Good afternoon. Here’s what you need to know
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Zambia, Sweden vow to strengthen cooperation
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Zambia, DR Congo sign deal to enhance border crossing, trade
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Airtel Africa reports strong financial performance amid a volatile macroeconomic environment
In Local Business and Finance News
Zambia and Sweden on Thursday reaffirmed their commitment to deepening cooperation, which has existed for a long time, for the benefit of their people. Zambian President Hakainde Hichilema and visiting Swedish Minister of International Development Cooperation and Foreign Trade Johan Forsell made this commitment during a meeting at State House in Lusaka. Acknowledging the cordial relationship between the two countries over the years, Hichilema emphasized the need to strengthen ties and explore new areas of cooperation. He thanked Sweden for its support in various sectors and encouraged more Swedish investors to explore opportunities, especially in reviving the economy and the mining sector. Hichilema welcomed Swedish firms to invest in green mining fields and support services, highlighting Zambia’s interest in tapping into Sweden’s technical expertise in agriculture and energy. The Swedish minister said that his visit underscored the importance his government attaches to bilateral cooperation with Zambia. News Ghana
The Democratic Republic of Congo (DRC) and Zambia on Thursday signed a cooperation agreement to facilitate cross-border trade under the regional bloc Southern African Development Community (SADC). Ministers from the two countries discussed a draft collaboration framework and action plan that has been developed with the aim of finding long-term solutions to challenges facing transporters. DRC Deputy Prime Minister in charge of the Interior and Security Peter Kazadi in opening remarks reiterated Congo’s commitment to finding lasting solutions to the problems linked to the Kasumbalesa border point. Read more: The East African
In a significant move, the Bank of Zambia (BoZ) has announced its intent to develop a regulatory framework for the use of cryptocurrencies in the country, cautioning individuals already involved in these transactions that they were doing so at their own risk. BoZ Governor, Denny Kalyalya, revealed plans for an upcoming meeting to discuss global approaches to cryptocurrency regulation, stating, “This is an evolving issue… we will be having a meeting where we are looking how different countries are positioning on this, so even us we are positioning ourselves how we can regulate.” Read more: Zambia Monitor
The Zambia Association of Manufacturers (ZAM) has urged the government to spearhead the procurement of goods and services under the proudly Zambian campaign. ZAM president, Ashu Sagar, said the government-led procurement initiatives would incentivize even large private entities to prioritize sourcing locally. He spoke at the local content conference and exposition in Lusaka on Thursday, themed “Actualising Local Content Through Localised Procurement. Sagar noted that vetted products from companies committed to high-quality standards were readily available. “For instance, in the Textile sector, if the government procures uniforms for the defense forces, hospitals, and schools locally, it would significantly empower businesses in the industry,” Sagar stated. Read more: Zambian Monitor
In International News
The U.S. would be better served by maintaining its open trade system rather than imposing new punitive duties on Chinese goods, the International Monetary Fund said on Thursday, adding that Washington and Beijing should work together to resolve their trade tensions. IMF spokesperson Julie Kozack told a regular news briefing that such trade restrictions as those announced by President Joe Biden on Tuesday can distort trade and investment, fragment supply chains and trigger retaliatory actions. “Fragmentation of this type can be very costly for the global economy,” she said. Kozack said the IMF identified some 3,000 global trade restrictions in 2023, up from 1,000 in 2019, and under a worst-case scenario of severe fragmentation into geopolitical blocs, this could reduce global economic output by some 7%, equivalent to removing the GDP of Japan and Germany combined. “With respect to the tariffs, our view is that the U.S. would be better served by maintaining open trade policies that have been vital to its economic performance,” Kozack said. “We also encourage the U.S. and China to work together toward a solution that addresses the underlying concerns that have exacerbated trade tensions between the two countries.” Read more: CNBC
China’s central bank left a key policy rate unchanged when rolling over maturing medium-term lending facility (MLF) loans on Wednesday, in line with market expectations. The steady MLF rate shows the central bank’s focus on keeping currency stability, analysts say, even as an unexpected credit contraction in April added to the case for more policy stimulus to prop up the world’s second-largest economy. The MLF loan operation also comes days ahead of the finance ministry’s scheduled sales of the first batch of 1 trillion yuan in ultra long-term special treasury bonds. Read more: Reuters
BHP Group would need to boost its latest offer around 30% to reflect fair value for Anglo American and its key copper assets, JPMorgan analysts said in a note. They raised their price target for London-listed Anglo to 27.75 pounds a share after reexamining the value of its copper assets, and said the discount for the shares to the implied value of BHP’s offer was at its greatest level, implying the market sees a deal as unlikely. Anglo has rejected two bid proposals from BHP. Under UK takeover rules BHP must make a firm offer by May 22, or walk away. BHP’s latest proposal was 27.53 pounds per share, up from 25.08 previously. Read more: Reuters
Airtel Africa plc has announced its financial results for the year ended 31 March 2024, showcasing a resilient performance amid a volatile macroeconomic environment. The company reported a 9 % increase in its total customer base, reaching 152.7 million, with a significant growth of 17.8% in data customers to 64.4 million and a 20.8% increase in data usage per customer and another increase in mobile money subscribers. Africa’s leading telecom company has also reiterated its Continued commitment to network investment to support an enhanced customer experience and drive increased coverage. “Mobile money subscriber growth of 20.7% reflects our continued investment into distribution to drive increased financial inclusion across our markets. Transaction value increased by 38.2% in constant currency with an annual transaction value of over $112bn in reported currency. The Increase in transactions across the ecosystem reflects the enhanced range of offerings and increased customer adoption, supporting constant currency ARPU growth of 8.6%.” The company’s revenue in constant currency grew by 20.9%, driven by robust growth in mobile services and mobile money revenue. Despite currency headwinds, Airtel Africa maintained a resilient EBITDA margin of 48.8%, with EBITDA increasing by 21.3% in constant currency. Read more: Zambia Business Times
Chinese authorities have unveiled their most significant steps yet to address the crisis that has been dragging on the country’s property sector in recent years. The new measures include cutting the amount home buyers need for a deposit and encouraging local authorities to purchase unsold properties. Problems in China’s property market are having a major impact on the world’s second largest economy as the industry had been a key driver of growth until recently. The People’s Bank of China (PBOC) said it would set up a 300bn yuan ($41.5bn) facility to support affordable housing. The money would be aimed to support local state-owned enterprises to buy unsold homes, said Tao Ling, a deputy governor at the central bank at a news briefing. Read more: BBC News
Finally, Capital Markets News
In 176 trades recorded yesterday, 61,483 shares were transacted resulting in a turnover of K345,305.42. The following price changes were recorded yesterday: +K0.11 in Chilanga Cement. Trading activity was also recorded in Airtel, British American Tobacco Zambia, CEC Zambia, PUMA, Real Estate Investments Zambia, Standard Chartered Bank Limited, Zambia Breweries, ZCCM, Zambeef, ZANACO and Zambia Sugar. The LuSE All Share Index (LASI) closed at 12,871.39 points, 0.04% higher than its previous day close at 12,866.48 points. The market closed on a capitalization of K100,209,892,991.00 including Shoprite Holdings and K 65,427,207,551.00 excluding Shoprite Holdings.
A total of 6 Govt Bond trades with total facevalue of 24,868,000 and turnover 21,473,140 were processed yesterday.