Setback for Harare workers
Court Reporter
Harare municipality workers’ bid to stop the implementation of a joint venture between their employer and a local company over the management of par-kades and parking lots hit a snag on Monday after the High Court dismissed their urgent chamber application.
The workers are up in arms with their employer for entering into an agreement with Easipark (Private) Limited and filed an application for an interdict arguing that the deal would render them jobless.
Justice Felistus Chatukuta ruled that the application was not urgent and the matter should be dealt with under the Labour Act.
In their failed application, the workers had argued that last year council signed an agreement with Easipark to take over control of municipal parking lots without consulting employees who man the premises.
They wanted an order compelling council to retain all employees in the parkades section in their positions.
In addition to this, the workers sought an order for Easipark to cease all operations at car parks and remove all its employees already seconded there.
They argued that the joint venture meant Easipark staff would take over their jobs and some council supervisors had since lost their offices.
Labels: HARARE, JOINT VENTURES, LABOUR
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Copperbelt is yet to see classical developmental structures – Musonda
By Kabanda Chulu
Tue 27 Oct. 2009, 04:00 CAT
PHOENIX Materials Zambia and HBW of South Africa have formed a joint venture to develop the proposed US $ 160 million mixed use development facility comprising a shopping mall, hotel, housing units and convention centre in Kitwe.
Announcing the formation of TGP Properties Limited, Phoenix Materials chairman Phesto Musonda said there was need to put up modern structures that would contribute effectively to the country's economic development. The proposed project would be constructed near Itimpi opposite Chingola Road Cemetery.
In an interview on Sunday, Musonda said the Environmental Council of Zambia (ECZ) had approved the impact assessment and project construction would commence early next year.
“We are developing this project which is themed as the 'Copperbelt City' and it will be a mixed use development facility costing US $ 160 million and will comprise housing units, a 210 room hotel, 134 retail shops, six screen cinema halls and food courts, conference facilities among other structures. In fact this will be the largest single investment on the Copperbelt outside the mining industry,” Musonda said.
“And our contractors shall soon move on site since ECZ has approved our impact assessment report but we are applying to government to give us the Investment Protection and Promotion Agreement (IPPA) because this is a huge investment and funding is already secured.”
He said the project would attract other developmental activities around it that would result in creating employment opportunities.
“In recent years, the Copperbelt region is yet to see classical developmental structures in form of modern structures and this is why we want to develop a 'copperbelt city' with new facilities that will contribute effectively to the economic development of this country and this project will take 30 months to be completed when we begin construction in the first quarter of 2010,” said Musonda.
And ministry of commerce director of industry Siazongo Siakalenge said the government was ready to issue out IPPA licences so long the prospective developers or investors present their proposals on time.
“We are ready and our negotiating team is ready to consider proposals and decision can even be made within seven days,” said Siakalenge.
South Africa-based HBW are also the owners and developers of the Manda Hill shopping mall in Lusaka.
Labels: JOINT VENTURES, PHESTO MUSONDA, REAL ESTATE, RETAIL
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Govt urges small-scale miners to form joint ventures
Written by masa
Friday, September 25, 2009 6:01:56 AM
MINES minister Maxwell Mwale has urged small-scale miners to form joint ventures with international firms for them to develop the gemstone industry.
During the official opening of a Small Scale Miners Strategic workshop in Lusaka yesterday, Mwale, in a speech read on his behalf by mines permanent secretary Dr Godwin Beene, said it was time that the sector started attracting Foreign Direct Investments (FDIs) as the government was only in a position to create a conducive business environment for the sector.
“Just as the big mines are attracting FDI, it is time that the small-scale miners also started working with foreign investors if they are to get finances which will help in profitably running their business,” he said.
Mwale also urged the sector to become more organised so that it could start accessing finances from the local commercial banks.
“It is very important that we cause the banks and lending institutions to start championing the small-scale mining sector,” he said. “But this can only be done once you as miners realise that mining should be conducted like any other business venture.”
Mwale acknowledged the challenges that most miners experienced in accessing financial assistance but said the problem could easily be resolved if the miners took the time to learn how to write bankable business plans which could easily be accepted by the lending institutions.
Labels: GEMSTONES, JOINT VENTURES, MAXWELL MWALE, MINING
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Council to probe joint venture projects
Municipal Reporter
HARARE City Council will audit all joint ventures it entered with local and international companies after discovering that
money meant for some of the projects has vanished from bank accounts while others were stillborn.
