Good morning. Here’s what you need to know
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Zambia’s June inflation surges to 15.2%, records trade Surplus of K3.0 billion
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President Hichilema Confers With His Mozambican Counterpart
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IMF says US needs to tackle debt despite robust growth
In Local Business and Finance News
Annual rate of inflation for the month of June 2024 has surged to 15.2 percent from 14.7 percent recorded in May, 2024 due to price movements in of both food and non-food items. Speaking to Journalists during the monthly disemination bulletin, Zambia Statistcs Agency (ZamStats) Statistician General, Goodson Sinyenga said this means that on average, prices of goods and services rose by 15.2 percent between June 2023 and June 2024. Mr. Sinyenga also revealed that annual food inflation rose to 16.8 percent from 16.2 percent in May, 2024 owing to movements in prices of bread, rice, mealie meal, fresh and dry fish, Kapenta, and fruits among others. He added that non-food inflation increased to13 percent from 12.7 percent in May 2024, due to the rise in prices of spirits, pharmaceutical products, and other services such as paraffin purchases, diesel, charcoal, and car insurance. Meanwhile, Mr. Sinyenga revealed that Zambia recorded a trade Surplus of K3.0 billion in May 2024 compared to a Surplus of K2.4 billion in April 2024. He said exports mainly comprising domestically produced goods, increased by 19.9 percent to K27.1 billion in May 2024 from K22.6 billion in April 2024. Read more: Money FM
President Hakainde Hichilema, has commended his Mozambican counterpart Filipe Jacinto Nyusi for allowing the SADC troops to undertake a peace, security and stability mission in Cabo Delgado. President Hichilema said through maintenance of peace in Mozambique, results in peace, security and stability for the entire SADC region. The Head of State noted that President Nyusi allowed the aspect of peace and stability to take centre stage, part of the responsibility that Zambia carries as Chair of the SADC Troika on Politics, Defence and Security. President Hichilema was speaking at Statehouse today, during bilateral talks with his Mozambican counterpart President Nyusi to discuss social and economic collaboration that foster development in the two countries. The Head of State highlighted the progress made on the joint Chanida One Stop border where the two governments want the border to operate 24 hours to facilitate enhanced trade. “Today we are going to discuss issues around supporting our economies, investment and trade,” President Hichilema said. Read more: Lusaka Times
Zambia is aiming for nearly nationwide phone and internet access by 2025 with the construction of 520 communication towers. A joint effort between the government (340 towers) and private sector (180 towers) will bring the total number of towers to 900. This will improve access to online services like government programs (FISP, Social Cash Transfer) especially in rural areas. Upgrading existing 2G towers to 4G will further enhance internet connectivity. Minister of Technology and Science Felix Mutati highlighted the project’s benefits, including easier market access for farmers and ICT education for students. Lawmakers are involved in identifying priority areas for connection. The initiative is expected to bridge the digital divide in Zambia, with positive impacts on various sectors like agriculture, education, and social services. Read more: Tech Africa News
The government has reportedly commissioned a new Zambia Airways flight between Lusaka and Dar-es-Salaam, aimed at promoting business, trade and tourism between Zambia and Tanzania. Acting Minister of Transport and Logistics, Garry Nkombo, officiated the launch at Julius Kambarage Nyerere International Airport in Dar-es-Salaam, Tanzania. The minister claimed during the commissioning ceremony on Thursday that the new route marked a significant milestone in the nation’s aviation history. “The new route will spur dreams, aspirations and hard work of countless individuals who have dedicated themselves to the aviation industry,” Nkombo stated. Read more: Zambia Monitor
The World Bank has commended Zambia for elevating its green agenda to promote sustainable economic growth and development amidst the impacts of climate change. Achim Fock, the World Bank Country Manager for Zambia, Eastern and Southern Africa Region, praised Zambia’s efforts during a courtesy call on Green Economy and Environment Minister, Mike Mposha, in Lusaka on Thursday. Fock said the Bank was committed to supporting Zambia’s priority areas under President Hakainde Hichilema’s leadership. “The programmes are meant to further the climate change and environmental sustainability agenda through ongoing projects and analytical work,” Fock stated. Minister Mposha acknowledged the formidable challenges posed by climate change but emphasized that they could be overcome through strong partnerships. He noted that the Bank’s support had been crucial in project implementation, significantly contributing to addressing climate change effects. Read more: Zambia Monitor
In International News
