DRC ASK ZAMBIA TO CONTINUE SUPPLY POWER DESPITE THE COUNTRY FACING POWER DEFICIT.

The government of the Democratic Republic of Congo (DRC) has pleaded with the Zambian government to allow the power utility firm Zesco Limited resumes power supply to that country.

Upper Katanga Province governor, Jean-Claude Kazembe-Musonda says it is saddening for people in the neighboring country stay in blackout.

Zesco has discontinued the supply of power to the DRC owing to the money owed by that government.

But Governor Musonda noted that it is not a pleasant situation for the people to live without electricity but promised that the DRC government will pay off what it owes Zesco.

Governor Musonda has requested the Zambian government to help in negotiating with the power utility firm to continue the supply of electricity.

He made the appeal to the Zambian government when Copperbelt Minister, Mwenya Musenge, was in Congo recently.

And Mr Musenge said the Zambian government will provide the platform for smooth negotiations between the Democratic Republic of Congo and Zesco for the continued power supply to the DRC.

Zambia is currently facing energy crisis caused by the low water levels forcing the hydro-electricity plant which accounts for over 90 percent of power generation in the country to reduce power generation.

The low water levels in the three main hydro generation plants in the Southern Part of the country have affected power generation.

But ZESCO Limited says it has managed to reduce the power deficit from 1000 megawatts to below 500 megawatts.

ZESCO Technicians working on the power line.

Most sectors in the Zambian economy have sprinkled due to over 4 hours of load shedding imposed by the power utility firm.

The World Bank has further projected the slow in the GDP annual growth from average 6.5 percent to 3 percent in the next 3 years.

KWACHA APPRECIATION DUE TO CENTRAL BANK INTERVENTIONS AND ECONOMIC RECOVERY, HAMAAUNDU.

Financial analyst Maambo Hamaaundu has attributed the appreciation of the Kwacha in the last two weeks to interventions on the monetary side of the economy and not the recovery of the economy.

Mr. Hamaaundu says that the current stability in performance of kwacha is due to several interventions the central bank is putting in place.

Central Bank of Zambia

Speaking in an interview, Mr Hamuundu says there is current appreciation trend in the kwacha can also be attributed to treasury review options by the central business.

He has predicted that the kwacha will fluctuate due to the current political environment.

Mr Hamuundu has since called on government to put in place measures that will ensure the stability during this period.

He observes that government has embarked on a number of interventions from both the fiscal and monetary sides including the review of fuel subsidies and procurement processes.

80 MILLION DOLLARS ZAMBIA SUGAR PRODUCT ALIGNMENT REFINERY PLANT COMMISSIONED!

ZAMBIA Sugar Plc. has commissioned its US$80 million product alignment refinery plant, with President Edgar Lungu assuring government’s desire to prioritize industrialization as a vehicle for economic growth by encouraging investment in value addition to primary materials.

And the President has said he was happy at the level of investment in the manufacturing sector because it directly responded to Government’s policy of ensuring that Zambia became a manufacturing hub for the region.

President Lungu said Government remained committed to creating a conducive and enabling environment for the private sector investment to flourish.
Speaking when he commissioned the Zambia Sugar product alignment and refinery plant in Mazabuka on thursday, the President said the Zambian government will continue with its mandate to create more sustainable jobs for the people through conducive environment for the private sector.

"You agree with me that developing a nation requires concerted efforts by every citizen. One of my Government’s mandates is to create more sustainable jobs and wealth for our people. Therefore, I commend you for undertaking this important project because it will contribute to the economic development of the nation."
He said he was happy with the consistency shown by Zambia Sugar through continuous improvement to the performance of the company
as well as continued expansion to the company's infrastructure.

President Lungu said he believed that Zambia could be a manufacturing hub not only for sugar but a wide range of products.
He said Government through the Ministry of Commerce, Trade and Industry was finalizing Zambia's national industrial policy and the country's investment promotion strategy which would attract more investment once implemented.

President Edgar Lungu officially opens the refinery plant.

"The investment by Zambia Sugar underlines its commitment to the economic growth and prosperity of Zambia, and underlines itself strongly with the Government’s desire for greater levels of direct investment.
"In so many ways, Zambia Sugar meets the benchmark of a good investor that the Government desires in the agriculture and manufacturing sectors," he said
The President encouraged other players in the private sector to emulate Zambia Sugar in supporting the Government’s economic agenda.

