Good morning. Here’s what you need to know to start your day.
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Zambia’s private sector returns to growth for first time in 4 months — Stanbic PMI
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Seychelles ranked Africa’s least corrupt country – 2022 CPI
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In the fourth week of January 2023, Shoprite Holdings was the highest priced security.
Story of the Day
S&P noted that deteriorating global macroeconomic conditions are expected to persist into early 2023, representing a downside risk to the metals and mining sector as many commodity prices slide and equity market support weakens. Producers will be impacted by narrowing margins, while the exploration sector will restrain activity amid tighter financing conditions. ‘ S&P anticipates that conditions will, however, improve as the year progresses once central banks gain the upper hand on inflation. Lower activity levels in the second half of 2022 and through 2023 will reinforce the importance of the metals and mining industry’s role in the global energy transition effort. Read more
In Local Business News Sponsored by
Zambia’s business conditions have improved for the first time in four months and the most pronounced since December 2021. This reflected renewed expansions in output, new orders, employment and stocks of purchases, according to the latest Stanbic Purchasing Managers Index (PMI). The headline PMI moved back to above the 50 no change mark in January to signal a strengthening in the health of private sector at the start of the year. At 50.6, the index was up from 48. 3 in December 2022. Read more: Zambia Monitor
Bankers Association of Zambia (BAZ) has said the cost of borrowing is expected to increase once the minimum statutory ratio is adjusted. On Thursday last week, the Central Bank acted to address Kwacha volatility by adjusting the minimum statutory ratio on both local and foreign currency deposit effect from Monday, February 13, 2023. This will also apply to Government deposits and Vostro account deposits to be increased by 2.5 percentage points to 11.5 percent from the current nine percent. Explaining what this meant to the commercial bank customers, BAZ Chief Executive Officer, Leonard Mwanza warned that interest rates would be adjusted upwards. On household, this would also mean the cost of living was expected to rise. Read more: Zambia Monitor
Nokia will build a next-generation optical transport network connecting Kenya, Uganda, Rwanda, DRC, Zambia, Zimbabwe and South Africa on behalf of Liquid Intelligent Technologies (LIT), a leading connectivity, innovation and intelligent technology company across 13 African countries. The Finland-based company has been selected by LIT for the deployment and per the deal, Nokia will build a first-of-its-kind terrestrial network connecting submarine landing stations in Kenya, South Africa and DRC to create a highway with the potential to handle massive traffic across the Sub-Saharan African continent, reports say. Read more: Lusaka Times
The Auditor General’s report on the accounts of parastatal bodies and other statutory institutions for the financial year ended December 31, 2021 has revealed financial irregularities amounting to over K3 billion and US$36 million. On the other hand, the Auditor General’s report on the audit of accounts of Local Authorities for the same period has revealed irregularities amounting to over K2 billion. The report on parastatal bodies and other statutory institutions has revealed that the Electoral Commission of Zambia signed several contracts for procurement of various goods, works and services in amounts totalling US$26,850,810 which were not in compliance with the Public Procurement Act and Procurement Regulations. Read more: News Diggers
Minister of Fisheries and Livestock Makozo Chikote says his Ministry will ensure increased production of beef and other livestock products for export to Angola which has a ready market. He says the Angolan Market was secured by President Hichilema during his recent visit to that country. Mr. Chikote has called on the officers under his Ministry against frustrating the Government as it ensures the provision of extension services and empowerment of aquaculture and livestock farmers. Speaking when ha called on Northern Province Minister Leonard Mbao at his office , Mr. Chikote said the Province has a large share of natural water bodies that can be utilized to increase fish production. He says fish in the area has depleted hence the need to bring in new strategies to increase production. Read more: ZNBC
In International Business News
