Story of the Day:
On 14th November 2019, the central bank through its communication mechanism to commercial banks raised the Overnight Lending Facility (aptly known as OLF) to 17.75% above the prevailing Central Bank policy rate from 7.75%, according to the Circular signed by Dr. Francis Chipimo, Deputy Bank of Zambia Governor in charge of Operations. Read more
Local Business and Finance
President Edgar Lungu says he is optimistic that the discussions that the government is having with the International Monetary Fund (IMF), will continue yielding tangible results. Read more: Lusaka Times
The Zambian Government has paid $27 million to Eskom of South Africa for the importation of 300 megawatts of electricity for a period of one month. Finance Minister Bwalya Ng’andu told Journalists in Lusaka this morning that a bank transfer of the amount to Eskom was made on Thursday. Read more: Zambian Observer
Zambia is likely to refinance its first US $750 million Eurobond that falls due in less than three years’ time because the country remains at high risk of defaulting, says the Centre for Trade Policy and Development (CTPD). Read more: News Diggers
Upepo Energy, a United States-based company, will invest US$200 million in a wind renewable energy plant in Mpongwe district in the Copperbelt Province. Read more: Zambia Daily Mail
Goverment says tight economic conditions are putting pressure on the domestic business environment, which has resulted in the reduction of the gross domestic product (GDP) growth rate to less than three percent this year. Read more: Zambia Daily Mail
International Business and Finance
MTN and Huawei signed a memorandum of understanding to establish a Joint 5G Innovation Program to assess and work on new technologies such as 5G and Artificial Intelligence (AI) in Africa. Read more: MSN
An ambitious draft budget presented to the National Assembly of the Democratic Republic of Congo. More than US$10 billion is needed for the various projects to be carried out in the 2020. This is an increase of 63.2% compared to 2019. Read more: Bloomberg
The European Union is to stop funding oil, gas and coal projects at the end of 2021, cutting €2bn (£1.7bn) of yearly investments. The European Investment Bank (EIB), the EU’s financing department and world’s largest public bank, will bar funding for most fossil fuel projects. Read more: Reuters
Countries including Australia have asked for trade compensation from the UK and the EU over Brexit disruption.
Fifteen countries, including the US, India and New Zealand, have been setting out Brexit concerns at a World Trade Organization (WTO) meeting in Geneva. Read more: BBC News
Luxury carmaker Mercedes-Benz is to cut jobs with the aim of making more than €1bn (£840m) in savings by the end of 2022, its owner Daimler has said. The cuts – which reports say will lead to more than 1,000 jobs being lost – come as the carmaker faces challenges from new, tougher emissions targets. Daimler said that meeting new CO2 targets required “high investments”. Read more: BBC News
Credit Suisse on Thursday noted that Tesla has nearly an 80% share of the U.S. market for electric vehicles but the firm expects that the automaker’s “unique position” with its Model 3 will face a serious challenge from Ford next year. Tesla’s shares are expected to dive 40%. Read more: CNBC
Capital Markets Report
In 2 trades recorded yesterday, 915 shares were transacted, resulting in a market turnover of K1,606. A share price loss of K0.02 was recorded in CEC Zambia. The LuSE All Share Index (LASI) closed at 4,308.10 points down by 0.02% from its previous close of 4,315.91 points. The market closed on a capitalization of K56,736,851,032 including Shoprite Holdings and K22,497,645,052 excluding Shoprite Holdings.
Chart of the Day: