Story of the Day:
24th May 2020, Lusaka, Zambia – ZCCM Investments Holdings (ZCCM-IH) has prioritised investments in the mining sector particularly in other minerals such as gold and manganese. As mandated by Government to harness the gold potential in the country, ZCCM-IH strategy is to forge partnerships with any industry player within the gold value chain. Read more
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The International Monetary Fund (IMF) has confirmed that Zambia will not receive its request for emergency Covid-19 relief funding because of the country’s unsustainably high levels of debt. Speaking to a virtual press conference held on Thursday evening, IMF Director of Communications Gerry Rice told journalists that Zambia did not meet the necessary criteria to qualify for financing. Read more: Zambian Observer
Minister of Mines Richard Musukwa says government will soon announce a permanent solution to the liquidation process at Konkola Copper Mines – KCM. Mr. Musukwa says government does NOT desire to prolong the liquidation process but wants to guarantee operations and secure thousands of jobs at the mine. Read more: ZNBC
Transport and Communications Minister, Mutotwe Kafwaya says government has started the process of revamping ZAMPOST to make it viable and profitable. Mr. Kafwaya says this is being done by diversifying services through Electronic Commerce. ZAMPOST has this year invested $150,000 in it’s EMS fleet services. Read more: ZNBC
Gemfields Kagem Emerald Mine has suspended the hosting of its next auctions which were originally scheduled for May and June 2020 due to prevailing levels of uncertainty arising from the COVID-19 pandemic. The mine has also extended the suspension of operations for a period of one month to safeguard employees welfare during the COVID- 19 pandemic. Over 1,000 people are employed at Kagem. Read more: Zambian Business Times
In the week beginning the 24 May, the Kwacha is expected to extend its bulls, while lack of appetite for long dated government securities could result in dismal outcome in Friday’s 27 auction. Higher inflation readings are also expected this week. Read more: The Business Telegraph
International Business and Finance
The United States said on Friday it would add 33 Chinese firms and institutions to an economic blacklist for helping Beijing spy on its minority Uighur population or because of ties to weapons of mass destruction and China’s military. Read more: The New York Times
The UK government is drawing up plans to force a full phase out of Huawei from Britain’s 5G networks within three years, officials have confirmed. Downing Street has been under pressure from Tory MPs to ensure that the UK’s telecoms networks — including 5G mobile phone infrastructure — do not contain equipment from the Chinese company beyond 2023 because they believe this could compromise national security. Read more: Financial Times
Aston Martin is sacking its chief executive, Andy Palmer, following a 98% collapse in the luxury car company’s share price since it floated on the stock market less than two years ago. Read more: MSN
Goldman Sachs revised its growth forecast for India and said the economy is expected to contract by 5% for the fiscal year that began in April and ends in March 2021. Read more: CNBC
Jaguar Land Rover is in talks with the U.K. government to secure a loan of nearly $2 billion, following a drop in sales during the coronavirus pandemic. According to reports, the carmaker has been in discussions for weeks about a support package. JLR, which is owned by India’s Tata Motors, has seen sales plunge by more than 30% in its most recent quarter. Read more: BBC News
S&P Global Ratings on Friday said it projects South Africa’s economy to shrink by 4.5% this year as a result of the COVID-19 pandemic that has impacted production and consumption. Read more: Reuters
Nigeria’s economy could shrink as much as 8.9% in 2020 in a worst-case scenario without stimulus, Finance Minister Zainab Ahmed said on Thursday, a deeper recession than forecast after oil prices plunged due to the coronavirus pandemic. Read more: Reuters
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There were no trades recorded on Friday. The LuSE All Share Index (LASI) maintained its close at 4,078.25 points, as there were no share price movements. The market closed on a capitalization of K56,571,643,786 including Shoprite Holdings and K22,332,437,806 excluding Shoprite Holdings.
Chart of the Day: