Z i W amb a eekly... for busy people

Week 21 │ 20 May 2016 │ Issue 276 │ Volume 7 │ www.-weekly.com │ FREE

Who will be our new president?

Five presidential candidates have successfully paid half of the presidential nomination fee This week in10 of K75,000 by 17 May as required, reported the Daily Nation. The five candidates are: (PF) – turned to politics in 2000, initially joining UPND, but 1. Who will be our new president? later moving to the PF. In 2011, he entered parliament as PF MP, and from here he rose Portraits of the five presidential candidates, through the ranks to eventually take over from the late President Sata. Before that, he who paid their nomination fee in time worked as a lawyer, starting in 1981, when he graduated as one of the country’s top law Page 1 students, to becoming a partner in Andre Masiye and Company in 1993. Lungu stems from Eastern Province, but grew up in Kitwe on the Copperbelt. Lungu has denied rumours of health issues, but he is reportedly fond of drinking. Lungu, 59, is married with six children. 2. What has PF accomplished? President Lungu looks at the PF’s promises United Party for National Development (UPND) – (HH) has a and the state of the economy background in the corporate world. From the age of 32, he served as CEO of Coopers & Page 4 Lybrand (later Grant Thornton), overseeing the liquidation of many Zambian parastatals. This has led to (unproven) accusations that HH benefitted unduly from the privatisations. 3. What has PF accomplished? Nevertheless, he is the wealthiest presidential candidate. HH holds a bachelor in econom- President Lungu highlights infrastructure ics and an MBA in Finance and Business Strategy from the UK. His political career took off developments in Zambia in 2006, following the death of UPND’s first President Anderson Mazoka, and this will be Page 5 his fifth go at the presidency. HH, 53, is married with three children. Forum for Democracy and Development (FDD) – Edith Nawakwi is an old hand in politics, 4. What has PF accomplished? having held ministerial portfolios under the late President Chiluba, including the youngest President Lungu lists government’s efforts and the first female finance minister in Southern Africa in 1997. However, she was de- to develop growth sectors such as mining, agriculture and tourism moted following allegations of corruption. In 2001, she helped to form the FDD, and was Page 6 appointed its president in 2005. This is Nawakwi’s third run for the presidency, having also tried in 2011 and 2015. Born in Northern Province, Nawakwi, 58, has a degree in agricultur- al economics and business management as well as a post-graduate diploma in economics 5. Lungu in Saudi Arabia of energy and development from the UK. She is customary married with one daughter. President Lungu has been in Saudi Arabia on a two-day state visit Green Party – Peter Sinkamba, formerly known for fighting for the rights of mining com- Page 3 munities on the Copperbelt, has always been politically active. He claims to be a founding member of the former ruling MMD party in 1990, but quit to form a string of unknown parties, so far ending with the Green Party in 2013. He has a master’s degree in sustainable 6. Mining shaft to be de-watered? development planning and management from South Africa. Sinkamba, 52, was born in CNMC Luanshya Copper Mines Plc has Namwala, Southern Province, and is married with four children. started a feasibility study of de-watering the flooded Shaft 28 United National Independence Party (UNIP) – Tilyenji Kaunda: UNIP is Zambia’s first rul- Page 9 ing party, which governed from 1964 to 1991 under the leadership of first President Ken- neth Kaunda. UNIP is fielding his son, Tilyenji Kaunda, 62, with a background in political 7. Police stop MMD convention science, as its presidential candidate. Tilyenji has been president of UNIP since 2001. This One faction of the MMD party has been will be Tilyenji’s third go at the presidency, having also tried in 2001 and 2011. stopped from holding a convention to topple another faction Page 9

8. Foreigners registered as voters? The Post has accused authorities of illegally registering thousands of foreigners as voters for the general elections Page 2 Builders Hub is Zambia's rst permanent building materials exhibition that allows manufacturers and suppliers to the building and construction 9. ZAF officers found with rhino horns Authorities have arrested two Zambia Air industry the opportunity to showcase their products and services by way Force (ZAF) officers for being in possession of physical samples and informative displays. Whether you're a new of rhino horns Page 2 home owner looking to build or renovate, or a supplier to the industry - we look forward to seeing you. For more information on how 10. Shops closing at Manda Hill to become an exhibitor. An alleged increase in rentals as business is slowing down is allegedly forcing shops to contact us close at the shopping mall in Lusaka (+260) 96 4073 713 | [email protected] Page 8

