Thursday, September 3, 2020

ENERGY POLICY: Water over the dam

  – by Derrick Silimina

In depth

Hydroelectric power station on Lake Tanganyika in Zambia.

The hydroelectric power station on Lake Tanganyika in Zambia.

Zambia is reconsidering its long-time dependence on hydropower, as chronic droughts cut production at its massive hydro dams. The country is diversifying into solar and wind instead.

At first glance, hydropower seems natural for Zambia. The country benefits from the water flows of the mighty Zambezi and Kafue Rivers, and hydropower is a clean and renewable fuel source. With this in mind, Zambia built major hydropower plants to supply nearly all its electricity needs.

But hydropower has a fatal flaw: Chronic drought lowers water levels to the point where power production is severely curtailed. Droughts in recent years have produced electricity shortages estimated at nearly one-third of Zambia’s total installed hydroelectric capacity of 2,380 megawatts.

In 2019, water levels in the Kariba dam plunged to their lowest level since 1996, falling to 10 % of usable storage. “This is probably the worst drought that has ever hit Zambia since independence” in 1964, Energy Minister Matthew Nkhuwa told parliament.

Drought caused by climate change is not the only flaw in Zambia’s energy policy, however. Chronic under-investment in hydro projects has also caused problems. Even when enough rain falls, the power supply cannot keep up with demand from the mining, manufacturing, and agriculture industries.

But the biggest problem is that Zambia is over-dependent on hydro energy, a fuel source that is subject to the unpredictability of the weather. According to the US Agency for International Development (USAID), the country draws 85 % of its power from hydro projects.

As droughts cause chronic and prolonged blackouts, Zambia is looking to reduce its dependence on hydropower by developing other renewable fuel sources, such as solar and wind. These fuel sources are as clean as hydropower and can help reduce Zambia’s dependence on rainfall for its electricity.

Solar and wind projects have another key advantage: these power plants can be smaller and more decentralized than most hydro dams and can be connected to micro-grids supplying under-served communities. That is important in Zambia, where the countryside lacks access to power. According to USAID, only four percent of the rural population in Zambia has access to electricity.


Enter private investors

The vast majority of Zambia’s power is produced and distributed by Zesco, the state-owned utility. But in an effort to diversify both its fuel sources and its financial resources, Zambia is entering agreements with corporations looking to invest in its energy sector.

For example, in 2019 the Zambezi River Authority awarded a contract to a consortium led by General Electric and Power China to build a $ 4 billion hydropower project at Batoka Gorge.

Zambia also signed an agreement with the World Banks’ International Finance Corporation (IFC) to develop two large-scale solar projects. A competitive auction through the IFC’s “Scaling Solar” program attracted bids from competing solar developers. Both solar plants started operation in 2019; according to the IFC, the projects offer the lowest solar-power prices in Africa to date.

Wind energy is relatively underdeveloped but several promising projects are underway. Last November the energy minister initiated a 200 MW wind-power project in Katete, Eastern Province. The government expects construction to start in 2021. This is the first phase of the larger Unika 1 wind project, which is to be financed by private investors.

These projects are badly needed and long overdue. Rolling power blackouts have damaged Zambia’s already fragile economy. The chronic electricity shortages have affected everyone, from individuals to small businesses and large mining corporations (see box).

Adding generating capacity from diversified supply sources could also ease a price crunch for energy consumers. As Zesco’s condition has worsened, it was forced to raise tariffs by as much as 200 % in late 2019, in part to pay for power imports from South Africa.

In the short term, rate-payers facing a combination of rolling blackouts and higher prices are upset. “My business is down due to lack of electricity,” says Lucy Mbewe, 32, operator of a hair salon in Lusaka, the capital. “The government should invest in [other] renewable energies instead of always depending on the Kariba dam for power generation, year in and year out.”


Source
USAID Zambia power Africa fact sheet:
https://www.usaid.gov/powerafrica/zambia


Derrick Silimina is a freelance journalist based in Lusaka, Zambia. He focuses on Zambian agriculture and sustainability issues.
derricksilimina@gmail.com

AGRICULTURE: Facing down the armyworm pest

  – by Derrick Silimina

Nowadays

Zambia is once again facing a serious threat to its staple crop, maize, which comprises 90 % of its food energy intake.

