Story of the Day
Last week, a friend who has embarked on some businesses over the last one year called me and asked for a short meeting for business advice. In my mind, I thought it was the usual capital raising, debt structuring, sales and tax advisory that am specialized at and hence went to that meeting without any form of preparation. However, it turned not be a business consultancy meeting but a lamentation session of an entrepreneur who doesn’t feel supported by family and friends. This friend of mine is running a fashion and ladies accessories line and expects all her workmates, family, and friends to buy her products. Whenever, we embark on the entrepreneurship journey, one of the things or places we look to for support is our social networks; friends, family, and associates. However, sometimes these networks don’t work positively for entrepreneurs and can lead to disappointment. When you’re in the throes of being soooo excited about your shiny new business and the new life you are creating for yourself, it’s easy to assume that your friends and loved ones will be super happy for you and super supportive. But what if they’re not? Read more
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Zambia will this September host Finance, Justice and Home Affairs Ministers from 21-countries under the Eastern and Southern African Anti-Money Laundering Group (ESAAMLG) Councils of Ministers. The Group is a Financial Action Task Force and a global inter governmental body that sets standards to protect the international financial system against money laundering, terrorist financing, and the financing of proliferation of illicit arms. This is according to a statement issued by Secretary to Treasury Felix Nkulukusa. Read more: ZNBC
Finance and National Planning Minister Situmbeko Musokotwane says the International Monetary Fund (IMF) bailout package for Zambia will most likely be concluded in early September 2022 and not at the end of August as earlier indicated. Dr. Musokotwane says this is because some IMF staff were on recess for their summer leave. The Minister says he is confident that the IMF Board will in early September pass a resolution to conclude the debt relief programme for Zambia. Dr. Musokotwane said this in an exclusive interview with ZNBC’s Masauso Mkwayaya in Kalabo District – Western Province. Read more: ZNBC
Zambia continues to lead its peers in Africa after the Lusaka Securities Exchange All Share Index rebounded to a 3 point whisker level below its all time high at 7,006.3. This resilient stock performance by stocks surpasses that of the bond market. Stock prices in general are trading 19.19% stronger than bonds which close to 400 basis point below in dollarized terms. Read more: The Business Telegraph
Post COVID19 recovery is spelling sales recovery prospects for Anheuser – Busch InBev subsidiary Zambian Breweries Plc that grew its top line by 27% in 1H22 to K1.64 billion according to stock exchange news release on the local bourse. Demand fundamentals have restored to pre-pandemic levels and this has continued to support business for the brewer. However the Lusaka Securities Exchange listed brewer incurred a 473% widening in financing costs, likely on account of rising dollarized interest costs, that softened after tax earning 19% to K72.9 million. Read more: The Business Telegraph
Finance Minister Situmbeko Musokotwane has yet again given mining companies more tax exemptions by suspending import taxes on mining equipment and machinery. This is additional to the making of mineral royalty tax deductible which resulted in the country losing about $200 million in lost revenue. Mineral Royalty Tax (MRT) was introduced to bring certain loss making mining companies on the tax base as most mining corporations were declaring losses and the tax authorities have no capacity to find loopholes in their tax declarations, which made it difficult to tax the mines. However, the UPND government in the 2022 budget gave mining companies a tax holiday by reintroducing deductibility of the mineral royalty tax, a move stakeholders described as retrogressive and government has continued to give more concessions to mines which only benefit the mines. Read more: Zambian Business Times
Copperbelt Energy Corporation (CEC) says it will leverage its extensive power infrastructure to set up electric motor vehicle charging points in support of the motoring evolution. CEC chief projects officer Vincent Nyirenda said his organisation applauds Zesco’s recent announcement that it intends to set up electric vehicle charging points nationwide. He said CEC is eager to partner with, and support Zesco’s initiative because the company has extensive power infrastructure that includes 43 substations, particularly on the Copperbelt. “CEC, working with Zesco, can revolutionise the electric motor vehicle market by providing sufficient charging points for people that want to use electric motor vehicles,” Mr Nyirenda said. Read more: Zambia Daily Mail
International Business and Finance
The Chinese government plans to forgive 23 matured interest-free loans for 17 African countries. While disclosing this during his address at the recently held Forum on China-Africa Cooperation, Chinese foreign minister Wang Yi said the move demonstrates China’s commitment to fostering stronger economic ties with the African continent. The foreign minister added that this demonstrates how the Chinese government backs up its words on African development with concrete action. Although the 17 countries were not named, checks by Business Insider Africa show that Djibouti, Angola, the Democratic Republic of Congo, Kenya, Uganda and South Africa are among African countries with high debt exposures to China. Read more: Business Insider
Business activity at private US companies in early August dropped off at some of the sharpest rates seen since the beginning of the pandemic as rising interest rates and high inflation crimped consumer spending, according to data released Tuesday. The latest S&P Global preliminary flash composite purchasing managers index, or PMI, registered a level of 45 as of August 22, down from 47.7 in July. Read more: CNN
Stock futures were little changed in early Wednesday morning as investors await more guidance from Federal Reserve Chairman Jerome Powell on the central bank’s tightening path. Futures on the Dow Jones Industrial Average, S&P 500 and Nasdaq 100 were all roughly flat. Both the Dow and the S&P 500 declined for a third straight session Tuesday amid relatively thin trading volumes. The tech-heavy Nasdaq Composite finished Tuesday little changed. The S&P 500 is about flat on the month after rallying more than 9% in July. Read more: CNBC
The World Bank on Monday gave $300 million to Mozambique in a deal that marks the resumption of its support to the country six years after it suspended aid following a financial scandal involving the government. The funds disbursed by the multilateral organisation in the form of a grant will be used for infrastructure projects to support the economy and improve the living conditions of the population, said Mozambique’s finance minister, Max Tonela. Read more: African News
Capital Markets Report
In 137 trades recorded yesterday, 45,437 shares were transacted resulting in a turnover of K82,730. A share price gain of K0.32 was recorded in Real Estate Investments Zambia. A share price loss was recorded of K0.01 in CEC Africa on the quoted tier. Trading activity was also recorded in AECI, Copperbelt Energy Corporation, Investrust, National Breweries, Standard Chartered Zambia, Zambeef, ZAMEFA, Zanaco and Zambia Sugar. The LuSE All Share Index (LASI) closed at 7,010.41 points, 0.06% up from its previous close of 7,006.26 points. The market closed on a capitalization of K71,446,730,989 including Shoprite Holdings and K36,664,045,549 excluding Shoprite Holdings.