Good morning. Here’s what you need to know to start your day.
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Zambia’s inflation hits double digits
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Russia’s trade with Africa increased by 35% In the first half of 2023
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US Economy grew 2.4% in Q2
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AECI Mining was the highest priced security in the third week of July
Story of the Day
Zambia Civil Society Organisation, Debt Alliance in partnership with African Forum and Network on Debt and Development, hosted a National Forum on Debt and Development under the theme: Reimagining, Rethinking, Reorganizing, and Remobilising for an Economically Strengthened Post-Debt Restructuring Zambia. In attendance of this event was the Member of Parliament for Lunte constituency-Hon. Mutotwe Kafwaya, CSO Debt Alliance Coordinator-Mr Peter Mumba, AFRODAD Policy analyst and advocacy-Mr. Shem Joshua, ZIPAR Research Fellow Macroeconomics- Mr. Ignatius Masilokwa, Acting Assistant Director External Debt Ministry of Finance and National Planning- Ms. Maryanna Lwandamina-and other officials. Read more
In Local Business News Sponsored by
Zambia Statistics Agency reveals Annual inflation for July 2023 increased to 10.3 percent from 9.8 percent recorded in June, 2023 mainly attributed to price movements of selected food items. ZAMSTATS Statistician General Mulenga Musepa explained Annual food inflation for July 2023 was recorded at 12.1 percent compared to 11.2 percent in the previous month the outturn that is mainly attributed to price movements in Cereals, Fish, Vegetables, Milk, and Cheese & Eggs. Read more: Money FM
Finance National Planning Minister, Situmbeko Musokotwane, says two managers have been appointed to handle repossessed Development Bank of Zambia (DBZ) and Betternow Finance Company Limited. Musokotwane told parliament on Thursday that these would be responsible for loan recoveries and settlement of liabilities. He also said the managers had been given 90 days to prepare a statement of affairs of assets and liabilities of the two institutions. “The statement of affairs will determine further actions that the Bank of Zambia (BoZ) may take as provided for under the Banking and Financial Services Act. The managers will also engage creditors of the institutions to facilitate resolution of outstanding obligation,” Musokotwane said. Read more: Zambia Monitor
President Hakainde Hichilema says there is a need for Zambia and Qatar to sign agreements in areas where the two countries can work together. Speaking when the Head of the Qatar Investment Authority for Africa, Middle East and Asia Faisal Bin Than Al Thani paid a courtesy call on him at State House , President Hichilema said Zambia wants to learn how it can exploit its minerals for the benefit of the country. The President said Qatar has utilized its oil in a beneficial way which Zambia can learn from. Sheikh Al Thani said his country wants to partner with Zambia in many areas. Read more: ZNBC
The World Bank has adjusted its financing mechanism for Zambia from concessional loans to grants to enable the country to have more resources to pursue development aspirations. World Bank Vice President for Eastern and Southern Africa Victorua Kkakwa says the Bank decided that Zambia will from July 1st 2023 only access grants. Speaking during a meeting with Vice President Mutale Nalumango in Dar Es Salaam Tanzania, Dr. Kwakwa said the Bank wants Zambia to have a platform to invest more in productive areas. Read more: ZNBC
Bank of Zambia Exchange Rates
Currency | Buying | Selling |
---|---|---|
USD | 18.3321 | 18.3821 |
GBP | 23.6136 | 23.6853 |
EUR | 20.2350 | 20.2975 |
ZAR | 1.0425 | 1.0464 |
In International Business News
Russian President Vladimir Putin said the trade turnover between Russia and African countries had increased by almost 35% in the first half of 2023 despite international sanctions and the fallout from the COVID-19 pandemic. Speaking at a trilateral meeting with the Chairperson of the African Union, President of the Union of Comoros Azali Assoumani, and the Chairperson of the African Union Commission Moussa Faki Mahamat, Putin said “despite the difficulties related to the coronavirus pandemic and the imposition of illegal sanctions against Russia, it was possible to ensure the growth in the pace of trade and economic ties” with African countries. Putin added last year, “the volume of mutual trade amounted to about 18 billion dollars.” “In the first half of this year, the trade turnover increased by almost 35%,” Putin noted. Read more: Africa News
