Richard Chembe quits post as Investrust boss on poor health grounds

Investrust Bank Plc Managing Director Richard Chembe has left his post owing to poor health.

According to a brief statement issued by the Lusaka Stock Exchange, he Board of Directors of Investrust Bank PLC notified the market that Dr. Chembe retired on medical grounds on 22nd July 2016 in line with the provisions of the Employment Act Cap 268 of the Laws of Zambia.

“The Board wishes to further notify the market that Mr. Isaiah Chindumba will continue to act in the role of Managing Director until further notice. The Board would like to thank Dr. Chembe for leading the only indigenous Bank through its restructuring process leading to its current focus of sustaining the growth of its retail brand.

Dr Chembe who also served as State House Economic Adviser during the reign of late President Rupiah Banda has been on medical leave since he ruptured his vein last December.

Source: Lusaka Times

EU-funded project to help Zambia improve governance of mining sector

Being one of the world’s leading copper exporters comes with its own problems and one of them, for Zambia, is the huge task of monitoring its mineral production so as to ensure maximum revenues from the mines.

The European Union, which aims to strengthen economic governance in Zambia, allocated €4.7 million to implement the MineralProduction Monitoring Support Project (MPMSP) to help Zambia improve governance of its mining sector.

The project of 3 years’ duration, from 2015 to 2018, is being carried out by a consortium led by Adam Smith International (ASI) and including Ecorys (UK), the Revenue Development Foundation and PMTC (Zambia) Ltd. Zambian and international experts working within the Ministry of Mines and Minerals Development (MMMD) under ASI management and MMMD guidance.

The objective of the MPMSP is to ‘strengthen the ability of the Ministry of Mines and Minerals Development (‘MMMD’) to fulfill its mandate as mining authority to monitor effectively mining activities and mineral production in Zambia, and to share this information with other relevant government agencies to increase domestic revenue mobilisation.’

The project is in line with what President Lungu said is Government’s commitment to engaging the private sector in identifying solutions that will help the country offset some of the problems affecting the mining sector.

“While Government cannot control the external shocks such as falling commodity prices that have impacted negatively on the country whose economy is copper-export led, continued collaboration amid economic turbulences will help minimise the effects of the shocks,” said
President Lungu.

One of the milestones of the Mineral Production MonitoringSupport Project was the launch of the online export permit module at the Ministry of Mines and Mineral Development (MMMD), which went live on 1st June, 2016.

The Ministry is now processing and issuing all mineral export permits via a digital interface. This administrative system was developed by project consortium partner the Revenue Development Foundation.

Moving away from a paper-based system has increased efficiency and strengthened accountability in the issuing of Mineral Export Rights, as well as the recording of related payments thus significantly improving the audit trail.

June also saw the Ministry of Mines and Minerals Development participating in the Zambia International Mining and Energy Conference (ZIMEC 2016) in Lusaka. The Ministry proudly displayed some of the new gemmology equipment purchased by the European Union as part of the Mineral ProductionMonitoring Support Project’s work on capacity building.

Director of Mines Mr Mooya Lumamba, speaking at ZIMEC, said the project will enable his ministry to better monitor mineral production and to share information with relevant Government agencies such as Zambia Revenue Authority (ZRA) for purposes of collecting royalties and taxes.

“With a stronger monitoring system, Zambia will be able to realise revenue taxes in a proper and coordinated system and without declaring false production records by mining houses,” he said.

“Inevitably, the first sources of data on mining activities and mineral production are the mines themselves. However, currently the country’s authorities rely entirely on mineral production data and other related information provided by the private mining industry,”
said Mr Lumamba.

He said given the fact that Government authorities and private companies do not necessarily share the same agenda, this data and information may or may not be entirely sufficient and accurate, hence launching of the MPMSP.

Mr Lumamaba said the EU-funded project is concentrating on building capacity within the Ministry to re-establish physical presence on the ground to improve monitoring and inspection programmes in the mines throughout the mining cycle (exploration-mining-processing-export).

