Good afternoon. Here’s what you need to know
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Kasenseli Gold Mine reopens
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Zambia, Eswatini sign pact to boost trade, investment ties
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South Africa Sees Breakthrough as Ramaphosa Reforms Win S&P Nod
In Local Business and Finance News
The Zambia Development Agency (ZDA) and the Eswatini Investment Promotion Authority (EIPA) have signed an agreement to strengthen business ties and promote mutual investment and trade between Zambia and Eswatini. The agreement outlined collaborative efforts to expand trade and investment, enhance institutional relations, and build capacity through shared expertise. Areas of cooperation included investment promotion, trade facilitation, and the exchange of information on trade policies, regulations, and opportunities. ZDA and EIPA would support technical exchanges, training, and partnerships, facilitating links between exporters and local markets in each country. The two agencies also plan to organize business missions, participate in trade exhibitions, and implement a sustainable strategy for capacity-building initiatives. Read more: Zambia Monitor
The Kasenseli Gold Mine, which was closed in October 2021, has officially reopened following a commissioning ceremony led by President Hakainde Hichilema in Mwinilunga, North-Western Province. Speaking at the event on Sunday, President Hichilema emphasized that major outstanding issues at the mine had now been resolved. He pointed out that the unsafe and illegal mining activities at Kasenseli had resulted in the loss of lives, prompting the government to halt operations and implement measures to ensure the resource was exploited responsibly. The President noted that prior to the closure, there was no proper accountability regarding the minerals extracted from the mine, depriving the host Chibwika chiefdom and the country of crucial revenue for development. “We want to do things the right way. Accountability must be in place as we mine. Chief Chibwika’s people did not know how much gold was being taken from here, and that was not the right way,” Hichilema said. The President directed Zambia Gold Company to invest in establishing a processing plant that would produce high-quality gold and ensure the resource was sold at a fair price. Read more: Zambia Monitor
Zimbabwe and Zambia have started updating the feasibility studies previously done on the planned US$5 billion Batoka hydropower project to be built on the Zambezi River. The power plant was designed to generate 2,400 megawatts (MW) to be shared equally between the neighbouring countries. While the two nations make frantic efforts to resolve their crippling power outages, the situation is not peculiar to them but is afflicting southern Africa as a region, including the region’s largest economy, South Africa. This comes as Zimbabwe and Zambia prepare to retender for the Batoka project contract first awarded in 2019 to GeneralElectric and Power Construction Corp of China. New bidders for the project are expected to be selected by September next year. The project will be re-tender following alleged irregularities in the initial tender process. However, construction of the plant was initially expected to begin in 2020, but faced several delays to processes, including from challenges posed by theCovid-19 pandemic and difficulties in securing funding. The Batoka project, when complete, would go a long way in improving the security of power supply in the two countries, which are both highly dependent on output from Kariba Dam. Read more: The Herald
China Zambia De Jin Xin Cement plans to invest 170 million dollars into the Zambian economy. The money will be used to construct a cement plant, a power plant, a mine and a high calcium powder plant. China Zambia Dejinxin Cement Director, Jianbao Zhao says the construction of the cement plant is expected to start next year in November. Mr Zhao says that over 1,000 jobs are going to be created during the construction stage, with over 500 permanent jobs expected to be created once operational. Mr Zhao was speaking during the signing of the Investment Protection and Promotion Agreement -IPPA-, with the Zambia Department Agency -ZDA. Read more: ZNBC
In International News
The U.N.’s climate chief called on leaders of the world’s biggest economies on Saturday to send a signal of support for global climate finance efforts when they meet in Rio de Janeiro next week, to help trigger a deal at COP29 talks. The plea, made in a letter to G20 leaders from top U.N. climate official Simon Stiell, comes as negotiators at the COP29 conference in Baku struggle for a deal intended to scale up money to address the worsening impacts of global warming. “Next week’s summit must send crystal-clear global signals,” Stiell, executive secretary of the United Nations Framework Convention on Climate Change, said in the letter. He said they should support an increase in grants and loans, along with debt relief, so vulnerable countries “are not hamstrung by debt servicing costs that make bolder climate actions all but impossible”. Read more: Reuters
A turnaround that investors have bet on in South Africa since President Cyril Ramaphosa returned to power on a mandate for reforms is coming true — at least in the nation’s credit outlook. The rand and South African bonds rallied on Monday after S&P Global Ratings raised its view of the nation to positive from stable — for only the second time in the president’s six-year tenure. The move indicated the ratings company’s next move may well be an upgrade of the credit grade. S&P’s move validates bulls who backed Ramaphosa’s government of national unity as the right recipe for carrying out tough reforms needed to pull South Africa out of an economic slowdown, burdensome debt and persistent power crisis. That optimism has already sent the nation to some of the best performances in emerging markets: its local-currency bonds have given investors 19% returns since the election, dollar bonds have yielded almost 7% and the currency carry trade posted a gain of 5.6%. “S&P’s change in South Africa’s outlook to positive, on the basis that growth could improve from here on, will likely be looked at as a relative turning point for South Africa,” said Razia Khan, chief economist for Africa and the Middle East at Standard Chartered Plc. Read more: Bloomberg
European markets are lagging behind Wall Street by a record margin after Donald Trump’s election victory pushed the region’s stocks lower and sent the euro tumbling. US stocks hit record highs after Trump secured his second term in office and are up nearly 25 per cent so far this year. But European equities have turned downwards as traders try to price in the impact of Trump’s promised tariffs on exporters. The Stoxx Europe 600 is up only marginally this year in dollar terms, and trails the S&P 500 this year by the widest margin on record, even after a Friday sell-off on Wall Street. According to analysts from Barclays, a big “Trump premium” had opened up between the two stock markets. Meanwhile, the euro has slumped to its lowest level in a year at around $1.05 — its sharpest sell-off since the 2022 energy crisis — as investors bet on a growth hit to Europe that will encourage the European Central Bank to cut interest rates more aggressively, just as US growth strengthens. “Investors fear that Europe will be in the front line of the coming trade war,” said Chris Turner, global head of markets at ING. “In the absence of European fiscal stimulus, it looks like the support is going to have to come from the ECB.” Read more: Financial Times
Nigeria’s inflation rate surged to 33.9% in October driven by high food prices, official figures showed. In September, the rate stood at 32.70%. A report by the National Bureau of Statistics showed food inflation nearly touched 40% year-on-year in October from 37.77%. The jump was attributed to a steep rise in the prices of staples such as maize, rice and cooking oil. Prices increases could trigger more intervention the central bank, which has already hiked interest rates five times this year in a bid to get inflation under control. After easing in July, volatile petrol prices and widespread flooding in the summer which washed away crop fields escalated food prices, eating away savings and driving a cost of living crisis in Nigeria. Inflation spiralled in the West African country after President Bola Tinubu ended a fuel subsidy and twice devalued the Naira. Read more: Africa News
Australia’s Resolute Mining said on Monday that it would pay $160 million to Mali’s government to help resolve a tax dispute after the West African country detained its CEO Terence Holohan and two other employees this month. Resolute has made an initial payment of $80 million as part of the settlement from existing cash reserves and will make future payments of about $80 million in the coming months from existing liquidity sources, it said in a statement. Resolute shares were down as much as 14.3% in early trading on Monday to A$0.345, the lowest since March 1. The detained employees were in Mali’s capital Bamako to hold discussions with mining and tax authorities regarding general activities related to the company’s business practices, the company said last week. Resolute is currently working with the Mali government to release the detained employees, who remain “safe and well” and are receiving support from the UK and international embassies and consulates, the miner said on Monday. Mali is one of Africa’s top gold producers and the detention of mining company employees, which have also included some senior local staff at Canada’s Barrick Gold, is becoming part of a pattern as the government seeks to extract more income from the sector. Read more: Mining
Finally, Capital Markets News
In 141 trades recorded on Friday 73,998 shares were transacted resulting in a turnover of K3,680,523.12. The following price changes were recorded on Friday: -K0.12 in CEC Zambia, +K33.00 and -K0.03 in ZANACO. Trading activity was also recorded in AECI, Airtel, Chilanga Cement, National Breweries, PUMA, Standard Chartered Bank Limited, Zambia Breweries, Zambeef, ZANACO, Zambia Sugar as well as CEC Africa on the quoted tier.
The LuSE All Share Index (LASI) closed at 15,984.74 points 0.33% lower than the previous trading day close. The market closed on a capitalization of K206,518,321,458.96 including Shoprite Holdings and K81,518,045,658.96 excluding Shoprite Holdings.
A total of 6 Govt Bond trades with a total quantity of K22,829,000 and turnover K21,677,830 were processed on Friday.