Seychelles has maintained its top ranking for the sub-Saharan African region in the Transparency International Corruption Perceptions Index (CPI) released on Tuesday. The island nation retained the position for the 5th consecutive year and 23rd ranking globally attained in 2022 with 70 points once again. Read more: Africa News
Tesla co-founder Elon Musk has been cleared of wrongdoing for a tweet in which he said he had “funding secured” to take the electric carmaker back into private ownership. Shareholders argued he misled them with his posts in August 2018, and they had lost billions of dollars because of them. The proposed $72bn buyout never materialised. If found liable, Musk could have been ordered to pay out billions in damages. It took the nine jurors less than two hours to reach their verdict on the class-action lawsuit on Friday afternoon. Read more: BBC News
The FTSE 100 stock index has closed at a record high, lifted by investors betting that a weak pound will help UK firms abroad and that the worst of the cost of living crisis has passed. The index of the UK’s biggest publicly listed companies gained more than 1%, to end the day at 7,901.8 points. That was the highest level in almost five years, passing the previous closing record set in May 2018. The milestone follows years of the UK lagging other big financial markets. Read more: BBC News
China’s finance minister and its central bank governor will attend a roundtable with other creditors and some borrowing countries in February in India, IMF Managing Director Kristalina Georgieva said in a CBS 60 Minutes interview on Sunday. “China has to change its policies because low income countries cannot pay,” she said. “What we are working towards is to bring all creditors, the traditional creditors from advanced economies, new creditors like China, Saudi Arabia, India, as well as the private sector, and put them around the table with the debtor countries.” Read more: CNBC
Updates From The 2023 Cape Town Mining Indaba Sponsored By
The Cape Town African Mining Indaba is underway and the Minerals Council of South Africa held its first press briefing where they indicated that they were optimistic about the prospects of the industry in 2023. Speaking to the press at the Standard Bank South Africa Stand, the executives from the Council believe the headwinds in the global economy continue to impact the industry. Read more
OPENING REMARKS BY THE HONOURABLE MINISTER OF MINERAL RESOURCES AND ENERGY MR GWEDE MANTASHE: Allow me to take this opportunity to welcome you to South Africa, a mining destination of choice with a history of mining spanning over 150 years. This is an industry which has over the years been the backbone of South Africa’s economy and continues to be the flywheel of our economy. The year 2022 has been a difficult year for the World and Africa in particular. It is a year in which international and domestic factors negatively affected mining production and mineral sales. International factors included soaring energy prices due to the ongoing geopolitical dynamics, whereas domestic factors included the ongoing power supply disruptions (loadshedding) and the logistical bottlenecks on our railways and ports. Read more
Finally, Capital Markets News
In the fourth week of January 2023, there were thirteen company securities that recorded trades of which Shoprite Holdings was the highest priced security. Trading activity was recorded in AECI Mining Explosives, Bata, Copperbelt Energy Corporation Zambia, Chilanga Cement, Madison Financial Services, Shoprite Holdings, Taj Pamdozi Hotels, Real Estate Investment Zambia, Standard Chartered Bank Limited, Zambian Breweries, Zambeef, Zanaco And Zambia Sugar as well as CEC Africa Investment on the quoted tier. The LuSE All Share Index (LASI) closed at 7,222.94 points. The market closed on a capitalization of K72,371,854,623.44 including Shoprite Holdings and K37,589,169,183.44 excluding Shoprite Holdings. Read more
In 204 trades recorded on Friday, 214,053 shares were transacted resulting in a turnover of K436,961.02. A share price gain of K0.08 was recorded in Zambeef and share price losses of K0.10 and K0.01 were recorded in Standard Chartered Bank Limited and Zanaco respectively. Trading activity was recorded in CEC Zambia, Chilanga Cement, National Breweries, Zambia Breweries, Zambia Sugar and ZAFFICO. The LuSE All Share Index (LASI) closed at 7,226.74 points down by 0.50% from its previous close of 7,262.83 points. The market closed on a capitalization of K72,388,368,505.24 including Shoprite Holdings and K37,605,683,065.24 excluding Shoprite Holdings.
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