By JAMES KUNDA –

.CEC

THE Commonwealth Development Corporation (CDC) Group plc has pushed in a bid to acquire a majority stake in the Copperbelt Energy Corporation (CEC), with a capital injection of US$380 million.
CDC Group plc is a development finance institution owned by the UK government.
Meanwhile, Tullow Oil plc, a British multinational firm conducting oil and gas exploration in Northern Province has completed aerial mapping of the area and expressed high optimism that oil does exist.
Special Assistant for Press and Public Relations to President Edgar Lungu, Amos Chanda confirmed this at a media interactive forum in Lusaka on Saturday.
“The vice-president of Tullow issued an executive brief to the President and there is high optimism that oil exists in that part of the country; the prospects of recording a positive result are high,” Mr Chanda said.
Mr Chanda said a cautionary statement on the bid had been issued on the London Stock Exchange (LSE), where CDC is listed and the Lusaka Stock Exchange (LuSE) where CEC is listed.
He said the CDC bid was intended to enhance the institutional capacity of CEC and that CEC, Zesco and the Ministry of Energy had made headway in negotiations on the bulk supply agreement prior to Cabinet approval.
Mr Chanda said the impending CDC investment was a sign of huge investor confidence by the international community in the social and economic governance of the country by President Lungu.
He said the planned takeover of CEC was essential to honing the firm’s operational capacity in the electricity sub-sector.
“Since the President took office in 2015, the country has recorded foreign direct investments in excess of $5 billion in the major sectors of the economy; energy being one of them. This just shows you how much investor confidence the country continues to enjoy,” Mr Chanda said.
CDC head of Infrastructure, Sameh Shenouda told the group’s website recently that CDC’s bid for CEC would increase both renewable power generation in Zambia and the growth of regional power trading.
“CEC is one of Zambia’s leading companies, but we believe it has much more to offer. Under CDC and AP Moeller’s ownership it is planned that CEC will bring an additional 150 Mega Watts (MW) of renewable generation to the Zambian network and increase the amount of much-needed power available. Our proposal has the support of the Zambian Government who recognise the long-term, positive role that CDC has played in the economic development of the country,” he said.
A.P Moller Capital’s managing partner and Chief executive officer Kim Fejfer added; “With this investment, we believe we can support further development of Zambia’s power generation capacity and infrastructure”.
Mr Chanda said Finance Minister Margaret Mwanakatwe was this week expected to issue a policy statement on the already existing economic stabilisation and growth trajectory of the country, enshrined in the indigenous programme dubbed Zambia-Plus and the Seventh National Development Plan (7-NDP).
Mr Chanda said following the improvement in copper prices on the international market to more than $6,000 per tonne, mining companies on the Copperbelt Province had started re-hiring the workforce shed off during the price crunch of 2015 and 2016.
He announced that Konkola Copper Mines (KCM), Mopani and Baluba mine in Luanshya were re-hiring people and committing to expand operational capacities.
Mr Chanda said the ex-miners who sought total deviation from mining following their empowerment with land by Government, had opted to pursue other ventures such as agriculture production.
He said following intervention and guidance by the Head of State, the Copperbelt small-scale miners, commonly known as Jerabos would this week realise a win-win situation over the operations of the Nkana copper-slug heap in Kitwe commonly known as Black mountain.
Mr Chanda wondered why former Nigerian president Olusegun Obansanjo was on record criticising the country’s mineral policy regime at the recently held mining indaba in Cape Town, South Africa.
Mr Chanda said public schools had started recording improvements in pupil performance following the Government’s hefty investments in infrastructure development aid recorded of late.
He wondered why people were criticising the Government for the removal of street vendors from the Lusaka central business district yet the new City market, to be built soon replacing the gutted structure, would accommodate 23,000 traders.
Mr Chanda said the status quo on the streets of Lusaka was permanent and the 8,000 ex-street vendors had been relocated to strategic locations much more ideal for merchandising.