The threat comes from an invasion of fall armyworms – caterpillar-like creatures that arrive in droves and eat their way through the leaves and stems of plants. Although attention has focused on the dietary staple maize, the pest also attacks groundnuts, sunflowers, cotton, and soybeans.

Armyworms invade each year to wreak havoc on Zambia’s crops. According to the country’s Ministry of Agriculture, fully 98 % of farmers in Zambia and Ghana told pollsters in a 2018 survey that their maize crop was affected; the average maize loss was 35%. In the most recent farming season, 46 districts and 521 farming settlements sent out distress calls.

Zambia is not alone in facing an invasion of armyworms. The Ministry of Agriculture says the caterpillars attacked more than 40 African countries during the 2018-2019 farming season. Those attacks laid waste a total of nearly 60,000 hectares of land that support over 70,000 households. 

For small-scale farmers and their communities, the invasion is catastrophic. Sharon Mwale, a small-scale farmer in the Kafue district in southern Zambia, says armyworms cause massive damage to her crops each year and threaten food security in her district.

The government fights the invasion by spraying affected fields with anti-armyworm chemicals. Recently, it reportedly purchased 83,000 liters of anti-armyworm sprays. Other agencies are also involved: the African Development Bank committed $ 3 million for anti-pest chemicals.

Chinese-owned agriculture-technology company Sunagri Investment Zambia offers a further solution. It uses drones to spray affected crops, avoiding labor-intensive spraying by hand.

Fraser Zhang, the company’s founder, initially imported three drones from China for the task. He subsequently deployed “smart” drones that spray affected plants at night. That was a key step-change in the fight against armyworms since the pests feed on crops at night.

Not all farmers believe that chemicals are the right way to fight the pest. Nelson Kabanda, a farmer from the Lufwanyama district in the center of the country, says the solution is to invest in preventative measures rather than using chemicals. “This is a waste of taxpayers’ money,” he says of the spraying. “How long will this battle continue with chemicals, to which most affected farmers don’t even have access? We need a lasting solution or else farmers will forever be in need of food aid.”

Similarly, Maybin Mutale, a farmer in the Mufumbwe district in the country’s northwest, notes that farming in his region has been depressed for a long time despite spraying. He says farmers should shift to hardier, pest-resistant crops. “If mitigation measures are not put in place, many farmers will starve,” he says. “How can one harvest crops that have already been eaten up?”


Derrick Silimina is a freelance journalist based in Lusaka, Zambia.
derricksilimina@gmail.com

Chinese business technology transfer provides benefits for Zambia

 

As part of the realization that it is a "knowledge and technology transfer" approach that helped China become one of the major global economies, the Asian giant is employing training as one of the vital ways of skill and technology transfer to Africans
By Derrick Silimina VOL.12 September ·2020-08-31
People buy fruits in a market in Lusaka, Zambia, on July 31 (XINHUA)
The drive for knowledge and technology transfer from China to Africa has taken center stage in recent times and the relationship runs much deeper than the one based on a trade of commodities.

As part of the realization that it is a "knowledge and technology transfer" approach that helped China become one of the major global economies, the Asian giant is employing training as one of the vital ways of skill and technology transfer to Africans.

Local training

In Zambia, some Chinese companies are providing training to its local employees mostly through formal programs such as mentoring and on-the-job training. For these reasons, Chinese investments in Zambia's key economic sectors have continued to change people's lives, especially the youth, with many direct and indirect jobs created.

Recently, Minister of National Development and Planning Alexander Chiteme reiterated his call to Chinese Ambassador to Zambia Li Jie to encourage Chinese companies operating in the country to transfer skills to locals.

"What we want to see as Zambians is skills being transferred from Chinese nationals and imparted to our people, so that we can learn and enrich our skills," said Chiteme.

Nestled at the edge of Chongwe District 50 km east of Lusaka City is Zhongyang Eco-Agriculture Industry Park, a Chinese-owned agriculture and construction company. Apparently, Chongwe is home to some other Chinese businesses that contribute immensely to Zambia's agriculture and construction industries, key economic sectors that have since benefited many people in terms of employment creation in the area.

Zhongyang Eco-Agriculture Industry Park Administrative Manager Fredrick Sashi is one among many local workers who appreciates the value of skills and technology transfer by foreign entities to its employees.

