Wednesday 23 August 2017
(Bloomberg 08/23/17)
Glencore Plc’s copper unit in Zambia said a dispute over electricity fees that has already led to reduced power supply may result in the dismissal of 4,700 workers. Copperbelt Energy Corp. lowered supplies to Mopani Copper Mines after the company refused to pay new power prices introduced by the government at the start of the year. Mopani said the fee increase wasn’t part of its agreement with Copperbelt. Mopani, which employs about 15,000 people including contractors, has notified the government of the planned job losses, Labor Minister Joyce Nonde-Simukoko said by phone. “It has become necessary for Mopani Copper Mines to curtail some areas of its operations due to the restriction of power,” the Glencore...
(Lusaka Times 08/22/17)
Mopani Mines has announced that it will have to close several areas of its operations which may affect a total of 4,700 direct employees if power supply restrictions continue. In a statement, Mopani says it has become necessary to curtail some areas of its operations due to the restriction of power by Copperbelt Energy Corporation. It says the decision has been necessitated by the unilateral action by CEC to restrict power supply without notice and against the provisions of the Power Supply Agreement. “We are operating under a Power Supply Agreement dated the 31st March 2000, that was most recently amended on the 6th March 2015, and is valid until 2040. The PSA strictly sets out the agreed tariff and...
(Lusaka Times 08/22/17)
Seven mining companies in North western and Copperbelt Provinces have started paying the revised electricity tariffs. These are Konkola Copper mines, Barrick, Luanshya Mines, Kansanshi, Chambeshi Mines and the Non-Ferrous mining Company among others. The Chambers of Mines has confirmed the development to ZNBC News. And First Quantum Minerals Country representative General Kingsley Chinkuli says negotiations are currently under way with the Ministry of Energy over the revised tariffs. General Chinkuli says First Quantum Minerals the owners of Kalumbila and...
(Xinhuanet 08/22/17)
African officials on Monday called for urgent infrastructural development and regional integration to boost the continent's economy. At the Infrastructure Africa 2017 in Johannesburg, Zambian Minister of Finance Felix Mutati encouraged Africans to speedily address infrastructural deficit. "We have to inject some sense of urgency in ourselves. If we remain captured by business as usual, we are headed for disaster," said Mutati at the opening ceremony of the two-day event. "Competitiveness in Africa is being constrained by infrastructure deficit. We...
(Bloomberg 08/21/17)
GreenWish Partners, a renewable energy company run by a former Morgan Stanley executive, is planning to invest $800 million on solar-powered telecommunications towers across Africa. The project could fuel economic growth by providing power for essential services. Sub-Saharan Africa has the lowest rates of energy access in the world and is home to about half of the world’s 1.2 billion people without reliable electricity, according to the International Energy Agency. The problem extends to businesses as well as households, cutting...
(Reuters (Eng) 08/16/17)
Private equity house EMR Capital has purchased an 80 percent stake in a Zambian copper mine from African Rainbow Minerals (ARM) and its partner for $97.10 million, ARM said on Tuesday. The 80 percent indirect interest in Lubambe Mine, held equally by ARM and Vale International includes the equity holding in Lubambe Mine as well as loans to the mine, and will be settled in cash contingent on certain conditions being met, ARM said in a statement. "We are pleased...
(Reuters (Eng) 08/11/17)
British company Tullow Oil on Friday started exploring for oil and gas in Zambia, Africa's No.2 copper producer, as the country pushes to diversify its economy and reduce its reliance on the industrial metal. Copper mining earns Zambia more than 70 percent of its foreign exchange but the southern African state has been trying to move into other commodities to insulate itself from price shocks. Zambia does not produce oil, but the government says soil samples sent to European laboratories...
(Bloomberg 08/10/17)
Zambia’s central bank cut its benchmark lending rate for a third time this year as inflation remained below the government’s target. The Bank of Zambia lowered the rate to 11 percent from 12.5 percent, Governor Denny Kalyalya told reporters Thursday in Lusaka, the capital. That’s the lowest level since February 2014. The southern African nation’s consumer inflation rate is near the lowest since 2013, with this year’s record harvest of corn, which is used to make a local porridge, leading...
(Xinhuanet 08/10/17)
Zambia's central bank on Thursday cut its benchmark lending rate, a key determinant for interest rates, by 150 basis points. The Bank of Zambia (BoZ) cut the benchmark lending rate from 12.5 percent to 11 percent, citing lower annual inflation and subdued economic growth. "Inflation has been declining and we see that it will remain within the medium term target range of 6-8 percent. We also noted that economic growth has been sluggish," Denny Kalyalya, the central bank governor said...
