Good afternoon. Here’s what you need to know
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Hichilema pledges transformation of Mansa, Kasama, Nakonde airports
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COP29 Ends with $300 billion climate deal
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Zimbabwe seeks debt restructuring to unlock funding and rebuild economy
In Local Business and Finance News
President Hakainde Hichilema has vowed to upgrade Mansa, Kasama, and Nakonde airports to international standards to boost economic development in the regions. Speaking during the Kwabuka Traditional Ceremony in Mansa on Sunday, he emphasized his vision to turn Luapula into an economic hub. “We will transform Mansa, Kasama, and Nakonde into international airports to help the region achieve significant economic growth. For the first time, Mansa Airport will become an international facility,” said President Hichilema. He added that the “Northern Corridor,” including Mansa, Kasama, Mbala, and Nakonde, would be revamped to create key infrastructure supporting economic activity. Read more: Zambia Monitor
The World Wide Fund (WWF) for Nature Zambia has highlighted the need for innovations in renewable energy, such as biogas, solar panels, wind turbines and hydroelectric systems to revolutionaries the energy sector in the country. WWF Zambia Country Director. Nalucha Ziba, said the technologies provide clean and sustainable alternatives to fossil fuel-based energy sources, reducing Green House Gas emissions and promoting a transition to low Carbon economy. Ziba said this during the Pachipandq Innovation Challenge Pitch Day held at the Zambia Centre for Accountancy Studies (ZCAS) in Lusaka on Saturday. She noted the need for innovations in green building materials and construction techniques which focus on improving energy efficiency, reducing Carbon emmissions, and enhancing sustainability. “Examples include the use of recycled materials, green insulation, and energy efficient designs that minimize the environmental impact of buildings,” Ziba stated. She observed the need to have climate smart agricultural practices and technologies such as precision agriculture techniques-resistant crop varieties, agroforestry systems, and water efficient irrigation methods that aim to enhance agricultural productivity. Read more: Zambia Monitor
President Hakainde Hichilema says government will invest more in the aquaculture sector in Luapula Province to increase fish production for the country. President Hichilema says Luapula Province has the potential to produce enough fish for local consumption and export. Speaking when he met various stakeholders in Chief Matanda’s area in Mansa District this morning, President Hichilema said government will invest in fish cages on water bodies of Luapula Province. He added that the water bodies which have been depleted will be restocked with fish. President Hichilema said government wants Luapula Province to play a huge role in making the country self sufficient in fish. He said government will also invest in agriculture in the area by bringing centre pivots. President Hichilema said Luapula Province has water and good soil which can support agriculture. Read more: ZNBC
On March 29, 2016, the government signed a US$45 million loan agreement with the African Development Bank (AfDB) to finance the Cashew Infrastructure Development Project (CIDP). The project became effective on August 4, 2016, and was set to be undertaken over five years, concluding on June 30, 2022. However, on June 1, 2022, the period was extended to June 30, 2023, to ensure the completion of infrastructure projects, which ended on December 31, 2023. According to the 2023 auditor’s report, the total project cost was US$55.42 million, with USD 45 million financed by the AfDB loan (81.2%), the government counterpart funding of US$8.31 million (15.0%), and community or beneficiary contributions of US$2.11 million. The report also indicated that at the beginning of CIDP, a target of improved household income of US$710 per household per year was set. However, during the period under review, income levels were 34% below the target. The report further revealed that the failure to achieve income levels was attributed to the non-export of cashew nuts, as the target outcomes could only be reached when the crop attained peak production age. During the period under review, CIDP set a target to increase the average cashew tree crop yield from 200 kg/ha in 2017 to 800 kg/ha in 2023. However, as of December 31, 2023, yield levels were at 440 kg/ha, which was 45% below the target. Read more: Zambia Business Times
The Mobile Money Transaction Levy Bill has passed the second reading stage in the National Assembly after a majority of parliamentarians voted in the affirmative. The Mobile Money Transaction Levy Bill came up for reading, Friday. After voting, the Bill was read a second time after which Speaker of the National Assembly Nelly Mutti indicated that the committee stage would be taken on 28th November, Thursday. Three members of parliament had debated the Bill, whose objectives, among others, are to provide for the maintenance of records of mobile money operations, provide inspections for mobile money transactions and to repeal and replace the mobile money transaction levy Act No.16 of 2023. Read more: News Diggers
In International News