US economic growth picked up this spring, despite a slowdown in consumer spending. The world’s largest economy expanded at an annual rate of 2.4% in the three months to June, accelerating from a rate of 2% in the prior quarter. That was far better than expected, lifted by a jump in business investment. Consumer spending increased at an annual rate of 1.6%, slowing after a surge at the start of the year. Analysts have been warning of looming slowdown for months as the US central bank, the Federal Reserve, raises interest rates sharply to try to stabilise prices, which soared last year. But businesses and households have continued to spend, despite the rise in borrowing costs, confounding the expectations of forecasters. That may help the US economy avoid a recession, but some economists also warned it may make it more difficult to root out the inflation pressures fully – potentially leading to even higher interest rates in the months ahead. Read more: BBC News
The European Central Bank (ECB) has raised interest rates in the eurozone once again, taking its key rate to a record high last seen in late 2000. The bank raised the deposit rate in the 20-nation bloc for the ninth time in a row – to 3.75%, up from 3.5%. The ECB said inflation continued to ease, but was still expected to remain “too high for too long”. On Wednesday, the US central bank raised rates to their highest level in 22 years in its bid to control prices. In the UK, where inflation fell to 7.9% in June, the Bank of England’s base rate is at 5%, At its next decision on 3 August, the Bank is widely expected to raise rates to 5.25%. Read more: BBC News
Kenya, Nigeria, and Zimbabwe have become the epicentres of an intense battle for stock market glory in Africa, as revealed by the latest Morgan Stanley Capital International Index (MSCI). The six-month data, ending in June, unveils intriguing trends in dollar-denominated returns for investors across these nations, with each vying for supremacy in the equities market. The MSCI data illustrates the performance of each country’s equities market during the first half of 2023. Kenya, known for its vibrant financial landscape, faced challenges as it posted paper losses of 30.9 per cent, marking the weakest returns among the three contenders. Nigeria, with its robust and diverse economy, reported losses of 24.3 per cent, not far behind Kenya. Meanwhile, Zimbabwe’s market experienced a 20.7 per cent contraction, showcasing its resilience amidst various economic challenges. However, several African nations emerged as outliers, displaying remarkable strength amid the prevailing trends. Read more: Business Insider
Standard Chartered reported on Friday first-half pretax profit rose 20% and announced a new $1 billion share buyback, as rising rates and record financial markets business propelled margins at the emerging markets-focused lender. StanChart, which earns most of its revenue in Asia, said statutory pretax profit for the first six months of this year reached $3.32 billion. That compared with $2.77 billion a year earlier and the $3.18 billion average of 16 analyst estimates compiled by the bank. Read more: CNBC
In the third week of July 2023, there were twelve companies that recorded trades of which AECI Mining was the highest priced security. In comparison to week three of July 2022, we see that there were seventeen companies that recorded trades with Shoprite Holdings as the highest priced security. During the week Tuesday’s equity trading was the best performing day of the week. Read more
In 202 trades recorded yesterday 45,008 shares were transacted resulting in a turnover of K201,431.69. A share price gain of K5.99 was recorded in Airtel. Trading activity was also recorded in Bata, CEC Zambia, Chilanga Cement, Standard Chartered Bank Limited, Zambia Breweries, ZCCM, Zambeef and Zanaco as well as CEC Africa on the quoted tier. The LuSE All Share Index (LASI) closed at 8,367.33 points, 1.74% higher than its previous close at 8,224.21 points. The market closed on a capitalization of K77,353,138,254.34 including Shoprite Holdings and K42,570,452,814.34 excluding Shoprite Holdings.