Zambia Inc- November 2021 Edition

Contents 8

PRESIDENT HH COMMITTED TO TRANSFORMING THE ECONOMY

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SUPPLY & LOGISTICS - CLEVER MPOHA - SAVENDA CEO

14

TANZANIA RACES TO DEVELOP NATURAL GAS RESERVES

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TRANSITIONING TO RENEWABLE SOURCES OF ENERGY

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START UP VIRGIN GREEN ENERGY FIGHTING DEFORESTATION THROUGH SMART CLIMATE INNOVATIONS

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ZAMBIAN INOVATES SMART STOVE

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ROUNDUP: ZAMBIA SET TO MAKE SCIENCE, TECHNOLOGY FOCUS FOR ECONOMIC TRANSFORMATION

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AFRICANACITY AND ENTREPRENUERSHIP- ZDA INKS MOU WITH ABSA

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ZANANCO PLC THROWS A K5 MILLION LIFE – LINE TO HEALTHCARE IN PANDEMIC TIMES

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THE CURRENT STATE OF ARTISANAL AND SMALL-SCALE MINING IN ZAMBIA

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KANSANSHI STARTS JEWELLERY PROJECT FOR GIRLS

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TWO THINK-TANKS AGREE TO BOOST ECONOMIC RECOVERY

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THE PHARMACEUTICAL MARKET IN AFRICA

DESCRIPTION OF CROPPING SYSTEMS, CLIMATE, AND SOILS IN ZAMBIA

Editors Agatha Nayame Davy Manda Graphics Mandizo

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SEKA SHINES IN SOUTH LUANGWA

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E-COMMERCE TRANSFORMING HOSPITALITY INDUSTRY POST COVID - HOTTELLERNET 5 - Zambia Inc - November 2021

Published by Zambia Inc

I N S P I R AT I O N A L

President HH Committed to Transforming the

ECONOMY

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Hakainde Hichilema won with a landslide victory in a fiercely contested election in Zambia= on 12th August 2021.

In his inauguration speech he promised a cheering crowd to restore prosperity, stability and jobs to Africa’s secondlargest copper producer, which is mired in huge debt and recession owing to depressed commodity prices.

“It’s a new dawn. Time has come for all

Zambians to be truly free,” he said.

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and Anglo-Swiss Glencore. In May 2019, the government accused Vendanta of failing to honour license conditions and seized the company’s Konkola Copper Mines.

A major foreign exchange earner, analysts say the government must act quickly to reach agreements with foreign companies and ramp up the output of mineral exports, especially with copper prices at a ten-year high.

Hichilema said: “This victory does not belong to me, but to the men and women of Zambia. You came out in large numbers, with great energy and passion, and you sent a clear and resounding message that has reverberated around the world. It is time for change.”

The decisive victory looks set to buoy rattled investor confidence amid a hostile regulatory environment in the mining sector, a Eurobond default in December and over $12bn in external debt. The new president will have to move quickly to agree a bailout with the IMF and revamp talks with creditors to stop further damage to the economy, experts say.

“To stop the country from sinking deeper into financial despair, the president-elect will have to use some of that hard-earned political capital to reset relations with China, Zambia’s most important bilateral creditor and one of its largest trading partners. It’s not going to be easy, but he can’t fix the economy without changing the terms of engagement with creditors in Beijing,”

he says.

Hichilema had promised to ease the regulatory environment and bring back foreign investment to the mines in the run up to the election, though analysts say it is too early to tell whether his tenure will be a continuation of Lungu’s legacy of aggressive resource nationalism.

The country is locked in dispute with several mining companies including India-based Vendanta

Speaking when he officially opened the first session of the 13th National Assembly , President Hichilema said his government is focused on improving the livelihood of Zambians by ensuring an accelerated economic recovery plan that will create a conducive environment for Zambia to become a prosperous middle income country.

He explained that his government will implement policies that will promote economic growth especially in job rich sectors such as Agriculture, as this is critical in creating employment opportunities and contributing to the prosperity of the nation.

It is only through agricultural transformation that we will end hunger and improve nutrition while accelerating economic growth,

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he said.

The President further stated that harnessing the opportunities in the Mining sector will also contribute to the revival of the economy and can increase earnings from exports of value added products.

Our administration is determined to ensure increased local participation and ownership in the sector, more jobs being created, as well as increased investments in the Mining sector, he said.

President Hichilema added that the Tourism sector is also a key component that will be the driving force behind reviving the country’s economy by attracting international tourists while promoting domestic tourism that will enhance the resilience of the sector.

We will put in place a robust tourism marketing strategy that will package a diversified range of tourism products such as traditional ceremonies, visual arts, culture and heritage sites, he said.

The President has therefore urged all citizens to play their role in helping revive the economy and creating a better Zambia for all and many generations to come.

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Supply and Logistics

CLEVER MPOHA SAVENDA CEO

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When most people go to a department store or supermarket and select a product off the shelf, they take for granted that the item is simply there ready and waiting for them to purchase.

But it doesn’t “just happen.” All items on the shelves for consumers arrived at that location as a result of the determined effort of a complex chain of actors who are

working together in a complicated arrangement of coordinated cooperation. That includes growers, producers, manufacturers, packagers, transportation providers, managers, computer technicians, communications specialists and more.

All of these parties must engage seamlessly to ensure that “Product A” gets to “Location B” in a timely manner and at a cost that is affordable to the end-user.

Thus, the central processes of supply management, supply chains and logistics play a critical role in the lives of people to a greater degree than most comprehend.

Now consider that some locations have supply and logistics challenges that are far greater than other

locations. The nation of Zambia provides a vivid example.

Zambia is a landlocked nation in south-central SubSaharan Africa. With no ocean ports, products that come from outside of Africa must be transported over thousands of miles of land and across many areas where high-quality primary, secondary and tertiary road networks simply don’t exist.

Add to this the high costs for fuel, a shortage of skilled labor for jobs like truck drivers and containment specialists, and the scope of the problem comes into greater focus.

It’s these types of challenges that one African entrepreneur built a business around. Zambianborn businessman Clever Mpoha launched

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SAVENDA Management Services in 1997. What started as a small company trading in cell phones soon blossomed into a thriving, multifaceted and highly diversified conglomerate.

Much of that success was resulted from the fact that Mpoha early on recognized the fundamental importance of commodity supply management. He saw vividly how it played a central role in the lives of millions of ordinary people.

Zambia was in dire need of a better logistical system to facility the flow of commerce among central African nations.

Clever Mpoha instinctively understood that any person who could bring solutions to the supply management challenges of Zambia would be a person a lot of other entities would be eager We compensate well if he could deliver solid solutions.

Mpoha set out to do just that. He got out a fresh sheet of paper and analyzed the situation. He then began drawing up lists of practical problem-solving strategies. One such solution was finding reliable partners to form relationships with and cobble together new approaches for moving “Commodity A” to “Destination B” in a time-efficient manner.

The first obvious focus for Mpoha and SAVENDA was Zambia’s dominant industry -– copper mining. Mpoha approached mining firms and offered workable fixes to the numerous and complicated

problems they were having in moving their raw materials to their destinations.

information on how you will execute your plan to serve your clients.”

But the approach of Clever Mpoha was also multi-dimensional. For example, he noted that copper companies not only needed to move their products out, but they also needed to bring products in to support their operations. That included basic things like food, fuel, vehicles and medical supplies.

Cleve Mpoha said the key to the success of the SAVENDA Group was an ability to “constantly look ahead” to short-term, mediumterm and long-term sales forecasts along with implementing strategic planning to understand how these projections would impact the flow of the supply chain in the future.

The technical term that business entities use for obtaining what they need “the procurement process.”

SAVENDA Group increasingly became the go-to procurement solutions provider for international businesses operating in Zambia.

Mpoha and his team found it beneficial to establish strong working relationships with a large and highly diverse network of suppliers. That ensured that an alternative was always available if one supplier happened to fail in any given situation.

It is significant to note, however, that as the SAVENDA Group expanded into a larger organization, the issue of supply management became a key internal issue for the continued success of the business.

Clever Mpoha said: “To manage a business, you need a healthy and functioning supply chain. It is the lifeblood of any company’s day to day operation.

