NEWS :

Regarding Covid-19 : Zambia has been hit by the fourth wave of Covid in December 2021. The opening of schools was delayed until the 25th of January due to the cases that increased and Government reverted to rotational working from the 5th of January.

Mid-January, 1,505,032 people had received the primary doses of a COVID-19 vaccine.

Regarding GDP growth : Zamstats, the Zambia Statistics Agency released its provisional GDP estimate for the third quarter of 2021, which showed that, from the same period in 2020 , the economy grew by 3.5 percent. The construction sector accounted for 18.3 percent of this third quarter GDP estimate, followed closely by wholesale and retail trade (18.2 percent) with mining and quarrying accounting for 15.8 percent. Despite industrialisation being a priority for Zambia, manufacturing accounted for only 8.5 percent of third quarter GDP (the fifth ranked sector after transport which accounted for 9.1 percent).

Regarding agriculture : hopes are fading that there will be a repeat bumper maize harvest in the 2021/22 agricultural season to support the 2022 economic growth target. Early rains in November forcing replanting by those farmers who planted early (and did not have irrigation). Further, while rains re-commenced in the second half of December, they remained erratic until the end of the year. However, from the beginning of January, belatedly, there were heavy and often damaging rain with flooding in many farming areas. The Government would like to promote large scale agricultural estates through the development of farm blocks and to replace the Farmer Input Support Program (FISP) with a more “cost effective” agricultural support program from the 2022/23 season. The design of the new program is expected to be complete by June this year, in time for the 2022/23 agricultural season.

Regarding inflation rate : consumer price inflation continued to decline in December 2021. Unfortunately, these December inflation rates will not have captured the effects of the rise in the price of petrol and diesel that took effect from midnight on the 16th of December.  The increased fuel prices almost immediately led to an upward adjustment in bus prices. The fuel prices rise has already resulted in price hikes for essential goods and services. Further, there would be a move to implement cost reflective electricity tariffs in 202240, with the “first increase” of 13 percent to take effect in March 2022.

Regarding communication : One thing that businesses in Zambia would welcome is improved telecommunication services. MTN Zambia, one of Zambia’s leading telecommunication providers, launched its pilot 5G cellular network, the first of its kind in Zambia. It is expected to improve internet speeds and customer experience. Through this pilot launch of 5G cellular network, lessons will be learned and used to deploy 5G connectivity to the rest of the country. Source : Martin Phillips, Monthly economic and fiscal brief.

CALL FOR TENDERS AND COMMERCIAL NEWS:

EMERALD MINE FOR SALE :

Emusa Mining Company Limited (EMCL) was granted a prospecting license for Emeralds on Plot 443A in Lufwanyama district by the Zambian Ministry of Mines and Minerals Development in 1992. The license has been renewed several times, and EMCL currently retains a license for small scale emerald exploration activities on Plot 443A, with the current license expected to expire on October 6th, 2024. As it has in the past, EMCL will seek to renew its license closer to the expiration date. The plot covers 248.9 hectares, over which EMCL has exclusive exploration rights. Exploration surveys and trial mining activities conducted by EMCL have led to the discovery of Beryl and Emeralds on the plot.

Exploration work conducted on the property includes magnetic and radiometric surveys, pitting and trenching activities, geological mapping activities, and core drilling activities.

EMCL is currently owned by two shareholders, who are seeking to monetize their shareholdings in the business. The shareholders are open to pursuing a partial or complete sale of their shareholdings, and are also open to pursuing alternative partnership structures for new entrants seeking to capitalize on the exploration opportunity on the plot.

The interested parties can contact on email address: emusazambia@gmail.com

KEY REFORM : 

The Seventh National Development Plan (7NDP) formally expired on December 31st but the Eighth National Development Plan (8NDP), covering the 5-year period up to the end of 2026, has yet to be launched.

Recommendation of event: 

INVITATION - PwC VIRTUAL EVENT - 2nd DECEMBER 2021 - 11am

Price Waterhouse Coopers (PwC) (a member of the EUZBC) in liaison with the EUZBC board, is organising webcast series of Doing Business in Zambia on 2^nd December 2021 virtually from 11am to 12:30. The discussions will provide insights to existing and prospective businesses from the European Union. Specific issues to be discussed include:

1. Zambia at a glance

2. Implications of recent political and economic developments on businesses

3. Overview of key budget pronouncements for 2022 including a discussion on investment incentives

4. Current international tax considerations

5. Question and Answer.

INTERESTED? 
Registration here: https://event.webcasts.com/starthere.jsp?ei=1513284&tp_key=f6b28adb97

The Covid situation in Zambia is good with less than ten patients in hospital by mid-October. The Government lifted all restrictions but a fourth wave is predicted during the raining saison.
Vaccination rates have increased but, beginning of October only 2.7 percent of the total population had been fully vaccinated. The Government hope that 30% of the eligible population will be vaccinated by end of December.

