Good afternoon. Here’s what you need to know
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FIC detects illicit financial flows worth K61bn involving foreign nationals
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OPEC+ extends oil output cuts into 2025
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Africa remains second fastest growing region globally with 41 countries’ growth surge
In Local Business and Finance News
FIC has revealed that in the first quarter of 2024, it observed a continuing trend of suspected tax evasion and money laundering by foreign nationals transferring suspected illicit funds out of Zambia. The Financial Intelligence Centre says during the period under review, it disseminated 810 reports to law enforcement, with estimated outflows of Kwacha equivalent of K61 billion related to suspected illicit financial flows. The centre has disclosed that inquiries and verifications conducted during the quarter uncovered, among other significant sources, fraudulent activities, tax evasion-tainted legitimate trade operations and illicit mining. In its 2024 first quarter bulletin, the Centre observed that foreigners continued to establish companies and use Zambians as proxies to maintain control over their respective bank accounts. Read more: News Diggers
Energy Regulation Board (ERB) has increased the price of diesel by K1.51 to K31.11 from K29.60, while petrol has been maintained at K35.56 ngwee per litre. The price of kerosene has risen by K1.11 and will now be selling at K29.50 from K28.39 per litre, while Jet A-1 at Kenneth Kaunda International will now be sold at K32.76 from K31.53 per litre, representing a price increase of K1.23. In a statement, Board Chairperson James Banda attributed the increase in the prices of diesel, kerosene and Jet A-1 fuel to the weakening of the Kwacha between April, and May 2024, which lost value by 5.01 percent against the US dollar. “Since the last fuel price review on 30th April, 2024, the price of petrol, diesel and kerosene on the global market declined by 14.13%, 10.68% and 7.37% respectively.” “Between April and May 2024, the Kwacha depreciated against the United States dollar at an average of 5.01 percent. This depreciation was mainly attributed to the continued high demand for US dollars against limited supply on the market,” Mr. Banda noted. Read more: Money FM
Jesuit Centre for Theological Reflection (JCTR) has disclosed that the cost of living for a family in Lusaka increased by K352.87 in May, 2024. Centre Social & Economic Development Programme Officer, Lukwesa Musonda, says the Basic Needs and Nutrition Basket now stands at K10, 701.13, compared to K10, 603 recorded in April, 2024. Ms. Musonda attributed the increase in the basket to the rise in the price of charcoal which stood at K458.33 from K343.33 for a 90kg bag, as well as tomatoes which rose to K29.99 per kg from K16.38 per kg. She noted that with the devastating effects of the prolonged droughts in the country, the impact has further highlighted already existing inequalities. “As a driver of the rising cost of living, the climate crisis often escalates challenges in the food supply chain, leading to increased prices of food items.” “The most significant change observed in the basket was due to an increase in the price of charcoal. This increase was driven by several factors affecting the charcoal markets within Lusaka. Firstly, the ban on charcoal production in three districts, Shibuyungi, Itezhi-Tezhi, and Mumbwa, announced in April, took effect during the month under review,” Ms. Musonda noted. Ms. Musonda added that the rise in fuel pump prices has increased transportation costs, while extended load shedding hours have led to higher demand for charcoal in households. Read more: Money FM
Zambian startup Bosso, a cutting-edge construction e-commerce platform aimed at delivering solutions for the African construction and building sector, has raised a US$400,000 pre-seed round of funding to further develop its platform and add new features. Founded in 2022 by Chisepo Chirwa, Mukopaje Singogo, Ibn Kafwanka and Salwa Shamapande, Bosso is Zambia’s largest online construction material marketplace for hardware stores and contractors. The platform benefits the construction sector by making quality and affordable building materials available to everyone, everywhere, in Zambia. “What initially began as an online marketplace that streamlined the sourcing of building materials for hardware stores, has evolved into a holistic B2B and B2C solution to address the 60 million housing deficit across Africa,” Chirwa, Bosso’s CEO told Disrupt Africa. Read more: Disrupt Africa
Anti-Corruption Commission (ACC) Director-General, Thom Shamakamba, has announced that Zambia will collaborate with other African Union Member States to address the problem of illicit financial flows and recover stolen assets. Shamakamba stated that the ACC would not only trace stolen money but also recover properties bought outside Zambia using stolen funds. The ACC Director-General made these remarks during a courtesy call on Zambia’s Ambassador to Ethiopia, Rose Sakala, who also serves as Zambia’s Permanent Representative to the African Union. This was contained in a statement issued in Lusaka on Friday by Inutu Mupango Mwanza, the First Secretary for Press and Tourism at the Zambian Embassy in Addis Ababa, Ethiopia. Read more: Zambia Monitor
