Good afternoon. Here’s what you need to know
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Hichilema launches K1 billion loan facility for small, medium enterprises in Zambia
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Wonderful Group invests in thermal power and fertilizer production
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Euro falls to two-year low after soft PMI data
In Local Business and Finance News
The Citizens Economic Empowerment Commission and ABSA Bank have partnered to offer Small Medium Enterprises (SMEs) access to a loan facility of about K1 billion. The Partnership between CEEC and ABSA aims at broadening access to finance by Zambian SMEs who currently lack the facility. President Hakainde Hichilema launched the Public-Private collaboration for broadening access to finance at Mulungushi International Conference Centre in Lusaka on Thursday. He acknowledged the role of all entrepreneurs including micro, small, medium, large and big business in growing the country’s economy. Hichilema called for support to small businesses and irrigation farming, aiming to create jobs and enhance financial accessibility, with a target of growing the empowerment fund to K5 billion. “Government introduced the Public-Private Partnership (PPP) policy to enhance infrastructure development and broaden access to finance in Zambia,” President Hichilema stated. The President explained that the initiative aims to alleviate pressure on the national treasury by leveraging private sector investment for public projects, particularly in infrastructure and social services. Read more: Zambia Monitor
Zambia and the Democratic Republic of Congo (DRC) have entered into an agreement to construct a 145-kilometer road linking Kolwezi in the DRC to Lumwana in Zambia, passing through the Kambimba-Sakabinda border posts. The agreement also focuses on enhancing the border infrastructure and connectivity between the two countries, including the establishment of a one-stop border post. The agreement was signed on Wednesday in Kolwezi, Lualaba Province, by Zambia’s Minister of Infrastructure, Housing, and Urban Development, Charles Milupi, and Congolese Minister of Infrastructure and Public Works, Alexis Muvunyi. In his remarks before the signing ceremony, Milupi highlighted the significance of improving road network connectivity and upgrading border infrastructure to strengthen economic and trade relations between Zambia and the DRC. In a statement issued in Lusaka on Thursday, he stressed that the Kolwezi-Sakabinda-Kambimba road would play a crucial role in transporting minerals from both countries. Read morw: Zambia Monitor
President Hakainde Hichilema has expressed satisfaction with the progress made by PowerChina International in supporting Zambia’s water resource management and improving the country’s energy sector. During a meeting at State House with a delegation led by PowerChina International Chairman Chen Guanfu, President Hichilema emphasized the importance of developing a long-term master plan to streamline resource allocation and prioritize key initiatives. He noted that such a plan would ensure effective implementation of projects in energy, water management, and agriculture. The President also commended the ongoing collaboration between the government and PowerChina, underscoring the benefits of joint efforts to tackle challenges in critical sectors. Minister of Agriculture Mtolo Phiri revealed that PowerChina has expressed interest in entering into a Public-Private Partnership (PPP) with Zambia to boost productivity in agriculture. Among the proposed initiatives is the development of a modern agricultural industrial park. The government has suggested demonstration sites, including the Zambia National Service Mumba farm and Lusankaba farm in Mkushi District, for the project. Chairman Chen Guanfu expressed optimism about enhanced cooperation between the two nations, particularly in addressing drought and ensuring stable electricity supply. He outlined plans for the next phase of PowerChina’s engagement in Zambia, which he believes will further strengthen ties and deliver tangible results. Read more: Lusaka Times
President Hakainde Hichilema says the Government will continue to support businesses to supplement efforts in creating jobs and wealth for the people. President Hichilema has also urged the business community to rally behind the Government, noting that most of its initiatives are designed to benefit them. Speaking when a team from Wonderful Group paid a courtesy call on him at State House, President Hichilema said Zambia had become an -unattractive destination for investment due to the debt crisis. Wonderful Group Chief Operations Officer Frank Mulenga said the company is developing thermal power plants to support its manufacturing operations across various subsidiaries. Mr. Mulenga also revealed that the construction of the 600 million U.S dollars Urea plant has reached 60 percent completion. He said the plant, which will make Zambia self-reliant in fertilizer production, is set for completion next year. Read more: ZNBC
In International News
The world’s longest heated oil pipeline is “still viable” and will be operational in the next three years despite financing delays blamed on activists’ protests, according to a Ugandan minister who defended the country’s development of fossil fuels. “The east African crude oil pipeline is ongoing,” Uganda’s energy minister Ruth Nankabirwa told the Financial Times at the COP29 climate summit in Baku, Azerbaijan. “We have invested a lot of money in exploring exploration [and] in critical infrastructure. We are now drilling.” Uganda is set to become an energy producer by 2027, allowing the landlocked nation to export oil from two oilfields via a $4bn, 1,443km-long pipeline that would run through Tanzania to the port of Tanga. The developments will transform east Africa’s energy market but have been criticised for displacing communities and damaging the environment. TotalEnergies alongside China’s Cnooc is leading the project alongside the Ugandan and Tanzanian national oil companies to develop the Kingfisher and Tilenga fields close to Lake Albert. Drilling has begun at both sites and the pipeline’s construction is already under way. Read more: Financial Times
