Good morning. Here’s what you need to know to start your day.
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The Zambian economy is expected to grow by just 2.7% in 2023 from 4.7% in 2022, as contractions in mining and energy drag on growth
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StanChart to sell five sub-Saharan Africa businesses to Access Bank
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AECI Mining was the highest priced security in the first week of July
Story of the Day
Worldwide Fund for Nature (WWF) Zambia and MTN Zambia Foundation (MTNZF) are thrilled to announce the launch of the second PachiPanda Innovation Challenge in Zambia. This exciting initiative aims to encourage and support innovative solutions that address pressing environmental and societal challenges within the country. The PachiPanda Innovation Challenge is a unique platform that seeks to inspire individuals, aspiring entrepreneurs, and established innovators to come up with sustainable ideas that can have a meaningful impact on the environment and broader society. Through this challenge, PachiPanda aims to foster a culture of innovation and drive positive change in Zambia. Read more
In Local Business News Sponsored by
The Zambian economy is expected to grow by just 2.7% in 2023 from 4.7% in 2022, as contractions in mining and energy drag on growth, a budget plan released by the ministry of finance showed on Sunday. Zambia has concluded a long-delayed debt restructuring plan with the International Monetary Fund (IMF) after being the first African nation to default on its sovereign debt in 2020. This is expected to save the southern African country $7.65 billion by 2026, the IMF said in a report. The budget plan envisages the Zambian economy growing by 4.8% in 2024, 4.3% in 2025 and 5.0% in 2026 based on improvements in macroeconomic conditions and the implementation of reforms. Secretary to the Treasury Felix Nkulukusa said there was growing confidence in Zambia as the country worked to restore fiscal sustainability. The country’s overseas debt had reached $20.9 billion at the end of 2022. Budget figures show debt service payments of 117.4 billion kwacha ($6.24 billion) or 16.5% of GDP over the medium term. Read more: Reuters
Zambia’s government has shortlisted companies that have submitted binding offers for Mopani Copper Mines and wants to select a new investor by July 31, its mines minister said on Friday. Sources told Reuters last month that China’s Zijin Mining and Norinco Group, South Africa’s Sibanye Stillwater and an investment vehicle owned by ex-Glencore officials had been shortlisted in the race to buy Mopani. Mines Minister Paul Kabuswe declined to give details at a press conference on which companies had made the shortlist. Kabuswe said the government was also finalizing talks with Vedanta Resources to try to end a dispute over Konkola Copper Mines (KCM) and will likely resolve the dispute this month once one outstanding matter has been agreed. Read more: Reuters
President Hakainde Hichilema will be represented by Foreign Affairs Minister, Stanley Kakubo at the 5th Mid-Year Coordination Meeting of the African Union, the Regional Economic Communities, and the Regional Mechanisms, in Nairobi, Kenya. Zambia is attending the meeting in its capacity as Chair of COMESA. The meeting, which is to be hosted by Kenya’s President, William Ruto, will be held under the AU Theme of the Year 2023, “Acceleration of African Continental Free Trade Area (AfCFTA) Implementation”. The 5th Mid-Year Coordinating Meeting is a meeting between the Heads of State and Government, who form the Bureau of the AU Assembly, and the eight Heads of State and Government who Chair the eight RECs. The meeting is expected to assess the status of continental integration, coordinate implementation efforts of the integration process, and to harmonize AU and REC policies. Read more: ZNBC
Government says consultations on the future of TAZARA and how it should be structured will conclude by the end of the month in readiness for discussions with the Chinese counterparts. Transport and Logistics Minister Frank Tayali says government wants TAZARA to evolve into a modern and efficient transport system. Mr. Tayali says despite TAZARA having faced numerous challenges both internal and external, it has demonstrated resilience, adaptability and commitment to continue operations under difficult conditions. He has advised TAZARA management to explore new avenues for growth and diversification by expanding its services, collaborating with other transportation stakeholders, and leveraging emerging technologies to improve efficiency and customer experience. The Minister was speaking during the 47th anniversary of the commissioning of TAZARA in Kapiri Mposhi District. Read more: ZNBC
Bank of Zambia Exchange Rates
Currency | Buying | Selling |
---|---|---|
USD | 18.7111 | 18.7576 |
GBP | 24.5265 | 24.5893 |
EUR | 21.0088 | 21.0648 |
ZAR | 1.0355 | 1.0385 |
In International Business News
Standard Chartered said on Friday it has reached an agreement to sell its subsidiaries in five sub-Saharan African countries to Nigeria’s Access Bank, putting into motion a plan announced last year to divest those businesses. Standard Chartered will sell its shareholding in its subsidiaries in Angola, Cameroon, Gambia and Sierra Leone to Access. It will also sell its consumer, private & business banking business in Tanzania to Access Bank, a subsidiary of Access Holdings. Standard Chartered said in April last year that it would exit seven countries in Africa and the Middle East (AME) as it seeks to improve profits by focusing on faster-growing markets in the region. “Access Bank will provide a full range of banking services and continuity for key stakeholders including employees and clients of Standard Chartered’s businesses across the five aforementioned countries,” Standard Chartered said in a statement. Read more: Reuters
The UK has signed a deal to join a trade pact with several countries in Asia and the Pacific, including Japan and Australia. The name of this pact – CPTPP – is an unwieldy mouthful, but it’s also a new club of 500 million people the UK will be able to access. So what does it mean for the fortunes of businesses and households? The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) is a trade agreement between 11 nations: Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam. Those founding members signed the Pacific trade pact in March 2018. Between them, they generate 13% of the world’s income. The UK is the first non-founding country to join, and will be its second biggest economy after Japan. It takes the value of the new grouping to £11 trillion. Read more: BBC News
US regulators are probing artificial intelligence company OpenAI over the risks to consumers from ChatGPT generating false information. The Federal Trade Commission (FTC) sent a letter to the Microsoft-backed business requesting information on how it addresses risks to people’s reputations. The inquiry is a sign of the rising regulatory scrutiny of the technology. OpenAI chief executive Sam Altman says the company will work with the FTC. Read more: BBC News
The suspended governor of the Central Bank of Nigeria was charged after a month in detention under a court directive Thursday that officials act against the man or let him go, the secret police agency announced. Godwin Emefiele was charged after being investigated for alleged “criminal infractions,” said Peter Afunanya, spokesman for the secret police, the Department of State Services. Afunanya’s statement, however, did not specify the charges filed against Emefiele in the capital, Abuja. The police agency had in 2022 accused him of terrorism financing and economic crimes, both of which carry long jail terms. Shortly after he took office in June, new President Bola Tinubu directed Emefiele’s suspension, saying the move was related to the investigation of his office as the central bank governor and planned reforms in the financial sector. Africa News
Australia has appointed the first woman to lead the Reserve Bank of Australia (RBA) in the 63-year history of the central bank. Michele Bullock, a veteran economist at the central bank, will take over from outgoing governor Philip Lowe in September. “I am deeply honoured to have been appointed to this important position,” Bullock said in a statement on Friday. “It is a challenging time to be coming into this role, but I will be supported by a strong executive team and boards. I am committed to ensuring that the Reserve Bank delivers on its policy and operational objectives for the benefit of the Australian people.” Prime Minister Anthony Albanese described Bullock as an “outstanding economist and leader”. “Her appointment strikes the optimal balance between providing exceptional experience and expertise and offering a fresh leadership perspective,” Albanese said. Read more: Al Jazeera
In the first week of July 2023, there were eleven companies that recorded trades of which AECI Mining was the highest priced security. During the week there were only three days that recorded trades of which Friday’s equity trading was the best performing day of the week. Read more
In 84 trades recorded on Friday, 54,888 shares were transacted resulting in a turnover of K211,213.79. A share price loss of K0.01 was recorded in Zambeef. Trading activity was also recorded in AECI, Chilanga Cement, Madison Financial Services, National Breweries, PUMA, Real Estate Investments Zambia, Zambia Breweries, Zanaco and Zambia Sugar. The LuSE All Share Index (LASI) closed at 8,227.61 points, down by 0.01% from its previous close of 8,228.30 points. The market closed on a capitalization of K76,744,981,211.35 including Shoprite Holdings and K41,962,295,771.35 excluding Shoprite Holdings.