Good morning. Here’s what you need to know
- Cheap Financing For SMEs Coming – Elias Mubanga
- UK’s Sunak to unveil $252m investment in nuclear deterrent, nuclear energy
- DRC has surpassed Peru as the world’s second-largest copper producer
In Local Business and Finance News Sponsored
Government says it is doing everything possible to ensure that Small and Medium Enterprises -SMEs- have access to cheap financing. Small and Medium Enterprises Development Minister, Elias Mubanga says government recognises the important role that SMEs play in building the national economy. Mr Mubanga says this is the reason government is implementing various measures aimed at assisting SMEs have easy access to cheap loans. And Mr Mubanga has appealed to the private sector to supplement government efforts in providing cheaper loans to those that want to venture into entrepreneurship. Read more: ZNBC
The Norwegian government says it is developing an economic strategy for its engagement with African countries like Zambia and Malawi. Norwegian Ambassador to Zambia, Malawi and accredited to the Common Market for Eastern and Southern Africa (COMESA), Ingrid Marie Mikelson, said the strategy would reflect Norway’s commitment to strengthen relations. Mikelson said this when she presented her letters of credence to COMESA Secretary General, Chileshe Kapwepwe, in Lusaka on Thursday. She stated that the strategy would reflect Norway’s commitment to strengthen partnerships and foster sustainable development across the African continent. Read more: Zambia Monitor
A unit of International Holding Company, Abu Dhabi’s most valuable company is said to be interested in acquiring Zambia’s Lubambe copper mine. This according to a report from Reuters seen by Zambian Monitor. Lubambe is an asset that China’s JCHX Mining had already agreed to buy as per three sources familiar with the details. International Resources Holding recently told EMR Capital that it was interested in bidding for the private equity manager’s 80 percent stake in the Lubambe copper project, which was up for sale. The development may complicate a sale process that’s already underway according to two of the sources. Read more: Zambian Monitor
Zambia Railways Limited (ZRL) is facing a major crisis in its recapitalization and modernization project, which was aimed at rehabilitating and modernizing the country’s railway infrastructure. The project was expected to improve the efficiency and safety of the railway network, reduce transit times and costs, and increase revenue for the company. However, the project has been marred by safety concerns, financial mismanagement, and delayed deliveries, resulting in increased transit times, reduced freight volumes, and financial losses. One of the major issues affecting the project is the poor state of the railway infrastructure, including the tracks, bridges, culverts, and drainages. As a result of the increased transit time for passengers and cargo, ZRL failed to haul the planned 2,147,681 tonnes of freight for which revenue amounting to K780,861,229 was expected to be generated. Instead, ZRL hauled 1,612,486 tonnes which generated revenue of K389,506,100 resulting in a negative variance of 535,195 tons worth K391,355,129. Read more: Zambian Business Times
Zambia Environmental Management Agency (ZEMA) has approved for implementation 168 projects developmental projects worth over K25 billion. Agency Director General, Godfrey Mwiinga said the projects were approved by ZEMA’s Environmental Assessments Committee (EAC) at its 16th and 17th sittings held in January, February and early March, 2024. Mr. Mwiinga explained that of the approved projects, the energy sector accounted for K7.5 billion, manufacturing and processing, K3.5 billion, tourism over K28 million, mining and mineral processing over K3 billion and agricultural and forestry K80 million, bringing the total to K25, 785, 094,195. “The approval of the projects is in accordance with the Environmental Management Act No. 12 of 2011 (“the EMA”) as read together with the Environmental Management (Amendment) Act No. 8 of 2023 and the Environmental Protection and Pollution Control (Environmental Impact Assessment) Regulations, Statutory Instrument No. 28 of 1997.” Read more: Money FM
In International News