I 2 │ Elections

Editor’s note Thousands of foreigners registered as voters? Authorities have allegedly registered thousands of foreigners as voters for the general I would like to warn against taking religion elections in August, reportedly promising them employment and money in exchange for too seriously in these elections. I know we voting for President Lungu. The Post reported that government – through the ECZ and are, constitutionally, declared a Christian the Department of National Registration – had facilitated the issuance of voter’s cards to nation – whatever this really means – but “thousands of Malawians” and “thousands of Mozambicans, Congolese and some An- religion seems to be playing a growing golans”, some of them younger than the legal voting age of 18 years. The Post included and very unhealthy role in politics. Presi- photos of registration cards and voter’s cards from different countries for some of the for- dential candidates presumably believe eigners, including Alina Banda from Malawi, who apparently has a Malawian national reg- that they will attract voters by claiming istration card (NRC) and a Malawian voter’s card, along with a Zambian NRC 129055/55/1 (correctly or not) to be deeply religious. and a Zambian voter’s card issued on 5 November 2015, and is registered by the ECZ to And they have shown a great deal of in- vote in both Vubwi and Chadiza Constituencies. genuity in trying to prove it, ranging from The main opposition UPND party lodged a complaint over the matter at Woodlands Police regular church visits to waving crosses and Station in Lusaka. “We have information that is impeccable that in certain border towns rosaries around to using biblical quotes in about five provinces, they [government] were issuing these national documents to on campaign posters. However, voters foreigners with the view to put an inbuilt vantage in terms of numbers,” UPND Chairman had better remember that actions speak for Energy Garry Nkombo told the Post. louder than words. Our second president, Frederick Chiluba, put the Christian nation The ECZ responded by querying the authenticity of the voter’s cards displayed by the Post. declaration in our Constitution, but re- ECZ spokesman Chris Akufuna: “Those with evidence that foreigners and non-eligible per- mains the most corrupt president in Zam- sons have been included in the voter register should take advantage of the on-going voter bia’s history. Our fifth president, Michael verification exercise, and the commission will deal with them,” he told the Post. Sata, declared that he would rule Zambia according to the Ten Commandments, ! How to check your voter’s card but ran the economy into the ground. Our sixth president, Edgar Lungu, created All voters must check that their voter’s card lists correct names, initials, gender, NRC number and picture, and a new public holiday – National Prayer that the information corresponds with that in the provisional register of voters. The information can be checked online (http://www.elections.org.zm) or by dialling *214# on all three mobile phone networks. However, any Day – but is yet to prove himself one way corrections will require a visit to a voter registration centre. The verification period runs from 15 to 21 May 2016. or another. Religion does not necessarily make for a better leader! Is UPND being persecuted? ZAF officers with rhino horns ZNBC blocks UPND: The public broadcaster, ZNBC, allegedly rejected two paid campaign Authorities have arrested four people at adverts from the main opposition UPND party, just as it refused to air UPND President Embassy Park Mall in Chawama, Lusaka, Hakainde Hichilema’s New Year advert in 2015, according to UPND Spokesman Charles for illegal possession of a pair of rhino Kakoma. ZNBC denied the allegation, stating that it had in fact accepted four of UPND’s six horns weighing 3.9 kilogrammes. The four adverts, and that the two rejected adverts just needed “minimal editing”. ZNBC Corporate are Nefuma Taleni Stefanus of Namibia, Masheke Mutemwa Chripine – a Zambia Air Affairs Manager Masuzyo Ndhlovu explained that ZNBC has put in place a committee to Force (ZAF) flight sergeant, Mwiya Masheke evaluate adverts to avoid litigations, and that the committee had also rejected adverts – a ZAF captain, and Martin Maimba – a from the ruling PF party. A “productive” meeting reportedly solved the problem. Zambian businessman. ZAF blocks UPND: The UPND has accused the Zambia Air Force (ZAF) of refusing to clear its helicopters for campaigning, despite the opposition party having applied “well in ad- vance” and being “in full compliance” with all requirements, according to UPND Secretary Poachers flee Zambia General Stephen Katuka. However, ZAF Commander Eric Chimese explained that the Authorities in Zimbabwe have so far in UPND had made a “block” application for the entire campaign period, and it would have to 2016 recovered at least 66 elephant tusks apply in phases, as ZAF would have to factor in the incumbent president and other cam- from Zambian poachers in 14 anti-poach- paigning politicians. “We are very meticulous and careful and security conscious; we have ing operations in Zimbabwe’s national parks in the Zambezi Valley. Several poach- to make sure that everything is okay. These are helicopters… you throw just a stick on the ers have also been killed in exchanges of rotor blade, whether it’s on the ground, so long the engine is running, that helicopter is gunfire, reported the Livingstone Bi-Week- gone, believe me. So we are doing this in the best interest of the nation,” he said. ly. In Botswana, six elephants have been killed in recent incidents linked to Zambian poachers, and two Zambian nationals ECZ awards printing of ballots to Al Ghurair have been killed by the authorities, using a ‘shoot-to-kill’ policy. Zambia’s Deputy Tour- The Electoral Commission of Zambia (ECZ) has decided to go ahead and award the tender ism Minister Patrick Ngoma has suggested for printing of ballot papers to Al Ghurair Printing and Publishing of Dubai, angering the that newly enforced, stringent laws and opposition, which believes Al Ghurair will assist government in rigging the elections. The op- counter-poaching strategies such as the in- position (UPND, FDD, MMD, UNIP and Rainbow Party) demanded that the elections should troduction of drones in Zambia have forced be postponed, reported the Daily Nation. poachers into Zimbabwe, Angola, Botswa- na and Namibia “to feed the Chinese [ivory] market in Zambia”. ECZ accepts higher education The Electoral Commission of Zambia (ECZ) has accepted the court’s interpretation of the new Grade 12 requirement for political candidates in this year’s elections. ECZ will now ac- cept “qualifications obtained from tertiary institutions such as trade certificate, diploma or university degree”. Previously, it accepted nothing but a Grade 12 certificate. 3 │ Travelling

