Story of the Day
First Quantum Minerals Ltd. issues the following statement today on the status of its negotiations with the Government of Panamá on a framework governing the operation of the Cobre Panamá mine by its subsidiary Minera Panamá, S.A. The Government of Panamá and MPSA were unable to reach an agreement by the December 14 deadline imposed by the government. The economic package MPSA has proposed would make Cobre Panamá one of the highest payers of royalties and taxes amongst the large copper producing mines in the Americas. The economic package was agreed on almost all clauses and incorporated the agreements in principle made earlier this year, including a contribution of $375 million in benefits per year with mutually agreed protections. Read more
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U.S. Treasury Secretary Janet Yellen said on Thursday it was important for Zambia’s creditors to conclude an equitable debt restructuring deal for the southern African country as quickly as possible to build credibility for the G20 Common Framework for poor-country debt relief. Yellen said in remarks at the start of a meeting with Zambian President Hakainde Hichilema that she would discuss the need for debt sustainability and support for Zambia from international financial institutions. “I believe achieving fair burden sharing among all bilateral official and private creditors will be important for building credibility for this important initiative,” Yellen said, without mentioning China, Zambia’s largest bilateral creditor. Read more: MSN
Zambia is looking to sell a Gulfstream G650ER jet bought for the presidency for $194.9 million in 2019 as it seeks to cut costs. President Hakainde Hichilema pledged to offload the plane once elected, and hasn’t used it since taking office in August last year, opting rather for commercial flights or an older presidential jet. The previous administration overpaid for the aircraft, according to Defense Minister Ambrose Lufuma. “Wastage came to $60 million, now, $60 million — to put it into context — is equivalent to another Gulfstream Jet ER,” he told lawmakers on Thursday. It would be prudent to sell the aircraft and buy a cheaper one with “comparable capacity,” the minister said. Read more: Bloomberg
The 2021 Labour Force Survey has revealed that out of the total working age population of over 10 million people, only 3.6 million are in the labour force while 6.4 million are outside the labour force because of various reasons such as schooling, disease or injury. Speaking during the launch of the 2021 Labour Force Report in Lusaka this morning, Minister of Labour and Social Security Brenda Tambatamba explained that according to the survey, the unemployment rate with respect to the available labour force is estimated at 12.5 percent, which is a reduction from 13.8 percent recorded in 2020. Read more: Lusaka Times
British High Commissioner to Zambia Nicholas Woolley has described Zambia Sugar as a central part of Zambia’s agricultural and food processing industries, providing employment and a great end product to the market. Speaking after he toured Zambia Sugar’s plant in Mazabuka recently, Woolley observed that the company employs over 7,200 people in its operations directly, with many more benefiting through its supply chains. Read more: News Diggers
International Business and Finance
At the ongoing US-Africa Leaders summit in Washington, President Joe Biden has declared that his country is “all in on Africa’s future.” The US president made the comments on Wednesday while addressing a conference of 49 African leaders, saying, “When Africa succeeds, the United States succeeds. Quite frankly, the whole world succeeds as well.” In addition to his comments, White House National Security Advisor Jake Sullivan said the United States aims to help African countries achieve their own goals. According to Sullivan, the White House is pledging $55 billion in economic, health and security support for Africa over the next three years. Read more: Business Insider
The Bank of England has raised UK interest rates to their highest level for 14 years as it battles to stem soaring prices. It increased them to 3.5% from 3%, marking the ninth time in a row it has hiked interest rates. The rise will mean higher mortgage payments for some homeowners and those with loans at a time when many people are struggling with the cost of living. Read more: BBC News
Sudan has signed a $6 billion agreement with a consortium led by the United Arab Emirates’ AD Ports Group and Invictus Investment to develop a new port and economic zone in the Red Sea. “This mammoth project, estimated to cost around $6 billion, will give a powerful boost to the national economy and bring countless benefits to the country as a whole,” said Sudanese Finance Minister Gibril Ibrahim at the signing ceremony. The Abu Amama port, which will be built north of the Port Sudan port through which almost all of the country’s imports and South Sudan’s oil exports pass, will include an industrial zone, an international airport and an agricultural zone covering more than 400,000 acres, Ibrahim said. Read more: Africa News
Christmas is just 10 days away, and investors hoping for a Santa Claus rally have found little holiday cheer on Wall Street this month – especially Thursday. The Dow plummeted nearly 765 points, or 2.3%, Thursday, and it is down 4% in December following solid gains the previous two months. Verizon was the only one of the 30 Dow stocks in positive territory. The S&P 500 fell 2.5% and the Nasdaq was 3.2% lower Thursday. The S&P 500 is now off 4.5% for the month while the Nasdaq has sunk nearly 6%. Read more: CNN
Capital Markets Report
In 88 trades recorded yesterday, 1,496,772 shares were transacted resulting in a turnover of K10,157,009.75. A share price gain of K0.01 was recorded in both Zambeef and Zanaco. Trading activity was also recorded in CEC Zambia, PUMA, Stanard Chartered Bank Limited, Zambia Breweries, Chilanga Cement and Zambia Sugar as well as CEC Africa on the quoted tier. The LuSE All Share Index (LASI) closed at 7,340.60 points, 0.05% points up from it’s previous close at 7,336.59 points. The market closed on a capitalization of 72,883,976,465.17 including Shoprite Holdings and K38,101,291,025.17 excluding Shoprite Holdings.