Business News

Mon, 05 Jun 2017 13:15:10 +0000

Tea production to increase

By MAILESI BANDA

THERE are plans to increase the production of tea at the Kawambwa tea farm from 400 hectors to over 1000 before the rain season, Luapula province minister Nickson Chilangwa has said.

The provincial minister said Zambia Forestry and Forest industries Corporation  (ZAFFICO)was mobilising money to start irritating the tea in order for them to produce a winter crop.

Speaking in an interview with the Daily Nation, he said ZAFFICO saw it vibrant and economically viable to introduce irrigation adding that that was meant to increase productivity and grow the tea industry in Zambia.

Mr. Chilangwa said currently the crop produced at the company was only rain fed.

“We have plans of extending the over 400 hectors of land at the Kawambwa Tea Company to over a thousand and introduce irrigation to increase production,” he said.

The provincial minister who is also Kawambwa Member of Parliament emphasised the government’s commitment to diversifying the economy from mining to agriculture adding that crop diversification would contribute to the growth of the agriculture sector.

He explained that ZAFFICO was currently mobilising financial resources for the expansion and recapitalization of the company.

“Currently the people in charge of Kawambwa Tea Company are ZAFFICO and they are mobilizing resources for recapitalization and once these resources are found they will go towards the irrigation project,” he said.

He explained that the investment into the irrigation facilities would enhance the capacity of the tea company.

Bio-fuel has great economic potential – expert

By MAILESI BANDA

THERE is potential for Zambia to export bio-fuels if the sector is supported and well managed, Biofuels Association of Zambia (BAZ) chairmanThomson Sinkala has said.

Professor Sinkala said if Zambia produced bio-fuels competitively, it could penetrate the neighbouring markets due to competitive prices.

Speaking in an interview with the Daily Nation, Mr Sinkala said for the countries that did not have sufficient land for producing bio-fuels, Zambia had the capacity to fill-up their bio-fuel gaps.

He appealed to Government and the private sector to work together towards the development of the sector and penetrate the export market.

“There is vast potential in the production of bio-fuels for the local and export market due to the abundant land we have and we are able to develop the sector into something marketable if we can do what needs to be done like having the private sector and the Government playing their roles, “he said.

He explained that at 4.85 hectares per person, Zambia had a competitive land ratio compared to other neighbouring countries.

He said what was required was for Government to facilitate low interest funding to assist the development of the sector.

He said aside from export, the local demand for bio-fuels was also huge.

He revealed that the Government had declared a 10 percent blending ratio for ethanol into petrol, which was a market of about 50 million litres per annum and 5 percent blending ratio for biodiesel into diesel, which was also a market of about 50 million litres per annum.

He stated that that market could be the starting point for the development of the industry.

Stressed market pushes up non-performing loans

By BUUMBA CHIMBULU

COMMERCIAL banks in the first quarter of 2017 recorded an increase of 3 percent in non-performing loans (NPL), owing to a stressed market experienced in 2016, says the Bankers Association of Zambia (BAZ).

An NPL is the sum of borrowed money upon which the debtor has not made the scheduled payments for at least 90 days.

According to BAZ chief executive officer, Leonard Mwanza, commercial banks’ NPL in the period under review increased to over 10 percent from 7 percent recorded in 2015.

“The banking sector in the first quarter of 2017 has been slow, we have noticed an increase in non-performing loans, and a lot of arrears in that sector; so there has been stress on the balance sheets.

“We have seen the graph that on NPL from 2015 to 2017 first quarter moved from somewhere around 7 percent to close above 10 percent which is more than the minimum threshold for required total NPL loans,” he said.

Mr Mwanza explained in an interview that the industry was coming from a market which was stressed with tight liquidity, causing high interest rates which became unaffordable to clients.

He also said the banks had not registered much increased credit extension owing to the increase from the NPLs.

He however said with improved liquidity and reduction in interest rates, banks would now start targeting growth sectors of the economy in terms of financial support.

Meanwhile, Mr Mwanza said the International Monetary Fund (IMF) package under negotiation was good for the economy as it would stabilise the fiscal space while spurring some economic activities for the stalled projects.

“I think we should be able to focus the fundamentals on interest rates, inflation and the Kwacha remaining steady into the next quarter and probably go beyond the fourth quarter of 2017.

“There is hope for more economic stability through the IMF programme; we hope that the fiscal space lacking in the past can be restored to fullness and the two sides can restore the balance,” he said.

Ecobank drives for cashless society

By SANDRA MACHIMA

ECOBANK is committed to supporting the objective of the Government on financial inclusion and cashless banking, says the bank’s managing director Kola Adeleke.

Mr Adeleke said Zambia was on the move and Ecobank Zambia was there to support the economy grow even further.

He said with unveiling of the Ecobank mobile app as well as celebrating Ecobank on Ecobank’s umbrella of digital offerings, the bank was committed to ensuring that banking was made simpler, faster and more convenient for the customers.

“The Mobile App integrates many functions that will enable customers open an account on the phone, transfer funds across 33 different countries and pay for goods and services instantly.

‘‘Customers can open an Xpress account in the comfort of their homes at their convenience,” he said. Mr Adeleke said the bank had given an opportunity to all Zambians who had registered sim cards to open an account with Ecobank without going through hassles of documentation and its associated costs.

“We have supported our customers in critical sectors of the economy such as agriculture, electricity, oil and gas, construction, manufacturing and telecommunications, as well as at individual level. The bank has also supported customers through the provision of personal loans and various saving products to help them manage their finances,” he said.

Ecobank Mobile App is the first ever unified digital banking platform to be used in 33 countries across Africa, and would improve on cross-border trade and financial inclusion in many African countries.

Zambian maize to trade on JSE

By BUUMBA CHIMBULU

ZAMBIAN grain dealers are currently being registered by the Zambia Agriculture Commodity Exchange (ZAMACE) to trade with their South African counterparts while accessing global markets.

This follows the successful setting up of a contract for Zambian maize that will be denominated in United States dollars by the Johannesburg Stock Exchange (JSE).

ZAMACE has since started registering brokers to trade with their South African counterparts through the JSE.

ZAMACE executive director, Jacob Mwale, said in an interview that the Zambian grain contract was a 10-tonne, dollar-dinominated contract for the futures market.

Mr Mwale said the product was ready to go and the first trade would take place within the next few months.

He explained that this was a hedging instrument against price fluctuations and could be used by all value chain players to manage its exposures especially for managing the price movements.

“The ZAMACE collaboration with the JSE will give exposure to Zambian grains on the world markets in addition to the regional markets. We have niche commodities that are non-GMO,” Mr Mwale said.

Mr Mwale said ZAMACE would enhance the publicity and sensitisation through radio and other modes of communication to increase participation of farmers on the warehouse receipt system.

He urged farmers, cooperatives, agro dealers and aggregators to sign up with ZAMACE to trade on the spot trade in their own right.

He said ZAMACE would use the trading platform to collect market prices and disseminate them through the website, digital screens in strategic locations and emails to stakeholders.

“We will bring to the spot trade platform more grains to be traded like cowpeas, groundnuts and sunflower in addition to soya beans, maize and wheat,” he said.