Good morning. Here’s what you need to know
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Zambia, World Bank sign agreements as country set to receive $250 million
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South Korea donates to Zambia
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China’s exports grow more than expected in May, up by 7.6%
In Local Business and Finance News
Minister of Foreign Affairs and International Cooperation Mulambo Haimbe has expressed gratitude to the Republic of Korea for the support in sectors such as infrastructure and the donation of US$285,000 for the purchase of motor vehicles to support the Government. Mr Haimbe says Zambia is grateful to the Korean government for the support rendered to the education sector through KOICA, and the Global Korea Scholarships (GKS) Graduate Degree Programme. He said this during a bilateral meeting with Minister of Foreign Affairs of the Republic of Korea in Seoul, Cho Tae-Yul, on the margins of the 2024 Korea-Africa Summit. Mr Haimbe acknowledged the strong bonds of diplomatic relations between Zambia and the Republic of Korea. The Minister praised the Republic of Korea for successfully hosting the inaugural Korea-Africa Summit. Read more: Lusaka Times
Food Reserve Agency (FRA) has announced that it has with immediate effect started buying Grade A Non-Genetically Modified white maize from small scale farmers in all its satellite depots countrywide at K330 for a 50kg bag or K6,600 per metric tonne during the 2024 crop marketing season. FRA Executive Director Mwansa Chamatete said the set price is reflective of considerations such as the cost of production for maize and current market trends among other factors. Mr. Chamatete stated that during this year’s crop marketing season, the Agency is continuing to pay cash on the spot to farmers delivering maize to its depots, and will also be paying farmers through designated banks as well as mobile money platforms to quicken the payment process. “In this regard, the Agency wishes to inform the public that all its satellite depots countrywide are now open and ready to receive maize from small-scale farmers. Due to the drought experienced, the Agency has been strategic in setting up depots and has increased the number of depots in areas that did not experience drought and are likely to record good harvests.” Read more: Money FM
The World Bank and Zambia have signed two agreements: the National Energy Advancement and Transformation (NEAT) Programme as well as the financing agreement for the Girls’ Education and Women’s Empowerment and Livelihoods for Human Capital Project (GEWEL 2). Meanwhile, World Bank Country Director, Nathan Belete, announced an additional US$250 million support as grant on Thursday in Lusaka. Belete said Zambia would receive it over the coming few weeks. “Since July 1, 2023, all of the World Bank’s support to Zambia through the IDA has been provided as grants. “To date, we have provided UD$647 million, and an additional US$250 million is expected, to realise a total of US$897 million in IDA grants to Zambia during our current fiscal year, ending June 30, 2024,” he said. On the NEAT programme, Belete said the Bank had put in place a 10 year multi-phase facility with a resource envelope of US$700 million facility aimed at increasing the financial sustainability, operational reliability, and resilience of the electricity sector in Zambia. The Director also talked about the second phase of the GEWEL project whose objectives were to deepen human capital growth and promote the productivity of the poorest and most vulnerable Zambians for longer-term development outcomes. Read more: Zambia Monitor
Zambia is in a an acute food deficit of over two million metric tonnes, according to Agriculture Minister, Mtolo Phiri, in an official announcement. This is as the shortfall in maize accounts for over 1.3 million metric tonnes. Phiri said this at the announcement of the crop forecasting survey results of the 2023/2024 agriculture season. He pointed out that Zambia was in an over two million metric tonnes food deficit. The Minister attributed the deficit to the drought that had so far hit six of the country’s 10 provinces. “The country had recorded a deficit of 1,323,288 metric tons of maize, 548,644 metric tons of cassava, 55,138 metric tons of paddy rice and 225,296 metric tons of wheat,” Phiri said. He also said Zambia had seen a reduction in maize production from more than three million metric tonne that was recorded in the 2022/2023 farming season to 1.5 metric tons in the last farming season. He added that the production of soya beans had reduced to 169,700, from 760,067 metric tons recorded in 2023. Read more: Zambia Monitor
In International News
China’s exports in May grew faster than expected, while imports missed forecasts, customs data showed Friday. Exports rose by 7.6% in May from a year a go in U.S. dollar terms, beating expectations for 6% growth, according to a Reuters poll. Imports, however, rose by 1.8% during that time, missing the Reuters’ forecast for 4.2% growth. In April, China’s exports rose by 1.5% year-on-year, while imports climbed by 8.4%. For the first five months of the year, U.S. dollar-denominated exports rose by 2.7% from a year ago, while imports were up by 2.9%. China’s imports and exports to the U.S. and EU fell during that time, according to CNBC calculations of official data. But trade with the Association of Southeast Asian Nations rose, with China’s exports to the region up by 4.1% year-on-year in the January to May period, the data showed. China’s exports to Russia fell during that time, while imports from Russia rose by 7.5%. Read more: CNBC
The Central Bank of Congo (BCC) has mandated that all Electronic Payment Terminals (EPTs) in the Democratic Republic of Congo (DRC) only accept Congolese francs. This move aims to boost the use of the national currency and reduce reliance on the US dollar, which weakens the franc. According to the BCC, this measure aims to strengthen the use of the national currency and encourage the population to prefer it for everyday transactions of goods and services. This initiative is part of a series of major reforms launched by Nicolas Kazadi, the former Minister of Finance, aimed at combating the dollarization of the economy and promoting financial inclusion. Currently, only 13% of EPTs accept Congolese francs, favoring foreign currencies in the dollarized economy. The BCC’s new policy supports previous measures requiring prices and state payments to be in the national currency. Read more: Africa News
Uganda’s finance ministry has signed an agreement with South Korea for a $500 million loan to help finance infrastructure building in the East African country. The agreement, announced on Thursday, was signed by Uganda’s finance minister, Matia Kasaija, and South Korea’s Minister of Foreign Affairs, Cho Tae-Yul, during the Korea-Africa summit in Seoul. According to Reuters, South Korea’s EXIM Bank will provide the loan, which is expected to be used for road and energy projects. The ministry did not specify which infrastructure projects the funds would support. Read more: Business Insider
The Botswana government may raise its shareholding in global diamond miner De Beers, President Mokgweetsi Masisi told JCK News, after parent company Anglo American said it plans to spin off or sell the business. The government owns a 15% stake in De Beers and Botswana accounts for 70% of the company’s annual rough diamond supply. Anglo outlined a radical review of its business including a sale or divestment of the diamond business to focus on copper, iron ore and a fertilizer project in the UK to fend off a takeover from bigger rival BHP Group. Masisi told JCK in Las Vegas that Anglo’s sale of De Beers would be “the best thing” if it happens. The government could raise its shareholding in De Beers “if it’s attractive to,” Masisi told the online diamond news channel. The president in May told CNBC Africa that government would defend its interests in the diamond miner. Read more: Mining
Finally, Capital Markets News
In 19 trades recorded yesterday 9,097 shares were transacted resulting in a turnover of K 89,923.60. The following price changes were recorded yesterday: K0.13 loss in ZAFFICO. Trading activity was also recorded in Airtel Zambia, Chilanga Cement, Real Estate Investments Zambia, Zambeef, ZANACO, Zambia Sugar and CEC Africa on the quoted tier. The LuSE All Share Index (LASI) closed at 13,103.09 points, 0.09% lower than its previous close of 13,114.67 points. The market closed on a capitalization of K101,321,612,552.02 including Shoprite Holdings and K66,538,927,112.02 excluding Shoprite Holdings.
16 Govt Bond trades with a total face value of K74,909,000 and turnover K64,112,560 were processed yesterday