Lungu in Saudi Arabia Quotes President Lungu has been in Saudi Arabia for a two- day state visit. Last week, he was in Uganda, and the week before that in Malawi. This was Lungu’s 25th abroad since assuming office less than 16 months ago in January 2015. Lungu has now visited 15 countries, including Namibia (thrice), Botswana, Malawi (twice), Uganda (twice), Mozambique I understand our society has become so (twice), Angola (twice), Zimbabwe (twice), Ethiopia politically conscious and sensitive, such (twice), Tanzania, South Africa (four times), China, that anything has to be explained from a political perspective. The lines have been USA, Italy/France (combined trip) and Saudi Arabia. “blurred between what is politics and what Lungu is the most seasoned traveller of Zambia’s six is state and all that, but we will do our job presidents. professionally. Zambia Air Force (ZAF) Commander Eric Chimese comment- ing on the opposition UPND party accusing ZAF of grounding Cheaper fuel from Saudi Arabia its helicopters for political reasons (see page 2) – (Post 16). Saudi Arabia, through the Saudi Fund for National Development, has offered to set up a $20 million revolving fund for Zambia to buy oil directly from Saudi Arabia. This will mean When we met, I told you that I was a cheaper oil, as current middlemen will be cut out. In February 2016, following the supply married man. I gave you the full details of of a second shipment of contaminated crude oil, government cancelled the contract with my wife and where she was at the time. its original supplier, Gunvor Oil Group, giving it to the Independent Petroleum Group of Today, we have invested a total of 20 Kuwait. years and 6 months in this marriage. For 4 ½ years you [and] I maintained a platonic friendship. I have decided to invest the remaining days of my life in this marriage. Mukupa and her sister are growing [and] I FREE cannot successfully contribute to them in Email a hide-and-seek without my wife and the This week Alerts children knowing how (…) and where those resources are being spent. you missed The late President Sata laying bare his infidelity in a letter to Petronella Mpundu, whom he had two daughters with, Mukupa and Salome Sata (Daily Nation 13). Mpundu sued out on Sata’s official widow, former First Lady Christine Kaseba, and his official son, Mulenga Sata (whose mother is Margaret 39 business Manda) in February 2016, claiming that she was married to under customary law. Kaseba submitted the opportunities quoted letter in court to prove that this is not the case.

