Good morning. Here’s what you need to know to start your day.
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Zambia to send debt restructuring plan to China, other creditors ‘very soon’
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Bitcoin could hit $100,000 by end-2024, Standard Chartered says
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Value Addition Key – Says Zambeef CEO
Story of the Day
The animal feed game has new products entering the market thanks to Zambeef’s subsidiary Novatek Animal Feeds. According to the subsidiary’s website, Novatek Animal Feeds is the largest animal feed producer in Zambia and has been in operation since 2008. The company produces a large variety of scientifically formulated feeds and custom mixes for all feed types, including pet food. With two production facilities located in the capital city Lusaka and one in the Central Province, Mpongwe, Novatek is strategically located with a large retail and distribution network to serve farmers all over Zambia. At this year’s Agritech 2023 edition, the company is showcasing two new products that include a new Puppy feed and fish feed. They have also rebranded their dog feed which according to the Head of Sales Robert Kanyembo indicates is an improved product offering following months of research and development. Read more
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Zambia will send its first fully-formed debt restructuring plan to China and other government creditors “very soon” the government’s legal advisors said, as it looks to capitalise on fresh momentum seen in high-level talks in recent days. Zambia has been in default since 2020 when it became one of the first major sovereign casualties of the COVID-19 pandemic, but its hopes of restructuring what is over $18 billion of debt have been hampered by the concerns of its main creditors, including China, about the scale of relief required. Read more: Reuters
The energy regulator in Africa’s red metal hotspot Zambia has approved the power utility’s application to increase electricity tariffs. This is contained in a press statement issued on April 21 by the Energy Regulation Board (ERB) after a review of the state owned utility ZESCO Ltd.’s performance between 2018 to 2022. The power generator had in January 2023 applied to revise its tarriffs by an average of 37%, 9%, 15%, 10% and 14% for the years 2023, 2024, 2025, 2026 and 2027 respectively. Grappling with negative jaws for which two cost of service studies were conducted, with the last being by London’s Energy Market Regulatory Consultants (EMRC) which green paper revealed a plethora of actions needed to improve operations at the utility, the energy generator has sought ways to support its cash flow position. Read more: The Business Telegraph
Finance Minister, Situmbeko Musokotwane says the International Monetary Fund -IMF- has delayed releasing the $188m support to Zambia because of the holdup by the country’s creditors to sign a Memorandum of Understanding-MoU. Dr. Musokotwane says the MoU is meant for creditors to assure the IMF of their support to Zambia. Addressing the media in Lusaka today on the 2023 spring meetings, Dr. Musokotwane however said the funds could not be secured as the creditors have not signed the MoU despite Zambia having done all that is required. Read more: ZNBC
The National Pensions Scheme Authority (NAPSA) partial withdrawal programme will have a positive impact on the economy, as it will inject funds into circulation, says First National Bank (FNB) Zambia. The bank has also unveiled mobile bank to get closer to the public and drive the financial inclusion agenda. On the mobile bank, she said it was part of the commemoration of the World innovation and creativity day. Musambo said they are a digital bank and had unveiled banking on wheels to take the services closer to the people and accelerate financial inclusion. She said anywhere the truck would park it could operate such a branch one can deposit, open an account and withdraw among others. Musambo said this is part of the enhancing financial inclusion and literacy among the people in the communities. Read more: Zambia Monitor
Zambia’s Annual cobalt production has hit a 251 tons in 2022, according to official data released by the Ministry of Mines and Minerals Development. The number represents a 2% jump compared to 247 tonnes produced in 2021. Cobalt production had dwindled after the international prices collapsed. According to mineral production figures obtained from the Ministry of Mines and Minerals Development, the country’s cobalt production stood at a paltry 251 metric tonnes in 2022, 247 in 2021, 315 in 2020, and 878 in 2019. Read more: Zambian Business Times
FEIRA constituency Member of Parliament, Emmanuel Tembo says Mwembeshi Resources Limited the company which has been given a license to do copper mining in the Lower Zambezi national park is expected to commence production before end of this year. Speaking in an exclusive interview with the Zambian Business Times – ZBT – Tembo said preparations towards the commencement of the actual mining have advanced with the first production expected this year. The ruling UPND government’s decision to go ahead and implement the historical approval, which the immediate former ruling party PF government had approved the opening of an open pit mine in the lower Zambezi national park, has raised concerns with environmental experts calling on the government to halt the planned mining. Read more: Zambian Business Times
