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Zambia named Best African Leisure Destination at the 2024 Global Traveller Awards
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Zambia Economic Growth to Rebound in 2025, Finance Ministry Says
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Ghana signs MoU to restructure $5.4 billion debt
In Local Business and Finance News
In an exciting win for Zambia, the country has clinched the title of Best Leisure Destination in Africa at the 2024 Global Traveller Awards. Laurie Burr, complex general manager at The Royal Livingstone Hotel by Anantara, attributed the win to the dedication and exceptional hospitality of Zambia’s tourism sector. Burr said: “Being recognised as Africa’s top leisure destination is a significant achievement for Zambia. This accolade not only highlights our country’s breathtaking natural beauty and vibrant culture but also underscores the hard work and commitment of everyone in the Zambian hospitality industry.” She continued: “This honour will undoubtedly boost tourism, providing a substantial contribution to our economy and fostering sustainable growth for our communities. Read more: MSN
Zambian economic growth is expected to recover next year from the effects of the worst drought in at least four decades, Secretary to the Treasury Felix Nkulukusa said. Gross domestic product is expected to expand by about 6% in 2025 and by a similar amount the following year, Nkulukusa told reporters in a virtual briefing on Saturday from Lusaka, the capital. The economy is expected to grow 2.3% this year. Output in the southern African nation is being curbed by an El Niño-induced drought that’s slashed production of the staple food corn. The government has received commitments totaling about $500 million from its partners to deal with the effects of the dry weather, Nkulukusa said. The secretary also reiterated that the government is confident that eurobondholders will approve a proposed restructuring of the nation’s debt, ahead of a meeting with creditors next month. Read more: Bloomberg
Zambia Sugar has assured the government that it would not lay off any of its 7,200 workers despite ZESCO’s plan to reduce power supply to the agro firm. Company Managing Director, Oswald Magwenzi, stated that they had opted to import power to maintain productivity and retain all its employees. Speaking at Nakambala House in Mazabuka District during a courtesy visit from Technology and Science Minister, Felix Mutati, on Friday, Magwenzi said no employees would lose their jobs during this period. Magwenzi acknowledged the high cost of importing power but expressed understanding of the current drought affecting the country in a statement issued in Lusaka on Saturday. Read more: Zambia Monitor
Minister of Technology and Science has disclosed that Zambia has attracted investments in excess of US$54 million in the Information and Communication Technology (ICT) sector. Speaking when a COMESA delegation paid a courtesy call on him, Felix Mutati said the investment has come in following government’s decision to waive taxes on importation of ICT equipment. Mr. Mutati stated that government waived the taxes in order to open up the ICT sector and promote private sector involvement. He noted that this decision has seen an increase in digital Infrastructure in the country. “Starlink, which came in last year with 100 kits, has now increased to 11 thousand kits which has taken digital connectivity to a higher level.” “By next month, Zambia will be connected by optic fiber to all of its eight neighboring countries. Zambia has completed connecting itself to Angola by optic fiber and the next target is Mozambique,” Mr. Mutati revealed. Read more: Money FM
On Thursday, May 23, 2024, President Hakainde Hichilema convened the 9th Cabinet Meeting of the year at State House to discuss crucial economic policy matters aimed at enhancing national development as outlined in the Government’s Economic Agenda. 1. Drought Response Plan Update: President Hichilema declared the drought a National Disaster on February 29, 2024, followed by a Humanitarian Appeal on April 16, 2024. The Food Security Drought Response Plan for April 2024 – May 2025 was approved, targeting 84 drought-affected districts for immediate food assistance. The Disaster Management and Mitigation Unit reported that 84.5% of the identified districts have received maize under the relief programme. Read more: Lusaka Times
In International News
Ghana has signed a memorandum of understanding (MoU) with its bilateral creditors, including China and France, to restructure $5.4 billion of debt. This agreement is a crucial step towards securing $360 million from the International Monetary Fund (IMF) under Ghana’s $3 billion bailout program, expected next month. The MoU provides a framework for restructuring loans from official creditors, following an agreement by the Paris Club in January. Ghana defaulted on most of its $30 billion external debt during the pandemic. Since then, inflation has dropped from 54.1% in December 2022 to 25% in April 2024, with GDP growth reaching 2.9% in 2023. The IMF has declared Ghana’s debt unsustainable, aiming to reduce the public debt-to-GDP ratio from 88.1% in 2022 to 55% by 2028. Terms with official creditors are crucial for bondholders, who seek equitable treatment under the G20 Common Framework for debt restructuring. Read more: Africa News
According to recent research, Nigeria’s Gross Domestic Product increased modestly in the first quarter of 2024. However, this is lower than the previous quarter’s figures. The Services sector was the primary driver of the GDP’s performance in the first quarter of 2024, while the agricultural sector also recorded a slight increase. A report by the country’s National Bureau of Statistics showed that Nigeria’s Gross Domestic Product (GDP) grew by 2.98% (year-on-year) in real terms in the first quarter of 2024. The report however showed that this was lower than the 3.46% recorded in Q4 of 2023, but slightly higher than the figures recorded a year prior during the same period. Q1 figure of 2023 came in at e 2.31%. Of the activities that contributed to the recent figure of the real GDP crop production came in first, with trade following close behind and telecommunications coming in third. However, the service sector combined contributed the most to the GDP growth. Read more: Business Insider
Zimbabwe has officially granted an operating license to Starlink, the satellite internet service provider owned by Elon Musk’s SpaceX, to operate in the country. President Emmerson Mnangagwa announced this development on Saturday. Last month, Starlink’s operation was suspended until it obtained licensing approval from the country’s telecommunications regulator. To operate in the southern African country, the regulator proposed two options: the company can either apply directly for a license or collaborate with a registered public network within the country to offer its services. In his statement, Mnangagwa said that the licensing of Starlink reflects his administration’s dedication to creating an environment that encourages investment in technology. Read more: Business Insider
Iran has approved a plan to raise its oil output to four million barrels per day, the country’s Tasnim news agency said on Sunday, without providing a time frame. “An economic council headed by Iran’s interim president Mohammad Mokhber has approved a plan to raise the country’s oil output from 3.6 million barrels per day to 4 million barrels per day,” Tasnim added. Iran is a major producer within the Organization of the Petroleum Exporting Countries (OPEC). Read more: CNBC
Finally, Capital Markets News
In 123 trades recorded on Friday, 399,240 shares were transacted resulting in a turnover of K10,278,963.32. The following share price changes were recorded on Friday: +K0.70 in Bata, +K 0.03 in CEC Zambia, +K0.13 in Standard Chartered Bank Limited , +K0.01 in Zambeef and -K0.01 in ZANACO. Trading activity was recorded in AECI, Airtel, Chilanga Cement, Real Estate Investments Zambia, Zambia Sugar and ZAFFICO. The LuSE All Share Index (LASI) closed at 13,074.22 points, 1.18% higher than it’s previous day close at 12,922.12 points. The market closed on a capitalization of K101,192,119,848.06 including Shoprite Holdings and K66,409,434,408.06 excluding Shoprite Holdings.
2 Govt Bond trades with a total face value of 18,300,000 and turnover 12,080,250 were processed on Friday.