In September this year, AGR announced that it will invest US$150 million with local farmers to develop an irrigation dam, a 50MW solar farm and expand existing silo capacity by 80,000 metric tonnes at AOL. AGR chairman Zuneid Yousuf said the solar farm will ensure continuous power supply to irrigation and other production processes which have been affected by load-shedding. Mr Yousuf said engineers from the global solar power firm Vico Solar are expected to visit the site of the proposed solar farm in Mkushi early next month to lay the groundwork.

“This smaller system will answer many assumptions that it will be critical for the larger utility scale plant, including soil conditions, Zesco wheeling requirements and network and sun irradiance,” Mr Yousuf said. He said consistent electricity supply is critical to the success of the planned establishment of a value addition chain of factories in the Mkushi farm block. Last week, Government approved the introduction of a Creditworthy Renewable Energy Intermediary Power Off-taker which will sit between Zesco Limited and independent power producers (IPPs).

The decision is aimed at assuring the investor community that their investme nt is sustainable and can be profitable. And Vico Solar technical director Hugo Stewart said a recent study done locally revealed that the 2MW ground mounted hybrid system will cost between US$2 million to US$2.5 million.

“The operation of the solar plant during load-shedding will need to be carefully designed to protect the system,” Mr Stewart said. He said the system will be carefully designed to operate during grid unavailability, taking into account the critical power loads. The country, whose peak power demand fluctuates between 1,700MW and 1,900MW, has been trying to diversify its energy mix and Government is encouraging investment in alternative sources of energy like solar.

Zambia mainly relies on hydro power and currently has an electricity deficit of about 900MW because of low water levels at generation plants after a severe drought hit the country in the last rainy season. Zesco announced recently that load-shedding would be stretched beyond 15 hours a day. And as a short-term measure, G o v e r n m e n t h a s s t a r t e d importing power from Eskom of South Africa to minimise loadshedding. Severe drought linked to climate change has scorched across southern Africa and United Nations agencies have said a record 45 million people face
food shortages.

Read this article from the original source: African Green Resource, Agri Option Ltd To Spend $2.5m On Solar Project.

“But we did need an investor to believe in us and to help us achieve our dream. DBZ invested K12.5 million in Yalelo and this made us to invest in our operations, sales and to begin building our team. “We are happy to make our final payment to DBZ worth K31,883, 319.38. We can now focus on expanding our operations,” Mr McCoy said last Friday when presenting a K31 million cheque to clear a loan obtained from DBZ five years ago. Currently, Yalelo has an annual production capacity of 18,000 tonnes and employs over 900 people. Yalelo chairman Fisho Mwale said there is need to support the growth of local industries.

“We are happy that DBZ was able to partner with us and we urge other banks to emulate what DBZ is doing,” Mr Mwale said. And DBZ acting managing director Edward Mulilo called on firms to devise innovative solutions to remain relevant. Mr Mulilo said businesses can remain afloat by ensuring that workers put in their best performance. “I do believe that there are solutions to every challenge. All we have to do is pick on the most efficient and effective solution to the challenges being faced, instead of waiting for a miracle to happen,” he said.

Mr Mulilo said the gesture Yalelo has shown to clear the loan signifies that there are still businesses with the capacity to sail through the current economic challenges. “Regarding the operations of Yalelo, DBZ is encouraged to continue providing tailor-made financial and advisory services to the players in the Zambian economy,” he said. In 2014, Yalelo borrowed an initial loan worth K12.5 million from DBZ to address production and distribution constraints that the company

Read this article from the original source: Yalelo Lauds DBZ, Pays Back K31 Million Loan.

This was when he and Secretary to the Treasury Fredson Yamba appeared before the Public Accounts Committee chaired by Mr Kunda. “There are various reasons which make tax debt uncollectable. Over a period of time, some companies close, like those that closed during privatisation. Some businesses are owned by one individual whom, after death, the company closes.

“The bulk of the debt relates to government transactions. If Road Development Agency has not paid contractors, how will I collect Value Added Tax? If KCM (Konkola Copper Mines) has not paid its contractors, how will I collect taxes?” he asked. Mr Chanda said after verification processes, ZRA will write off debt owed by companies that have closed without settling so that it does not appear in the AuditorGeneral’s report in future. He said ZRA cannot close some companies because they play a critical role in the economy.

Mr Chanda said there is need to understand the composition of the companies that owe the authority to avoid disturbing those which contribute to economic growth. He was responding to a question from Lukashya independent MP Mwenya Munkonge, who wanted to know what action ZRA is taking against some of the defaulting companies. And Mr Yamba urged ZRA to come up with a system that will identify uncollectable debt tax so that it can be written off. Mr Yamba said debt swap is also one way through which the over K36 billion can be settled. A debt swap is a transaction in which a company’s obligations are exchanged for something of the same value.

“We can also engage contractors and see if we can come up with a payment plan that will benefit both parties,” he said. He said there is also need for a law that provides a time frame after which debt can be written off. Mr Yamba was responding to a question from Kasempa MP Brenda Tambatamba (UPND), who wanted to know what measures ZRA has put in place to reduce debt arrears. Meanwhile, Local Government Accounts Committee chairperson Elijah Muchima (UPND) sent away Mongu Municipal Council officials for not responding to questions as required by the Auditor General’s report.

Read this article from the original source: ZRA Owed Over K36 Billion.

Read this article from the original source: Turkish Firm Plans To Power Zambia With Solar.

By Tetiwe Mweemba

As the nation awaits the official presentation of the 2020 National Budget by Finance Minister Bwalya Ng’andu in Lusaka tomorrow amidst the high cost of living, Power outages and suffering intense effects of Climate Change, the Operation Young Vote OYV says the country is expectant of a user friendly budget which should accommodate all and be supported by all.

Speaking in Lusaka today, OYV Executive Director Guess Nyirenda said the budget must provide clear indicators, measures and investment in having duty bearers working closely with the citizens in finding solutions to problems that confront the country.

Mr. Nyirenda said the budget must clearly show an interest in the fight against corruption but incentivizing the whistle blowers and also providing better allocations to the institutions of governance.

“The budget, while it endeavor to address issues raised about the theme “Accelerating Sustainable Development for a Better Zambia Amidst the impact of Climate Change” in the state of nation address by President Edgar Chagwa Lungu, it must be reflective of the day to day social economic challenges, poverty as well as hunger situations citizens are currently in,” Mr. Nyirenda noted.

He added that OYV expected a budget that provided for speedy, manageable and consistent development in the face of climate Change and its impact.

“It would be wishful thinking if you have a budget that is not alive to the poverty and hunger that is ravaging the majority of households in the country. The hunger in the country is real, how then does the 2020 budget resolve the widespread hunger while encouraging and motivating the hungry population to venture into agriculture in a diversified sense not only for food security but also for good nutrition and health food, “he added.

Mr. Nyirenda said OYV is expectant to see how the budget will float practical ways of tackling the reality of climate change.

He added that the policy of purchasing of furniture and other school and office material and equipment from the youth enterprises and cooperatives must not be rhetoric and a myth but be actualized in the budgetary indicators to be given by the Minister of Finance.

“On mining and tourism, OYV expects the budget to allude to and pay particular attention to the targeted review of the APRM in the two sectors that Zambia will be embarking on with the collaboration of the continental APRM Secretariat between the end of this year into 2020, so as to shape a progressive trajectory and embrace ways of harnessing dividends,” Mr. Nyirenda stressed.

Read this article from the original source: OYV Wants A Progressive Budget.

“I know about what has happened in Saudi Arabia, I mean, it’s most unfortunate but this is what happens in the world when things are not straight all the time. “The price [of fuel] will definitely go up but we have got old stocks, we are not going to increase the price of fuel on the old stocks,” Mr Nkhuwa said.

He was responding to journalists who asked what impact the recent drone attack on a fuel facility in Saudi Arabia will have on the cost of fuel in Zambia. On Saturday, drone attacks were reported on petroleum and gas processing plants in Khurais and Abqaiq, knocking down about 5.7 million barrels per day of total Saudi oil output.

And the minister has also said that energy tariffs are likely to double owing to various socio-economic impacts. “It [energy tariff] will double the amount [from the current 75 percent] because we are paying half the amount that we are supposed to pay,” he said. Mr Nkhuwa said Government will invest in other energy sources to reduce over dependency on imported crude oil.

“What we are looking at is bio fuels like diesel, ethanol and very soon, we will be accepting ethanol in Ndola at Indeni Petroleum Refinery so that we can have 10 percent of our own product and that way, we will be able to save the kwacha,” Mr Nkhuwa said. And earlier when opening the workshop, the minister said the meeting is timely especially that delegates are developing a fund to promote an energy mix in-serviced areas. “Zambia needs diverse solutions to meet its energy needs,” he said. Mr Nkhuwa is impressed that BFFA- Zambia has connected over 144,000 households to offgrid electricity in two years.

