Changes to mining tax set to be approved by cabinet on April 20
Zambia will return to a 30 percent corporate-income tax for mining companies and amend a royalty system that operators said would lead them to close pits, an official said. The cabinet of Africa’s second-biggest copper producer agreed to royalties of 9 percent for both underground and open-pit operations, said the official, who asked not to be identified because the matter is private. Parliament will review the amendments when it resumes in June. (Read more)
$280m pledged for rehabilitation of Kariba Dam
$280 million has been pledged to rehabilitate Kariba dam by various entities in form of grants and loans broken down as follows:
It is no secret that the Government has made revamping and expanding the road network in Zambia a huge priority. They have staked $5.8 billion on the flagship ‘Link 8,000’ project which is set to improve and expand a road infrastructure network which has been lacking for decades. Two types of companies are winning; the contractors who do the actual construction and consultants who do the design, feasibility studies and supervision of the works.
As of the July 2014 update from the Road Development Agency (RDA), there were 21 on-going works contracts under phase one of the Link 8,000 project with a combined awarded contract value of approximately K8.15 billion ($1.35 billion) to various companies broken down like this:
This time last year, there were many whispers and unconfirmed reports of the government having financial issues – which we later found out they had. Expenditure falling under the category ‘Grants and Other Payments’ was 68.9 percent above budget at K5.4bn! This in combination with unplanned civil service salary increments in September 2013 led to an overall budget deficit of K8.2bn (6.8 percent of GDP) above the projection of K5.4bn.
Fast forward 12 months, the Ministry of Finance released data of the performance of the K42.7bn National Budget in the first half of this year:
[Revenue & Grants of K15.1bn – Expenditure of K18.2bn = Deficit of K3.1bn (2.1 percent of GDP)]
The Government raised revenues and received grants amounting to K15.1bn:
Last year, Zambia put its hat in the ring to bid for the right to host the 2019 edition of the Africa Cup of Nations (AFCON). Last week, Confederation of African Football (CAF) inspectors were in the country to assess Zambia’s facilities. The decision as to which country will host the 2019 as well as the 2021 edition of the competition will be announced next month at a meeting of the CAF executive in Cairo. So what happens IF they choose Zambia’s bid?
*THE ESTIMATES BELOW ARE CONSERVATIVE AND BY NO MEANS EXHAUSTIVE – THEY ARE MEANT TO GIVE GENERAL PICTURE OF WHAT HOSTING AFCON 2019 COULD BE LIKE FOR ZAMBIA.*
$10m Twin Palm shopping mall open for business
The Twin Palm shopping mall opened its gates to customers last week. It cost $10m to develop over a period of two years by PMTP Zambia and will be managed by Knight Frank Zambia. The mall has 26 stores with a combined workforce of 500 and boasts Shoprite as its anchor tenant. The shopping mall is adequately positioned to cater to residents of Ibex Hill, Avondale, Salama Park and Chainda.
CAF inspectors in town to assess Zambia’s 2019 AFCON bid
Inspectors from the Confederation of African Football (CAF) are in town from the 9th to the 15th of August in order to assess Zambia’s bid to host the African Cup of Nations (AFCON) in 2019. The inspectors will be visiting various stadia, training facilities and accommodations in Lusaka, Ndola, Kitwe, Chingola, Chililabombwe and Livingstone. Zambia is one of five bidders looking to bring home the 2019 AFCON - Guinea, Ivory Coast, Algeria and Cameroon (DRC withdrew their bid). The CAF executive will decide on the hosts for 2019 as well as 2021 in September 2014 at a meeting in Cairo.
African Development Bank (AFDB) president pays Zambia a visit
African Development Bank (AFDB) president Donald Kaberuka was in Zambia last week to inspect the ongoing works on a few of the diverse projects that the bank has had a role in funding. The project sectors rang from agriculture to infrastructure.
TAZARA receives $80m cash injection
The Governments of Zambia and Tanzania (the equal owners of TAZARA), are set to inject $80m into the operations of TAZARA over the next 12 months. 11.5% of the amount will immediately be allocated toward paying two months of employee salary arrears as well as some working capital.
Copperbelt Energy Corporation (CEC) released their FY 2013 results which incoporated results from their Nigeria operations for the first time. Net profit came in at K457.6m, up 318.6% from the previous year. Revenue came in at K1.71bn, up 25.6% from the previous year.
Revenues were driven by K253m from CEC Africa (the company's international investment vehicle), an 80% increase in telecoms revenue and an 8% increase in electricity revenue. This would have been an impressive set of results except for the fact that CEC was headed for a FY 2013 loss of K258m had it not been for a ONE-OFF K716m gain on the bargain purchase of Abuja Electricity Distribution Company (AEDC).
Trying to decipher this puzzle that is Zambia by using a variety of publicly available data (structured and unstructured) in conjunction with my own skill/experience. * * *