Good morning. Here’s what you need to know
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Government Pledges K1 Billion Support To Investrust
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ZPPA separates from Director General
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HH Commissions Dewatering Of Shaft 28
In Local Business and Finance News
President Hakainde Hichilema says the de-watering of Shaft 28 at Luanshya Copper Mines on the Copperbelt, will create over 3,000 jobs, which will in turn recapitalize small businesses. President Hichilema says Shaft 28 is expected to produce about 40,000 metric tonnes of copper once operational. This will contribute towards achieving the three Million tonnes national production target in the next 10 years. The President has explained that these developments will give a new lease of life to the people of Luanshya. He was speaking at the commissioning of the de-watering of Shaft 28 today in Luanshya district. And CNMC Luanshya Copper Mine Chairperson, Wang Jinguin said about 170 million cubic metres of water will be pumped out using customised pumps. Mr Wang said the water will be used in electricity generation and other activities such as agriculture, while a new concentrator will also be constructed. Read more: ZNBC
President Hakainde Hichilema has terminated the appointment of Zambia Public Procurement Authority –ZPPA- Director General, Idah Chella with immediate effect. This is pursuant to Article 270 of the Constitution. President Hichilema has thanked Mrs. Chella for the service rendered to the people of Zambia, Government and wished her well in her future endeavours. This is according to a statement issued to ZNBC News by State House Chief Communications Specialist Clayson Hamasaka. Read more: ZNBC
Yesterday at the Global Gateway High-Level Event on Education in Brussels, European Commissioner Jutta Urpilainen showcased the European Union’s strong commitment to invest in quality education for all, signing with the Honourable Minister of Education Douglas Syakalima an agreement to work together to implement €110 million in EU grant funding for the benefit of Zambia’s National Development Plan and Free Education Initiative. The funds will help enhance the quality of primary and secondary education, reduce girls’ dropout rate, increase accessibility for learners with disabilities, and boost early childhood education and development in the Luapula and North-Western Provinces. Commissioner Urpilainen said: “The European Union’s Global Gateway investments in education are focused on enhancing access to quality education and skills training for all in an equitable way. Education and skills are key to combating inequalities and to creating jobs and prosperity, in particular in the context of the just green and digital transitions.” Read more: European Union
Government has pledged about K1 billion fiscal support towards Investrust Bank PLC in possession, whose losses currently stood at K11 million. The estimated insolvency at the time of repossession was K850 million. Bank of Zambia (BoZ) Governor, Denny Kalyalya, explained that the buffer was expected to go up once the statement of Affairs was ready. Further, the Central Bank announced that depositors of Investrust Bank PLC in possession are expected to receive their money from April 26, 2024 when the first payment would be made, with the maximum payment of K500,000. Addressing journalists in Lusaka on Thursday, Kalyalya said: “This fiscal support is critical in the context of the need to protect the integrity of the financial system and to support other key measures to promote growth and financial inclusion including the recent conclusion of debt restructuring with bondholders. “Having a failed institution if not addressed properly creates other challenges which we do not want to have given what we have been through, so this is what compelled the government to step in to provide this fiscal support,” he said. Read more: Zambia Monitor
An internal audit conducted by the Ministry of Finance and National Planning has revealed that a total sum of K356,040,228.12 was abused between January 2022 to June, 2023 under the Ministry of Education. Secretary to the Treasury, Felix Nkulukusa, said the review was in form of an internal audit undertaken by the Internal Audit Division and the exercise covered the period January 1, 2022 to June 1, 2023. Nkulukusa in a statement issued in Lusaka on Thursday, stated that the audit was conducted at three schools per district in six selected districts in each province. He said according to the data submitted at the time of review, the Ministry of education had a total of 12,275 schools and a total of K2,145,476,481.29 was funded to all schools during the period January 1, 2022 to June, 30, 2023. Read more: Zambia Monitor
