Good afternoon. Here’s what you need to know
- Zambia’s copper output may rise to 1mt by 2026 as mines expand
- ZRA Beats Revenue Collection Target in Q1
- Zimbabwe launches new “ZiG” currency
In Local Business and Finance News
Zambia’s copper output could rise to about 1 million tons by 2026, boosted by investment in expanding production at mines including those owned by First Quantum Minerals, Finance Minister Situmbeko Musokotwane said on Friday. Production could also get a boost from Mopani Copper Mines, which recently secured a new investor, and the revival of Konkola Copper Mines (KCM) after the state resolved an ownership dispute with Indian miner Vedanta Resources. “The two mining giants (Mopani and KCM) were out of the equation, now they are back,” Musokotwane said on Lusaka-based radio station Radio Phoenix. Ongoing investments in expanding output at First Quantum’s Kansanshi mine are also expected to support the rise in metals output, Musokotwane said. Canadian rival Barrick Gold said last year it was spending about $2 billion to drive up output at its Lumwana mine in Zambia to about 240,000 tons of copper by 2028. “So by end of 2025 to 2026, we will be producing more than a million tons of copper,” the finance minister said. Read more: Mining
The Zambia Revenue Authority (ZRA) has collected 28.4 billion kwacha in revenue in the first quarter of 2024. The collection is 339 Million Kwacha more than the targeted 28.1 billion Kwacha. ZRA Commissioner General, Dingani Banda has disclosed this in Lusaka today. This was in a presentation made on his behalf by ZRA Acting Commissioner for Business Facilitation Richard Kapasa during an Economics Association of Zambia -EAZ-Summit. Mr. Banda said ZRA is this year expected to collect 125.3-billion Kwacha through various taxes. This target is higher by 21.5 percent from last year’s 103 billion Kwacha. Read more: ZNBC
Tanzania Port Authority has revised downwards Wharfage Port Charges for containerised cargo to Zambia. The revision in charges, which is by more than 50 percent, is aimed at reducing the cost of doing business. And, Transport and Logistics Minister Frank Tayali, is happy that the Tanzania Ports Authority has moved to revise downwards the charges. Mr. Tayali says this will promote trade by serving Zambia cargo volumes through the Dar -es Salaam Port and other major ports that include Tanga and Mtwara Ports. The Minister says the move by Tanzania granted to Zambia demonstrates the huge gains that the country is poised to gain from the economic diplomacy espoused by President Hakainde Hichilema. Mr Tayali has since called upon the Zambian business community to take advantage of the gesture and grow their business. Read more: ZNBC
Zambia Postal Services Corporation (ZamPost) is facing a K2.7 million debt lawsuit for its failure to remit money deducted from the employees to a Lusaka based micro-lending company. The lawsuit, filed Tuesday in the Lusaka High Court said that ZamPost owes Rainbow capital Limited, K2,767,563, inclusive of interest from salary advances and loans advanced to the employees. According to a written agreement signed in 2022, Rainbow Capital would provide salary advances and loans to the ZamPost’s eligible employees. In the same agreement , Zampost was obligated to deduct from the employee’s payroll on a monthly basis, the salary advances and loans repayments due to the plaintiff and remit the same to Rainbow Capital in a timely manner until full and final payment of the credit facilities. “That the defendant has been deducting the monthly repayments from its employees in accordance with the agreement and despite this, the defendant has contrary to the agreement not been remitting the said deductions/repayments to the Plaintiff,” the plaintiff said. Read more: Zambia Monitor
In International News
Zimbabwe on Friday launched a new currency to replace its previous one that in recent months has been battered by depreciation, and in some instances rejection by the population. Authorities hope the new measure will halt a currency crisis underlining the country’s yearslong economic troubles. Reserve Bank of Zimbabwe Gov. John Mushayavanhu said the new currency will be called ZiG, and will be anchored on gold reserves and a basket of foreign currencies. It goes into effect on Monday. The Zimbabwe dollar has come under sustained pressure in recent weeks, making it one of the world’s worst performing currencies. Read more: Africa News
