Good morning. Here’s what you need to know

• Africa GreenCo, ZESCO announce execution of System Operations Agreement (SOA)

• Saudi Arabia’s oil production cuts have tipped its economy into reverse

• Arc Minerals and Anglo American sign agreement 

Story Of The Day 

Africa GreenCo Group, through its Zambian-based operating company GreenCo Power Services Limited (together GreenCo), is thrilled to announce the successful execution of a System Operations Agreement (SOA) with the Zambian National Power Utility, ZESCO Limited. The SOA was officially signed by the ZESCO Managing Director, Engineer Victor Benjamin Mapani and the CEO of GreenCo, Ms. Ana Hajduka on 6th October 2023. This milestone SOA defines the operational parameters for GreenCo’s supply of electricity from the 25MW Ilute Solar PV plant to be constructed in Western Province of Zambia into ZESCO’s power grid system and subsequently sold into the Southern Africa Power Pool (SAPP). The collaboration between ZESCO and GreenCo on this groundbreaking project further demonstrates the viability of an open access regime in the Zambian Electricity Supply Industry (ESI) in line with the legislative amendments of 2019. Situated in Sesheke District of Western Province, the 25MW Ilute Solar Power Project shall be the first of its kind in Africa, using the competitive markets of the SAPP to mitigate customer default risk by leveraging the diversified customer base in contrast with the traditional practice of transferring project risk to the national treasury. Read more

In Local Business and Finance News Sponsored By 

President Hakainde Hichilema is in the Angolan Capital Luanda for the Extraordinary Southern Hichilema Development Community (SADC) Summit of Heads of State and Government. President Hichilema touched down at the Luanda International Airport at 09:30 Zambian time aboard the Presidential Challenger accompanied by Minister of Foreign Affairs and International Cooperation, Stanley Kakubo. The Head of State was welcomed at the Airport by Angolan Minister of Foreign Affairs, Antonio Tete and Zambia’s Ambassador to Angola, Lawrence Chalungumana. President Hichilema is attending the summit in his capacity as Chairperson of the SADC Organ on Politics, Defense and Security Corporation. Read more: ZNBC

Government has called for more partnerships between artisanal miners and foreign mine investors so that there is transfer of technological knowledge to small scale miners. Minister of Small and Medium Enterprise Development Elias Mubanga says the new way of mining involves the use of technology which is beyond the reach of most small scale miners at the moment. Speaking in an interview with ZNBC news at the exhibition of the 2023 Zambia International Mining Conference and Exhibition in Kitwe, Mr. Mubanga urged small scale miners to embrace technology in their mining activities to improve productivity. Read more: ZNBC

The Zambian government has made it clear that it would not support any resource nationalisation but stick to its private-centric mining policy as it envisages to ramp production to one million in the 2024 fiscal year. Gerald Mwila, director geological survey in the Ministry of Mines and Mineral Development made the mining case for Zambia at the just ended 11th Zambia International Mining and Energy Conference and Exhibition on Thursday. “The new Mine and Mineral Development policy is encouraging diversity that supports green transition by supporting other minerals other and Zambia will maintain a private sector delivery, no resource nationalism,” Mwila said. Read more: Zambia Monitor

Commerce, Trade and Industry Minister, Chipoka Mulenga, has called for a common voice for African countries in fostering the African Growth and Opportunity Act (AGOA) partnership with the United States (US). Mulenga stressed the importance for Africa to support each other and stand together as one continent with one goal of transforming its economy through the collaborative efforts of partners such as the US. He said this on Friday on the side-lines of the high-level Ministerial Meeting of the 20th AGOA Forum which is taking place in Johannesburg, South Africa. Read more: Zambia Monitor

Bank of Zambia Exchange Rates

In International News 

Australian PM Anthony Albanese and Chinese President Xi Jinping will soon sit down for a drought-breaking bilateral meeting in Beijing. Mr Albanese, who landed in Shanghai on Saturday, is the first Australian leader to visit China since 2016. The visit is seen as a key moment in thawing relations, after a string of trade and security disputes. Trade will top the agenda – Mr Albanese is calling for the removal of Chinese tariffs on Australian goods. Mr Xi is expected to ask for more access to key Australian sectors. Read more: BBC News