Meanwhile, Zambia Sugar Group managing director Gavin Dalglish said the plant would increase overall sugar production from 420,000 to 450,000 tonnes of sugar per annum.
Mr Dalglish said US$60 million out of the US$80 million syndicated financing was sourced locally.
"We have become a significant player in the social-economic development and empowerment of the Mazabuka district and to the national economy," he said.

Mr Dalglish explained that the investment underlined Zambia Sugar's strategy of focusing on growth within its domestic and regional markets.

AFRICA NEEDS FACILITATING INFRASTRUCTURE TO TAP €200-BILLION FACTORING GROWTH, AFRICA EXPORT-IMPORT BANK.

The African Export-Import Bank (Afreximbank) says the continent must put in place facilitating legal and regulatory infrastructure to enable it absorb opportunities associated with factoring volume expected to reach 200 billion Euros in 2020.

Kanayo Awani Managing Director of the Intra-African at Afreximbank says there must also be an expansion of credit insurance, attraction of international factors into Africa, training, and support from governments.

Lausward gas fired pwer plant built by siemens in S. Africa.

 According to the statistics Africa’s factoring volumes, which stood at 24 billion Euros in 2012 would grow to 90 billion Euros in 2017 and 200 billion Euros by 2020, and Ms. Awani, said that there must be improved regulatory reforms and creation of awareness for the continent to reap the full benefits of that growth.In addition to provision of lines of credit to factors, Afreximbank had also been engaged in raising awareness about factoring through educational activities and in fostering the creation of facilitative infrastructure across Africa.

Ms. Awani who is also Chairperson of the Africa Chapter of the International Factors Group, which recently signed an agreement with Factors Chain International forming a single organization, was speaking during the sensitization seminar organized by Afreximbank to promote the Model Law on Factoring that was drafted to guide African countries in preparing national factoring laws.

She notes that because of the very limited knowledge of factoring in Africa, there had been little efforts by governments and global factoring groups to promote it.

She announced that, since 2011, Afreximbank had approved $83 million for factors in Africa and that it was currently assessing factoring lines totalling $90 million.

Ms. Awani added that in addition to provision of lines of credit to factors, Afreximbank had also been engaged in raising awareness about factoring through educational activities and in fostering the creation of facilitative infrastructure across Africa.

BARCLAYS BANK AFRICA COMMITS OVER 180 MILLION DOLLARS TOWARDS IMPROVING SKILLS DEVELOPMENT AND ACCESS TO QUALITY EDUCATION ON THE CONTINENT.


Barclays Africa has reaffirmed its commitment to enhance economic and socio-economic growth on the continent through its Shared Growth Strategy, pledging $93 million dollars to improve skills development and access to quality education.
The Bank has also pledged to raise $89 milloin dollars to help small and medium-sized African businesses succeed and grow, and to ensure that more people have access to digital and non-digital financial services across the continent.
Speaking at a press briefing in Johannesburg, Maria Ramos, Barclays Africa Group Chief Executive said “Shared Growth for us means having a positive impact on society and delivering shareholder value, the two are not mutually exclusive.

Maria Ramos

Ramos says the Bank is applying the substantial resources to provide innovative commercial products, services and partnerships to build a more equitable and prosperous Africa for the next generation.
Ramos says the bank believes that when customers and clients do well, so do the bank adding that communities where bank lives and work thrive, it exists as well.
The Bank believes when society prospers, they all do, But only if they work together – private public partnerships are the key to tackling some of society’s biggest challenges – to deliver on growth opportunities.
“We believe a business can only be successful if it connects positively and creates value with the society in which it operates in,” added Ramos.

“Shared Growth is based on creating shared value. It emphasises the connections between societal and economic progress, showing that they are mutually dependent, and when unleashed can stimulate substantial growth. Companies can, and indeed should, develop deep links between their business strategies and citizenship.

ZAMBIA AIRPORT CORPORATION LIMITED FINED OVER ABUSE OF DOMINANCE.

The Consumer Competition and Protection Commission (CCPC) has fined the Zambia Airport Corporation Limited 3 percent of its annual turnover for violation for violation of section 16 (1) and (2) (C) CCPC Act for the abuse of dominance when it denied another company called ZEGA access to CUTE network, a facility for load control, and charging them US 300 each time they attended to client airline.

