset, fuel goes on an upward adjustment tonight, signaling with a big marginal value in its price growth, and as I said this is capable of pushing inflation up for this particular month and fuel in this case remains strongly a possible inflation driver. However, this act of imbalance in the global supply of oil commodity, will strongly aggregate some disorder or realignments in the structural process of the economic path-line, as we are now disturbed to foster a steady domestic growth that we are firmly sure of building up for Zambia,” Mr. Chisanga said.

He said there is a need to come up with strategies of reducing the demanding pressure for all petroleum products.

“It’s like, each time we are looking to get through, on the top economic line of growth then we have something comes up to dismantle all our interesting projections and putative efforts. In economics, we have what we call “shocks” which are usually and basically difficult to control such as COVID-19, fuel supply chain etc but we can build up something to help salvo certain effects that can be incentivized with some relatively good plans,” Mr. Chisanga said.

“With a case of fuel or oil commodity, we seriously need to disband “fuel levy” and change it into “Stabilisation and Recovery Levy” which should be used to cool the demanding pressure for all petroleum products.”

As global oil price conditions continue to tighten under the weight of the ongoing uncertainty around the Ukraine – Russia conflict, the President is urging both citizens and industry players to be extra resilient as the government continues to aggressively work towards stabilizing and ultimately lowering the pump of fuel and improve the general economic welfare of the Zambian people.

According to a statement released to the media yesterday by the president’s spokesperson, Mr Anthony Bwalya, the president said that it is important to note, that in the midst of the potential for economic disruption being caused by fuel pricing disturbances on the global market, there are still very strong signs of positive economic resilience within the local economy as can be seen through government’s ability to follow through on key commitments such as the delivery of Constituency Development Fund, which has so far seen all constituencies receive at least K6m of their CDF allocation, the successful rollout of a much improved social cash transfer program with more than 1 million vulnerable citizens being supported, as well as the implementation of the free education program for children up to grade 12.

“It must also be noted, that as part of increasing economic resilience among the most vulnerable, government has undertaken the payment of salary arrears for local government employees through the discharge of all local government equalization fund arrears, as well as paying all FRA arrears to farmers.

“It must further be noted, that these measures, coupled by the ongoing mass recruitment of health workers, with the recruitment of education workers soon to be unveiled, will go a long way towards mitigating household poverty and economic hopelessness among citizens.

“We are also urging the industry and industry leaders, particularly across the transport and manufacturing sectors, to actively continue working and collaborating with government in ensuring that we keep logistical and production disruptions to an absolute minimum as both sectors play a crucial role in keeping the wheels of the economy turning, ” concluded the statement.

Issued: Anthony Bwalya
Presidential Spokesperson
31 March 2022

The University of Zambia (UNZA) has launched its first UNZA Milling Plant sales outlet to kick start the selling of mealie meal at the Great East Road campus.

Speaking during the launch, UNZA Vice-Chancellor, Prof Luke Evuta Mumba, says the K26 million UNZA Milling Plant is a result of the government-to-government initiative between the Government of the Republic of Zambia and the People’s Republic of China through the presidential milling initiative.

“In July 2017 the Government of the Republic of Zambia graciously agreed to give one of the 3 milling plants donated by the Government of the Republic of China to the University of Zambia,” Prof Mumba said.

The Vice-Chancellor further says the UNZA Milling Plant project will serve two-fold purposes which include developing and offering programmes in milling science, a programme offered only by South Africa and Kenya in the region, as well as the processing of maize into maize products for income generation.

“The UNZA Milling Plant is thus a gift by the Government of the Republic of Zambia to University and, approximately, K26 million significant investment has been pumped into this venture,” he added.

Prof Mumba confirms that the milling plant systems, whose construction works finished last year, have been tested and gauged for effectiveness and efficiency.

The UNZA milling plant has a capacity to produce 40 tons per day and is currently producing breakfast mealie meal (K135 per 25kg bag), roller mealie meal (K100 per 25kg bag), and maize bran (K2 per 1kg).

National AIDS Council has launched a five year civil society engagement and national community led monitoring strategic plan.

National AIDS Council Director General, Connie Osborne, said the two documented strategic plans will help to foster constructive engagement between civil society organisations and the government as well as other stakeholders at national and international level in the fight against AIDS, tuberculosis (TB) and malaria in Zambia.

Ms. Osborne, officiated at the launch virtually, explained that the strategic plan will offer an opportunity for all civil society organisations who are engaged in the fight against AIDS, tuberculosis and malaria to align community action and resources for greater long term impact.

“The civil society organisation strategy is aimed at establishing a framework for empowering civil society organisations in ensuring that there is meaningful engagement with government and other stakeholders for effective response and accountability in health governance,’’ she said.

Ms. Osborne noted that the national community led monitoring strategy is aimed at improving health service delivery at local health facilities at community level through transparency and accountability.

“The national community led monitoring strategy is important because it will give an opportunity to the community to voice their concerns and issues that affect their health right through community action engagement,’’ she explained.

And Churches Health Association of Zambia (CHAZ), Executive Director, Karen Sichinga said resources are becoming highly constrained because of competing global priorities.

Ms. Sichinga said in a speech read on her behalf by CHAZ Head for Advocacy, Planning and Development, Yorum Siame, that the two strategies will help civil society organisations in development, growth and interaction in order to increase the impact in HIV, TB and malaria programming.

She also said community led monitoring will allow communities to gather, analyse and use information to improve access, quality and the impact of services and to hold service providers and decision makers accountable.

‘’Funding for the development of these two documents was channeled through CHAZ from Global Fund. CHAZ pledges to continue ensuring that resources meant for civil society reach them and are utilised for the intended purpose,’’ Ms. Sichinga disclosed.

Meanwhile, Treatment Advocacy and Literacy Campaign (TALC) Secretary, Fred Chungu, said increased community participation and engagement in the decision-making process and in the actual planning, implementation and sustainability interventions will help to sustain the gains that the country has made in the control of HIV, TB and malaria epidemics.

Mr. Chungu said through stakeholders’ engagement at all levels the fight against HIV, TB and malaria will accelerate prevention and elimination programmes of the three diseases.

‘’There is a need to ensure that programmes reach the unreached and address barriers that hinder uptake and use of services in the fight against HIV, TB and malaria,” he said.