Good afternoon. Here’s what you need to know
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GreenCo secures $55.5 million to finance power imports, address Zambia’s energy crisis
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ZANACO reaffirms commitment to green transition with $50 million climate financing
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WTO chief Okonjo-Iweala reinstated for second term as trade wars loom
In Local Business and Finance News
Africa GreenCo Group has reportedly signed a US$55.5 million facilities agreement with Stanbic Bank Zambia and the Standard Bank of South Africa Limited to finance power imports and address Zambia’s ongoing energy crisis. The agreement was finalised through GreenCo’s Zambian subsidiary, GreenCo Finance Solutions Limited, according to a statement issued in Lusaka on Thursday. GreenCo FinanceCo will use the funding to prepay for over 130MW of electricity imports, easing the financial burden on its clients by covering prepayment requirements for power procurement. Johannes Baake, Chief Financial Officer at GreenCo, said the facilities would bridge the gap between the prepayment demands of suppliers and the post-payment practices of power consumers. “The requirement to prepay for electricity has been a significant financial constraint on offtakers in Zambia. This collaboration, supported by Zambia’s national utility, ZESCO, is crucial during a prolonged electricity crisis caused by drought-induced reductions in hydropower generation,” Baake stated. He added that prepaying for electricity on behalf of clients will help address Zambia’s immediate energy challenges, allowing GreenCo to import more power and ensure uninterrupted operations for industries, while freeing up electricity for households and small businesses. Read more: Zambia Monitor
ZANACO has reiterated its commitment to Zambia’s green transition by spearheading sustainable financing initiatives, including a US$50 million credit line from the British Investment Bank dedicated to climate-related projects. Speaking at COP29 in Baku, Azerbaijan, ZANACO Executive Head of Client Solutions, Chanda Chime-Katongo, emphasized the bank’s focus on supporting Zambia’s shift to cleaner, more sustainable energy sources that are resilient to climate change. “The $50 million credit line secured in 2022 is being directed toward smart agriculture and solar initiatives, positively contributing to Zambia’s environment and economy,” she said during a panel discussion titled “Unlocking Climate Finance for Local Communities: Bridging the Gap to Drive Resilience and Sustainable Development.” Katongo highlighted ZANACO’s integration of sustainability across its operations, including credit and investment decisions. Read more: Zambia Monitor
Hon. Felix Mutati, Minister of Technology and Science, held a productive courtesy meeting with a delegation from EY led by their Country Managing Partner. During the discussion, the Minister outlined the Government’s continued commitment to transforming Zambia into a digital economy to enhance efficiency and transparency. Hon. Mutati presented the five building blocks underpinning this transformation: Connectivity, Interoperability, Reliable Data, Trust and Confidence, Partnership and Collaboration. The Minister further emphasized the progress made in creating a conducive environment for the digital economy, citing key initiatives such as the development of the ICT Policy of 2023, the review of the Cyber Security and Cyber Crimes Act of 2021 and the Data Protection Act of 2021, as well as the drafting of the Startup Bill. EY’s Country Managing Partner reaffirmed their commitment to supporting the Government’s digital transformation agenda. He shared that EY would submit a detailed proposal to the Ministry, outlining their recommendations for advancing this agenda, with a specific focus on INRIS and the adoption of cutting-edge technologies like AI and Blockchain. Read more: TechAfrica News
Technology and Science Minister Felix Mutati has commended Fibrecom for the exhibited resilience to continue growing and sustaining the availability of its services, providing consistent transmission and reliable high – speed broadband communication services to the end users across the country and beyond borders. Speaking during the telecom company’s networking engagement in Lusaka, Mr Mutati noted that the entity’s robust optic fibre infrastructure delivered quality and enabling digital traffic, in the education and other sectors. Meanwhile, Fibrecom chief executive officer, Eng. Nga’nalelwa Sitwala, said over the years the telecom company has made remarkable strides in digital transformation, hence committed to employ Artificial Intelligence (AI) high – tech in order to enhance the Fibrecom infrastructure beyond borders. He believed the networking and existing partnerships were aimed at defining solutions to bridge the digital divide, and realise a more connected Zambia and Africa at large. And Fibrecom director of enterprise and engineering, Simon Muwowo, said the company’s services and infrastructure are dotted in all the 10 provinces of the country, covering a total distance of 15,000 Kilometers, stretched optic fibre. Read more: Tech Africa News
In International News