(Xinhuanet 08/10/17)
The Zambian government on Thursday said it will foster economic diplomacy with the United States so that the southern African nation can receive the best from President Donald Trump's administration. The Zambian embassy in the United States said the country has benefited a lot from the U.S. government which has remained the country's biggest bilateral partner through programs in education and health. In a statement, the embassy noted that the U.S. government has been in the forefront of helping Zambia...
(Xinhuanet 08/09/17)
The United States Trade Representative (USTR) on Wednesday affirmed the commitment of his country to Africa and saw "great potential to grow and deepen trade relationship." Robert E. Lighthizer expressed this in opening speech of the ministerial plenary as part of the 16th Forum of the Africa Growth and Opportunity Act (AGOA), on Wednesday here in Togolese capital Lome. "The United States is committed to Africa. We see great potential to grow and deepen our trade relationship, with the goal...
(Reuters (Eng) 08/04/17)
China will lend Zambia $282 million to improve the nation's telecommunications infrastructure and increase mobile phone usage over three years, the Chinese ambassador said on Friday. Zambia, Africa's No.2 copper producer, has over 12 million mobile phone service subscribers, equivalent to about 70 percent of the population, according to latest government statistics. China's Huawei will erect 808 telecommunication towers and build support infrastructure, Chinese ambassador to Zambia Yang Youming said at a signing ceremony for the project. After completion of...
(Xinhuanet 08/03/17)
Trade between China and Africa reached 85.3 billion U.S. dollars in H1, surging 19 percent year on year as the two sides strengthened cooperation in a wide range of areas, official data showed Thursday. The data reversed the negative growth trend since 2015, according to Gao Feng, spokesperson with the Ministry of Commerce. During January-June, Chinese imports from Africa, including minerals, agricultural products and fruits, amounted to 38.4 billion U.S. dollars, jumping 46 percent from the same period last year,...
(Bloomberg 08/02/17)
Julien Ochala can’t live without his morning cup of Joe. But not just any coffee will do. For the past five years, the 37-year-old physiology lecturer at King’s College London has visited the same store every week to grab a pack of his beloved Kenyan brew. And he’s not put off by the cost: at 37 pounds a kilogram ($22 a pound), it’s more than double a similar supermarket product. "I take Kenyan coffee every morning," said Ochala, who buys...
(Bloomberg 08/01/17)
British American Tobacco Plc faces a formal probe by the U.K.’s Serious Fraud Office following reports that the maker of Dunhill cigarettes bribed African government officials to influence tobacco legislation. BAT said Tuesday it is running its own investigations, via external legal advisers, into allegations of misconduct and is cooperating with the U.K. prosecutor. A BBC report two years ago said BAT had a lobbyist arrange bribes totaling $26,000 for three public officials in Rwanda, Burundi and the Comoros Islands...
(Lusaka Times 07/31/17)
Economist Lubinda Haabazoka has charged that China is buying off all strategic positions in Zambia’s economy whilst Zambians are busy fighting ourselves on tribal and political lines. Dr Haabazoka who is also a Lecturer in the School of Business at the Copperbelt University warned that by the time Zambians finish fighting and reconcile, there will be nothing to share. He said the blame is not on government only but that most of it is on greedy citizens. “When you are...
(Lusaka Times 07/31/17)
Dear Friends and Colleagues, Agriculture provides the main support for Zambia’s rural economy, and because of this, growth in the agricultural sector is the clearest avenue through which poverty reduction can be achieved in Zambia. Sixty seven percent of the Zambian population depend on agriculture, primarily through smallholder production for their livelihoods and employment. Zambia recognizes agriculture as one of the key priority sectors in achieving sustainable economic growth and diversification away from copper mining. The Food Reserve Agency -FRA-...
(Lusaka Times 07/31/17)
International Trade Consultant Trevor Simumba says the recent spike in international copper prices should not make the Zambian government relax in its pursuit of an economic bail out from the International Monetary Fund. Mr. Simumba observed that the rise in copper prices could be the reason that the PF Government is now telling off the IMF. “This is the cause of the sudden short term optimism especially in GRZ hence the “we do not need IMF brigade”. This type of...
(Xinhuanet 07/28/17)
The World Bank has provided Zambia 600 million U.S. dollars to invest in various sectors of the economy as well as for budget support for the next three years, state media reported on Friday. The Bank has also committed itself to increasing its support to the southern African nation under the International Development Association (IDA) Minister of Finance Felix Mutati revealed this after meeting with the World Bank Executive Director for Zambia Andrew Bvumbe who is in the country for...
(Zambia Reports 07/28/17)
Former MMD president Dr Nevers Mumba says Zambia real debt stands at US $30 billion disputing finance minister Felix Mutati's projection which is quoted at $7.2 billion. Dr Mumba, who is now one of the prominent supporters of UPND leader Hakainde Hichilema, has published an article on his Facebook page backing his claim and challenging the Zambian government to be truthful. "Considering that there is much confusion among Zambians on what the correct debt position is, we did our own...

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