K10 BusinessThe Post (6 X 2)/1May /1/4/JS - 31 Dec The Right To Do Business

Vol:1 Issue #020 E-mail:[email protected] www.businessweekly.co.zm 23 - 29 SEPTEMBER 2019 ‘Leave mukula to private sector’ RETHINK THAT Page 4 SALES TAX …Chamber of Mines warns that sales tax could sink Zambia’s mines Ghana company sets sight on Zambia gemstones he Precious sible for valuation of gold Mineral Mar- mined in Ghana, including keting Com- that mined by small scale pany (PMMC) miners. Tof Ghana is eyeballing Ghanaian delegates Zambia’s gemstones with headed by Suleman Al- the intention of signing a hassan are in the coun- long term memorandum try for a feasibility study of understanding to allow and tour of the gemstone Zambia to supply it with industry with the view to polished gemstones. possibly source value add- The Ghanaian parastatal ed coloured gemstones for company is one of Afri- the jewellery factory in ca’s largest mineral mar- Accra Ghana. keting companies respon- Page 2

Zambia Chamber of Mines president Goodwell Mateyo shares findings of the report he Zambia Chamber of Mines creased government revenue. “Implementing a sales tax leaves our says the introduction of sales He was sharing the findings of the mining industry at a point where it is tax to replace the current Val- Zambia Chamber of Mines recently uncompetitive. It costs significantly ue Added Tax (VAT) will not published report, ‘A Tax Too Far: The more to mine a tonne of ore or metal Tresult in increased government revenue Economic Impact of Zambia’s Pro- under a sales tax regime than it does but will render the mining sector in- posed Sales Tax.’ under a VAT regime,” he said. competent. He said under the 2018 mineral roy- The findings have also indicated that Speaking at an information sharing alty and corporate income tax regime cascading effects of sales tax will re- meeting on the findings of the report on government collected US$525 million sult in huge price increments and that Sales Tax, Zambia Chamber of Mines compared to the projected US$445 examples where drawn from actual po- president Goodwell Mateyo said in- million it would collect in 2019 under tential transactions in a mining setup or Insurance creasing taxes would not result in in- the current tax regime. in a mining value chain. Page 2 scales half- Nkhuwa outlines measures to decade high on Gross Written

plug 750mw on-grid deficit Page 3 Page 3 Premium

The right to do business Business & Finance23 - 29SEPTEMBER 2019 The Business Post Mines chamber calls for sales tax rethink By Prudence Chota

he Zambia Cham- at a point where it is un- ty to administer, would not of proposals for a sales tax A few weeks ago, this economy due to several ber of Mines says competitive. It costs signifi- materialize. to replace the current val- newspaper had carried a factors among them medi- the introduction of cantly more to mine a tonne However, the chamber ue-added tax (VAT) system story quoting prominent um to long term reduction sales tax to replace of ore or metal under a sales has advised that if the VAT as this will increase the cost economist Professor Ol- in tax payment by affected Tthe current Value Added tax regime than it does un- system is retained, it will of doing business in the iver Saasa arguing Sales sectors. Tax (VAT) will not result der a VAT regime,” he said. require addressing of the mining industry. Tax would shrink Zambia’s in increased government The findings have also debilitating problem of revenue but will render the indicated that cascading ef- the non-payment of VAT mining sector incompetent. fects of sales tax will result refunds that has wreaked Speaking at an informa- in huge price increments havoc in recent years with tion sharing meeting on the and that examples where the cash flow of Zambian findings of the report on drawn from actual poten- businesses, great and small. Sales Tax, Zambia Cham- tial transactions in a mining The chamber has also ber of Mines president setup or in a mining value called on government to Goodwell Mateyo said in- chain. bring the country’s mining creasing taxes would not “What this will do is that tax regime into line with result in increased govern- long supplying chains will international best practice, ment revenue. be worse off, and to - mit where mineral royalty tax is He was sharing the find- igate against this impact deductible before comput- ings of the Zambia Cham- industries such as mining ing corporate income tax. ber of Mines recently pub- and manufacturing will “We have asked that the lished report, ‘A Tax Too obviously reduce the value government consider re- Far: The Economic Impact chains by cutting out local verting to the 2018 mining of Zambia’s Proposed Sales suppliers, local distributors fiscal regime. In the event Tax.’ and importing directly. The that they are not inclined to He said under the 2018 effect of this will be are- go back to that regime, we mineral royalty and corpo- duction of jobs,” he said. have asked for some chang- rate income tax regime gov- The chamber also said the es in the current regime, for ernment collected US$525 aim of increasing overall instance, the mineral roy- million compared to the tax receipts by introducing alty rates be capped at 7.5 projected US$445 million it the proposed sales tax, as percent,” Mateyo said. would collect in 2019 under well as doing away with a Meanwhile, First Quan- the current tax regime. system of VAT refunds that tum Minerals has backed “Implementing a sales tax has proved difficult for the calls by the Chamber of leaves our mining industry Zambia Revenue Authori- Mines for the withdrawal Zambia Chamber of Mines president Goodwell Mateyo Ghana company sets sight on Crisis time heightens as power deficits tops Zambia gemstones 700MW By Prudence Chota By Staff Writer he Precious Miner- “Africa is as beautiful Gender Elizabeth Phiri said though an emerging force ydrological risks cost of importing power al Marketing Com- as the precious minerals government is excited that in today’s economy contin- for Zambia are from ESKOM. pany (PMMC) of and should not always wait Ghana is considering Zam- ue facing challenges such accelerating rap- Load management has Ghana is eyeball- on outsiders to come and bia a country of choice for as inadequate access to fi- idly as the Kariba widened to a minimum Ting Zambia’s gemstones show us how it is. Through sourcing gemstones. nancing and technological HDam water levels continue 8 hours with parts of the with the intention of sign- partnerships like this, we She said this will bring a equipment, access to mar- to recede pushing the power country experiencing up to ing a long term memoran- can enhance our trade and new dimension in the oper- ket and cultural norms and deficit to over 700 MW, ac- 12 hours of power shedding dum of understanding to achieve a great deal on our ation of the women small harassment that stunt the cording to a memo to staff to preserve power. allow Zambia to supply it own,” Alhassan said. scale miners and traders. growth of women entrepre- from power utility ZESCO With inflation at 9.3% for with polished gemstones. The mini expo organ- “I am confident that cre- neurs. managing director Victor August, analysts reckon this The Ghanaian parastatal ized by Oxfam Zambia and ating ties with PMMC will She said these challenges Mundende’s office. development will nudge it company is one of Africa’s AZWIM saw women in leverage trade opportunities should not limit women’s From the 273MW report- upward to 12%-14% for largest mineral marketing mining showcase different not only between Ghana ability to contribute to eco- ed in June, the deficit has September. companies responsible for beautiful gemstones among and Zambia but also on the nomic development but that tripled, with only three gen- The mines are using 56% valuation of gold mined them the purple Amethyst, entire continental market women should be supported erators providing 325MW of the grid, so analysts say in Ghana, including that Aquamarine, Tourmaline, because of the combined and encouraged to be better to the ZESCO grid which mining, the mainstay of the mined by small scale min- Red Garnet, Citrine and and varied availability of entrepreneurs through part- the company plans to sup- economy, remains at risk ers. others to the potential buy- precious minerals,” she said nerships like this one. plement with 300MW in with the Zambia Cham- Ghanaian delegates head- ers. The minster however imports from South Africa’s ber of Mine forecasting a ed by Suleman Alhassan AZWIM vice Secretary said women entrepreneurs ESKOM. The cost of that 100,000 metric tons drop in are in the country for a fea- General Grace Njapau told import is being anticipated production for 2019. sibility study and tour of this reporter in an interview to be passed on to consum- the gemstone industry with that women in mining are ers. the view to possibly source thriving to make a good Water levels at Kariba value added coloured gem- income from the sector but Dam in the week ending stones for the jewellery fac- lack of equipment hinders September 16 receded an- tory in Accra Ghana. them from producing qual- other 7 cm to 478.18m, Alhassan told delegates ity gemstone for export compared with 485.80m at at a mini expo held by the readiness. the same period last year. Association of Women in Ms. Njapau said the sec- This represents 19% usa- Mining (AZWIM) in Lusa- tor is very profitable and ble storage, compared with ka last week that he looks has since appealed to gov- 79% usable storage at the forward to the signing the ernment to consider helping same time last year. MoU to kickstart trading the women source the right Earlier last week Energy and co-operation between equipment for cutting and Minister Matthews Nkhu- the two countries and the polishing the gemstones. wa hinted a 75% tariff hike ZESCO managing rest of Africa. Meanwhile, Minister of to enable ZESCO meet the director Victor Mundende

