ZPPA WARNS NON-COMPLIANT PROCURING ENTITIES

By Daily News Reporter

THE Zambia Public Procurement Authority (ZPPA) launched the use of the Electronic Government Procurement (e-GP) system to reduce corruption and malpractice associated with the public procurement process.

Since the introduction of the E-GP system Zambia Public Procurement Authority (ZPPA) has observed with great concern the low usage of the Electronic Government Procurement (e-GP) System by most procuring entities (PEs) that have been trained and added to the e-GP system.

And according to section 16(1) of the Public Procurement Act No. 8 of 2020, it provides for mandatory usage of the e-GP System by all procuring entities for procurement activities.

 

Speaking to Daily News in Lusaka, Acting ZPPA Director General Justin Matimuna noted that all procuring entities that have met the requirements for usage of the e-GP System and have been trained and added to the e-GP System, are required to conduct their procurement processes on the System.

And ZPPA has directed all controlling officers and heads of procurement units to fully implement the e-GP system in line with section 16 of public procurement Act.

“We are monitoring the usage of the system by procuring entities and sanctions will be administered to those entities who will be found wanting in accordance with section 105(1) of the procurement Act,” Matimuna said.

However, most PEs that have been trained and added to the e-GP System have not been utilizing the system in their procurement activities contrary to section 16 of the Public Procurement Act.

In addition ZPPA in the second quarter of 2024 a total of 5,383 tenders from 414 procuring entities were published on the e-GP system and at the end of second quarter ZPPA registered 1,315 suppliers that brings the total of 80,403 suppliers on the system.

And failure to comply with any of the requirements of the Public Procurement Act No. 8 of 2020 is an offence in line with section 105 (2) (g) and that any person convicted of an offence under the said section is liable to the applicable administrative and legal sanctions.

The e-GP system is the use of Information and Communications Technology (ICT) in the procurement of goods, works, and consultancy and non-consultancy services in the public sector.

The aim of the e-GP system is to provide an electronic public procurement platform supporting end to end procurement processes and good governance in financial expenditure in public procurement.

Further the use of the e-GP enhances transparency, obtain value for money and achieve economy and efficiency. This means that all public institutions will be engaging suppliers in the acquisition of goods, works, consulting and non-consulting services required by the public sector on this internet based platform.

 

 

 

 

African Development Bank invests $20 million in infrastructure fund to catalyze continental development

Africa's infrastructure sector remains a significant investment opportunity, driven by substantial demand deficits and a scarcity of capital

 The African Development Bank (www.AfDB.org) has signed a $20 million equity investment in the African Infrastructure Investment Fund 4 (AIIF4). The deal, signed on 31 July 2024, reinforces the Bank’s commitment to fostering private sector development and boosting infrastructure across the continent.

The investment, approved by the Bank Group's Board of Directors on 19 June 2024, will be financed from the Bank's ordinary capital resources designated for private sector operations.

Africa's infrastructure sector remains a significant investment opportunity, driven by substantial demand deficits and a scarcity of capital. With rapid urbanization and increasing local purchasing power, the continent requires between $130 and $170 billion annually in infrastructure spending. However, there's currently a substantial yearly financing gap of $68 to $108 billion.

AIIF4, with a 13-year term and a 5-year investment period, has completed its first closing at circa $230 million, attracting international investors. To date, the Fund has raised more than the $500 million target, with the final close expected to be concluded in Q3 2024.

The Fund is projected to deliver significant development outcomes, particularly in private sector growth and household income improvement. The Bank assesses the likelihood of achieving these outcomes on time as "High." 

The investment also complements the Bank’s ‘High 5’ operational priorities, along with its Ten-Year Strategy (2024-2033) relating to accelerating and scaling up its operations. Additionally, the Fund pipeline aligns with the Private Sector Development Strategy (2021-2025), the Climate Change and Green Growth Framework, and the Strategy for Addressing Fragility and Building Resilience (2022-2026).

