ethanol


Choose Your Language Of Preference Below

French Version German Version Russian Version Spanish Version

Portuguese Version Chinese Version Arabic Version 

LUSAKA, November (28) – A unit of South Africa’s Standard Bank has tendered to finance a $1.07 billion crude oil feedstock purchase deal for mineral-rich Zambia, a senior government official said on Wednesday.

Energy and Water Development acting permanent secretary, Oscar Kalumiana, said Stanbic Bank Zambia Plc and Finance Bank Ltd., another local bank were competing for a two-year financing contract for Zambia’s 1.4 million tonnes crude oil requirements.

Zambia, which has faced intermittent fuel shortages due to problems in procuring crude oil for its vast copper and cobalt mines and other sectors of the economy will announce the successful bank by mid-December, Kalumiana said.

“The two banks submitted technical financial proposals through the Zambia National Tender Board (ZNTB). We are evaluating the proposals and will select one of them before mid-December,” Kalumiana told journalists from state media.

Officials say the government is currently scrutinizing tender documents for five foreign oil trading firms which want to start procuring oil for the country.

Kalumiana said the government had requested local banks to participate in the financing to pay for the feedstock supplied in order to access funds quicker, especially for upfront costs.

“It (oil deal financing) will be a revolving facility with each shipment to last one and a half months at $67 million per oil shipment at current prices and we need eight shipments in a year. The banks have other charges and their bids will be graded depending on who has the best structure,” Kalumiana added.

He said Zambia and French oil major Total, which are equal shareholders of the country’s sole Indeni Oil Refinery, had agreed to get a local bank to finance the purchase of oil.

“We agreed with Total that instead of the two shareholders providing the money, we should let the money come from the private sector because the business is profitable. The local banks will be getting their money (after) the fuel is sold,” Kalumiana said.

In October, Zambia — which uses huge amounts of diesel to run its vast copper mines, the country’s economic lifeblood, and other industries — faced severe fuel shortages after Total stopped crude oil imports for the country over a pricing dispute.

Commoditex International of the United Kingdom, Russia’s Lukoil International Trading and Supply Company, Trafigura of Italy, Addax and Oryx Group of France and Independent Petroleum Group of Kuwait are the firms that tendered to procure oil for Zambia.

According to ZNTB data, the oil traders have submitted bids with prices ranging from $65.69 per tonne for crude oil from Iran to $76.15 per tonne of Oman.

Officials say the government turned to local banks for financing after Citi Bank of the United States in October declined to provide financing for crude oil Zambia wanted to purchase from Iran due to an embargo for U.S firms against dealing with Iran.

Choose Your Language Of Preference Below

French Version German Version Russian Version Spanish Version

Portuguese Version Chinese Version Arabic Version  

Seattle Times staff columnist

Our relationships with the rest of the world need some updating.

Things are changing. A large delegation from Zambia was in Seattle this week making a case for investment, not charity, as the cure for poverty.

It’s an argument many in Africa have been making for years, usually in the other Washington.

While few in the world’s leading capitalist nation are biting, China is pouring money into the continent in search of influence and profit. In Zambia, the Chinese invest in mining, retail and construction.

Viewed from the U.S., Africa seems a solid mass of disease, war, unstable dictators and rampant corruption.

The Zambian delegation, including the country’s president, argued that this view is full of stereotypes that do not apply to their country.

home-large.jpg

Zambia is a country of 12 million in southern Africa. Copper mining is central to the economy, but tourism, manufacturing and agriculture are growing.

The Zambians were invited way out west to Seattle by the Initiative for Global Development, which believes eradicating deep poverty would eliminate many of the ills, including diseases and conflicts, that afflict the planet.

Members call themselves “business leaders working to end poverty.”

Getting people out of poverty is the right thing to do, but it also can be profitable for business and relieve governments in developed nations of numerous international headaches.

The U.S ambassador to Zambia has said a stable Zambia contributes to the U.S. goal of peace, democracy and economic growth in southern Africa.

IGD was founded three years ago by Bill Gates Sr.; Daniel J. Evans, the former senator and governor; former EPA administrator Bill Ruckelshaus; Weyerhaeuser heir Bill Clapp; and John Shalikashvili, former chairman of the Joint Chiefs of Staff.

The delegation also scheduled meetings at Starbucks, Microsoft, Boeing and elsewhere.

levy_combine300.gifAt the session I attended, the president, Levy Mwanawasa, and his ministers made a compelling case for investment. How’d you like to pay no taxes on business earnings?

They talked about their new zero-tolerance policy on corruption and their commitment to democracy, stability and economic growth.

And, said the minister of commerce, trade and industry, the weather is perfect.

What are we waiting for?

Well, actually, the weather isn’t perfect. It gets pretty hot there, and then there is the matter of infrastructure, and if they have cured corruption they are the only nation anywhere to have done so.

Zambia still has problems, but curing poverty would help solve them.

Business investment (not exploitation) is necessary.

Mwanawasa invited American entrepreneurs to visit and see that “the truth is the opposite of what you think is true.”

It’s not exactly the opposite, but Zambia seems to be at a point where investment could benefit Zambians and offer the U.S. new opportunities to make money and make friends.

Jerry Large’s column appears Monday and Thursday. Reach him at 206-464-3346 or jlarge@seattletimes.com.

Copyright © 2007 The Seattle Times Company

London Based Recruiter In Houston – Global Career Company Ltd

Choose Your Language Of Preference Below

French Version German Version Russian Version Spanish Version

Portuguese Version Chinese Version Arabic Version 

$200m sugarcane project launched
By ANGELA CHISHIMBA
 

PRESIDENT Mwanawasa yesterday launched the Nakambala sugarcane expansion project estimated to cost US$200 million. President Mwanawasa said the expansion project had put Zambia in the league of the major sugar producers in the world.

“It is good that Zambia will not only be known by its production of copper but sugar as well,” he said.

The project would expand the country’s sugar exports mainly to the European Union.

He said the project would ensure increased income and creation of more jobs.

The President said the production of ethanol by Zambia Sugar would also help reduce the import bill for petroleum.

He was confident that most of the US$200 million to be pumped into the expansion programme would come from Zambian banks, which would in turn derive profits out of it.

Mr Mwanawasa urged Zambians to position themselves and ensure they benefited from the project.

He appealed to the Zambia Sugar management to continue supporting indigenous Zambians in order to support the Citizens Economic Empowerment Act.

He urged management to assist local people to take advantage of business opportunities that may arise following the launch of the expansion programme.

He was glad that Zambia Sugar Company decided to invest in Zambia at a time when most investors feared to invest in the country.

He said Zambia was an investor-friendly country.

He paid tribute to traditional leaders in Southern Province for releasing land to put up the Albidon Nickel Mining and Zambia Sugar expansion projects.

Mr Mwanawasa also urged investors to pay attention to concerns of local communities.

“Investors should ensure that they take the owners of the land on board,” he said.

President Mwanawasa also held a meeting with the company to discuss labour matters.

He could not, however, disclose what had been discussed.

And Zambia Sugar managing director, Paul de Robillard, said the sugarcane expansion project was approved at a cost of K840 billion on March 28, 2007.

The project is based on a 50 per cent increase in cane crushing capacity of the factory, linked to expanded sugar cane growing and the construction of new canals to deliver irrigation water to new areas of sugarcane development.

The project will also result in Zambia Sugar becoming fully self-sufficient in its own electricity requirements.

Mr de Robillard said the anticipated growth in production would come from a combination of Zambia Sugar’s own estate operations, commercial out-growers and small-scale grower schemes, both new and existing, totalling 10,500 hectares.

He said the first phase of the expansion had started and would be completed in time for the sugar season in April 2008.

Mr de Robillard said as an alternative market, the unrestricted European market access entitlements for least-developed countries (LDCs), including Zambia, to be effected in 2009, would provide a minimum underpin price for the increased production.Under the EU reformed sugar regime, the price for bulk raw sugar would be guaranteed at a level that is 33 per cent lower than the existing price.

Mr de Robillard said the unrestricted nature of this initiative for sugar exporters in LDCs would also enable Zambia access the full value chain existing in the EU sugar market.

This would open opportunities to earn commercial premiums currently not available to exporters due to the EU’s restricted quota system.

He said molasses production would increase to 95,000 tons by the end of the project and at that stage, a feasibility study to investigate the production of alcohol for national fuel pool would be undertaken.

“It is envisaged that if viable, an ethanol plant would be able to supply approximately 10 per cent of the country’s fuel requirements,” he said.

Source: Zambia Daily Mail