To put it simply, a supply chain is how you will organize people, activities, information and resources as you serve your customers.”

He added: “This is cardinal when the business is growing because challenges will arise in terms of shortages in human resources, funds or

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Yet another insight Mpoha offers is in handling large contracts versus small contracts. The temptation for many managers is to forego the small contracts and concentrate on the “big money” of major customers. That’s a mistake, Mpoha cautions.

He said: “We realized that we also needed the smaller contracts for the cash flow that could easily be accessible because of early payments. This gave us good cash flow, even when the business was growing rapidly.”

The internal and external expertise of SAVENDA Group with supply management and logistics issues has made it the premier firm of its kind in Africa. It has helped make Zambia a transportation hub for 16

surrounding African nations.

It’s why major companies, such as Huawei, China’s largest telecoms provider, came to SAVENDA first when it needed a reliable distribution partner for its products in Zambia.

Mpoha said Zambia still faces enormous challenges in developing efficient supply chains throughout the country, especially for healthcare, agricultural and the retail sector. Furthermore, the COVID-19 pandemic uncovered numerous existing deficiencies in the Zambian distribution infrastructure in terms of healthcare delivery.

Solving those kinds of problems is what SAVENDA continues to do every day.

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ENERGY

Tanzania races to develop natural gas reserves

By Ronald Lwere Kato

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Tanzania is accelerating efforts to join the prestigious Liquefied Natural Gas (LNG) exporters club. After negotiations with oil companies stalled in 2019, President Samia Suluhu Hassan has restarted them. She wants talks to conclude this year and development to start in 2023.

The East African country is desperate to unlock as much as $30bn in foreign investment but also to escape the energy transition, or the rush to decarbonize that could render its enormous gas reserves useless.

Cabo Delgado province to force Total and other oil majors to abandon their gas projects.

Abdulsamad Abdulrahim, the chair of the Tanzania Association of Oil and Gas Service Providers (ATOGS) joins us from Dar es Salaam to talk more about the new momentum in the country’s gas ambitions.

Egypt develops more gas infrastructure Unlike Tanzania which is an aspiring gas producer, Egypt is a more experienced one.

Tanzania has an estimated 57 trillion cubic feet of gas reserves but disagreements with oil corporations over production sharing disputes have kept them untapped.

The country has announced that construction of a new gas pipeline in its western desert has begun.

The facility is expected to pump 15 million cubic feet of gas per day.

The lull allowed neighboring Mozambique to press ahead, only for an Islamist insurgency in its northern

Last year, the north African country witnessed eight new discoveries of natural gas, two in the

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Mediterranean and six in the western desert, adding an estimated 600 billion cubic feet of new reserves.

TRANSITIONING TO RENEWABLE SOURCES OF ENERGY

These developments might be crucial on the long run, as the authorities decided on hiking fuel prices for the third time this year.

According to EFG Hermes, higher fuel prices will not have a large impact on headline inflation, given a 2.4% average increase in prices and a continued stabilisation of diesel prices.

Togo’s urban farmers embrace greenhouses.

The lack of vast expanses of land for agriculture and the threat of pests and diseases is pushing farmers in Togo’s cities to turn to greenhouses to grow vegetables.

This way, crops are protected from the vagaries of nature through carefully managed conditions that support plant life.

Is this the future of urban farming in the West African country?

“A transition to clean energy is about making an investment in our future.” – Gloria Reuben

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Farmers must embrace smart use of energy because it is the major factor in determining aspects causing nature’s catastrophic phenomenons. The reliance on charcoal and other fossil fuels is not reliable. We, therefore need to transition to other alternative sources of energy that are more renewable and more reliable.

A renewable resource of energy is one that can be used repeatedly and does not run out because it is naturally replaced. A renewable resource, essentially, has an endless supply such as solar energy, wind energy, and geothermal pressure.

Renewable energy is no longer a niche fuel. Wind and other clean, renewable energy will help end our reliance on fossil fuels and combat the severe threat that climate change poses to humans and wildlife alike.

Energy is an inevitable requirement where we want farm development to take place. As farmers, we need to start transitioning from the use of fossil fuels like petrol and diesel and embracing energy sources that help us replenish nature.

The most popular renewable energy sources in Zambia currently are Solar energy, Wind energy, Biomass/Biogas energy and Hydro energy. Due to increased reliance on hydropower, it has become very expensive and no longer reliable due to lots of people connected to the grid and the dwindling water levels.

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Our emphasis to Farmer now is to place reliance on Solar energy, Wind energy and Biogas energy.

Apart from the initial costs, solar energy is almost free and if we’ll installed with the rightful inverter you would meet all the needs that require power at the farm.

Solar energy is any type of energy generated by the sun. Solar energy can be harnessed directly or indirectly for human use as electricity. The use if solar energy is now the most promoted because it reduces Air Pollution, it reduces water Usage, it reduces Dependence on Nonrenewable Energy Sources, improves Humanity’s Health In the Longrun and helps fight Climate Change.

Biogas is the mixture of gases produced by the breakdown of organic matter in the absence of oxygen, primarily consisting of methane and carbon dioxide. Biogas can be produced from raw materials such as agricultural waste, manure, plant material, sewage, green waste or food waste.

Biogas is Eco-Friendly, a clean source of energy, it’s generation reduces soil and water pollution but produces Organic Fertilizer. It is a simple and Low-Cost Technology that encourages a Circular Economy.

Wind power or wind energy is the use of wind to provide mechanical power through wind turbines to turn electric generators for electrical power.

Wind power is a popular sustainable, renewable source of power that has a much smaller impact on the environment compared to burning fossil fuels.

As farmers we need to embrace these firms of alternative sources of energy because they are sustainable.

Be smart and transition.

Zunga Farms - We Farm You Eat!

“

As farmers we need to embrace these firms of alternative sources of energy because they are sustainable.

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START UP VIRGIN GREEN ENERGY FIGHTING DEFORESTATION THROUGH SMART CLIMATE INNOVATIONS

Virgin Green Energy, a start up in Kapiri Mposhi has ventured into smart climate and innovation to combat the effects of deforestation.

Lazarous Siwelwa CEO of the business explains to Zambia Inc, how the company is creating cost effective clean energy for many households, businesses and industries across the country using a blend of biomass, agro waste and starch to create charcoal briquettes.

Finding ways to effectively monitor manage and support sustainable production and trade in solid fuel, especially Charcoal is critical for

countries across Africa today.

In Zambia, the government with the support of the Forest department is exploring ways to help recognize and organize charcoal producers to more sustainable cleaner production methods and management of natural resources.

mostly operate illegally as individuals and therefore they fear recognition by government and local community members.

Alternative cleaner methods of charcoal production provide an opportunity for capacity building, as it is sustainable and cost effective.

This is targeted at improving the product value and while saving the forest traders.

About 45,500 people are in Charcoal burning- related activities, charcoal and firewood is the main cooking energy source for over 90percent rural homes and 40 percent of the urban households in Zambia.

This work supports the development of Zambia’s new national Charcoal regulation – in line with the Forest Act of 2015 and is providing a pilot demonstration of practical steps to improve livelihoods.

The work will also help to guarantee the supply of this critical source clean energy - so vital for income and job creations in rural and Urban Zambia - without affecting the environment.

At present, Charcoal traders

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Charcoal is one of the most important sources of energy for the majority as we record a growing population; demand for Charcoal is expected to be driven by increased settlements, industrialization and high rates of hydroelectricity, In Zambia for instance, it is easier, convenient and cheaper to find entrepreneurs who are into the sale of barbecue, fried or roasted

Irish potatoes, the sale of cooked or roasted corns, cassava and street food entrepreneurs who make use of Charcoal as a burning fuel.

Forest energy-producing source, is used principally in the form of firewood and charcoal.

manganese and through selected selling points in Kapiri Mposhi and lusaka these vendors sell them to the end users and soon we shall expand our production to Kitwe with a target to reach out Copper belt demand.

Currently, Zambian forests provides about over 50% of Zambia’s consumed energy source in form of firewood and Charcoal.

Although Zambia is an Agricultural Country with vast amounts of forests and trees at present majority of its agricultural waste is not being fully utilized for the production of energy.

Briquettes have a high bulk density compared to ordinary charcoal or fire wood and loose bio mass because of their density and low Moisture content, the briquettes give a longer burning time which translates to cost saving for customers.

Our failure to transform Zambia’s natural Agricultural wastes into energy has resulted in an increased exploitation of Zambia’s primary forests.

Our initiative to start producing and to scale up distribution of Charcoal Briquettes [compressed carbonized agro waste] to address this situation with an Eco-Friendly mode of production.

The charcoal briquettes that we make are made from biodegradable waste and dry agricultural waste from farmers.

Simple technologies have already been implemented to make it less expensive to produce charcoal briquette making the charcoal briquettes affordable to the local population.

The charcoal briquettes are sold to manganese mines that process

As Virgin Green renewable energy limited we operate this initiative in Kapiri Mposhi central province, we are expectant that at least over 300 tonnes of briquettes are going to be produced during 2021 which is our first year in operation, this equates to an average of 1 tone of briquettes per day.

Charcoal Briquettes is carbonized and compacted agro waste using a blend of preferred methods such as cassava flour, corn, lime or sweet potato starch.

Briquettes burn much longer, smokeless, sparkles, cheaper and give off intense, steady heat they are ideal for home and business kitchens, poultry houses for brooding purposes, industries that use boilers and furnaces or any native delicacy that calls for energy.

A handful of briquettes would cost less than a big heap of ordinary charcoal since they last longer, give more intense heat.

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Our business goal as a Charcoal Briquette production and distribution company is to become the number one choice for businesses and households in Zambia, we have a vision of expanding our network on international market for exports of the charcoal briquettes. As a business, we are willing to go extra mile to invest in changing the narrative through alternative innovations to combat deforestation.

TECH

Katongo when he visited the Minister

Zambian innovates smart stove

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A young Zambian innovator Katongo Musonda of ZEDNEXT broke through by building a smart stove which uses electricity and could also be powered using solar and gas, it is a digital stove that can be controlled using a phone, and consumes 30% less electricity than the normal stove. This is a milestone for a young Zambian to defy the odd.

Katongo was motivated by the challenges he faced with electricity consumption while studying at CBU.

Katongo shakes hands with the Minister - Felix Mutati

He visited the Minister of Science and Technology Felix Mutati who was delighted for the innovation and had this to say.

“As a show of confidence and support for his creation, in my capacity as Zambian Citizen, I bought a two-plate cooker from him and have pledged both my support and that of the government to help him get his product on the market.”

“Zambian youths, let’s not limit our abilities to only dreaming but let’s fight for those dreams to become a reality” “This government is readily waiting for you!”

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Katongo handing over the stove the Minister purchased.

Roundup: Zambia set to make science, technology focus for economic transformation By huaxia

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The new Zambian government’s move to create a ministry specifically responsible for science and technology is evident of its resolve to use science and technology in the country’s economic transformation.

economy.

Stakeholders believe that countries that have seen development have invested so much in science and technology.

Former Finance Minister Felix Mutati, who is the minister of Science and Technology, knows the task ahead and believes that engagement with all stakeholders will be cardinal in making this a reality.

“Young people who are the future with their creative and innovative minds will be given space to translate their innovation and creativity into economic value,” he said recently.

“Science and technology can moderate socioeconomic development goals, we can build key sectoral fundamentals from engulfing into the development process with full utilization of scientific methods and through advancement of technologies,” Kelvin Chisanga, a social economist said.

Zambia can become the new Silicon Valley, said Mutati, noting that with a focused framework, the country can be at the cutting edge of the Fourth Industrial Revolution.

The Zambian minister said he is already taking the first step to actualize the bold and ambitious vision and promised that he will remain open-minded by interacting with scientists and innovators within and outside the country to ensure that science and technology becomes the driver of the country’s

While saying the creation of a ministry solely responsible for science and technology has placed Zambia at the right position of technological development, Chisanga added that the country has an opportunity to invent varied technological systems that may range from modifying hardware components to software developments.

Michael Mambwe, an information and communication technology (ICT) expert, suggested that the first step should be to set up ultra-modern physics, biology, chemistry as well as aerodynamic science laboratories in learning institutions in order to equip young

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people with knowledge in science and technology.

And many analysts believe that there are more that need to be put in place before the country can realize the full benefits of science and technology. Among the measures should be the inclusion of the teaching of science and technology for school going children at an early age in order to create a generation savvy about science and technology.

The government should also provide adequate support for research and development as well as foster innovation and creativity

in commerce and industry through financial incentives. The onus is now on various stakeholders to take the challenge and venture into various innovative and technological ideas.

the Seeds for the Future which the company has been using to nurture ICT talent among young people through a competition involving universities. The event is held annually.

The country, however, needs support from various cooperating partners to make this a reality.

Some private companies have been supporting the country in its endeavor to promote technological advancement.

The company, in collaboration with the country’s biggest university, the University of Zambia, launched an academy in 2017 to improve the standard of ICT skills in the country.

Chinese technology giant, Huawei, has been running some programs aimed at promoting ICTs in the country. One such program is

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A G R I C U LT U R E

Description of cropping systems, climate, and soils in Zambia by dr. R. Chikowo

Agriculture in general

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The agricultural sector in Zambia supports livelihoods of 85% of the population. Maize is the principal cash crop (>65% of cropped land) as well as the main staple crop. Per capita consumption of maize is estimated at 105 kilograms annually, most of which is ground into meal and consumed as stiff See, or fermented for beer, with by-products used as livestock feed. Other important crops include soybean, cotton, sugarcane, sunflower, wheat, sorghum, pearl millet, cassava, tobacco and various vegetable and fruit crops. Unlike elsewhere in subSaharan Africa, agriculture is relatively unimportant in Zambia’s economy compared to mining (primarily copper). It contributes less than 20% of Gross Domestic Product. But Zambia has potential for

significant increases in agricultural output; currently, less than 30% of potentially arable land is cultivated.

In the past, the agriculture sector suffered from low product prices, difficulties in availability and distribution of credit and inputs, and shortage of foreign exchange.

There are three major categories of farmers in Zambia, defined in terms of the land area cultivated by each farmer. Small-scale farmers, who are the vast majority, cultivate less than five ha, use few external inputs, and consume most of their produce, occasionally entering the market to sell any surplus. The hand hoe is the predominant means of cultivation. Medium-scale farmers cultivate between 5 to 20 ha. They use improved seeds and fertilizers and sell most of their production. These farmers

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commonly use a combination of manual, animal draft power and tractors. Large-scale commercial farmers plant over twenty ha annually. These farmers apply high levels of purchased inputs and use oxen or machinery for farm operations. They produce almost exclusively for direct market sale or feed their grain to livestock kept on the farm. Large-scale farmers make up only 4% of farm households, but cultivate 22 per cent of all cropped land.

Production and yield Crop yields depend on the production circumstances, with higher yields on commercial farms and low yields on small-scale farms. Annual maize production in Zambia was on average 1.1 Mt in the period 2000 to 2010, and average yields of about 1.5 t/ha that have not significantly changed over the past 20 years. Cultivated maize area has been on average 700,000 ha between 1987 and 2007, with largest area of 900,000 ha in 2008. The yield gap between actual yields and potential yields remains wide. Zambia produced an annual average of about 24,000 metric tons of sorghum and 42,000 metric tons of millet between 1987 and 2008. Sorghum and millet national average yields are very

low, about 0.55 and 0.65 t/ha, respectively.

Agro-ecological zones and soils Zambia is divided into three major agro-ecological regions (Regions I , II and III), which are primarily based on rainfall amount but also incorporate soils and other climatic characteristics.

Semi-arid Region I includes areas of southern, eastern and western Zambia: Zambia’s valleys at 300-800 m altitude mostly lie in Region 1. Mean annual rainfall in Region I ranges from 600 to 800 mm. The growing season is relatively short (80-120 days) and risky for crop production, as poorly distributed rains result in crops enduring frequent dry spells. Region I contains a variety of soil types, ranging from slightly acidic loamy and clayey soils with loam topsoil, to acidic sandy soils.

Characteristics of these soils which have significant constraints for crop production, include: erosion, limited soil depth in hilly and escarpment areas, poor physical properties that make it difficult to till especially on cracking clay soils, crusting, and low water holding capacities in sandy soils.

Region II includes much of

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central Zambia, with most of Central, Southern, Eastern and Lusaka provinces. It contains the most fertile soils and most of the country’s commercial farms. Annual rainfall in Region II averages 800-1000 mm, and the growing season is 100-140 days long. Distribution of rainfall is not as erratic as in Region I, but dry spells are common and reduce crop yields, especially on the sandier soils. Average mean daily temperatures range from 23- 26°C in the hottest month October to 16-20°C in the coldest months of June and July. The most common soils in Region II are red to brown clayey to loamy soil types that are moderately to strongly leached.

Physical characteristics of the soils that affect crop production, include low water holding capacity, shallow rooting depth, and top soils prone to rapid deterioration and erosion.

These soils also have low nutrient reserves and retention capacity, are acid, have low organic matter and nitrogen content, and are phosphorus-deficient.

Region III, the high-rainfall area, lies in a band across northern Zambia, including the Northern Luapula Copper belt, Northwestern provinces and some parts of the Central province. This region

receives over 1000 mm of precipitation each year, and the growing season ranges from 120150 days. Soils in Region III are highly weathered and leached, and characterized by extreme acidity. Consequently, the soils have few nutrients available for plant growth, and are high in exchangeable aluminum and manganese, both of which are toxic to most crops unless soils are limed to increase pH.

grown to diversify diets. Other crops include cotton, sorghum, soybeans and sunflower. Cattle, chickens, goats, pigs and sheep are common. Farmers also grow tobacco. Cattle are important for traction, meat, milk and manure.

The major constraints to increase crop production in Region II are the lack of low-cost biocides to control pests and diseases, soil degradation, and the depletion of soil fertility.

Major cropping systems

Small-scale farming predominates in Region III. Rural areas of this region have the lowest population density in Zambia. Farmers use very low-input, shifting and semipermanent cultivation techniques.

Chitemene and fundakila are two widely used, traditional methods of cultivation. In Chitemene, trees are cut at 1 meter height, branches are heaped in piles and burned, and then crops are planted in the ash.

Fundakila is used in cleared fields.

Grass is cut and buried at the end of the rainy season and allowed to decompose. The composted material is spread before the next planting season onto frequently mounded fields.

Region I has predominantly smallscale farmers in the major valley systems. In the Luangwa Valley, sorghum, finger millet and maize are the major starchy food crops, while groundnuts, cowpeas and pumpkins are also grown. Farmers use hand hoes for cultivation.

Goats and chickens are commonly kept by farm households, and some farmers have a few cattle.

Other areas of the region mainly produce bulrush millet, sorghum, and cassava.

Zambia’s large commercial farmers are concentrated in Region II. Their farming systems are mechanized and highly diverse, cultivating maize, soybeans, wheat, cotton, tobacco, coffee, vegetables, and flowers, and breeding livestock.

Besides these large-scale systems, there are also small- and mediumscale farmers in the region. Maize is the main staple crop in these systems in Central and Eastern provinces. Beans, groundnuts, pumpkins, and cassava leaves are

Principal crops in the hand hoe system of Northern, Luapula and Northwestern provinces are cassava, landrace maize varieties, sweet potatoe, pumpkin, finger millet and beans. Most farmers have chickens and a few goats, but other livestock is uncommon.

The existence of tsetse fly in some areas limits opportunities for cattle production.

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TOURISM

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South Luangwa may be renowned for its wildlife, but the SEKA Theatre Group gave Sarah Kingdom an entirely different kind of experience during her visit to

Time & Tide’s Chinzombo Lodge.

It’s afternoon tea-time at Time & Tide’s Chinzombo Lodge in South Luangwa. Tea and delicious cake in hand, we hear a bit of a

SEKA Shines In South Luangwa

commotion, just out of sight. A group of people come running across the lawn, dressed in a wild assortment of clothing and accessories. We can see sticks and spears, colourful masks and oversized binoculars, a collection of branches and an oddly out of context steering wheel.

This is not at all what we had expected. South Luangwa may be renowned for its wildlife, but what we are about to see and hear is an entirely different kind of wildlife experience. We are about to be immersed in a dramatic production by local theatre organisation, SEKA, who are known for their groundbreaking theatre work.

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SEKA stands for Sensitisation and Education through Kunda Arts, and also means ‘laugh’ in the local Kunda language. We were about to have a lot of laughs!

Theatre in the Bush with SEKA SEKA develops and performs dramatic productions, both to celebrate the cultural heritage of the Kunda people of Eastern Zambia and also to sensitise local communities on social and environmental issues, such as rural development, poverty alleviation, biodiversity loss and HIV. The

group perform in local villages and also to tourists visiting South Luangwa. Their unique brand of puppetry, physical and visual theatre enchants their audiences; local villagers and international tourists alike. SEKA’s style and approach go beyond typical ‘cultural tourism’. This is not the usual ‘museum/cultural centre’ style of production. Instead, the group uses a hybrid style of storytelling, combining puppetry,

and present issues in accessible and non-threatening ways.

When performing to tourists their performances provide a window into the challenges, dangers and benefits of living in close proximity to dangerous wildlife. Whilst done with humour, it still challenges tourists to think about their impact on the place they have come to visit, and helps them understand a little more about the local people who call this place home.

Creativity Meets Community Conservation

song, masks, physical and visual theatre and, most importantly, a massive dose of humour to educate and give expression to issues that are relevant to their various audiences. The plays SEKA produce are highly entertaining, with little reliance on language,

That afternoon at Chinzombo we were treated to a production called ‘Kusanga’.

Kusanga means Bush, and the play was a tale of an old man teaching his young niece the ways of the bush, and showing her how to learn from, understand and observe animals, trees, insects and birds. The actors switched between the various roles of a witch doctor, grandmother, dog, honey badger, honeyguide, dung beetle, heron, warthog, kudu and more, jumping from one role to another with the simplest of wardrobe changes and some creatively clever, yet simple, props. ‘The performance had us in stitches, but we were also in no doubt as to the message the group

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were trying to convey.

SEKA staff are all drawn from the local community and have a reputation for communicating serious messages accessibly and responsibly, as well as presenting all sides of a story. When working on a production targeting local village related issues, the actors spend some weeks in the target area, so they can then create a customised play that is both relevant and specific to that community. Audiences look forward to the new productions with great anticipation, and attendance levels are always high.

In conjunction with the actual play, SEKA facilitates guided workshop discussions aiming at resolving any local conflicts and at creating action plans to be implemented on the local community’s own terms.

Without a doubt watching a SEKA performance should be on every South Luangwa safari goer’s itinerary. It’s a way of learning more about the place you have come to see, both the wildlife and the people, in a fantastically fun way. It’s a way of being part of the place and the people and making a difference.

Writer: Sarah Kingdom

E-Commerce Transforming Hospitality Industry Post Covid Hottellernet Nils-Carsten Huber

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While the world responds to the worst pandemic since generations and while national public health systems around the world receive continued attention, other sectors have to prepare for a postpandemic new normal that provide these sectors with more than merely “returning to old strength”.

Tourism along with retail and wholesale trade have been hit hard by the crisis and will need more than just recovered demand levels.

Especially the hospitality industry faces a long known structural barrier to recovery and future growth: Industry Fragmentation.

In the highly fragmented hospitality industry, individual businesses that focus exclusively on their own market opportunities and operations are less resilient when fighting against a crisis, they are less capable to defend themselves against encroaching and sometimes even hostile business practices of e.g., tech giants like online travel agencies, they are more likely to become a candidate for takeovers, and they tend to miss out on a huge economic potential that results

from collaboration with fellow industry members along the entire industry value chain.

What seems to have worked under normal economic conditions becomes a disaster through the complexity of an industry-wide crisis. The mantra “if everybody is just paying attention to their own care, everybody is cared for” might have mathematically worked yesterday. Yet these days, if everybody is only paying attention to what they care about, not everything will have been cared for.