The corporation was fined by CCPC following a compliant from ZEGA on 12th and 17th August 2015 that it denied access to the CUTE network which an an essential facility for loading control via ZEGA offices and installations, a system required for purpose of determining weight and balancing aircrats.

It is also alleged that ZACL was accused of charging Ramp Access Fee of close to US 300 each time it attended to a client airline and that ZEGA had an option of either transferring the cost to the airline or internalizing it making its operations expensive.

The corporation is accused of having sought to impose restriction on the use of check in counters for load control and sought to impose a charge on ZEGA after limiting from 6 check-in counters to 4.

It is further alleged that the corporation did not handle cargo themselves and that when they were awarded a tender to handle an airline, they sub-contracted the cargo component and that it only gave the cargo element to NAC 2000 limited which might have been a breach of tender regulations.

ZEGA believed that ZACL had given KLM airline a two year contract of ground handling free of charge, a move that amounted to applying dissimi;ar condition to equivalent transactions.

 And CCPC executive Director Chilufya Sampa said after having considered that fats and findings of the case, the board of commissioners at its 20^th board meeting for adjudication of cases held this month decided to slapped a 3 percent fine of its annual turnover for violation of section 16(2) (C) allegations of abuse of dominance on the Zambia Airport Corporation Limited.

In a letter to the Airports Corporation Managing Director, Mr. Sampa warned the corporation to desist from abusing its dominant position of market power and from issuing threats to operators in the market.

He further directed the corporation to normalize the charges and trading conditions to both client ah-Jites and ZEGA Limited to a manner that does not affect trade or result in discrimination.

Mr. Sampa further revealed that Board observed that ZACL was dominant and had market power and its ability to apply differential rates to airline clients and ground handlers for equivalent transactions was a violation of Section 16(1) and Section 16(2)(c) of the Act.

Its observed that threats to withdraw concessions from Zambezi Airlines though now dysfunctional and the application of excessive charges to ZEGA Limited for water and the handling of Emirates airlines constituted an abuse of dominance as it had an effect on how these enterprises trade and the economy in general.

ZAMBIA IS LOSING 3 BILLION DOLLARS ANNUALLY TO ILLICIT FINANCIAL FLAWS!

The 5th Zambia Alternative Mining Indaba is concerned that Zambia is said to be losing an estimated US$3 billion (approximately K36 billion) annually to Illicit Financial Flaws.

According to the National estimates of the percentage of the population falling below the poverty line conducted by the Central Statistics Office stands at 60.5%.

And 2016 ZAMI Chairperson Cleophas Lungu is calling on government to conduct a cost benefit analysis of all existing Double Taxation Agreements with the intent to re-negotiate the terms so that they benefit the country.

Last year Minister of Finance Alexander Chikwanda announced a total budget of K51.3 billion which was around 6.5 billion dollar at the time indicating that IFFs in Zambia are 70 per cent of the national budget.

Father Lungu said if these funds are tracked they could be used to finance the provision of public services such as health and education, as well as critical national development projects such as roads, railways, bridges and power infrastructure which are all key to Zambia’s industrialization.

Presenting the 2016 ZAMI Declaration, Fr. Lungu noted that government needs to review or terminate tax incentives given to mining companies, especially those proven to engage in tax dodging tactics, as well as domesticate international policies and treaties that are aimed at curbing the current tax competition.

The Indaba also noted with concern that the continued dependence of the country on copper mining as a main economic activity, adding that has Zambia continued to rely on the sales of raw products that yield very little returns in terms of revenue.

Fr. Lungu further said that there is also need to introduce policies that will support Diversification into other non-traditional exports, specifically focusing on agriculture and tourism.

Pupils in rural zambia

Meanwhile the Zambia Council for Social Development (ZCSD) said Zambia should develop a system that will help track financial flaws in order to maximize tax collection.

ZCSD Executive Director Lewis Mwape says there is a serious need to address the loopholes in order enhancing tax revenue on behalf of government.

Meanwhile Mr. Mwape has accused some officers at Zambia Revenue Authority of being reluctant to block the loopholes because they are beneficiaries of the scheme.