Good morning. Here’s what you need to know to start your day.
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HH comments on the K65 Million case
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Zambian Government Gives Elon Musk’s Starlink ISP a License
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China’s exports plunge by 7.5% in May, far more than expected
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Zambeef’s turnover for the period ended March 2023 was ZMW105.39 million compared to ZMW50.48 million
Story of the Day
Financial Insight Zambia hosted Episode 9 of FiZ show, where Mutinta M. Lunda interacted with Paulman Chungu, Co-Managing Partner of Ranchhod | Chungu Advocates, to discuss issues pertaining to different forms of alternative dispute resolutions such as, arbitration and their importance. Speaking during FIZ Show held in Lusaka on 27th April 2023, Mr. Chungu, said that, arbitration is a legal technique for the resolution of disputes outside the courts, wherein the parties to a dispute refer it to one or more persons (the “arbitrators”, “arbiters” or “arbitral tribunal”), by whose decision (the “award”) they agree to be bound. According to Mr. Chungu, if parties in a contract want their dispute to be resolved outside the court, they must agree and put a clause in a contract, stating that, ‘where dispute arise in the operations, such disputes must be resolved by way of arbitration’. Resolving disputes through Arbitration saves time and money while providing a confidential and efficient process for all parties involved. Read more
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President Hakainde Hichilema has called on financial institutions, particularly banks, to increase support for Small and Medium-sized Enterprises (SMEs) by reducing the cost of capital. Speaking at the inauguration of the Indo-Zambia Bank’s Corporate Head Office in Lusaka, President Hichilema said “the growth and success of our country’s economy are intertwined with the presence of institutions with strong balance sheets, such as Indo-Zambia Bank, which are focused on wealth creation, employment generation, and sustainable growth.” In his address, President Hichilema also addressed recent reports regarding the misappropriation of over 65 million Kwacha recovered from corruption by the Anti-Corruption Commission (ACC). He stated that these reports were intended to derail the government from its development agenda. The President clarified that the money in question was actually used to finance students’ access to quality education through the Ministry of Finance. Read more: Lusaka Times
Government has given a license to Starlink, a satellite internet constellation operated by American aerospace company SpaceX. SpaceX is owned by American billionaire Elon Musk. Smart Zambia National Coordinator Percy Chinyama announced the development at the media engagement in Lusaka . Mr Chinyama said the government wants to ensure that all Internet providers who want to invest in the country have space. Read more: ZNBC
African Export -Import Bank AFREXIM-has set aside $40b to increase intra COMESA and Africa trade between 2022 and 2026. AFREXIM Intra African Trade Initiative Acting Director Gainmore Zanangwe says the bank has put in place various initiatives to provide finance to Small and Medium Enterprise- SMEs- and also for the establishment of export trading companies. Mr. Zanangwe said this during a public private dialogue at the 16th COMESA business forum on promoting regional value chains and building capacity of producers and industries. Read more: ZNBC
The Insurers Association of Zambia (IAZ) has proposed the abolishment of withholding tax on interest earned on government treasury bills and bonds to enhance and develop financial markets. Executive Director, Nkaka Mwashika, in his submission for the 2024 national budget framework in Lusaka recently proposed that government must consider abolishing withholding tax on interest earned on its securities. Mwashika explained that current tax on interest on government securities negatively affected the growth of pension funds and member’s benefits especially for Defined Contribution Schemes. Read more: Zambia Monitor
Zambia is participating at the Second Session of the United Nations (UN)-Habitat Assembly in Kenya, with an affirmative call for global support to help developing Nations, deliver modern technologies and infrastructure to transform urban and rural areas into engines of growth. The Assembly was officially opened by Kenyan President William Ruto on Tuesday, under the theme “A sustainable urban future through inclusive and effective multilateralism: Achieving the SDGs in times of global crises”. This is according to a statement issued on Wednesday in Lusaka by Chila Namaiko, the Ministry of Local Government and Rural Development Public Relations Officer. Zambia is represented by Minister of Local Government and Rural Development, Gary Nkombo, and Minister of Infrastructure, Housing and Urban Development, Charles Milupi. Read more: Zambia Monitor
