Story of the Day
Zambeef stated on 10 November 2022, that for the year ended 30 September 2022 (“FY22”) (all in USD), revenue, adjusted* EBITDA, and reported profit before tax were expected to be in line with current market expectations. Adjusted* profit before tax was expected to be c.10% ahead of then current market expectations. Zambeef is pleased to confirm no change to expectations in relation to revenue, adjusted* EBITDA and adjusted* profit before tax. However, reported profit before tax is now expected to be affected by an impairment loss. Read more
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Chief Government Spokesperson Chushi Kasanda has refuted reports that ZCCM-IH has sold its shares in Kansanshi Mining Plc, saying the parties have simply entered into a new arrangement that provides a more beneficial revenue stream. Kasanda says ZCCM-IH will continue to hold its shares in Kansanshi and will also continue to have pre-emptive rights in respect of the mining company. ZCCM-IH recently announced that it had entered into a transaction with First Quantum Minerals (FQM) to convert its dividend rights and economic value in its 20 percent equity in Kansanshi Mining Plc into a life of mine royalty. Read more: News Diggers
The Zambia Tourism Agency has launched the 2023 Marketing Plan for Destination Zambia, which is an initiative to create integrated and holistic strategies to promote and boost demand for the country’s tourism through increased arrivals. It sets out the general outlook and perspectives for the overall marketing programme for tourism in Zambia, and strategies and priorities to achieve a successful and sustainable tourism destination. The agency is optimistic of sustained growth driven by increased budgetary support from government for marketing activities, and visa waiver for specific source markets and increased consumer confidence in the tourism products. Read more: Business Day
Several diplomats accredited to Zambia have indicated that the country is poised for massive economic transformation. Among the diplomats that predict Zambia’s economic growth is the United States of America – USA Ambassador to Zambia, Micheal Gonzales who said Zambia is destined for massive development. Mr Gonzales has attributed the projected growth of Zambia’s economy to what he termed as “excellent strategies and policies” that the government is implementing. The diplomat made this observation last evening during the 5th Annual Corporates and Diplomats’ Gala Dinner organized by the Ministry of Foreign Affairs and International Relations held at Twangale park in Lusaka. Read more: Lusaka Times
Zambia will start rationing electricity supply to domestic consumers from Dec. 15 following a big drop in water levels in lake Kariba, threatening hydropower generation, Energy Minister Peter Kapala said on Friday. Water levels in the lake have dropped to 4.1% of usable storage for the Kariba North Bank Power Station in Zambia and the Kariba South Bank on the Zimbabwean side of the lake, Kapala told parliament. “The low water level situation in the lake Kariba threatens the power generation from both the Kariba North Bank Hydropower station and Kariba South Bank Hydropower station,” Kapala said. Read more: CNBC
International Business and Finance
The US and its Asian allies have imposed sanctions on three North Korean senior officials associated with the country’s recent missile tests. Pyongyang launched a record number of ballistic missiles more than 60 – this year, and tested several intercontinental ballistic missiles. Jon Il Ho, Yu Jin, and Kim Su Gil allegedly “played major roles” in developing the weapons. Japan, South Korea, and the EU have also imposed sanctions. North Korea has faced tough sanctions imposed by Western countries for years. Under these new sanctions, all US-based assets of the North Korean officials will be frozen. They will be barred from any transactions with any business or individual in the US. Read more: BBC News
The EU must address “distortions” created by a $430bn US plan to incentivise climate-friendly technologies, the bloc’s chief says. Some EU members have criticised the US Inflation Reduction Act (IRA), raising fears of a trade war. There are concerns that tax breaks may lure away EU businesses and disadvantage European companies. European Commission President Ursula von der Leyen said the EU should “adjust our own rules”. “Competition is good … but this competition must respect a level playing field,” she said during a speech in Belgium. Read more: BBC News
OPEC and its allies decided Sunday to stick with their existing policy of curtailing oil output, just hours before new Western sanctions on Russian crude exports come into force. The Organization of the Petroleum Exporting Countries, and other major oil producers including Russia, said they would continue to restrict supply by 2 million barrels per day, a policy set in October that started last month and is due to run through the end of 2023. In a statement, OPEC said Sunday’s meeting — held via video conference — had reaffirmed the decision taken in October, adding that the group was ready to meet at any time to “address market developments if necessary.” Read more: CNN
Following the President’s directive to put a stop to incurring external debts, Kenya is making strides in cutting down its debt service. The Kenyan National Treasury is currently takings steps to swap the country’s short-term debt with longer-term issuances. Last week the treasury began a debt swap that will see Sh87.8 billion ($714.6 million) worth of short-term debt converted into long-term debt to ease the pressure it is experiencing from maturities. During the same period, the Kenyan government floated its first switch bond since June 2020. The treasury recently noted that it has no leeway for any fresh borrowing, a problem exasperated by the numerous economic challenges the country is faced with. Read more: Business Insider
Capital Markets Report
In 130 trades recorded on Friday, 9,242,943 shares were transacted resulting in a turnover of K122,508.89. A share price gain of K0.01 was recorded in Zanaco. A share price gain of K0.06 and 0.18, was recorded in CEC Zambia and Standard Chartered Bank Liimited respectively. Trading activity was also recorded in PUMA, Real Estate Investments Zambia, Zambian Breweries, ZCCM, Zambeef and Zambia Sugar as well as RELA (REIZ rights). The LuSE All Share Index (LASI) closed at 7,344.32 points, 1.31% up from it’s previous close at 7,249.67 points. The market closed on a capitalization of 72,900,175,041.58 including Shoprite Holdings and K37,117,489,601.58 excluding Shoprite Holdings.