This is the centrepiece of any failing transformation and change process.

Humans (and their business) recover better and faster from a crisis if they collaborate. During the last 18 months, this has coined the globally used hashtag “#togetherstrong” in social media and hospitality-related campaigns.

Nonetheless, for an industry that is used to define collaboration as an operational activity between employees,#togetherstrong across the boundaries of the own organization and even beyond the frontiers of one’s country or region is such a radical change in thinking,

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that we need pragmatic examples and role models to understand what hyperconnected collaboration could mean in and to daily business of hotels and their suppliers.

Nature is great in giving us successful examples. And one of the best “natural business models” for collaboration is an ecosystem, which nature applies since billions of years. What can we learn from nature for our hospitality industry in crisis? First, every ecosystem is based on “give & get” and not on exploiting a situation. Take for example the clownfish and the sea anemone. They live together in a symbiotic relationship, where both species benefit from the other. They have fit for purpose offerings for the other and coevolve over time.

Ecosystems are even capable of building strength against parasites.

Moreover, ecosystems are ‘closed shops’: You are part of it or not.

There’s no opportunistic cherrypicking or ‘let’s-see-mentality’.

Only, if you give something that others need you will get what you need – that’s called mutualism.

A start-up from Germany has now

build the first bionic digital business ecosystem platform for the worldwide hospitality industry and their entire supply chain partners altogether with the employees of both to enable this #togetherstrong: Hotellernet.com “In order to meet the challenges and consequences of the pandemic for the hospitality industry, a new collaborative and participative orientation of the industry members is required to activate the innovative strength, a sense of community, and out-of-the-box-thinking”, says Nils-Carsten Huber, founder and General Manager of the Hotellernet corporation. “With nature as a business design role model”, Mr. Huber continues, “the participants of a business ecosystem realize quickly that those who do not only take but who also care for their fellow industry members gain more in the end: namely real synergies, stable and symbiotic relationships, and mutuality across any business context.”

The learnings from “nature’s top business model”, ecosystem, can be applied almost one-toone to the daily business of the hospitality industry. Comparably, automotive industry applied some of these learnings in the 1990s by getting “its suppliers on board”. Accordingly, Hotellernet. com enables everyone involved to create win-win situations based on the principle of give & get. To name just a few areas of improvement for the hospitality industry and their suppliers: Joint development of commission-free reservation markets to incrementally replacing the current market paradigms, easier access to knowledge and further training through knowledge sharing, promoting

the attractiveness of hospitality occupations beyond salary increases, re-inventing recruiting processes that also include alumni, new and more dynamic approaches to purchasing and supplier integration, introducing more modern ways of managing employee communication and work orders, and all that out of the box from a one-stop-shop single platform.

All this and more becomes possible based on a combination of social technologies and a commissionfree booking platform. “Technology is neutral and follows always and only the purpose for which it was deployed”, says Nils-Carsten Huber, “if you use technology to optimizes processes, you build tools. If you use technology to maximise transactions, you build a digital marketplace. And if you want to create a stage for big egos to generate ad revenue, you find the large and noisy generic social media platforms, where everybody is trying to find followers and build an audience. However, if you want to enable people to collaborate and rebuild better, then you need to take this technology and just design it for a better and different purpose: For building a true business ecosystem.”

In consequence, on hotellernet. com hotels and their supply chain partners can start to handle hundreds of daily business use cases collaboratively and irrespective of business or regional boundaries - from room sales to MICE sales, from HR capacity management to recruiting, from procurement to mobile work orders. Working jointly on daily challenges and larger industry themes irrespective whether you belong to a private

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hotel, chain hotel, 5-star or no-star, involving and working altogether with suppliers on environmental issues or rebuilding markets together with suppliers has now become as easy as following a social media account. This platform has been designed to enable knowledge and news sharing in a focused way and not as “egoshooting-exercise” within social noise like on generic social media.

Subject matter communities of interest, so called public groups are the place where hospitality professionals meet vendor employees. Moreover, there’s no algorithm that decides on behalf of the users what is of interest to them and what not. You don’t need followers; you only need to strive for adding value to the group(s) you are following.

This is the “give”. But there’s also a “get”. Special post types allow you to call out for help or to position your offers. Hospitality professionals have access to the staff rates and family and friend rates of the participating hotels. Vendor employees receive friendship rates for vendors. All commission- and mark-up free for the hotel. This way, hospitality can start to iterate a game change in direct bookings: Building a first of many potential ecosystems where the hospitality industry owns the rules of the game but keeping the established user experience of online travel and reservation marketplaces. Moreover, hotels can tap into the rich world of digital work order management in a lightweight and easy way with unlimited private groups that they can use for internal collaboration and communication with employees and contracted companies.

Mr.

Huber

explains

further:

“Technically, our users need only a desktop or mobile browser to access the application. Financially, private use for hospitality and vendor employees is completely free of charge. The commercial use for hotels costs only ca. ZK20,00 per day (annual subscription) and ca. ZK10.50 per day (annual subscription) for hospitality vendors.”

important is to make an economic ‘health check’ of the hospitality supply chain. Key questions by region will be: Can we serve the returning demand at all? Did we have employee churn to a degree that puts the service levels at risk?

What peak capacity do we have to handle? How ready to perform are the supply chain partners of hospitality?”.

What does the existence of such a new kind of digital platform provides as an opportunity for a country like Zambia that strives for restarting the tourism sector after a massive crisis? It’s an interesting phenomenon that the hospitality industry still hasn’t fully discovered the economic potential that the own industry constituencies provide. If we count all hospitality professionals globally, it’s a market of more than 82 million travelsavvy people. Add all the employees of hospitality vendors who are indirectly dependant on the hospitality industry, the market is as large as more than 300 million travellers. A market that could be the basis for reinventing the rules of the game with regards to the relationship with Online Travel Agencies. Hence, any restart tourism campaign will have to answer the question if they want to return to an old normal or if they want to create a new normal.

However, the new normal needs to go hand in hand with also learning how to sell better. We are used to ecommerce now +/- 25 years and everybody, from seller to buyer, has learned to seize the opportunity of scaling and easing transactions. Yet, transaction focus and ubiquitous availability of offers and substitutes have also brought new competitive challenges of commoditization and price pressure whether this is room sales of hotels, processed food, or other hospitality related supply.

Effective selling has experienced a renaissance of returning to a human relationship focus. Neurosciences have delivered insights why people do not make buying decisions based on facts of features, functions, and price level, i. e. the “what” somebody sells, but that people make buying decisions because “it feels right”. For a new normal, the key question for effective selling is, therefore, how you can collaborate with your buyer in a way that it” feels right”. So called social selling inverts the traditional push sales into pull sales. What does this mean: Instead of pushing out how great or cheap your hotel rooms or your products are, the new normal needs to return to building the ability to listen. When we truly listen, we reduce the noise of barkers, and instead understand better, what makes a buyer feel it’s right to buy.

That’s why the ecosystem platform

“Dependent on the availability and progress of vaccination for Zambia as well as its tourist feeder markets, and depending on the corresponding visitor and quarantine guidelines, both, international and domestic travellers are likely to return. But that’s not the full picture”, says NilsCarsten Huber. “Like in many other countries, Zambia has to restart not only tourism. Probably even more

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hotellernet.com combines the transactional booking engine, with the focused collaboration approach of social technology.

Talking about “feels right”: The build back of an industry’s operational backbone for a restart tourism campaign can be handled in a bureaucratic or administration-centred way or it can be decentralized, dynamic and as easy as posting in Social Media.

“We would recommend the latter”, says Mr. Huber.

“We believe,” emphasizes Mr. Huber, “the backbone of an industry like hospitality is not complete with just a ‘generic sense of cohesion and solidarity. The backbone of an industry is the tangible ability to collaborate in daily business, instantaneously and continuously, and this includes definitely both, integrating the hospitality vendors across the supply chain as well as having the ability to form partnerships internationally.”

A digital ecosystem platform could be the key to a new normal, following the truism that “old keys don’t open new doors.”

