Good morning. Here’s what you need to know to start your day.
-
Govt rolls out tax incentives to encourage public, private partnerships
-
Congress approves debt deal, averting a US default
-
Kenya to freely open its gates to any business-person of African descent
Story of the Day
Speaking during an interview with Financial insight Zambia (FiZ), Java foods CEO, Monica Musonda gave insights on the Java foods company, she said Java foods is a manufacturing business, which is Zambia’s leading instant noodle brand called Ezee noodles that has been in existence since 2012. They have been manufacturing this brand for 4 years now in Zambia because they recently built their factory here. The manufacturing company uses a 100% locally sourced Zambian wheat. The CEO who had grand visions starting the business says the company is where it needs to be as they have learnt so much on how to build a business, how to build brands, how to put a team together and are happy with the progress and that Zambians have supported it. Read more
In Local Business News Sponsored by
Preparations for the 2024 National Budget has hit top gear with the Ministry of Finance and National Planning holding budget plan stakeholders’ consultative meetings in Lusaka and Copperbelt Provinces. The two separate meetings attracted private sector representatives, civil society organisations, Government officials and members of the press. On the Copperbelt, the 2024 National budget and the 2024 – 2026 medium term expenditure framework consultative meeting took place in Ndola and featured Ministry of Finance economist from the budget office Davis Mtonga. In his keynote speech at the Lusaka meeting, Minister of Finance and National Planning Dr. Situmbeko Musokotwane said the government was committed to broad-based consultations when coming up with the nation. Dr. Musokotwane said the aspirations of the government can not be achieved without the strategic role that the private sector plays in the economy. Read more: Lusaka Times
Cabinet has approved various laws, among them the issuance of a Statutory Instrument (SI) to suspend customs and excise duties charged on importation of construction materials. The Customs and Excise (Suspension) (Construction Materials) (Public-Private Partnership) Regulations, 2023 is for importation of construction materials under the Public Private Partnership projects (PPPs). Makozo Chikote, acting Information and Media Minister, announced on Wednesday in a statement that 8th cabinet meeting presided by President Hakainde Hichilema deliberated on a number of issues. On the Customs and Excise Regulations, 2023, Chikote said it was meant to attract more investment in PPP projects and reduce government expenditure on capital projects such as roads construction. “The decision by Cabinet is in line with the provisions in the 2023 Budget which has introduced tax incentives aimed at encouraging investment in PPP infrastructure projects. Read more: Zambia Monitor
Government has called for the harmonization of road transport regulations between Zambia and Tanzania as it is posing as a serious challenge to conducting trade between the two countries. Transport and Logistics Minister, Frank Tayali, made the call during the Tanzania Ports Authority (TPA) stakeholder’s engagement Forum in Lusaka on Wednesday. Tayali said the transport businesses are faced with several challenges at the Port and along the Dar-es-Salam Corridor due to, among others, non-harmonization of road transport regulations. He said the Axle Load Control Act of 2016, which imposed lower tonnages on super single tires reduced the carrying capacities and volumes of trucks and tankers. Read more: Zambia Monitor
The Zambia Institute of Chartered Accountant – ZICA has warned that if no practical policy actions are taken to tackle the high unemployment levels in the country, the situation will negate the good efforts of providing free education and high quality education to end up producing graduates that will find themselves on the streets and cannot start businesses due to the sticky lending rates and lack of start-up capital. ZICA President Cecilia Zimba said Government still has a greater role to play when it comes to matters of job creation and therefore should be concerned with the rate at which unemployment is rising in the country. Zimba said a picture presented in the outcome of the recent recruitment processes is undoubtedly evident that Zambia is faced with a ‘time bomb’ of high unemployment. She said the evidence available suggests that there is no co-ordination and balance between the education sector (licensing of private colleges/universities), their enrolment practices and the jobs available in the economy. Read more: Zambian Business Times
Bank of Zambia Exchange Rates
Currency | Buying | Selling |
---|---|---|
USD | 19.5629 | 19.6096 |
GBP | 24.4302 | 24.4963 |
EUR | 20.9538 | 21.0117 |
ZAR | 0.9920 | 0.9947 |
In International Business News Sponsored By
The US Congress has approved a deal to lift the country’s borrowing limit, days before the world’s largest economy is due to default on its debt. The bipartisan measure sped through the Senate by a vote of 63-36, a day after it cleared the US House of Representatives. President Joe Biden has said he will enact the measure into law. His signature on the bill will spare the US from a catastrophic default on its $31.4tn debt. The country is forecast to overshoot its current debt ceiling on Monday 5 June. Read more: BBC News
The US and Taiwan signed a new trade deal on Thursday as tensions with China rise. It is the first agreement under a framework for talks between Washington and Taipei called the US-Taiwan Initiative on 21st Century Trade. The announcement comes ahead of a high-level global security summit in Singapore this weekend.In recent years, the relationship between the US and China has become increasingly strained. Taiwan’s Office of Trade Negotiations said the agreement was signed on Thursday morning, US time. The deal, which includes measures to streamline border procedures, is the first agreement to be signed under the new framework, which started last year. The framework aims to strengthen economic ties between Washington and Taipei, and open Taiwan to more US exports. Read more: BBC News
The parent company of DStv, SuperSport, and other media properties, MultiChoice Group, is establishing a new fintech joint venture with the goal of creating an “integrated payment platform for Africa.” The joint venture comes as MultiChoice attempts to expand its operations and will run under the newly established firm and brand named Moment. The tough economy and a slew of new streaming competitors that are providing consumers with a substantially increased variety of viewing alternatives are putting increasing pressure on the group’s mainstay pay-television sector. Read more: Business Insider
As a first significant step to removing obstacles to intra-Africa commerce, the President of Kenya, William Ruto has announced plans to abolish visa restrictions for African citizens traveling to Kenya for business. Dr. Ruto apologized for the visa requirements to public and business sector leaders at a session on the African Continental Free Trade Area (AfCFTA) in Nairobi on Monday. “My minister [for Trade Moses Kuria] has informed me that somehow some of our officials made you pay visas to come home and asked me to apologize, which I do. When one comes home, they don’t pay to come home,” he said. “I want to promise you that this might be the last time you are looking for a visa to come to Kenya because of two reasons. Number one, because this is home, and number two, we support wholeheartedly the AfCFTA. We must remove any impediments to the movement of people around our continent,” he added. Read more: Business Insider
Inflation in Europe has fallen to its slowest pace since Russia invaded Ukraine, bolstering the case for the region’s central bank to bring interest rate hikes to an end soon. Consumer prices in the 20 countries that use the euro rose 6.1% last month compared with a year ago, easing from 7% in April, according to an initial estimate Thursday from the European Union’s statistics agency. That’s the lowest rate of inflation since February 2022, when Moscow launched a full-scale invasion of its neighbor, sending global energy prices soaring. Read more: CNN
In 53 trades recorded yesterday, 95,427 shares were transacted resulting in a turnover of K415,820.31. A share price loss of K0.02 was recorded in Standard Chartered Bank Limited. Trading activity was also recorded in CEC Zambia, Chilanga Cement, PUMA, Real Estate Investment Zambia, Zambia Breweries, Zambeef and Zanaco The LuSE All Share Index (LASI) closed at 8,234.42 points. 0.09% down from its previous close of 8,242.08 points. The market closed on a capitalization of K76,774,598,978.90 including Shoprite Holdings and K41,991,913,538.90 excluding Shoprite Holdings.
Picture of the Day