Since the rains have stopped, there will be in Zambia! a decline [in water level in Lake Kariba]. It was still raining in the first and second week of April (…). It takes about three months for water to travel from Kafue in Ndola to [Lake] Itezhi-Tezhi, so we will be experiencing a decline [from July 2016]. TENDERSZambia If it is based on the same hydro [power generation capacity], then obviously there Over 730 open tenders, consultancies, supplier registrations may be a decline [in water level], or an increase in load shedding, maybe with an and other new business opportunities in our database! hour or two. Ministry of Energy and Water Development Permanent Secretary Edward Chomba predicting that load shedding will Subscribe at http://www.tenderszambia.com increase by 1-2 hours a day after June 2016 (Daily Nation 14). Contact [email protected], +260 953 770 658 Tenders Zambia - a product by Zambia Weekly There can only be one winner. After you win, you perform. So you allow your friend who has won to perform. When another election comes, you will have a go at it. If your party has got a president and he Advertise in Zambia Weekly keeps losing, substitute him for somebody who can win. If you have a football club, Reach 10,000+ readers you can’t use only one striker, who doesn’t score. The best advertising vehicle for reaching busy businesspeople, directors, expatriates and diplomats in and out of Zambia President Lungu to the opposition in Uganda when visiting that country last week (Post 15), in the process drawing many online replies from angry Ugandan. Contact Kabili Branding +260 979 272 948, [email protected]

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5 │ Focus

OVERVIEW: What has PF accomplished in 5 years? President Lungu held his second press conference on 13 May (first tious development programme “in order to address the binding one on 26 November 2015). He used the opportunity to kick off his constraints to sustenance of high growth rates”. However, govern- election campaign by highlighting the successes of the Patriotic ment is confident that the investment “will result in sustainability Front (PF) government’s five years in office (3 years under Michael and resilience in economic growth going forward”. This will be Sata and 1½ years under Edgar Lungu). Thus, the speech gives an firmly anchored on continued re-alignment of expenditures to excellent overview of what the PF believes to have accomplished, priority areas. and Zambia Weekly has therefore High exchange rate: The Kwacha extracted the highlights from the has “been relatively stable” over 20-page speech: the last five years, but sharply de- PF’s key promises in 2011 “The achievements I have highlighted clearly preciated in the last four months included a people-driven Constitu- demonstrate that the five years of the PF in of 2015 “on account of deteriora- tion, lowering taxes, creating more government have been but a resound success in tion in externally induced factors jobs, and putting more money in many respects (…) and created a momentum I such as falling commodity prices people’s pockets, and according to promise to accelerate so that our next five years and strengthened US dollar”. How- Lungu, a new promise never heard delivers even more. The face of the country has ever, following the measures that before: “forming a government been literally transformed into a construction site were undertaken by the central that would promote a human face (…). Our people’s access to social services, such as bank, supported by the treasury, in pursuit of its economic poli- health, education, safe and clean water has been the Kwacha has now stabilised. cies, while at the same time, not enhanced, and the quality of life is improving. We have delivered a people-driven Constitution (…). High inflation: “I expect a single- pretending to have an answer to digit rate in a matter of months”. every problem”. We have run the most inclusive government since the dawn of multiparty democracy in this country. High interest rates: “Domestic Constitution: The PF government In the face of challenges in mining, energy and economic growth prospects are delivered a people-driven Consti- agricultural sectors, we have remained focused, expected to improve toward the tution after many costly attempts providing impeccable leadership (…). All indica- end of the year and beyond as by previous administrations. tions are that the country is headed for a complete electricity supply challenges begin Lungu also assured people that turnaround. You can rest assured that you did not to ease with increased domestic government would subject the misplace your confidence and trust in me and the supply and fiscal consolidation Bill of Rights to a referendum to PF. measures take effect, allowing for be held alongside the elections in credit conditions to improve”. August. ” Foreign reserves increased, from More money in people’s pockets: $2.2 billion in 2011 to $2.98 billion at the end of 2015, equivalent Government increased the tax-free income threshold threefold to to 3.7 months of import cover. Lungu rejected rumours that gov- K3,000, increased the minimum wage, awarded unprecedented ernment had used reserves to intervene in the market. salary increases to civil servants, and established a micro-finance company to provide loans to civil servants. Foreign direct investment (FDI) increased from $1.1 billion in 2011 to $1.6 billion in 2015, driven by the mining sector. Economy: The economy performed favourably from 2011 to 2014, although economic growth has since slowed, and is pro- Diversification: Despite the fall in copper prices, the economy is jected to end at 3.7% in 2016 “on account of external factors and expected to post a growth rate of 3.7% in 2016, “showing how constraints related to weather” (no mention of internal factors much the economy has been diversified”. “I am proud to state here such as government expenditure ballooning). The growth is driven that this is the first time in the history of this country that we have by agriculture, construction, accommodation and food services walked the talk of diversification”. Government’s diversification sectors, Lungu explained. And in the medium term, the economy agenda is focused on development of agriculture, manufacturing is expected to register growth averaging 6% and above, due to a and tourism, although Lungu also mentioned energy in another rebound in mining and robust growth in tourism and agriculture. section of his speech. High fiscal deficit is caused by government undertaking an ambi- Continued „ 6 │ Focus