Interestingly, the Chinese company was recently left in Sashi's hands when its directors returned to China during the Chinese New Year celebrations early this year. Their prolonged stay in China following the outbreak of COVID-19 in that country did not disrupt operations in Zambia because Sashi had acquired the appropriate management skills.

Sashi told ChinAfrica that it was an amazing achievement and a boost to his career prospects being delegated to manage the company's finances and operations.

"For me, the responsibility was timely because I had already been groomed to do the job by my Chinese managers. Apart from that, it's an excellent experience when you get entrusted by foreign investors to manage the company's operations on their behalf," he said.

Sashi, who is an accountant by profession, stated that having been at the helm of the company and coordinated its financial transactions for about 20 months was enlightening as he had gained valuable skills in using Chinese apps to communicate and carry out monetary transactions more efficiently.

Workers at a face mask firm in Lusaka, Zambia, on July 24 (XINHUA)

Mutual benefits

But it is not knowledge transfer alone that is mutually benefitting Zambia and China. Recently, there has been more technology transfer of vital knowledge diffusion from Chinese companies to local members of staff. This has been in the form of machinery and production processes and models among others.

For instance, Hongsen Investment is another Chinese company involved in recycling plastic waste materials into finished household products such as dishes, cups, brooms, and hangers.

Hongsen Company Administration Officer Thandiwe Chaaba said they are creating value out of plastic waste material by contributing to job creation and environmental sustainability.

"This plant here uses unique technology because it was one of the first to be established in the country and I believe its operators, who are mostly locals, have learned the value of such equipment not only to help sustain the environment but also to create jobs in the community," said Chaaba, who is also a Mandarin/English translator at the company.

Francis Kabaso, 42, works at Chinese company CAMCO Equipment (Zambia) Ltd., known for its supply of durable and affordable agricultural equipment in the country.

As CAMCO's Operations Manager, Kabaso coordinates the company's outlets countrywide through the supply of state-of-the-art agricultural equipment in line with the goal to scale up agriculture productivity in the country.

Kabaso said that during the course of his duties, he has learned how technology transfer is key to national industrialization. If it is well harnessed, local workers who have been taught how to operate certain equipment can easily pass on the technical skills to future generations, a catalyst to national emancipation, he said.

Meanwhile, China-Africa Cotton (CAC) is one of the first Chinese cotton companies to enter the African market. CAC is a wholly-owned subsidiary of China-Africa Cotton Developed Ltd. and has become an integrated enterprise including cottonseed planting, cotton ginning, sales, and cooking oil production, based on excellent cotton-growing conditions in Africa.

CAC has contributed greatly to technology upgrades in Zambia's textile industry through the introduction of improved seed varieties and cost-efficient chemical products. This has meant an increase in productivity in cotton production. CAC's goal is to form a complete industry chain, including cotton planting, ginning, and spinning as well as oil production.

"We will take advantage of our cutting-edge technology and efficient management skills to provide good products and service to all our clients," CAC Chairman Wang Chuanguan said recently.

While it may be too early to measure the significant role technology and knowledge transfer from China to Zambia is playing in shaping its development agenda, experiences in Zambia and other growing economies on the continent point to a mutually beneficial outlook.

(Reporting from Zambia)

Tuesday, August 25, 2020

JICA Plays Significant Role in Zambia’s Development

 AUG 25, 2020

SNA (Lusaka) — Japan has become a formidable pillar in Zambia’s development, and its influence is felt in the fields of business investment, training, and technology. Some have argued, however, that the criteria for accepting trainees and awarding grants needs further clarification.

Japan’s official development assistance to Zambia is delivered mainly through the Japan International Cooperation Agency (JICA). Since it began its activities in 1968, it has been an extraordinary success story that effectively triggered the transformation of the Zambian economy.

JICA’s training programs have enabled many Zambians to go to Japan and participate in training courses. Each year, about 100 to 150 Zambians are trained in the Asian country, and about 3,000 more Zambians receive some form of training inside their home country. JICA’s investments in Zambia have been worth about US$2 billion since its operations began.

