Good morning. Here’s what you need to know to start your day.
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US Vice President Kamala Harris to visit Zambia this month in an attempt to counter Russia & China influence in Africa
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Moody’s: African banks exposed to billions in carbon risks
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IMF chief: Ukraine war will have ‘devastating’ consequences for Russia’s economy
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Zambian Breweries expects lower profit for the year ended 2022
Story of the Day
On Wednesday 1st March, Inde Credit invited Zambian entrepreneurs and SMEs to the Game Rangers International (GRI) Wildlife Discovery Centre to network and showcase their businesses. The Honourable Minister of Small and Medium Enterprise Development, who was the guest of honor, stated: “It is good to see a financial institution truly supporting SME growth. This is exactly the kind of commitment we need to accelerate economic development and create more jobs for our citizens.” Since their launch in 2016, Inde Credit recently reached a notable milestone of having disbursed over ZMW 1 billion to Zambian SMEs. Through this they have supported more than 450 Zambian SMEs, who have in turn created more than 3,000 jobs. “We provide financing where it’s most needed. I’m so proud of the team for always looking for solutions for our clients instead of turning them down. The growth we see in our clients ’businesses is remarkable as a result of their determination and our financing,” said Peter Bwalya, CEO of Inde Credit. Read more
Africa Energy Indaba Coverage in Collaboration with Africa GreenCo
REMARKS BY REMARKS BY MINISTER MANTASHE AT THE 2023 AFRICA ENERGY INDABA: We are honoured by the invitation to attend and address the 2023 Africa Energy Indaba convened under the theme “African Energy Transitioning to a Sustainable and Prosperous Future”. To us, this gathering is unique in a sense that it brings together various stakeholders in the energy space to engage on issues affecting the industry with no limitations to specific energy sources and systems. African Union’s Agenda 2063 directs us to aspire for an Africa whose development is people driven, relying on the potential offered by African people. It is based on this aspirational goal that this Africa Energy Indaba must serve as a ray of hope to the African people. Their voice on the Energy Transition must be heard. That is the voice that says, Energy production in Africa must be aligned to Africa’s socio-economic development. This means that there must be a balance between energy demand for socio-economic development and energy supply that is premised on low carbon emissions. Read more
The 2023 Africa Energy Indaba has been convened under the theme “African Energy Transitioning to a Sustainable and Prosperous Future”. The Minister who was interrupted when making a key statement on the African Union’s 2063 Agenda stated that the “African Union’s Agenda 2063 directs us to aspire for an Africa whose development is people driven, relying on the potential offered by African people. It is based on this aspirational goal that this Africa Energy Indaba must serve as a ray of hope to the African people. Their voice on the Energy Transition must be heard. That is the voice that says, Energy production in Africa must be aligned to Africa’s socio-economic development. This means that there must be a balance between energy demand for socio-economic development and energy supply that is premised on low carbon emissions”. Read more
As the African Energy Indaba (AEI) enters its second day, experts and industry leaders from around the world will gather to delve into a diverse range of topics pertinent to Africa’s current and future energy landscape. Under the theme of “Transitioning from Aspiration to Action,’ attendees can expect a dynamic program of plenary sessions and breakaway panels designed to explore critical issues facing the industry. Sessions will include deliberations on the development of mini-grid and off-grid solutions, bridging the gender gap in the African energy sector, small scale industrialisation, and e-mobility in Africa. Furthermore, attendees will explore the latest trends in renewable energy systems and energy storage, as well as learn about the potential of hydrogen for Africa. Read more
The last day of the Africa Energy Indaba (AEI) is expected to be just as compelling as the preceding days with the Africa Gas Forum and IPP & PPA Conference side events featuring jam-packed agendas of the latest insights, trends, and developments in Africa’s energy markets. Attendees can look forward to gaining valuable insights from energy experts on how to leverage these trends to achieve optimal results. The side events provide a conducive platform for open and honest discussions, with distinguished global speakers available to share their analyses and exchange views on vital energy issues. Read more
