Story of the Day:
In her nearly ten years running a small grocery store in Kenya, Faith Kemunto’s biggest fear has been waking up one day without a business. A fire ravaging her store, a serious illness or an accident would instantly lunge her back to poverty. The solution to this fear may seem quite straightforward: get insurance. But the reality is more complicated. Kemunto knows little about insurance or how it could be of use to her. In an emergency, she says she would turn to her women’s group or her church. This is the simple reality among many in Sub-Saharan Africa. While many understand what they have worked towards for decades could be swept away in an instant, financial illiteracy keeps them from accessing key financial products that secure them from such shocks. This only widens the gaps in insurance penetration on the continent, especially when it comes to the solution most conducive to the masses — microinsurance. Read more
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A new global sovereign debt “roundtable” that will include China, other creditors and some borrowing countries will meet for the first time next month on the sidelines of a Group of 20 finance officials meeting in India, IMF Managing Director Kristalina Georgieva said on Thursday. Georgieva, the first person from an emerging market economy to head the International Monetary Fund, told reporters debt relief was critical for heavily indebted nations to avoid cuts in social services and other repercussions. Read more: Reuters
Zambia has the 8th best quality of life in Africa, according to The Quality of Life Index. Africa is currently the fastest growing economy in the world, coupled with the world’s most youthful population, and the world’s most technologically receptive population. With these elements in play, massive waves of development on the continent is imminent, and in due time many African nations will be able to boast of having some of the world’s highest quality of life index. Read more: Business Insider
The Centre for Trade Policy and Development (CTPD) has released a statement on the economic outlook for 2023, highlighting the challenges and risks faced by the Zambian economy in light of the ongoing global uncertainty. The statement, issued by Mr. Boyd Muleya, Head of Research at CTPD, emphasizes the need for efficient government communication and proactive measures to mitigate the risks and achieve stability in the coming year. Read more: Lusaka Times
ZESCO Limited says it is working on setting up solar plants across the country to produce 800 megawatts of electricity. ZESCO National Spokesperson Henry Kapata says this is in line with President Hakainde Hichilema’s directive for the power utility company to go for alternative sources of energy. Mr. Kapata says a 250 megawatts solar plant will be constructed by ZESCO alone and another 250 megawatts will be given to which ever company wants to partner with the firm while the other part will be done by any independent power producer. He says ZESCO Limited has realised that there are regions that are conducive for solar projects especially in drought prone areas of Southern, Luapula and Western Provinces. And Mr. Kapata has disclosed that the company is also looking at putting up 500 megawatts of wind energy in provinces that are suitable for the project. He adds that two projects will soon be implemented to help cushion the challenge of hydro power generation being experienced in the country. Read more: ZNBC
Government has issued new guidelines to streamline the approval of Constituency Development Fund -CDF- projects. The move is aimed at quickening the implementation of CDF projects through limited delegation of the powers of the Secretary to the Treasury to Town Clerks and Council Secretaries for variations within the CDF programme in local authorities. According to Treasury and Financial Management Circular No. 4 of 2023, dated 3rd January, the Secretary to the Treasury has delegated the function of approval of up to a maximum of 25-percent variation of estimates of expenditure, to Town Clerks and Council Secretaries in Local Authorities, where necessary. Previously, approval was obtained from the Secretary to the Treasury. And Finance Minister Situmbeko Musokotwane says new measures are expected to expedite the implementation of CDF projects and make the process more efficient. Read more: ZNBC
International Business and Finance
The UK economy unexpectedly grew in November, helped by a boost from the World Cup, official figures show. The UK’s gross domestic product (GDP) – a key economic measure of services, construction and manufacturing output – rose by 0.1%. The Office for National Statistics (ONS) said pubs and restaurants contributed to growth as people went out to watch World Cup games. Read more: BBC News
A sharp drop in energy prices, in particular petrol, is helping to ease cost-of-living pressures in the US. US inflation was 6.5% over the 12 months to the end of December, down from 7.1% in November, the US Labor Department said. That was the smallest increase in more than a year, and marked the sixth month in a row that the pace dropped. Overall, prices slipped 0.1% over the month, driven by the fall in petrol prices. Read more: BBC News
A number of key provinces and cities in China have announced their growth targets for this year, most of them above 5%, offering the first clues about the country’s economic path in 2023. Local governments across China began to convene this week for annual legislative sessions laying out their respective policy goals for the year. The meetings will culminate in the national parliamentary session to be held in March, in which the premier is expected to disclose the nation’s GDP growth target. Read more: CNN
Apple CEO Tim Cook will receive a pay cut in 2023 to $49 million in total compensation, the company said in a filing with the SEC. Cook requested the change, Apple said in the filing, following a shareholder vote on his pay package. The company also reduced the number of restricted stock units Cook would receive if he retires before 2026. In 2022, Cook made just under $83 million in stock awards, $12 million in incentives, and $3 million in salary. He also got benefits including retirement plan contributions, security, personal air travel, and over $46,000 in vacation cash-out. Apple’s compensation committee said that it made the change in response to last year’s say-on-pay vote, in which 64% of shareholders approved of Cook’s compensation, down from 95% that approved it for Apple’s 2020 fiscal year. Read more: CNBC
Last year took the U.S. economy and markets on a bumpy ride — and the year ahead also looks tough. It’s led some strategists to argue 2023 could be Europe’s time to shine. Zeynep Ozturk-Unlu, Deutsche Bank’s chief investment officer for EMEA, sees a case for Europe outperforming both economically and in capital markets, with contraction and recession fears becoming “more accelerated” in the U.S. than in Europe. Read more: CNBC
China’s exports and imports fell less than expected in December, the customs administration said Friday. The milder slump meant trade still grew for all of 2022. China’s exports fell by 9.9% in December from a year ago in U.S.-dollar terms, slightly better than the 10% decline forecast by a Reuters’ poll. China’s imports fell by 7.5% year-on-year in December in U.S.-dollar terms, also better than the 9.8% decline predicted by Reuters. Strong exports bolstered China’s economy in the last two years. But economists anticipate a slowdown in demand from the U.S. and Europe. Read more: CNBC
Capital Markets Report
In 19 trades recorded yesterday, 2,396 shares were transacted resulting in a turnover of K10,138.30. A share price loss of K0.01 was recorded in Zambia Breweries. Trading activity was recorded in Copperbelt Energy Corporation Zambia, Chilanga Cement, Zambeef and Zambia Sugar. The LuSE All Share Index (LASI) closed at 7,271.46 points down by 0.02% from its previous close of 7,272.72 points. The market closed on a capitalization of K72,583,048,084 including Shoprite Holdings and K37,800,362,644.85 excluding Shoprite Holdings.