"By providing this scarce private equity investment to AIIM to bridge the infrastructure financing gap in Africa, the Bank is reinforcing its commitment and support to developing infrastructure in Africa to private sector participation. Therefore, our confidence in AIIM as a fund manager is renewed and strong, given its proven expertise and track record in driving impactful investments," said Mike Salawou, Director for Infrastructure, Cities and Urban Development at the African Development Bank.

The African Infrastructure Investment Managers have transacted an initial portfolio and identified a robust pipeline of investment opportunities in renewable energy, digital infrastructure, and ports and logistics assets in South Africa, Kenya, and Morocco. They are also actively screening deals in Egypt, Côte d’Ivoire and Senegal, among others.

The AIIF4 investment underscores the increasing role of private equity in addressing Africa's infrastructure needs and highlights the continent's potential for sustainable economic growth.

 

 

 

 BRRA SHARES ITS IMPORTANCE  

By Daily News Reporter

The Business Regulatory Review Agency (BRRA) Executive Director Mrs. Sharon Sichilongo has highlighted the importance of Business Regulatory Review Agency which is a statutory body under the Ministry of Commerce, Trade and Industry established in accordance with the Business Regulatory Act No. 3 of 2014.

Speaking to Daily News Reporter at a just ended 96^th Agricultural and Commercial Cooperative Society of Zambia under the theme “Creating a Competitive Future," Mrs. Sharon Sichilongo highlighted the importance of private sector collaboration in farming, industry and commerce.

She further stated that the mandate of BRRA is to ensure an efficient, cost-effective and accessible business licensing system.

To fulfil its mandate, the Agency reviews and approves proposed policies and laws that affect business activity to ensure they are legitimate and serve the intended regulatory purpose as well as coordinates development and implementation of appropriate Government-to-Business interventions in order to reduce the regulatory burden on business.

She also added that the importance of the portal as a means to gather input and feedback from the public, with a particular emphasis on the private sector.

The Notice and Comment portal serves as a platform for businesses, including Business Associations, to report on regulatory frameworks that may be burdensome to them or have been introduced without following the due process outlined in the Business Regulatory Act No. 3 of 2014.

“This initiative aims to ensure that the Agency remains vigilant to regulations impacting business activities and that proper procedures are followed in formulation of business regulations,” Sichilongo said.

Mrs. Sichilongo also emphasized the agency's commitment to timely reviewing feedback from the private sector and encouraged businesses to actively use the online portal to provide their input.

BRRA established the Notice and Comment portal to allow the private sector to actively participate in the formulation and implementation of regulations under various legislations.

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 ZCCM-IH PAYS DIVIDEND TO MOFNP

By Daily News Reporter

ZCCM Investments Holdings Plc (ZCCM-IH) has delivered a K41.6 million dividend cheque to the Ministry of Finance and National Planning, for the 2023 financial year. The Ministry holds a 17.4% stake ZCCM-IH on behalf of the Zambian government.   

Speaking during Cheque presentation to the Ministry of Finance and National planning in Lusaka, ZCCM-IH Chief Executive Officer, Dr Ndoba J.Vibetti stated that ZCCM-IH shareholders approved a total of K243 million for the 2023 and out of this k243 million, K146 million went to the IDC, K36.4 million to NAPSA, K41.6m to MoFNP and the balance of K18.3 million to minority shareholders who hold a 7.4% stake in ZCCM-IH. This follows a profit of K4.84 billion recorded at company level for the 2023. 

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He added that for almost a decade, ZCCM-IH has been consistent in paying dividends, and shareholders have received in total more than K1.6 billion.

And Minister of Finance Dr Situmbeko Musokotwane has commended ZCCM-IH for their effort and hard work in keeping the Company on a profitable path.

“We hope to see sustained growth in the Company and much bigger dividends to come in the future considering the bright prospects in the industry. Moving forward, we are hopeful to see ZCCM-IH’s increased participation in the mining sector in other strategic and critical minerals.” Musokotwane said.

