Wed, 24 May 2017 12:22:28 +0000
Zambia has no capacity to export mealie meal-millers
BY MAILESI BANDA
ZAMBIA does not have the milling capacity to supply the export market, Grain Traders Association of Zambia (GTAZ), executive director Chambuleni Simwinga has said.
Mr. Simwinga said the milling capacity in Zambia was only adequate for the supply of meali meal to the local market.
Reacting to a statement by the Millers Association of Zambia (MAZ) chairperson, Andrew Chintala, last Friday, Mr Simwinga appealed to Government to promote the export of meali meal as compared to the export of maize.
Mr. Simwinga said exporting meali meal at a large scale could only be possible if the milling companies increased their capacity to produce mealie meal.
“Millers cannot be calling for the export of mealie meal as compared to maize because the milling capacity is not adequate. The Zambian milling capacity cannot take in all the grain produced by farmers, hence the calls for the export of mealie meal lacks relevance,“ he said.
He explained that the excess from the maize produced in Zambia was massive as the country could only consume about 1.2 million tonnes of maize annually. Mr. Chintala last week said there was need to promote the export of meali meal as compared to maize to promote value addition and create jobs for the local people.
He said most customers in the export market preferred finished products like meali meal and maize bran, adding that MAZ was working towards implementing the Government’s emphasis on value addition.
“We are aware that Government policy is to encourage the exports of value added products to earn the economic benefits which include increased employment opportunities, foreign exchange generation and enhancing the export position of Zambia on the regional market,’’ he said.
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Bullish Kwacha roars back again
By BUUMBA CHIMBULU
THE Kwacha made a comeback against the dollar on Monday as the currency began the day trading at K9.300 / K9.350 from Friday’s close of K9.350 / K9.400.
The local currency has in the last few days absorbed the pressure from major currencies as it remained bullish.
According to Cavmont Bank Zambia, the Kwacha’s gain was mostly driven by subdued demand from importers and buyers, who were seen trading the currency pair cautiously.
“The local unit traded here for most of the day and briefly touched an intra-day high of K9.270 / 9.3200, before returning back to its opening levels.
“The Kwacha’s gain was mostly driven by subdued demand from importers and buyers who were seen trading the currency pair cautiously,” reads the report.
Cavmont Bank indicated that current trends seem to indicate a bullish Kwacha in the short to medium term, owing to a mismatch in demand and supply.
On the money market, commercial banks’ aggregate current account balance increased by K394.78 million to K1, 310.61 million while the overnight borrowing and lending remained unchanged at 14.10 percent.
Total funds therefore traded on Interbank were K233.00 million.
The bank also emphasised in its report the decision taken by the central bank to reduce further its benchmark lending rate from 14.00 percent to 12.50 percent after the Monetary Policy Committee meeting held on 16th May 2017.
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Investors inject $26mto bolster Zoona
By BUUMBA CHIMBULU
ZOONA Zambia has raised US$26 million from international investors for the expansion of the money transfer business in the sub-Saharan Africa region, company chief executive, Mike Quinn, has disclosed.
Zoona is currently present in Zambia, Malawi and Mozambique.
Mr Quinn said Zoona had embarked on ambitious plans to expand in the region by developing an ‘‘eco-system of products and services’’ that could improve the financial well-being of millions of people.
“We have 1.7 million customers that have transacted in the last quarter, this number has almost doubled those that transacted last year. And we have reached US$26 million from the international investors.
“We have plans of where we are going next; we are hoping to expand to more countries. We have big ambitions,” he said.
He was speaking at a Zoona transactions investor dinner in Lusaka recently. Mr Quinn said Zoona was planning to unleash entrepreneurship skills by 2025 as it was the engine of the economy.
“We also want to unleash the entrepreneurs that can create a million jobs. We have already created 3,000 jobs, we want to be an engine of job creation in an economy,” he said.