The audit also seeks to establish whether the joint business ventures actually benefit council.
The decision follows the disappearance of an undisclosed amount of money deposited by an Italian company into a local bank to kick-start a joint waste management venture with Harare.
Recently council signed a joint venture agreement with Forekast of Italy to set up a waste management company.
However, mystery surrounds the deal after funds deposited by Forekast into a local bank disappeared.
According to minutes of the latest full council meeting, the funds cannot be traced.
A meeting between the city and officials from Forekast is scheduled within the next two weeks to discuss the missing funds.
It has also come to light that a joint venture between council and the National Oil Company of Zimbabwe to establish a jatropha plantation at Cleveland Dam is non-existent despite glowing reports by town clerk Dr Tendai Mahachi that 20 hectares of jatropha had been planted during the 2007/08 season.
He had reported in an earlier meeting that 150ha were to be planted in the 2008/09 farming season.
But at last Friday’s council meeting, councillors made it clear they did not want to be part of failure.
Clr Pumulani Musagwiza ignited the debate when he declared that the joint ventures were not benefiting council.
"The joint ventures are not bearing fruit," he said with particular reference to the jatropha project.
A visit by councillors to Cleveland Dam established that there was no jatropha plantation except for a few plants that council authorities are now describing as part of measures to conserve the environment.
The councillors called for the scrapping of the joint venture.
Clr Panganayi Charumbira said some of the joint ventures could not be justified and should be discontinued.
"I do not want to be part of failure. Some of the decisions on joint ventures do not make sense," he said.
Mayor Mr Muchadeyi Masunda joined the debate, saying any joint ventures that did not benefit the council would be dropped.
"We need a critical approach of where we are and whether to continue or drop them," he said.
He, however, dismissed allegations by Clr Charumbira that council was mortgaging the city without the consent of the residents and ratepayers, saying councillors — as representatives of the people — had the right and duty to make decisions on behalf of the people.
Council has entered into several joint ventures worth millions of United States dollars with local and international companies.
In September 2007, council signed a US$30 million joint venture with an Estonian company for the development of a residential suburb and a hotel around Warren Hills Golf Course, a shopping centre and a truck inn in Hopley.
The agreement also included commercial and residential development north of Arcadia and a link road between Enterprise Road South and Joshua Mqabuko Nkomo Road to provide direct passage from the city centre to the airport.
In October the same year, council signed a US$136 million agreement with a Qatar-based company to establish hotels and a casino business.
Under the joint venture with Vanessia General Trading, the two partners were supposed to build a hotel at the corner of Joshua Mqabuko Nkomo Road and Harare Drive and another at an undisclosed site and a shopping centre in Borrowdale West Extension.
Council has another joint venture with Dairibord Zimbabwe Limited to establish a dairy farming project.
Other local companies which council has deals with include Homelux Real Estates to upgrade McDonald Swimming Pool, completion of the restaurant, construction of lodges, and Shelter Zimbabwe for the development of houses along the Upper Mukuvisi (Chizhanje area).
Labels: HARARE, JOINT VENTURES
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Phosphate mining will require partnership, says Dr Mwansa
By Joan Chirwa
Tuesday July 22, 2008 [04:00]
THE development of phosphate mining in Zambia will require joint ventures between local and foreign investors to provide adequate raw materials for production of fertiliser at NCZ, mines minister Dr Kalombo Mwansa has said. And the Food and Agricultural Organization (FAO) has said high prices of farming inputs have become a major impediment to efforts by developing countries to increase agricultural production, with projections that most African countries will require at least US $1.7 billion to revive agricultural systems that have been neglected for several decades.
Dr Mwansa indicated that the Ministry of Mines was ready to speed up the process of issuing mining licences for phosphates in Petauke and Western Province once investors expressed interest to undertake the venture.
“Government is ready to dialogue with investors that may wish to develop where phosphate deposits have been found,” Dr Mwansa said. “The Ministry of Mines will work towards finding an investor who can be given a licence to mine phosphates to feed into NCZ and other countries as well. One company has so far expressed interest and we will look at what they want to offer before we make a decision on whether to issue them with a licence or not.”
A couple of weeks ago, the Ministry of Agriculture and Co-operatives called for speedy investments in phosphate mining as one critical input in fertiliser production, since high deposits have been found in areas such as Petauke.
Industry analysts say fertiliser prices are expected to exceed K220,000 by August this year as the price of the commodity has reached an all-time high of US $1,500 per tonne, on the back of rising oil prices on the international market and increasing demand of the commodity by agricultural producing countries worldwide.