He further urged State-Owned Enterprises that are facing profitability challenges to emulate the performance of ZCCM-IH by being more creative and working hard at turning around their institutions to sustained viability and profitability.

Government is commitment to continue providing a conducive environment for better performance of State-Owned Enterprises, through right policies.

For the past ten (10) years the ministry of finance has received K283 million from the Group.He added that for almost a decade, ZCCM-IH has been consistent in paying dividends, and shareholders have received in total more than K1.6 billion.

And Minister of Finance Dr Situmbeko Musokotwane has commended ZCCM-IH for their effort and hard work in keeping the Company on a profitable path.

“We hope to see sustained growth in the Company and much bigger dividends to come in the future considering the bright prospects in the industry. Moving forward, we are hopeful to see ZCCM-IH’s increased participation in the mining sector in other strategic and critical minerals.” Musokotwane said.

He further urged State-Owned Enterprises that are facing profitability challenges to emulate the performance of ZCCM-IH by being more creative and working hard at turning around their institutions to sustained viability and profitability.

Government is commitment to continue providing a conducive environment for better performance of State-Owned Enterprises, through right policies.

For the past ten (10) years the ministry of finance has received K283 million from the Group.

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 ADF GIVES ZAMBIA LOAN OF $13.2MILLION

By Daily News Reporter

More than 460,000 people will soon have access to improved water and sanitation due to a loan of $13.2 million from the African Development Fund

The project is being supported by the European Union, the Bank Group’s strategic partner, with a grant of $6.05 million through their Nexus Energy and Water Programme for Zambia

 The Board of Directors of the African Development Fund granted a loan of $13.2 million to Zambia in Abidjan on 17 July 2024 to implement innovative measures and improve access to drinking water, sanitation and hygiene for 460,000 people in Kabwe and Bauleni. The project also aims to strengthen the resilience of the beneficiary populations to the effects of climate change.

In addition to the funding from the African Development Bank Group’s concessional loans window, the project is being supported by the European Union, the Bank Group’s strategic partner, with a grant of $6.05 million through their Nexus Energy and Water Programme for Zambia, a transformative initiative under the European Union's Global Gateway strategy.

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“The project aims to improve access to better-quality water and sanitation services in the town of Kabwe (in central Zambia) and Bauleni (a district of Lusaka city) and increase the operational and financial efficiency of water and sanitation providers in Lukanga (Centre) and the capital, Lusaka,” explained Raubil Durowoju, the head of the African Development Bank Group’s Country Office in Zambia.

Among other things, the project plans to rehabilitate the Mulungushi water purification plant in Kabwe (abstraction of water from the river, pipework for untreated water, replacement of obsolete treatment and pumping equipment) to relaunch production of 37,500 cubic meters of drinking water per day. It also plans to improve water transport and distribution pipe networks, with an extension of over 70 km, and to build and equip five boreholes in the catchment areas of Kalulu (in the south-west) and Mukobeko (Centre) in Kabwe town. The project will use renewable energy technologies and introduce innovative measures, such as smart meters, to reduce operating costs through the installation of energy efficiency equipment in the water production and supply system.

It will collaborate with partners such as the United Nations Children’s Fund (UNICEF) to strengthen the provision of water, sanitation and hygiene services and also raise awareness around integrated nutrition and hygiene services, climate resilience, waste and water management among at least 10,000 people.

The African Development Bank’s long history in the water sector in Zambia makes the institution a unique partner in supporting the Zambian government’s implementation of the project. The Bank has supported Zambia’s water sector since the late 1970s. Its first intervention, in 1979, was a water and sanitation project in five provincial centres that aimed to improve services in the towns of Choma, Kalomo, Livingstone and Monze in the south of the country. Since then, the Bank has supported a total of 14 projects to improve the long-term security of water supply and sanitation services in Zambia. (Copyrights Reserved)

 ZCCM Investment Holding records a profit of over 4.8 billion Kwacha in 2023.