Hotellernet GmbH Schafshagenberg 35, 21077 Hamburg, Germany info@hotellernet.com

BANKING & FINANCE

Africanacity and Entreprenuership- ZDA inks MOU with ABSA

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The Zambia Development Agency (ZDA) and Absa Bank Zambia PLC signed a Memorandum of Understanding to help Micro, Small and Medium Enterprises (MSMEs) access affordable financial services.

The MoU is structured to present opportunities for MSMEs to access tailormade business development support services to enhance their performance and competiveness.

ZDA will after undertaking a baseline assessment, identify and recommend to Absa Bank Zambia, MSMEs in need of financial services.

Absa in consultation with ZDA will identify financial products suitable for the recommended MSMEs. Absa has a mandate to provide a wide array of tailor-made financial solutions to business enterprises including MSMEs, while ZDA has a mandate to facilitate trade and investment, and promote growth and development of MSMEs to spur economic diversification and job creation.

The development agency will also continue to provide business development support services, coaching and mentorship services to the MSMEs recommended to Absa Bank Zambia, which will in turn provide business financing, financial extension and working capital facilities to the recommended MSMEs.

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Speaking during the virtual MoU signing ceremony, Absa Bank Zambia PLC Managing Director, Mizinga Melu said, “We are excited as a Bank to formally sign this MoU with ZDA as we share the same vision of supporting the MSME segment grow their businesses and ultimately contribute to the growth of the economy. As Absa, we shall leverage on this partnership with ZDA and ensure that we train MSMEs on various business acumen, provide support in terms of access to export markets through trade expos and facilitate local market linkages.”

“The Bank also remains committed to driving the Financial Inclusion agenda through our Citizenship initiatives. Case in point is the support to MSMEs through Business Banking portfolio, Youth Mentorship Programme and the support to the vulnerable groups during this Covid-19 period,” Mrs Melu added.

And speaking at the same event, ZDA Director General Mukula Makasa said: “This collaboration will help solve some of the challenges that MSMEs face such as access to business financing and working capital. I am confident that this partnership will yield more positive results in the foreseeable future.”

The main objective of the signed MoU is to facilitate the provision of Business Financing and other business development services to MSMEs to enhance their business performance and improve competitiveness. Absa Bank Zambia PLC and ZDA remain committed to continue being strategic partners in development of the MSMEs segment in Zambia.

ultimately contribute to growth go the economy.

We will leverage of this partnership and ensure that we train MSMEs on various business acumen, provide support in terms of access to export markets through trade expos and facilitation of market linkages.”

Absa Bank PLC Managing Director Mizinga Melu Access to capital has remained a key hurdle in African markets with most MSMEs grappling with the ability to present bankable initiatives whose gap the Zambia Development Agency has remained alive to and continued to play a key role in identify, mentoring and nurturing this niche under the leadership of Makasa.

COVID19 has exacerbated the financing challenge which Absa Bank has in turn addressed plugged through relief packages.

The MOU signed between the two addresses the capacity building section of the MSME as they build sustainability and provide comfort to the lender on the quality of counterparties to be financed. ZDA will not only provide membership but will also assist with access to markets for the MSMEs to sell their end products of services for which the financing will be for.

Zambia Development Agency – Director General Mukula Makasa

“This collaboration will help address some of the challenges that MSMEs face such as access to business finance and working capital. I am confident that this partnership will yield more positive results in the foreseeable future.”

Zambia Development Agency – Director General – Mukula Makasa Absa Bank Zambia PLC – Managing Director Mizinga Melu

“We are excited as a bank to sign the MOU with the ZDA as we share the same vision of supporting the MSME sector to growth their business and

Both Absa Zambia and the Zambia Development Agency remain committed to growth of the copper producer through support the MSME and other key sectors.

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Zananco Plc throws a K5 million life – line to healthcare in pandemic times

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As Africa’s second largest copper producer, Zambia faces a deadly third wave of the COVID19 pandemic, its healthcare posture remains stretched with scarcity in bed spaces, oxygen supply and other medical equipment.

The gravity of healthcare hurdle is such that these bottlenecks are a reflection of readiness, a systematic concern across the world. However this period has also revealed leadership responsiveness to the pandemic as the private sector demonstrates elasticity to the need to complement state efforts in a limited public finance environment to curbing the spread and ultimately save lives.

Zambia’s largest and most profitable indigenous bank, Zambia National Commercial Bank Plc has remained agile to an evolving external and internal threat landscape posed by a widening pandemic not only by unveiling transact ability enabling digital work around solution but this time dipping in its Sustainable Responsible Investment – SRI wallet to procure medical facilities to complement state efforts in combating COVID19.

Zanaco Plc threw the Zambian health authorities a life line of K4.56million (circa $225k) worth of ventilators, oxygen, test kits and other medications required, the biggest contribution from the banking sector so far. “We had to do something about the escalating situation. We couldn’t stand aside while the community was

experiencing increasing loss of lives. The materials we have purchased directly on behalf of the health ministry will go a long way in alleviating some of the extreme challenges faced in our health facilities. We are also reminding and encouraging everyone to follow the prevention guidelines. The fight against the pandemic is one that we all need to be actively involved in to help our families, communities and our nation” The Lusaka Securities Exchange – LuSE listed bank has continued partnering growth through extending COVID relief packages to SMEs in addition to traditional lending to the key growth sectors of the economy.

The Corporate Social Responsibility – CSR gesture of this magnitude reveals financial institutions responsiveness to the needs of its key stakeholders, the community a space that houses its existing and whose health it continues to value.

Zanaco Plc’s has thrown a cumulative K9 million life line to Zambia’s health care authorities in the fight against COVID19.

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MINING

The current state of artisanal and small-scale mining in Zambia

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Zambia’s development trajectory has been shaped by mining. For close to a hundred years, the extraction of copper has dominated the economy. Without exception, the firms that have controlled the sector have been large-scale, mostly foreign – albeit with periods of national ownership – had access to huge capital outlays, and have focused on copper mining.

Relatively less is known about Zambia’s Artisanal Small-Scale Mining (ASM) sector.

in the northern province of Luapula. More recently, the Zambian government has also bequeathed large copper rich slug dumps in the Copperbelt province, colloquially referred to as black mountains, to political supporters introducing another category of urban politicised ASM miners.

In contrast to the firms dominating the copper extraction sector, the ASM sector is mostly done on a small scale, locally driven, has low barriers to entry, and involves different types of minerals beyond copper. It, however, represents an important and growing part of the mining industry in Zambia.

The ASM footprint in Zambia Zambia is well endowed with a plethora of mineral deposits beyond copper, which have primarily been mined by ASM miners. These principally include gemstones – emerald, aquamarine, tourmaline, and amethyst. The map below shows the distribution of minerals across the country. More recently, gold and manganese have risen in importance. Several gold rushes have taken place over the last few years opening up new ASM sites all over the country. On top of this, a rise in demand for manganese on world markets has spurred on the production of the mineral

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Why does ASM matter for Zambia?

• Outside of agriculture,

ASM is the most im

portant rural activity for

non-urban Africans.

• Proceeds from ASM

activities provide startup

capital for other activities.

• ASM provides off-season

supplementary in

come for agricultural communities.

• ASM often comes with

huge social challenges:

child labour, health and

safety issues, and

environmental degradation.

• The specific estimated

number of ASM miners

-in Zambia is unknown

but collectively

the sector is estimated to

employ 13 million people,

and provide livelihoods

for over a 100 million

people in sub-Saharan Africa.

Three things can be thought to characterise Zambia’s ASM sector:

1.ASM in Zambia though highly formalised has yielded few benefits for license holders ASM in Zambia is known for high levels of formalisation. The World Bank’s (2016) Mining and Governance review rates the extent to which ASM operators are allowed to legally operate in Zambia as ‘Very High’ (4.0 out

of 4.0). This is if formalisation is understood as legalisation or the granting of legal title. This high level of formality is in contrast to most of sub-Saharan Africa where ASM is largely informal. This high level of formalisation partially emanates from the fact that ASM in Zambia has traditionally focused on the gemstone mining of emeralds and amethyst, which are found in restricted zones that are mapped out as areas under license.

What the Zambia case reveals is that formalisation, or more accurately legalisation, has done little to unlock the benefits that are often touted as the outcomes of formalisation.

