Social Economist and business consultant Kelvin Chisanga says Zambia should revert back to the old system of reviewing fuel prices after three months.

Mr. Chisanga said the monthly review of fuel prices by the Energy Regulation Board (ERB) is costly to the business community.

He observed that on business and investment fronts the new system doesn’t give stability in the prices of the commodities.

Mr. Chisanga said the regular revision of fuel prices in Zambia is further negatively affecting the Oil Marketing Companies.

“Monthly fuel cost calculator, possible inflation driver. Out of curiosity and peculiar interest too, I have said this many times before that the monthly fuel cost calculator which the Energy Regulation Board (ERB) embraced in Zambia, as a key model of controlling availability of fuel and/or oil commodities, is costly in many ways. Firstly, on business and investment fronts it doesn’t give stability in the prices of the commodity. Secondly, it doesn’t have a sense of comfort in terms of security of supply with this crucial component of the productive element which is highly required at all sectorial levels considering the structural shape of our local economy,” Mr. Chisanga said.

He said there is also a need to increase the fuel storage capacities through private public partnerships (PPP) so that the nation can have outstanding security of supply.

“As it actually runs some losses on the part of OMCs as well due to many plethoras of factors that can be put for consideration, it is indeed now very difficult to make some sound business projections and to work on predictability of future investment patterns. There is a need for stakeholders to make some conscious decisions which should be bold enough to revert to three month procurement cycle, and also to work on increasing the fuel storage capacities through private public partnerships (PPP) so that the nation can have outstanding security of supply, if possible place in key productive areas of our domestic economy across the country,” Mr. Chisanga said.

He also proposed the removal of the fuel levy slapped on all petroleum commodities at the pump station.

“Also, the government policy makers should disband “fuel levy” slapped on all petroleum commodities at the pump station, and turn this into “stabilization and recovery levy” to be used as a special cushion in cooling spikes from sudden price-growth, as it can be used for appropriate utilizations, especially as and when the markets tend to go in a negative direction with this essential economic commodity. On the inflation patterns, we expect the base effect to continue making some positive developments though with minimum impact towards the target band of 6-8% policy corridor,” he said.

“However, we have also noted that the Kwacha has continued sliding with some nominal loses due to the sustained effects being experienced in the supply factors, coupled with a pick-up seen with the demand which is emanating from the importers and corporate buyers, this is work contrary to the expectations despite the exporters and sellers making statutory monthly obligations. It is advisable to keenly observe these two factors, thus foreign exchange market fundamentals and oil price structural movements, so that we don’t spike inflationary pressure again like we saw last year,” Mr. Chisanga added.

He concluded:”Finally, it is well cognizant to state that there is still positivity and goodwill that are taking force, and this has given us a lot of hope considering the macroeconomic development seen so far from the number of reductions, we are also seeing being recorded in key economic variables such as inflation development, slow-paced movement in exchange rate and moderate activities observed with the trends of COVID-19 cases.”

Government has released K805 million for Constituency Development Fund for first quarter for 2021.

Minister of Local Government and Rural Development, Gary Nkombo announced that the Treasury has ok March 30, 2022, released a total of K805 million of the Constituency Development Fund-CDF.

Mr Nkombo said the amount which is for the first quarter of this year, will be shared among all the 156 Constituencies countrywide.

He said that the funds released are earmarked for various community projects, youth and women empowerment for the first quarter of this year.

Mr Nkombo said, of the K805 million released, each Constituency will receive K5.1 million for the first quarter to enable them implement various developmental projects.

Meanwhile, Ministry of Local Government and Rural Development Permanent Secretary Wisdom Bwalya announced that each constituency has been allocated over K6 million for the first quarter.

Mr Bwalya made the announcement when he closed a virtual workshop on CDF Guidelines orientation for provincial Permanent Secretaries and provincial government heads of departments today.

“Let me at this stage make a mention that government has finally released the funding for the first quarter to the tune of K6 million plus for each every constituency in the country, we are talking of 156 constituencies,” Mr Bwalya said

Mr Bwalya disclosed that all the councils will receive the money in their accounts by tomorrow, with those who are banking with ZANACO starting to receive the money this afternoon.

“As a Ministry we are doing our part and some of the districts that are dealing with ZANACO should be getting funds this afternoon,” he said.

The Permanent Secretary further appealed to provincial permanent secretaries to ensure accountability of the funds and warned the councils against laxity in the procurement process of developmental projects.

