Good afternoon. Here’s what you need to know
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ERB Rejects 156% ZESCO Tariff Hike
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Bank of China President Liu Jin resigns
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Global refined copper surplus swells in first half of 2024
In Local Business and Finance News
Zambia’s energy regulator refused the state power utility’s proposal to increase electricity tariffs by as much as 156% to cover the cost of emergency supplies, citing the negative impact it would have on inflation and jobs. The application from Zesco presented an “impossible” way of raising its required revenues, Energy Regulation Board Chairman James Banda said Friday, adding his organization would work with the utility to find an alternatives to fund pricey power imports. The decision denies Zesco an extra $42 million it would earn over three months from customers including households, malls and factories. While it avoids the price pressures that the tariff increase would have brought, the rejection could amplify Zambia’s electricity shortage. Where consumers dodge bigger power bills, they face heightened supply shortages. Read more: MoneyWeb
ZESCO Limited has accepted the Energy Regulation Board’s (ERB) decision to reject its request for a tariff adjustment during the current emergency period. Corporation spokesperson, Matongo Maumbi, explained that the proposed adjustment was intended to secure additional power supplies amid Maamba Collieries Limited’s scheduled annual maintenance. This acknowledgment was contained in a statement issued in Lusaka on Saturday. “The critically low water levels at Kariba Dam also posed a risk of power plant shutdown,” Maumbi stated. He added that the Corporation is still analyzing the details of the ERB’s decision and assessing its potential impact on operations. “As ZESCO continues to navigate this power crisis, the Corporation remains committed to employing all available mitigating measures,” he mentioned. Read more: Zambia Monitor
Zambia has reportedly recorded US$8.9 billion in actualised investments over the past three years. The Zambia Development Agency (ZDA) disclosed this information at a press briefing on Friday, noting that the figure is part of the US$54 billion in committed investments for the period from 2021 to 2024. According to ZDA Director-General, Albert Halwampa, the $8.9 billion was actualised by 440 companies out of the 1,048 registered during this period. He explained that the actualised investment exceeded the committed value of US$7.9 billion from the responding companies, representing a 113 percent actualisation rate. “Data from the remaining 608 companies is still pending due to slow responses. Once all the data is received, we will communicate the final actualized investment figure accordingly,” Halwampa stated. It was reported that the mining sector emerged as the top contributor, accounting for US$3.34 billion, which represented 34.91 percent of the total actualised investments. Read more: Zambia Monitor
Vice-President Mutale Nalumango has affirmed her government’s determination to unlock all barriers affecting the key sectors of the economy. And Standard Chartered Bank CEO Sonny Zulu says the newly refurbished Addis Ababa round about is not a shrine. Speaking when she officiated the launch of the newly refurbished Addis Ababa round about by Standard Chartered Bank on Saturday, Vice-President Nalumango said government remained firmly committed towards creating a conducive business environment. Read more: News Diggers
In International News
The world’s surplus of refined copper quadrupled in the first half of 2024 compared to a year ago following a growth in production and recovery in mine output, preliminary data from the International Copper Study Group (ICSG) shows. According to the group’s August 2024 bulletin, global mine production grew 3.1% during the January-June period, benefiting a recovery from constrained output, mainly in Chile, Indonesia and the US, as well as additional production from mine projects in the Democratic Republic of the Congo. Mine output in Chile, the world’s No.1 copper mine producer, increased by 2.4% for the six-month period, but remains 4.5% below the average first half production level of the last five years, ICSG’s data shows. Read more: Mining
United States Federal Reserve Chairman Jerome Powell has offered an explicit endorsement of interest rate cuts, saying further cooling in the job market would be unwelcome and expressing confidence that inflation is within reach of the central bank’s 2 percent target. “The upside risks to inflation have diminished. And the downside risks to employment have increased,” Powell said on Friday in a highly anticipated speech at the Fed’s annual economic conference in Jackson Hole, Wyoming. “The time has come for policy to adjust. The direction of travel is clear, and the timing and pace of rate cuts will depend on incoming data, the evolving outlook and the balance of risks.” Read more: Al Jazeera
The World Bank has reportedly suspended Liberia’s access to crucial funding after the country defaulted on its payment obligations for 60 days. This suspension, which took effect on August 15, 2024, could significantly derail development projects as the government contended with austerity measures and a recast national budget, according to a report by the Liberian Investigator. The suspension prevents Liberia from withdrawing funds under active credits, Project Preparation Facility advances, Institutional Development Fund grants and other loans and grants managed by the World Bank. The freeze on funding exacerbates Liberia’s financial difficulties and could halt vital infrastructure, agriculture and energy projects already weakened by budget cuts. Michael Sahr, the World Bank’s External Affairs Officer, reportedly confirmed the decision to the Liberian Investigator, expressing optimism that Liberia would clear its overdue payments to resume project financing. Read more: Zambia Monitor
Bank of China Vice Chairman and President Liu Jin resigned for personal reasons effective on Sunday, the bank said. The state-owned lender said in a statement that its board had approved Chairman Ge Haijiao to serve as acting president. Liu, 57, has held senior roles at major Chinese banks, including ICBC[ ICBCA.UL] and China Development Bank. He served as president of China Everbright Bank before joining Bank of China as vice chairman and president in 2021. Read more: CNBC
Finally, Capital Markets News
In 138 trades recorded on Friday, 182,488 shares were transacted resulting in a turnover of K3,010,915.68. The following price changes were recorded on Friday: +K0.86 in CEC Zambia, +K1.00 in Bata, -K0.01 in Zambeef and -K0.03 in ZANACO. Trading activity was also recorded in Airtel, British American Tobacco Zambia, Chilanga Cements, Madison Financial Services, Standard Chartered Bank Limited, Zambia Breweries, ZANACO, ZCCM, Zambia Sugar and CEC Africa on the quoted tier. The LuSE All Share Index (LASI) closed at 14,869.32 points, 2.19% higher than its previous day close at 14,550.15 points. The market closed on a capitalization of K118,695,024,676.11 including Shoprite Holdings and K75,216,667,876.11 excluding Shoprite Holdings.
10 Govt Bond trades with total quantity K51,054,000 and turnover K44,382,770 were processed Friday.
