Good morning. Here’s what you need to know
- Zambia to benefit from $80 million financing deal, as UBA, AfCFTA sign agreement
- IMF mission visits Ethiopia as it pushes for loan deal
- Apple lawsuit: US accuses tech giant of monopolising smartphone market
Local Business News
The United Bank for Africa (UBA) has signed an agreement with the African Continental Free Trade Area (AfCFTA) to provide financing of up to US$80 million to eligible Small and Medium Enterprises (SMEs) in Zambia. Zambia was allocated US$80 million to provide financing to Zambian SMEs from the US$6 billion three years financing agreement signed between the UBA Group and AfCFTA Secretariat recently. Announcing the development in Lusaka on Thursday, UBA Country Chief Executive Officer, Chinedu Obeta, said SMEs would have access to an amount of up to US$150,000, Kwacha equivalent. Obeta stated that the products under the financing agreement included asset finance, working capital finance, facilities such as short term loans and overdrafts. “It is designed to provide the much needed financing to African and Africa based Small and Medium-scale Enterprises in various sectors including Agro-processing, automotive, pharmaceuticals and transport and logistics,” he stated. Obeta added that Zambia with its vibrant SME sector, stands to benefit immensely from the initiative. Read more: Zambia Monitor
President Hakainde Hichilema says unveiling of the new investors for Mopani Copper Mine (MCM) is an economic achievement. He said that while the previous regime piled challenges in Mopani, his government had been resolute on finding solutions to challenges facing the country. “This will help in reducing the debt stock of Mopani to about US$550 million from an accumulated US$1.7 billion as result of interests,” he said. President Hichilema said the Copperbelt was poised for mining recovery following the resolution of the Mopani issue. He added that the scheduled investments of around US$610 million in Mopani operations was significant to stabilise operations at the mine. The Head of State said this was a new chapter and new beginning for the Copperbelt and the economy as a whole. Read more: Zambia Monitor
The government has allocated 65 million Kwacha to accelerate rural electrification projects in North Western Province. Energy Permanent Secretary Francesca Zyambo says the province is growing owing to the numerous investment projects which has led to an increase in the demand for electricity. She said the government wants to make sure that rural communities have access to electricity to spur economic development. Dr. Zyambo has since called on mines in North Western Province to partner with the government in accelerating rural electricity connection. Read more: ZNBC
Cabinet has approved the issuance of a Statutory Instrument to suspend duty on the importation of wheat to meet the local deficit. This is in an effort to facilitate the importation of 100 thousand metric tonnes of the grain. Chief Government Spokesperson Cornelius Mweetwa says Cabinet, on its last sitting at State House on March 18, 2024 chaired by President Hakainde Hichlema, decided to lift the ban on the importation of wheat imposed in 2015, to meet local demand. Mr. Mweetwa, who is also Information and Media Minister, says the statutory instrument has guided that the 100 thousand metric tonnes of wheat must be imported by August 30, 2024. He says this is to also allow millers to continue production in the face of the low supply of the commodity before the harvesting season, when national wheat stocks are expected to be sufficient. Read more: ZNBC
In International Business News
Ethiopia said Thursday that an International Monetary Fund (IMF) staff mission was in the country as work to secure a loan program from the multilateral lender gathers pace. Cash-strapped Addis Ababa has requested billions from the IMF to help pay back debt and to stabilize the economy hit by currency shortages and high inflation. Reports say that the figure is $3.5 billion. But conflict in its north and failure to secure commitments for debt relief from its creditors has seen talks with the Washington-based lender drag on for months. In December, the Paris Club said its offer to suspend Ethiopia’s debt payments until 2025 could be withdrawn if the country does not secure an IMF loan by the end of March 2024. Addis Ababa has already received guarantees for debt relief from China, its largest bilateral creditor. But the country faces pressure to settle a $1 billion Eurobond due at the end of this year. Read more: Africa News
The US has filed a landmark lawsuit against Apple, accusing the tech giant of monopolising the smartphone market and crushing competition. In the legal action, the justice department alleges the company abused its control of the iPhone app store to “lock in” customers and developers. It accuses the firm of taking illegal steps to thwart apps seen as a threat and make rival products less appealing. Apple has vowed to “vigorously” fight the lawsuit and denies the claims. Read more: BBC News
Shares of Reddit soared nearly 50 percent as the social media platform made its long-awaited stock market debut. Investors pushed Reddit’s value close to $9bn after it began trading on the New York Stock Exchange on Thursday, with the company’s share price peaking at $57.80 before closing at $50.44. Reddit, founded in 2005 by entrepreneurs Steve Huffman and Alexis Ohanian, had priced its initial public offering (IPO) at $34 a share. The strong market debut makes Reddit’s IPO one of the biggest by a social media company so far, although the platform’s market value is dwarfed by rivals such as Meta, the owner of Facebook and Instagram, which is priced at $1.2 trillion. Read more: Al Jazeera
Adrian Hallmark, the experienced autos leader of luxury brand Bentley, has been appointed as new chief executive officer of Aston Martin. The 61-year-old will start in his new role no later than Oct. 1, the company announced Friday. Outgoing leader Amedeo Felisa will remain in his post until that time. “He brings more than 25 years of highly successful senior automotive experience from the US, Europe, and Asia with companies such as Bentley, Porsche and Volkswagen,” Aston Martin Lagonda said in a statement. Read more: CNBC
Finally, Capital Markets News
In 162 trades recorded yesterday 61,349 shares were transacted resulting in a turnover of K505,413.38. The following price changes were recorded yesterday: -K1.80 in AECI, +K0.14 in CEC Zambia, -K0.01 in Zambeef and +K0.01 in ZANACO. Trading activity was also recorded in Airtel, Bata, British American Tobacco Zambia, Chilanga Cement, National Breweries, Standard Chartered Bank Limited, ZCCM, Zambia Sugar and ZAFFICO. The LuSE All Share Index (LASI) closed at 12,569.71 points, 0.37% higher than it’s previous close at 12,523.26 points. The market closed on a capitalization of K97,095,664,412.48 including Shoprite Holdings and K62,312,978,972.48 excluding Shoprite Holdings.