IMF projects a 7.7 % real GDP growth for Zambia

The International Monetary Fund (IMF), mission chief for Zambia, Mr. Trevor Alleyne has projected a 7.7 percent real GDP growth for Zambia, reflecting strong growth in copper production and non-maize agriculture, and an expansionary fiscal policy.

He further says for 2012, the current account surplus is projected to remain broadly unchanged, while gross international reserves are expected to continue to grow, reaching the equivalent of 3.3 months of prospective imports.

Mr Alleyne however warned that there are near-term downside risks arising from the uncertain prospects for the global economy and from domestic policies despite the crisis in Europe having little spillover to the Zambian economy to date, a further deterioration in global economic conditions could squeeze trade credit lines; reduce demand for Zambian exports; and lower copper prices.

And On the domestic front,he said the policy measures will be needed to ensure that fiscal targets are met; and careful implementation of the planned financial sector reforms will be necessary to safeguard

financial sector stability.

Mr Alleyne further stated that on the other hand, Zambia’s solid macroeconomic management, the large investments in the copper sector, and recent strong growth in non-maize agriculture all auger well for the country’s ability to withstand global shocks and sustain the growth momentum into the future.

“Maintaining a positive investment climate for current and potential investors should be an

important component of Zambia’s growth strategy. As traditional concessional financing

phases out and Zambia relies increasingly on international markets and foreign direct

investment, it will be important for the government to implement and communicate clearly a

consistent set of policies related to foreign investment. This will enhance Zambia’s

international reputation as a destination for investment flows by reducing uncertainty” he stressed.

“Despite the favorable macroeconomic results, there is an urgent need to re-orient policies to

ensure that economic growth and macroeconomic stability are accompanied by strong

employment growth and poverty reduction. Looking forward, it will be important for the

Government to implement policies to diversify the economy and ensure that growth is more

inclusive. Key areas will include: (1) tax policy, tax administration, and public financial

management to create fiscal space for increased infrastructure spending and improve

technical capacity to efficiently administer a larger capital budget; (2) maize marketing and

pricing policies and the development of a broad-based reform strategy for the agricultural

sector; (3) increasing access to financial services by small and medium enterprises without

jeopardizing financial sector stability; and (4) removing the incentives for the proliferation of

informal business and employment arrangements.”

The 2012 Article IV discussion by the IMF’s Executive Board is expected to take place in

May, 2012.

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Outotec and Zambia's Kansanshi Mining sign sulfuric acid technology deal

Outotec has signed a contract with the Zambia-based mining company Kansanshi Mining plc for the design and delivery of a gas cleaning system and a sulfuric acid plant. The Zambian company operates a large copper mine and has selected Outotec to build the world's largest metallurgical sulfuric acid plant downstream of its new copper smelter. The contract is valued at approximately over EUR 80 million.

The new gas cleaning and sulfuric acid complex will be part of the overall copper smelting facilities located in Solwezi, North-Western Province, Zambia. The acid plant will process off gas from the copper smelter and the acid produced will be used for leaching nearby at Kansanshi Mining's copper plant. 

The scope of Outotec's delivery includes basic and detail engineering, procurement and the supply of proprietary equipment for the gas cleaning system and acid plant. In addition, Outotec will also provide advisory services for construction and commissioning to the overall project scope. Kansanshi Mining is a subsidiary of First Quantum Minerals Ltd, a rapidly growing mining and metals company currently operating a number of mines and developing several projects worldwide.

Outotec's track-record as the leading provider of sulfuric acid technology - more than 600 plants have been delivered worldwide - was a major factor in the Zambian company's decision to select Outotec.

"This is a very exciting project for us not only due to the size of the acid plant, but also because the client has made it very clear they want a world-class plant design incorporating the highest environmental standards," stated Outotec's president and CEO Pertti Korhonen, adding "We take pride in our role as a global leader of sustainable solutions to the industries we serve and winning projects on this scale simply confirms our status.

 Environmental standards set by the World Bank will serve as the benchmark for the project."

Shikapwasha refuses to pay sunday nkonde

Former Minister of Information and Broadcasting Services Ronnie Shikapwasha has broken the silence over his being surcharged to pay K900 million accrued by ZNBC as legal fees for SBN lawyers engaged to represent it in defamation cases.

Lieutenant General Shikapwasha denied ever having directed the Zambia National Broadcasting Corporation (ZNBC) to air a political documentary produced by journalist, Chanda Chimba III dubbed ‘Stand up for Zambia.

He has also refused to pay the K900 million legal fees for SBN legal practitioners who were engaged to represent ZNBC in the case involving the airing of the Chanda Chimba III programmes on the national broadcaster.

SBN is owned by Sunday Nkonde and it was hired by ZNBC not Shikapwasha.

In the said programmes, Chimba eloquently predicted the doom, chaos, confusion, dictatorship and national disunity that would follow in Zambia if certain politicians won the elections last year.

Gen. Shikapwasha said at a press briefing in Lusaka today that he, together with his former Permanent Secretary Dr. Sam Phiri, never at any time directed ZNBC to air the documentary.

He said he has since written to the Secretary to the Treasure refusing to settle the K900 million legal fees surcharged against him by the Attorney General as legal fees for lawyers representing ZNBC for airing the so called libellous documentaries.

Gen. Shikapwasha has also threatened to take legal action against journalists writing stories which he said are untrue on his alleged role in the controversial Chanda Chimba III Stand Up for Zambia political documentary.

He further argued that some editorials written in some sections of the media about his alleged involvement in the Chanda Chimba III Stand Up For Zambia political documentary were libellous.

Meanwhile, Gen. Shikapwasha has complained that the Attorney General did not accord him an opportunity to defend himself saying it was against the law to prosecute him in the media rather that in the courts of law.

In a letter dated 24th February 2012, copied to the Attorney General and in accordance with Section 31 of the Public Finance Act No 15 of 2004, Secretary to the Treasury Fredson Yamba notified Gen.
Shikapwasha to pay the legal fees amounting to K900 million incurred by the government of Zambia.