Good morning. Here’s what you need to know to start your day.
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Airtel Zambia Introduces 5G Network
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Global economy to grow to 3% in 2023 – IMF
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Real Estate Investments Zambia to acquire income-generating real estate
Story of the Day
We are happy to begin announcing some of the industry leaders joining us at the 10th edition of the Africa Fintech Summit this November. We are especially excited to announce the first keynote address on the morning of November 2nd will be delivered by Honorable Minister Felix C. Mutati of the Ministry of Technology & Science of Zambia. Hon. Min. Mutati’s keynote will showcase many of the initiatives the Ministry has been using to help drive digital transformation across Zambia and the role that fintech is playing in the future of the country. Some of the other experts joining us on stage include this November include executives from the industry’s top fintechs, partners from some of the most successful investors on the continent, and many other leaders in thought and innovation! Flutterwave, PremierCredit,Founders Factory Africa, JUMO, Afreximbank’s PAPSS, Apis Partners, Multigate,Payments Association of Zambia, and many more! Read more
In Local Business News Sponsored by
Airtel Networks Zambia Plc, the leading telecommunications and mobile money services provider, has launched its highly anticipated Airtel 5G network which will now provide data speeds up to 10 times faster than 4G with ability to seamlessly connect billions of devices. Speaking at the launch, Airtel Africa Regional Director, Apoorva Mehrotra emphasized the company’s dedication to enabling seamless connectivity by unveiling the cutting-edge 5G network. “Today marks a significant milestone as we proudly introduce our 5G network, a state-of-the-art infrastructure that provides data speeds up to 10 times faster than 4G, incredibly low latency, and the ability to seamlessly connect billions of devices.” Airtel 5G will revolutionize various sectors, such as smart cities, education, healthcare, Agri-tech, transport systems, entertainment, and more, shaping the future of Zambia’s landscape. “We are deeply privileged to also have the opportunity to contribute to the realization of Government’s vision for the private sector to invest, innovate and thereafter provide incentives to the customers.” Mehrotra said. Minister of Technology and Science, Felix Mutati who was Guest of Honour said the 5G technology launch was important for the country and the economy. Read more: Zambian Business Times
Production of nickel concentrate has begun at First Quantum Minerals’ new Enterprise nickel mine in Kalumbila District of North-Western Province. FQM Project Manager, Axel Kottgen, said once in full production, the mine would be the largest producer of the strategic metal in Africa. Kottgen said in a statement issued in Lusaka on Wednesday that Nickel, like lithium, cobalt, and copper was an essential component in the batteries required for the new era of ‘green’ vehicles. He said development of the mine and plant resumed last year after FQM earmarked an additional US$100 million investment to finalise the project in the light of improved market conditions. Read more: Zambia Monitor
The Bank of Zambia (BoZ) has urged financial service providers to understand the risks associated with their innovations so as not to compromise the stability of their institutions and of the financial systems as a whole. Denny Kalyalya, BoZ Governor said while the Central bank acknowledged innovation by financial service providers to increase access to formal financial services, it was important for them to be conscious. He said this at the launch of the First National Bank (FNB) Zambia Bank on Wheels initiative in Lusaka on Tuesday. “It is increasingly evident that financial service providers will have to move out of their comfort zone to foster financial inclusion. “However, it is also important that financial service providers should understand the risks associated with their innovations so as not to compromise the stability of their institutions,” Kalyalya said. Read more: Zambia Monitor
Government has collaborated with the Democratic Republic of Congo (DRC) to invest in internet connectivity along the Lobito Corridor. Minister of Technology and Science Felix Mutati says this will be done through laying fiber internet along the Lobito Corridor in order to enhance internet penetration among the countries sharing the corridor. Speaking during the Digitalization Drive dialogue with Internet network providers in Lusaka, Mr Mutati observed that digital transformation is key to economic development in the country and the world at large. He indicated that laying fiber internet on the Lobito Corridor from Congo DR, Angola and Zambia will enable cheap and fast internet for thus contributing to economic growth. Read more: Lusaka Times
Government says it has engaged a contractor to upgrade the Chingola/Solwezi road into a dual carriageway whose works are expected to commence soon. North Western Province Permanent Secretary Grandson Katambi said Bet-Pave, a Zambian contractor, has been engaged and has since mobilized equipment to start the works. Colonel Katambi said this during an inspection tour of the delivered machinery earmarked for construction of the Chingola /Solwezi dual carriage way. Col. Katambi says the expansion of the road will help decongest traffic and significantly reduce the cost of doing business because goods would be transported on real time. Read more: Lusaka Times
Transparency International Zambia (TI-Z) says it is concerned about the declining number of cases analyzed by the Financial Intelligence Centre (FIC) over time. In a statement, Organization Executive Director Maurice Nyambe observed that an analysis of the 2022 FIC Trends report which was recently released indicates that the Centre received 5,745 reports but only analyzed 155 cases, representing a paltry 2.7% of reports received. Mr. Nyambe said this is in comparison to 211 reports analyzed in 2021 out of the 2,577 reports received, representing 8.2% of the cases. “From an overall point of view, we are extremely concerned that the number of cases analyzed by the FIC has been reducing over time and thus limiting the increase in the number of cases disseminated to Law Enforcement Agencies (LEAs).” Read more: Money FM