The International Monetary Fund on Thursday called on the U.S. to raise taxes to curb rising debt levels while applauding “robust, dynamic” growth in the world’s largest economy and progress toward bringing inflation under control. The IMF said in a closing statement for its “Article IV” review of U.S. economic policies that high deficits and debt “create a growing risk to the U.S. and global economy, potentially feeding into higher fiscal financing costs and a growing risk to the smooth rollover of maturing obligations.” The IMF’s statement slightly revised down its 2024 U.S. GDP growth forecast to 2.6% from the 2.7% forecast in the global lender’s World Economic Outlook in April. The IMF forecasts U.S. growth in 2025 to dip to 1.9% — unchanged from the April outlook — and remaining above 2% through the end of the decade. “The U.S. economy has proven itself to be robust, dynamic and adaptable to changing global conditions,” the IMF said. “Activity and employment continue to expectations… and the disinflation process has been considerably less costly than many had feared.” Read more: Reuters
Chinese President Xi Jinping called on Friday for the building of “bridges” in the global economy, as Beijing grapples with economic, trade and territorial disputes with neighbours and trading partners. The world’s second-largest economy will never leave the road of peaceful development, Xi told a conference to commemorate China’s guiding principles for foreign affairs, first formulated 70 years ago. It will also not become a “strong” state seeking to dominate others, Xi told an audience that included Myanmar’s former president, Thein Sein, and Nong Duc Manh, the former general secretary of the Vietnamese Communist Party. “Facing the history of peace or war, prosperity or unity or confrontation, more than ever before, we need to carry forward the spirit and connotation of the Five Principles of Peaceful Coexistence,” Xi said. Read more: Read more: Reuters
For the first time in 15 years, South Africa has achieved a primary budget surplus by adopting a strict approach to funding state-owned companies that have historically strained government finances. Africa’s most industrialized economy recorded a primary surplus—where revenue exceeds non-interest expenditure—of 31.6 billion rand ($1.7 billion) or 0.4% of gross domestic product for the year ending in March 2024, Bloomberg reported. This result aligns with the National Treasury’s forecast from February. “The decline in non‐interest expenditure was driven by lower voted expenditure, largely owing to the sharp decline in payments for financial assets, reflecting government’s limited recapitalization of state-owned companies,” According to data released in the South African Reserve Bank’s Quarterly Bulletin, Finance Minister Enoch Godongwana maintained a strict policy on funding debt-ridden state companies such as Transnet SOC Ltd., the ports and railways operator., providing relief only if they meet strict conditions including implementing recovery plans and selling non-core assets. In the February budget, Godongwana offered no new bailouts to state firms. Read more: Business Insider
European Union leaders agreed to nominate Ursula von der Leyen of Germany for a second five-year term as president of the European Commission, the EU’s powerful executive body. At a summit in Brussels, the bloc’s 27 national leaders also picked former Portuguese premier Antonio Costa as the future chair of their European Council meetings and selected Estonian Prime Minister Kaja Kallas as the next EU foreign policy chief. “Mission accomplished! The European Council has delivered,” the body’s current chair, Charles Michel, told reporters early on Friday morning. The leadership package represents continuity at the top of the bloc of some 450 million people, with centrist pro-EU factions keeping hold of top posts despite a far-right surge in elections to the European Parliament earlier this month. Read more: CNBC
The Japanese yen weakened to fresh 38-year lows on Friday, crossing the 161 mark against the dollar for the first time since 1986 and reaching a high of 161.27, according to LSEG data. The last time the currency was at this level was in December 1986. The currency has struggled and again weakened past the 160 level on Thursday. The yen has been steadily deprecating since the Bank of Japan ended its negative interest rate policy and scrapped its yield curve control policy in March. Following the move, the currency crossed the 150 mark against the dollar, reaching 160 in late April before the country’s finance ministry intervened. Read more: CNBC
Finally, Capital Markets News
In 231 trades recorded yesterday, 71,984 shares were transacted resulting in a turnover of K1,5030,201.81. Price changes recorded yesterday: +K0.02 in PUMA and -K0.06 in Chilanga Cement. Trading activity was recorded in Airtel, CEC Zambia, National Breweries, Real Estate Investment Zambia, Standard Chartered Bank Limited, Zambia Breweries, Zambeef, ZANACO, FARM and CEC Africa on the quoted tier. The LuSE All Share Index (LASI) closed at 13,871.62 points, 0.00% lower than its previous day close at 13,872.06 points. The market closed on a capitalization of K113,464,818,149.59 including Shoprite Holdings and K69,986,461,349.59 excluding Shoprite Holdings.
1 Govt Bond trade with a face value of K1,600,000 and turnover K1,258,880 was processed yesterday.