The pandemic hit various sectors differently in 2020. The largest contractions were in wholesale and retail trade (of negative 12.6 percent), the education sector (negative 19.3 percent), public administration and defence (negative 15.9 percent), construction (negative
5.4 percent), accommodation and food services (negative 22.4 percent) and the arts, entertainment and recreation sector (negative 71.6 percent). However, several sectors still saw growth in 2020. Agriculture, forestry, and fishing grew by 17.2 percent, transportation and storage by 13.8 percent, mining and quarrying by 8.0 percent and the information and communications sector grew by 14.3 percent. Financial and insurance services grew 13.0 percent, electricity by 3.1 percent, water by 2.1 percent and manufacturing by 1.0 percent. Health and social work grew by 7.4 percent and the real estate sector by 3.5 percent.

The Zambia’s annual consumer price inflation rate in September fell 2.3 percentage points, to 22.1 percent – Both food and non-food price inflation fell, although annual food price inflation (at 29.6 percent) is still more than twice the rate of non-food price inflation (at 13.6 percent).

The Stanbic Bank Zambia PMI increased to 51.2 in October of 2021 from 50.3 in September, signaling a stronger improvement in business conditions, and that was the greatest one since June 2018.

PUBLIC TENDERS: 

Please, have a look on that website. You will find interesting posts from serious international organisations :
https://www.onlinetenders.co.za/tenders/zambia

REFORM:

The Government is working on the budget 2022.
President Hichilema said that the 2022 budget would have fairly wide-ranging changes to the tax system to make it more equitable. He said that his Government is “tackling the punitive tax regime.”
During his campaign he promised free education for all. Considering the State’s resources, his aim is to give free education to vulnerable children.
Regarding the abyssal debt, a debt restructuring strategy will be designed by end on 2021 to guide Zambia’s engagement with its creditors.

Democratic elections were held in August and a new President were elected without any violence. President Hakainde Hichilema has appointed Cabinet Ministers, Provincial Ministers and a Senior Private Secretary.

Among them :  Minister of Lands and Natural Resources : Hon. Elijah Muchima  Minister of Transport and Logistics : Hon. Frank Tayali  Minister of Infrastructure, Housing urban Development : Hon. Charles Milupi  Minister of Technology and Science : Hon. Felix Mutati  Minister of Tourism and Arts : Hon. Rodney Sikumba  Minister of Small and Medium Enterprises: Hon. Elias Mubanga  Minister of Green Economy and Environment: Hon. Collins Nzovu  Minister of Livestock and Fisheries : Hon. Makozo Chikote  Ministry of Mines and Minerals : Hon. Paul Chanda Kabuswe  Ministry of Agriculture : Hon. Mtolo Phiri  Ministry Of Commerce and Trade : Hon. Chipoka Mulenga  Provincial Minister Copperbelt Province : Hon Elish Matamba  Senior Private Secretary of State House : Mr. Alfred Chipoya Zambian Kwacha is feeling better : 1$= 16,9 ZMW while the rate in June was 1$ = 23 ZMW The Stanbic Bank Zambia PMI edged up to 49.8 in August of 2021 from 49.4 in the previous month, signaling encouragement for the Zambian private sector. On the price front, input cost inflation slowed to a seven-month low. Looking forward, business sentiment improved but still remained below the series average. source: Markit Economics

Have a look on that site which will give you the new call of tenders : https://www.onlinetenders.co.za/tenders/zambia

Zambia is currently badly affected by the Covid’s second wave that is in July at the highest. The Stanbic Bank Zambia PMI (Purshasing Manager Index) edged down to 49.3 in June of 2021 from 49.7 in the previous month, signaling a marginal deterioration in Business conditions in the Zambian private sector. New orders fell slightly due to a lack of money in circulation (contraction of credit) but the consumer demand is still high creating a rise of the business activity. Regarding the price, purchase prices are rising sharply, largely due to the weakness of the Zambia Kwacha. This led the steepest output price inflation since November 2015. The Zambia’s Monetary Committee projects inflation to average 21.9 % this year. The 2020-21 farming season was a good one for grains and cereals. The tobacco production rose 50%. The cotton will increase by around 10% due to an increase of the planted area. 286,000 farmers are growing cotton across the country in 2020-21. Copper prices have remained high, that will bode well for economy. Looking forward, business confidence is positive but remains below average, amid worries about the Covid-19 pandemic. The country faces a huge external debt : 12,75 billion US$. This is the Central Government’s debt figure and doesn’t include the arrears that have arisen on this debt due to default and debt suspensions.

Some information about representatives: 

The Embassy responsible for Zambia is in Daar Es Salaam (Tanzania). Peter Van Acker is the current Ambassador. Mr. Diego Casilli (IT/EN) is the Honorary Consul based in Lusaka (Zambia). He is also the CEO at Napoli Property Ltd. The Belgian community is a small one, mostly based in Copperbelt and Lusaka & surrounding. Zambian don’t have any Belgian Commerce Chamber but there is a EU-Zambia Business Club chaired by Mark Lüring (D/EN). He is also the Drake &Gorham Managing Director.

PUBLIC TENDERS:

Visit 2 official sites : Zambia Public Procurement Authority : www.zppa.org.zmDelegation of the European Union to Zambia and COMESA://eeas.europa.eu/delegations/zambia/area/jobs-funds_en

UPCOMING REFORMS:

The next poll will be held on the 12th of August 2021. The 7th National Development Plan expires end of that year. The next one is in progress with new targets and priorities. We can expect some fiscal reforms as IMF said “Key challenges remain including the implement reforms to correct large fiscal imbalances…”