Saudi Arabia’s economy has jolted into reverse, after the world’s largest crude oil exporter slashed output to prop up prices. Saudi gross domestic product, the broadest measure of its economy, shrunk 4.5% year-over-year in the third quarter of 2023, the country’s official statistics agency said this week. That’s the largest contraction since the Covid-19 pandemic in 2020. The slump would have been even greater if not for growth of 3.6% in non-oil activities. The country’s vast oil sector had been shrinking for months but the overall economy still managed growth of 1.2% year-on-year in the second quarter. The kingdom’s oil sector contracted by 17.3% year-on-year in the third quarter — the most on record for any quarter since at least 2011 — because of the voluntary oil production cuts, aimed at shoring up global prices. Read more: CNN 

The United States and the European Union have collaborated with the African Development Bank (AFDB) and the Africa Finance Corporation to inaugurate the West’s most recent effort to challenge China’s Belt and Road Initiative, an ambitious infrastructure development program seeking to link China with markets and economies across the globe. The involved parties have formalized their agreement by signing a memorandum of understanding that outlines their intentions to develop the “Lobito Corridor” and the Zambia-Lobito railway. Together, these initiatives will create a vital cross-continental connection through regions hosting significant mineral deposits. The agreement was reached during the Global Gateway Forum in Brussels, a selective gathering that brings together EU governments, corporations, financial institutions, and international organizations to promote global infrastructure development. Read more: Business Insider

Fitch Ratings has maintained Nigeria’s long-term foreign-currency issuer default rating at ‘B-‘ with a stable outlook, attributing this to the ongoing reforms introduced by the administration of President Bola Tinubu. According to the agency, the pace of reform progress under President Bola Tinubu’s administration, since assuming office in May 2023, has exceeded its previous expectations. In June, the government eliminated fuel subsidies, which accounted for nearly 2% of GDP in 2022. Also, it streamlined the multiple exchange rate windows, resulting in the official investor and exporter rate depreciating by almost 40%, albeit with increased volatility observed towards the end of October. However, it noted there are still sizeable socio-political challenges to implementation, including an acceleration in inflation, which could account for the recent backtracking of some reforms. Read more: Business Insider

Finally, Capital Markets News

Arc Minerals is pleased to announce that the substantive regulatory conditions precedent with regards to its Joint Venture Agreement with a subsidiary of Anglo-American plc (“Anglo American”) as previously announced (the “JVA”) have been satisfied. Arc further announces that the parties have completed the subscription of shares in the joint venture company resulting in a 70% interest having been acquired by Anglo American and a 30% interest having been acquired by Unico Minerals Ltd, a 67% subsidiary of Arc Minerals Ltd. In addition, Arc is pleased to confirm that drilling at one of the key joint venture licences has commenced. Nick von Schirnding, Executive Chairman of Arc said “This marks a major turning point for Arc and our shareholders. I am delighted that we have now satisfied the substantive regulatory conditions precedent to completing the JVA and that the joint venture drilling campaign led by our partners, Anglo American, has commenced. Read more

In 92 trades recorded on Friday 204,073 shares were transacted resulting in a turnover of K1,069,716.22. A price loss of K0.01 was recorded on Friday. Trading activity was recorded in AECI, Airtel, Copperbelt Energy Corporation Zambia, Investrust, Standard Chartered Bank Limited,  Madison Financial Services, PUMA, ZAMEFA, Zambeef, ZANACO and ZAFFICO as well as CEC Africa on the qouted tier. The LuSE All Share Index (LASI) maintained its close at 9,920.86 points. The market closed on a capitalization of K84,761,734,048.43 including Shoprite Holdings and K49,979,048,608.43 excluding Shoprite Holdings.

Picture of the Day

ZESCO Limited and Africa GreenCo recently signed an agreement under the open access framework. The SOA is a significant milestone for AGC.