OVERVIEW: What has PF accomplished in 5 years? Continued from previous page „

Energy: The PF government has introduced road tolling, and completed the upgrade of the airport added almost 500 MW (360 MW in Livingstone, is building a new airport in Lusaka, and will start on expansion of Kariba North Bank and the one in Ndola “soon”. construction of 120 MW Itezhi-Tezhi Education: Government promised one Hydropower Station – both projects university in each province, and this plan initiated by the former MMD gov- “has steadily progressed”, with universities ernment) to the national grid. Cur- being built in Lusaka, Central, Copperbelt rently, Itezhi-Tezhi is producing 60 and Muchinga Provinces. Government is also MW, but the other 60 MW, along with 300 MW from the Maamba constructing or rehabilitating trades training Coal-Fired Power Plant, “are expected to come on stream during institutions in 14 locations, is upgrading 220 the course of the year”. In addition, government has launched the basic schools into secondary schools and construction of 100 MW of a 600 MW solar power project. “I can constructing 115 new secondary schools (60 announce here, that by mid-June, the power deficit would reduce are operational), and has established 1,526 from 1000 MW to below 400 MW”. early childhood education centres. Government has more than doubled the number of people with Health: The PF government has upgraded the hospital in Living- access to electricity in rural areas from fewer than 150,000 in 2011 stone to a teaching hospital to join Lusaka, Ndola and Kitwe, which to over 400,000 in 2016. are now all fully equipped with modern diagnostic equipment. Government has “made significant progress” in establishing pro- The University Teaching Hospital in Lusaka in particular is being vincial fuel depots in addition to the main one at Indeni Petroleum modernised. Government has also completed the second phase of Refinery. The aim is to streamline fuel supply in Zambia. So far, the Cancer Diseases Hospital, constructed 39 new district hospitals government has constructed a depot in Lusaka (which is constitut- (5 are operational) and 266 out of 650 health posts (170 are opera- ing a serious risk to surrounding businesses due to trucks parking tional), and has rehabilitated 27 health training institutions, and is for days on adjoining roads), as well as in Western, Northwestern building a new one in Lusaka. and Muchinga Provinces. New districts: The PF government moved the provincial head- Roads: The PF government facilitated the construction of over quarters in Southern Province from Livingstone to Choma, created 3,947 kilometres of road (but judging from Lungu’s list of named a 10th Muchinga Province and a total of 33 new districts. Infra- completed roads, many of the 3,947 km are yet to be completed), structure is in the process of being constructed in all of the new which created 16,534 direct jobs over the last four years. It also re- districts and new provincial headquarters. habilitated a total of 1,541 kilometres, constructed several bridges, Continued „ 7 │ Focus

