ZED STYLE

  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...