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Kamala Harris urges Zambia creditors to expedite debt restructuring
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Oil prices surge after OPEC+ producers announce surprise cuts
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ZCCM-IH Shareholders Approve the Kansanshi Royalty Transaction
Story of the Day
On March 31, 2023, GreenCo Power Storage Limited officially signed a grant funding agreement with the United States Trade & Development Agency (USTDA) for a Battery Storage Feasibility Study. The signing ceremony took place at the GreenCo offices located at the United Church of Zambia Synod Building at 1:30Pm CAT and was attended by USTDA representatives and key government stakeholders. As Zambia’s demand for electricity continues to increase, investing in renewable energy technologies such as battery storage systems is crucial to achieving the government’s target of expanding the country’s power generation capacity while minimizing the environmental impact of energy generation. The feasibility study is an important step towards developing sustainable energy solutions in Zambia. Read more
In Local Business News Sponsored by
U.S. Vice President Kamala Harris, on a week-long tour of Africa, on Friday urged Zambia’s bilateral creditors to expedite the restructuring of its debts. “We are continuing to reiterate our call on official bilateral creditors to provide meaningful debt reduction to Zambia,” Harris said at a press briefing when asked what the United States was doing to push China to restructure Zambia’s debt. Harris said her visit to Zambia was intended to strengthen existing relations between the two countries and not to counter the Chinese presence in Africa. “Let me be clear. Our presence here is not about China. It’s about our independent understanding of intertwined histories of our nations,” said Harris, who also spoke warmly of visiting her grandfather while he was working in Zambia when she was a child. Speaking at the same briefing, Zambian President Hakainde Hichilema said delays to debt restructuring were hurting the economic gains that Zambia had made. Good relations with the United States did not preclude good relations with China and vice versa, he added. Read more: Reuters
US Vice President Kamala Harris has concluded her two-day visit to Zambia, during which she met with President Hakainde Hichilema at State House and announced US support worth over $16 million to Zambia. Her visit sought to advance US assistance to Zambia in accessing the digital economy, strengthening business ties and investment through innovation, entrepreneurship, as well as economic empowerment to women. Read more: Lusaka Times
Zambia’s Non-Traditional Export (NTEs) earnings have increased by 9.2 percent to K7.8 billion February this year. This is an increase from the previous month of K7.1 billion, according to Zambia Statistics Agency (ZamStats) Interim Statistician General, Mulenga Musepa. He stated during a media briefing held in Lusaka on Thursday that in terms of the share in total exports, NTEs accounted for 42.9 percent in February 2023. Musepa also indicated that the country recorded a decline in the traditional export earnings for the month of February to K10.3 billion from K13.9 billion in January. He pointed out that in terms of the total share in total exports, traditional exports accounted for 57.1 percent in the month under review. Read more: Zambia Monitor
Energy Regulation Board (ERB) has reduced the pump price for diesel by K2.97. The product will now cost K26.28 for the month of April, down from K29.25 pegged in March 2023. The price of petrol has slightly reduced from K28.52 to K27.59, as the price of Jet A-I at Kenneth Kaunda International Airport (KKIA) remains unchanged at K 25.34 while kerosene will trade at K22.29, unmoved. Read more: Zambia Monitor
Development Bank of Zambia (DBZ) says it will allocate Capital towards government priority sectors as set forth in the eighth National Development plan such as Agriculture, Manufacturing, Mining, Tourism, Health, Education, ICT and Energy. Speaking at the signing Ceremony of a Memorandum of understanding between DBZ and Norsad, DBZ Acting Managing Director Maybin Muyawala said this was in view of government’s new strategic direction. “DBZ works with Projects that have a multiplier effect and aid the government’s strategy in development by mimicking its strategic direction.” He said. Mr. Muyawala noted that the Bank will also continue to foster effective partnerships and collaborations such as the partnership with Norsad Capital aimed at supporting Zambian Businesses and improving Social impact. Read more: Money FM