World Wide Fund for Nature (WWF) Zambia has urged Government to ensure that no mining is permitted in the lower Zambezi National Park as it is a protected area. Organization Country Director, Nalucha Ziba also advised government to remain unbiased by not allowing illegalities in the name of creating a conducive business environment for foreign direct investments. Mrs. Ziba however applauded the Ministry of Mines and Minerals Development for canceling a mining license in the Lower Zambezi National Park, stating that this is a clear demonstration of government’s good practice of mining compliance. She said the Organization does not oppose mining activities in non-protected areas but activities should be done responsibly and sustainably in order to prevent biodiversity loss and Environmental degradation. Read more: MoneyFM
In International News
U.K. gross domestic product rose 0.1% in February, the Office for National Statistics said on Friday, providing another sign of a return to sluggish economic growth this year. The month-on-month figure was in line with a projection in a Reuters poll. On an annual basis, GDP was 0.2% lower. The economy contracted in the third and fourth corners of 2023, putting the U.K. in a technical recession. January recorded light growth, which was revised upward to 0.3% on Friday. Construction output, which boosted growth at the start of the year, fell 1.9% in February. Instead, production output was the biggest contributor to the GDP, rising by 1.1% in February, while growth in the U.K.’s dominant services sector slowed to 0.1% from 0.3%. Read more: Bloomberg
President Joe Biden has been urged to ban imports of Chinese-made electric cars to the US. The chair of the Senate Banking Committee, Senator Sherrod Brown, wrote “Chinese electric vehicles are an existential threat to the American auto industry”. His comments are the strongest yet by any US lawmaker on the issue, while others have called for steep tariffs to keep Chinese electric vehicles (EV) out of the country. In February, the White House said the US was opening an investigation into whether Chinese cars pose a national security risk. “We cannot allow China to bring its government-backed cheating to the American auto industry”, Senator Brown said. Read more: BBC News
Netflix co-founder Reed Hastings and former Alphabet CEO Eric Schmidt, via his foundation, have participated in a funding round for an African solar irrigation startup. The duo, alongside other investors including InfraCo Africa Ltd. and Acumen Fund Inc., invested $27 million in SunCulture, Bloomberg reported. SunCulture, headquartered in Nairobi, has raised over $65 million to provide rural farmers with solar-powered irrigation systems. This funding marks progress towards its goal of raising $219 million to install 274,000 of its systems in Kenya alone. That funding would come from equity, debt, grants and carbon financing, according to SunCulture. The startup’s systems offer a more reliable alternative to rainfall and traditional diesel or petrol pumps. They are cost-effective, utilize renewable energy, and require minimal maintenance, benefiting farmers in remote areas. Read more: Business Insider
Big technology-related company earnings are expected to again lead S&P 500 profit growth in the upcoming U.S. reporting period, which could refuel optimism for stocks after a weak start to April. Interest rate outlook worries hang over the first-quarter earnings season, with the expected timeline for Federal Reserve rate cuts being pushed back as the economy remains robust. Analysts expect S&P 500 companies in aggregate to report earnings increased 5% in the first quarter from a year earlier, according to LSEG data, after much stronger-than-expected earnings growth of 10.1% in the fourth quarter 2023 led by gains in megacap tech. Read more: Reuters
Finally, Capital Markets News
In 224 trades recorded yesterday, 482,231 shares were transacted resulting in a turnover of K13,110,130.15. The following price changes were recorded yesterday: +K0.18 in PUMA and +K 0.05 in CEC Africa on the quoted tier. Trading activity was also recorded in Airtel, CEC Zambia, National Breweries, Real Estate Investment Zambia, Standard Chartered Bank Limited, Zambeef, ZANACO, Zambia Sugar and ZAFFICO. The LuSE All Share Index (LASI) closed at 12,766.68 points, 0.16% higher than it’s previous close at 12,746.62 points. The market closed on a capitalization of K99,736,978,002.09 including Shoprite Holdings and 64,954,292,562.09 excluding Shoprite Holdings.
17 Govt Bond trades with total face value of K73,859,000 were processed yesterday, resulting in a total turnover of K48,619,790.