Mr Lumamba said the next element in the sequence is about effective data-management and data-sharing.

This includes management of data provided from the mining companies, and its verification through an MMMD monitoring system. It also includes information gathered from other sources as well as supporting effective inter-agency data and information-sharing arrangements and structures.

He said Zambia has made considerable progress in terms of transparency of the mining sector and benefit-streams from mineral exploitation.

The country has also joined the worldwide initiative EITI (Extractive
Industries Transparency Initiative).

Source: Lusaka Times

Zambia’s Inflation rate continue trending down. It’s now 20.2%

The monthly inflation rate for July has declined from 21.0 percent to 20.2 percent.

Central Statistical Office (CSO) Director John Kalumbi has attributed the drop to a reduction in the prices of vegetables and purchase of motor vehicles and airfares.

Mr. Kalumbi disclosed in Lusaka at a press briefing that the annual food inflation rate for July 2016 was recorded at 24.8 percent compared to 25.3 percent recorded in June, 2016 indicating a decrease of 0.5 percentages.

He said the decrease is due to lower prices of food stuffs such as tomatoes, beans and bananas among others.

Mr. Kalubi said the non-food inflation for July 2016 decreased to 15.3 percent from 16.5 percent recorded in June this year representing 1.2 percent.

He however disclosed that Zambia recorded a trade deficit in June this year amounting to K1, 905.9 million from K79.2 million recorded in May this year, representing an increase in imports than exports.

Mr. Kalumbi stated that the trade deficit shot up due to significant increases in imports by 41.2 percent from K5, 494.3 million in May to K7, 755.6 million in June this year.

The CSO Director pointed out that Zambia’s major imports are Kuwaiti and China.

Source: Lusaka Times

Zambia mining investments promote economic development

A new analysis of mining in Zambia for the past 100 years shows a clear historical link between levels of mining investment and wider economic development.

When mining investments are being sustained and high, there is growth not just in the mining sector, but also in the broader economy in jobs, new businesses and the overall prosperity of the population.

However, when the mining investments decline, it’s not just the mining sector that is affected but the entire economy, along with the material well-being of the population.

A new SAIMM paper entitled ‘Copper Mining in Zambia – History and Future’, penned by Jackson Sikamo, Alex Mwanza and Cade Mweemba, identifies three major periods in Zambia’s history when the levels of mining investments in the industry had a pivotal effect on the fortunes of the country.

The first period was in the early 1920s, when mainly American and South African companies invested massively in Zambia’s first commercial copper mines. Jobs were created, infrastructure was built, towns came into existence, and support industries emerged.

“Thus, by 1964, when Zambia was born, it had a strong economy driven by the mining sector,” the paper says. Zambia had one of the highest GDPs in Africa.

The second period was in the early 1970s, when government nationalised the Zambian mining industry and used its considerable revenues to drive an ambitious development programme.

However, because it came at the expense of continued investment in mining, the industry was unable to expand. Copper production and mining employment plummeted, and the economy went into decline.

“The business prospects of the mines were bleak, and so were those for the national economy, which was heavily reliant on mining”, the paper says.

The third period was from about 2000 onwards, after privatisation. Investors poured capital into new machinery, new mining methods and new processing and extraction technologies. New mines were started in North-Western province.

There was a sudden economic upturn, not only on the Copperbelt but in the country as a whole, with the mining industry as a pivotal contributor.
Significantly, this economic upturn occurred before the copper price started to recover, suggesting that it was the result of the investment itself, rather than an accident of commodity pricing.

By 2013, after more than US$12 billion of investment, Zambia’s copper output had tripled to 763 000 t, and direct industry employment had reached 90 000.

Looking to the future, the geology of Zambia shows “great potential for further investment in mining”, say the authors.

Consequently, the country’s prosperity hinges on the creation of a stable mining policy, internationally competitive tax rates and an investor-friendly environment.

