Story of the Day:
Instant loan application Lupiya has been selected for Google’s first ‘Black Founders Fund’, an initiative started by the $2 trillion company in order to promote African Founders. Lupiya became famous as the first female led start-up to raise over $1million in investment last year. 70% of Zambians currently do not have access to formal banking, Lupiya aims to fill that gap with cheap loans with reasonable terms to female entrepreneurs. Lupiya is the first Zambian company to receive google funding. Read more
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In Zambia, the newly elected government announced an increase of US$2 billion in debt owed to foreign creditors. External debt in the resource rich but impoverished country reached US$14.48 billion this year, over 60% of gross domestic product. Of the total debt, China is the largest foreign creditor. Zambia owes China US$6.18 billion including unpaid interest. Read more:MSN
Despite elevated inflation in the 20’s money markets in the red metal producer continue to see increased appetite for government securities. Last Thursday’s treasury bill sale raised K1.4 billion out of a total of K3.4 billion in bids whose concentration was in the one year tenor paying 13.9998%. Read more: The Business Telegraph
Consumer Unity and Trust Society (CUTS) Centre Director Dr Claudia Pollen says the persistent depreciation of the Kwacha signifies serious structural imbalances in the domestic economy. And Dr Pollen has disclosed that the youth unemployment rate increased from 44.3 percent in 2019 to 45.5 percent in 2020. Read more: News Diggers
The Zambia National Farmers Union (ZNFU) has expressed optimism that the 2022 National Budget will address the high cost of production in the farming business. ZNFU spokesperson Calvin Kaleyi said the union is calling on government to look into the burden of taxes and fees to farmers which are not compliant with the risk of farming business. Read more: Lusaka Times
International Business and Finance
Most of the world’s nations have signed up to a historic deal to ensure big companies pay a fairer share of tax. Some 136 countries agreed to enforce a corporate tax rate of at least 15%, as well a fairer system of taxing profits where they are earned. Read more: BBC News
Corporate profits soared in the first half of this year, largely because of favorable comparisons to last year’s weak earnings. The Covid shutdown of the economy hit major companies hard in the first half of 2020. But as companies get set to report their third-quarter results in the next few weeks, some Wall Street analysts are concerned the rate of earnings increases will start to slow. This may be the peak for the foreseeable future. Read more: CNN
U.S. Treasury Secretary Janet Yellen said on Sunday that it will be lawmakers’ responsibility to raise the federal debt limit and expressed confidence that Congress would do so after the temporary reprieve runs out on Dec. 3. Read more: Reuters
September’s wage gains provided more fuel to the argument that the current pace of inflation could run longer than many economists anticipate. Read more: CNBC
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In 5 trades recorded on Friday, 82,000 shares were transacted resulting in a turnover of K159,036.00. Trading activity was recorded in ZAFFICO, British American Tobacco Zambia, Copperbelt Energy Corporation, Zanaco and ZCCM. The LuSE All Share Index (LASI) maintained its close at 4,978.43 points, as there were no share price movements.
Chart of the Day: