Good morning. Here’s what you need to know to start your day.
-
HH Calls For Value Addition To Africa’s Natural Resources
-
Rand Collapses as the US accuses South Africa of Supplying Weapons to Russia
-
In the third week of April, The bond market recorded a 99% to 1% on the equity market
Story of the Day
Zambian non-profit organisation, Conservation Advocates Zambia (CAZ), has appealed to Honourable Collins Nzovu MP, Minister of Green Economy and Environment against the Decision Letter on the proposed Lower Zambezi copper mining following Zambia Environmental Management Agency (ZEMA) finally replying that they had “no authority” to review the decision. As allowed by law, CAZ wrote to ZEMA Board in July 2022 to ask them to review their decision to approve copper mining inside the Lower Zambezi National Park by Mwembeshi Resources but had still not received a response by February 2023. It was claimed this breaches Zambia’s environmental management laws and shows “procedural impropriety”. In frustration, CAZ made an application to the High Court for judicial review of ZEMA. This hearing was adjourned twice by the environmental management agency and ZEMA finally stated that it had “no authority” to review its own decision in a letter dated 30 March 2023. ZEMA neither allowed or dismissed the review application and nor did they conduct an inquiry as prescribed by law. CAZ have now applied to the Minister of Green Economy and Environment for a review of the decision to allow mining inside the Lower Zambezi National Park on the same grounds. Read more
In Local Business News Sponsored by
President Hakainde Hichilema has called for value addition to Africa’s natural resources. The President says adding value to the resources, which the continent is endowed with, will help in creating job opportunities for many youths. He has observed that minerals are often exported outside Africa in raw form, depriving young people of the much needed job opportunities, if value was added. President Hichilema said this when he delivered a keynote address at the Africa Debate, organised by Invest Africa in London, United Kingdom. Read more: ZNBC
Zambia Revenue Authority (ZRA) has disclosed that it collected gross revenue of K27.3 billion in the first quarter of 2023, compared to K26.5 billion collected during the same period last year, representing revenue target increase of 12.4%. Speaking during a stakeholder engagement on tax revenue and administrative performance for the first quarter of 2023, Authority Commissioner General Dingani Banda revealed that ZRA refunded K4.1 billion during the same period and paid out K1.35 billion per month. Mr. Banda stated that the net outturn was K0.4 billion or 1.7 percent below quarter one target of K23.7 billion. He attributed the negative revenue performance in the quarter under review, to lower than expected profitability in the mining sector, which is having a toll effect on performance of mining related taxes such as mineral royalty tax. “In Quarter 1 of 2022, ZRA collected gross revenue of K26.5 billion and refunded K4.1 billion by paying K1.35 billion per month. Net outturn was K1.3 billion or 6.4% above target.” Read more: Money FM
Zambia’s exports to Common Market for Eastern and Southern Africa (COMESA) member states grew to US$1.2 billion in 2019 from US$921 million recorded in 2017, Minister of Commerce, Trade and Industry Chipoka Mulenga has said. Mr Mulenga told journalists on Monday that the boost in trade volumes is as a result of COMESA’s efforts to eliminate non-tariff barriers (NTB) that were hindering trade between the member states. “Like the President says, ‘COMESA member states are not supposed to compete but complement each other’. The advantages in the COMESA region are huge. A lot of tariffs have been removed and this has helped to improve the trade volumes between Zambia and other COMESA member states,” he said. Mr Mulenga said as part of the global village, Zambia is commited to collaborating with other member states in areas of trade. He said with a population of 19 million, Zambia needs more collaborations to grow the country’s economy. Read more: Zambia Daily Mail
The Jesuit Centre for Theological Reflection (JCTR) has called on international creditors to promptly offer Zambia debt relief. This, it said, will critically free up the country’s fiscal space to support the welfare of the most vulnerable amidst the high cost of living. Meanwhile, the cost of living for a family of five as measured by JCTR Basic Needs and Nutrition Basket (BNNB) for the month of April 2023 has increased by K109.39 to K9,112. Read more: Zambia Monitor
Bank of Zambia Exchange Rates
Currency | Buying | Selling |
---|---|---|
USD | 18.2529 | 18.3021 |
GBP | 22.9968 | 23.0625 |
EUR | 19.9705 | 20.0316 |
ZAR | 0.9477 | 0.9509 |
In International Business News
The US ambassador to South Africa has accused the country of supplying weapons to Russia despite its professed neutrality in the war in Ukraine. Reuben Brigety claimed that a Russian ship was loaded with ammunition and arms in Cape Town last December. President Cyril Ramaphosa’s office said it was disappointed by the claims and said no evidence has been provided to support them. The country has maintained claims of neutrality in the invasion of Ukraine. Mr Brigety said at a media briefing in Pretoria on Thursday that Washington had concerns about the country’s stated non-aligned stance on the conflict. He referred to the docking of a cargo ship in the Simon’s Town naval base between 6 and 8 December last year which he was “confident” uploaded weapons and ammunition “as it made its way back to Russia”. Read more: BBC News
The Bank of England raised interest rates by a quarter of a percentage point Thursday in its battle with inflation and said the UK economy would dodge a recession as energy prices fall. The decision to impose a 12th consecutive hike takes the main borrowing rate for commercial banks in the United Kingdom to 4.5%, the highest since October 2008. It comes a week after the US Federal Reserve and the European Central Bank also raised rates by a quarter-point. “Inflation remains too high and it’s our job to get it all the way down to the 2% target and have it stay there,” Bank of England governor Andrew Bailey told journalists. “Low and stable inflation is the foundation for a healthy economy.” The central bank now expects the UK economy to grow by 0.25% this year and by 0.75% in 2024 — a much more positive assessment than in February, when it forecast contractions of 0.5% and 0.25%, respectively. Read more: CNN
According to the World Bank, the revenue from natural resources like minerals, oil, and gas may be doubled in Sub-Saharan African nations that are rich in metals and minerals. The World Bank observed that by adopting a stronger set of policies, putting reforms into place, investing in improved fiscal management, and fostering good governance, these nations might achieve a revenue increase of double. “In a time of energy transition and rising demand for metals and minerals, resource-rich governments in Sub-Saharan Africa have an opportunity to better leverage their resources to finance their public programs, diversify their economy, and expand energy access,” the statement by the global lender reads in part. The Washington-based bank highlighted that generally speaking, nations only receive roughly 40% of the potential earnings from natural resources. Read more: Business Insider
Elon Musk says that he has found a new person to lead Twitter. He announced the news on the social media platform, which he bought last year for $44bn. Mr Musk did not name the site’s new boss but said “she” would start in six weeks at which point he would become executive chairman and chief technology officer. Mr Musk has been under pressure to name someone else to lead the company and focus on his other businesses. Read more: BBC News
Finally, Capital Markets News
Three weeks into the month of April 2023, trading on the Lusaka Securities Exchange. The bond market recorded a 99% to 1% on the equity market. In comparison to this time last year we see is a complete replica as it also recorded a 99% score to 0%. Regarding the equity market Copperbelt Energy Corporation Zambia recorded the highest turnover during the week. In the week ended 21st April 2023, a total of 1,023,540 shares were transacted in 226 trades, yielding a market turnover of K4,764,030. Read more
In 20 trades recorded yesterday, 43,884 shares were transacted resulting in a turnover of K122,085.05. Trading activity was recorded in CEC Zambia, PUMA, Zambeef and Zanaco. The LuSE All Share Index (LASI) maintained its close at 8,150.79 points. The market closed on a capitalization of K76,410,598,978.90 including Shoprite Holdings and K41,627,913,538.90 excluding Shoprite Holdings
Picture of the Day