The right to do business PAGE 2 Business & Finance23 - 29SEPTEMBER 2019 The Business Post Nkhuwa outlines measures to plug 750MW on-grid deficit

By Prudence Chota

inister of En- with international firms. Meanwhile, Swedish Embas- ergy Mathew He said Bio-mass energy is sy Head of Development Cor- Nkhuwa says a a very important resource in poration Karin Serkem said US$20 million the country as the majority of Africa is far from achieving Mgrant has been made available Zambians use it for heating SDG7 which sets the target for for the second round of the Be- and cooking. However, bio- universal access to affordable, yond the Grid Funds for Africa mass has largely contributed to reliable and modern energy by (BGFA) to be launched in the deforestation. 2030. next few months. “Biomass in the form of fire- “Worldwide, more than a Mr. Nkhuwa said the goal wood and charcoal contributed billion people lack access to of the funding is to even the almost 70% of total national sustainable modern energy. playing field for market partic- energy consumption which For many of these people con- ipants, improve customer pro- has a large impact on deforest- nection to the grid will not be tection and enable higher qual- ation which currently stands at achieved anytime soon,” she ity and affordable connections. 2500-3000 hectors annually,” said. Also, he said the aim is to he said. And KfW Development create more jobs and more in- “There is need to promote Bank Director Stefan Lute said vestment and competition on more efficient bio-mass -tech his bank had signed US$41.5 the off grid space. nologies as a way of fighting million for the development of The minister who was speak- deforestation in the country.” a hydro plant in the Northern ing at a workshop on the sec- Mr. Nkuwa pointed out Zam- part of the country. ond phase of the BGFA said bia’s on-grid power deficit of He said about €900 million US$11.8 million committed over 750MW brought on by has been allocated to Zambia Minister of Energy Mathew Nkhuwa to four private firms from the low water levels in the Kari- alone by the Federal govern- US$23 million made available ba dam, itself a result of poor ment of Germany with €109 for the first round of BGFA has rainfall in the 2018-2019 rainy million set for the energy sec- so far leveraged additional fi- season. tor. SA Reserve Bank holds repo nance of US$34.8 million. This has severely affected The Beyond the Grind Fund He said over 144,000 con- productivity in the economy. is designed to cover the gap nections have been deployed World Bank and USAID between what poor people can rate at 6.5% in the first two years of the im- studies show that Zambia afford to pay and the initially he South African anchoring inflation expec- to make maximum use of plementation of the first round. needs to ramp up new con- often high cost for companies Reserve Bank tations near the midpoint of bringing down the interest Mr. Nkhuwa prodded the pri- nections by 40% to reach the to deliver energy services to (SARB) has unan- the inflation target range in rate. The rate could help a vate sector to take up the op- vision 2030 and sustainable new areas and groups of cus- imously decided to the interest of balanced and little,” Schussler said. portunity to participate in the energy for all under the Sus- tomers. Tkeep the repo unchanged at sustainable growth”. He says the rand is gain- 6.5%. Group chief economist second round of the initiative tainable Development Goals ing momentum, the oil at- This follows a repo rate at Standard Bank Goolam and where possible partner – SDGs. cut by 25 basis points in Ballim says the SARB’s de- tack in Saudia Arabia is not July from 6.75%. cision was expected and it a long term concern and Insurance scales half-decade high on The repo rate determines acted “appropriately.” that we have very low in- the interest rate to which the “The SARB continues to flation. central bank lends money to function in the pragmatic Razia Khan, the chief Gross Written Premium commercial banks — which manner even though growth economist for Africa and then affects the amount they is weak. It continues to act the Middle East at Stand- By Staff Writer lend to their consumers. reasonably by balancing ard Chartered, agrees with The rate also helps tar- growth concerns - with the he Insurance indus- “As a regulator, we are prove financial literacy Schussler. She said they try has topped 16% aware about some of the chal- among Zambians and get get inflation. The recent risk of accelerating inflation would have expected to see inflation rate is at 4.3% — profile through 2020”. on Gross Written lenges that are in the industry them make better choices on another rate cut. which is well within the He says he did anticipate Premium (GWP) in which range from genuine purchasing of insurance. Khan says it would have T2018, the highest rate in five complaints of unfair treat- Meanwhile Insurance Asso- central bank’s target of 3% that it will not act now, but years. ment of customers, not being ciation of Zambia President to 6%. there is still room for it to given room for the SARB This is a result of sector’s aware of the scope of cover Paul Nkoma said financial Last Wednesday, Statis- cut rates especially if glob- to provide stimulus to the steady growth with its GWP for their product to failure to vulnerability is the more rea- tics South Africa announced al growth continues to slow economy and help strug- increasing by K444,000 last read the ‘fine print’ or -‘jar son to obtain insurance. that the recent annual infla- and if none threatening in- gling consumers. year from K2,739 million gon’ at the back of the cover He said it is important that tion increase from 4% was flation does not occur. She says it would have recorded in 2017 to K3,183 notes,” he said. people plan for the various driven by price increases But he predicates anoth- million in 2018. Mr. Nkwale further re- risks that threaten financial been better for it to come GWP does not represent vealed that there are dis- stability and economic gains. in food and nonalcohol- er cut will only come next now than later. Especial- profit, but rather the mon- putes on claim pay-outs due “Each year, millions of dol- ic beverages, housing and year. ly because “South Africa ey collected by insurers that to non-availability of policy lars are externalized because utilities, and miscellaneous Economists.co.za’s chief stands out from a lot of goods and services. economist Mike Schus- will be secured to pay future wordings that would have of companies and individuals emerging economies that claims. spelt out terms and condi- that seek cover outside the It also said that food in- sler believes that the bank [their] growth is so weak Pension and Insurance Au- tions. country when it can be pro- flation reached its highest should have cut the rate to thority acting Registrar Ti- He said unnecessary delays vided locally which is actu- levels since February 2017. stimulate growth that the that there is a real expec- tus Nkwale told reporters at in getting a claim settled is ally a condition of the law,” In his announcement in economy “needs”. tation that in the com- a media briefing last week also another frustration faced he said. Pretoria on Thursday, Re- The South African gross ing years it [should] only that the general insurance by some policyholders. Mr. Nkoma said insuring serve Bank governor Le- domestic product’s forecast strengthens”. business accounted for K1, “To respond to these chal- with locally based and reg- 908 million in 2018 as com- lenges the authority has cre- istered insures is one way of setja Kganyago said they decreased from 1.5% to She says in the coming pared to K1,797 million in ated a new unit called market supporting local businesses welcome the sustained 0.6% in 2019. Growth for months, there won’t be 2017 whilst long-term insur- conduct. This unit will help and local employment, add- moderation in inflation out- the upcoming years has also enough leg room for the ance business accounted for with treatment of customers ing to the growth of the econ- comes and the fall in infla- been decreased from 1.8% bank to cut because there is K1,275 million in 2018 as fairly and resolve some of omy. tion expectations of about to 1.5% in 2020; to 1.8% the medium-term budget in compared to K941.6 million these challenges,” he said. The insurance sector was one percent since 2016. from 2.0% in 2021. October — and the country in 2017. Further, the Pensions and last week commemorating “The committee would In addition to the slowing In terms of claims, the in- Insurance Authority with as- the 7th National insurance like to see inflation expec- economy, the unemploy- does not yet know the full dustry recorded estimated sistance from the World Bank week under the theme “rais- tations also anchored closer ment rate has increased extent of the [economy’s] gross claims of about K1.1 is developing key fact state- ing an insured generation”. to the midpoint of the infla- from 27.6% in the first deterioration. There is also billion compared to K1.01 ments as part of disclosure The theme emphasizes the rating agency Moody’s billion in 2017. This figure requirements to help clarify importance of the financial tion target range on a sus- quarter of 2019 to 29% in represents an industry that terms and conditions of in- decision today and how they tained basis,” he said. the second quarter of the credit rating announcement is responding to its clients at surance policies. can be beneficial for the fu- The governor says their year. in November. – Mail & their point of need. This would also help im- ture. monetary policy actions “I think we are in a state Guardian will continue to focus on now where we should try

The right to do business PAGE 3 23 - 29SEPTEMBER 2019 Local News The Business Post

