Good morning. Here’s what you need to know to start your day.
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Zambia’s economy grew 5.6% in Q4
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Sovereign Defaults Are at Record High – Fitch Ratings
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ZANACO posts 11% revenue growth, declares K421 million in dividends for 2020
Story of the Day
Liquid Intelligent Technologies announced that it has acquired Cysiv MEA, a technology company that was formerly SecureMisr, headquartered in Cairo. The business specialises in providing enterprise cloud and cyber security services to some of Egypt’s leading companies, particularly in the financial services sector. The acquisition allows the London-based group with operations in Africa, UK, the US and Latin America, to bring some of the best global cloud and cyber security products to the Egyptian market. Liquid is a recognised integrator on behalf of some of the biggest technology companies in the world. Read more
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Minister of Finance Dr. Situmbeko Musokotwane has told Parliament that Zambia’s external debt as at 31st January 2023 stood at USD13.96 billion, representing a 7.04 percent increase from USD13.04 billion posted in December 2021 In a Ministerial statement on the performance of the economy as at 31st January, 2023, Dr. Musokotwane said the increase in External Debt stock can be attributed to continued disbursements on existing project loans, mostly from multilateral institutions and bilateral creditors to finance on-going priority projects. Read more: Lusaka Times
Chief Government Spokesperson Chushi Kasanda says Cabinet has approved the appointment of nine boards. In a statement, Wednesday, Kasanda said the boards included National Road Fund Agency Board, Tobacco Board of Zambia, Cotton Board of Zambia, Coffee Board of Zambia, Agricultural Institute of Zambia, Zambia Metrology Agency Board, Zambia Compulsory Standards Agency (ZCSA) Board, Business Regulatory Review Agency Board and Zambia Education Publishing House (ZEPH). Kasanda said this decision was arrived at during the sixth Cabinet meeting for 2023. Read more: News Diggers
Bank of Zambia Exchange Rates
Currency | Buying | Selling |
---|---|---|
USD | 21.3763 | 21.4231 |
GBP | 26.4639 | 26.5303 |
EUR | 23.3472 | 23.4069 |
ZAR | 1.2012 | 1.2049 |
In International Business News
There have been 14 separate default events since 2020, across nine different sovereigns, a marked increase compared with 19 defaults across 13 different countries between 2000 and 2019, says Fitch Ratings in a new report. A record five Fitch-rated sovereigns are in default: Belarus, Lebanon, Ghana, Sri Lanka and Zambia Moreover, Fitch rates eight sovereigns at ‘CCC+’ or below, and a further nine at ‘B-’. The average cumulative five-year default rate between 1995 and 2021 for sovereigns rated ‘C’ to ‘CCC+’ by Fitch was 40.6%. The median general government debt/GDP ratio of Fitch-rated sovereigns rose steadily from 31% in 2008 to 48% pre-Covid-19 pandemic, facilitated by frontier markets’ easier access to the Eurobond market and borrowing from China. Read more: Fitch Ratings
US Vice President Kamala Harris announced intentions to increase trade and investment with Tanzania during a visit to the East African country on Thursday as part of an African tour aimed at improving relations with a continent where China and Russia are gaining clout. Working together, it is our shared goal to increase economic investment in Tanzania and strengthen our economic ties,” the vice president said, listing several initiatives. These initiatives included a new memorandum of understanding between the Export-Import Bank of the United States (EXIM) and the government of Tanzania, that will facilitate up to $500 million in financing to help U.S. companies export goods and services to Tanzania in sectors including infrastructure, transportation, digital technology, climate and energy security, and power generation. Read more: Business Insider
Kenya’s economy is likely to develop at a 5.8% annual rate in 2023, down from a 6.1% annual rate originally forecast, according to Central Bank Governor Patrick Njoroge on Thursday. Kenya, like the rest of the area, is recovering from the region’s worst drought in four decades. It has also experienced an increase in the pricing of basic goods, as well as the impacts of a weaker currency and a large public debt load. Read more: Business Insider
The UK economy performed better than previously estimated at the end of last year, revised official figures show. It was previously thought the economy had not grown in the last three months of 2022, but new Office for National Statistics data shows it grew by 0.1%. The latest figures confirm that the UK economy avoided falling into recession at the end of 2022. Read more: BBC News