For instance, Siwale and Siwale (2017) find that even though emerald ASM miners are in possession of mining licenses, they have had limited success in accessing finance, technology, and institutional support from the state. Siwale (2018) finds that in the amethyst sector formalisation has given rise to different mining arrangements with varying consequences. Three types of mining arrangements have emerged: formalized, mineowner driven enterprises that resemble modern firms and are growth oriented, quasi-formal joint-production arrangements involving degrees of formality and informality, and illegal ventures.

Another contingent of ASM miners that also emerges are individuals who hold licenses for speculative purposes. What is clear is that formalisation is a necessary but

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insufficient condition for the development of the sector.

2.ASM in Zambia is rapidly changing ASM in Zambia has traditionally been concentrated in the gemstone sub sector, primarily emeralds and amethyst mining.

However, recent discoveries of gold in numerous locations in the country is changing the narrative.

Gold mining, in particular, has attracted the state’s attention with gold panning certificates issued then quickly suspended with the objective of better organising the sector. Both presidential and ministerial statements exalting the role that gold mining can play in stabilising the economy have been issued.

Additionally, due to the rise in demand for electric cars in the West, the demand for manganese, a key component in the production of lithium batteries, has grown rapidly. In 2018 alone exports of manganese in Zambia nearly doubled from 33,000 to 57,000 tons (Lusaka times, 2019). This new ASM activity differs significantly from traditional ASM in Zambia.

It is in contrast characterised by high levels of informality. The more traditional challenges that occur with informal mining are therefore commonplace – lack of safety standards, environmental concerns and child labour practices. Much of what we know about this emerging sector, however, remains anecdotal and more research is needed to

better understand the evolving nature of the sector. A coordinated approach is needed if this diversity is to be harnessed and well managed.

3.The state’s role in ASM has been inward facing State institutions in Zambia have, for the large part, been disinterested in the activities of ASM at best, and regarded them as borderline criminal elements at worst. Consequently, the regulatory and incentive structure has not always been tailored for ASM. Part of the reason for this has been a traditional focus on largescale mining, which has provided a steady flow of revenues and been the mainstay of the Zambian economy. This is best illustrated in the area of mining taxation policy. The Zambian government has undertaken numerous policy changes in the mining taxation system aimed at large-scale mining firms that have inadvertently negatively affected ASM miners.

For instance, changes in the payment of royalties in 2015 significantly increased the tax burden of ASM operators but was in fact a policy change aimed at large-scale copper producers.

The effects of this focus extends beyond taxation policy to environmental regulation as well.

Corresponding state support and the provision of essential public goods to ASM miners has also been lacking but the requirements for area fees, taxes, and royalties, and the compliance burden of

meeting state regulations, has only been growing.

Policy implications: Is ASM a question of livelihoods or an expansion of the revenue base?

Tying everything together, the Zambian government must consider whether ASM should be treated as a poverty driven activity and hence should focus on livelihoods, or whether the state should focus on generating revenue from the sector. In policy documents the Zambian government views the sector as a vehicle for job creation and economic diversification.

However, from the experiences and research studies from other countries, the government should consider approaching the sector as a conduit for livelihoods and rural enterprise support with only a long-term view to tax generation.

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Kansanshi starts jewellery project for girls

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KANSANSHI Mining in Solwezi has invested K3.5 million in the copper jewellery making project, which is aimed at empowering young women.

Public Relations Manager, Godfrey Msiska said the Nsanshi Jewellery Art project was the company’s initiative to empower young women with the skill of jewellery making using copper to make them self-reliant.

“In June 2020, we started a factory in a classroom, we got the basic tools but that was not an ideal place to do business so we thought of building our own structure. “We moved from basic tools to the now state of art machinery that we are using,” he said. Mr Msiska said in an interview that the concept was initiated after seeing many young girls around the community idling due to various social and economic challenges. “We have created an opportunity to train these young women with a skill that can enable them create their own jewellery making businesses or explore the world and work in bigger jewellery factories. “Most of these young women came from the communities, some were sent through the royal establishments because we wanted to ensure that everyone has an equal opportunity,” he added. Mr Msiska said the mining company was happy to be associated with empowering young women into better

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“A lot of people have been buying our jewellery due to the good quality and as a mining company we are so happy to associate ourselves with this project and First Quantum is a global company so we are just aligning ourselves with the philosophy of the group,” he said.

Kansanshi Community Foundation Gender Officer, Pamela Chanda, said the mining company attached great importance to women empowerment. “In doing this we have been working with the Young Women’s Christian Association to get more ideas on how best we can help the young women,” she said.

Ms Chanda said the proceeds from the Nsanshi Art project helps YWCA with logistics, as well as the day to day running of the GBV centre, established at the Solwezi General Hospital.

Ms Michele Schozlt, a teacher at Nsanshi Art project, said 10 young women were undergoing a two-year course training in jewellery making. Ms Schozlt said they would eventually want to sell their products in curio shops across the country especially at the airports. “We had one order of 30 earrings sent to panama and hope that this could lead to many more export orders,” she said. She said the raw material was pure copper from Kansanshi mine.

H E A LT H & P H A R M A C E U T I C A L S

and useful citizens. He said the project started with the local market but now aiming for the international market. Mr Msiska added that some people from outside the country had expressed interest in the project.

TWO THINK-TANKS AGREE TO BOOST ECONOMIC RECOVERY

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By BUUMBA CHIMBULU AN agreement to promote private sector participation in economic recovery amid Covid-19 using evidence based information has been signed by two think thanks.

The Zambia Institute for Policy and Analysis (ZIPAR) and the Zambia Association of Manufacturers (ZAM) signed the agreement which will influence empirical evidence based information to support the manufacturing sector.

The two institutions are committing to leverage each other’s strength to advance empirical evidence relevant to supporting the growth of the manufacturing sector in Zambia.

This is according to ZIPAR Executive Director, Herrick Mpuku. “ZAM will facilitate access to data from its members; whole ZIPAR will subject this to rigorous analysis to discern behavior and performance patterns and common challenges of the manufacturing sector.

“This will assist ZAM develop a basis for engagement with the Government and other stakeholders on matters of interest to them,” Dr Mpuku said yesterday Ludaka during the signing ceremony of the agreement. He observed the need for evidence base research to understand the binding constraints to manufacturing performance and industrialization.

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Dr Mpuku said the MoU would therefore facilitate such research and other areas of cooperation to harness and maximize the benefits of a vibrant and strong manufacturing industry.

ZAM president, Ezekiel Sekele, said the importance of economic and statistical research in the manufacturing sector could not be over emphasized.

Mr Sekele explained that this was because it was easily assimilated by policy makers and was the genesis of effective manufacturing sector policy. “In order to undertake effective policy advocacy, ZAM has taken an evidence and research approach which gives solutions to real life challenges faced by the manufacturers we represent. “Furthermore, evidence based policy advocacy is actually in line with ZAM’s objective to undertake economic and statistical research that may be valuable to the association,” he said.

“

the importance of economic and statistical research in the manufacturing sector could not be over emphasized

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The PHARMACEUTICAL market in Africa

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The pharmaceuticals market in Africa was expected to reach a business opportunity of $45 billion in recent years, propelled by a convergence of changing economic profiles, rapid urbanisation, increased healthcare spending and investment, and increasing incidence of chronic lifestyle diseases. The value of Africa’s pharmaceutical industry jumped to $20.8.

billion in 2013 from just $4.7 billion a decade earlier.

That growth is continuing at a rapid pace and it is predicted that the market will be worth $40 billion to $65 billion by 2020. That’s good news for multinationals and pharmaceutical companies seeking new sources of

growth as developed markets stagnate. It’s also good news for patients, who have gained access to medicines previously unavailable on the continent.

The tropical climate of Africa makes the continent the largest reservoir of infectious diseases, particularly malaria, tuberculosis (TB), and acquired immune deficiency syndrome (AIDS), besides frequent outbreaks of polio, meningitis, cholera, pandemic influenza, yellow fever, measles, hepatitis, and tetanus. With the increasing adoption of Western lifestyle in Africa, there has been a paradigm shift in the burden of illness towards non-communicable diseases (NCDs), driving the demand for chronic prescription drugs.

