Northwestern Chamber of Commerce, Trade and industry (NWCCI) has appealed to the Bank of Zambia to change the 10 billion stimulus package to a grant.

Stressing the importance of the grant and not a loan, NWCCI President Mukumbi Kafuta said it is difficult for businesses to benefit from the package because they might face challenges in repaying the loan.

Mr Kafuta said business owners are facing challenges to project how the business will thrive through this period making borrowing risky.

“ Most business owners already have loans and are having challenges to pay back making them more vulnerable though this Coronavirus period, “ he said.

The , NWCCI President told Zanis in an interview that the stimulus package is a good idea but it needs to be redone to ensure business benefit fully.

Mr Kafuta suggested that the Bank of Zambia must also ease the conditions to access the money by financial service providers as they are too rigorous.

He said these concerns are not only by business owners in the province but the Nation at large.

Mr Kafuta said they have since made submissions to the Ministry of Finance to ensure all businesses are sustained through this hard time because businesses are the engine of financial and development in the country.

Following the devastating impact of COVID-19 on the nation’s economy, government announced that it had released K 10 billion package for Small and Medium Enterprises ( SMEs) to access for their respective businesses.

President Lungu, said recently during his National address on COVID that the Ministry of Finance to simplify the modalities on how companies can access the ten billion Kwacha stimulus package which has been provided by the government.

President Lungu said the modalities should be communicated to businesses that have been affected by the pandemic.

The Economic Association of Zambia (EAZ) has defended the move by ZESCO to terminate the Bulk Supply Agreement with Copperbelt Energy Corporation , CEC.

Copperbelt EAZ Chairperson, Matthews Muyembe, who is also EAZ Chairperson for Energy says ZESCO has incurred huge loses in excess of half a billion dollars due to the Bulk Supply Agreement with CEC.

According to a statement issued told ZNBC News, Mr Muyembe said the Agreement was unfair to ZESCO by providing power supply exclusivity on the Copperbelt to CEC which neglected investment in infrastructure.

He said a result of this exclusivity, ZESCO constructed a new substation at its own cost to supply the Chambeshi Economic zone,but was later fined and had to pay 10 million Dollars to CEC because ZESCO had stepped on its turf.

The Association also notes that ZESCO has spent in excess of 100 million dollars in rehabilitating and expanding the Distribution Network on the Copperbelt for retail customers that was left in a dilapidated state from the year 2000, the cost which should
ave been borne by CEC.

He said ZESCO had to pay CEC close to 12 million dollars annually, to transmit it’s own power meant for supply to Copperbelt retail consumers sitting behind the CEC owned infrastructure.

The Economics Association of Zambia further argues that CEC was not transparent on metering as they failed to provide access to its meters or metering data to show the true peak consumption by the mines.

Mr Muyembe said this meant that ZESCO was losing revenue on unaccounted for power ranging from 50 to 100MW monthly, which is equivalent to approximately 67.2 million dollars annually.

He further said ZESCO was at the same time importing power at a higher rate from other utilities in the region and selling the same to CEC at a lower rate resulting to a loss of about 120 million dollars annually.

Mr Muyembe said BSA was, therefore, unsustainable and impacted negatively on retail consumers and on the future of ZESCO as power producer.

Chinese President Xi Jinping has said that China will cancel debts for African states worst hit by the coronavirus pandemic.

Speaking at the Extraordinary China-Africa Summit on Solidarity against COVID-19 in Beijing, 17 June 2020, the Chinese President said the sudden onslaught of COVID-19 had taken a heavy toll on countries around the world and has pledged his country’s total commitment to ending the pandemic.

Jinping said the Chinese people had put up a fierce fight and made enormous sacrifice to bring the situation in China and Africa under control.

“First, we must stay committed to fighting COVID-19 together. China will continue to do whatever it can to support Africa’s response to COVID-19,” he said.

Jinping said that China will lose no time in following through on the measures announced at the opening of the World Health Assembly, but would continue to help African countries by providing supplies, sending expert teams, and facilitating Africa’s procurement of medical supplies in China.

He said China would start ahead of schedule the construction of the Africa CDC headquarters this year and would work with Africa to fully deliver the health care initiative adopted at the FOCAC Beijing Summit, as well as speed up the construction of China-Africa Friendship Hospitals and the cooperation between paired-up Chinese and African hospitals.

“In the face of COVID-19, China and Africa have offered mutual support and fought shoulder to shoulder with each other,” he said.

Jinping said that COVID-19 was still affecting many parts of the world and that both China and Africa face the formidable task of combating the virus while stabilizing the economy and protecting people’s livelihoods.

“We must mobilize necessary resources, stick together in collaboration, and do whatever it takes to protect people’s lives and minimize the fallout of COVID-19,” he said.

Jinping further said that within the FOCAC framework, China will cancel the debt of relevant African countries in the form of interest – free government loans that are due to mature by the end of 2020.

“For those African countries that are hardest hit by the coronavirus and are under heavy financial stress, China will work with the global community to give them greater support, by such means as further extending the period of debt suspension, to help them tide over the current difficulty.

We encourage Chinese financial institutions to respond to the G20’s Debt Service Suspension Initiative (DSSI) and to hold friendly consultations with African countries according to market principles to work out arrangements for commercial loans with sovereign guarantees,” Jinping said.

“China will work with other members of the G20 to implement the DSSI and, on that basis, urge the G20 to extend debt service suspension still further for concerned, including those in Africa,” he said.

Meanwhile, Jinping said that in the face of COVID-19, China and Africa had enhanced solidarity and strengthened friendship and mutual trust.

He pledge that once the development and deployment of COVID-19 vaccine is completed in China, African states will be among the first to benefit.

Jinping also said China shall always remember the invaluable support Africa gave the Chinese at the height of battle with the coronavirus.

“In return, when Africa was struck by the virus, China was the first to rush in with assistance and has since stood firm with the African people,” Jinping said.

“I am convinced that humanity will ultimately defeat the virus, and that the Chinese and African people are poised to embrace better days ahead,” added Jinping.

The summit was attended by South African President Cyril Ramaphosa, Macky Sall the president of Senegal, Moussa Faki Mahamat Chairperson of the African Union Commission and Antonio Guterres the Secretary General of the United Nations.

Others were Tedros Adhanom Ghebreheyesus, Director General of the World Health Organization, Heads of States while other world leaders followed the proceedings via video link.