Business stories

Tue, 20 Dec 2016 13:34:23 +0000

Coffee project to produce 800MT for export

By BUUMBA CHIMBULU

OVER 800 tonnes of coffee will this year be produced by the Northern Coffee Corporation Limited out of the US$60 million investment, says company general manager Paul Bebbington.

Mr Bebbington said the company will this year produce 800 tonnes of coffee from a modest amount of 300 tonnes produced in 2015, representing an increase of 500 tonnes.

He was speaking when Minister of Finance, Felix Mutati, and his entourage toured the plantation at the weekend.

“This year we will produce just over 800 tonnes and we are expecting an increase in 2017. Our production is steadily increasing as the coffee plantain matures,” he said.

Mr Bebbington said the company currently has 1,555 hectares of coffee in the ground and that over 1,100 hectares was beginning to be produced.

He said 99.9 percent of the coffee was exported and that the main destinations for the company’s exports were Japan, Europe, United States and South Africa.

The company had a pilot outgrower scheme with 10 hectares in about seven locations aimed at empowering the local farmers.

“We want the coffee culture to get going again because it is low here. This is a long term crop which needs stability and good supply of power and steady laws without surprises,” he said.

And Mr Mutati said Government would support the coffee company by ensuring stability of power supply for irrigation.

Mr Mutati said such projects needed support as they were a proper way of diversifying the economy. He encouraged the company to actively work on the outgrower scheme to empower the local community.

He said He would engage the provincial minister and the company management to see how much money could be hived out from the emergent farmer fund in the national Budget worth US$50 million to support the outgrower schemes.

“They want to do at least 100 hectares and the challenge they have is irrigation and other infrastructure; if we set up the base for our people, they can be able to grow coffee. We have somebody that can buy from them, so we have a guaranteed market,” he said. And Northern Province minister Brian Mundubile said Government prioritizes agriculture and that such a project falls squarely within the its plans for a green revolution.

Mr Mundubile said Government would partner with the company under Public Private Partnerships (PPP) to promote the outgrower scheme.

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North West to support diversification efforts

By MARTIN MUSUNKA

THE North Western Chamber of Commerce and Industry (NWCCI) has pledged to help actualise President Edgar Lungu’s position on the need to diversify the Zambian economy.

NWCCI president Josephine Makondo said there was huge potential in other sectors of the economy like tourism, agriculture, manufacturing and construction which needed to be exploited.

Speaking after being retained as NWCCI president for another two years at the annual general meeting held at Solwezi Lodge at the weekend, Ms Makondo said her executive was ready to take the chamber to another level by being proactive in Zambia’s economic activities.

She said the NWCCI would support President Lungu’s call on the citizens to participate in the diversification of the economy which would create more jobs and business opportunities.

“This country has the potential to grow its economy and the only way this will be realised is by taking part in the diversification programme which our Government, through the able leadership of Mr Edgar Chagwa Lungu, has been emphasising.

‘‘We need to share President Lungu’s vision to accelerate the programme,” Ms Makondo said.

She said in its quest to engage business communities in North Western Province, the NWCCI has rolled out an ambitious programme of creating district chambers of commerce which would be used as a vehicle to sensitize people on the diversification programme.

She said apart from Musele Chamber in Kalumbila district, her committee managed to form Kasempa Chamber of Commerce and Industry, Mwinilunga Chamber of Commerce and Industry ans Manyinga Chamber of Commerce and Industry.

“It takes strong partnerships and collaborative efforts to address our business community needs and achieve goals to improve the quality of life, work and prosperity of our county,” she said.

And during the annual general meeting, Ms Makondo reported that in January 2016, the NWCCI acquired a piece of land behind the Solwezi City Mall where an office park would be constructed.

The other members who were elected unopposed were the three vice presidents, Kayula Lombanya from Zambia National Commercial Bank, who will be in charge of services; Edgar Makalili responsible for trade and commerce and former NWCCI executive secretary Mukumbi Kafuta for industry and manufacturing.

Peter Bwalya from Kukula Seed was also elected unopposed as treasurer with four members at large – Danny Kanjata, Agness Mwale, Raphael Sakuwaha and Lewis Kamau.

The meeting retained Julius Mwale and Precious Bwalya as trustees.
– Story courtesy of SUMA

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Napsa grabs 8.3pc stake in Zambeef

By SANDRA MACHIMA

ZAMBEEF’s shareholding structure has demonstrated the company’s commitment to growing the local agribusiness and retailing industries, making it possible for every working Zambian to participate in the company’s business of feeding the nation, says Zambeef chairman Dr Jacob Mwanza.

Mr Mwanza said having started out as a small-scale outfit, Zambeef has through its integrated business model grown to be the nation’s leading protein provider and prides itself in the consistent delivery of affordable, accessible and value added products and services across its value chain.

Thousands of Zambians now have a stake in the success of Zambeef Products because they own shares in the group through their pension funds.

The National Pension Scheme Authority (NAPSA), to which every employee and employer in the country contributes, was the single largest Zambian shareholder in Zambeef, owning some 25 million shares amounting to 8.3 percent of the company.