In Local Business News Sponsored by
United States Vice President Kamala Harris will visit Zambia in late March. This is part of an African tour that will take her to Ghana and Tanzania scheduled for 25 March to 3 April. She will become the 18th and most senior American official to visit Africa this year. This visit will be the most high-profile as the US and Russia go pound-for-pound countering each other in Africa, as the war in Ukraine enters its second year. Vice President Harris could set the stage for the eventual promised arrival of President Joe Biden, a vow he made at the US Africa Leaders Summit in Washington DC in December. So far, first lady Jill Biden’s visits to Namibia and Kenya are regarded as the most high profile followed by that of US Secretary of Treasury Janet Yellen who was in Senegal, South Africa, and Zambia last month. Read more: Lusaka Times
A total of 32 million shares were transacted on the Lusaka Securities Exchange (LuSE) in the month of January resulting in a market turnover of K57.13 million. The statement indicated that bonds of total face value of K5. 71 billion were transacted in 262 trades, resulting in a bond turnover of K3. 71 billion. It stated that the market recorded a net inflow of US$418,410. Read more: Zambia Monitor
President Hakainde Hichilema is concerned with the low participation of women in science, technology, engineering and mathematics. President Hichilema says this is why Government is creating a conducive environment for increased access to science, technology, engineering and Mathematics which includes scholarship for women and girls. He says the UPND administration continues to implement policies and programs targeted at girls, women and other marginalized groups with the view to promote gender equity and equality. President Hichilema said this in a speech read on his behalf by Vice President Mutale Nalumango during the International Women’s Day commemoration in Kabwe. Read more: ZNBC
Government has signed a Memorandum of Understanding-MoU, with Liquid Telecommunications Limited to provide Optic Fibre internet services. The Agreement which was signed in Doha, Qatar, will see the internet service provider company build a modern data centre in Lusaka and provide free internet services to secondary schools. Science and Technology Minister Felix Mutati signed on behalf of the Zambian Government, while Nic Rudnick signed on behalf of Liquid Telecommunications Limited. Read more: ZNBC
Jesuit Centre for Theological Reflection (JCTR) has disclosed that the cost of living for a family of five in Lusaka increased by K230.75 in February 2023 to K9, 278 compared to K9, 047.31 recorded in January, 2023. Centre Social & Economic Development (SED) Programme Manager Muchimba Siamachoka attributed the rise the Basic Needs and Nutrition Basket to increased prices in food items such as 14kg of other fruits, 16kg bananas, 1kg kapenta, 6kg cassava flour and 4kg rice. Ms. Siamachoka stated that in the non-food basket item, there was a significant decrease in the price of two 90kg bags of charcoal, which she said could partially be attributed to the reduced load shedding in the country, amongst other factors. Read more: Money FM
German Minister for Economic Cooperation and Development Svenja Schulze has described the just ended Economic Forum in Berlin as a huge opportunity for Africa to showcase investment opportunities. Schulze said the investment opportunities showcased at the forum gave the German investors an insight of where investment was needed. “This has been a great opportunity for Africa to showcase investment opportunities that require German investors,” she said during the official opening of the annual Forum. Read more: Zambia Monitor
Government says the recently held Zambia–European Union Pharmaceutical Manufacturing Forum has seen the signing of an MOU between Pharmanova and a Spanish company to set up a pharmaceutical hub that will cost over US$100 million. Last week, the country held the Zambia–European Union Pharmaceutical Manufacturing Forum under the theme ‘Strengthening Healthcare through Local Manufacturing’. In an interview, Tuesday, Commerce, Trade and Industry Minister Chipoka Mulenga said the hub will be built by Medlab and handed over to Pharmanova. Read more: News Diggers
In International Business News