The current surge in fertiliser prices means a 50 kilogramme bag of the commodity could even cost around K200,000 from an average K115,000 at the beginning of the last farming season.
The situation has been worsened by China’s recent imposition of an export tariff of between 100 per cent and 135 per cent on all fertilisers, which effectively took 2.4 million tonnes of urea out of the world market. The supply of phosphate is also an issue, which is mainly sourced from Morocco and China; where production is largely controlled by the government.
With the current market situation, it seems unlikely that additional mining capacity will be granted, which would ultimately weaken the current price. However, the Ministry of Agriculture says the government, through the Ministry of Mines should work towards finding an investor to produce phosphate in Petauke district in Eastern Province.
Dr Mwansa said the government’s desire is to have a partnership between local and foreign investors in the development of phosphate mines, in line with the country’s Citizen’s Economic Empowerment (CEE) Act.
“Local and foreign investors need to join hands in the development of phosphate mines in Eastern and Western Provinces because deposits have been found in these places,” Dr Mwansa said. “As government, we are ready to dialogue over this matter so that we can have phosphates being produced within the country to feed into fertiliser production at Nitrogen Chemicals of Zambia (NCZ).”
NCZ – Zambia’s only fertiliser producing company – currently imports all its raw materials, a situation that has pushed up its operational costs owing to the hike in prices of inputs at source. Having raw materials produced locally is expected to ease prices of fertiliser which have reached an all time high on both the international and local markets.
The situation, according to agricultural experts, is threatening the further growth of the industry, which is predominantly composed of small-scale farmers whose incomes are far less than the expected costs of producing crops under the current input prices.
It is expected that small-scale farmers, who account for over half of the country’s annual maize production, might not produce as much as they have been over the past few years due to rising costs of inputs.
The government is currently subsidizing inputs for vulnerable but viable small-scale farmers under the Fertiliser Support Programme (FSP), although the number of beneficiaries is far much less than those in need of subsidies. For every pack of FSP inputs, farmers pay 40 per cent of the total cost while the remaining 60 per cent is offset by the government.
For example, a total of eight bags of fertilizer (both top dressing and basal) is required to produce around 100 bags of maize from a hectare. This means an average small-scale farmers with a hectare of agricultural land needs about K1.7 million to produce an average of 100 (50 kilogramme) bags of maize if correct farming practices are employed.
Adding up other costs such as seed and labour, the figure could exceed K2 million for a hectare’s production. However, yields per hectare in the country have been far below the expected average of eight tonnes. From the previous season, yields per hectare have fallen to around 1.31 tonnes per hectare (about 1,300 kilogrammes or 26 of the 50 kilogramme bags of maize).
And if yields per hectare remain at the current level, then farmers will end up incurring high production costs with little crop coming out of their fields. For instance, if yields are maintained at 1.31 tonnes per hectare from inputs worth K1.7 million – considering the current prices of fertiliser – a farmer will only get around K1.2 million, calculated at the current Food Reserve Agency (FRA)’s maize price of K45,000 per 50 kilogramme bag.
And FAO stated that African countries affected by rising prices of farming inputs need at least a total of US $17 billion to start reviving agricultural systems that have been neglected for several decades. This amount, according to FAO, is just for immediate and short term measures during 2008-2009.
“High prices of agricultural inputs have become a major obstacle to developing countries' efforts to increase agricultural production. For the period January 2007 to April 2008, fertiliser prices in particular shot up at a much faster rate than food prices,” FAO stated.
The United Nations (UN) agricultural organization has widened its support to small-scale farmers in Africa under its initiative on soaring food prices, this time covering 54 countries, Zambia inclusive.
It has just approved a series of projects in Zambia and 47 other countries for a total value of US $21 million to help small-scale farmers and vulnerable households mitigate negative effects of rising food and input prices.
The projects will provide farmers with agricultural inputs as of this month for an expected duration of one year under FAO’s Technical Cooperation Programme and part of the organisation’s initiative on soaring food prices.
Labels: JOINT VENTURES, KALOMBO MWANSA, MINING, PHOSPHATE
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Tender Talk
By Zambia National Tender Board and The Post Newspaper
Tuesday May 13, 2008 [04:00]
When two organisations or individuals form a partnership or a joint venture, the outcome is that both partners benefit mutually in one way or the other. A partnership should improve and enhance both parties’ interests for the common good. The resultant synergy should add value to both organisations.
