Story of the Day
On the 2nd of December Zambians woke up to a new development, a somber one. The country’s energy minister Peter Kapala alerted the country on the resumption of what for a short time has become a thing of the past that of ZESCO the state-owned electricity supplier and owner of the majority of the country’s electricity generation capacity planned load management by shedding off some of its electricity demand to safeguard its infrastructure. This means that there will be reduction on the available electricity per day for some hours for a country which currently has an electricity demand standing at circa 2,300MW/year as per latest data . The development is said to be because of the low water levels in the Kariba dam, the country’s largest reservoir of the water that runs the Kariba North hydro power plant turbines which have a total installed generation capacity of 960 MW. Read more
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The International Monetary Fund (IMF) on Thursday urged default-stricken Zambia to strike a debt restructuring deal with its international creditors as soon as possible and will make a formal assessment of its predicament in spring next year. Zambia defaulted on its sovereign debt in 2020. In August, it won IMF approval for a $1.3 billion, three-year loan programme to help it restructure debts that the government said were $14.87 billion at the end of June 2022. “We discussed progress on debt restructuring talks, noting the ongoing discussions with creditors on resolving technical issues,” the IMF’s Zambia mission chief Allison Holland said after concluding a week-long trip to the country on Wednesday. “Achieving timely restructuring agreements with external creditors is essential to secure the expected benefits of the Fund-supported program,” she said. Read more: Reuters
Manufacturing pulse in Africa’s red metal hotspot slid infinitesimally further into contraction for the month of November. Shriveling for the second time after 4 months straight of expansion, purchasing managers index headlined 49.0 from 49.1 in the previous month as reported by Markit Economics. “Money shortages across the economy led to a further deterioration in business conditions in the Zambian private sector during November, with output an new orders both down for the second month running. In turn firms reduced their purchasing activity and employment,” the Markit Economics November release carried. Read more: BBC News
CTPD says it’s concerned that with the ZCCM-IH, FQM transaction, the country will see a mining sector where all critical large-scale mines are run by multinational enterprises with maximum influence. In a statement, CTPD research associate Webby Banda said although the rationale of the transaction was clear, it was still mind-boggling to a common Zambian. Read more: News Diggers
Citizens Economic Empowerment Commission (CEEC) has disclosed that it has so far disbursed over K90 million to 32,407 marketeers countrywide under the marketeers booster loans. Speaking in an interview with Money FM News, Commission Public Relations and Communications Manager Michelo Mukata said this puts CEEC on course to make full disbursements of K171, 500, 000 to all the 75, 000 marketeers being targeted. He asked the marketeers to remain patient as the Commission conducts due diligence in order to make the disbursements to the right people. “The Commission has disbursed over K90 million to 32,407 marketeers countrywide and this is putting us on course to make full disbursements to all the 75, 000 marketeers that we are targeting and complete the disbursement of the K171, 500, 000.” Read more: Money FM
Government has signed a Compact Development Funding Grant Agreement for $8.3 million with the Millennium Challenge Corporation focused on job creation and economic growth. US Ambassador to Zambia Michael Gonzales says Zambia has massive potential for economic growth. Speaking after the signing ceremony, Finance and National Planning Minister Dr Situmbeko Musokotwane said he was happy that the efforts of the new dawn government had been recognised by the US government. Read more: News Diggers
Zambia has gravely lost returns from the timber sector despite its abundance because the product is exported as raw material coupled with smuggling and seeks to lure investment and encourage value addition, Minister of Green Economy and Environment (MGEE) Collins Nzovu has observed. The minister notes, with awe, despite the country’s endowment in the vast land mass with indigenous and valuable timber, much of exported product is raw and rife with corruption and illegality and want to ensure the country ‘reap the benefits. Interests from a French based International Association specialized in legal and certified timber trade seeking to explore investment opportunities in the forestry sector in Zambia are positive for the country’s want for benefit from the sector. Read more: Farmers Review Africa
International Business and Finance
Africa stands as the world’s fastest-growing economy. However, where the continent houses countries that are economically enticing, there are some that are not as equally appealing. This is not an indictment, but a testament to how rich Africa is as a whole when even the least financially unattractive regions in Africa are still highly sought after. Absa Africa Financial Markets recently released its Markets Index 2022, dubbed Harnessing the power of African opportunity. In this report, 26 African markets were studied and listed in order of their level of investment opportunities. About seven of these countries performed worse than last year. Absa used 6 key pillars to determine their investment index, these pillars are: market depth, access to foreign exchange, market transparency, tax and regulatory environment, capacity of local investors, macroeconomic opportunity, and legality and enforceability of standard financial markets master agreements. Read more: Business Insider
The US is entering a legal battle with Xbox-maker Microsoft to block its plan to purchase the gaming firm behind hit titles such as Call of Duty. Regulators cited competition concerns, saying they feared that if the deal went through, Activision Blizzard’s games would stop being offered on non-Microsoft gaming consoles. The Activision purchase was set to be the biggest in Microsoft history. The company said it would fight to complete the $69bn deal. Microsoft president Brad Smith said the company had “complete confidence in our case and welcome the opportunity to present our case in court”. The complaint against Microsoft is among the most-high profile legal fights to emerge from US President Joe Biden’s pledge to take a harder line against monopolies. Read more: BBC News
Almost two years since trading commenced under the African Continental Free Trade Area (AfCFTA), signed by 44 of the African Union’s 55 member states, the United States’ commitment to the project is being questioned. With crucial negotiations for the trade area’s implementation still underway, the US insisted in its August US Strategy Towards Sub-Saharan Africa document that it “will support the AfCFTA’s implementation.” But while the US has provided technical support in the form of workshops and programs, for example on digital trade negotiations and policy frameworks, there’s no evidence of US funding for activities specifically supporting the AfCFTA’s development and implementation, according to an August report by the Congressional Research Service. “The US has provided technical support for the AfCFTA under both the Trump and Biden Administrations, but there appears to be no current comprehensive source of data on funding for US activities specifically in support of AfCFTA’s development and implementation,” the policy paper says. Read more: African Business
The government has announced what it describes as one of the biggest overhauls of financial regulation for more than three decades. It says the package of more than 30 reforms will “cut red tape” and “turbocharge growth”. Rules that forced banks to legally separate retail banking from riskier investment operations will be reviewed. Those were introduced after the 2008 financial crisis when some banks faced collapse. The package of changes is being presented as an example of post-Brexit freedom to tailor regulation specifically to the needs and strengths of the UK economy. However, critics say it risks forgetting the lessons of the financial crisis. Read more: BBC News
Capital Markets Report
In 53 trades recorded yesterday, 13,257 shares were transacted resulting in a turnover of K31,950.54. A share price loss of K0.01 was recorded in Bata. Trading activity was also recorded in Copperbelt Energy Corporation Zambia, Madison Financial Services, PUMA, Standard Chartered Bank Limited and Zanaco as well as CEC Africa on the quoted tier . The LuSE All Share Index (LASI) closed at 7,336.59 points, 0.00% down from it’s previous close at 7,336.76 points. The market closed on a capitalization of 72,866,533,168.565 including Shoprite Holdings and K38,083,847,728.65 excluding Shoprite Holdings.