Richer countries have promised to raise their funding to help poorer countries fight climate change to a record $300bn a year, but the deal has come under criticism from the developing world. The talks at the UN climate summit COP29 in Azerbaijan ran 33 hours late, and came within inches of collapse. The agreement falls well short of the $1.3tr developing countries were pushing for. The African Group of Negotiators described the final pledge as “too little, too late”, while the representative from India dismissed the money as “a paltry sum”. Developing countries dismissed as “a joke” an offer on Friday (22 November) by wealthy industrialised nations including the EU, US and Japan of $250bn a year from 2035. Around 3pm today, a revised proposal saw the offer raised to $300bn according to civil society observers who were in the room. The ‘least developed countries’ (LDCs) group promptly declared that was unacceptable before the Alliance of Small Island States (AOSIS) joined them in walking out. They later clarified that they hadn’t given up on the finance talks entirely but it was evident their patience was wearing thin. The G77+China group, which comprises most of Latin America, Africa and Asia, had signalled it would accept a headline figure of $500bn for the ‘new collective quantified goal’ (NCQG) intended to replace the current $100bn annual financing target. But this appears to have been beyond the pale for the wealthy Western nations. Read more: BBC News, Euro News & Reuters
Zimbabwe’s President Emmerson Mnangagwa hosted creditors and finance executives on Monday to discuss plans for clearing the country’s $12.7 billion external debt and restructuring arrears. With the nation’s debt representing 81% of its GDP, the task is daunting for a country with a history of financial crises, including hyperinflation and failed currency reforms. Mnangagwa revealed that Zimbabwe is negotiating a Staff Monitored Program (SMP) with the International Monetary Fund (IMF), which would pave the way for key policy reforms. African Development Bank (AfDB) President Akinwumi Adesina expressed the AfDB’s readiness to provide financial support for these reforms and help clear arrears. Finance Minister Mthuli Ncube said timelines for debt restructuring would be clearer by mid-2025, once Zimbabwe secures bridge financing from lenders. Analysts warn that addressing arrears is crucial for the country’s economic recovery, as Zimbabwe currently cannot access funds from the IMF due to its debt situation. Clearing arrears with major creditors, including the AfDB, World Bank, and European Investment Bank, is key to unlocking future funding. The IMF has been unable to provide financial support due to Zimbabwe’s unsustainable debt. Read more: Africa News
Nigeria’s economy grew faster than anticipated in the third quarter, buoyed by its services and oil sectors. Gross domestic product expanded an annual 3.46% in the three months through September, compared with growth of 3.19% in the previous quarter, according to data released by the Abuja-based National Bureau of Statistics on Monday. The median estimate of six economists in a Bloomberg survey was 2.86%. The oil sector grew 5.17% as production increased to 1.47 million barrels per day, from 1.45 million barrels a year earlier, as it addresses security concerns and aging infrastructure, The sector is expected to receive a further boost from the start of gasoline production at Nigerian billionaire Aliko Dangote’s mega oil refinery in September, and an increase in its processing rate to 420,000 barrels per day, as well as new fields coming online. The 2025 budget to be presented by President Bola Tinubu on Nov. 27 assumes crude output increasing to 2.06 million barrels a day and an oil price of $75 per barrel, which if achieved, may further lift growth. Read more: Bloomberg
China on Monday kept its medium-term lending rate steady, as the country’s central bank seeks to stabilize the yuan which has come under pressure following Donald Trump’s victory in the U.S. presidential election. The People’s Bank of China kept the medium-term lending facility rate unchanged at 2.0% on 900 billion yuan ($124.26 billion) worth of one-year loans to some financial institutions, according to the bank’s official statement. “It is a well-expected move, given that the market liquidity [has] remained ample,” said Bruce Pang, chief economist and head of Research, Greater China at JLL, citing PBOC’s move in October that injected 500 billion yuan into the banking system. Keeping the MLF rate intact allows for “greater policy maneuverability” given the change in U.S. administration, at a time when commercial banks’ net-interest-margins have remained tight, Pang added. Read more: CNBC
Finally, Capital Markets News
In 111 trades recorded on Friday, 67,547 shares were transacted resulting in a turnover of K1,356,906.12. The following price changes were recorded today: -K0.01 in Airtel, -K0.01 in CEC Zambia and +K0.06 in Zambia Sugar. Trading activity was also recorded in Chilanga Cement, Madison Financial Services, National Breweries, PUMA, Standard Chartered Bank Limited, Zambia Breweries, ZCCM, Zambeef, Zambia Reinsurance, ZANACO as well as CEC Africa and Pamodzi on the quoted tier.
The LuSE All Share Index (LASI) closed at 15,828.65 points 0.00% higher than the previous trading day close. The market closed on a capitalization of K205,822,678,589.76 including Shoprite Holdings and K80,824,107,066.92 excluding Shoprite Holdings.
