GOVERNMENT has described the just ended Zambia Mining Investment Forum held in the UK which attracted over 100 mining firms, financiers and other stakeholders as a success.

Minister of Mines Christopher Yaluma said the country prepared adequately to host the forum by addressing a number of issues that had affected the mining sector.

“…unlike last year, where there were a lot of outstanding issues with the mines, which have since been resolved,” he said.

Mr Yaluma said Government has addressed the VAT refund issues with the mines and Zambia Revenue Authority has started disbursing payments to mining companies.

“Also, other inconsistencies in taxes and power deficit then were cited as issues, during the previous forum, but these and several matters have however been resolved and this is how Government wants things to be done,” he said.

He said Government will continue to dialogue with mining companies to ensure that policy decisions made do not negatively impact the industry, which is the mainstay of the country’s economy.

“We are enjoying a good relationship with the mines and we will continue to do so to ensure a win-win situation that will eventually benefit all,” he said.
Meanwhile, Mr Yaluma said there is need to diversify the mining sector away from the traditional copper.

He has explained that Zambia has several other minerals, which are least affected by global turbulence in prices which can help hedge the local mining sector against such unforeseen turbulences.

Mr Yaluma has noted that the gemstones sector is doing so well but needed to be developed further.

Source: Daily Mail

ZAMBIA’s Ambassador to Sweden Anthony Mukwita says the country’s top five placement as a preferred destination of investment will increase interest from international investors seeking to develop investment opportunities.

Last week, Zambia was ranked the fifth most attractive investment destination in Africa due to significant domestic investment and access to money supply, according to a report by a global equity and investment firm.

In its latest Africa Investment Index report, Quantum’s Global Group, which is an international group of companies active in the areas of private equity and management investments, noted that Zambia follows Africa’s second largest economy, South Africa, which is fourth.

Commenting on the development, Mr Mukwita said the placement coming from an independent international rating organisation largely breaks the myth of negativity peddled by critics and re-affirms Zambia’s position internationally as a safe place to take money.

“The great thing about this ranking is that the favourable rating is coming from independent organisations and not Zambian organisations with a stake in the Zambian economy,” he said in a statement recently.

He, however, cited Sweden as one place where traffic and interest in Zambia has spiked upwards in recent months, especially since the re-election of President Lungu and his open pledge to fight graft.

Source: Daily Mail

THE stability in the price movement of various consumer products has led to Zambia’s annual inflation rate for April to remain the same as recorded in March at 6.7 percent, Central Statistical Office (CSO) says.

CSO director of census and statistics John Kalumbi, however, said prices are increasing but at a slow rate, which shows the confidence in the economy.

Mr Kalumbi said at the monthly briefing yesterday that of the 6.7 percent, food and non-alcoholic beverages accounted for 3.3 percent while non-food items accounted for 3.4 percent.

“The year-on-year inflation rate as measured by the all items consumers price index for April 2017 remained the same as that was recorded in March 2017 at 6.7 percent. This means that on average, prices increased by 6.7 percent between April 2016 and April 2017,” he said.

He said the annual food inflation rate for April 2017 was recorded at 6.1 percent from 6.7 percent in March, representing a decrease of 0.6 percentage point.
He attributed the decrease to price changes for cereals such as maize grain, breakfast and roller mealie meal as well as vegetables and fruits.

Mr Kalumbi also said the annual non-food inflation rate for April 2017 was recorded at 7.5 percent from 6.6 percent in March, representing a marginal increase of 0.9 percentage point.

He said the increase is due to transport and price changes for the purchase of motor vehicles.

And a check on selected products indicate that the national average price of a 25 kilogramme bag of breakfast mealie meal decreased by 2.6 percent from K103.46 to K100.73 while roller mealie meal declined by 2.7 percent from K85.67 to K83.32.

ZESCO Limited managing director Victor Mundende says the country will continue facing challenges in the electricity sector unless a cost-reflective structure is implemented.

In an interview last week after holding a series of meetings on the importance of migrating to the new tariffs in Luapula, Muchinga and Northern provinces, Mr Mundende said there is great opportunity for growth but low tariffs are hampering the development of the sector.

“Dynamics of the economy are changing, but the price for electricity has not changed. While adjusting the tariff, we are very mindful that a lot of people can’t afford.

“So we have a lifeline tariff which is 100 units per 15 ngwee. We have applied to adjust that from 100 to 300 units so that many people can access power at the same price,” he said.

He said Zesco is borrowing money to invest in infrastructure to develop interconnectors that will ease the trading of power in the region.

“We have also embarked on interconnectors from Zambia into Tanzania into Kenya. We are also looking at the Northern part into Congo DR, so we will be doing a line from Solwezi into Kolwezi. We are talking about these projects, now how do we achieve these expensive projects? These projects require appetite from the investors to come and invest. For us to create appetite, we need a correct tariff,” he said.

Meanwhile, Minister of Energy David Mabumba says the country’s economic diversification agenda through industrialisation will be difficult to achieve if a correct tariff structure is not applied to attract investments and ensure security of reliable electricity supply.

Mr Mabumba said provision of electricity has the capacity to unlock the potential of rural areas.

“At Shiwang’andu, Zesco is generating one megawatt and this has helped increase business activities. For instance, Shiwa Safaris used to spend about US$8,000 per month before but now they are spending less than that since they now have reliable power,” he said.

Source: Daily Mail