Source: Mining Review Africa

Update on Maamba Collieries Limited Thermal Power Plant

We are pleased to inform you that Unit 1 (150MW) of Maamba Collieries Coal Fired Power Plant (CFPP) was synchronized with the national grid yesterday, Sunday, 24 July 2016 at 12.57 hrs successfully.

Prior to this, Turbine 1 was rolled at 16.45 hrs on 23 July 2016 and the generator open circuit/short circuit/excitation system tests etc were conducted during the night on this day and 24 July in the morning.

ZCCM-IH owns 35% of Maamba Collieries Limited.

Copperbelt Energy highlights challenges facing African utilities

Mutale Mukuka, Chief Financial Officer at Zambian electricity generation, transmission, distribution and supply company Copperbelt Energy, talks to African Review about power tariffs, working in a highly politicalised business environment, and the role of regulations on investment opportunities.


View and listen to the interview

Invitation for Bids: Office Partitioning at Trinity Park Office Complex

Invitation for Bids (IFB)
Office Partitioning at Trinity Park Office Complex in
Mass Media Area, along Alick Nkhata Road, Lusaka
ONB No.: ZCCM-IH/030/2016
  1. ZCCM Investments Holdings Plc. has received financing from own sources toward the CAPEX for the 2016/2017 Financial Year, and it intends to apply part of the proceeds of this financing to payments under the Contract for the Partitioning of Offices at Trinity Park Office Complex in Mass Media Area, Lusaka, Contract No.: ZCCM-IH/030/2016.
  2. ZCCM Investments Holdings Plc now invites sealed bids from eligible and qualified bidders for the Partitioning of Offices at Trinity Park Office Complex in Mass Media Area, Lusaka – Duration: 10 weeks.
  3. Bidding will be conducted through the Open National Bidding (ONB) procedures specified in the Public Procurement Act of 2008 and the Public Procurement Regulations of 2011 and is open to all bidders from Eligible Source Countries as defined in the Bidding Documents. The following CEEC preferential treatment shall be applied as part of the evaluation:

    3.1 Citizen-influenced company – 4%
    3.2 Citizen-empowered company – 8%
    3.3 Citizen-owned company – 12%

  4. Interested eligible bidders may obtain further information from the address below and inspect the Bidding Documents at this address from 08:00 – 13:00 and 14:00 – 17:00 local time, Monday to Friday inclusive.
  5. Qualifications requirements include:

    i) Experience as a prime contractor in the rehabilitation of at least two (02) contracts of a similar nature and scope in the last five (05) years;

    ii) A minimum amount of liquid assets and/or credit facilities per lot as follows:

    ZMW2,992,664.00.

    iii) Average Annual Turnover for the past three (03) years as follows:

    ZMW38,904,621

  6. A complete set of Bidding Documents in English may be purchased by interested bidders ON THE SUBMISSION OF A WRITTEN APPLICATION to the address below and upon payment of a non refundable fee of Zambian Kwacha Five Hundred (ZMW500.00). The method of payment will be either by Cash or Bank Certified Cheque.
  7. The address referred to above is:

    K D Kabwe (Mrs.)
    ZCCM Investments Holdings Plc.
    3rd Floor, Mukuba Pension House
    5309 Dedan Kimathi Road
    Lusaka, Zambia
    Tel: +260-211-228833
    E-mail: kabwekd@zccm-ih.com.zm

  8. Bids must be delivered to the address below at or before 10:00 hours on Wednesday, 27th July 2016. Electronic bidding shall not be permitted. Late bids will be rejected. Bids will be opened physically in the presence of the bidders’ representatives who choose to attend in person at the address below immediately after 10:00 hours on 27th July 2016. All bids must be accompanied by a Bid Securing Declaration.
  9. There will be official site visits as follows:

    Monday, 11th July 2016 at Trinity Park Office Complex, Mass Media Area, Lusaka at 10:00 hours.