“We are a deeply rooted Zambian company and the country’s success is our success and vice versa. The fact that most pension funds in the country are shareholders of the company only goes to show just how deep those roots go with every working Zambian having a vested interest in Zambeef, and as such, our priority is focused on supporting the growth of the agriculture industry on the home front,” he said.

Mr Mwanza was speaking during the company’s annual general meeting (AGM) of shareholders in Lusaka yesterday.

He said the food processing company had over the years shown its commitment to the local cause in various ways such as the implementation of its 100 percent local procurement of livestock from local farmers, its outgrower schemes as well as employment creation with more than 6,000 permanent employees across the country.

“When customers buy from us, they are not only supporting us as a Zambian company, but also contributing to the growth of the pension funds for every working Zambian,” said Dr Mwanza.

Zambeef is listed on the Lusaka Stock Exchange (LuSE), enabling the public to buy and trade its shares.

Other pension funds and institutions with investments in Zambeef include Saturnia Regna Pension Fund, Barclays Pension Fund, Bank of Zambia Pension Fund, Zambia State Insurance Company (ZSIC), KCM Pension Fund, Kwacha Pension Fund, the Workers Compensation Fund and Professional Life.

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LuSE records market turnover of K4.6m

By Nation Reporter

The Lusaka Stock Exchange (LuSE) says in the week ended December 16, a total of 2,993,826 shares were transacted in 68 trades, resulting in a market turnover of K4,650,470.

According to LuSE daily commentary, share price gains of K0.08 and K0.14 were posted in CEC and ZAMBEEF respectively.

Trading also occurred in AELZ, ATEL, BATA, BATZ, CCHZ, LAFARGE and MAFS. Others were INVESTRUST, NATBREW, PRIMA RE, PUMA, SCZ, ZANACO and ZCCM.

The LuSE All Share Index (LASI) closed the week at 4,239.96 points, up by 0.99 percent from the previous close of 4,198.29 points.

The market rose to a capitalization of K57, 876,414,242 including Shoprite Holdings and K23, 637,208,261.54 excluding Shoprite Holdings.

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Mpulungu port in $35m modernization

By BUUMBA CHIMBULU

MPULUNGU harbour in the Northern Province is due for mordernization at a cost of US$35 million to allow the local producers export high volumes of products to regional markets of the Great Lakes, says port general manager Davis Kaluba.

Mr Kaluba said the port last month exported a total volume of 14,000 tonnes of commodities, an achievement, he said, was evidence that it was worth investing in the port.

He was speaking when Minister of Finance Felix Mutati and his entourage toured the port on a familiarization tour.

“In 2017, with the announcement that there will be no export ban, that will encourage traders from the Great Lakes market that have bought maize from Zambia to see this as port of choice; sow we must  be ready for that level of activity,” he said.

Mr Kaluba said the port mainly exported cement, clinker, sugar and maize.

He said 90 percent of the exports from the end of 2013 to 2016 was sugar.

He however said the export of cement had also gone up after the market stability in Burundi.

“Lafarge volume is targeted for around 4-5,000 tonnes per month and Dangote is in the similar range; with clinker the contract with Burundi is to export 10,000 tonnes per month. There is no record for sugar,” he said.

Mr Kaluba said there was need to invest in infrastructure at the port to accommodate higher volumes of exports.

He called on Government to invest in the rail transport to allow high volumes of exports move via rail.

“What happened in 2014 was unprecedented, we received investment for equipment exceeding US$5 million for Mpulungu,

“However,  we need development in standing infrastructure and logistic chain; we need our rail network to be working very efficiently to be able to move like 20,000 tonne volumes. This will preserves our roads,” he said.

And Minister of Transport and Communication Brian Mushimba said Government was currently undertaking a feasibility study on a modernization of the harbour which would open up markets with Burundi.

Mr Mushimba said the project would result in higher exports, leading to growth of the economy.

He also said Government would ensure that all forms of transport was efficient.

“Government does not want to keep the bans as they do not grow the economy. When you ban you close yourselves from the market for your produce, so our trajectory is to ensure that all bans are lifted,” he said.

Kasempa receives all farming inputs

By JACKSON MAPAPAYI

GOVERNMENT has delivered a full consignment of all the farm inputs in Kasempa district for the 2016/2017 farming season.

Among the inputs that have been delivered are 38,000 bags of D-compound, 34,000 bags Urea and 1,020 bags of white maize seeds.

Kasempa district commissioner Godson Sansakuwa told the Daily Nation in an interview that farmers in the district were happy that Government has delivered the inputs on time which will give them ample time to plant.

He said Kasempa district was a grain basket for the province, adding that it was gratifying to see that the inputs were delivered on time.

“Yes, I can confirm that we have received all the inputs required. As I am speaking, farmers are getting the inputs from the depot,’’ he said.

He said he was hoping that the distribution exercise will be completed on time especially that there was only two weeks remaining for planting.

He said Government has released  funds to pay farmers who supplied their maize to the Food Reserve Agency (FRA) during this year’s maize marketing season.

He said the money is in the National Savings and Credit Bank (NATSAVE) and that farmers will soon start receiving their money.

“I can only appeal to them not to misuse the money especially that we are in the festive season because soon schools will ope he said.