Nearly a quarter of African banks’ lending is directed to companies facing carbon transition risks, according to a Moody’s survey of rated financial institutions. African banks’ exposure to companies facing carbon risks – mostly those in the mining, oil & gas, and manufacturing & transport sectors – is around $106bn, or about 22% of their loan books. “African banks are more exposed to governance and environmental risks than their global peers. Relative governance weaknesses have led to operational and loan losses, while risk exposure to climate change and carbon transition is intense,” says the report. While credit exposure to environmental risks is moderately negative for 72% of African financial institutions, it is highly negative for 13 banks in oil-dependent Nigeria and Angola. Nigerian banks have much higher exposures (51% of their loan books worth $27bn) than some of their peers as a result of high lending to the oil and gas sectors, which accounts for 23% of gross loans. Angola, which also has one of the continent’s most active hydrocarbon industries, is similarly exposed to carbon risk. This fuels a number of wider risks for banks, Moody’s says. Read more: African Business
The U.S. is pushing back on the idea it wants to suppress China and said it doesn’t want to separate the two economies, according to a State Department spokesperson’s comments. The spokesperson was responding to a CNBC request for comment on Chinese Foreign Minister Qin Gang’s remarks Tuesday. Qin claimed U.S. calls for “establishing guardrails” on the relationship meant that China should not react. Qin also said that the U.S. needed to “hit the brake” to prevent conflict with China. “We have made it clear we do not seek to contain China or have a new Cold War,” the U.S. State Department spokesperson said. Read more: CNBC
The head of the US central bank has warned that officials could raise interest rates farther and faster than previously expected in order to stabilise prices. US stocks fell and the dollar rose following the remarks, which come just a few weeks before the bank is due to make another rates announcement. Many analysts had been expecting another 0.25 percentage point increase. But the comments suggest the bank could move more aggressively. Read more: BBC News
The International Monetary Fund has drawn criticism for forecasting that Russia will see stronger economic growth this year than either the United Kingdom or Germany, despite rising pressure from Western sanctions. But Kristalina Georgieva, the IMF’s managing director, told CNN’s Poppy Harlow that the economic outlook for Russia beyond 2023 is “quite devastating.” “When you take our projections over a medium term, what they mean is Russia[’s economy] shrinking by at least 7%,” Georgieva said in an interview that aired Wednesday. In January, the IMF projected that Russia’s economy would expand by 0.3% this year and 2.1% the next. That was much more optimistic than the latest forecasts from both the World Bank and the Organization for Economic Cooperation and Development. Economists at those groups have penciled in contractions of 3.3% and 5.6% in 2023, respectively. Read more: CNN
South Africa’s economic activity as measured by GDP growth fell 1.3% in the last quarter of 2022, dropping below its pre-pandemic level due to record power cuts, official figures showed Tuesday. “After recovering in the third quarter of 2022, South Africa’s GDP fell by 1.3% in the fourth quarter” from the previous quarter, state statistics agency StatSA said, adding that GDP (gross domestic product) “fell below its pre-pandemic levels”. Economists had not expected the drop in GDP to be so sharp. Foreign trade and the financial sector were the biggest drags on growth, with exports falling by 4.8%. Agriculture, mining and manufacturing also dragged down activity. Read more: Africa News
Finally, Capital Markets News
The Board of Directors of Zambian Breweries Plc (“the Board”) wishes to advise the Shareholders that for the period ending 31st December 2022, the earnings per share is expected to be 33% lower than that of the corresponding period last year for the Company. Profit for the year reduced, driven by a change in the Company’s tax position from a refund last year resulting from impact of change in company tax rate (downward adjustment from 35% to 30%) to a payable position this year. Read more
In 149 trades recorded on Tuesday, 2,168,537 shares were transacted resulting in a turnover of K6,667,354.62. A share price loss of K0.01 was recorded in Chilanga Cement. A share price loss of K0.30 was recorded in Standard Chartered Bank Limited. A share price loss of K0.01 was recorded in Zambia Sugar. Trading activity was also recorded in BATA, British American Tobacco Zambia, CEC Zambia, PUMA, Zambeef, Zanaco and CEC Africa on the quoted tier. The LuSE All Share Index (LASI) closed at 7,227.17 points, 1.58% down from its previous close at 7,343.24 points. The market closed on a capitalization of K72,390,239,909.89 including Shoprite Holdings and K37,607,554,469.89 excluding Shoprite Holdings.
Picture of the Day