By Daily News Reporter

This represents a 14 percent increase recorded from 2022 which was at 4.26 billion Kwacha.

ZCCM IH Chief Executive Officer Ndoba Vibetti stated that the company's total assets increased by 20 percent from 48 billion Kwacha to 58.4 billion kwacha driven by the increased value of investments in associates and other current assets.

This marks the 9th consecutive year that ZCCM-IH has paid a dividend to the IDC. Last year, a record dividend of K436 million was paid for the financial year 2021 and 2022. Since 2015, ZCCM-IH has paid approximately K990 million to the IDC.

Under the Zambia Gold Company has commenced remedial works at the Kasenseli gold mine in Mwinilunga, with operations set to begin in the third quarter of this year; Maamba Energy Limited has secured financing for the construction of an additional 300 MW power plant within two years, along with the lithium prospecting licenses it has obtained.

In 2023, ZCCM-IH's profit increased by 14% to K4.84 billion; total assets up by 20% to K58.46 billion.

ZCCM-IH's share price surged by 52.4% on the Lusaka Securities Exchange, from K42 to K64 per share, boosting market capitalization from K6.3 billion to K9.6 billion.

Meanwhile IDC Chief Executive Officer CORNWELL MULEYA praised ZCCM-IH for recording a huge profit which the ZCCM-IH has performed through investment confidence.

And following the ZCCM-IH’s commitment it has also paid out the dividend cheque worth K36 million to NAPSA,

And NAPSA Director General, Mr. Muyangwa Muyangwa, stated that ZCCM-IH has maintained its dividend Consistency Last year it recorded dividend of K108.4million was paid for the financial year 2021 and 2022. Since 2015, ZCCM-IH has paid approximately K263 million to NAPSA.

With a portfolio of over 20 companies, ZCCM-IH's strategic focus is to grow the mining and energy investments and revamp ailing entities to profitability. ZCCM-IH will continue to play its role as a company discharged with the mandate to represent and safeguard Government’s interest in all the big existing mines in Zambia.

So far ZCCM-IH's share price on the LuSE appreciated by 52.4%, from K42 to K64 per share. This share price increase translates into increased value of NAPSA’s stake by 52.4%, a positive thing for NAPSA and the Zambian pensioners.

 

CHINA AND ZAMBIA CELEBRATES LIBERATION ARMY DAY

By Daily News Reporter

Chinese Embassy in Zambia Holds Reception Celebrating the 97th Anniversary of the Founding of the Chinese People's Liberation Army

Wang Sheng, the Chargé d'Affaires of the Chinese Embassy in Zambia, delivered a speech in which he reviewed the glorious history of the People's Liberation Army

On July 24th, the Chinese Embassy in Zambia held a reception, celebrating the 97th anniversary of the founding of the Chinese People's Liberation Army. Over 200 guests attended the event, including Zambia Air Force Commander Lt. Gen. Nyoni, Minister of Lusaka Province Hon. Sheal Mulyata, senior officials from the Ministry of Defense, the Zambian three military services and the police service, members of the diplomatic corps in Zambia, representatives of Chinese enterprises and Chinese community in Zambia.

Wang Sheng, the Chargé d'Affaires of the Chinese Embassy in Zambia, stated that this is a glorious history of the People's Liberation Army under the leadership of the Communist Party of China. He emphasized that the Chinese military has always been a strong force for world peace, highlighted the Three Global Initiatives, put forward by President Xi Jinping, and provided feasible pathways and solid support for building a community with a shared future for mankind.

He reaffirmed that China and Zambia will work together to implement the important consensus reached by the two heads of state and continue to be partners in promoting a high-level community with shared future on their respective path of modernization.

Jiang Lei, the Defense Attaché of the Chinese Embassy in Zambia, said that the Chinese military will continue to fulfill its solemn commitment to safeguarding peace, strengthen cooperation with Zambia in areas such as personnel training, military medicine, and equipment technology, and steadly advance the relationship between the two armed forces to new heights.