Bank of Zambia Exchange Rates
Currency | Buying | Selling |
---|---|---|
USD | 20.0096 | 20.0564 |
GBP | 24.9499 | 25.0163 |
EUR | 21.4523 | 21.5104 |
ZAR | 1.0505 | 1.0534 |
In International Business News Sponsored By
Prime Minister Rishi Sunak has said he expects to discuss Joe Biden’s flagship package of investment in green industries when he meets the president during his trip to the United States. Travelling to Washington DC, Mr Sunak said “subsidy races” were not a solution to hitting climate goals. Some British ministers have criticised Mr Biden’s Inflation Reduction Act (IRA) as harmful to world trade. The law includes $370bn (£297bn) to boost green technology in the US. In a drive to cut carbon emissions, billions in tax credits and subsidies has been allocated to speed up the production of solar panels and wind turbines, and encourage the up-take of electric cars. BBC News
China’s exports fell in May for the first time since February, adding to concerns that growth in the world’s second-largest economy could be faltering. Exports fell 7.5% year-on-year to $283.5 billion, customs data showed Wednesday, far worse than the 0.4% decline predicted by a Reuters poll. The decline was so sharp that export volumes came in below their levels at the start of the year, after accounting for seasonality and changes in export prices, Julian Evans-Pritchard, head of China Economics at Capital Economics, said in a note. “This points to subdued global demand for Chinese goods,” he said. Read more: CNBC
The U.K. will experience the highest level of inflation among all advanced economies this year, according to data from the Organization for Economic Cooperation and Development. The U.K. is set to report a headline inflation of 6.9% this year, above the OECD average of 6.6% for 2023. Among the countries analyzed in the latest OECD economic outlook, only Argentina and Turkey are expected to have a higher headline rate than the U.K. this year. Sanctions-struck Russia is forecast to have a headline inflation of just under 5.4% in 2023. The U.K. headline inflation is “projected to slow on the back of declining energy prices and to come down close to target by the end of 2024,” the OECD noted. “Core inflation is set to be more persistent due to strong services inflation, only receding to 3.2% in 2024.” Read more: CNBC
Kenya’s economic landscape is poised for a promising trajectory as the World Bank forecasts a 5% expansion for the nation’s economy this year. The projected growth is underpinned by favourable weather conditions, which are anticipated to bolster agricultural output, according to the latest Kenya Economic Update released by the World Bank. The report also indicates a subsequent acceleration in growth to 5.2% in 2024 and 5.3% in 2025, propelled by a decline in global commodity prices and resilient private investment. Read more: Business Insider
The Bank of Canada on Wednesday hiked its overnight rate to a 22-year high of 4.75 percent, and markets and analysts immediately forecast yet another increase next month to ratchet down an overheating economy and stubbornly high inflation. The central bank had been on hold since January to assess the impact of previous hikes after raising borrowing costs eight times since March 2022 to a 15-year high of 4.5 percent – the fastest tightening cycle in the bank’s history. Read more: Al Jazeera
In compliance with the requirements of the Securities Act No 41 of 2016 and the Listing Rules of Lusaka Securities Exchange, Pamodzi Hotels PLC (“Pamodzi” or “the Company”), announces the audited financial results for the year ended 31st March 2023. The total turnover for the period ended March 2023 was ZMW105.39 million compared to ZMW50.48 million for the corresponding period in 2022. EBITDA for the period ended March 2023 was ZMW9.50 million compared to ZMW(8.99) million for the corresponding period in 2022. Overall, the Profit After Tax for the period ended March 2023 was ZMW2.25 million as compared to ZMW(19.47) million for the corresponding period in 2022. This resulted in a 111% increase in Earnings Per Share (EPS) from ZMW(0.19) in March 2022 to ZMW0.02 in March 2023. Read more
In 48 trades recorded yesterday, 32,930 shares were transacted resulting in a turnover of K209,946.67. Trading activity was also recorded in AECI, CEC Zambia, Chilanga Cement, Standard Chartered Bank Limited, Zambeef, Zanaco and Zambia Sugar. The LuSE All Share Index (LASI) maintained its close at 8,188.98 points. The market closed on a capitalization of K76,574,830,373.94 including Shoprite Holdings and K41,794,144,933.94 excluding Shoprite Holdings.
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