Story of the Day
Countries with relatively small economic bases can generally point to their anchor institutions—including the manufacturing and extractive industries, or large private sector employers—as major contributors to their growth. In Zambia, mining operations anchor the economy, but another significant home-grown entity has grown to become a renowned brand that is creating its own economic impact across the country. Zambeef’s awe-inspiring story of braving the odds to become Zambia’s largest agri-business and food processor is one that every citizen – young and old – has come to learn and appreciate, as the company has been touching lives throughout its 27-year history. Read more
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Zambia on Thursday signed with China two protocols on sanitary and phytosanitary export of soya bean meal and stevia leaves to the Asian country. The protocols were signed by Chinese Ambassador to Zambia Du Xiaohui and Zambia’s Minister of Agriculture Mtolo Phiri in the southern district of Chikankata in the presence of Zambian President Hakainde Hichilema who said it was a mark of true friendship between China and Zambia. Read more: China.org
President Hakainde Hichilema is confident that Zambia will sign a debt restructuring deal with creditors in few days time. President Hichilema says this follows a meeting with creditors held earlier this week. He says China and other creditors, whom he applauded, are soon expected to announce the agreement with Zambia. Speaking after touring the $2.3 billion Kafue Gorge Lower Hydro Power Project today, President Hichilema said the agreement will help Zambia resolve its debt problem that his administration inherited last year. Read more: ZNBC
About US$10 million has been invested by World Vision since 2016, targeting 15,000 smallholder farmers across six districts who have been empowered with various agricultural skills to improve production and increase their incomes. Under the Transforming Households Resilience in Vulnerable Environments (THRIVE) project being undertaken in Katete, Kasenengwa, Mpika, Kanchibiya, Kasama and Luwingu, farmers are empowered with skills on early warning systems to prepare them on how to handle unstable climatic weather, agroforestry and on sustainable usage of natural resources. Read more: Zambia Daily Mail
The Zambia Chamber of Mines (ZCM) has proposed further changes to the mine tax regime in next year’s budget to lower the sector’s high tax rate that is inhibiting investments. In the 2022 national budget, Government made changes to the mine tax policy by making mineral royalty tax deductible as an expense. Tax deductibility refers to claims made to reduce the company’s taxable income, arising from various investments and expenses incurred by a taxpayer. Read more: Zambia Daily Mail
Minister of Mines and Minerals Development Paul Kabuswe says the delay in reopening Kasenseli gold mine is because government wants to ensure that everything is done correctly before operations resume at the mine. Responding to a question from the Zambian Business Times-ZBT, during a media briefing, on why government is not reopening Kasenseli gold mine, Kabuswe said the gold mine will be reopened at an appropriate time. Read more: Zambian Business Times
International Business and Finance
The European Central Bank (ECB) has raised interest rates for the first time in more than 11 years as it tries to control soaring eurozone inflation. The ECB increased its key interest rate by 0.5 percentage points to 0.0% and plans further hikes this year. The rate has been negative since 2014 in a bid to boost the region’s economy after years of weak growth. Read more: BBC News
The CEO of Africa50, Mr Alain Ebobissé, has urged Africa’s private sector to commit to investing in the continent’s infrastructure upgrade. The continent needs between $68 billion and $108 billion worth of annual investments to close its infrastructure deficits. Africa50, which is a subsidiary of the Africa Development Bank (AfDB) has over the past six years been mobilising private sector investments in Africa’s infrastructure. Read more: Business Insider
President Nana Akufo-Addo’s government has scaled through a major hurdle in its quest to raise $1 billion (before the end of July) for budget financing. The country’s parliament approved a plan to borrow $750 million from the the African Export-Import Bank (Afreximbank). Business Insider Africa understands that the $750 million facility is the first batch of the $1 billion loan target. The finance committee Chairman at the Parliament of Ghana, Kwaku Kwarteng, explained that lawmakers are still studying the conditions of the second batch of the loan; a $250 facility that is expected to be borrowed from other international lenders. Read more: Business Insider
German business activity unexpectedly shrank in July, a preliminary reading of a purchasing managers survey showed on Friday, as companies were hit by inflation pressures and supply chain disruptions. S&P Global’s flash Purchasing Managers’ Index (PMI) for services fell to 49.2 in July, from June’s final reading of 52.4, while its manufacturing index dropped to 49.2, from 52.0 the previous month. Analysts had forecast both services and manufacturing this month would be above the 50 mark, which signals growth in activity, at 51.2 and 50.6, respectively. Read more: CNBC
Nasdaq futures fell in early trading Friday as investors digested a fresh batch of corporate earnings and disappointing results from Snap, which sent social media shares reeling. Futures tied to the Dow Jones Industrial Average slipped 0.11%, or 36 points. S&P 500 futures fell 0.36% and Nasdaq 100 futures tumbled 0.71%. Shares of the Snapchat parent company plummeted a whopping 26% after posting second-quarter results that fell short of analysts’ expectations and noting that it plans to slow hiring. Read more: CNBC
Capital Markets Report
In 43 trades recorded yesterday, 6,906 shares were transacted resulting in a turnover of K31,723. Share price gains were recorded in Airtel of K0.03, in Copperbelt Energy Corporation of K0.01, and in Zanaco of K0.02. Zambeef of K0.08. A share price loss of K0.02 was recorded in Zanaco. Trading activity was also recorded in Standard Chartered Zambia, Zambia Breweries and Zambia Sugar. The LuSE All Share Index (LASI) closed at 6,888.26 points, 0.16% up from its previous close of 6,877,18 points. The market closed on a capitalization of K70,915,053,454 including Shoprite Holdings and K36,132,368,014 excluding Shoprite Holdings.