ZED STYLE

The much-anticipated construction of the Lusaka-Ndola dual carriageway continues to face delays in funding, sparking growing concerns among the public. Originally slated to begin in 2020, the project remains on hold, leaving many disheartened. The Road Development Agency (RDA) has revealed that the official start of the Lusaka-Ndola dual carriageway is now expected in March, marking the latest extension granted to Macro Oceans Investment Limited, the contracted entity. Back in February 2023, the New Dawn Government inked a USD 577 million concession agreement with Macro-Ocean Investment Consortium for financing, constructing, operating, and maintaining the 327-kilometer Ndola-Lusaka Dual Carriage Way, along with rehabilitating the 45-kilometer Luanshya-Fisenge Masangano Road. Anthony Mulowa, the Acting Communications Manager for RDA, expressed optimism that Macro Oceans Investment Limited would secure funding within the stipulated timeframe for project commencement. However, Mulowa cou...

The audit report covering the financial years ending on December 31st, 2021, and 2022 sheds light on the financial performance of Mpulungu Harbour Corporation Limited ( MHCL ). Owned entirely by the Industrial Development Corporation (IDC), MHCL oversees Zambia's sole water-based port, playing a pivotal role in connecting the country to a regional market encompassing the Eastern Democratic Republic of Congo, Burundi, Western Tanzania, and extending to Rwanda and South Sudan. MHCL 's primary function involves facilitating the movement of cargo imported or exported through the Lake Tanganyika Transport Corridor. This encompasses a wide array of goods including cement, sugar, coal, various construction materials, as well as perishable items like poultry and fish. The report reveals a stark decline in MHCL 's profitability, with a staggering 93% reduction from over K4 million in 2021 to approximately K363 thousand in 2022. This significant downturn is primarily attributed to a ...

The Bank of Zambia's Micro, Small, and Medium Enterprises (MSME) Finance Survey report for 2022 has shed light on a concerning trend: 97 percent of MSMEs, primarily local enterprises, struggled to secure start-up capital from commercial banks and other lending institutions. The reasons behind this staggering failure rate are multifaceted, including high-interest rates, limited tailored financial products, and a lack of collateral, among other challenges. The MSME finance survey, conducted and released by the Bank of Zambia, revealed that only 3 percent of enterprises successfully sourced start-up capital from various sources, such as commercial banks, microfinance institutions, government initiatives, NGOs, and community-based financial institutions like saving groups. This leaves the vast majority, comprising 97 percent of MSMEs, with no choice but to seek start-up capital from family and friends. MSMEs, predominantly locally owned businesses, play a crucial role in driving econom...

An Austrian online betting brand, previously acquired by Entain Plc , has made headlines by announcing its departure from the Zambian market. The company cited a change in strategy at the group level, shifting its focus to high-growth markets. Bwin, a global sports betting platform, entered the Zambian market in late November 2022, attracted by the burgeoning online betting sector in the country. However, unconfirmed reports suggest that Zambia was merely a steppingstone for the company, leveraging the market for higher returns. Despite reportedly reaping substantial profits during its two-year tenure in Zambia, Bwin is now moving to reallocate its resources to other regions. In an exclusive interview, Bwin's Country Marketing Manager, Golden Ngandu, refuted claims of leaving due to any irregularities, such as tax evasion or profiteering at the expense of Zambians. Ngandu confirmed the company's strategic decision to exit the Zambian market and emphasized that notice had been g...

  In recent news, the Itezhi Tezhi Power Corporation (ITPC), an Independent Power Producer (IPP) based in Zambia, finds itself grappling with significant financial implications following a decision to write off a substantial portion of its debt owed by ZESCO, the state-owned power utility company. This move, amounting to approximately half a billion US dollars, has raised eyebrows and sparked discussions regarding the circumstances leading to such a decision. The ITPC, a 120MW hydropower project situated in the Kafue river basin, plays a vital role in supplying power to ZESCO. However, a prolonged period of dispute and negotiation resulted in the accumulation of a staggering $780 million debt owed by ZESCO to ITPC between 2016 and 2023. This contentious issue finally reached a resolution with ITPC agreeing to write off $453 million of the receivables owed by ZESCO. Victor Mapani, the Managing Director of ZESCO, confirmed this development, shedding light on the reduction of the debt...