  10. The address referred to in clause 8 is:

    K D Kabwe (Mrs.)
    ZCCM Investments Holdings Plc.
    3rd Floor, Mukuba Pension House
    5309 Dedan Kimathi Road
    Lusaka, Zambia
    Tel: +260-211-228833
    E-mail: kabwekd@zccm-ih.com.zm


Download full invitation

– Invitation for Bids | Office Partitioning at Trinity Park Office Complex in Lusaka

Invitation for Bids: Provision of Cleaning and Sanitation Services to ZCCM Investments Holdings

Invitation for Bids (IFB)
Provision of Cleaning and Sanitation Services to ZCCM
Investments Holdings (ZCCM-IH)
ONB No.: ZCCM-IH/039/2016
  1. ZCCM Investments Holdings Plc. has received financing from own sources for the 2015/2016 Financial Year, and intends to apply part of the funds to cover eligible payments under the Contract for the Provision of Cleaning and Sanitation Services to ZCCM-IH, Contract No.: ZCCM-IH/039/2016.
  2. ZCCM-IH now invites sealed bids from eligible bidders for the Provision of Security Services to ZCCM-IH as follows:

    Lot 1 – Mukuba Pension House (1st & 3rd Floors) and Trinity Park Office Complex, Lusaka (Cleaning & Sanitation Services); and

    Lot 2 – Investments House, Kantanta Street, Kitwe; Technical Library and Technical Directorate, Kalulushi; Mining Industry Archives (Ndola) (Cleaning & Sanitation Services);

    Lot 3 – Kabwe Offices and Laboratory, Kabwe (Cleaning & Sanitation Services);

    The contract duration will be 12 months with a possibility for renewal subject to satisfactory performance during the initial 12 months.

  3. Bidding will be conducted through the Open National Bidding (ONB) procedures specified in the Public Procurement Act of 2008 and the Public Procurement Regulations of 2011 and is restricted to firms registered in Zambia. The following CEEC preferential treatment shall be applied as part of the evaluation:

    3.1 Citizen-influenced company – 4%
    3.2 Citizen-empowered company – 8%
    3.3 Citizen-owned company – 12%

  4. Interested eligible bidders may obtain further information from the address below and inspect the Bidding Documents at this address from 08:00 – 13:00 and 14:00 – 17:00 local time, Monday to Friday inclusive.
  5. Qualifications requirements include:

    i) Experience as the main service provider in at least two (02) contracts of a similar nature and scope in the last five (05) years;

    ii) A minimum amount of liquid assets and/or credit facilities per lot as follows:

    Lot 1 – ZMW46, 023.00;
    Lot 2 – ZMW73, 636.00; and
    Lot 3 – ZMW12, 486.00
    .

    iii) Average Annual Turnover in any of the last ten (10) years per lot as follows:

    Lot 1 – ZMW552, 276.00;
    Lot 2 – ZMW883, 641.00; and
    Lot 3 – ZMW149, 834.00
    .

  6. A complete set of Bidding Documents in English may be purchased by interested bidders ON THE SUBMISSION OF A WRITTEN APPLICATION to the address below and upon payment of a non refundable fee of Zambian Kwacha Five Hundred (ZMW500.00). The method of payment will be Cash or Bank Certified Cheque.
  7. Bids shall be valid for a period of 90 days after Bid closing and shall be delivered to the address below at or before 10:00 hours on Monday, 25th July 2016. Electronic bidding shall not be permitted. Late bids will be rejected. Bids will be opened physically in the presence of bidders’ representatives who choose to attend in person at the address below immediately after 10:00 hours on 25th July 2016. All bids must be accompanied by a Bid Securing Declaration.
  8. There will be official site visits as follows:

    Lot 1 – Tuesday, 12th July 2016. All Bidders to meet at Mukuba Pension House, Lusaka at 09:00 hours;

    Lot 2 – Thursday, 14th July 2016. All bidders to meet at Catholic University in Kalulushi at 10:00 hours; and

    Lot 3 – Wednesday, 13th July 2016. All bidders to meet at Kabwe Environmental Offices at 10:00 hours.