The Zambia National Tender Board (ZNTB) has embarked on a stakeholder sensitisation exercise aimed at strengthening its relations with clients, stakeholders and the general public. Yes, ZNTB believes that every organisation exists for and is reliant on the satisfaction of its clients and stakeholders.
It is with this view that the Zambia National Tender Board has made deliberate efforts towards developing and sustaining mutual relations with targeted groups of people. ZNTB believes that an enlightened society will add value to its operations and ultimately, to the quality of its service delivery.
To maintain such relations with clients, stakeholders and the general public, ZNTB has outlined a calculated communication and sensitisation programme aimed at increasing levels of awareness and understanding of the public procurement system in Zambia.
The media in whatever form, print or electronic, is a major stakeholder in information dissemination. It is imperative therefore, that deliberate efforts are made to work with and through the media to get specific information known to targeted groups of people.
The ZNTB is aware that as a public institution tasked to regulate and control public procurement, it has a duty and obligation to inform and educate clients about the vital role that public procurement plays in national development.
The growing interest by most, if not all, Zambians to keep track with what is happening in the public sector can no longer be overlooked.
The concern by the public to know how their financial resources are utilized and how the consequent provision of goods and services is undertaken has made it imperative for organisation such as ZNTB to begin to value their relations with clients more and make conscious steps to inform and educate them about their plans and activities.
And as a way of addressing this issue the ZNTB in collaboration with The Post newspaper have decided to start a stakeholder sensitisation column entitled ‘tender talk’. This column will discuss topical issues in public procurement and will explore in greater detail issues about tender procedures, tender regulations and procurement guidelines, the ZNTB Act and the current procurement reforms, to name but a few.
As ZNTB we give gratitude to The Post newspaper for giving us an opportunity to use this paper to push our cause forward.
It is true that society has its own perceptions of the public procurement system in Zambia. The perceptions can be factual or incorrect depending on how knowledgeable clients and stakeholders are. This column will help mold those perceptions.
As a public institution, we dedicate our efforts to our clients, stakeholders and the general public. We hope that this column will begin to address issues in public procurement and will help us clarify queries that may arise. Please look out for our weekly column every Tuesday and learn more about ZNTB and the public procurement system in Zambia.
Labels: JOINT VENTURES, PROCUREMENT SYSTEMS, TENDER OFFERS, THE POST, ZNTB
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Antila urges Zambians to partner with Finnish firms
By Chibaula Silwamba
Wednesday January 16, 2008 [03:00]
Finnish Ambassador to Zambia Sinikka Antila has urged Zambian companies to take advantage of the
Finnish Business Partnership (Finnpartnership) programme to form
joint ventures with their Finnish counterparts.
The Finnpartnership is an initiative aimed at promoting cooperation between Finnish companies and business-oriented organisations and those in developing countries to enhance economic growth, diversify the economy and exports and reduce poverty in developing countries.
Giving details of the Finnpartnership and its benefits to Zambian businesses, Ambassador Antila encouraged companies in the country to approach Finnpartnership to identify potential Finnish business partners.
“Other objectives of the programme are to mobilize Finish investments and transfer of technology to developing countries and this will be done through cooperation between partners in a developing country and Finland,” said Ambassador Antila in an interview on Monday in Lusaka.
“Finnpartnership has a website, www.finnpartnership.fi, where Zambian business owners can post their details and profiles and the Finnpartnership will find suitable partners from Finland for them to set up joint ventures with.
But the response from Zambia is very low because at the moment there are only three companies that have shown interest. I will be very happy if many companies can benefit from this programme because all these services are free of charge.”
She said once the partnerships between Zambia and Finnish companies were formed, the Finnpartnership programme could provide funds for carrying out business studies.
“In addition, the programme can help in identifying financing sources, including risk capital, if so needed. There are no sector limitations and a wide range of partnerships will be supported as long as there is a Finnish company or business-oriented organisation involved with the aim of establishing economic cooperation with a partner in a developing country,” Ambassador Antila explained.
“However, companies looking for Finnish partners should be well established and have export experience.”
She said the priority countries for the first years of the programme would be Finland’s long-term partner countries which include Zambia, Tanzania and Mozambique.
“Local cooperation funds administered by the Finnish embassy in Lusaka also plays an important role in the promotion of partnerships,” said Ambassador Antila. “These funds can be used by partners in Zambia for initial development of business ideas and identification of potential Finnish business partners.”
