Zambian Captains the African Legends

Zambian national soccer team technical director Kalusha Bwalya on Saturday January 7 2006 was captain of the African Legends team that played against the European Legends. This was a soccer game of former football greats from Africa and Europe who enjoyed a social game of football to raise funds.

Kalusha Bwalya is Zambia’s football icon and runs Kalusha Bwalya foundation for grass root soccer to train the youth in football skills and HIV/AIDS awareness.

Bwalya was among former Newcastle United coach and Dutch soccer great Ruud Gullit, Hristo Stoitchkov (Bulgaria), Frenchman Christian Karembeu and Welshman Ian Rush in the African Legends versus European Legends match at Johannesburg’s Ellis Park stadium.

Tournament director Emy Casaletti said the purpose of the match was to raise money for the Nelson Mandela Children’s Fund. Nelson Mandela is the world’s most popular former prisoner and the first black president of South Africa. To day he runs the Nelson Mandela Children’s Fund

These football giants participated in the Legends match at Ellis Park in South Africa not to receive match fees but to pay respect to Nelson Mandela and to raise money for the Nelson Mandela Children’s Fund.

A good example is Mr. Gullit. In 1987 he dedicated his world player of the year award to the then imprisoned Nelson Mandela. Before traveling to South Africa Gullit had this to say, “I have great respect for Nelson Mandela and I can’t wait to be in South Africa. I’m also impressed with the high standard of African football,”

“We are going to dish out entertaining football and we will score many goals. But it will not be an easy march because we will be up against quality African players,”

However, Gullit told a South African tabloid that his side would score enough goals to upset the Jomo Sono coached African Legends team.

And true to his word the European Legends beat African Legends 3 to 1.

Now France Cancels Zambia’s Debt

The French government has written off US $ 73 million ie 100 per cent debt stock to Zambia. French ambassador to Zambia Francis Saudubray has announced.

Similarly the debt between Zambia and the Pars Club (Cologne) between 2002 and 2005 has also been cancelled. Zambia is getting all these benefits because of achieving the Highly Indebted Poor Countries (HIPC) completion point. The HIPC initiative has translated into US $ 193million debt write off from France.

Meanwhile the International Monetary Fund (IMF) is to write off Zambia’s debt amounting to US $ 577 million. Zambia’s debt is expected to fall down to US $ 502 million up from US $ 7.1 billion that the country owed the international community. This is what is expected once the HIPC and multilateral debt relief initiatives have been fully implemented. With the unsustainable debt off Zambia is expected to achieve a GDP above 6 percent in 2006.

One of the major spin offs is the appreciation of the local currency, Kwacha, which saw a more than 40 percent gain against the US dollar last year. The appreciation, now gripping, has continued such that the Kwacha is now a convertible currency.

So it makes sense to invest here, especially in Zambia safari industry which is still in its infancy.

Chinese Investments Grows in Zambia

Association of Chinese Corporation in Zambia (ACCZ) president Tao Xinghu has said that there has been an increase in Chinese investments in Zambia. There are 160 Chinese companies with investment totaling US $ 316 million and employing over ten thousand people.

In 2005 ACCZ invested in 12 projects amounting to US $ 4.1 million and created 1,230 jobs. Chinese rank third biggest investors on list of the Zambia Investment Centre (ZIC). Chinese Charge D’affaires Zhao Zhanbin expects more Chinese investment in Zambia because of the prevailing conducive environment. But Zambia could not avoid that. After all China’s investment and exports are ubiquitous in the world to day.

Tao Xinghu explained that ACCZ promotes bilateral and trade relations including investment between Zambia and China. He said this at the association secretariat in Lusaka Zambia’s capital city. If the Chinese can see the investment opportunities in Zambia’s tourism and safaris then you should seize the opportunity too. And Zambian tourism is huge and can absorb much more investment.

IFM Cancels Zambia’s Debt

The International Monetary Fund (IMF) executive board recently approved 100 percent debt relief for Zambia under the Debt Relief Initiative (DRI) on all amounts obtained before January 2005. IMF Resident Representative in Zambia Joseph Kakoza announced.

This debt relief will be available to Zambia in 2006. Zambia qualified to the IMF debt relief because of the overall satisfactory macro-economic performance and the progress she has made in poverty reduction.

“Zambia has enjoyed sustained robust growth, a striking turn-round in economic performance … especially in public finances.” Following the reaching of the Highly Indebted Poor Country (HIPC) completion point in March last year (2005) Zambia’s debt stock of US$7.1 billion to multilateral institutions will now dropped to US $ 502 million.

So the annual debt servicing that amounts to US $ 540 million may now be ploughed into the country’s economy. With the new focus on tourism and safaris some of this cash will find its way into development of Zambia-safaris.

Timber: Zambia’s Gold Mine

Zambia’s forest resources are large. Of the 46.3 million hectares 32 million hectares are woodlands. A small population of eleven million people in a country larger than Texas the wood resources are considered immense and therefore a “gold mine.” There is African hard wood such as teak, rosewood, “mukwa.”

The Timber Producers Association of Zambia (TPAZ) general secretary Charles Masange says inadequate capital and lack of kilning equipment has made it difficult for the timber (lumber) industry to export quality and large quantity of timber to the major importer, South Africa and to the European market.

The association has failed to meet annual requirement of 4,560 cubic metres per month to South Africa and 3,360 cubic metres to the European market.

In South African the cost of unkilned timber is between US $600-650 while US $1,200-1,500 kilned for a cubic metre while the European market which insist on kilned timber fetch between US $1,500 and US $2,500.

However, there has been a slight improvement in the timber (lumber) industry. The assistance from the European Union - Export Development Programme of Euro 123,000 and the local K4 billion Forestry Development Credit facility allocated in last year’s budget have contributed to that.

Zambia continues to host plentiful pristine forestry reserves. With conservation strategy already in place the wood industry will be protected for forever.

Zambia Open Gets $100,000 Boost

The Zambia Open Golf tournament committee has received US$100,000 to organise the event lined up for Nchanga Golf Club in March 2006. Nchnaga is located in Chingola home to the largest copper open pit in Africa. The tournament will be held between March 16 and 19, 2006

Stanbic Bank Zambia is the main sponsor and has contributed US$80,000. They will sponsor title and the first Pro-Am event. Celtel Zambia the largest mobile network company in Zambia will sponsor the other Pro-Am event with US$20,000. Zambia Open Golf organising committee spokesperson Ackim Mwale has confirmed. A total of US$ 350,000 is required for the championship.

Mwale said the 2006 Stanbic Bank Zambia Open would attract 144 professional golfers from the Sunshine Tour and the European Challenge Tour. Zambia and other African countries will only field 15 professionals and five local amateurs.

Meanwhile Omnia Fertilisers have taken on the green fertilisation programme to improve the greens. It’s green in Zambia at this time of the season but the fertilizers will make it deeper green. Naturally after the game all will be off to celebrate or re-think next year’s strategy. And who wouldn’t go to see the Victory Falls, the world’s seventh wonder?

Investors Jostling to Enter Zambia

The Zambia Investment Centre (ZIC) has recorded a 190 per cent increase in investment pledges for the period January to October 2005 ZIC public relations manager Sharon Sichilongo has announced. These investments are envisaged to create 7,682 jobs countrywide and will contribute directly to poverty alleviation.

Over this period, the centre has recorded investment pledges worth US $208,436,985 against US $107,339,637 recorded in the same period the previous year.

"In terms of the number of projects, ZIC has issued investment certificates to a total of 110 projects between January and October last year. She added that ZIC was further impressed that last year's projects were of better quality than the previous year's, with most of them in manufacturing.

The manufacturing sector recorded the highest investment pledges at US $74,566,848, with mining in second place at US $62,483,548 and agriculture at US $23,870,928. Hot on the hills was tourism. The tourism sector recorded US $20,987,990 while the service sector recorded US $15,502,162.

Now It’s Fuel from Ethanol

The Zambian government has commissioned a study to assess the possibility of producing fuel from Ethanol at Ilovo’s Zambia Sugar Plc at Nakambala Sugar cane plantation in Mazabuka.

Zambian Energy and Water Development minister Felix Mutati said, ''We are following the matter vigorously and are going to support the private sector because that is the only way forward.''

Zambia Sugar Plc managing director, Paul De Lobillard was enthusiastic about it. He said the company had the capacity to produce Ethanol as an alternative to fuel.

Mr Lobillard said if the Ministry of Energy and Water Development approved this project, the company was ready to produce Ethanol. Zambia’s economy is on the bullish trend and more energy will be required than was projected.

The company is also considering forming partnership with Zambia Electricity Supply Corporation (Zesco) in electricity. Now that’s more power for all. Even more power for new tourism and safari enterprises mushrooming up everywhere.

Looking for “Black Gold” in Zambia

From Croatia came the officials. They were here to discuss oil exploration with Zambian government and the possibility to set up a refinery in Zambia. The delegation was from the Industrija Nafte d.d (INA)

Energy and Water Development Minister Felix Mutati said Zambia was currently looking for stable fuel supply to partner with Government. On the drawing board is also the idea to set up a second refinery to supplement the Italian built Indeni Petroleum Refinery in Ndola on the Zambian Copperbelt. Mutati was happy that INA who had competences in oil exploring came to see Zambian officials.

But other investments potential exists in the energy sector. Mutati pointed out the development of the US$600 million Kafue Lower Power Station (KLPS) and the $150 million Itezhi-tezhi power station (IPS).

According to INA chairperson Tomislav Dragicevic his organisation was operating in 20 countries worldwide four of which were in Africa. His company was also seeking the possibility of joint ventures. And INA Africa regional manager Zdenko Dvorscak said his company which is a vertically integrated owns oil and gas companies from all over the world.

Barclays to Promote Zambian Culture in UK

Barclays Bank Zambia (BBZ) plans to market Zambian art and culture in the United Kingdom (UK) at the close of the Miles Ahead Project to be held in England. The Barclays Miles Ahead project was a fundraiser to support community projects and grass root soccer while promoting HIV/AIDS awareness among youth.

