Story of the Day:
During the first Quarter of 2020 the World Health Organisation declared COVID-19 as a pandemic, which resulted in widespread precautions to restrict the movement of people to reduce the risk of infection. Izwe Loans Zambia PLC invoked its business continuity plan as part of its broader risk management policy which involved several of its staff working remotely from their homes, as well as the limiting of branch operating hours. Read more
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Zambian inflation accelerated to an 18-year high in May as the cost of meat and fish pushed up food prices. Consumer prices rose 23.2% from a year earlier, compared with 22.7% in April, according to Zambia’s interim statistician-general, Mulenga Musepa. Costs increased 2% in the month. Annual food inflation quickened to 28.5% in May from 27.2% a month earlier. Read more: Bloomberg
Zambia’s central bank increased the amount of foreign exchange that people can buy or sell daily in an effort to draw business away from the parallel market, Governor Christopher Mvunga said. The nation’s kwacha currency has depreciated against the dollar every day for almost four months. Read more: Bloomberg
The Zambia Development Agency (ZDA) has signed an Investment Promotion and Protection Agreement (IPPA) with Zhong Yang Eco-Agriculture Industry Park in Chongwe aimed at enhancing investment cooperation between the two parties. Read more: Lusaka Times
Talk about the adage that local problems need local solutions, a Zambian entreprenuer has raised to the challenge of escalating imported cooking oil prices on the market by locally manufacturing the commodity with locally grown oil seeds. The local oil processor has defied the odds and is manufacturing and retailing a 2.5Ltrs cold pressed cooking oil container for K88. Read more: Zambian Business Times
International Business and Finance
The World Bank President, David Malpass, has asked Ghana to hold down its non-concessional borrowing because of its impact on future generations. According to him, “holding down the non-concessional debt means higher interest rate debt because that burdens the further generations.” Read more: Business Insider
Kenya in the next two weeks will receive a loan of $750 million from World Bank that was approved in 2019, the country’s central bank governor Patrick Njoroge said on Thursday. In May 2019, the World Bank approved the $750 million credit from International Development Association, the World Bank arm that helps the world’s poorest countries, to support the country’s reforms in agriculture, housing, digital technology and fiscal management. Read more: CGTN
Airbus plans to ramp up production, saying it sees a recovery to pre-pandemic levels of demand by 2025. The world’s largest planemaker said it would increase output of its A320neo by more than 10%, from 40 planes a month to 45 by the end of this year. Airbus, which builds its wings in the UK, also set a new target of 64 planes a month by the second quarter of 2023. Read more: BBC News
HSBC is winding down much of its US business to turn its attention to richer clients. The British bank announced Wednesday that it was closing most of its retail banking locations in the country, reducing its current footprint from 148 branches to about 25. Those that will remain will be turned into international wealth management centers. Read more: CNN
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In 26 trades recorded yesterday, 16,221 shares were transacted resulting in a turnover of K20,578.83. Trading activity was recorded in Airtel, BATA, First Quantum Minerals Zambia, Lafarge, Zambia Breweries and Zanaco. The LuSE All Share index (LASI) closed at 4,246.55 points.
Chart of the Day: