Good morning. Here’s what you need to know
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Finance Minister, Musokotwane, presents K41.9 billion revised budget
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WWF Partners With Zambia To Implement 2 Climate Adaptation Projects
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Ghana completes external debt restructuring programme, reportedly secures over $8 billion in saving
In Local Business and Finance News
Finance and National Planning Minister, Situmbeko Musokotwane, has presented a K41.9 billion revised budget to Parliament for approval which has been necessitated by the current drought situation. Among the notable proposed expenditure included K8.3 billion or 19.8 percent of the revised budget to be dedicated to facilitating government drought response interventions in an effort to provide life-saving and early recovery assistance to the millions of Zambians affected by this disaster. Of this amount, K5.2 billion had been allocated to the Ministry of Community Development and Social Services for the Social Cash Transfer Programme (SCTP). This allocation to the SCTP would facilitate for a top-up of K200 to all the 1.3 million households already enrolled in the existing Social Cash Transfer Programme. Read more: Zambia Monitor
Stanbic Bank Zambia and the Industrial and Commercial Bank of China (ICBC) have reaffirmed their commitment to increasing Sino-Zambian trade volumes and contributing to the economic development of both regions. Stanbic Bank’s Chief Executive, Mwindwa Siakalima, stated the significance of the ongoing partnership between the two institutions, highlighting its critical role in accelerating Africa’s economic development by providing access to the global market. Speaking at the 2024 Lusaka-China Day Economic Forum, Siakalima noted that the 16-year strategic cooperation between Africa’s largest bank by assets, Standard Bank, and ICBC has been instrumental in offering China-Africa financial services to clients, including those of Stanbic Bank Zambia. Read more: Zambia Monitor
The World Wide Fund for Nature (WWF) has partnered with the Zambian government to undertake two climate adaptation projects aimed at protecting the ecosystem along one of the country’s biggest rivers and a national park. The projects include the Kafue Flats Climate Resilience and Adaptation project and the Kafue Flats Wildlife, Habitat, Health and Livelihood project. The two projects will be undertaken in five years at a cost of 9 million U.S. dollars funded by the Global Environment Facility (GEF), a multilateral environmental fund established in 1991 that provides grants and blended finance for projects related to biodiversity, climate change, international waters, land degradation in developing countries and countries with economies in transition. Nalucha Nganga-Ziba, the WWF-Zambia country director, said her organization was honored to be selected to partner with the government in implementing the two projects to support communities on sustainable crop and livestock farming and support to livestock conservation. Read more: Capital FM
Johannesburg- and London-listed Jubilee Metals has acquired two opencast Zambia copper mining operations. “The strategic acquisition of the two opencast operations is an example of our ability to leverage our process capability to secure significant near-surface copper resources already in operation,” Jubilee CEO Leon Coetzer said of the continually advancing diversified metals producer, chaired by former Mpumalanga Premier Mathews Phosa. The AltX- and Aim-listed Jubilee, which specialises in the recovery of metal from previously overlooked resources, such as unprocessed historical waste rock, run-of-mine materials and tailings in South Africa and Zambia, is also progressing the roll-out of its integrated copper strategy in Zambia. “Zambia holds numerous similar resource opportunities which we are actively pursuing,” Coetzer highlighted in Monday’s stock exchange news service release covered by Mining Weekly. Read more: Mining Weekly
In International News
Ghana has reached an agreement in principle with two bondholder groups to rework some $13 billion of international debt with as much as a 37% haircut, it said on Monday, edging closer to completing a debt overhaul that has been years in the making. Under the agreement, bondholders will forego about $4.7 billion of their claims and provide cash flow relief of about $4.4 billion during the period of Ghana’s current loan programme with the International Monetary Fund that is scheduled to end in 2026. “The formal launch of the consent solicitation is expected in the upcoming weeks,” the government said, referring to the process of putting the proposal to all its bondholders which, if passed, would see the country emerge from default. Details of deal were first reported by Reuters on Thursday. The agreement will offer Ghana a path to economic recovery through significant debt relief and provision of cash flow, the committee representing international bondholders said in a statement welcoming the deal. Read more: Reuters
Facebook parent Meta Platforms has discussed integrating its generative AI model into Apple’s recently announced AI system for iPhones, the Wall Street Journal reported on Sunday. The move comes as Apple plans to add technology from other AI companies on its devices amid reports that it was discussing a potential tie-up with long-time search partner Alphabet’s Google. The iPhone maker is also expected to discuss partnerships with other AI companies in different regions like China, where Microsoft-backed OpenAI chatbot ChatGPT is banned. Read more: Reuters
The risk of soaring Chinese electric car prices in the EU could be easing after both sides agreed to negotiate a planned series of import taxes. Top officials from both regions spoke about the tariffs on a call on Saturday and agreed to discuss them further, though frictions remain. The call marks the first time the two sides have agreed to negotiate since the EU threatened China with electric vehicle (EV) tariffs of up to 38%. The EU said Chinese EVs were unfairly subsidised by its government. In response, China accused the EU of protectionism and trade rule breaches. An EU spokesperson told the BBC the call between Trade Commissioner Valdis Dombrovskis and his Chinese counterpart Wang Wentao was “candid and constructive”. They said the two sides would “continue to engage at all levels in the coming weeks”. Read more: BBC News
US prosecutors have recommended that the Department of Justice (DoJ) brings criminal charges against Boeing. It follows a claim by the DoJ that the plane maker had violated a settlement related to two fatal crashes involving its 737 Max aircraft which killed 346 people. Boeing declined to comment when contacted by the BBC but previously it has denied violating the deferred prosecution agreement. The DoJ has until 7 July to make a final decision on whether to prosecute the company. The DoJ has been contacted for comment. The recommendation is not a final decision and the details of any potential criminal action are not known, according to CBS, the BBC’s US partner. “This is a really critical decision that is coming up,” said Ed Pierson, who is the executive director of the Foundation for Aviation Safety and a former senior manager at Boeing. Read more: BBC News
Finally, Capital Markets News
In 191 trades recorded on Friday, 25,592 shares were transacted resulting in a turnover of K170,807.11. The following price changes were recorded Friday: +K0.01 in BATA, +K0.42 in CEC Zambia and 0.06 in Chilanga Cement. Trading activity was also recorded in PUMA, Real Estate Investments Zambia, Standard Chartered Bank Limited, Zambia Breweries, Zambeef, ZANACO, Zambia Sugar and CEC Africa on the quoted tier. The LuSE All Share Index (LASI) closed at 13,517.19 points, 1.16% higher than its previous day close at 13,362.20 points. The market closed on a capitalization of K111,874,921,769.23 including Shoprite Holdings and K68,396,564,969.23 excluding Shoprite Holdings.
12 Govt Bonds trade with total face value of K74,167,000 and turnover K52,627,570 were processed on Friday.