Story of the Day:
Dr Situmbeko Musokotwane is the country’s leading Monetary Economist and has built a reputation as a renowned statesman and efficient financial leader. Today he was appointed the new minister of finance and is the first person to be chosen to form part of Hakainde Hichilema’s cabinet. Read more
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Zambia’s new finance minister plans to more than double the southern African nation’s copper output in five years and strike a financing deal with the International Monetary Fund by October. Situmbeko Musokotwane, who President Hakainde Hichilema appointed to the job on Friday, said an economic program with the Washington-based lender will be key to restoring the nation’s credibility and help convince external creditors to extend payment terms. Read more: Bloomberg
With bids totalling K12.5 billion ($757 million) as offshores flooded the Zambian market, the central bank absorbed K2.5 billion ($151.5 million) of appetite, with strong interest in the 5 and 10 year tenors. Yields compressed 600bps on average with the 5 year rallying 799bps, while the 10 years eased 401bps respectively. Read more: The Business Telegraph
Zambia’s foreign exchange position has further been boosted by yet another trade surplus for the month of July 2021. The country recorded a trade surplus of K3.6 billion (about US$218 million) in July 2021 compared to a surplus of K5.7 billion in June 2021 indicating a 36.1% decrease. Read more: Zambian Business Times
The Zambia Revenue Authority (ZRA) has collected one point four billion Kwacha in the last three months at the Kazungula One Stop Border Post . Mr. Sikalinda says the one point four billion is a huge improvement compared to last year the same period where ZRA collected four hundred million. Read more: ZNBC
International Business and Finance
Kenya’s economic growth is projected to slow down to 5.9 percent in the 2022/2023 financial year due to the uncertainty associated with the general election, the National Treasury said in its budget review outlook paper released Friday. Read more: CGTN
The economic crisis caused by the COVID-19 pandemic could push as many as 39 million more people in Africa into extreme poverty this year, even as the continent’s economy is projected to rebound from its worst slump in half a century. The President of the African Development Bank (AfDB), Dr. Akinwumi Adesina, stated this at the ongoing virtual Africa Singapore Business Forum. Read more: Business Insider
The US central bank could begin withdrawing stimulus this year as the economy rebounds, the Federal Reserve’s chairman, Jerome Powell, has said. However, he said the bank was in no rush to raise interest rates despite a recent spike in inflation. Read more: BBC News
China has introduced a slew of regulation in the past few months, in part aimed at the tech sector — a move that’s spooked investors and wiped out billions of dollars in market value from the country’s internet giants. Read more: CNBC
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In 56 trades recorded on Friday, 543,708 shares were transacted resulting in a turnover of K752,837. A share price gain of K0.01 was recorded in Standard Chartered Zambia. A share price loss of K0.04 was recorded in Lafarge Trading activity was also recorded in ZCCM and Zanaco. The LuSE All Share Index (LASI) closed at 4,647.11 points, 0.04% up from its previous close of 4,645.12 points. The market closed on a capitalization of K61,020,561,159 including Shoprite Holdings and K26,237,875,719 excluding Shoprite Holdings.
Chart of the Day: