Good morning. Here’s what you need to know to start your day.
-
Tanzania and Zambia discuss security and new gas pipeline in key meeting
-
US, China pledge ‘healthy’ economic ties as Yellen visits Beijing
-
Christelle Supparayen-Romeo resigns from British American Tobacco Zambia’s board
Story of the Day
Many have often pointed out that significant people in Zambia seldom tell their stories. Credit to those that have. They have given insight into a part of their lives that has not only offered clarity if one were in doubt, but have left a vital piece of contemporary history that must never be forgotten. One would think the latter when reading the recently republished memoir of a person that can only be described as a pioneer of big mining in Zambia. In his first book, Things to Remember: Not to forget, a reader encounters a book that provides a personnel reflection of a humble man with an extraordinary past rose to the helm of Zambian mining in what many would recall the glory days. The book which is fondly dedicated to his grandchildren, has the former CEO of the Zambia Consolidated Copper Mines Limited, ZCCM or ZCCM IH as it is known today has the author also dedicated to their peers in Zambia, throughout Africa and the world over. The source of this gesture is very clear when the reader encounters the first chapter “A long journey, an abrupt end” which tells the story of the young Zambian who had the privilege to meet and attend school with notable freedom fighters not only in Zambia, but in several other countries whose status at the time was analogous in struggle to that of Zambia. Read more
In Local Business News Sponsored by
Tanzania and Zambia discussed the construction of a new gas pipeline as they they met to discuss the security and extension of the Tanzania-Zambia Mafuta (Tazama). The representatives from Tanzania present at the meeting included Tanzania’s Home Affairs Minister Hamad Yussuf Masauni and Defense Minister Innocent Bashungwa, according to Tanzania’s Energy Minister January Makamba. On the other end, Ambrose Lufuma, Zambia’s minister of defense, Jacob Mwiimbu, the minister of home affairs and internal security, and Peter Kapala, the energy minister, served as Zambia’s representatives. Mr. Makamba informed the media that the two nations’ decision to begin transferring refined oil rather than crude oil prompted the discussion on the pipeline’s safety and security. Read more: Business Insider
Small and Medium Enterprise Minister Elias Mubanga says the successful debt restructuring by government should enable banks and other financial institutions to consider reducing interest rates. Mr. Mubanga says the current interest rates are high for most Small and Medium Enterprises -SMEs. Speaking during the launch of the CEEC 2022-2026 strategic plan, Mr. Mubanga urged financial institutions to work with Government towards improving access to finances for SMEs. Read more: ZNBC
Barrick Gold Corporation has announced plans to transform Lumwana Copper Mine into a Tier One asset with a mining life exceeding beyond 2060. A Tier One asset is one that has a reserve potential greater than five million tonnes of copper. The mine currently has 2.3 million tonnes of copper in its reserves. Barrick Gold Corporation President and Chief Executive Officer Mark Bristow says Barrick re-focused its strategy in Africa in 2019 making Lumwana Mine a key element in the expansion of its strategic copper portfolio. Speaking during a press briefing at Lumwana Mine in Kalumbila District, Mr. Bristow said the country is in a much better position economically following the debt restructuring. Read more: ZNBC
President Hakainde Hichilema’s special advisor on investment and economic affairs, Jito Kayumba, says the government is working on measures to create a strong local mining content policy to enable the country to benefit beyond taxation. Since the coming in of the United Party for National Development (UPND) in power about two years, some stakeholders have been accusing the ruling party of bending the law to benefit foreign interests in the mining sector. But Kayumba told journalists in an interview in Chililabombwe on Thursday that the government wants Zambians to benefit beyond taxes and owning significant stakes in the mines. “The Mining and Mineral Act review will enhance local mining benefits, you have seen that since coming to power, the government has been pushing for local content beyond mining supply where locals hold stakes in the mines while promoting mineral trading,” he said. Read more: Zambia Monitor
American Ambassador to Zambia, Michael Gonzales, says growth in the mining sector has been hampered by policy inconsistencies under the previous governments. Gonzales told Zambia Monitor that this had been scaring away American investors and others from investing in the sector as it proved to be unstable, resulting in the country not reaching the desired production levels. He said the country had seen a stagnation in terms of production of between 700,000 metric tonnes to 800,000 metric tonnes annually, and these could have increased with policy consistency in the sector. Gonzales was hopeful that the New Dawn Administration will bring policy consistency in the mining sector in order to attract more investors, which will result in increased production levels. Read more: Zambia Monitor