OVERVIEW: What has PF accomplished in 5 years? Continued from previous page „

Public sector: The PF government increased and harmonised that this engagement has yielded results with some of the major salaries and conditions of service across the public service, local mining companies announcing investments that will lower the authorities and defence and security agencies. It is working on cost of production and open new mining operations” (again, many enacting a bill to ensure that employment in the public sector is of these projects took off under the former MMD government). based on merit, and has introduced a performance-based contract Government – “being a listening and understanding government” system at the higher levels in the sector. – also reviewed the mining tax regime (Lungu forgot to mention that the PF government had previously changed the tax regime so Parastatals: The PF government established the Industrial such a degree that some mining companies were in the process of Development Corporation (IDC), a special purpose vehicle for closing down). overseeing 29 parastatals along with government investment. Modelled on the failed INDECO of the same name, but with a dif- Agriculture: the PF government has ferent acronym, commentators are still waiting to see whether or placed 12,952 hectares of a targeted 17,500 not IDC will perform. hectares under irrigation, has established 15 Governance livestock breeding centres and 152 livestock service centres, and has constructed three (and corruption): Enacted regional laboratories for disease control. the amended Constitution (and Government has also “streamlined” the established the required two Farmers Input Support Programme (FISP) new courts – Constitutional and and introduced the e-voucher system, ex- Appeals), transformed the Office tending support to crops other than maize of the Director of Public Prosecu- and to livestock. “We have (…) revolution- tions into the National Prosecu- ised agriculture input distribution and tion Authority, is constructing 150 parliamentary constituency marketing arrangements”. Due to the surplus of maize produced offices across the country, and has continued to “constructively en- in 2015/16, prices of mealie meal “are expected to moderate in the gage” all stakeholders on matters of national interest (something later part of the year”. that Sata’s government in particular was criticised for not doing), reinstated “abuse of authority of office clause”, and established a Tourism and arts: Direct employment in the tourism sector special investigation unit in the Anti-Corruption Commission to grew from 31,900 in 2011 to 57,337 in 2013 (latest figure available), deal with complex financial and white collar crimes. and government has constructed the first-ever national arts gal- lery in Livingstone, “a true reflection of the appreciation that the Social protection: Government is implementing the National arts have assumed under my administration”. Social Protection Policy, has increased the budgetary allocation to the Social Cash Transfer Programme from K42.7 million in 2011 Media: The PF government operationalised the Independent to K302 million in 2016, is scaling up the Women Empowerment Broadcasting Authority (IBA) in 2013, which has accelerated the Programme and the agriculture inputs for the Food Security Pack issuance of broadcasting licenses to establish 36 radio and 20 TV Programme, and has revised the retirement age to provide for a stations. Lungu did not mention the promised enactment of the choice of early, normal and late retire- Access to Information Bill. ment. Poverty has reduced from 60.5% Barotseland Agreement: The very final item in Lungu’s in 2010 to 54.4% in 2015. speech was the controversial Barotseland Agreement, which he Mining: The PF government diver- directed should “be published in the national press next week sified the mining sector away from to inform rational debate on the matter as we seek an amicable copper and away from the Copperbelt settlement to the matter” (which the press promptly did). However, (most of the projects started under the PF’s first president, Michael Sata, already published the agreement former MMD government). Government right after assuming office in 2011, as he campaigned in Western also asked mining companies to invest Province on the restoration of the Barotseland Agreement, but in cost-reduction measures to counter later u-turned on his promise. As a result, Western Province is cur- shocks in the international copper price, rently voting for the main opposition UPND party. and “I am happy to inform the nation Full speech at https://www.daily-mail.co.zm/?p=66409 8 │ News

96 solar milling plants are operational The Zambia Cooperative Federation has installed 116 of 250 solar- powered milling plants (hammer mills) across Zambia. 96 of them Finding Spaciousness are operational. The federation has plans to become a “big player” in the maize market from mid-2017, setting its own price differ- in a Busy Life ent to that of the Food Reserve Agency, its director general James Chirwa told the Times of Zambia. When the first solar-powered A one-day silent mediation day plant was launched in September 2015, government said it aimed for a total of 2,000 plants. President Lungu also promised that mealie meal from the plants would cost K40, but it is reportedly 11 June 2016 now being sold at K66 per 25 kg bag. The plants come from China. The first one cost $50,000 to install. Mount Eugenia - Mungwi Rd - Lusaka West

Cholera under control The cholera epidemic in Zambia has been brought under control, Lusaka Province Medical Officer Kennedy Malama told the Daily Nation, as no new cases have been recorded for a week. A total of 1,190 people were infected in Zambia, since the disease broke out in Lusaka in February 2016, divided between Lusaka (939 cases), Monze (70), Nsama (66), Mazabuka (57), Chibombo (24), Rufunsa (8) and Kabwe (2) – (this does not add up to the total of 1,190 cases). A total of 26 people died.

Domestic borrowing to increase The Bank of Zambia has increased auction amounts for govern- ment securities, including treasury bills from K450 million to K700 million and government bonds from K600 million to K800 million, with effect from 12 May 2016.

Programme Shops closing at Manda Hill 08:00 Arrival Many shops are alleg- 08:30 Introduction edly in the process (Vipassana, silence and mindfulness) of closing at Manda 09:00 Qigong practice Hill Shopping Mall in Lusaka, reportedly 10:00 Meditation (mindfulness of breath) due to an increase in 10:30 Tea break rentals as business is 11:00 Meditation – sitting / walking / sitting slowing down in line (mindfulness of body and feelings) with the economy. All 12:00 Reflection Sports closed recently, 12:30 Lunch – vegetarian Wimpy and Noodles 13:30 Meditation – sitting / walking / sitting both closed this week, and others are believed to follow, reported (mindfulness of mind, thoughts and images) Lusaka Times. Manda Hill Centre Manager Joe Kaseka refused to 14:30 Tea break comment. In November 2015, the National Business and Tenants 15:00 Walk in the bush Association of Zambia told the Post that Manda Hill had obtained 15:30 Meditation (spacious sky mind) a court order to send in the bailiffs to about 20 shops, including Freshview Cinema. Manda Hill was Zambia’s first shopping mall, 16:00 Group reflection – we break our silence but other malls are reportedly also in trouble, including Levy Junc- 17:00 Departure tion in Lusaka. Facilitation, Chinese poetry and Qigong: Camilla Hebo Buus Man shoots two by accident Guided Vipassana meditations: Gershom Chishimba, a lecturer at the University of Zambia, al- Joseph Goldstein (recorded) legedly killed two people after falling into a ditch, which caused Cost: K300 / person, inclusive of food and drinks his gun to go off accidentally. Chishimba was hunting for birds in Mumbwa District in 2013 together with three other people. He is Please bring your own mats/blankets/cushions currently in court facing two counts of manslaughter, reported the Post. For more information, contact Camilla [email protected] or 0977 461 877

