Story of the Day:
Secretary to the Treasury Felix Nkulukusa says Zambia has finalized the guidelines and listing rules for issuance of green bonds to support climate related projects. Mr. Nkulukusa says the finalization of regulations creates credible opportunities for raising financing through green bonds for climate change projects and green growth. “To promote green bond trading, we have provided tax exemption on withholding tax on interest income earned on green bonds with a maturity of at least three years. We are also in the process of developing legislation to regulate the carbon market,” he said while addressing the United Nations Conference on Trade and Development (UNCTAD) forum on financing for recovery and development in an era of interrelated global crises (Covid-19, Climate Change & Russia-Ukraine Conflict), in Geneva, Switzerland. Read more
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British High Commissioner to Zambia Nicholas Woolley says the UPND government’s corruption stance has boosted British investments in the country. And German Ambassador to Zambia Anne Wagner Mitchell has urged government to walk the talk and scale up interventions that curb corruption. Speaking during Zambia Anti-Corruption Conference, Thursday, Woolley said British companies avoid investing in countries with a high corruption risk. “Corruption damages society by degrading the vital institutions that uphold the rule of law, eroding trust among citizens and attracting criminals, intent on doing harm. Zambia has worked hard for its reputation as a democratic stalwart in the region and destination for UK and global investors. Read more: News Diggers
First Quantum Minerals has agreed to convert dividends from its Zambian copper mine Kansanshi to a revenue royalty, the Canadian firm said today. The agreement follows fiscal changes implemented by Zambian president Hakainde Hichilema shortly after his election in 2021 in which royalties were made tax deductible. In terms of the agreement, Zambia’s government-controlled ZCCM-IH will receive 3.1% in a revenue royalty from the mine which is forecast to produce between 140,000 and 150,000 tons for the financial year ended December 31. Read more: Mining Mx
Finance Minister Situmbeko Musokotwane says there is untapped resource in the private sector for economic growth. Dr. Musokotwane says this is why Government has created platforms such as the Public Private Dialogue Forum -PPDF. In a speech read on his behalf by his Permanent Secretary for Monitoring and Evaluation Trevor Kaunda, the Finance Minister added that the private sector should take advantage of the enabling policy environment to expand their businesses. Dr. Musokotwane said this during the official opening of the Sensitization Workshop on leveraging private sector engagement in implementing the 8th National Development Plan and achieving the Sustainable Development Goals-SDG’s. Read more: ZNBC
Vice President Mutale Nalumango has called on COMESA member states to utilize the Free Trade Area and promote intra-Africa trade. Mrs. Nalumango says the COMESA Free Trade Area has a huge potential for African countries to trade amongst themselves and increase the volume of goods and services being provided. Speaking when she opened the forty third Meeting of the COMESA Council of Ministers in Lusaka, Mrs. Nalumango called on COMESA member states to use the Free Trade Area to promote value addition and digitalization. And COMESA Secretary General Chileshe Kapwepwe said the regional body is leading the way in promoting regional integration. Read more: ZNBC
Minister of Transport and Logistics Frank Museba Tayali has announced that the ministry targets to raise revenues amounting to K869, 973,834.00 from its various revenue streams in the year 2023. Presenting the 2023 budget policy statement for the Ministry of Transport and Logistics, Mr. Tayali said the ministry proposes to spend K519, 768,075.00. The Ndola Central Member of Parliament said in 2023 the ministry plans to dismantle arrears for infrastructure, goods, services and personnel emoluments. Read more: Lusaka Times
International Business and Finance
The world’s poorest countries now owe $62 billion in annual debt service to official bilateral creditors, an increase of 35% over the past year, World Bank President David Malpass said on Thursday, warning that the increased burden is increasing the risk of defaults. Malpass told the Reuters NEXT conference in New York that two thirds of this debt burden is now owed to China, providing some details of the development lender’s annual debt statistics report due next week. “I’m worried about a disorderly default process where there’s not a system to really address” debts for poorer countries, Malpass said. Malpass also said he was concerned about a buildup of debt in advanced economies such as the United States, because this is drawing more capital away from developing countries. “And so as the interest rates go up, the debt service goes up for the advanced economies, and that requires a big amount of capital from the world.” Read more: Reuters
International Monetary Fund Managing Director Kristalina Georgieva flagged rising inflationary pressures and China’s economic slowdown as risks to Asia’s economic outlook, calling on policymakers to rebuild their buffers against future shocks. Asian Development Bank President Masatsugu Asakawa also urged Asia’s policymakers to be vigilant to signs of any abrupt capital outflows driven by steady U.S. interest rate hikes. Georgieva said economies comprising the Association of Southeast Asian Nations (ASEAN) are a “bright spot” in the global economy, with growth projected at 5% this year and moderating slightly in 2023. Read more: Reuters
Singapore has once again been ranked as the most expensive city to live in, sharing the top spot with New York City this year, according to the Economist Intelligence Unit (EIU). This is the eighth time in 10 years that Singapore topped the list. Both Singapore and New York City knocked last year’s leader, Tel Aviv, down to third place thanks to higher inflation and stronger currencies, the EIU reported in its new Worldwide Cost of Living survey of 172 cities. According to the survey, the average price of goods in local currency terms surged by 8.1% this year, citing a poll that the firm conducted between Aug. 16 and Sept. 16. That’s up from the 3.5% rise in prices reported by the EIU’s 2021 survey. Read more: CNBC
The government is set to miss its target for securing post-Brexit trade agreements, as figures show a 15% fall in the number of UK exporters. At the 2019 election the Conservatives promised to get agreements covering 80% of UK trade by the end of this year. The most recent figures suggest it will be just 63%. A government source said a trade deal with the US had been crucial to meeting the target, but the Biden administration was not prioritising it. Deals have been signed with the EU and 71 countries including Australia, New Zealand and Japan. Read more: BBC News
The extensive Indian diaspora will help the South Asian country reach a special milestone this year. Asia’s third largest economy is on track to receive more than $100 billion in yearly remittances in 2022, according to a World Bank report published Wednesday. This will be the first time a country will reach that milestone figure, it said. Remittances, or money transfers from migrant workers to families back home, are an important source of income for households in poorer countries. They not only reduce poverty in developing nations but have also been associated with higher school enrollment rates for children in disadvantaged households. Read more: CNN
Capital Markets Report
In 126 trades recorded yesterday, 901,685 shares were transacted resulting in a turnover of K4,758,838.22. A share price loss of K0.01 was recorded in Bata and Chilanga Cement. A share price loss of K0.06, K0.03 and K0.09 was recorded in CEC Zambia, Standard Chartered Bank Limited and ZAMEFA respectively. Trading activity was also recorded in AECI, Madison Financial Services, PUMA, Zambia Breweries, Zambeed, Zanaco and Zambia Sugar. The LuSE All Share Index (LASI) closed at 7,249.67 points, 0.48% down from it’s previous close at 7,284.75 points. The market closed on a capitalization of 72,488,181,105.35 including Shoprite Holdings and K37,705,495,665.35 excluding Shoprite Holdings.