Situmbeko Musokotwane, the Finance and National Planning Minister of Zambia, has arrived in Sal Island, Cape Verde, to participate in the 2023 IMF and World Bank Africa Caucus. The conference aims to explore new modalities and mechanisms for financing economic development in Africa, with a specific focus on public debt as a financing instrument for growth, climate finance, energy, and private sector development. Upon their arrival, Minister Musokotwane and his delegation were warmly received by members of the Local Organizing Committee. Joining him at the caucus are Mulele Maketo Mulele, the Director of Economic Management at the Ministry of Finance and National Planning, and Isaac Muhanga, the Director of Financial Markets at the Bank of Zambia. This two-day event, scheduled from July 6th to 8th, 2023, has attracted delegates, speakers, and experts from across Africa, as well as representatives from the International Monetary Fund (IMF) and the World Bank Group (WBG). Read more: Lusaka Times
Bank of Zambia Exchange Rates
| Currency | Buying | Selling |
|---|---|---|
| USD | 18.0041 | 18.0519 |
| GBP | 22.9768 | 23.0414 |
| EUR | 19.6280 | 19.6874 |
| ZAR | 0.9430 | 0.9462 |
In International Business News
The United States and China are not seeking to weaken their economic ties despite ongoing disputes, US Treasury Secretary Janet Yellen and her Chinese counterpart have said as Yellen held a series of meetings with leaders in Beijing. The world is big enough for both the United States and China to thrive, US Treasury Secretary Janet Yellen said Sunday as she wrapped up a visit to Beijing aimed at stabilizing the relationship between the world’s two largest economies. Yellen said she had “direct, substantive, and productive” talks with China’s new economic leadership, including Premier Li Qiang and Pan Gongsheng, the newly appointed Communist Party chief of China’s central bank. “No one visit will solve our challenges overnight. But I expect that this trip will help build a resilient and productive channel of communication,” Yellen told a news conference in Beijing. Read more: CNN
A latest report by the African Export-Import Bank (Afreximbank) has shown that hard currency bond issuances by African countries plummeted to US$6 billion in 2022. The report titled “Africa’s 2023 Growth Prospects: Securing Growth Resilience in a Polycrisis World,” sheds light on the formidable challenges facing emerging markets and developing economies amidst tightened global financial conditions. The report unveils a broader trend where the currencies of many developing nations depreciated against the United States (U.S) dollar in 2022, exacerbating concerns around inflationary pressures. The devaluation of local currencies serves as a double-edged sword, compounding inflationary challenges and further dampening economic growth prospects. Read more: Zambia Monitor
The world’s largest diamond company, De Beers has struck a last-minute deal with the government of Botswana to hand over a larger share of diamonds produced in the country, further loosening the country’s chokehold on the global gem market. The agreement, which concluded just as the deadline for a deal expired, holds huge implications for Botswana’s diamond-dependent economy and the global diamond supply chain. President Mokgweetsi Masisi of Botswana has persistently criticised the longstanding agreement, demanding greater benefits for his country, including a larger allocation of the locally produced gems. Under the new terms, Botswana’s state-owned diamond trader will now receive 30% of the output from Debswana, the De Beers unit responsible for approximately two-thirds of the company’s annual production. Moreover, the government disclosed that there is a tentative agreement to potentially increase its share to as high as 50% in the future. Read more: Yahoo Finance
Nigeria plans to boost its tax-to-GDP ratio to at least 18 percent in three years, part of a push to curb its reliance on borrowing to finance public spending, its presidency said in a statement on Friday. Africa’s largest economy has embarked on its boldest reform agenda in decades, including the removal of a popular but costly petrol subsidy and restrictions on foreign exchange trading, a gamble by President Bola Tinubu to boost sluggish growth and reset the economy. The government has set up a committee to reform Nigeria’s tax system, which suffers from high levels of evasion, enhance collection efficiency and remove barriers impeding business growth as it tries to widen the tax base and achieve the target. “Our aim is to transform the tax system to support sustainable development and achieve a minimum of 18% tax-to-GDP ratio within the next 3 years without stifling investment or economic growth,” Zacch Adedeji, a presidential adviser on revenue, said in the statement. Read more: Al Jazeera
In accordance with Section 3.59 of the Lusaka Securities Exchange Listings Requirements (“LuSE Listings Requirements”), the Board of Directors of British American Tobacco (Zambia) Plc (“the Company” or “BATZ”) (the “Board”) wishes to announce the resignation of Mrs. Christelle Supparayen-Romeo as Director of the Board effective 30th May 2023. Read more
In 59 trades recorded in Friday 1,958,348 shares were transacted resulting in a turnover of K5,005,595.33. A share price gain of K0.01 was recorded in CEC Zambia and a share price loss of K0.01 was recorded in Zanaco. Trading activity was also recorded in AECI, BAT Zambia, Chilanga Cement, Standard Chartered Bank Limited, Zambia Breweries and Zambeef. The LuSE All Share Index (LASI) closed at 8,231.98 up by 0.01% from its previous close of 8,231.57 points. The market closed on a capitalization of K76,764,000,594.85 including Shoprite Holdings and K41,981,315,154.85 excluding Shoprite Holdings.
Picture of the Day