  Airtel Africa has unveiled its latest offering, Airtel Africa Telesonic Limited (‘Telesonic’), a cutting-edge fibre bandwidth service aimed at meeting the escalating demand for wholesale data connectivity in Africa. Leveraging both ground fibre assets and submarine cable systems, Telesonic marks a significant milestone in Airtel Africa's commitment to driving digital transformation across the continent. The primary objective of this initiative is to establish local entities in strategic markets where Airtel Africa operates, tasked with overseeing all fibre assets and managing the operational aspects of the wholesale data business. The company anticipates a lasting positive impact on the African digital landscape as a result of these efforts. Segun Ogunsanya, the Group CEO of Airtel Africa, emphasized the company's dedication to addressing Africa's evolving digital needs through state-of-the-art fibre-optic solutions. By investing in robust and scalable infrastructure, Air...

In response to the growing concerns of drivers regarding their working conditions, YANGO , the international ride-hailing service, has unveiled a series of measures aimed at supporting partner drivers in Zambia. This move comes after months of thorough analysis of the evolving economic landscape in the Zambian market. Kabanda Chewe, the Country Manager of YANGO Zambia, revealed the initial support measures, marking the beginning of a comprehensive strategy designed to address the needs of drivers. One of the key measures announced is a significant increase in the cost per kilometer within the YANGO  tariff, with adjustments of up to 23% for drivers. Ms. Kabanda elaborated on the specifics of the tariff adjustments, noting that in economy mode, the cost per kilometer in urban areas would rise by 11%, while suburban rates would see a 22% increase. Similarly, in comfort mode, urban rates would increase by 12%, and suburban rates by 17%. For Comfort mode, urban and suburban rates woul...

One of Zambia's prominent feed stores has recently implemented a price hike, impacting the cost of feed by approximately K75, marking a 15 percent increase from K520 to around K595, effective February 19, 2024. This development is poised to ripple through the poultry market, potentially driving up broiler chicken prices in tandem with the escalated feed costs. As per pricelist obtained from Farmfeed Limited, retail prices for standard broiler starter feed have surged by 15 percent. Additionally, standard grower feed prices have climbed by K52, rising from K515 to K567, reflecting a 10 percent increment. The standard broiler finisher feed has also experienced an uptick of K40, ascending from K510 to K550, signaling an approximately 8 percent increase. Similarly, value broiler feed variants have observed parallel escalations. Value broiler starter, grower, and finisher feeds have each seen a rise of K40, elevating their prices from K510 to K550, K495 to K534, and K470 to K540, respec...

  The recent Auditor General's report on the National Savings and Credit Bank (NATSAVE) paints a sobering picture of financial challenges and oversight lapses spanning multiple years. Let's delve into the key findings that shed light on NATSAVE's journey. Financial Struggles Unveiled The report highlights a significant negative variance of K231,644,774 across the financial years ending December 31st, 2020, 2021, and 2022. Losses totaling K213,131,000 in 2020, K81,679,122 in 2021, and K91,263,164 in 2022 underscore the bank's uphill battle in achieving profitability. Missed Targets and Performance Indicators Despite strategic plans outlining ambitious targets, NATSAVE fell short on crucial performance indicators. Return on Equity (ROE) targets of 15%, 10%, and 19% for 2020, 2021, and 2022 respectively were marred by negative ROE figures of 421% in 2020, 298% in 2021, and 85% in 2022, indicating a concerning trend of poor profitability. Similarly, Net Interest Margin and ...

  In a troubling development, over 200 bags of Genetically Modified Organism (GMO) mealie meal, slated for export to the Democratic Republic of Congo (DRC), have been stolen from a Zambia National Service (ZNS) warehouse at Kasumbalesa. The brazen theft, carried out by unknown criminals, has sparked investigations by both the ZNS and local law enforcement. Colonel Mable Nyone, ZNS chief marketing and public relations officer, expressed deep regret over the incident, highlighting the significant loss incurred, estimated at more than K68,000. The stolen mealie meal represents not only a financial setback but also undermines the service's efforts to contribute to the country's economic growth by generating additional revenue. Colonel Nyone issued a stern warning to the perpetrators, emphasizing that they will face the full consequences of the law. Working in collaboration with the Zambia Police, the ZNS is committed to vigorously pursuing those responsible for this act of criminal...

  In a bid to steer inflation towards the target band and anchor inflation expectations, the Bank of Zambia (BOZ) has announced a significant increase in the Monetary Policy Rate, raising it by 150 basis points to 12.5 percent. This decision, outlined by Governor Dr. Denny Kalyalya, reflects the bank's commitment to maintaining stability in the financial sector while fostering robust growth over the medium- to long-term. Dr. Kalyalya emphasized the importance of fiscal consolidation efforts, progress on external debt restructuring, and improved prospects for increased investments in key sectors of the economy. These factors, he noted, are crucial for achieving and sustaining macroeconomic stability. The Monetary Policy Committee, encouraged by these developments, will continue to monitor inflation outcomes, forecasts, and identified risks, including those related to financial stability. Dr. Kalyalya affirmed the bank's readiness to take appropriate action should inflation persi...

  In a courtroom packed with tension and emotion, former Deputy Inspector General of Police Charity Katanga faced the judgment of the Lusaka chief resident magistrate Davies Chiwbili. Despite impassioned pleas from her lawyers to avoid a custodial sentence, Katanga was handed a three-year jail term. The magistrate's decision sent shockwaves through the country's legal and law enforcement communities. Magistrate Chiwbili's stern words underscored the gravity of the situation. The Magistrate emphasized the necessity of holding those in positions of authority accountable, stating that the punishment should serve as a stark reminder of the importance of honesty and integrity in leadership roles.  The case against Katanga stemmed from allegations that she purchased 10 Higer buses worth K26 million using funds deemed to be proceeds of crime. Despite her lawyer Benjamin Mwelwa's arguments for leniency based on Katanga's service to the nation and her previously unblemished ...

  The recent developments surrounding the Konkola Copper Mines (KCM) negotiating scandal in Zambia have ignited a firestorm of questions and concerns about the integrity of the process. From liquidation to ownership transitions and back, the timeline of events presents a perplexing narrative that begs scrutiny. In 2020, the Zambian government, under the Patriotic Front (PF) administration, initiated the liquidation of KCM, citing various grievances against Vedanta, the former majority owner. Accusations of tax evasion and delayed payments to local stakeholders loomed large as Vedanta was ousted, with ZCCM Investment Holdings (IH) assuming full control amidst legal battles. Fast forward to 2021, and KCM, now under ZCCM IH's ownership, faces a critical juncture requiring a $300 million capital injection to sustain operations. However, the newly elected United Party for National Development (UPND) government chooses to explore out-of-court settlements over recapitalization, citing ong...

Zambian Breweries is proud to announce the appointment of Thais Cavinatto as its new Country Director, marking an exciting chapter in the company's journey of excellence and innovation. Ms. Cavinatto succeeds Michelle Kilpin, who admirably led the team from July 2021 and has since transitioned to the role of Country Director for Zambian Breweries' parent company, AB InBev's operations in Tanzania. "I am truly honored to join a company with such a rich heritage and a steadfast commitment to excellence," expressed Ms. Cavinatto. "I eagerly anticipate collaborating with the talented team at Zambian Breweries and contributing to the ongoing success of the company." Bringing over eight years of extensive experience in the global beverage sector under AB InBev, Ms. Cavinatto has held various leadership roles, including her most recent position as Global BEES Vice President, Frontline Transformation. Her tenure saw her spearheading transformative initiatives, s...

In a recent revelation, the Energy Regulation Board (ERB) has come under scrutiny with the release of a report highlighting a surplus exceeding K455 million. The Auditor General's meticulous examination, encompassing financial years 2020, 2021, and 2022, sheds light on both commendable achievements and areas warranting attention within ERB's operations. The report uncovers a surplus revenue totaling K455,875,182, attributed to enhanced debt collection and increased licensing activities in the petroleum and renewable energy sectors. Notably, deficits of K1,527,410 and K13,089,571 in 2020 and 2021 respectively were counterbalanced by a surplus of K44,031,611 in 2022, primarily propelled by sectoral growth. A scrutiny of ERB's financial position reveals noteworthy shifts, including a notable rise in receivables by K55,691,986 from 2020 to 2022, alongside an increase in payables by K17,650,809 over the same period. These fluctuations prompt a deeper examination of ERB's fis...

In a significant development for regional infrastructure, Senior Advisor to the US President Joe Biden on Energy and Investment, Amos Hochstein, has revealed that construction is set to begin on the 800-kilometer Lobito railway line and trade corridor in 2026, with completion expected by 2028. Addressing attendees at the Lobito Corridor Private Sector Investor Forum in Lusaka on February 8, 2024, alongside President Hakainde Hichilema, Hochstein announced that an additional $1 billion in funding had been secured for the project. The Lobito route stands as the shortest path for copper exports from both Zambia and the Democratic Republic of Congo's Copperbelt region. "With the collaborative efforts of the European Union, the African Development Bank, and the Africa Finance Corporation, along with the governments of Angola, the DRC, and Zambia, as showcased at the Global Gateway Forum in Brussels last October, we have mobilized nearly $1 billion to expand the Lobito Corridor,...

  As the current cost of living crisis continues to strain households across the nation, the Jesuit Center for Theological Reflections (JCTR) has stepped forward with insightful recommendations for the New Dawn government. In response to the government's apparent struggle to tackle the issue effectively, the JCTR suggests considering targeted 'ethical' price control measures to alleviate the burden on citizens. Following a recent survey highlighting a further escalation in the cost of living, the JCTR has outlined three key economic solutions in their commentary: 1. Support for Low-Income Households: The JCTR emphasizes the importance of prioritizing targeted support programs aimed at easing the hardships faced by low-income households. This entails implementing robust social safety nets to ensure every individual has access to necessities, aligning with principles of dignity, social justice, and environmental stewardship. 2. Ethical Price Control Measures:  To shield cons...

In a recent turn of events, the Lusaka Magistrate Court made a significant decision regarding the bench warrant issued against Ambassador Emmanuel Mwamba on January 31, 2024. This decision came after Ambassador Mwamba returned from the United States and voluntarily presented himself before the court, seeking to address the issue at hand. Ambassador Mwamba expressed regret to the court for his absence, explaining that he had been advised by his legal counsel that his matter would be adjourned due to their prior commitments in the High Court. However, upon learning of the bench warrant, he promptly cut short his trip and flew back to Zambia to address the misunderstanding surrounding his absence. Moreover, he assured the court that he would seek permission before traveling outside the court's jurisdiction in the future. Magistrate Trevor Kasanda, presiding over the case, acknowledged Ambassador Mwamba's explanation and decided to give him the benefit of the doubt, leading to the ...

In the ever-shifting landscape of economic policies, the recent announcement on the adjustment to the Kwacha and Foreign Currency Statutory Reserve Ratio by the Bank of Zambia (BoZ) has sparked conversations about its implications on the financial ecosystem. This blog post aims to unravel the intricacies of this adjustment, exploring how it plays a crucial role in balancing the Kwacha's value and addressing currency depreciation pressures. At the heart of this adjustment lies the decision to increase the reserve requirements, effectively withdrawing liquidity from the banking system and tightening the money supply. This intentional reduction in available capital for lending by commercial banks sends ripples through the financial ecosystem, prompting a closer examination of its underlying motives. By reducing the availability of Kwacha for lending, BoZ seeks to appreciate and fortify the value of the national currency against foreign counterparts, notably the US Dollar. The logic is...