Labels: FINLAND, JOINT VENTURES
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Zim to get US$1,5bn oil refinery
Reuters-Herald Reporter.
Qatar-based firm funding project A QATAR company will invest around US$1,5 billion in Zimbabwe to build an oil refinery, in a show of confidence in the country’s economic potential. Venessia Petroleum is run by a member of Qatar’s ruling family and says it has confidence in Zimbabwe despite the current problems.
It plans to build a 120 000 barrels-per-day refinery in Harare, while its sister company will develop a five-star hotel in Harare, the company’s general manager Mr Jawhar Zaidi said on Monday. Government adopted a Look East policy to increase political and economic co-operation with friendly countries in the Far East and Middle East after Western countries led by Britain and the United States slapped Zimbabwe with illegal economic sanctions.
The blockade — which has hurt the economy and ordinary people — was the West’s way of opposing Zimbabwe’s land reform programme meant to empower the majority.
"We have been in the region for a while and we’re not worried about the political situation," Mr Zaidi told Reuters by telephone from Doha.
Consultants would start designing the refinery, costing as much as US$1,5 billion, by the end of the year once a feasibility study was completed, he said.
"We would look to import crude from Qatar or another Middle Eastern country," Mr Zaidi said.
Qatar has the world’s third largest natural gas reserves and is a member of the Organisation of Petroleum Exporting Countries. Venessia Petroleum is chaired by Abdulaziz Bin Mohammad Bin Jabor al-Thani, a member of Qatar’s ruling family, Mr Zaidi said.
The company, which operates overseas as Venessia General Trading, was set up as part of the government’s plans to help develop Qatar’s energy sector, according to Venessia’s website. Venessia General Trading is also investing in hotels and oil storage facilities in Malawi, Mr Zaidi said.
The company has permission to build a five-star hotel in Harare for about US$136 million, he said.
It has agreed a joint venture with the Harare City Council to establish a hotel and casino business in the capital.
A full council meeting heard last week that Harare would provide the land to build the hotel and technical expertise while the Qatar firm would chip in with money.
The Government has in the past two years signed deals with countries such as China and Iran to invest in areas including mining, agriculture and engineering.
In June Lonrho Africa plc announced a £100 million fund to finance companies and individuals intending to invest in Zimbabwe. The investment vehicle, called LonZim, will raise the money on the London Stock Exchange.
Commenting on the investment vehicle, Lonrho Africa executive Mr David Lenigas said Zimbabwe was ripe for investment and discerning investors should move in now since the country’s problems are bound to end at some point. — Reuters-Herald Reporter.
Labels: FDI, FUEL, JOINT VENTURES, ZIMBABWE
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Council in joint venture to build suburb
Municipal Reporter
HARARE City Council has entered into a US$30 million joint venture with an Estonian company for the development of a residential suburb and hotel on a 18,3 hectare piece of land around the Warren Hills Golf Course; a shopping centre and truck inn in Hopley; commercial and residential development north of Arcadia on almost 71ha; and a link between Enterprise Road South and Joshua Nkomo Road to give a direct route from the city centre to the airport.
The city will have 30 percent shareholding in the company, the shares bought by handing over land valued at almost US$6 million, with the Estonians having the bulk shareholding of 70 percent. The city council will provide land while the Estonians will be responsible for infrastructure development.
Details of the joint venture are contained in an internal council document dated 10 September and headlined: "Approval of the shareholding agreement between City of Harare and Augur Investments OU."
The agreement was signed by town clerk Dr Tendai Mahachi and Commission chairman Eng Michael Mahachi on September 4, 2007. Information on the joint venture had remained elusive with town clerk Dr Mahachi choosing to postpone the announcement of the apparently progressive partnership between council and foreign investors.
According to the council document, Augur Investments OU would provide funding amounting to between US$20 million and US$30 million with the city providing the land.
Mr Oleksandr Sheremet of Mt Pleasant represents Augur Investments OU in Zimbabwe.
The shareholding split was reached at taking into account the respective value of the contributions to the joint venture company by each shareholder.
According to the document, all heads of departments were consulted although sentiments are that some of the heads advised against the arrangement.
The Estonian company would have three board directors with the city having two.
The two parties would have equal decision making powers, some of which relate to the entry of new investors and the diversification of business activities other than those previously agreed upon.
If one of the parties chooses to dispose of its shareholding, first refusal would be given to the other party.
Labels: COUNCILS, JOINT VENTURES, THE HERALD
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