U.S. unveils $12m initiative for agro sector

By Staff Writer

new US$ 12.25 mil- babwe. agement, and marketing plan lion five-year farm- For Zambia, CNFA’s pro- development,” the statement Aer-to-farmer pro- gramme will strive to boost the said. gramme that will range across quantity and quality of produce The farmer-to-farmer pro- six countries was launched last through improved production gramme will target farmer week in Zambia by the U.S. and processing technologies. cooperatives and associations, government partnering with In addition it will focus on small and medium-sized farm- international agricultural de- strengthening the organiza- ers and processors, academic velopment organization Culti- tional and marketing capacity institutions, local non-govern- vating New Frontiers in Agri- of agribusinesses and promot- mental and community-based culture (CNFA). ing the use of conservation ag- organizations, social enterpris- According to a statement riculture. es, and other agribusinesses. made available to the press by “F2F will leverage volun- The F2F programme will transfer knowledge and expertise from U.S. agricultural producers to local farmers the US embassy, this is part of teer expertise to strengthen the the Farmer-to-Farmer World- horticulture and legumes value wide programme launched in chains in Eastern Province, 1985 by the U.S. Congress. and aquaculture value chains It is aimed at transferring in Southern Provinces,” the knowledge and expertise from statement said. U.S. agricultural producers and During the five-year pro- businesses to developing econ- gramme, U.S. volunteer tech- omies. nical experts from agriculture, “The F2F program provides business, and other disciplines technical assistance to farmers, will complete two- or three- farm groups, agribusinesses, week assignments in Zambia and other agriculture-sector in- to transfer their expertise and stitutions,” the embassy said in deliver training. the statement. The US embassy added “It aims to generate sustain- that this training will address able, broad-based econom- knowledge and capacity gaps ic growth in the agricultural that hold back local producers, sector and to increase under- processors, and service provid- standing of international de- ers. velopment issues and U.S. de- “The experts will focus on velopment programs through a range of subjects, includ- people-to-people diplomacy.” ing horticultural, legume, and The programme now oper- fish production and process- ates in Zambia, Malawi, Mol- ing, cooperative development, dova, Mozambique, and Zim- business planning and man-

‘Leave mukula to private sector’ By Prudence Chota he Zambia Em- icized. powerment Hub Mr. Muzyamba said a lot of for Entrepreneurs youths and entrepreneurs can and Skills Train- greatly benefit from the muku- ing (ZEHEST) has la business given the opportu- Tcalled on government to leave nity to run it while government the mukula timber business to plays an oversight role. the private sector as a way of “A lot of youth are roaming empowering entrepreneurs and the streets in search of employ- job creation. ment which government has ZEHEST president Clar- failed to provide. Government ence Muzyamba said the gov- needs to understand that em- ernment’s decision to strip powering local people means off the mukula business from money remains in the country local entrepreneurs limits the were they bank which increas- capacity of mukula producers es money supply in the coun- to continue growing a plant try,” he said. whose market has been polit-

The right to do business PAGE 4 23 - 29SEPTEMBER 2019 Travel & Tourism The Business Post Holiday Adventure Tours: Reliable, Efficient offering By Brian Phiri THE SCENIC KARIBA the estate) Kapishya natural JOURNEY TO THE spring, which is surrounded For many years, the approxi- NORTH by lush tropical vegetation and mately 2,000km (1,242 miles) Overlooking granite hills raffia palms. Some 10 km (6 of Lake Kariba’s shoreline has that form the tail end of the miles) from the hot spring are provided a weekend gateaway Great Rift Valley in Muchin- the Chusa waterfalls, where from Zambia’s capital city Lu- saka, which is less than two ga Province is a manor house water rafting can be done. One hours’ drive (approximately called Shiwa Ng’andu, which of the most beautiful times 100km or 61 miles). One of was built by an English soldier to visit the estate is late Sep- the best ways to soak in the sun called Sir Stewart Gore Brown tember when the leaves of the and enjoy the spectacular sun- over a hundred years ago. En- brachystegia trees turn from a burgundy colour to yellow, rise and sunsets is on a house- joy gorgeous views of Lake then green as the dry season boat, of which there are various Shiwa Ng’andu after hiking up the Nachipala Bareback Hill or approaches. options available for hire. Shiwa Ng’andu Manor, relax in the nearby (approxi- Lake Kariba, Zambia Zambia mately 19km or 12 miles from

Angela Malilwe, Holiday Adventure Tours travel Consultant hen operating at nation overseas should be able Tour activities would in- their peak, local to transition smoothly between clude city tours but also boat travel agencies flights in a foreign destination, cruises in idyllic spots for are able to offer with all the arrangements ef- holiday-makers and adventure Wtourists, holiday-seekers, and ficiently covered by the local seekers. adventure lovers stimulating travel agency. In keeping to its aim to be packages that take them be- On that score, Holiday Ad- yond the well-beaten trail to venture Tours has done its on point in differentiation, the the magnificent Victoria Falls, spadework, offering connec- travel agency also helps to pro- says Angela Malilwe, Travel tions for clients in foreign des- cess work permits for clients Consultant at Holiday Adven- tinations through partnerships as well as offering immigration ture Tours (HAT). with overseas agencies. Mal- visas and other types of visas. Other than providing the ilwe says HAT offers air tick- “For example, the Dubai usual services like accom- eting for destinations that are visa will be done in 3 days and modation, holiday packages, as far flung as the U.S.A. and will be valid for 30 days,” says transfers and rentals, tours and China overseas, and for region- Malilwe. “The China visa is activities, and air ticketing, al destinations like Bujumbura processed within 7 days and PICTURESQUE: Boat ride on Lake Kariba local travel agencies can offer in Burundi and Kigali, the cap- much more. While HAT does ital of Rwanda. will likewise be valid for 30 provide these, Malilwe says For holiday makers seeking days.” the travel agency is striving to tour neighbouring countries, Most of Zambia’s local- for differentiation as one of its HAT packages include festive ly-owned travel agency are hallmarks. holidays and honeymoon pack- flexible in payments, which “Our competitive edge is de- ages as well as family holidays. can create a ripple effect of un- fined by what we believe in,” paid air tickets by clients. she says. “When you book with us, our assurance is a prompt ser- How does Holiday Adven- ‘Reliable. Flexible. Effi- ture Tours hope to avoid this cient.’ To be sure, the Holiday vice,” says Malilwe. trap? Adventure Tours tagline is The accommodation pack- catchy. ages that HAT offers are for “You have to create the bal- “That lies at the heart of who Zambia and neighbouring ance between flexibility and we are,” Malilwe says. countries like Zimbabwe and affordability but ensure you One of the areas in which Namibia. For Zimbabwe, ac- are efficient enough to pay for locally-owned travel agencies commodation and activities in IATA, else you lose the bal- have fallen short has been in Chobe village is an option for ance,” Malilwe says. forging strategic alliances and How does the travel agency partnerships with travel agen- HAT would-be clients to con- sider. position itself to be in three cies overseas to ensure air years’ time? travel becomes seamless for Then there are the transfers “Holiday Adventure Tours jet-setting clients. and rentals, which include air- For example, a traveller port transfers, pick-and-drop- will be one of the best travel booked on a flight to a desti- offs and a rent-a-car service. agencies in Zambia,” says An- gela Malilwe. HISTORICAL: The famous Shiwa Ng’andu Manor

The right to do business PAGE 5 Opinion/Comment & Analysis23 - 29SEPTEMBER 2019 The Business Post

