Story of the Day
Stanbic Zambia has extended a congratulatory message to the Zambian President and his team on the significant milestone towards enhanced home-grown economic reforms through the securing of the Board approval from the IMF for an extended credit facility. “Allow me to congratulate the President of the Republic of Zambia Mr. Hakainde Hichilema and indeed the Government of the republic of Zambia for working tirelessly to enhance the home-grown economic reforms by securing the IMF Board approval of the 3-year US$ 1.3 Billion Extended Credit Facility arrangement”, said Stanbic Zambia CEO Mwindwa Siakalima at an media event his bank cohosted at the Southern Sun Hotel with WWF Zambia on 1st September 2022 in Lusaka. Read more
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Zambia will not be paying its $750 million euro bond due in September until new terms of payment are agreed between the government and bondholders, its Finance Minister Situmbeko Musokotwane said on Sunday. The International Monetary Fund (IMF) on Thursday approved a $1.3 billion, 38-month loan programme, a step taken after its main creditors China and France agreed in July to negotiate to restructure the southern African country’s debt. “The bonds fall due (but) we will not pay on this basis. Let’s talk. Let’s agree on new terms before we can start servicing,” Musokotwane told local news channel ZNBC in an interview. Read more: MSN
Vice President Mutale Nalumango has said that the International Monetary Fund (IMF) deal has given Zambia an opportunity to restructure its debt and grow the economy. Mrs. Nalumango said that with the IMF deal, the people of Zambia will experience the availability of drugs in hospitals and the construction of schools. Read more: Lusaka Times
President Hakainde Hichilema says unlike in the past when Financial Intelligence Centre (FIC) reports were termed as witchcraft by those in leadership, there is now political will to act on financial crimes. Speaking during the Eastern and Southern African Anti-Money Laundering Group (ESAAMLG) Council of Ministers Meeting in Livingstone, Friday, President Hichilema said the FIC Reports were now receiving attention from him, his government and oversight institutions. “So we continue to leverage, to work with [the] Financial Intelligence Centre. For citizens of this country, they are aware that in the past, the Financial Intelligence Centre Reports were prepared, received and then put away somewhere in the shelves and that was the end of it. Read more: ZNBC
Ministry of Energy Permanent Secretary Francesca Zyambo says Government’s focus in the energy sector was changing towards the promotion of increased investment in renewable energy. Mrs. Zyambo indicated that this is to diversify the energy mix as the country had positioned itself to be a net exporter of power in the region. Mrs. Zyambo said this at a meeting organized by the International Solar Alliance for the African Region, in Addis Ababa, Ethiopia. Read more: Lusaka Times
International Business and Finance
The next prime minister of the U.K. will be announced Monday following a grueling, and at times bitter, leadership contest within the ruling Conservative Party. The announcement is expected at 12:30 p.m. London time and will be delivered by Graham Brady, the chair of the 1922 Committee, which is a group of Conservative Members of Parliament who aren’t government ministers. Read more: CNBC
Germany has announced a €65 billion package of measures to ease the threat of rising energy costs, as Europe struggles with scarce supplies after Russia’s invasion of Ukraine. The package, much bigger than two previous ones, will include one-off payments to the most vulnerable and tax breaks to energy-intensive businesses. Energy prices have soared since the February invasion, and Europe is trying to wean itself off Russian energy. Read more: BBC News
Members of the G7 have agreed to impose a price cap on Russian oil in a bid to hit Moscow’s ability to finance the war in Ukraine. Finance ministers said the cap on crude oil and petroleum products would also help reduce global energy prices. The cap will be set at a level based on a range of technical inputs. “We will continue to stand with Ukraine for as long as it takes,” the G7 said. Read more: BBC News
Porsche’s potential stock market listing is central to funding the carmaker’s electrification plans, Volkswagen’s chief financial officer said on Monday, adding that a final decision had not been taken. Volkswagen’s management and supervisory boards will meet later on Monday to discuss whether the long-anticipated listing of Porsche should go ahead in late September or early October. Read more: Reuters
OPEC+ is likely to keep oil output quotas unchanged for October at a meeting on Monday, five OPEC+ sources said, although some sources would not rule out a small production cut to bolster prices that have slid due to fears of an economic slowdown. The Organization of the Petroleum Exporting Countries and allies including Russia, known as OPEC+, meets as demand faces headwinds and supply could be boosted by returning Iranian crude if Tehran secures a deal with world powers on its nuclear work. Read more: Reuters
Capital Markets Report
In 43 trades recorded on Friday, 13,695 shares were transacted resulting in a turnover of K37,192. Share price gains were recorded in Airtel, Copperbelt Energy Corporation, PUMA and Standard Chartered Zambia, K0.21, K0.01, K0.02 and K0.05 respectively. Trading activity was also recorded in AECI, Bata, Madison Financial Services, Zanaco and CEC Africa on the quoted tier. The LuSE All Share Index (LASI) closed at 7,043.67 points, 0.43% up from its previous close of 7,013.48 points. The market closed on a capitalization of K71,591,525,541 including Shoprite Holdings and K36,808,840.101 excluding Shoprite Holdings.