I 9 │ Mining

Shaft at Luanshya Copper Mines to be de-watered? Politics in brief CNMC Luanshya Copper Mines (LCM) Plc has started a feasibility study to determine whether or not to de-water the flooded Shaft 28. LCM is currently only producing copper Police stop MMD convention from Muliashi Mine, since Baluba Mine was put under care and maintenance in Septem- ber 2015. “The mine is remaining with a lifespan of three to four years, so the de-watering The police have allegedly blocked one of Shaft 28 will help to increase the copper output,” Mines Permanent Secretary Paul faction of the opposition MMD party Chanda told the Times of Zambia. Last year, the Mine Workers Union of Zambia told from holding a party convention to ZNBC that LCM had shown interest in re-opening Shaft 28, if government would accept replace the other faction, reported the its request for unspecified economic incentives. Post. The Felix Mutati-supporting faction had scheduled a convention on 20-22 ! The flooding… and a lot about government botching a sale of a mine May with the aim of electing new party leaders controlled by the Nevers Mumba- The Luanshya/Baluba mining complex was the first major asset to be sold when Zambia’s mines were privatised. supporting faction. However, the matter The established bidding process had identified the reputable First Quantum Minerals as the preferred winner, is in court, and the police explained that but President Chiluba’s administration intervened at the last moment. The complex was instead awarded for $35 “we may be cited for contempt of court if million to Roan Antelope Mining Corporation of Zambia (RAMCOZ) Plc, 85%-owned by the Binani Group of India we allow this convention to take place”. In (15% - ZCCM Investment Holdings). addition, the Mumba-faction obtained an After taking over in 1998, RAMCOZ quickly ran into problems. The mine was allegedly asset-stripped, and injunction to restrain the Mutati-faction RAMCOZ reneged on its pledges, which had massive socio-economic implications in a town relying on the mines. from holding the convention, however, However, government refused to take responsibility for the failed privatisation, apparently because it received the Mutati-faction immediately asked the regular payments from the new owner. In addition, it is believed that the purchase sum of $35 million ended up in the pockets of Chiluba and his cronies. court to quash the injunction. Meanwhile, delegates from the Mutati-faction con- Unable to pay employees, contractors, suppliers or banks, RAMCOZ was placed under receivership in October tinued to arrive at Mulungushi University 2000. Under the receiver – Grant Thornton led by CEO, now UPND president, Hakainde Hichilema – operations initially continued, but in March 2001, a combination of heavy rains and lack of power supply led to flooding of in readiness for the convention, reported two shafts, and the suspension of normal mining operations. the Daily Mail, bringing back memories of the ruling PF party’s equally embarrass- In 2003, RAMCOZ was sold in yet another botched deal. A committee consisting of permanent secretaries had recommended that RAMCOZ should be sold to Anglovaal Mining (AVMIN) of South Africa, but President ing power struggle in the run-up to the Mwanawasa scuttled the deal two days before signing, and directed that the mines should be sold to another presidential by-election in 2015. anonymous shell company with little mining experience, J&W Holding AG, a Swiss subsidiary of Enya BV, a Dutch investment holding company incorporated one year earlier. J&W acquired Binani’s 85% at $7.3 million, renam- Mulenga Sata demands ing RAMCOZ as Luanshya Copper Mines Plc. J&W and Binani had the same financial backer, and unconfirmed K10m from Mumbi Phiri rumours have suggested that Mwanawasa was bribed. Mulenga Sata has given PF Deputy The new owners proved as unreliable as the previous ones. In 2008, in the face of falling copper prices, Enya Secretary General Mumbi Phiri seven placed Luanshya Copper Mines Plc under care and maintenance, owing millions of dollars to contractors, suppli- days to apologise and to pay K10 million ers and government in tax, allegedly leading to the flooding of a third shaft. in damages for accusing him of planning In 2009, President Banda’s administration sold Enya’s stake to China Nonferrous Metal Mining (CNMC) Group to kill his father, the late President Sata, for $50 million. CNMC Luanshya Copper Mines Plc has since developed the green-field Muliashi Mine, but put or he will go to court. Last week, the Post Baluba Mine under care and maintenance in 2015, in the face of falling copper prices and load-shedding. quoted from an alleged recording of Today, the complex consists of Luanshya Mine - several shafts (flooded), Baluba Centre (underground), Baluba Phiri in a salon in Lusaka: “(…) Mulenga East (open pit), and the newest addition, Muliashi (3 open pits). planned with his stepmother to kill his father, they are in sh*t”. In addition, Phiri accused Mulenga of being corrupt and stupid. Government distanced itself from the comments, and apologised to the KCM to re-open Nchanga? Sata family, but Phiri has remained silent. The Konkola Copper Mines (KCM) is “constantly assessing” whether or not to re-open its underground mine at Nchanga in Chingola, KCM Vice-President David Patterson told the Times of Zambia. The mine was placed under care and maintenance in November 2015 “in Z i W order to stop unsustainable losses”. At the time of closure, copper was trading at $5,150 amb a eekly... for busy people per tonne, and the underground mine is only profitable at a copper price of $6,300 per tonne, but KCM stated that it would evaluate the mining methods required to mine the Editor-in-chief Camilla Hebo Buus [email protected] remaining ore economically. Copper is currently trading around $4,600 per tonne. Mobile +260 977 461 877

CHAT Higher salaries at Kansanshi Mine First Quantum Minerals has granted its miners at Kansanshi Mine in Solwezi salary incre- ments of 7% in 2017 and 6% in 2018 and 2019, after reaching a three-year agreement with https://web.facebook.com/ZambiaWeekly/ the union. ADVERTISING Kabili Branding [email protected] Zambia sugar to double output Mobile +260 969 635 815 Zambia Sugar is expected to commission its new K510 million sugar refinery later this month. The refinery will double the refined sugar production capacity to about 90,000 tonnes per year.

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