  9. The address referred to above is:

    ZCCM Investments Holdings Plc.
    3rd Floor, Mukuba Pension House
    5309 Dedan Kimathi Road
    Lusaka, Zambia
    Tel: +260-211- 228833
    E-mail: kabwekd@zccm-ih.com.zm


Download full invitation

Invitation for Bids – Provision of Cleaning Services to ZCCM-IH (2016)

Copper price hits 3rd week high

TRYNESS TEMBO, Lusaka
COPPER price on Friday hit its third week highs on the international market stimulated by possibility of monetary policy easing in Britain and China.

Last week, Bank of England governor Mark Carney said the central bank would probably need to pump more stimulus into Britain’s economy over the summer after the shock of last week’s decision by voters to leave the European Union.

The commodity, which is Zambia’s top export, has gained over seven percent in the past three weeks.

According to Reuters, copper was trading up 0.2 percentage point at US$4,855 a tonne.

“London copper was on track on Friday for a third week of gains as expectations of monetary stimulus and lower interest rates underpinned the market, although gains were capped by concerns over growth in top consumer China,” Reuters reports.

Three-month copper on the London Metal Exchange has gained over seven percent in the past three weeks.

Commenting on the development, Singapore’s United Overseas Bank analyst Alan Liew said, “We had Brexit and there is market expectations of interest rates to remain low. It’s good for the commodities such as copper and zinc.”

Meanwhile, prices in minor metal cobalt climbed 99.3 percent representing a 10 percent increase over the last week, because of supply problems combined with production cutbacks.

The highest grade of cobalt, which is 99.8 percent, rose to around US$15 and US$17 a pound versus US$15 and US$16 a pound last week. Cobalt for a battery which is 99.3 climbed to about US$14.50 and US$16.50 a pound, from US$14 and US$15 a pound.

On Zinc, prices on Friday climbed to over one-year high, rising for a fourth straight session on expectations of shortages .The price increased by 1.1 percent to trade at US$2,128 a tonne the highest since June, 2015.

Expectations of potential shortages have fuelled buying in zinc but an inventory overhang means the metal is readily available for consumers.

Source: The Daily Mail

ZCCM-Investment Holdings (ZCCM-IH) wins the best exhibitor for the mining industry

By MILDRED KATONGO –
TIMES Printpak Zambia Limited scooped the second prize in the best exhibitor Stationery and Publishing category at this year’s 52nd Zambia International Trade Fair (ZITF) in Ndola.

The Zambia Daily Mail scooped the first prize.

Commerce and Trade Minister Margaret Mwanakatwe presented the awards yesterday at the ZITF Presidential pavilion grounds.

Zesco Limited scooped the best overall exhibitor and best theme interpretation, while Zambia Sugar walked away with the second prize in the best overall exhibitor category.

The Chairman’s award was given to Global Industries Limited, while ZCCM-Investment Holdings (ZCCM-IH) won the best exhibitor for the mining industry, with First Quantum Minerals (FQM) winning the second prize.

In the non-banking financial institutions best exhibitor, went to National Pensions Scheme Authority while Workers Compensation Fund Control Board scooped the second prize.

The Zambia National Commercial Bank (ZANACO) won the banking institutions best exhibitor followed by Indo-Zambia Bank.

The Zambia Forest and Forestry Industries Corporation (ZAFFICO) won the best exhibitor in the Agriculture category, followed by the Zambia Correctional Services (ZCS).

In the transport category, the Road Development Agency (RDA) walked away with the best exhibitor prize while National Airports Corporation scooped the second best prize.

Ministry of Chiefs and Traditional Affairs scooped the first prize in the Hospitality and Tourism category followed by Mulungushi Village.

Ndola City Council walked away with the first prize in the Government department exhibitor followed by Zambia Revenue Authority (ZRA).

Source: Times of Zambia