The International Monetary Fund (IMF) says it is assessing the impact of a deep drought in Africa and working on ways to provide support to the affected countries. It comes as several African countries declared national emergencies over drought. Julie Kozack, Communications Director, International Monetary Fund (IMF) said on Thursday in a press conference that the ‘IMF has over the last several years and decade seen an increased frequency of climate shocks globally’. “And Africa has been particularly hard hit by these climate shocks. And we see this, of course, happening now with these droughts in Zimbabwe, Malawi and Zambia.” Read more: Africa News
U.S. Treasury Secretary Janet Yellen said Monday that future discussions between the U.S. and China will focus on Beijing’s need to shift its policy on industry and the economy. “We intend to underscore the need for a shift in policy during these talks — building on the over two hours I spent on this topic with the Vice Premier last week,” she said in prepared remarks for a press conference Monday, as she wrapped up the fourth and final full day of her trip to China. She arrived in Guangzhou on Thursday and is set to depart Beijing on Tuesday. Yellen said her conversations with Chinese officials during the trip discussed plans Beijing had for its economy, but she did not elaborate. Yellen also declined to share what tools the U.S. might use to prevent China’s industrial policy from resulting in the loss of American jobs. She noted U.S. conversations with the Chinese would continue later this month at the International Monetary Fund and World Bank Group spring meetings in Washington, D.C. Read more: Africa News
In the space of a year, Kenya has gone from having the world’s worst-performing stock market to the best-performing. This information is according to BlackRock Inc., the world’s biggest asset manager, as seen on Bloomberg. Kenya’s inflation since January has continued to ease, alongside its currency which has gone from a steep decline to an impressive increase. The All-share stock index in Kenya’s capital city, Nairobi, saw a 49% increase in 2024, compared to the 43% decline it experienced a year prior. Emily Fletcher, co-manager of the BlackRock Frontiers Investment Trust noted that the turnaround in its stock fortunes is a result of the country’s economic policies initiated under the Ruto administration. “This volatility has created opportunity,” she said in an emailed response. “Over the past two years, Kenya has seen substantial shifts in both fiscal and monetary policy.” Read more: Business Insider
Uganda, in a bid to add domestic value to its minerals, is set to establish its first-ever tin refining plant in May 2024. The plant, which is owned by Woodcross Resources would be situated in the southwestern region of the East African country. The plant is said to have a refining capacity of over 1000 tons annually. A report by the American news outlet Reuters disclosed that the president of Uganda, President Yoweri Museveni is currently attempting to leverage the benefits of exports to the country, where many gold refineries are in operation, and Chinese-backed Sunbird Resources was just granted a license to mine limestone for cement manufacturing. As a result, the budding East African country is on the brink of commissioning its first-ever tin refining plant, as part of its endeavors to increase its productivity and add domestic value to its minerals. Reuters was informed of Uganda’s plan to establish the plant next month on Wednesday by Irene Bateebe, a senior official in the country’s Ministry of Energy and Mineral Development. Read more: Business Insider
Finally, Capital Markets News
In 204 trades recorded on Friday, 28,720 shares were transacted resulting in a turnover of K139,878.04. The following price changes were recorded Friday: +K0.01in CEC Zambia, +K0.01 in Chilanga Cement and -K 0.09 in Standard Chartered Bank Limited. Trading activity was also recorded in Airtel, Real Estate Investments Zambia, ZANACO, Zambeef and Zambia Sugar. The LuSE All Share Index (LASI) closed at 12,777.61 points, 0.23% lower than it’s previous close at 12,806.99 points. The market closed on a capitalization of K99,786,024,327.61 including Shoprite Holdings and 65,003,338,887.61 excluding Shoprite Holdings.
18 Govt Bond trades with total face value of K26,332,000 were processed on Friday, resulting in a total turnover of K21,166,240.