Story of the Day
Many people can relate to the euphoria and angst experienced when a credit or debit (respectively) SMS notification is received on their mobile device. However, many people do not know that the ability of their financial institution to keep them up to date with the activities on their accounts has been made possible through state-of-the-art applications that covey messages and emails to customers. One company that offers this particular service to banks and other institutions such as utilities is Wirepick Inc. Financial Insight had the privilege of visiting the Lusaka Zambia office that is currently headed tech veteran Frank Banda. According to the company’s website, Frank is described as at Creative and Results driven technology leader with over 17 years’ experience that can be summed up to include core banking from his days as a banker, Strategic Planner from his years in management, and project executioner for different types of financial services assignments. Read more
Local Business and Finance Sponsored By Liquid Intelligent Technologies
President Hakainde Hichilema says it is unacceptable that some local manufacturers promoting value addition are struggling to access raw materials such as Copper due to some conditions set by foreign entities. President Hichilema has further wondered why local companies like ZAMEFA should be made to buy Copper at an international price when the minerals are readily available in the country. The Head of State says such situations are what cause the cost of production among local manufacturers to be high. President Hichilema says the matter will be tabled in Cabinet and will be addressed as a matter of urgency. Read more: ZNBC
Mines and Minerals Development Minister Paul Kabuswe says a team of foreign investors has pledged to partner with local artisanal miners in provision of equipment and finance. Mr. Kabuswe says the team he met in Dubai intends to visit Zambia next month and finalise the deal. Read more: ZNBC
Minister of Small and Medium Enterprises Elias Mubanga says the country has seen a surge in SMEs as evidenced by the number of individuals visiting his ministry to obtain recommendations to access financing. And Mubanga says he will flag off the marketeer empowerment loans under CEEC this Thursday. In an interview, Mubanga said his ministry had witnessed an increased number of individuals seeking recommendations to access funds like the Zanaco $50 million package for SMEs, among others. Read more: News Diggers
Finance and National Planning Minister Dr Situmbeko Musokotwane has admitted that there was indeed more money in circulation under PF but argues that it was only available during the times the country borrowed. And Dr Musokotwane says the waiver of Visa requirements for a number of countries is in a quest to grow the country’s tourism base and economy. Meanwhile, Zambia Revenue Authority commissioner general Dingani Banda says the authority will this year pay K16.2 billion in VAT refunds. Read more: News Diggers
International Business and Finance
The war in Ukraine is the “single most important negative factor” for the world economy this year — and most likely for 2023 as well, IMF chief Kristalina Georgieva told CNBC Wednesday. “We judge the war in Ukraine to be the single most important negative factor for the world economy this year, most likely also next year,” she told CNBC’s Martin Soong on the sidelines of the Group of 20 meeting in Bali, Indonesia. Read more: CNBC
Officials from 21 Asia-Pacific economies are gathering in Bangkok as the Asia-Pacific Economic Cooperation ministerial meeting kicks off Thursday. Attendees for the group’s first in-person summit in four years includes Chinese President Xi Jinping, U.S. Vice President Kamala Harris and Japanese Prime Minister Fumio Kishida. Many leaders also attended the Group of 20 summit in Bali, Indonesia, earlier this week, where topics on the table included Russia’s war on Ukraine, energy and food security issues as well as supply chain disruptions. Read more: CNBC
A toxic combination of recession, soaring inflation, rising funding costs and lower liquidity is threatening to trigger financial market turmoil in the euro area, the European Central Bank has warned. Luis de Guindos, ECB vice-president, called for banks to take more provisions for bad loans, urged global regulators to make investment funds hold more liquid assets and said the central bank should be prudent in starting to shrink its €5tn bond stockpile next year. The ECB’s twice-yearly financial stability review said high inflation, a growing likelihood of a recession and rising financing costs “pose increasing challenges” for indebted households, businesses and governments and could produce more bankruptcies and financial market volatility. “All of these vulnerabilities could unfold simultaneously, potentially reinforcing one another,” the report added. Read more: Financial Times
The last time a British finance minister revealed tax and spending plans, markets went haywire and the country’s prime minister ultimately lost her job. The new government is not looking for a repeat performance. On Thursday, Chancellor Jeremy Hunt is due to unveil a budget that will aim to restore confidence in the United Kingdom’s ability to manage its public finances. But that may be easier said than done. The country is staring down the barrel of a grueling recession, and investors remain on edge as interest rates rise. That requires Hunt, who has acknowledged that Britain faces “extremely difficult” decisions, to pull off a delicate balancing act. Read more: CNN
Capital Markets Report
In 65 trades recorded yesterday, 48,897 shares were transacted resulting in a turnover of K113,069.66. A share price loss of K0.01 was recorded in CEC Africa on the quoted tier. Trading activity was also recorded in AECI, Copperbelt Energy Corporation Zambia, PUMA, Madison Financial Services, Standard Chartered Bank Limited, Zambia Breweries, Zambeef and Zanaco. The LuSE All Share Index (LASI) maintaned its close at 7,251.95 points. The market closed on a capitalization of K72,498,134,853.80 including Shoprite Holdings and K37,715,449,413.80 excluding Shoprite Holdings.