Business News

Fri, 09 Jun 2017 10:44:46 +0000

Mpulungu may be export, fish canning centre

By MAILESI BANDA

THERE are plans to develop the Mpulungu port into an international development zone by processing and canning the English fish breed for export, Port Management Association of Eastern and Southern Africa (PMAESA) secretary general Nozipho Mdawe has said.

Ms. Mdawe said there was need for Zambia to enhance the fishing sector by engaging in processing and canning of fish.

She said the English fish was a marketable fish that had high demand on the international market.

“There is a tasty and nice fish bred in Mpulungu and now imagine if we started processing the fish for export, this could boost the economy and lead to job creation,“ she said.

She lamented that it was unfortunate that even with the vast potential to produce enough fish, Zambia still imports fish from China.

She said Zambia imported over 46,000 tonnes of fish from China annually even with the biggest number of water bodies in Southern Africa.

Ms  Mdawe said there was need to promote what Africa could provide which could lead to economic development in the continent.

She appealed to the Zambian Government to help in the creation of an enabling environment for the growth of the fish processing and export in the country.

“Plans are under way to take Zambians for training in Seychelles in the processing of fish in a bid to build human resource capacity in the sector,” she said.

She said her organization was working towards modernizing the agriculture sector and maximizing the benefits, adding that the plan was to bring economic development to Mpulungu.

“The objective of the association is to improve ports and the transport industries efficiencies while serving the needs of the regional economies,” Ms Mdawe said.

She said that could only be done through the sharing of knowledge, experiences, skills, trade and transport facilitation by the stakeholders.

Insurers meet to analyse industry

By BUUMBA CHIMBULU

THE up-coming annual conference of the Insurers Association of Zambia (IAZ) will reflect on the challenges faced by the industry and the economy, says association consumer education officer, Kambole Chituwo.

The conference is set to take place from 18th to 20th June 2017 in Livingstone under the theme “Bouncing Back from Hard Times”.

According to Mr Kambole, the conference provided opportunities on how stakeholders could contribute to challenges faced by the economy and the insurance industry.

“For any sector of the economy, consultation is important. The sharing of ideas and also to find out what others in other countries are doing is important for our own growth.

Mr Kambole said IAZ was confident that the conference would provide a learning experience which would add value to the insurance industry.

He urged all stakeholders to attend the conference and share ideas while forming new partnerships.

“It will reflect on the challenges that the industry and the economy as a whole has been going through and see how we can turn them into opportunities to do and reach further.

“We are confident that the conference will prove to be a learning experience which will add value to service delivery which in the end will impact how Zambians are served by insurance providers,” he said.

4,775 savings groups formed to boost financial inclusion

By BUUMBA CHIMBULU

THE Financial Sector Deepening Zambia (FSDZ) has facilitated the formation of 4,775 savings groups in an effort to enhance financial inclusion in the country.

The groups have 104,515 active members as at the end of reporting period in March 2017.

FSDZ project manager- informal finance, Chipili Mwaba, said those were facilitated by FSDZ’s implementing partners.

She said in an interview with Daily Nation that FSDZ would continue working with partners to support the formation of 1,300 savings groups with 26, 000 members on the Copperbelt.

“We are also going to facilitate savings group linkages with formal financial institutions; this will involve research and pilot of recommended products and services appropriate for the linkage from informal to formal access.

“This is in response from savings group members across the country for more financial products that will enhance the savings group products and security of savings,” she said.

Ms Mwaba said FSDZ would also develop a digital innovation for savings groups for both record keeping and transactions.

She said FSDZ would work with formal financial service providers and mobile money operators to pilot the innovation that would enhance efficiency of savings groups.

Ms Mwaba also said FSDZ was working with the traditional leaders in Luapula Province in the design of a program that would improve financial inclusion through existing traditional structures in the area.

Ms Mwaba said the traditional leader’s financial inclusion program would work to support and facilitate access to robust financial services both for informal savings groups formation and formal access.

“We are working with the traditional leaders in Luapula Province in the design of a program that will improve financial inclusion through existing traditional structures in the area,” she said.

Africa catches on in biotech cropping

By PRISCA LUMINGU-BANDA, LILONGWE, MALAWI

A TOTAL of 18 million farmers in 26 countries grew 185.1 million hectares of biotech crops in 2016.

The International Service for the Acquisition of Agriculture Biotech Application (ISAAA) AfriCentre director Margaret Karembu said this during the launch of the annual report on Global Commercialisation of Biotech Crops 2016 aimed at highlighting the milestones on biotechnology and biosafety achieved in Africa during this period in Malawi recently.

Ms Karembu said there was an increase of 5.4 million hectares or 3% percent from 179.7 million hectares in 2015.

Ms Karembu said except for the 2015 adoption, that was the 20th series of increases every single year and notably 12 of the 20 years were double digit growth rates.

She said for Africa, 2016 was the 19th year of commercialization of biotech crops as a total of 13 countries were involved, up from 11 in 2015.

Ms. Karembu said Kenya, Malawi and Nigeria transitioned from conducting experimental research or confined field trials to granting approvals for environment release which could lead to commercial planting in the next one or two years after national performance trials.

She added that six countries conducted multi-location trials in preparation for general release. These were Burkina Faso (cowpea), Ethiopia (cotton), Ghana (cowpea), Nigeria (cowpea and sorghum), Swaziland (cotton) and Uganda (bananas and maize).

Zambia Sugar profit up by 25 pc

By MAILESI BANDA

THE Zambia Sugar Plc operating profit for the 2016/17 production season has increased by 25 percent year on year, from K327.4 million in the 2015/16 season to K410.5 million in the just ended production season. 

Zambia Sugar managing director Rebecca Katowa explained that the figures represented an operating margin of 17 percent, adding that finance costs increased by 112 percent to K469.8 million.

Ms. Katowa said the increase in financial costs arose from the new refinery funding experienced in the year under review, adding that it impacted negatively on finance costs.

She said closing borrowings increased to K268.9 million from K1.955 billion, mainly due to the higher working capital requirements and final capital expenditure on the new refinery investment.

She explained that the 2016/17 sugar production season was disappointing in terms of cane yields and sucrose in cane, with the annualized average cane yields across the entire harvest area declining by 1 percent year on year, resulting in the total cane supply declining by 3 percent.

She said that was mainly attributed to drought conditions experienced between November 2015 and January 2016, and associated power interruptions which restricted irrigation.

She stated that small-holder schemes contributed around 10 percent of the total cane supplied to the mill.

She explained that the total sugar production decreased by 6 percent, from 380,000 tonnes to 359,000 tonnes, corresponding with the reduced cane supply.

“Despite the growth in revenue, the domestic market recorded a 17 percent drop in sales volumes. This was mainly driven by declining disposable income levels, caused by the generally challenging consumer market conditions and competitive pressure from illegal sugar imports, “she said.

She revealed that the total revenue grew by 23 percent from K2.02 billion to K2.48 billion, adding that in order to maximize revenues from reduced production, the export sales mix was adjusted favorably by reducing bulk EU exports by 74 percent.

She stated that Zambia Sugar Plc had injected in excess of K968 million into the local economy.