Coordinator Mwaba Mwaba said “We are looking at the opportunity to market Zambia’s art and cultural potential at the forthcoming competition in UK. This is an opportunity for the country to showcase itself as a centre for excellence in culture and art,” she said.

And Barclays board member Silane Mwenechanya said Miles Ahead was not about Barclays but about helping the communities.

The funds raised from the sale of raffle tickets would be used to establish and refurbish eight community resource centres to be located countrywide in Zambia. This would be done in partnership with the United Nations Children’s Fund (UNICEF) and other members of the United Nations family including the Zambian ministry of Youth, Sports and Child Development.

Youth soccer development is also on the bill. It will involve the Kalusha Bwalya foundation for the grass root soccer in order to raise HIV/AIDS awareness among youths. Kalusha Bwalya is Zambia’s football icon and national chief coach of Zambia national team.

Now it’s the Export Processing Zones

The Zambia Export Processing Zone Authority (ZEPZA) and the Zambia Revenue Authority (ZRA) have bunched up. They are working on streamlining their regulations before the Export Processing Zone licences could be implementing.

ZEPZA marketing and public relations manager Margaret Chimanse said ZRA and EPZ Acts are being repealled in order to harmonise them and remove duplication and conflict.

So the suspended EPZ licences are expected to be lifted at the beginning of 2006. According to Ms Chimanse EPZ licences have generated a lot of interest among investors.

Both local and foreign companies have already applied for the EPZ. Why this great interest? The Zambian economy is currently on the mend and very attractive too. Brokers are now referring it to a bullish trend. So investing in Zambia safari makes good business sense.

A New Protea Hotel on Cairo Rd

Union Hotels Limited (UHL), a subsidiary of Platinum Gold Limited, has bought Mutaba House on Cairo Road. Arcades developments Plc managing director Adam Leithbridge said the building would be turned into a three-star Protea Hotel Cairo Road. Named after the Egyptian capital city Cairo Road is Lusaka’s main thoroughfare.

"We are sticking to the three-star standard because our goal is to provide affordable luxury," Leithbridge said. "We are working out the cost but we anticipate that within 18 months, the hotel should open for business."

With this development, Zambia will now have five Protea hotels, others being Protea Chisamba, Protea Chingola and the two hotels being constructed one each at Arcades Centre in Lusaka and at Falls Park in Livingstone.

In the city of Kitwe on the Zambian Copperbelt Union Hotels has plans for another project to develop a part of the city's Freedom Park. Construction will start once Kitwe City Council (KCC) grants Union Hotels a permit to.

“The best part of our investments is that we are a local investor using local resources, which means that the multiplier effects of our projects in the economy are good," Leithbridge said.

Up go the number of beds for international and local visitors who want to see Zambia’s endowment in natural safaris and the unique flora and fauna (hey! meaning plants and animals) some of which are only found here.

Gizmos Invests US $20m in Zambia

Gizmos, a US information technology company, has launched its business units in Zambia, with a pledge to invest US $20 million in the next five years. In collaboration with Zambian business partners Gizmos will provide quality information technology solutions to Africa in line with NEPAD initiatives.

With operations in many US states Gizmos has made partnerships with Zambian businesses.

The chief executive officer for Gizmos USA Erik Sachs said he was confident with the investment in Zambia . The Zambian unit, Gizmos Limited, plans to invest US $20 million over five years and create an estimated 150 professional and over 1,000 manufacturing and service-related jobs in the country by 2010.

Launching the Zambian entity frecently, Gizmos Limited managing director in Zambia Greg Marchand said the era of businesses exploring Africa should be over and that companies must now invest in Africa rather than take investments out.

“American business is facing a new reality,” he said. “Africa is the next technology and communication frontier. We are working with forward-thinking companies who see the benefit of economic development and the assistance in bridging the technology and knowledge gaps. This is a winning strategy for American business, and for the Zambian economy.”

Zambia Projects 6% GDP Growth

The Zambian government has releases the Medium Term Expenditure Framework (MTEF) which projects an average six percent growth in its gross domestic product (GDP) between 2006 and 2008.

Situmbeko Musokotwane, Zambian secretary to the treasury, has said mining and construction have continued to dominate the growth process, especially with the opening of major new copper mines in the Northwestern Province. Hard on the hills are manufacturing, tourism, transport, storage and communications.

Musokotwane said the government would focus on labor-intensive sectors such as agriculture and manufacturing. And Zambian tourism is an all round employer that fits the bill of poverty alleviation because Safaris and tours attract tourist who spend money on food (agriculture), on beds (lodges and hotels), tours (wildlife and landscape), car hire (transport), curios and artifacts (artists), etc, etc.

Zambia recorded a 4.6 percent GDP growth rate in 2004, thanks mainly to increased copper production, its single biggest forex earner. The 2005 growth is expected to be 5%. Now the government projects an even stronger growth for 2006.