Bank of Zambia Exchange Rates
Currency | Buying | Selling |
---|---|---|
USD | 18.6781 | 18.7281 |
GBP | 24.1023 | 24.1745 |
EUR | 20.6673 | 20.7245 |
ZAR | 1.0546 | 1.0583 |
In International Business News
The International Monetary Fund (IMF) increased its forecast of how much the global economy will grow this year to 3%. The 0.2% improvement from April’s forecast was partly driven by increased post-pandemic travel. A strong jobs market and services sector was also included in the predicted uptick. But soaring consumer prices and higher interest rates remained risks in developed nations, the IMF said. China’s delicate economic recovery was also amongst the biggest risks on the horizon. The IMF’s chief economist Pierre-Olivier Gourinchas told the BBC that the recovery from the pandemic is still having an impact. He said in the first three months of 2023, there was a “strong resilience” in the demand for services, going out, and travel and tourism. Read more: BBC News
The US central bank has raised interest rates to the highest level in 22 years as it fights to stabilise prices in the world’s largest economy. The decision lifted the Federal Reserve’s influential benchmark rate to a range of 5.25% to 5.5%. It marked the eleventh increase since early 2022, when the Fed started raising borrowing costs to try to cool the economy and ease price inflation. The Fed warned previously it may push rates higher – though at a slower pace. Wednesday’s decision came ahead of central bank meetings in Europe and Japan. In the UK, where inflation was 7.9%, the Bank of England is widely expected to raise its key rate at its next meeting from the current 5%. Read more: BBC News
Tuesday marked the beginning of what is anticipated to be Africa’s first debt-for-nature swap, with Gabon announcing plans to buy up at least $450 million of its public debt and exchange it for an eco-friendly blue bond. With estimates placing it at close to a third of the whole world population of the endangered species, Gabon’s beaches and coastal waters are home to the largest number of leatherback turtles. Debt-for-nature swaps, at their most basic level, involve a bank or specialized investor purchasing a country’s debt and exchanging it for cheaper debt, sometimes with the assistance of a multilateral development bank “credit guarantee” or “risk insurance.” The money saved will go toward supporting environmental protection. This idea has been touted by the African Development Bank for a while now. The central African nation stated that it has “launched invitations to tender for the purchase by the Republic for cash of its 2025 Notes and 2031 Notes” in a regulatory filing on the London Stock Exchange. This led to a gain of up to 2.2% on the dollar for the three Eurobonds it mentioned. Read more: Business Insider
Some of the world’s top artificial intelligence companies are launching a new industry body to work together — and with policymakers and researchers — on ways to regulate the development of bleeding-edge AI. The new organization, known as the Frontier Model Forum, was announced Wednesday by Google, Microsoft, OpenAI and Anthropic. The companies said the forum’s mission would be to develop best practices for AI safety, promote research into AI risks, and to publicly share information with governments and civil society. Wednesday’s announcement reflects how AI developers are coalescing around voluntary guardrails for the technology ahead of an expected push this fall by US and European Union lawmakers to craft binding legislation for the industry. Read more: CNN
Shares of Alphabet rose nearly 5.5% at the start of trading Wednesday, driven by stronger-than-expected second-quarter earnings and marked year-over-year growth in cloud computing revenue. The company on Tuesday reported adjusted earnings per share of $1.44, more than the $1.34 expected by a Refinitiv survey of analysts. Revenue for the second quarter came in at $74.6 billion, beating a consensus estimate of $72.82 billion. But it was strong growth in cloud computing that stood out the most, with the company reporting $8.03 billion in Google Cloud sales, compared to a StreetAccount consensus of $7.87 billion. Google Cloud competes with Amazon Web Services and Microsoft Azure. Google’s cloud unit reported its second consecutive quarter of operating profit, with second period operating income of $395 million, compared to a $590 million loss in the year-ago quarter. Read more: CNBC
Further to the Cautionary Announcement made on 22 May 2023, the Board of Directors of Real Estate Investments Zambia PLC wishes to inform its shareholders, and the market that the Company intends on acquiring income generating real estate properties to be part of its portfolio. Further, the Board intends to publish a Circular to Real Investment Zambia Shareholders, in line with the Listing Requirements of the Lusaka Securities Exchange for a Category 1 Transaction, on or after 10th August, 2023. The Circular will detail the acquisition of the properties named in this announcement. In line with the Listing Rules for a Category 1 Transaction, this announcement hereby sets out the details of the Transaction. Read more
In 31 trades recorded yesterday 24,336 shares were transacted resulting in a turnover of K82,727.63. A share price loss of K0.02 was recorded in Zambeef. Trading activity was also recorded in AECI, CEC Zambia, Chilanga Cement, PUMA, Standard Chartered Bank Limited, and Zanaco. The LuSE All Share Index (LASI) closed at 8,224.21 points, 0.02% lower than its previous close at 8,225.59 points. The market closed on a capitalization of K76,730.178,254.34 including Shoprite Holdings and K41,947,492,814.34 excluding Shoprite Holdings.