“Since the purpose of our cooperation is to help Zambia achieve its Sustainable Development Goals,” Japanese Ambassador to Zambia Ryuta Mizuuchi said recently in Lusaka, “I think we have to take it seriously.”

He added, “One thing that I clearly heard from Republican President Edgar Lungu himself, possibly in this context, was about Zambia’s quest to strengthen the agricultural sector with a view to diversifying the economic structure, and rectifying the overdependence on mining.”

Zambia, Africa’s second-largest producer of copper, is highly dependent on mining as its major productive industry. Mining contributes 78.4% of total export value, and 31.4% of government revenues, according to the latest data from the Extractive Industries Transparency Initiative (EITI).

The Japanese envoy also expressed interest in exploring the potential to achieve a sustainable human resource development chain within Zambia. “Personally, I wish to see a ‘strategic thrust’ in our cooperation with Zambia, in such a way that, for instance, a schoolgirl with excellent talent would be efficiently supported by a JICA scheme in the field of gender, and promoted further to receive Japanese language studies at the University of Zambia, which is already assisted by volunteers who teach Japanese.”

JICA Zambia Office Chief Representative Kazuhiko Tokuhashi affirmed that the agency has been the bridge linking Japan and developing countries. “The actions that drive us as JICA are commitment, working together with the people, thinking and acting together strategically with broad and long term perspective, bringing together diverse wisdom, resources, and innovation that will bring about unprecedented impact,” he asserted.

With more than 4,000 trainees now having been sent to Japan through JICA’s training programs, the ultimate aim is to realize the Vision 2030, making Zambia a prosperous middle-income country by that year.

The Zambian government has commended Japan for being an “all-weather friend” in providing assistance in various economic sectors of the country.

Director of Vocational Education and Training Alex Simumba recently stated, “We will continue to engage in partnerships aimed at empowering our people; we cannot develop the country alone without the support of our partners. Since the launch of the Seventh National Development Plan, our role as government is to scout for partnerships.”

The Zambia JICA Fellowship Association (ZAJIFA), an alumni organization, has been developed as a way to maintain personal relationships between ex-participants and to ensure continued knowledge sharing among various key organizations within the private and public sectors.

ZAJIFA President Joseph Mulenga said that the association plans to shake things up and to get more members involved in projects, as well as to become more visible by having additional collaborations with Japanese counterparts.

Some ZAJIFA members recently made presentations on human resources development and the succession plan in an organization. One of the proposed plans is the development of floating photovoltaic technology on Lake Kariba, and a solid waste management improvement plan.

Although Zambia is endowed with natural water resources that offer significant opportunities to supply fish, the growth in aquaculture and fisheries have not matched the ever-increasing demand.

Current fish production is about 100,000 metric tons per annum, against the demand of over 180,000 metric tons, according to the Zambia Aquaculture Enterprise Development Project.

“Being accepted to attend a five-week course in Kyushu, Japan, in May 2017 was an opportunity of a lifetime,” stated Roster Kawala, a ZAJIFA member who recently attended a course on capacity building for entrepreneurs. “Upon my return, I have promoted aquaculture and encouraged the business community to participate by providing a market, cold storage facilities, and refrigerated transportation, among other things.”

However, some community members feel that, as much as JICA has been doing through its skills development and capacity building, a lot more still needs to be done in terms of publicizing its criteria for accepting trainees and awarding grants to deserving recipients.

“Some of us are still blank about JICA’s capacity building program, despite having belonged to cooperatives,” stated Amos Chanda, a social worker based in the Kafue district. “The JICA programs ought to be inclusive and embrace many, especially in rural areas.”

Farmer Jane Simate echoed Chanda’s concerns: “The recent Market Oriented Rice Development Project by JICA has so far been selective. The project has only captured a few rice farmers to equip them with skills on how they will become productive. What about other rice producers like myself who need the knowledge?”