Kenya’s president said Thursday he has cancelled multimillion-dollar airport expansion and energy deals with Indian tycoon Gautam Adani after U.S. bribery and fraud indictments against one of Asia’s richest men. President William Ruto in a state of the nation address said the decision was made “based on new information provided by our investigative agencies and partner nations.” He didn’t specify the United States. The Adani group had been in the process of signing an agreement that would modernize Kenya’s main airport in the capital, Nairobi, with an additional runway and terminal constructed, in exchange for the group running the airport for 30 years. The widely criticized deal had sparked anti-Adani protests in Kenya and a strike by airport workers, who said it would lead to degraded working conditions and job losses in some cases. The Adani group had also been awarded a deal to construct power transmission lines in Kenya, East Africa’s business hub. Read more: Africa News
United States Securities and Exchange Commission Chair Gary Gensler will step down on January 20 when US President-elect Donald Trump’s administration takes over, the agency has said, ending an ambitious tenure that saw Gensler clash with Wall Street and the crypto industry. “I thank President Biden for entrusting me with this incredible responsibility. The SEC has met our mission and enforced the law without fear or favor,” Gensler, who was nominated by Democratic President Joe Biden in 2021, said in a statement on Thursday. Trump revealed plans to sack Mr Gensler on “day one” of his new administration after the chairman took legal action against crypto firms, sparking controversy in some quarters. Known for his hard-charging style, Gensler led an ambitious agenda to boost transparency, reduce systemic risks, and stamp out conflicts of interest on Wall Street, implementing dozens of new rules, some of which have been challenged in court. Among his major accomplishments were changes to boost the resilience and efficiency of US markets, including speeding up trade settlements and overhauling the $28 trillion US Treasuries market, as well as a number of rules boosting investor disclosures and corporate governance. Read more: Al Jazeera
The International Monetary Fund will assess U.S. President-elect Donald Trump’s tariff and tax-cut policies as details emerge, but it’s “too early to speculate” on their potential impacts, IMF spokesperson Julie Kozack said on Thursday. Kozack told the first regular press briefing since Trump’s Nov. 5 election victory that it was still “early days” for his economic plans to take shape. Trump takes office on Jan. 20. The Republican president-elect has vowed to impose tariffs of 60% on Chinese imports into the U.S. and duties of 10%-20% on goods from elsewhere. Trump also wants to extend expiring 2017 tax cuts and enact new tax breaks, which budget forecasters say could add new debt of $7.5 trillion over 10 years. “The exact impact of any of these policies is very much going to depend on the details and that’s why we will wait to see the details before we make our assessment,” Kozack said. Read more: Reuters
European stocks were higher on Friday, as investors reviewed a range of key regional data points. The pan-European Stoxx 600 index was trading 0.7% higher at around 2 p.m. London time, with almost all sectors in positive territory. Health care and retail stocks led the gains, up over 2%, while Europe’s banking index slipped 2%. The euro slid against the dollar after PMI data showed that euro zone business activity fell sharply in November. The euro was last seen trading at $1.0409, down 0.6% for the session, after briefly hitting its lowest level since December 2022. S&P Global’s HCOB flash composite Purchasing Managers’ Index for the euro zone came in at 48.1 in November, down from 50.0 in October and below expectations. Separate data published Friday showed the German economy eked out 0.1% growth in the third quarter on the previous three months — lower than a preliminary reading of 0.2% for the period. In the U.K., the pound fell to a six-month low against the U.S. dollar following U.K. retail sales data. The country’s Office for National Statistics said that retail sales volumes lost 0.7% month-on-month in October, well below economists’ expectations of a 0.3% decline. Read more: CNBC
Finally, Capital Markets News
In 117 trades recorded yesterday, 52,668 shares were transacted resulting in a turnover of K285,830.52. The following price changes were recorded today: +K0.01 in Airtel, -K0.03 in CEC Zambia, -K0.01 in Chilanga Cement, -K0.09 in Zambia Breweries, -K0.01 in ZANACO, and -K0.04 in Zambia Sugar. Trading activity was also recorded in AECI, FARM, Madison Financial Services, PUMA, Standard Chartered Bank Limited, Zambeef, Zambia Reinsurance as well as CEC Africa on the quoted tier.
The LuSE All Share Index (LASI) closed at 15,828.27 points 0.13% lower than the previous trading day close. The market closed on a capitalization of K205,822,678,589.76 including Shoprite Holdings and K80,822,402,789.76 excluding Shoprite Holdings.
A total of 6 Govt Bond trades with a total quantity of K51,487,000 and turnover K53,720,710 were processed yesterday.