And Zoona chief marketing officer, Lelemba Phiri, said the company had since 2009 enabled more than 2,000 entrepreneurs, most of them women.
Ms Phiri said the company had invested in industry-leading centres of learning in four key districts across Zambia where every Zoona entrepreneur could benefit from business, computer and financial literacy training at no cost.
“Our approach of investing in the training and empowerment of our agents has a track record of building sustainable businesses that stimulate the economy,” she said.
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10,000 peasant farmers join insurance scheme
By BUUMBA CHIMBULU
ABOUT 10,000 small scale farmers accessed the Zambia State Insurance Corporation General Insurance (ZSIC-GI’s) crop insurance during the 2015/2016 farming season.
ZSIC-GI, in conjunction with the Zambia National Farmers Union (ZNFU), is currently offering both crop and livestock insurance.
ZSIC director (branch operations), Mizinga Masinja, said his company was offering group crop insurance to farmers for their crop.
Mr Masinja explained that the crop insurance under its macro-insurance, which was undertaken by ZNFU, varied depending on the season as some crops were seasonal.
“We partner with ZNFU who are already working with farmers and have a big book with farmers. So when we are dealing with them as a group, though the premium maybe small, but when you put them together, you get something meaningful. So we work with ZNFU who gives us details of farmers and what crops they will grow,” he said. He said crops were insured against fire, floods, transportation and robbery, among others.
He said ZSIC was this farming season targeting to engage more than 10,000 farmers under this exercise.
“Under crop insurance, we ensure winter crop which is wheat and barley against a number of things including fire and degradation. In summer we ensure crops such as maize and soybean,” he said.
Mr Masinja said ZSIC was also considering partnering with commercial banks in assisting farmers with finance.
“We see some banks coming on board as the projects requires financing to lend some small loans to framers; so that is the approach we have taken when dealing with small scale farmers under macro-insurance,” he said.
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Pension fund launches 72m shopping mall
By BUUMBA CHIMBULU
A US$72 million shopping mall funded by the Public Service Pensions Fund (PSPF) was yesterday commissioned in Lusaka.
The Alick Nkhanta Mall, along Alick Nkhata road in the Mass Media Complex area, is part of the PSPF’s investment expected to boost revenue for the fund while reducing pressure on the Treasury.
It is projected that upon completion of the mall, the investment portfolio of the fund will increase to an estimated K50 million per annum.
The shopping complex, whose construction started last year in September, is scheduled to be completed in mid-2019.
Once completed the mall, being constructed by China State Engineering Corporation (CSEC), is expected to create over 500 permanent jobs.
The investment includes a 3-star hotel, six-storey office building and expansion of the Alick Nkhata road for ease access and improved traffic flow.
According to PSPF board chairman, Moses Banda, the project would make the fund financially healthy and sustainable.
He was speaking at the ground breaking ceremony.
Dr Banda explained that the investment signified the commitment of the fund and its concern to the plight of the pensioners, members, retirees and beneficiaries of deceased estates.
“The fund is aware of the importance Government attaches to the financial position of the fund and indeed its investment criteria as it is such decision which relieves financial pressures on the Treasury,” he said.
He also said PSFP would continue to diversify investments in other asset classes to improve returns on investments.
And PSFP chief executive, Richard Mwiinga, said the fund was dedicated to diversifying its investment portfolio and improve the financial health by creating value.
Dr Mwiinga said almost 8 percent of the project had been completed.
Meanwhile, Minister of Commerce, Trade and Industry (MCTI), Margaret Mwanakatwe, said Government was undertaking comprehensive public pension reforms to ensure a viable and sustainable pension system.
Ms Mwanakatwe said she was confident that the project would boost the financial health of the fund and reduce pressure on the national Treasury on account of pension obligation payments.
“Government appreciates the board’s initiative of providing home ownership scheme and microfinance loans to its contributing members to prevent destitution upon retirement,” she said.