Warning bells on sales tax ECB puts Europe on a collision should be heeded course with Trump n 12 September, supply at risk. programme would happen The Zambia Cham- providing a service). of tax there will be. In the European The economic mecha- and acted accordingly. ber of Mines con- “As there is no re- most cases, this will Central Bank de- nism by which the ECB Italian banks, in particu- cerns in its recently lief for the tax, the simply be reflected cided to launch achieves devaluation was lar, got a head start in buy- Oyet another asset-purchase explained decades ago ing up European securities published report, ‘A Sales Tax will inflate in increasingly high- programme, with plans to by the so-called asset ap- worldwide, by tapping (dis- Tax Too Far: The the costs of business- er prices through the buy €20bn ($22bn) in new proach. proportionately) into funds Economic Impact of es in each industry value chain, with the securities per month for an If European central from the targeted longer- Zambia’s Proposed sector. In most cas- end customer (often indefinite period of time, banks purchase Europe- term financing operations Sales Tax’. Here, we es, these additional individual Zambi- using the same structure as an securities with freshly (TLTRO) programme that publish is an excerpt costs will be passed ans) left in the worst it has in the past. printed money, they distort the ECB had launched in from the report: on through the value possible position.” The decision was not the international portfolio June 2014. made unanimously: the equilibrium with regard to The ECB vehemently de- “The Sales Tax that chain, with the con- German, French, Dutch, domestic and foreign cur- nies that it pursues an ex- is currently being sumer bearing the Impact on Min- Austrian, and Estonian rencies and interest-bearing change-rate policy, because proposed for Zam- brunt of significant members of the ECB coun- assets, and a currency de- it knows that doing so falls bia is neither a con- price increases. This ing Industry cil have all voiced fierce valuation is needed to re- well outside its mandate. ventional Sales Tax, unpleasant phenom- opposition to further quan- balance it. But there is simply no de- “Quite apart from nor a VAT system. enon is known as the titative easing (QE). Some of the sellers will nying that its policy comes the ‘big picture’ ECB president Mario offer euros on the currency at the expense of Europe’s Instead, it borrows ‘cascade effect’.” concerns of price Draghi claims that the ma- markets, in order to pur- trading partners. The situ- from both, and is of- inflation within the jority in favour of further chase non-European se- ation is eerily reminiscent ten referred to as a loosening was so large that curities. And that will put of the competitive devalua- The Cascading wider economy, the ‘hybrid’. it was unnecessary even to downward pressure on the tions of the 1930s. Effect proposed Sales Tax “Unlike a con- count the votes. euro exchange rate. When the US Federal Re- will have specific Never mind that the coun- Foreign sellers will trade serve, following in the foot- ventional Sales Tax “All of the key in- negative impacts on tries opposing the decision in their own assets for Eu- steps of the Bank of Japan, which is levied only dustry sectors in mining companies hold 56% of the ECB’s ropean securities only when pursued a similar policy on the end user, it is paid-in equity capital and the euro exchange rate is some years ago, then-Fed Zambia have a num- and their suppliers. proposed that Zam- account for 60% of euro- lower. chair Ben Bernanke open- ber of intermediar- “Further, the im- bia’s Sales Tax – 9% zone output. The new international ly acknowledged the ex- ies within the supply plications of the on local sales, and Counting their compatri- portfolio equilibrium ush- change-rate effects of QE, chain, such as man- ‘cascade effect’ will ots on the ECB governing ered in by the ECB is ac- although he said that it was 16% on import pur- ufacturers, distribu- particularly disad- council, however, they have companied by euro depre- not quite clear how they chases – should be tors, and so on. vantage local Zam- only seven out of 25 poten- ciation. came about. levied on all trans- tial votes (subject to a rotat- During the ECB’s first When the Europeans later “As Sales Tax is bian businesses, and actions, with ex- ing limitation). round of QE, the portfo- followed suit with their own levied at each stage will perversely incen- emptions only being Draghi did have a major- lio shifts were clearly no- QE programme, they were, within the supply tivise mining compa- ity, then, but it represented ticeable among sellers of in a manner of speaking, granted for selected chain on non-exempt nies to import goods a very clear minority of the government bonds, as the taking their allotted swig business expenses. goods, and there is no directly, to the exclu- ECB’s liable capital. This ECB itself has document- from the bottle. “Whilst this looks raises considerable con- ed. Those sellers mainly The Trump administra- ability to offset or re- sion of local suppli- like VAT, which is cerns about the governing used the proceeds to pur- tion knows all of this, as coup Sales Tax on ex- ers with whom there also levied at each council’s decision-making chase US Treasury bonds, does everybody else. But penses incurred, the are currently strong stage in the value process. because they wanted to Trump has warned Eu- price charged to each links. Such concerns are all the stay within the same asset rope repeatedly not to get chain, under Zam- customer will in- “Key services to more justified considering class. US sellers, on the greedy. To avoid becoming bia’s proposed Sales crease, as the means the mining industry that US president Donald other hand, used the euros the “beggared” neighbour, Tax companies will Trump has been complain- they received to purchase he continues to hold out the of recouping the ad- will not be exempt not be allowed to ing loudly about the im- European corporate assets, threat of trade sanctions. ditional burden that from Sales Tax (such offset the Sales Tax plied exchange-rate policy which had become cheaper, Europe therefore has a is the Sales Tax. as contract mining, stemming from ECB asset owing to the fall in the euro choice. It can continue to incurred on busi- “Worse, because equipment mainte- purchases. He has a point. exchange rate. allow the ECB governing ness expenses (unless there is no relief from nance). Draghi, of course, in- In the context of the council to pursue its own they happen to be ex- sists that the ECB does not ECB’s first large asset-pur- (implicit) exchange-rate the tax, and it is lev- “Additionally, key empt). “target” the exchange rate. chase programme, the eu- policy, or it can decide that ied at each stage in consumable inputs “In short, the pro- While that may be true, it is ro’s exchange rate fell by the looming trade conflict the chain, one on top and services that par- posed Sales Tax for beside the point. about a quarter against the with the US belongs in the of the other, the ef- ticularly affect the By purchasing long-term dollar between mid-2014 hands of democratically Zambia will not actu- fect of the tax is com- mining sector, such securities, eurozone central and January 2015, when the controlled institutions. The ally be a tax on con- pounded for those as fuel and electricity banks will once again trig- programme was formally central banks are out of sumption, as a con- ger a currency devaluation. launched, because traders their league on this one. – businesses in the have been excluded ventional Sales Tax Indeed, it is precisely this generally assumed that the The Guardian middle or at the end from exemption lists. or VAT are, but will effect that likely plays the of a supply chain. The draft Sales Tax dominant role in stimulat- be a tax on transac- “This is a form of Bill provides for Sales ing economic activity. tions. double taxation – a Tax to be charged on The problem, of course, is In this way, it will that by stimulating exports tax on tax – and the both imports and lo- operate similarly to and curbing imports, the longer the supply cal supplies at a rate a bank charge on policy comes at the expense chain, the higher the of 16% and 9% re- transactions (except of other countries. Worse, accumulated amount spectively.” other stimulus effects of of course, the bank is interest-rate reductions are rather limited, particular- Send your comments and ly with respect to invest- ment. There is even reason articles to the editor to fear – as the Deutsche Bank chief executive Chris- The Business Post Contact No: +260 950 303 728 tian Sewing does – that the Plot No: 5485 Msanzala +260 962 414 043 ECB’s ongoing rate reduc- Road, Kalundu,Lusaka +260 956 037 334 tions had a detrimental ef- E-mail:[email protected] fect on the banking system, thereby putting the credit

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The right to do business PAGE 7 23 - 29SEPTEMBER 2019 Money & Capital Markets The Business Post LATEST TRADING ON LUSE In 72 trades recorded on Wednesday 18th activity was also recorded in ATEL and LAFA. a capitalization of K57,114,173,694 including September, some 35,654 shares were transacted, The LuSE All Share Index (LASI) closed at Shoprite Holdings and K22,874,967,714 yielding a market turnover of K77,784. CEC and 4,398.81 points down by 0.18% from its previous excluding Shoprite Holdings. SCBL recorded a loss of K0.01 each. Trading close of 4,406.72 points. The market closed on Closing Prices - Last Updated on Wed. 18, Sep, 2019 Symbols Price (k) Change (%) Symbols Price (k) Change (%) AFRICAN INDICES BRVM-CI 146.55 -0.89% 18-Sep AELZ 20.00 0.00 REIZ 5.80 0.00 BSE DCI 7,435.04 +0.03% 18-Sep ATEL 31.50 0.00 SCBL 1.64 0.01 DSE ASI 1,926.85 +0.39% 18-Sep SHOP 63.00 0.00 BATA 2.65 0.00 EGX 30 14,745.10 -0.05% 18-Sep BATZ 1.90 0.00 ZABR 7.99 0.00 GSE-CI 2,244.64 -0.04% 18-Sep CCAF 1.90 0.00 ZCCM 28.48 0.00 JSE ASI 56,220.41 -1.19% 18-Sep CCHZ 2.00 0.00 ZMBF 1.00 0.00 LuSE ASI 4,398.81 -0.18% 18-Sep CEC 1.32 0.01 MASI 11,553.51 -0.42% 18-Sep INVE 12.00 0.00 ZMFA 4.80 0.00 MSE ASI 29,550.18 +0.68% 18-Sep NGSE ASI 27,681.61 +1.00% 18-Sep LAFA 1.97 0.00 ZNCO 0.73 0.00 NSE ASI 144.30 +0.29% 18-Sep MAFS 3.00 0.00 NSX OI 1,290.06 +0.29% 18-Sep ZSUG 2.50 0.00 NATB 9.22 0.00 RSE ASI 125.58 - 18-Sep SEM ASI 1,959.40 +0.18% 18-Sep PMDZ 0.62 0.00 TUNINDEX 7,125.38 +0.29% 18-Sep PRIM 2.80 0.00 ZSUG 2.50 0.00 USE ASI 1,539.99 -0.34% 18-Sep PUMA 0.99 0.00 ZSE Ind. 577.74 +1.02% 18-Sep MONEY MARKETS & EXCHANGE RATES (BOZ) Market Rate Daily Commercial Banks Exchange Rates

