Good morning. Here’s what you need to know
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Zambia secures $458 million MCC compact deal to boost agro-business
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First Quantum mine not on agenda this year, says Panama President
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Copper price sinks below $9,000 threshold as metals selloff deepens
In Local Business and Finance News Sponsored By
According to Grandview Research, the global jewellery market, currently valued at over $350 billion, is projected to grow at a compounded annual growth rate of 4.7%, reaching $482 billion by 2030. For Zambia, a key supplier of gemstones for jewellery manufacturing, the biggest challenge and opportunity lie in adding value locally to benefit from this growth. The resilience and promise of the global jewellery industry are evident across various economic conditions. A 2014 McKinsey report predicted significant growth for the sector, with annual global jewellery sales reaching €250 billion by 2020. In response, Indian jewellers crafted a comprehensive export strategy in 2017, aiming to achieve $60 billion in jewellery exports within five years. This strategy, driven by both private and public sectors, can serve as a valuable case study for Zambia. Read more on Financial Insight
Vedanta Resources Holding Limited has officially resumed control of Konkola Copper Mines (KCM) operations following a pivotal legal development. The Lusaka High Court has lifted the liquidation status of KCM after ZCCM-Investment Holdings (ZCCM-IH) withdrew its winding-up petition against the mine. In a recent ruling, Lusaka High Court Judge Charles Kafunda granted an Ex-parte Order that allows for the withdrawal of the winding-up petition filed by ZCCM-IH. This decision marks a significant turning point in the legal and operational saga surrounding KCM. The court’s ruling has led to the restoration of KCM’s Board of Directors and the removal of the provisional liquidator, Ms. Celine Mena Nair. The return of control to Vedanta Resources signifies a new phase for the mining operation, which has been under legal and financial scrutiny for an extended period. Read more: Lusaka Times
The Millennium Challenge Corporation (MCC) has awarded Zambia a compact of US$458 million, following more than US$377 million in previous grant funding. MCC Principal Deputy Vice President, Kyeh Kim, announced this on Wednesday evening at MCC Headquarters in Washington, D.C., celebrating the completed negotiations. This information was shared by Charles Tembo, the First Secretary for Press and Public Relations at the Zambian Embassy in Washington, D.C. Kim highlighted that this deal was the fastest ever negotiated in MCC’s history and praised the Zambian government for its dedication to improving the lives of its people. Read more: Zambia Monitor
ZANACO Bank has introduced a new financing product to promote the adoption of renewable energy in Zambia. Head of Communications, Kyembe Kyalusanza, announced that the initiative aimed to help businesses and individuals invest in sustainable and reliable power sources, addressing the country’s power crisis. The new Vehicle Asset Finance product aligns with the bank’s 55th anniversary and Zambia’s 60th anniversary celebrations. Kyalusanza said that the product offered flexible and affordable loans for acquiring vehicles and equipment needed for renewable energy projects. This move supports the shift to cleaner energy and enhances energy security for Zambians. Acting Chief Executive Officer, Kalakaya Itwi, stated that the Vehicle Asset Finance product would facilitate the acquisition of essential assets, driving sustainable development and economic growth. Read more: Zambia Monitor
In International News
Copper tumbled — falling below the $9,000-a-ton threshold for the first time since early April — on the back of a selloff in global stock markets and rising pessimism about the outlook for demand in China and elsewhere. The industrial metal is down by about a fifth since reaching a record in mid-May, with bold, bullish bets on tightening supply and a looming surge in usage giving way to deepening worries about rising inventories and weak conditions in the Chinese spot market. A heavy selloff in global technology stocks also is raising doubts about the strength of the burgeoning artificial intelligence industry, after investors piled into copper on a bet that usage would surge in data centers and associated power infrastructure. Copper dropped as much as 2.2% to $8,900 a ton and was trading at $9,010 as of 10:47 a.m. London time. Nearly all metals were lower on the LME, with tin declining 2.6% and zinc losing 1.5%. Read more: Mining
Panamanian President Jose Raul Mulino said on Thursday the government will not address issues around a major shuttered First Quantum copper mine until the early 2025. The lucrative Cobre Panama mine, one of the world’s top sources of copper, was shut down in November hours after the country’s Supreme Court declared its contract unconstitutional. Panama had provided First Quantum a 20-year mining right with an option to extend for another 20 years, in return for $375 million in annual revenue to Panama. Read more: Mining
An audit of the UK’s public spending pressures will see claims of a “black hole” worth tens of billions of pounds by the new government. Chancellor Rachel Reeves said she would give a statement to Parliament on Monday showing “honesty” about the scale of the challenge faced by the new Labour government. She vowed to “fix the mess we inherited” but would not confirm speculation that the “black hole” stood at more than £20bn per year. The new government will suggest its predecessor left various crucial public services unfunded in areas from public pay to prisons. Read more: BBC News
The last decade has been very lucrative for the world’s super-rich residents, fueling the drive by some advocates to tax them more. The top 1% has seen its wealth soar by $42 trillion over the past decade, according to a new analysis by Oxfam International, which is being released ahead of the G20 finance ministers and central bank governors’ meeting in Brazil. That’s nearly 34 times more than the bottom 50% of global population. The average net worth of the elite jumped by nearly $400,000 per person, after adjusting for inflation, compared to $335 for the bottom half of residents. “Inequality has reached obscene levels, and until now governments have failed to protect people and planet from its catastrophic effects,” said Max Lawson, Oxfam International’s head of inequality policy. “The richest one percent of humanity continues to fill their pockets while the rest are left to scrap for crumbs.” Oxfam regularly issues reports highlighting global inequality and pushes for changes to start evening the playing field. The latest analysis comes as the advocacy group, along with several partners, is calling on G20 leaders to hike taxes on the ultra-rich. As part of its G20 presidency, the Brazilian government recently commissioned a study on raising taxes on the wealthy. The report, prepared by French economist and inequality expert Gabriel Zucman, found that a 2% minimum tax on global billionaires’ wealth would yield between $200 billion and $250 billion from about 3,000 taxpayers annually. Read more: CNN
Finally, Capital Markets News
In 124 trades recorded yesterday, 142,827 shares were transacted resulting in a turnover of K718,336.14. No price changes were recorded yesterday. Trading activity was recorded in AECI, Airtel, CEC Zambia, FARM, Madison Financial Services, National Breweries, PUMA, Real Estate Investments Zambia, Standard Chartered Bank Limited, ZAFFICO, Zambeef, ZANACO, Zambia Sunga and CEC Africa on the quoted tier. The LuSE All Share Index (LASI) maintained its previous day closed at 14,462.17 points. The market closed on a capitalization of K118,483,803,810.24 including Shoprite Holdings and K75,005,447,010.24 excluding Shoprite Holdings.
A total of 49 Govt Bond trades with quantity K538,398,000 and turnover K385,835,090 were processed yesterday.