“My appeal to the permanent secretaries is that let us keep an eye so that these funds are prudently utilised,” Mr Bwalya said.

He also noted a challenge of slow utilisation of funds as something that should not be allowed.

“The challenge that we are likely to encounter, Provincial Local Government Officers, is to allow laxity on the part of local authorities of funds not being utilised and thus denying our people the much desired development,” Mr Bwalya said.

He warned that such laxity shall not be forgiven as it will deny the people of Zambia the development they desire.

“And I think we will not be forgiven for this because for a long time people have been crying for this development,” the Local Government Permanent Secretary said.

“My appeal is to everyone that is involved in this process to ensure that we speed up the process, project should be expeditiously implemented, taking into account the need for accountability,”

He also urged provincial Permanent Secretaries to provide strict oversight in the utilisation of the CDF funds as they are meant for the public.

“I thought I should make a mention and appeal to provincial permanent secretaries, who provide oversight at provincial level. These funds, especially for local authorities, they belong to the public, councils are just there as managers of these funds under the eyes of the Provincial Local Government Officers,” Mr Bwalya said.

Energy Minister Peter Chibwe Kapala says ZESCO will buy poles, associated electric materials and equipment from international and primary sources and not from middlemen.

He says ZESCO is being driven by the urgent need to dismantle the backlog of 60,000 customers pending connections by end of the year.

He has admitted that the approach to buy from South African and Zimbabwean primary sources may inadvertently disadvantage local entrepreneurs, middlemen and enterprises.

He says this is because ZESCO will not participate in political or empowerment schemes of growing local businesses. He says that ZESCO will also not be available to be used to meet political objectives.

He says buying poles from abroad will serve trees in Zambia and mitigate against climate change.

Below is MR. Kapala’s statement

AVOIDING MIDDLE-MEN IN PROCUREMENT IN THE ENERGY SECTOR

The New Dawn government is committed to ensuring universal access (100% coverage) to electricity for our people. To achieve this goal by 2030, ZESCO and the Rural Electrification Authority (REA) have to double their efforts in connecting people to the national grid and mini-grids. This means dismantling the backlog of connection applications that have been pending and building up for years.

Even though we need more power generation to cater for future demand and even new connections, the current installed capacity is adequate in the short term. The areas that need urgent attention and work in the short and medium term are the transmission and distribution of electricity to the end user.

Our plan is that all 60,000 pending connections have to be cleared by ZESCO by the end of this year. This means that ZESCO needs to have all materials needed to make this happen. The national power utility is therefore in the process of procuring treated poles, insulators, earthing materials, cross arms, transformers, cables, etc so that when our people apply for connections they are not simply placed on a waiting list but are connected upon paying the fees and meeting all conditions as per guidelines. Based on the ever-rising numbers of pending connections necessitated by years of no or few connections being made, the quantities of poles and other materials to be procured will be very high. This effort to procure these materials will cost a lot of money and it is prudent for ZESCO and REA to procure their materials – including treated poles – from manufacturers and primary sources as opposed to getting them from middle men, whether Zambian or not. In procuring from the source, ZESCO may be seen not to be empowering the Zambian middle-men and not helping these to increase their entrepreneurial capacity. However, the strategic objective here is not to grow Zambian businesses through ZESCO procurement but to connect as many Zambians as possible through the efficient and effective use of the budget available for this exercise by buying materials, equipment and tools at factory costs. The New dawn Government believes that ZESCO has to stick to its core-business and not being used to meet political objectives. Our government will ensure that politics remain in the political arena.

The long term gain from this approach is a serious reduction in cutting down of trees for making charcoal and hence the slowing down of deforestation in Zambia at a time we are facing effects of climate change. This effort will reduce dependence on charcoal and also speed up the economy as many business premises that have been awaiting power connections will come online and start contributing to the GDP in earnest.

Further, my office is also working with other arms of government to see how best to respond to the new world order that has changed the way the petroleum products are now being bought and marketed. Whereas we are not going back to subsidies in the face of increased international prices of oil products, we plan to do bulk buying from June 2022 onwards. Government will work to ensure that we accurately calculate the shipping costs, mark-up on transport, and other costs to get the pump price and avoid the end-user having to pay even higher costs. The full details and modalities of how we shall work with the Oil Marketing Companies (OMCs) and how we shall package these bulk purchases will be communicated to stakeholders and the public as we approach the month of June this year. Suffice to mention that the policy direction remains that INDENI will become an OMC to manage, among other things, government fuel depots, blend fuel, undertake fuel marking and possibly produce ethanol to be used in blending and in the manufacturer of medicines. It will not be used for bulk crude oil purchasing and processing.