The UK has signed a deal to join a trade pact with 11 Asia and Pacific nations, three years after it officially left the European Union. Joining the group will boost UK exports by cutting tariffs on goods such as cheese, cars, chocolate, machinery, gin and whisky, the government said. However, the government’s own estimates show being in the bloc will only add 0.08% to the size of the UK’s economy. The trade area covers a market of around 500 million people. The Comprehensive and Progressive Agreement for Trans-Pacific Partnership – or CPTPP – was established in 2018, and includes Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam. Membership of the CPTPP loosens restrictions on trade between members and reduce tariffs – a form of border tax – on goods. Read more: BBC News
The US economy grew at a slower pace in the fourth quarter than initially estimated, as consumer spending continued to trail off. Inflation-adjusted gross domestic product — the broadest measure of economic activity — increased 2.6% for the final three months of 2022, according to the Commerce Department’s third and final reading for the quarter. Economists were expecting GDP growth to hold steady at 2.7%, according to Refinitiv. Read more: CNN
President Vladimir Putin has conceded that Western sanctions designed to starve the Kremlin of funds for its invasion of Ukraine could deal a blow to Russia’s economy. “The illegitimate restrictions imposed on the Russian economy may indeed have a negative impact on it in the medium term,” Putin said in televised remarks Wednesday reported by state news agency TASS. It is a rare admission by the Russian leader, who has repeatedly insisted that Russia’s economy remains resilient and that sanctions have hurt Western countries by driving up inflation and energy prices. Read more: CNN
EU agrees to double renewables by 2030 and UK unveils its long-awaited climate plan. Negotiators from the European Parliament and the Council of the EU, which represents EU member states, agreed that by 2030, the 27-country bloc would commit to sourcing 42.5% of its energy from renewable sources like wind and solar, with a potential top-up to 45%. The European Union’s current target is for a 32% renewable energy share by 2030. The United Kingdom also announced its own climate strategy Thursday. The plan sets out a pathway for the nation to reach net zero — which means removing from the air at least as much planet-heating pollution as it emits. The strategy focuses on clean energy technologies, and energy security in the wake of the invasion of Ukraine. It includes support for offshore wind energy, electric vehicles, green hydrogen, nuclear technology, home insulation and home heat pumps. Read more: CNN
Ghana’s debt talks have taken a significant step forward as the government engage one of the world’s largest financial advisory firm in formal negotiations. Bermuda-based Lazard is representing Ghana, while Paris-based Rothschild is representing international bondholders, who account for the largest share of the country’s external debt. The talks cover the $13 billion owed by international bondholders and are being held under a non-disclosure agreement, meaning that no public information will be released at this time. Read more: African Business
ZANACO Bank Plc has declared a dividend of K421 million to shareholders after recording total revenue growth of K3.94 billion, growing it from K3.5 billion in 2021. During a post – annual general meeting media today, ZANACO board chairperson Patrick Wanjelani said 2022 was another great year for ZANACO as the bank recorded revenue growth of 11 percent year on year to K3.94 billion. Bank Chief Executive Officer, Mukwandi Chibesakunda, said they had made significant progress with the digital transformation, with its Xpress footprint increasing from 16,758 in 2021 to over 22,000 at end of 2022. She said in terms of performance, the bank’s balance sheet presented a growth of 37 percent supported by a 54 percent growth in deposits. Read more
In 84 trades recorded yesterday, 139,390 shares were transacted resulting in a turnover of K1,627,165.24. A share price gain of K0.20 was recorded in Standard Chartered Bank Limited and a share price loss of 0.03 was recorded in CEC Africa on the quoted tier. Trading activity was also recorded in British American Tobacco Zambia, CEC Zambia, PUMA, Zambia Breweries, Zambeef, Zanaco, and Zambia Sugar. The LuSE All Share Index (LASI) closed at 7,838.10 points up by 0.99% from its previous close of 7,761.51 points. The market closed on a capitalization of K75,049,515,708.43 including Shoprite Holdings and K40,266,830,268.43 excluding Shoprite Holdings.
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