For breaking news, follow on Twitter @ShingetsuNews

 

Monday, March 2, 2020

Ease of Business

Streamlined freight service helps goods flow for Zambian startups
By Derrick Silimina | VOL.11 November ·2019-11-06
There's a constant buzz about China's large population always being on the move. Martin Mweenda wants to be part of that buzz as he predicts China to become a booming market for Zambia's emerging entrepreneurs.
It is a tale of two businesspeople with different aspirations - one is a Zambian entrepreneur who needs to grow his business but lacks an efficient way of importing goods from the industrialized world. The other is a Chinese manufacturer and supplier of goods who is looking for new markets.
However, each of the two investors spends sleepless nights thinking of how best their ambitions could be achieved, yet each has the potential to provide solutions to the other's business objectives. All they need is to link up and cut a deal.
Luckily help is at hand. China Katundu Shipping Co., one of the Chinese freight companies based in the Zambian capital of Lusaka, provides its core business shipping and air transportation services to its clientele from China direct to Zambia.
Benefit to local entrepreneurs
Mweenda, 40, is a budding entrepreneur based in Lusaka's sprawling Town Center Market, specializing in mobile phone and telephone accessory retail business for the past five years.
"I started this business from scratch in 2011 by selling second-hand phones along Katondo Street and then after raising enough capital, I switched to cross border trading. Back then, I used to get phone accessories from South Africa and Tanzania," said Mweenda. But he later realized that using one of the Chinese couriers would allow him to import stock from China without having to go there.
"If I decide not to travel, the shipping company will do all the paperwork for me, thereby reducing costs I previously used to incur," he said.
From his humble beginnings at the bustling Katondo Street located in the heart of Lusaka metropolitan area, Mweenda, who is popularly known as "Huawei" among his peers due to his long time dealing in the Chinese mobile phone brands, now prefers to import his goods direct from China.
Christabel Muchindu, another upcoming entrepreneur who deals in second-hand clothing based at the COMESA market, southwest of Lusaka, told ChinAfrica that the Zambia-China bilateral trade relations are hugely positive as it is helping grow local entrepreneurs.
Asked to elaborate more on the viability and sustainability of the trade relations, Muchindu said that after three years in business, the services of the Chinese shipping and air freight company importing her goods has allowed her to realize more profit than before.
"For instance, if I use a groupage loading service from Guangzhou (in south China) to Lusaka, the cost is $260 per cubic meter, duty inclusive. Through China Katundu, I and other traders will be allowed to share container space and this is quite cost-effective. This allows more small scale businesspersons to import their goods at lower duty, which is a bonus to some of us emerging entrepreneurs," said Muchindu.
Considerate service
In a bid to provide a hassle-free trading environment for the majority of Zambian entrepreneurs like Muchindu and Mweenda, China Katundu has risen to the occasion.
With more than a decade of operational experience, the company now offers a considerate service for goods shipped on a loose cargo container from Guangzhou direct to Zambia, an incentive that attracts many small scale traders in Zambia.
"This means we sell space in our company container to individuals who have got goods to ship. The container comes under our company name and is cleared as such, thereby exempting clients whose cargo is on board from paying duty by themselves," China Katundu Marketing Spokesperson Diana Chimy told ChinAfrica.
This commercial idea not only reduces the amount of inconvenience faced by many traders when it comes to dealing with customs issues, but the services are also efficient.
Through its representative based in Guangzhou, Chimy explained, the company has also managed to invest in secure warehousing both in China and Zambia, as well as facilitate the process of Chinese visas and provide free airport pickups for any business person who intends to travel to China.
Statistics from the Global Entrepreneurship Index of 2017 show that Zambia is ranked 10th in Africa and 96th worldwide in terms of entrepreneurship.
Recently, Chinese Ambassador to Zambia Li Jie said the bilateral trade volume between China and Zambia has increased dramatically from $2.36 billion in 2017 to $5.07 billion in 2018.
Li also said China's focus in its economic cooperation with Zambia now promotes direct private sector investments that will not require any sovereign guarantees from the Zambian Government.
Li attributes the positive situation to the strength of the two country's economic partnerships.
Top investment destination
With over 1,000 Chinese enterprises investing more than $4 billion in Zambia, this is evidence that Zambia has become one of the top 10 destinations among all African countries for Chinese investors.
Chimy said her firm is known for its unique products and services that include visa arrangements to China (free if one considers loading a 40-foot container), free pickup from the airport upon arrival, warehousing of goods, group loading, sea/air/road freight, and sourcing of goods, among others.
Asked whether or not the company is violating any tax laws, Chimy said that on the contrary, the company has enough space at some shipping organizations and a wide-enough network with viable agents back in China, that helps speed up the process of cargo clearance.
Recently, the Bank of China in Zambia, in partnership with the Bank of China in the industrial city of Zhengzhou in central China's Henan Province, organized the Henan International Investment and Trade Fair, aimed at spurring cross border investment and trade projects, as well as strengthening domestic and overseas business cooperation.
The bank hosted over 400 small- and medium-sized entrepreneurs and other stakeholders from Zambia and across the globe in Zhengzhou. The region has gained momentum in economic growth and industrial restructuring over the past years in a bid to link investors to potential business destinations.
Mweenda has since implored fellow local entrepreneurs to double up their efforts because their Chinese counterparts have not grown their economy through appeasement.
"They have done so through shrewd business and sustainable deals underscored by hard work. Where others have been seeing challenges, they have been seeing opportunities, which they have gladly taken around the world. This is a strength that Zambians should collectively acquire instead of constantly wallowing in self-pity," he said.
China is indeed a global economic powerhouse, which has the muscle to influence world trade more than any other country, according to Mweenda. It is therefore not surprising that many Chinese companies seek opportunities to expand their investment ties with Africa where countries like Zambia will remain a preferred economic destination.
(Reporting from Zambia)
(Comments to niyanshuo@chinafrica.cn)