Daily ZMW/USD Exchange Rates : 18-09-2019 18-09-2019 09:30 12:30 15:30 Time Buying Selling Bank Name Interbank Rates Retail Rates Interbank Rates Retail Rates Interbank Rates Retail Rates 09:30 13.1582 13.2082 12:30 13.1685 13.2185 Buy Sell Buy Sell Buy Sell Buy Sell Buy Sell Buy Sell 15:30 13.1676 13.2176 ACCESS BANK ZAMBIA 13.1700 13.2200 13.0750 13.3320 13.1700 13.2200 13.0750 13.3320 13.1700 13.2200 13.0750 13.3320

Average Exchange rates: 18-09-2019 ATLAS MARA BANK 13.1700 13.2200 13.0631 13.3270 13.1700 13.2200 13.0631 13.3270 13.1700 13.2200 13.0631 13.3270 Currency Buying Selling BANK OF CHINA (ZAMBIA) 13.1500 13.2000 13.0600 13.2850 13.1500 13.2000 13.0600 13.2850 13.1500 13.2000 13.0600 13.2850 USD 13.1648 13.2148 GBP 16.4139 16.4815 BARCLAYS BANK ZAMBIA 13.1500 13.2000 13.0459 13.3041 13.1900 13.2400 13.0706 13.3294 13.1900 13.2400 13.0706 13.3294

EUR 14.5511 14.6116 CAVMONT BANK 13.1800 13.2300 13.0900 13.2800 13.1700 13.2200 13.0900 13.2800 13.1750 13.2250 13.0900 13.2800 ZAR 0.9001 0.9039 CITIBANK ZAMBIA 13.1500 13.2000 13.0680 13.3320 13.1700 13.2200 13.0779 13.3421 13.1700 13.2200 13.0680 13.3320 Bank of Zambia Policy Rate 18-09-2019 10.2500 ECOBANK ZAMBIA 13.1500 13.2000 13.0433 13.3068 13.1700 13.2200 13.0433 13.3068 13.1600 13.2100 13.0779 13.3421 Featured LME prices US$: 18 SEPTEMBER 2019 FIRST ALLIANCE BANK ZAMBIA 13.1500 13.2000 13.0294 13.2900 13.1700 13.2200 13.0294 13.2900 13.1700 13.2200 13.0294 13.2900

LME Aluminium 1,751.00 FIRST CAPITAL BANK ZAMBIA 13.1500 13.2000 13.0317 13.2924 13.1600 13.2100 13.0317 13.2924 13.1650 13.2150 13.0317 13.2924 LME Copper 5,745.00 FIRST NATIONAL BANK ZAMBIA 13.1700 13.2200 13.0640 13.3260 13.1750 13.2250 13.0690 13.3310 13.1750 13.2250 13.0690 13.3310 LME Zinc 2,321.00 LME Nickel 17,230.00 INDO-ZAMBIA BANK 13.1500 13.2000 13.0400 13.3000 13.1600 13.2100 13.0600 13.3200 13.1500 13.2000 13.0600 13.3200

LME Lead 2,054.00 INVESTRUST BANK 13.1500 13.2000 13.0593 13.3012 13.1700 13.2200 13.0593 13.3012 13.1700 13.2200 13.0593 13.3012 LME Tin 16,850.00 STANBIC BANK ZAMBIA 13.1700 13.2200 13.0650 13.3250 13.1700 13.2200 13.0650 13.3250 13.1700 13.2200 13.0650 13.3250 LME Aluminium Alloy 1,240.00 LME NASAAC 1,031.00 STANDARD CHARTERED BANK 13.1600 13.2100 13.0560 13.3150 13.1600 13.2100 13.0610 13.3200 13.1500 13.2000 13.0610 13.3200

LME Cobalt 36,500.00 UNITED BANK FOR AFRICA ZAMBIA 13.1700 13.2200 13.0532 13.3168 13.1700 13.2200 13.0532 13.3168 13.1750 13.2250 13.0532 13.3168 LME Gold* 1,507.90 ZAMBIA INDUSTRIAL COMMERCIAL BANK 13.1500 13.2000 13.0498 13.3002 13.1700 13.2200 13.0696 13.3204 13.1700 13.2200 13.0696 13.3204 LME Silver* 17.830 LME Steel Scrap** 253.50 ZAMBIA NATIONAL COMMERCIAL BANK 13.1500 13.2000 13.0956 13.3444 13.1700 13.2200 13.0956 13.3444 13.1700 13.2200 13.0956 13.3444

LME Steel Rebar** 418.00 Market Average 13.1582 13.2082 13.0582 13.3105 13.1685 13.2185 13.0632 13.3155 13.1676 13.2176 13.0646 13.3170

The right to do business PAGE 8 Daily Commercial Banks Exchange Rates

The Business Post 16 - 22SEPTEMBER 2019 Classifieds

FOR SALE. PROPERTY LOCATION: Ngwezi FOR SALE. 5 acres land Road, Roma Residential. near Maria Zaloumis farm or BEDROOMS: 4 HOUSE FOR SALE. In Zamseed farm. It comes with a REST ROOMS: 2 self- 2 piggery house and 2 roomed Kafue Kalundu View Area. contained rooms and one workers house. Located on a 25 by 15 plot communal bathroom Location: 9 miles on title deed and it’s on land record. SWIMMING POOL: Yes 3 km from Great North Road Everything else is pure and AMENITIES: Very close to K600,000 open for negotiation. clean. malls, schools and restaurants Call/text/WhatsApp SURROUNDINGS: Very Contact No: +260 962 414 +260971064798 well kept lawn on a spacious 043 yard. Enough space for BBQ +260 956 037 334 functions and kids playing. SECURITY: Boundary wall and electric fencing CAR SLOT: 2 car slot WORKERS QUARTERS: Available Plot Size: 3600 sqm REDUCED TO GO. QUICK ASKING PRICE: US$ SALE. IN LILAYI ESTATE 700,000. LUSAKA Prime area. 2 Call/text/WhatsApp flats 2 bedrooms MSC each. +260971064798 Plot size 20 x 35. On title deed. From K400,000 to SALE SALE SALE. HOUSE K370,000. Call/text/Whatsapp. ON SALE IN STATE LODGE +260975842979 4 bedroomed, 2 self-contained, big sitting room, dinning, tv room, laundry, study, 2 carport, borehole, tank, tarmac frontage, street lights, insured and very secure place. Plot size 50 by 40. K1,500,000 (K1.5 SALE SALE SALE. 3 SALE SALE SALE. NEW milion kwacha). OPEN FOR KASAMA. INSTALMENTS bedroom standalone house for NEGOTIATIONS. Call/text/ ARE WELCOME. WITHIN 4 sale near the traffic lights in MONTHS. Whatsapp. +260971064798. Chalala along Ring Road. Plot 2 bedrooms Flats by 4 units. size 30x40 with a borehole. Borehole, modern fittings, FARM FOR SALE. 5 hectares K750.000 NEGOTIABLE. wall fence. K300,000 each Kafue virgin land. 7 kms from Call/text/Whatsapp. negotiable. Call/text/Whatsapp Kafue Estates, near the Kafue +260971064798 +260971064798 River. Selling at K55/hectare

CLASSIFIEDS FOR PROPERTIES FARM FOR SALE AND CARS Contact No: +260 962 414 043 +260 956 037 334 THE FOLLOWING TERMS AND CONDITIONS APPLY 1. It’s K2 per word minimum or K30 per advert 2. If you add a Standard small Picture it is K10 3. Advert will run one week 4. You will also pay us an AGENCY fee of 4% of the sale price 5. Before we advertise you must produce proof of ownership/appoint- ment by the owner as an Authorized Agent for the property or Car.*