As part of the reforms in the energy sector, we commit ourselves to ensuring efficiency and effectiveness in the supply chain. Lastly, we shall continue to work towards having large storage capacity for oil products to always ensure we can withstand shocks when unforeseen circumstances lead to disruption in the supply chain.

Good afternoon.

Hon. Eng. Peter BB Chibwe Kapala
Minister of Energy
30. 03. 2022

Airtel Networks Zambia PLC recorded a profit after tax of K693 million in the period ending 31sth December 2021, from a negative K341 million in the prior year.

Speaking during an annual general meeting held on Wednesday, Airtel Zambia board Chairperson Monica Musonda says the highlights for the year under review include an increase in the customer base by 19%, with total revenues up by 37%.

Ms Musonda says the profit recorded was mainly driven by revenue growth, strong operating efficiencies and appreciation of the Zambian Kwacha.

She adds that these results were also driven by increased investments in network infrastructure and distribution especially in rural areas, with a keen focus on providing Voice and Data services to under-served communities.

Ms Musonda further states that the development of affordable products and services has driven subscription retention and acquisition.

He says the board has since recommended a final dividend of K2.40 per share which will be paid to all ordinary shareholders who are on the register of members at the close of business on or about 29th April 2022.

Zambia drew closer to launching its own satellite with the establishment of a committee of experts to spearhead the process.

The 20-man Technical Steering Committee on the National Space Science program is expected to develop a roadmap and implementation plan for the launch of a space satellite in the next two years.

Minister of Science and Technology Felix Mutati during the unveiling of the committee expressed confidence that the experts appointed to spearhead the development and coordinate activities for the development of space science will do a good job.

Stephen Simukanga, Director-General of the Higher Education Authority assured that the team was ready to start doing its work.

Last year, Mr. Mutati said it was imperative for the country to have its own satellite because the current situation where the country borrows space from other satellites was limiting access to data.

He said having a satellite will go a long way in having timely data to inform decision-making.

Mr. Mutati however, said this would be backed by the development of a science policy.

“I wish to report back to the nation on the progress made towards our target to launch a Zambian owned satellite in order to improve on data capture for the benefit of many sectors of the economy. We have inaugurated a 20 member technical steering committee who have been tasked to develop the national space science program,” Mr. Mutati said.

He said, “This team which is comprised of experts from various sectors of the economy is expected to develop a zero draft national space science policy, develop a framework for regional and international cooperating partners and develop a roadmap as well as implementation plan for the launch of the space satellite.”

He added, “I expect nothing but hard-work from the committee in order for us as a country to meet our targets, as this is a very important agenda by the government towards fostering science, technology and innovation development in the country. I wish to thank all the members for accepting our request for them to sit on this committee.”

Below is the full list of the technical steering committee that has been inaugurated for coordination of activities for the space science program under the National Remote Sensing Centre.

1. Dr Alvert N’gandu (Chairperson) – Expert Engineer

2. Mrs Jane Chinkusu (Member) – DST | Ministry of Technology and Science

3. Mr Succeed Mubanga (Member) – DPI | Ministry of Technology and Science

4. Prof Stephen Simukanga (Member) – Higher Education Authority

5. Mr Morton Mwanza (Member) – Ministry of Agriculture

6. Dr Charles Lubobya (Member) – University of Zambia

7. Representative (Member) – Ministry of Defense

8. Dr Henry Kambafwile (Member) – NISIR

9. Dr Dalitso Banda (Member) – University of Zambia

10. Mr Fred Joe Nambala (Member) – University of Zambia

11. Mr Prospery Simpempa (Member) – Copperbelt University

12. Engineer Jason Mwanza (Member) – ZAMTEL

13. Mr Dickson Chipaila (Member) – ZICTA

14. Engineer Chimfwembe Mutale (Member) – Engineering Institute of Zambia

15. Mr Gabriel Lesa (Member) – Civil Aviation Authority

16. Dr Christopher Lungu (Member) – National Remote Sensing Centre

17. Dr Chiluwata Lungu (Member) – Diaspora Expert

18. Dr Chigomedzyo Ngwira (Member) – Diaspora Expert

19. Dr Remmy Musumpuka (Member) – Diaspora Expert

20. Dr Patrick Sibanda (Member) – Mulungushi University