United Kingdom Prime Minister Rishi Sunak is set to announce plans to invest 200 million pounds ($252m) in the country’s nuclear deterrent and civil nuclear industry. Sunak will on Monday announce a “national endeavour” to secure the future of the nuclear submarine-building and nuclear energy industries, creating 40,000 jobs in the process, the prime minister’s office said in a statement on Sunday. Under the plan, the government will create a fund for the northern England town of Barrow-in-Furness to help support people taking up jobs, improve transport links and build more homes. The government will also partner with industry players, including BAE Systems, Rolls-Royce, EDF and Babcock, to invest at least 763 million pounds ($962m) in skills, jobs and education by 2030, the statement said. The UK’s nuclear industry is experiencing an “unprecedented period of growth” due to the government’s nuclear energy targets and will need 123,000 new workers by 2030, the statement said. Read more: Al Jazeera
China has two choices right now: return to its old economic policies, or choose reforms to spur growth, according to the International Monetary Fund’s Managing Director Kristalina Georgieva. “China is poised to face a fork in the road — rely on the policies that have worked in the past, or update its policies for a new era of high-quality growth,” Georgieva said Sunday at the China Development Forum in Beijing. “With a comprehensive package of pro-market reforms, China could grow considerably faster than a status quo scenario,” she said, according to prepared remarks by the IMF. This could unleash growth that would “amount to a 20% expansion of the real economy over the next 15 years — in today’s terms, that is like adding US$3.5 trillion to the Chinese economy,” she added. Read more: CNBC
The Democratic Republic of Congo has surpassed Peru as the world’s second-largest copper producer. A recent report shows that the DRC’s production of copper in 2023 surpassed that of Peru, which prior was the world’s largest copper producer, second only to Chile. DRC is one of Africa’s richest mineral producers, with substantial reliance on its copper trade. According to Statista’s early estimates, Chile, the world’s largest copper producer, was projected to produce 5.3 million metric tons in 2023. Peru’s estimates were 2.6 million metric tons and 2.5 million metric tons for DRC. However, reports show that DRC’s production reached 2.8 million metric tons. The Ministry of Mines in the Democratic Republic of Congo, as seen in the Russian news publication Sputnik, noted that the DRC’s copper production in 2023 amounted to approximately 2.84 million tonnes. A report by Mining Journal showed that Peru achieved a record production of 2.76 metric tons of copper in the same period under review, 12.7% more than it did in 2022. Read more: Business Insider
Mirroring the global market, venture funding for African startups in 2023 dropped 31% — from the previous year, according to a new report. The report published by London-based African Private Capital Association revealed that the number of deals, which flowed in as both equity and debt, dropped to 545 from a record 781 in 2022. According to the report, the decline was attributed to the reduction in the number of active investors in the region compared to the previous year. The withdrawal of North American investors was responsible for 50% of the overall decline in investor numbers in 2023, significantly overshadowing European and Asia-Pacific investors, which accounted for 18% and 9% of the decrease, respectively. The report added that foreign investors abandoned African economies struggling with high inflation and erosion in the value of local currencies. As a result, African startups have either laid off staff, changed business models or shut down due to economic realities and internal factors they couldn’t easily navigate. Read more: Business Insider
Finally, Capital Markets News
In 243 trades recorded on Friday 80,759 shares were transacted resulting in a turnover of K715,797.50. The following price changes were recorded Friday: -K0.14 in CEC Zambia, +K0.1 in British American Tobacco Zambia, K0.53 in ZCCM, K0.01 in Zambeef, +K0.01 in ZAMEFA and -K0.01 in Zambia Sugar. Trading activity was also recorded in Airtel, Chilanga Cement, Standard Chartered Bank Limited, ZANACO and ZAFFICO. The LuSE All Share Index (LASI) closed at 12,517.96 points, 0.41% lower than it’s previous close at 12,569.71 points. The market closed on a capitalization of K96,955,624,025.77 including Shoprite Holdings and K62,172,938,585.77 excluding Shoprite Holdings.
9 Govt Bond trades with total face value of K146,285,000 were processed today resulting in a total turnover of K117,810,390.