The right to do business PAGE 9 23 - 29SEPTEMBER 2019 International Business The Business Post Fed cuts interest rates he U.S. Federal ing,” Powell said, adding Fed President Eric Rosen- Fed this week. Reserve cut inter- that the Fed would stop cut- gren called for no rate cut, In a hint that the Fed may BA pilots call off second est rates again to ting rates “when we think and St. Louis Fed President soon take bigger steps, help sustain a re- we’ve done enough.” James Bullard wanted a Powell acknowledged that Tcord-long economic expan- Trump blasted Powell, bigger half-point rate cut. strains in funding markets September strike sion but signaled a higher saying the central bank Forecasts from all 17 pol- had been bigger than ex- ritish Airways pi- tablishing a time out for com- bar to further reductions in chief had “No ‘guts,’ no icymakers released at the pected, and he said the cen- lots have called off mon sense to prevail, we have borrowing costs, eliciting a sense, no vision!” end of the meeting showed tral bank may need to re- a strike due Friday lifted the threat of the strike on fast and sharp rebuke from “A terrible communica- even broader disagreement, sume increases to the Fed’s 27 September, the 27 September. Bunion said. “BA passengers rightly ex- President Donald Trump. tor,” Trump tweeted before with seven expecting a third balance sheet “earlier” than Describing the U.S. eco- Powell had even begun his rate cut this year, five see- previously thought. This second strike would pect BA and its pilots to re- nomic outlook as “favor- news conference. ing the current rate cut as U.S. stocks, lower ahead have followed a strike action solve their issues without able,” Fed Chair Jerome Later, Trump told report- the last for 2019, and five of the statement, extended on 9 and 10 September. disruption and now is the time Powell said the rate cut was ers during a trip to Califor- who appeared to have been their losses and the U.S. The British Airline Pilots’ for cool heads and pragmatism designed “to provide insur- nia: “I think it’s fine. I think against even Wednesday’s Treasury yield curve flat- Association (Balpa) said the to be brought to bear. I hope ance against ongoing risks” that frankly they should move. tened. The 10-year Trea- first strikes had “demonstrat- BA and its owner IAG show including weak global have acted faster.” The central bank also sury note yield US10Y- ed the anger and resolve of as much responsibility as the growth and resurgent trade Underscoring divisions widened the gap between T=RR inched up to 1.79%. pilots” and it “was now time pilots.” tensions. within the central bank, the the interest it pays banks The Fed also cut rates in for a period of reflection be- Pilots had asked for a profit “If the economy does quarter-point rate cut on on excess reserves and the July, the first such move fore the dispute escalates fur- share in pay talks. BA refused turn down, then a more Wednesday drew dissents top of its policy rate range, since 2008, as it responded ther and irreparable damage is to budge on a three-year offer extensive sequence of rate from three of the 10 voting a step taken to smooth out to risks from Trump’s trade done to the brand”. worth 11.9%. The company cuts could be appropriate,” policymakers. problems in money markets war with China and other The union said it hoped BA said the proposal would take Powell said in a news con- Kansas City Fed President that prompted a market in- overseas developments. – would negotiate seriously with senior pilots’ annual earnings ference after the Fed an- Esther George and Boston tervention by the New York Bloomberg a view to ending the long-run- to more than £200,000, in- nounced it had lowered its ning pay dispute. cluding allowances, after three benchmark overnight lend- BA has already cancelled years. However, the union said ing rate by a quarter of a passengers’ flights for next most pilots earned around half percentage point to a range week. About 1,700 services that sum, and wanted more of 1.75% to 2.00%. It was were cancelled in the strike after accepting cuts to pay the second Fed rate cut this action this month. and conditions, including pen- year. Balpa said it could still an- sions, during lean years. BA But, Powell said, “what nounce further strike dates if recorded profits of more than we think we are facing here BA refused to hold meaningful £2bn in 2018. is a situation which can be new negotiations. The union A BA spokesperson said: addressed, which should be has a mandate for strikes until “We have just received this addressed, with moderate January 2020, after more than news. We are considering the adjustments to the feder- 90% of its BA pilot members implications and we will give al funds rate,” noting that voted for industrial action in a updates in due course.” the U.S. labor market was ballot this summer. The airline has previously strong and inflation was The union’s general sec- said it would be open to talks, likely to return to the Fed’s retary, Brian Strutton, said: but without pre-conditions. It 2% annual goal. “Someone has to take the ini- is unclear how much of its nor- “We are going to be high- tiative to sort out this dispute mal schedule the airline will ly data-dependent ... We and with no sign of that from operate next week, having re- are not on a pre-set course, BA, the pilots have decided to booked or cancelled thousands we are going to be making take the responsible course. of passengers’ flights already. decisions meeting by meet- Federal Reserve Chairman Jerome Powell “In a genuine attempt at es- – The Guardian China to tap pork reserves U.S., Chinese trade deputies face off as swine fever hits industry .S. and Chinese beans and other farm commod- deputy trade ne- ities, a person with knowledge hina was set to release China economist at Capital Eco- gotiators were set of the planned discussions told pork supplies from nomics, said the auction would its central reserves on provide slight relief to the industry to resume face-to- Reuters. Thursday as it moves to but would not do much to contain Uface talks on Thursday for the Two negotiating sessions Ctackle soaring prices and shortag- prices. first time in nearly two months over the two days will cov- es caused by an outbreak of swine “In itself, I don’t think it will be as the world’s two largest er agricultural issues, while fever. able to prevent pork prices from just one will be devoted to A state-backed body would rising further unless they manage economies try to bridge deep auction 10,000 tonnes of frozen to get the disease under control,” policy differences and find a texts covering core changes pork from its strategic reserves on he said. way out of a bitter and pro- to strengthen China’s intellec- Thursday. Beijing created its strategic pork tracted trade war. tual property protections and China, the world’s biggest pro- reserve in 2007 but the size of the The negotiations on Thurs- end the forced transfer of U.S. ducer and consumer of pork, has stockpile is not known. struggled to control the spread of Capital Economics estimates day and Friday are aimed at technology to Chinese firms. the disease. that at most, the stockpile would laying the groundwork for “Sessions on agriculture will Beijing has slaughtered more hold four days’ worth of pork sup- high-level talks in early Oc- get a disproportionate amount than 1 million pigs in a bid to con- plies to feed China. tober that will determine of air time,” the source said, tain the incurable pig virus. Pork is one of China’s main food whether the two countries are adding that one of these ses- Trump and Xi Ping, the presidents of the two coun- The highly contagious disease is staples and accounts for more than tries not dangerous to humans, but has 60% of the country’s meat con- working towards a solution or sions also will include a fo- manipulator last month after to materialize during U.S.-Chi- hit China’s crucial pig-farming sumption. The industry produced are headed for new and higher cus on U.S. President Donald the yuan slipped below 7 to na trade talks in late July, industry and driven up costs for close to 54 million tonnes of pork tariffs on each other’s goods. Trump’s demand that China the dollar, accusing Beijing of Trump quickly moved to im- consumers. last year. A delegation of about 30 Chi- cut off shipments of the syn- Pork prices jumped 46.7% in About 1.2 million pigs have pushing its currency lower to pose 10% tariffs on virtually nese officials, led by Vice Fi- thetic opioid fentanyl to the August on a year earlier, official been culled in China in an effort gain a trade advantage. all remaining Chinese imports figures showed. to halt the spread of swine fever nance Minister Liao Min, were United States In a bid to stabilise prices, a since August 2018, according to set to launch talks on Thurs- Trump is eager to provide Trump has said that China untouched by previous rounds state-backed group that manages data from the Food and Agricul- day morning at the U.S. Trade export opportunities for U.S. failed to follow through on of tariffs. the pork reserves will auction im- ture Organization, a UN agency. Representative’s (USTR) of- agricultural purchase commit- But in an easing of tensions ported frozen pork from countries In April, Rabobank estimated farmers, one of his key polit- including Denmark, France, the Chinese pork production would fice near the White House. The ical constituencies who have ments made by its president, last week, Trump delayed a U.S. side is expected to be led US and UK. fall by up to 35% this year due to been battered by China’s retal- Xi Jinping, at a G20 leaders scheduled Oct. 1 tariff increase Only 300 tonnes will be sold to swine fever. by Deputy USTR Jeffrey Ger- iatory tariffs on U.S. soybeans summit in Osaka, Japan as a on $250 billion worth of Chi- each bidder at the auction. The supply shortage has sent rish. Pork is used widely in Chinese pork prices soaring and has eaten and other agricultural com- goodwill gesture to get stalled nese imports until mid-month, festivals, and the auction comes as into household incomes. The discussions are likely to talks back on track. China has as China postponed tariffs on focus heavily on agriculture, modities. the country prepares to celebrate a That poses a fresh challenge for denied that such commitments some U.S. cancer drugs, ani- week-long national holiday for the the Chinese economy, which is including U.S. demands that U.S. Treasury Secretary were made. mal feed ingredients and lubri- 70th anniversary of the People’s already facing a slowdown and China substantially increase Steven Mnuchin, formally Republic of China. a trade war between Beijing and purchases of American soy- declared China a currency When such purchases failed cants. -- Bloomberg Julian Evans-Pritchard, senior Washington. – BBC

The right to do business PAGE 10 African Business 23 - 29SEPTEMBER 2019 The Business Post Kenya Airways suspends CFO in executive fallout

enya Airways has sus- Lawmakers in July voted to na- maintenance and repair of aircraft der advertisement/request for pro- The abandoned deal envisaged like Ethiopia, which runs air trans- pended its chief finan- tionalise the carrier, which is 48.9 engines. posal, list of pre-qualified suppliers the merger of operations of Kenya port assets that includes airports cial officer in a devel- percent government-owned and KQ hires third party firms to and tender documents for potential Airways and the Jomo Kenyatta and airlines under a holding com- opment that looks set 7.8 percent held by Air France- carry out the maintenance of the bidders. International Airport (JKIA) in a pany. Kto destabilise the executive suite KLM. critical aircraft parts. It is not clear As losses continue to pile up, strategy meant to deliver the twin Under the model approved by of the national carrier struggling to recover from years of losses. The Directorate of Criminal In- which firms and individuals are the government now proposes to benefits of rescuing the national lawmakers, Kenya Airways will A director of the national carrier vestigations recently launched a being targeted in the investigation. nationalise the airline after aban- carrier and cementing Nairobi’s become one of four subsidiaries in said that the head of finance, Hellen probe into some of the company’s According to the DCI letter, the doning an earlier plan to merge it status as a regional transport hub. an Aviation Holding Company. – Mathuka, was sent on compulsory past operations, with a focus on probe will review everything from with the Kenya Airports Authority Under the nationalisation plan, Business Daily leave last Friday after disagreeing procurement of services for the procurement and budget plans, ten- (KAA). Kenya wants to follow countries on strategy with the carrier. The moves come as the national carrier prepares for the premature departure of its chief executive Se- bastian Mikosz at the end of De- cember. The Recruiter On Tuesday, Mikosz said he had powered by KSM no comment for this story while KQ chairman, Michael Joseph, termed Ms Mathuka’s absence from work an internal Kenya Air- ways matter. find jobs “She is on leave. I’m a bit dis- JOB OPPORTUNITIES appointed that you people of the media want to report every detail including internal matters at KQ,” Mr Joseph told the Business Daily Tuesday on the sidelines of an avi- JOB TITLE # Of Vacancies organization DEADLINE ation meeting. 1 Zambia Agriculture Research Associate X1 One Acre Fund 2019-10-18 Kenya Airways has been inves- 2 Director Credit Control X1 Citizens Economic Empowerment Commission 2019-09-27 tigating the source of leaked sen- sitive company information from 3 Fisheries Technical Advisor X1 Frankfurt Zoological Society - Nsumbu Tanganyika Conservation 2019-10-01 Programme the board. The management turbulence 4 Bakery Production Manager X1 Private 2019-09-25 risks further hurting the loss-mak- 5 Program Rotation Associate X1 One Acre Fund 2019-12-09 ing airline in the transition period when it needs to find a new lead- 6 Manager, Office of the CEO X1 One Acre Fund 2019-12-09 er, who would continue the turn- 7 Neuroscience Faculty – Full Time X1 Texila American University 2019-09-27 around initiatives the airline began three years ago. 8 Senior Environmental Engineer X1 The World Bank Group 2019-09-24 With Mr Mikosz leaving at the end of December, the airline will 9 Director Development X1 TEVETA 2019-09-30 have to move fast to seek his re- 10 Program Officer X1 Jhpiego 2019-09-27 placement. Chief financial officers typically 11 Information Technology Specialist X1 Jhpiego 2019-09-27 step in to hold the CEO’s role on a temporary basis should the search 12 Knowledge Management and Communication Special- X1 Jhpiego 2019-09-27 of a leader extend beyond the time- ist line. 13 Driver X1 Jhpiego 2019-09-27 Ms Mathuka’s prolonged ab- sence from work could cloud this 14 Programme Assistant X1 Jhpiego 2019-09-27 process. 15 Demand Creation and Community Mobilisation Tech- X1 Jhpiego 2019-09-27 The early departure of Mr Miko- nical Officer sz, whom the airline relied on to 16 IT Operator X1 Timco Construction 2019-09-30 turn it around, is a signal of the ar-

duous task of improving the com- 17 Finishing Foreman X1 ACCUCON LIMITED 2019-09-27 28 JULY - 4 AUGUST/1/Ksm pany’s performance. 18 HEAD - HUMAN RESOURCE X1 KSM Management Consultants 2019-09-27 Mr Mikosz was hired in 2017 and his contract was to run un- 19 Accounts Assistant- Temporal X1 KSM 2019-09-30 til next year before he decided to 20 HUMAN RESOURCE OFFICER X1 KSM MANAGEMENT CONSULTANTS 2019-09-27 shorten it for personal reasons. The CFO position at Kenya Air- 21 Country Manager X1 SPENN 2019-09-30 ways has been a turbulent one. Ms 22 Program Coordinator – Economic Security X1 Plan International 2019-09-27 Mathuka replaced Dick Murianki, who was moved back to head the 23 Technical Specialist: Comprehensive Sexuality Edu- X1 Plan International 2019-09-27 airline’s cargo unit “at his own re- cation quest.” 24 Emergency Response Manager X1 Plan International 2019-09-27 Alex Mbugua, the then CFO, 25 Business Development Coordinator X1 Plan International 2019-09-27 told the court in 2016 that Kenya Airways sacked him from the po- 26 IT Manager x1 Private 2019-09-27 sition, raising the alarm over ir- regular ticketing practices in some 27 Carpenter x1 ACCUCON LIMITED 2019-09-30 overseas stations such as London, 28 Data Entry Operator – New Business x1 Sanlam Life Insurance Zambia Limited 2019-09-24 and for recommending a review of KQ’s relationship with Dutch na- 29 BioMedical Engineering Technologists for MoH Hospi- x1 Tropical Health 2019-09-30 tals Programme Assistant tional carrier, KLM. Mr Mbugua had been awarded 30 Community Engagement and Mobilisation Manager x1 Marys Meals Zambia 2019-10-03 Sh144 million for wrongful ter- 31 Program Coordinator – Economic Security x1 Plan International 2019-09-27 mination, but the court reduced the payout gross salary for nine 32 Emergency Response Manager x1 Plan International 2019-09-27 months estimated at Sh27 million. 33 Administrative Officer x1 Overland Transport Management Limited 2019-09-30 The airline made a net loss of Sh8.5 billion in the half year ended 34 Nursery Teacher/Early Years Lead Teacher x1 Sentinel Kalumbila School 2019-10-06 June, more than double the net loss 35 Head Baker x1 Afronet Trading 2019-09-25 of Sh4 billion in a similar period a year earlier as costs rose faster than 36 Pension Consultant – Retention x1 Top Floor 2019-09-30 revenue. Sales in the six months period 37 Surveyor x1 Joe’s Earthworks 2019-09-30 rose to Sh58.5 billion from Sh52.1 billion, representing a 12.2 percent increase. The loss saw the com- HOW TO APPLY pany’s negative equity widen to DOWNLOAD THE RECRUITER KSM APP FROM GOOGLE PLAYSTORE FOR FULL JOB DESCRIPTION FOR THE ABOVE JOBS AND HAVE ACCESS TO MORE JOB VACANCIES. In the App, once Sh16.1 billion from Sh2.4 billion, downloaded, Kindly click on the APPLY BUTTON and Attach your CV to apply. underlining the airline’s capital EMPLOYERS crisis. Employers advertise your vacancies with the RECRUITER and the BUSINESS POST at competitive rates to [email protected]. Take advantage of free advertising up to 30th June, 2019 on THE RECRUITER KQ’s problems have been linked to a mix of increased competition, DISCLAIMER corruption, mismanagement and a All jobs submitted here are as advertised by the employer. KSM Management Consultants or BUSINESS POST is not responsible or liable for any damanges, misrepresentation, misposting or misadvertising of any job, content appearing in this paper whatsoever. Any previous debt binge that continues corrections and /or requests for deletion/ removal must be directed to the [email protected] to weigh on its balance sheet.