BGFA was setup to incentivise the emergency of new private sector business models offering affordable and clean energy access to people living in rural and peri-urban areas in Africa. “There is US$20million available for the second round of the BGFA for Zambia,” he said. And Swedish Embassy head of development co-operation Karin Sverken said BFFA programmes are in line with the Sustainable Development Goal(SDG) number seven on provision of affordable and clean energy.

Read this article from the original source: Fuel Prices To Go UP.

With the commemoration of the Insurance week starting tomorrow September 16, 2019, the Pensions and Insurance Association ( PIA) has acknowledged the many challenges the insurance sector is faced with.

Speaking at the launch of the 7th Insurance Week which runs from the 16thto the 21 of September 2019 under the theme: Raising an Insured generation, PIA acting Registrar Titus Nkwale announced that in view of the many challenges the sector is faced with, the regulatory body has created market conduct which will help in reducing the many challenges the sector is faced with.

“To respond to these challenges, the authority has created a new unit called market conduct. This unit will help with treatment of customers fairly and resolve some of these challenges. “as the regulator, we are aware about some of the challenges that are in the industry which range from genuine complaints of unfair treatment of customers, not being aware of the scope of cover for their product to failure to read the ‘fine print’ or ‘jargon’ at the back of the cover notes. Further, there are also disputes on claim pay-outs due to non-availability of policy wordings that would have spelt out terms and conditions. Unnecessary delays in getting a claim settled is also another frustration faced by some policy holders,” Mr. Nkwale stated.

Mr. Nkwale also announced that the PIA with assistance from the World Bank was currently developing key fact statements.

“Key Fact Statements(KFSs) are part of disclosure requirements that will assist in clarifying terms and conditions of insurance policies.  Further, KFSs may also assist in improving financial literacy among Zambians and help them make better choices on purchasing of insurance. It will therefore be mandatory for all insurance companies offering motor insurance, household or contents insurance, home owners insurance, funeral and life insurances to give a key fact statement to improve financial literacy among customers” he explained.

Mr. Nkwale said a total of K1,1 billion was in 2018 paid  by the insurers in claims.

“In terms of claims, the industry recorded estimated gross claims of about K1.1 billion compared to K1.01 billion in 2017. This figure represents an industry that is responding to its clients at their point of need. This should help us understand that insurance is there to pay claims. That is the whole purpose of insurance as a financial protection tool,” Mr. Nkwale said.

He added that the industry recorded an overall increase of 16% in terms of gross written premium (GWP).

“Over the years, the industry has been recording steady growth.in 2018; the industry recorded an overall increase of 16% in terms of gross written premium (GWP). In quantum, GWP increased to K 3,183 million from K 2,739 million recorded in 2017. General insurance business accounted for K1,908 million in 2018 as compared to K1,797 million in 2017 whilst long-term insurance business accounted for K1,275 in 2018 as compared to K941.6 million in 2017. Allow me to clarify that gross written premium does not represent profit, rather it is the money collected by insurers that will be secured to pay future claims. On certain policies, the claims can even exceed the premiums that have been paid, which is why a portion of premiums are ceded to reinsurers, for greater financial support,” Mr. Nkwale explained.

Speaking earlier, Insurers Association of Zambia (IAZ)president Paul Nkhoma observed that as a developing nation, it was important for the people of Zambia to plan for the various risks that threaten financial stability and economic gains.

Mr. Nkhoma stressed that there was need to understand that financial vulnerability was all the more reason to obtain insurance.

“Some people would suggest that they would rather set aside spending on insurance during challenging economic times. For example, a new business needs more financial protection, not less. If a fire destroys their stock they may not have the finances to start again. It is better to secure a house with insurance rather than bear the cost of rebuilding if a flood causes damage. The same can be said about health and medical challenges,” Mr. Nkhoma explained.

He said insurance was a practical form of financial protection that would guard against excessive expenditure when misfortune strikes.

Mr. Nkhoma noted that millions of dollars are externalized every year as a result of individuals and companies that seek to cover outside the country when it can be provided locally which is a condition of the law.

“Insuring with locally based and registered insurers is one way of supporting local business and local employment and adds to the growth of the economy. I urge individuals and businesses to take this into consideration,” he emphasized.

He cited credit as one of the challenges the insurance sector is faced with.

“There seems to be a bad culture when it comes to credit services. Many times insurance is given on credit or installment plans, but there is a high rate of default. This default has an impact when it comes to paying claims, financial reporting and the overall stability of companies,” Mr Nkhoma said

He called for culture change when it came to credit if individuals and businesses where to add value to the economy.

“We must work together with all stakeholders to find a solution. But the solution begins with all of us changing the way we handle credit, and considering how defaulting on payments affects other clients. I cannot overemphasize the impact this has on the industry, on claims payments and the economy,” Mr Nkhoma said

And IAZ has since requested the Government to priority finalizing the Insurance Bill.

“The insurance industry looks forward to the long awaited Insurance Bill finally going to Parliament and a new law being enacted. We humbly request that Government makes this important piece of Legislature a priority,” Mr. Nkhomaemphasized.

Read this article from the original source: 1.1b Was In 2018 Paid By The Insurer In Claim-Pensions And Insurance Association(PIZ).

Ms Mutwale had dreamt of becoming an airline cabin crew member since she was a little girl, but never in her wildest dreams did she imagine that she would be working for one of the best airlines in the world, Emirates.

Her career in aviation began after her sister, who was a cabin crew member, encouraged her to study an aviation-related course. She then moved to South Africa to do a flight attendant course.

“I went to Cranfield Aviation School in South Africa to do a 20-week course for flight attendants, hoping to join a local airline, but they weren’t employing at that time.” Her disappointment at not finding a job was short lived. She applied to Emirates and attended one of the airline’s open days. Soon after she was selected for final interviews and a month later, she was hired.

Ms Mutwale, who has worked with Emirates for the last four years, is part of the airline’s cabin crew. Her role involves her attending to passengers and making their travel experience a safe, pleasant and happy one – a task she really enjoys.
Apart from interacting with passengers, Ms Mutwale also enjoys other aspects of being part of the airline.

“Emirates is very multicultural. The atmosphere is so diverse. I get the chance to travel the world and stay at luxurious four- and five-star hotels, during out stopovers. Overall, I have been learning, growing and experiencing a lot, with stories I get to hear from passengers and colleagues to last me a lifetime.”
During her career with the airline, Ms Mutwale has travelled the world and has experienced different people and cultures. Her favourite destination is Japan.

“I had high expectations of Japan after seeing some highlights of it on the television, and when you have high expectations you can be easily disappointed; but Japan didn’t disappoint. The culture and habits differ from many other countries. I love Asian food and Japanese food is just as great as the country itself.”

When she is not travelling the world, Ms Mutwale is based in Dubai, where the Emirates hub is located.

“Living in Dubai helps you gain international exposure and skills – a great chance to interact with other nationalities. Dubai has provided a comfortable and safe environment. It is an exciting and happening city and a place to be if you want to enjoy your social life and working life.”

Although she loves living in Dubai she still takes time to go home; “I get to go home at least three times a year and I love it. Zambia has the friendliest people, and peace is a word that would define Zambia. The food is irreplaceable and delicious. I also get to see my family which is a great bonus.”

As a frequent traveller Ms Mutwale has perfected a must-have list for travellers.

“Always have a camera to capture the memories, a travel wallet to keep your important documents and a portable power source,” she advises.

Langmead & Baker Ltd

Read this article from the original source: Emirates Gives Zambian Cabin Crew An Experience Of A Lifetime.

Mr Mataka said the cost of importing power from South Africa and transmitting it will be shared between the firm and customers. He was speaking during a stakeholders meeting here on Friday. He said the importation of power will reduce the hours of load-shedding which have been extended from four to six hours. Mr Mataka said the measure to import power proposes the premium cost plus margin to cover up for the importation cost.

He said this means that the first 100 units will not be subsidised to allow the power utility company to recover costs. Mr Mataka said if clients, on the other hand, feel that bearing the cost on their part is too much, the load-shedding situation will worsen. He said the company has already engaged Government on the matter and it is waiting to be given a go-ahead to start the process. Mr Mataka said Zesco hopes that Government will approve the proposal this week so that the process of importing power can start.

He said importation of power from South Africa is, so far, the only option that will cushion the power deficit in Zambia. “The projection is to import 300 megawatts from South Africa at a cost of about $13.5 million and we need to pay this. That is the reason why we are saying cost plus margin provides us with an opportunity to ensure there is no interruption in power supply over this period,” he said. Mr Mataka said if the proposal is not implemented, load-shedding hours will increase from the current six to eight hours.

He said Zesco desires to import power before loadshedding hours are increased to more than eight hours. Mr Mataka said the current increased load-shedding hours are due to the drastic reduction of water levels in generation plants. “If you say that you are not prepared to pay more than what you are paying now, then we are going to move to eight hours

Read this article from the original source: ZESCO To Buy Power From South Africa.