In International News
41 countries in Africa will experience stronger growth rates in 2024 compared to 2023, the latest African Economic Outlook from the African Development Bank Group predicts. The report unveiled at the Bank’s Annual Meetings on Thursday in Nairobi, described Africa’s growth potential as ‘remarkable’. The continent will retain its 2023 ranking as the second fastest-growing region after developing Asia in 2024 and 2025. African Development Bank President Akinwumi Adesina acknowledged the Bank’s pride in the growth projections for many African countries as reflected in the report. However, he noted that the Bank is also aware of the significant challenges facing the continent. “Africa’s future is bright, but need to make sure we tackle governance, transparency, accountability, and management of our natural capital. We need to make sure resources are used for the benefit of the people of this continent… The kind of resilience we are talking about cannot happen unless we deal with the issue of climate change.” “We must make sure we are investing in our young people—in their skills, talents, entrepreneurship, and giving them tools. That is why I am excited about what we are doing with the Youth Entrepreneurship Investment Banks,” he added. According to the African Economic Outlook, the rebound in Africa’s average growth includes a rise to 3.7% in 2024 and 4.3% in 2025, exceeding the projected global average of 3.2%. Read more: Business Insider
The Dangote refinery in Nigeria has achieved another milestone as it exports its first jet fuel cargo to Europe. BP is in the process of transporting its first jet fuel cargo from Dangote to Rotterdam, having secured a portion of a 120,000 metric ton tender offered for the end of May. Two sources have confirmed that the Doric Breeze ship carried the first BP cargo, loading 45,000 metric tons of supply from Lekki on May 27, S&P Global Commodities reported. Also, traders have reported that Cepsa also secured a portion of the tender, with the Spanish refiner expected to deliver supply to the continent soon. A representative from Dangote previously confirmed to S&P Global Commodity Insights that the refinery has complied with European jet A1 standards since the product first started being shipped within Africa in April. The maiden European shipment demonstrates the expanding presence of products from the 650,000 b/d Dangote refinery, which has swiftly expanded its operations and seeks to disrupt established trade patterns in West Africa. Read more: Business Insider
The Organization of the Petroleum Exporting Countries and its allies — a group of leading oil producers known as OPEC+ — agreed Sunday to extend production cuts announced last year into 2025. The group said in a statement it would extend a cut of 1.65 million barrels per day, announced in April 2023, until the end of 2025. That cut was due to expire at the end of this year. It is also extending a cut of 2.2 million barrels per day, announced in November, until the end of September this year, before it is “gradually phased out on a monthly basis” by the end of September 2025. That cut was due to expire at the end of this month, and came on top of previously agreed reductions of 3.66 million barrels per day announced in 2022 and 2023 as the group — led by Saudi Arabia and Russia — tried to counter slowing demand and rising output from the United States. The group also released its 2025 production requirements for member and nonmember countries, which were essentially the same as this year’s. The United Arab Emirates’ production quota increased by 300,000 barrels per day. The uptick “will be phased in gradually” from January through September 2025, the group said. Read more: CNN
India’s economy grew by more than 8% in the fiscal year that ended in March, according to data published Friday that gives a boost to Prime Minister Narendra Modi just hours before the country concludes its mammoth, weeks-long national election. Gross domestic product (GDP) increased by 8.2%, according to the Statistics Ministry, cementing India’s status as the world’s fastest growing major economy. The rate of growth was higher than the Modi government’s forecast of 7.6%. For the final quarter of the fiscal year, GDP expanded at a faster-than-expected rate of 7.8%, compared with the same period in 2023. GDP had risen by 8.6% in the October-December period. Read more: CNN
Finally, Capital Markets News
In 99 trades recorded on Friday 19,029 shares were transacted resulting in a turnover of K130,462.22. The following price changes were recorded on Friday: K0.02 loss in ZANACO and K0.01 gain in CEC Africa on the quoted tier. Trading activity was also recorded in Airtel, CEC Zambia, Chilanga Cement, Real Estate Investments Zambia, Standard Chartered Bank Limited, Zambia Breweries, ZCCM, ZAFFICO, Zambeef and Zambia Sugar. The LuSE All Share Index (LASI) closed at 13,098.84 points, 0.05% lower than its previous close of 13,105.28 points. The market closed on a capitalization of K101,302,573,201.02 including Shoprite Holdings and K66,519,887,761.84 excluding Shoprite Holdings.
6 Govt Bond trades with a total face value of 9,796,000 and turnover 8,600,280 were processed on Friday.