While continuing to suffer from infectious and parasitic illness, lifestyle diseases such as cardiovascular diseases, diabetes, and cancer will witness high growth rates throughout the forecast period. The World Health Organisation predicts that the proportional contribution of NCDs to the healthcare burden in Africa will rise by 21% through 2030.

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What’s Driving Growth Of The Pharmaceutical Industry In Africa?

Africa’s pharmaceutical markets are growing in every sector. Between 2013 and 2020, prescription drugs are forecast to grow at a compound annual growth rate of 6 percent, generics at 9 percent, over-thecounter medicines at 6 percent, and medical devices at 11 percent. Three factors are driving this growth:

• Rapid Urbanization. Africa’s population is undergoing a massive shift. By 2025, two-fifths of economic growth will come from 30 cities of two million people or more; 22 of these cities will have GDP in excess of $20 billion. Cities enjoy better logistics infrastructures and healthcare capabilities, and urban households have more purchasing power and are quicker to adopt modern medicines.

• Healthcare Infrastructure. Between 2005 and 2012, Africa added 70,000 new hospital beds, 16,000 doctors, and 60,000 nurses. Healthcare provision is becoming more efficient through initiatives such as Mozambique’s switch to specialist nurse anesthetists and South Africa’s use of nurses to initiate antiretroviral drug therapy. The introduction of innovative delivery models is increasing capacity still further.

• Africa’s Changing Business Environment.

To create a more supportive environment for business, governments have introduced price controls and import restrictions to encourage domestic drug manufacture; required countryspecific labeling to reduce counterfeiting and parallel imports; and tightened laws on import, wholesale, and retail margins. In the pharma industry, meanwhile, pharmacy chains are consolidating, horizontal and vertical integration is on the rise, and manufacturing is expanding. A flurry of mergers and acquisitions, joint ventures, strategic alliances, partnerships, and private-equity deals are further extending Africa’s markets.

The Growing Market For Pharmaceutical In Africa

Africa is in a transition phase, on its way to achieving adherence to global standards, such as the WHO prequalification for manufacturing.

Local production is regarded as a key strategy for sustained access to quality-assured medicines for the long term.

The regulatory environment for manufacturing in regions such as East Africa seems to grow rapidly, owing to regional harmonisation. Healthcare coverage is expected to expand to a greater proportion of the population through National Health Insurance (NHI) initiatives, as well as through memberships with private health insurance providers, particularly among the emerging middle class.

South Africa remains as the best established

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region for pharmaceutical manufacturing in subSaharan Africa. However, the local manufacturing markets in East and West Africa are relatively well developed and positioned to grow. A bulk of Africa-based pharmaceutical companies that are developing medicines have simple formulations and mixtures, which are easy to do. Technology transfer is paramount to developing the manufacturing sector in Africa, particularly as the disease burden is changing. There is a paradigm shift coming from the lower end to the higher end of adoption of complex formulations, in line with treatment guidelines, especially in HIV and AIDS and NCDs.

the market grew from 22 to 25 percent in Algeria, for instance, and from 23 to 28 percent in Morocco.

In a world of slowing and stagnating markets, Africa represents perhaps the last geographic frontier where genuinely high growth is still achievable.

Early movers can take these four steps to pursue competitive advanta:

Several factors are responsible for this shift. First, physicians and pharmacists are getting used to prescribing generic drugs. Second, as national insurance programs expand and more people gain access to health care, demand for generics will rise at the expense of costlier branded drugs. Third, many governments are showing strong support for generics. For instance, South Africa requires pharmacists to inform private patients about generic alternatives when they purchase prescription drugs; Nigeria has a similar law; and Morocco aims to increase generics sales to 70 percent of publicly funded pharmaceuticals.

The African Market

Africa is not one unified market, but 54 distinct ones, with wide gaps between countries in terms of their market size, growth trajectory, macroeconomic landscape, legal structure, and political complexities.

Over the past decade, ten countries have delivered more than two-thirds of Africa’s GDP and cumulative growth.1 However, much of the opportunity lies not at country level, but in cities. In fact, our analysis shows that 37 percent of African consumers are concentrated in 30 cities, which will have more consuming households than Australia and the Netherlands combined by 2025.

Generic Medicines Gaining Popularity In African Markets In many African countries, generic drugs are gaining market share at the expense of over-the-counter and branded products. In South Africa, Egypt, Algeria, Morocco, Nigeria, and Kenya, generics grew at an average CAGR of 22.3 percent between 2004 and 2011, considerably faster than the 13.4 percent for pharmaceuticals as a whole. This trend looks set to continue. Between 2010 and 2014, generics’ share of

How To Penetrate The African Market Real talent is key and requires investment in big, effective local marketing and sales teams. That means hiring more pharmacy representatives, building teams’ technical skills, and selecting and developing strong local managers to lead them.

Sales teams also should be set up in a flexible way that enables them to be responsive to the needs of local markets.

Forge partnerships with African Companies Global pharmaceutical companies need local business partners – manufacturers, packaging companies, and distributors – to help them navigate the continent’s

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many markets, with their widely varying consumer preferences, price points, manufacturing, and distribution infrastructures. In the absence of a pan-African pharma regulatory body, they also need to invest in local partnerships to understand varying regulatory environments.

Partnerships with governments are equally important, whether they involve working with medical opinion leaders to guide research priorities and secure funding, or collaborating with health ministries and nongovernmental organizations to provide public-awareness campaigns, health screening, treatment, equipment, and training for hospitals and clinics. Johnson & Johnson, for example, has partnered with the South African government to introduce an education program for maternal, newborn, and child health that operates via mobilephone messaging.

Distribution In Africa

Channels

efficient transport routes. In the key area of customs and border control, companies should work with the most reliable agents to minimize shipping delays, use only bonded distribution centers, and ensure all customs paperwork is airtight.

price of the raw materials, often comprise a very small proportion of the total cost of medicines, with the lion’s share often absorbed by research and development (R&D).

As a result, identical copies of many pharmaceuticals, known as generics, can be produced at very low cost.

Exporting To African Indian firms in particular have been Markets able to fill this niche, as Delhi greatly reduced patent protection in 1970, In a world of slowing and stagnating allowing Indian firms to reversemarkets, Africa represents the last engineer many medicines. geographic frontier where high growth is still achievable. As ever, the Global pharmaceutical companies key to success lies in understanding have repeatedly challenged this individual markets in granular process through legal action but detail. Early movers with the right the generic manufacturers have won approach should be able to capture a number of high-profile victories, competitive advantage. Africa will including on the supply of drugs continue to grow for the foreseeable to Africa that combat many of the future. Now is the time for drug continent’s biggest killers, including companies to decide whether they HIV-Aids, and the same process is want to be part of that growth and, likely to occur with the distribution more important, play an active role of anti-retrovirals. in improving public health.

Africa Business Pages has compiled a Often in the past, those on the special directory that lists importers continent who require medication of pharmaceutical products. The have not been able to afford it Africa Pharmaceutical Directory is because it is too expensive, while updated every six months and is distribution networks have been available for download here. limited because suppliers know that the market for selling their products The AfDB believes: “Africa’s at a commercial rate is limited. Yet pharmaceutical industry is the the economics of pharmaceutical fastest growing in the world”. production are changing.

It is generally reckoned that the pharmaceutical market will be worth For many years, pharmaceutical $40-$60bn a year by 2020 and the companies sought to maintain African pharmaceutical market fairly high prices for their products growth presents a ‘win-win’ for wherever they were sold, but that companies and patients. system has been greatly eroded for key drug classes, including for the anti-retrovirals used to treat people living with HIV-Aids.

In parts of Africa, supply and distribution mechanisms still pose challenges: regulations are evolving, transport and logistics infrastructures are patchy, and lead times can be long. The ability to innovate the distribution channel and set up effective operations against this challenging backdrop is critical to capturing growth opportunities. Helpful strategies include locating fixed assets in countries with well-established political and business structures, outsourcing supply chains to thirdparty operators, and partnering with local logistics providers to identify Manufacturing costs, including the

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