Bank of Zambia Exchange Rates
| Currency | Buying | Selling |
|---|---|---|
| USD | 17.4270 | 17.4770 |
| GBP | 21.6373 | 21.7064 |
| EUR | 19.1435 | 19.2055 |
| ZAR | 0.9604 | 0.9636 |
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Top cryptocurrency bitcoin could reach $100,000 by the end of 2024, Standard Chartered said on Monday, saying that the so-called “crypto winter” is over. Bitcoin could gain from factors including recent turmoil in the banking sector, a stabilisation of risk assets as the U.S. Federal Reserve ends its rate-hiking cycle and improved profitability of crypto mining, Standard Chartered’s head of digital assets research Geoff Kendrick said in a note. “While sources of uncertainty remain, we think the pathway to the USD 100,000 level is becoming clearer,” Kendrick wrote. Bitcoin has rallied so far this year, rising above $30,000 in April for the first time in ten months. It gains represent a partial recovery after trillions of dollars were wiped from the crypto sector in 2022, as central banks hiked interest rates and a string of crypto firms imploded. Read more: Reuters
To promote private sector engagement and access to trade data, the East African Community (EAC) intends to digitize all import tariffs. The action is an aspect of a plan by the World Customs Organization to improve the effectiveness and accessibility of trade for local companies. With the use of the digital platform, which is being created in association with Global Trade Solution, EAC Common External Tariffs (CET) would be migrated seamlessly throughout the HS transition. Additionally, it will make it possible to manage and administer the duty remission program, including application, review, approval, and gazettement. It will also make it possible to produce information and publish other policies influencing the execution of CET. Read more: Business Insider
According to a report by Henley & Partners in partnership with New World Wealth, private wealth in Africa amounts to $2.4 trillion, with five cities accounting for over 50% of the continent’s wealth. These cities include Johannesburg, Cairo, Cape Town, Lagos, and Nairobi, and they also account for 56% of the continent’s high-net-worth individuals (HNWIs). The report states that there are currently 138,000 HNWIs in Africa with investable wealth of $1 million or more, along with 328 centi-millionaires worth $100 million or more, and 23 US-dollar billionaires. South Africa is home to at least twice as many HNWIs as any other African country, accounting for 30% of the continent’s centi-millionaires. Egypt, on the other hand, accounts for the most billionaires. Read more: Business Insider
Public sector workers in an eastern Chinese city are set to be paid fully in digital yuan, as the country makes a significant push to popularize the currency. Changshu, located in the province of Jiangsu, will start the new payment process in May, according to an official document widely posted on government websites. This is the biggest rollout of the currency, also known as the e-CNY, in China so far, according to state media. Government employees as well as staff at state-owned companies and public institutions such as schools, hospitals, libraries, research institutes and media organizations in the city will be affected. Changshu, a city of 1.7 million residents, was already experimenting with the digital yuan, a form of money that exists only online and is managed and backed by China’s central bank. Like cryptocurrency, the digital yuan incorporates some elements of blockchain technology: Every transaction is recorded and traceable in a digital ledger. Read more: CNN
ZAMBEEF Chief Executive Officer, Ms Faith Mukutu, has explained that value addition is key to feeding the nation and the region. Speaking earlier, today when she led a team of Directors who visited the Mpongwe farms on the Copperbelt, the CEO highlighted that ZAMBEEF was focused on Value addition as a means to feeding the nation and the region. “I stand with the Republican President(Mr. Hakainde Hichilema) on promoting Value addition, in order, to feed the nation and the region”. She, further, highlighted that with the announced investment of USD $ 100 million, ZAMBEEF is positioned to double production capacity and extend its trading boundary. Read more
In 33 trades recorded on Friday, 7,053 shares were transacted resulting in a turnover of K25,212.35. Trading activity was recorded in AECI, CEC Zambia, PUMA, Standard Chartered Bank Limited, Zambeef and Zanaco as well as CEC Africa on the quoted tier. The LuSE All Share Index (LASI) maintaned its close at 8,021.24 points. The market closed on a capitalization of K75,846,700,120.46 including Shoprite Holdings and K41,064,014,680.46 excluding Shoprite Holdings.
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