Story of the Day
Zambia’s Finance Minister Situmbeko Musokotwane has advised that the Public-Private Partnership Act of 2009 will be repealed and replaced, according his 2023 Budget speech. Although the minister did not provide specifics of what the new Bill that will be presented to parliament that will lead to the enactment of a new PPP Act, the hope is that it will make the PPP process seamless. Confidence in this is due to the fact that Government has formalized its relationship with private sector. “Madam, to further strengthen collaboration between the public and the private sector, Government launched the Public Private Dialogue Forum with the support of Cooperating Partners”. Read more
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The Zambian government said in a presentation to investors on Friday that it hoped it would agree debt relief terms with official creditors by the end of the year or early 2023. Zambia was the first African country to default during the COVID-19 era as it struggled with debt that reached 133% of GDP at the end of 2021. The presentation, made to holders of Zambia’s three Eurobonds, said that a present value reduction of $6.3 billion, or 49% of the external debt being restructured, was needed by 2027, to meet targets set by the International Monetary Fund last month. Read more: Reuters
North-Western Chamber of Commerce And Industry president, Mukumbi Kafuta has appealed to government to remove bottlenecks affecting trade between Zambia and the Democratic Republic of Congo(DRC). Mr Kafuta says DRC is a potential market for agro products but that small and medium enterprises are finding it difficult to take products to the neighbouring country. He said government should come up with aggressive ways that will help SMEs penetrate the Congolese market and stimulate growth and job creation. Read more: Lusaka Times
The National Savings and Credit Bank -NATSAVE has started disbursing K10m to Small and Medium Enterprises in an effort to boost their businesses countrywide. This follows the signing of a Memorandum of Understanding between the bank and the Zambia Credit Guarantee Scheme which was presided over by Finance Minister Situmbeko Musokotwane a few days ago. NATSAVE Chief Executive Officer Malcom Chabala says the funding is aimed at growing small businesses across the country so that they can graduate into large enterprises. Read more: ZNBC
The copper currency, the kwacha, gave September manufacturing pulse a positive cue as input costs ebbed. According to markit economics latest readings, factory activity as measured by the purchasing managers index firmed 0.5 points to 50.5 in the month of September supported by a firmer local currency. Fifty (50) sets the benchmark for expansion (>50) and contraction (<50). Read more: The Business Telegraph
International Business and Finance
FNB has today at a launch event held at its head offices in Johannesburg announced the reimagining of its help and iconic acadia tree logo as it strives to make every day easier and tomorrow better for all its customers, taking a bold step forward on its journey into the future. Read more: Zambian Business Times
Kwasi Kwarteng will set out his plan for balancing the government’s finances on 31 October, nearly a month ahead of the original date. The fiscal statement is expected to detail how the chancellor intends to pay for £43bn of tax cuts as well as plans to reduce debt. An independent forecast of how the economy will perform in coming years will be published at the same time. Mr Kwarteng had previously insisted he would announce plans on 23 November. Read more: BBC News
The Nigerian minister of finance budget and national planning, Zainab Ahmed, has revealed that the department needs $2.3 trillion to fix the infrastructure problem in the country. The minister made this announcement while addressing the attendants at the Integrated Infrastructural Research for Development conference, which was held in Abuja on Friday. The proposed plan entails a 21-year rebuilding scheme that targets train tracks, roads, housing, and agriculture. During the event the minister on the relevance of modernization and industrialization, noting that they are necessary for building the foundation of a better society for future generations. Read more: Business Insider
Chinese chip stocks fell Monday after the U.S. announced new export controls aimed at limiting Beijing’s ability to produce advanced military systems. The sweeping rules mean companies must apply for a license if they want to sell certain advanced computing semiconductors or related manufacturing equipment to China, the U.S. Department of Commerce’s Bureau of Industry and Security (BIS) said in a release Friday. Read more: CNBC
Capital Markets Report
In 104 trades recorded on Friday, 19,112 shares were transacted resulting in a turnover of K74,054. Trading activity was recorded in AECI, Copperbelt Energy Corporation, Standard Chartered Zambia, Zambia Breweries, Zambeef, Zanaco, Zambia Suagr and CEC Africa on the quoted tier. The LuSE All Share Index (LASI) maintained its close at 7,229.31 points, as there were no share price movements. The market closed on a capitalization of K72,399,557,541 including Shoprite Holdings and K37,616,872,101 excluding Shoprite Holdings.