Wage inequality has declined in two-thirds of countries since the start of the 21st century, according the International Labour Organization’s (ILO) latest report published on Thursday. The report showed that wage inequality has decreased globally at an annual rate of 0.5 to 1.7 per cent since 2000. Low-income countries experienced the sharpest reductions — between 3.2 and 9.6 per cent annually. But they are also the nations where wage inequality is the highest, with close to 22 per cent of salaried workers classified as low paid. “If the trend that we are observing in this report are confirmed, that means it will be a unique situation since the 21st century began,” said ILO Director-General Gilbert Houngbo. Despite the progress, the ILO says wage inequality remains a pressing issue across all countries and regions. “It is important for us to keep in mind that we still have too many workers, millions of workers that are really still at the low end, with low wages and low paid,” he said. Read more: Africa News
World Trade Organization chief Ngozi Okonjo-Iweala was reappointed for a second term at a special meeting on Friday, the trade watchdog said, meaning her tenure will coincide with U.S. President-elect Donald Trump’s second administration. Analysts expect the road ahead for the three-decade-old WTO will be challenging, likely characterised by trade wars with Trump, who returns to the White House on Jan. 20, threatening hefty tariffs on goods from Mexico, Canada and China. Okonjo-Iweala, a former Nigerian finance minister who made history in 2021 by becoming the WTO’s first female and first African director-general, announced in September that she would run again, aiming to complete “unfinished business”. No other candidates ran against her and all of the WTO’s 166 members agreed by consensus to a proposal to reappoint her. “We have a full agenda to deliver…and we fully intend to get to work immediately, no stopping, to try and deliver on these results,” Okonjo-Iweala told journalists, citing WTO reforms and fishing negotiations as among her priorities. Read more: Reuters
India’s economy expanded by just 5.4% in its second fiscal quarter ending September, well below estimates by economists and close to a two-year low. The print follows 6.7% growth over the previous quarter and is the lowest reading since the last quarter of 2022. Economists polled by Reuters had forecast growth of 6.5% for the period, while the Reserve Bank of India expected an expansion of 7%. The country’s statistics agency noted sluggish growth in manufacturing and the mining sector. The yield on the country’s 10-year sovereign bond quickly sank to 6.74% after the release, from around 6.8%. The weak GDP reading could potentially affect the country’s interest rate trajectory, with the RBI’s Monetary Policy Committee scheduled to meet between Dec. 6-8. Markets watchers had been expecting an eleventh consecutive pause by the RBI, with the repo rate currently at 6.5%. Read more: CNBC
The Bank of England warned on Friday that higher trade barriers could hit global growth and feed uncertainty about inflation, potentially causing volatility in financial markets and pushing up borrowing costs for businesses and consumers. Without specifically referring to the victory of Donald Trump in the U.S. presidential election, the BoE said the financial system could also be impacted by disruption to cross-border capital flows and a reduced ability to diversify risk. “A reduction in the degree of international policy cooperation could hinder progress by authorities in improving the resilience of the financial system and its ability to absorb future shocks,” the BoE said in a half-yearly report on the financial system. Asked at a press conference about the likely impact of a second Trump presidency, Bailey repeated his stance that he wanted to see the policies the Trump administration will pursue. “We are seeing increased risk of global fragmentation. But I would say this, that there are quite a lot of causes of that and I don’t think it’s right to pin it on one particular event.” While U.K. households, businesses and banks appeared to be in good shape, the BoE report said, Britain’s financial sector faced risks that were “particularly relevant” given the openness of the U.K. economy. Other threats included high levels of public debt in many economies around the world. Read more: CNBC
European stocks were slightly lower on Friday, erasing modest gains as investors assessed the latest euro zone inflation data. The pan-European Stoxx 600 index was down 0.2% at 1:55 p.m. London time, with most sectors in negative territory. Food and beverage stocks led the losses, down 0.7%, while mining stocks rose 0.5%. France’s CAC 40 index was little changed from the previous session amid ongoing political turmoil. It comes shortly after the country’s risk premium drew level with Greece’s for the first time. Euro zone inflation rose from 2% in October to 2.3% in November, flash data from statistics agency Eurostat showed on Friday, above the European Central Bank’s 2% target. Read more: CNBC
Finally, Capital Markets News
In 93 trades recorded yesterday 533,504 shares were transacted resulting in a turnover of K5,307,872.45. A +K0.01 price change was recorded in ZANACO yesterday. Trading activity was also recorded in Airtel, Bata, CEC Zambia, Chilanga Cement, FARM, PUMA, Standard Chartered Bank Limited, Zambia Breweries, Zambeef, Zambia Sugar as well as CEC Africa and Pamodzi on the quoted tier.
The LuSE All Share Index (LASI) closed at 15,840.91 points 0.02% higher than the previous trading day close. The market closed on a capitalization of K205,878,874,566.37 including Shoprite Holdings and K80,878,598,766.37 excluding Shoprite Holdings.
A total of 8 Govt Bond trades with a total quantity of K86,805,000 and turnover K63,257,240 were processed yesterday.