Africa’s second largest copper hotspot, Zambia has been dubbed a an opportunity train that American investors need to jump on now before it is too late. Speaking at business lunch themed Zambia’s Economic Revitalisation and Investment graced by President Hakainde Hichilema that hosted a US delegation who were part of the U.S. Vice Presidents African continental tour, PricewaterhouseCoopers Senior Partner Andrew Chibuye likened Zambia to an undervalued stock on Wall Street. Read more: The Business Telegraph
Bank of Zambia Exchange Rates
Currency | Buying | Selling |
---|---|---|
USD | 21.2816 | 21.3314 |
GBP | 26.3508 | 26.4210 |
EUR | 23.1565 | 23.2192 |
ZAR | 1.2010 | 1.2041 |
In International Business News
Oil prices spiked during Asian trade Monday after OPEC+ producers said they would cut production in a surprise move. Brent crude, the global benchmark, jumped 4.8% to $83.73 a barrel, while WTI, the US benchmark, rose 4.9% to $79.36. Rising oil prices could mean inflation remains higher for longer, adding pressure to a hot-button issue for consumers around the world. On Sunday, Saudi Arabia announced that it would start “a voluntary reduction” in its production of crude oil, alongside other members or allies of the Organization of the Petroleum Exporting Countries (OPEC). Read more: CNN
A lawsuit has been filed against Google to seek $4.2bn in compensation for publishers for lost revenue. The claim, by ex-Guardian technology editor Charles Arthur, alleges Google unlawfully used a dominant position in online adverts in a way that reduced what publishers could make from them. Google said it would fight the “speculative and opportunistic” action vigorously. It is the second such lawsuit, after a similar case was launched in November. Read more: BBC News
The president of the World Bank has told the BBC that he is concerned about some of the loans China has been making to developing economies in Africa. David Malpass says the terms and conditions need to be “more transparent”. It comes amid worries that countries including Ghana and Zambia are struggling to repay their debts to Beijing. China says that any such lending is done within international rules. Developing countries often borrow money from other nations or multilateral bodies to finance sectors that will grow their economies such as infrastructure, education and agriculture. Read more: BBC News
Africa’s global bank, United Bank for Africa (UBA) Plc’s audited financial results for the year ended December 31, 2022 has shown impressive performance across major indices. The 2022 financials, filed by the bank at Nigerian Exchange Limited (NGx) on Thursday, showed that gross earnings rose significantly from N 660.2 billion recorded at the end of the 2021 financial year, to N853.2billion, representing a strong 29.2 percent growth. Read more: Lusaka Times
ZCCM Investments Holdings Plc (ZCCM-IH) shareholders have approved the Kansanshi royalty conversion where the Company will now receive 3.1% of Kansanshi Mining Plc’s (Kansanshi) total revenue. The royalty revenue will be paid on a quarterly basis over the entire life of the mine of Kansanshi that currently extends to the year 2045. The approval was given at the Shareholder’s Extraordinary General Meeting (EGM) held in Kitwe on 31st March 2023. The royalty income stream replaces the former model of unpredictable and unguaranteed dividend pay-outs. These were made at the discretion of the Board and were dependent on company profitability. Instead, a royalty is predictable and guaranteed as it will be charged at 3.1% of the company’s total revenue (from sales of Copper, Gold, and all other metal products) as per the Royalty Agreement. This therefore guarantees a steady income stream for ZCCM-IH, as long as there is production at Kansanshi. ZCCM-IH Board Chairperson Ms. Dolika Banda says that this will result in a far healthier cash flow for ZCCM-IH which will in turn make it far easier for the Company to raise financing pursue its ambitious investment strategy. Read more
In 45 trades recorded on Friday, 153,687 shares were transacted resulting in a turnover of K2,341,348.64. . Trading activity was recorded in AECI, British American Tobacco Zambia, CEC Zambia, Chilanga Cement, Zambia Reinsurance, PUMA, Standard Chartered Bank Limited, Zambeef, Zambia Sugar and CEC Africa on the quoted tier. The LuSE All Share Index (LASI) maintainted its close at 7,838.10 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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