The right to do business PAGE 11 K10 The Business Sport Di María double helps ZAMBIA PLAYERS PSG beat Real Madrid his was not a night top? for galácticos, old or Madrid were also depleted, new. At a balmy Parc but still strong enough to line up Des Princes Paris with a sub-tier of the merely very TSaint-Germain simply overran expensive and celebrated, with Real Madrid, pulling apart the Gareth Bale, Hazard and Karim SHOW STRIPES hastily-stitched seams of Zinedi- Benzema in the forward line. ne Zidane’s team and producing This was a night when neither of surely the most coherent and these teams really seemed to need powerful performance of Thomas another industrial-scale superstar. Tuchel’s time in charge. Instead it was the vigour and It felt like a humiliation at times drive of the PSG midfield that – and by the end perhaps some- left the 13-time champions look- ABROADambian players da and Donashano Malama Striker Brian Mwila was Fontinhas in the Portuguese thing more, a Viking funeral for ing ragged, with Marco Verratti a abroad were in put in a full shift for Lidoda left out of the Rheindorf Campeonato de Portugal a team, an era, a way of trying to brilliantly spiky little playmaker, action over the Duvha Altach matchday squad in Prio. win. and Idrissa Gueye gleefully re- As the seconds ran out there lentless in his pressing and cov- weekend and put Augustine Mulenga was the 6-0 humiliation of St. In Poland, Winger Lubam- was even the unexpected sight of ering. Zin good shifts and recorded the only Zambian included Pölten. bo Musonda put in an the Paris full backs Juan Bernat PSG took charge from the start. mixed results. in the Orlando Pirates squad In Belgium, Fashion Saka- 88-minute shift for Śląsk and Thomas Meunier bearing Bernat produced one thrilling ear- The 2017 CAF young for their 2-1 win over Chip- la scored his third league Wrocław who were held to down on the Real goal, the mid- ly surge inside Dani Carvajal. It player of the year Patson pa United. Mulenga set up goal but his goal was not a goalless draw by Górnik field crumbling away like a sheet was from there the breakthrough Daka scored a brace and the first goal and put in a 75 enough as KV Oostende Zabrze. of millefeuille pastry, the defence would come. With 14 minutes set up a goal while Fashion minutes shift. suffered a 4-1 defeat at the In Russia, Evans Kangwa drowning in all that space. gone Bernat made the same run, Sakala and Jacob Mulenga Clatous Chota Chama was hands of Standard Liège. put in a full ninety minutes Bernat took the ball from Meu- this time feeding the ball into scored a goal each. involved in the build-up for Midfielder Emmanuel shift for Arsenal Tula who nier. Meunier took it back from Icardi, then taking a lovely little Augustine Mulenga and the first goal for Simba who Banda was an unused sub- was handed a 3-1 defeat by Bernat. Meunier might have flick into his path. The pull-back paused to drink in a most unex- found Ángel Di María. His finish Barbara Banda set up goals recorded a 2-1 win over stitute. giants FK Zenit St. Peters- pected moment in his own career, was hard and low, billowing the for their respective teams Mtibwa Sugar. In China, Jacob Mulen- burg. Youngsters Lameck but instead steered the ball into net from a tight angle. while Stophila Sunzu and Obbrey Chirwa and his ga was on target scoring Banda and Klings Kangwa the corner of the Real net with a A surge down the right from his team’s losing streak Azam Teammates suffered his seventh league goal of were unused substitutes. brusque, merciful haste to com- Gueye that teed up the second continued as they suffered a one nil defeat at the hands the season but it was not Spain, Zambia female plete a 3-0 win. goal, the ball fed into Di María, their third straight loss. of Triangle FC in a CAF enough as his Liaoning football sensation Barbara And make no mistake, Real who fizzed a wonderful left-foot- In South Africa, Lazarus Confederation Cup first leg Kaixin suffered a 2-1 defeat Banda set up Jade Boho for stunk the place out in Paris. This ed shot into the corner from the Kambole played the first 45 tie. to Changchun Yatai. the only goal of the game was the bones of the same team edge of the area. – The Guard- minutes for Kaizer Chiefs In Austria, Striker Patson In France, Chipolopolo as EDF Logroño played to that completed that unprece- ian in their one nil defeat at the Daka scored a brace and set defensive kingpin Stophila a 1-1 draw with Granadilla dented (in modern times) trio of Champions League wins just 16 hands of Polokwane City. up a goal as Redbull Salz- Sunzu put in a full shift for Tenerife. months ago. But they were dread- Salaluni Phiri played the burg run riot beating TSV FC Metz who suffered their In Sweden, Edward Chi- ful in the most profound sense; last few minutes on his re- Hartberg 7-2 in a week Aus- third defeat in a row losing lufya was a second-half dreadful in a way that seems to turn from injury. trian Bundesliga encounter. 2-0 away to Bordeaux. substitute for Djurgården IF ask other questions. Such as, Gamphani Lungu was an Enock Mwepu put in a full In Kazakhstan, On Thurs- who suffered a one-nil de- what is the point of this Real Ma- unused substitute for Su- ninety minutes shift. day Rachel Kundananji put feat to AIK. drid team? What is it trying to be? perSport United in their 3-3 Norwegian teenage sensa- in a full shift for BIIK Ka- In Wales, Lifumpa And when will it stop? draw with Cape Town City. tion Erling Haaland scored zygurt who held Anderlecht Mwandwe was a sec- By the end Luka Jovic, Eden Billy Mutale was left out of a hatrick while André Ra- to a 1-1 draw in a round of ond-half substitute for Hazard and Vinícius Júnior had the matchday squad. malho and Masaya Okuga- 16 UEFA Women’s Cham- Newtown AFC who man- all taken to the pitch. What do these disparate, talented players Former Chipolopolo wa chipped in with a goal pions League. aged one win over in a for Ángel Di María celebrates have in common? How do they fit scoring the first goal for coach Wedson Nyirenda each to complete the 7-2 In Portugal, Kenneth Cymru Premier League en- into a system? Are they anything Paris Saint-Germain in guided his PSL side Baroka emphatic win. Jodel Dossou Kalunga and his Benfica counter over Bala Town FC. more £200m worth of expensive- their Champions League FC to a 2-0 win over Black and Michael Huber scored Castelo Branco teammates -- Zamfoot ly assembled whim, a Premier win against Real Madrid. Leopards. Mwape Muson- the two goals for Hartberg. snatched a 2-1 away win at League star here, a Brazilian tyro Photograph: Benoît Tessier/ over there, a Balkan poacher on Reuters Africa’s 2022 World Cup qualifiers roundup total of 10 World knockout ties. Mauritius 2 – 0 (3 – 0 aggre- Cup group qualify- The winners from today join gate) ing matches were the quartet to advance into • Angola vs The Gam- played on Tues- the group phase where 40 bia 2 – 1 (3 – 1 aggregate) Aday across the continent. The countries will be divided into • Rwanda vs Sey- games were the second leg of 10 groups. The group stage chelles 7 – 0 (10 – 0 aggregate) the first round of qualifiers. matches will kick off in March • Sudan vs Chad 0 – 0 Before this round of fixtures, 2020. (3 – 1 aggregate) four teams had booked their All results from Tuesday’s fix- • Togo vs Comoros 2 slots in the group phase over tures: The results over two legs – 0 (3 – 1 aggregate) the weekend; They were: Libe- is in bracket • Guinea-Bissau vs ria, Ethiopia, Equatorial Guin- • Eswatini vs Djibouti Sao Tome e Principe 2 – 1 (3 – ea and Tanzania. 0 – 0 (1 – 2 aggregate) 1 aggregate) The quartet became the first • Malawi vs Botswana • Namibia vs Eritrea 2 nations through from the open- 1 – 0 (1 – 0 aggregate) – 0 (4 – 1 aggregate) ing knockout round, which pits • Zimbabwe vs Soma- (africanews.EN) RedBull Salzburg duo Enock Mwepu and Patson Daka among Zambia’s leading the 28 bottom-ranked countries lia 3 – 1 (3 – 2 aggregate) lights abroad. on the continent in two-legged • Mozambique vs The right to do business