Zambians choose Chinese cures


 – by Derrick Silimina
Nowadays
As in many facets of life in Zambia, the influence of China is visible in the country's health-care sector.

China’s ancient healing arts are gaining a strong following in Zambia. Residents of the south-central African country are increasingly visiting Chinese-owned clinics offering a variety of ancient cures, including acupuncture, herbal medicines, massage, exercise regimes, dietary therapies, and creams and ointments against aches.
Traditional Chinese cures avoid many side effects associated with modern medicine, its advocates say. At least 70% of Zambians use traditional medicine, according to the World Health Organization.
Zambia’s government has noticed the growing popularity of Chinese cures. Health Minister Chitalu Chilufya said recently the government is reviewing its rules on traditional medicine with a view toward making such practices more accessible. 
“We have identified the need to strengthen collaboration, in particular with China, in research on traditional herbal medicines,” the minister told a visiting delegation from Jiangxi University. “Zambia will collaborate to strengthen the cultivation of medicinal plants and to share experience and knowledge.”
Chinese medical practitioners in Zambia have been happy to meet the growing demand. “I attend to patients suffering from stroke, HIV/AIDS, hypertension, paralysis, and diabetes among others,” said Feng Kehong, owner of the Zhong Yi Surgery. She opened the private clinic in 2002, five years after arriving in Zambia.
Of the wide range of traditional Chinese cures on offer, acupuncture has seized Zambians’ imagination the most. In this traditional Chinese therapy, needles are inserted into affected points on the body to relieve pain and cure illnesses.
For Bernard Siwale, a Lusaka based taxi driver, the results of the procedure are worth some discomfort. He turned to the Zhong Yi surgery in Lusaka after modern medicine did not cure a partial paralysis he suffered early this year. “The doctor pricks you with small needles and you feel slight discomfort,” he said. “After 30 minutes the needles are removed. The process is repeated for 10 days, but thereafter the pain disappears.”
Other patients are equally enthusiastic. “A Chinese health practitioner recommended herbal medicine and acupuncture for my abdominal pains, and after 10 days the pain was gone,” said Belinda Ngulube, a pharmacist. “Acupuncture is based on the interconnectivity of our hormones and nervous system. It has helped many patients.”
Three months of acupuncture and Chinese herbal medicines treatments were the solution to severe bleeding for Angela Nkandu, age 38. “I used to bleed badly even with a slight injury and conventional medicine couldn’t help much,” she said. “Doctor Tiang gave me blood boosters and acupuncture and it worked wonders.”
Traditional Chinese cures are longer-lasting than cures from modern medicine, according to Chris Banda, a teacher in eastern Zambia. He traveled to Lusaka for treatment at a private Chinese clinic and said it was worth the trip. “Western medicine couldn’t cure my chronic headache. Conventional medicine can reduce pain but afterward the pain comes back.”

*Derrick Silimina is a freelance journalist based in Lusaka, Zambia. He focuses on Zambian agriculture and sustainability issues.
derricksilimina@gmail.com