Good afternoon. Here’s what you need to know
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Ministry of mines launches $98 million countrywide rocks and minerals survey
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AfDB raises capital from $201 billion dollars to $318 billion for continent’s developmental needs
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Ethiopia floats currency to attract investors amidst IMF talks
In Local Business and Finance News
The Ministry of Mines and Minerals Development says it has embarked on a US$98 million 18-month rocks and minerals survey in Zambia, prioritising Western Province. Director of Geological Survey, Gerald Mwila, explained that the survey was being carried out using aircraft by a South Africa-based company, Excalibur Multi-Physics, the government engaged for the work. Mwila disclosed this during the ministry’s sensitisation meeting in Mongu at the Weekend which focus area was to orient heads of departments on its operations. “The ministry has zoned the country according to priority areas and deliberately started with Western Province because of inadequate knowledge of the minerals in the region hence an interest in finding out what is there,” he said in a statement issued in Lusa. Mwila noted that the ministry had carried out a lot of mineral surveys and was also renewing its mineral areas inventory. Read more: Zambia Monitor
The World Bank’s latest Food Security Update reveals that an estimated 73 million people in East and Southern Africa are projected to face food insecurity by December 2024, with Zambia at risk of famine. Key hotspots included Sudan (16 million), Ethiopia (12 million), South Sudan (eight million) and Somalia (3.5 million). The report highlighted significant challenges in Sudan, where escalating conflicts between the Sudan Armed Forces and the Rapid Support Forces have led to massive displacement, civilian casualties and further loss of livelihoods amid deteriorating economic conditions, particularly in North Darfur. According to the Sudan Mobility Update, nearly 10 million people are now internally displaced, and refugee outflows reached approximately 2.1 million by the end of May. Read more: Zambia Monitor
Vice President Mutale Nalumango has launched the Comprehensive Agriculture Transformation Support Programme -CATSP, an initiative to tackle challenges in the agriculture sector. Mrs. Nalumango says the programme aims to boost agricultural productivity and enhance resilience among farmers facing climate change impacts. Speaking during the launch in Lusaka today, Mrs. Nalumango said the programme will improve access to agricultural financing, supporting irrigation and mechanisation. Agriculture Minister Reuben Mtolo said the Comprehensive Agriculture Transformation Support Programme is a tool for market development, incorporating private sector participation in input distribution and mechanisation activities. Read more: ZNBC
The 2024 Green Economy and Climate Change Bill will soon be presented to Parliament. Green Economy and Environment Minister Mike Mposha has disclosed the development. Mr. Mposha says the Green Economy and Climate Change Bill once enacted will enable government and other stakeholders to sufficiently deal with the effects of climate change. Read more: ZNBC
In International News
The African Development Bank Group (AfDB) president, Akinwumi Adesina, has reportedly outlined the Bank’s successes in mobilising financial resources for the continent’s development needs. Adesina highlighted in a statement issued on Sunday that the Bank’s recent general capital has increased from US$201 billion to US$318 billion, as approved by the Board of Governors during its annual meetings in Nairobi last May. The approval would enable Africa’s only AAA-rated financial institution to preserve its status and meet the continent’s urgent and increasing development needs.He said this when addressing Heads of State and government at the sixth Mid-Year Coordination Meeting of the African Union (AU) on Saturday in Ghana. Read more: Zambia Monitor
Ethiopia’s national currency dropped 30 per cent against the dollar after its central Bank floated its birr currency on Monday. This move is aimed at securing International Monetary Fund (IMF) support and advanced debt restructuring support. Ethiopia has been grappling with high inflation and foreign currency shortages, and it defaulted on its government debt last year. Negotiations with the IMF resumed after a peace deal in Tigray in 2022. The central bank will now allow banks to trade foreign currencies freely with limited interventions. Prime Minister Abiy Ahmed announced the reforms, and the country expects $10.7 billion in external financing from the IMF, World Bank, and other creditors. Read more: Africa News
Malaysia has applied to join the BRICS group of nations, the country’s Prime Minister Anwar Ibrahim said on Sunday. He made the remarks during a meeting with Russian Foreign Minister Sergey Lavrov who is on a two-day visit to Malaysia. Russia is this year’s rotating chair of the BRICS group. The Malaysian prime minister said the potential membership “underscores our commitment to fostering robust international collaboration.” “We also explored avenues to enhance bilateral cooperation, with a particular focus on strengthening ties in key areas such as investment and trade, science and technology, agriculture, defense and military, education, and tourism and culture,” Anwar said. Read more: Africa News
The United Nations Economic Commission for Africa (UNECA) has called upon countries to explore reforms to the common debt relief framework to better address rising high indebtedness in Africa. During a joint press briefing on the margins of the recently concluded 2024 High Level Political Forum (HLPF) in New York, UNECA Executive Secretary Claver Gatete highlighted the challenges of accessing financing for the continent’s priorities, “especially the concessional funds that are long term and cheaper.” Mr. Gatete said, “the reform of the global financing system is urgent, as it can mitigate access to critical resources needed for the implementation of the SDGs.” He noted that from 2010 to 2023, Africa’s debt increased by 192 percent according to data by the African Development Bank stating: “African countries are paying US$163 billion per year with an external debt stock of US$1.1 trillion. This increase is the highest we have ever seen.” “This means that by paying the debt, countries have very little room to implement the SDGs and the next 10-year program of the African Union,” he added. Read more: Lusaka Times
The UK chancellor is set to announce immediate cuts worth billions of pounds, aimed at plugging a gap in the public finances, when she addresses Parliament on Monday. Rachel Reeves’ plans are expected to include the cancellation of some road and rail projects, a reduction in spending on external consultants and a drive to cut public sector waste. She will accuse the previous government of “covering up” shortfalls in departmental budgets and then “running away”. However, the Conservative Party said the chancellor’s message was designed to “con the British public” so that she could raise taxes. Read more: BBC News
Italy’s Prime Minister Giorgia Meloni has said China is an “important interlocutor” in managing global tensions, as she met President Xi Jinping in Beijing. President Xi in turn hailed the “long-established friendly” ties, as well as “tolerance, mutual trust and mutual respect” between Beijing and Rome. During her first trip to China since taking office, Ms Meloni and Chinese Premier Li Qiang met on Sunday and signed a three-year plan to strengthen economic co-operation. The five-day visit comes after Ms Meloni last year removed her country from President Xi Jinping’s signature Belt and Road Initiative (BRI). Read more: BBC News
Finally, Capital Markets News
In 87 trades recorded o Friday, 67,214 shares were transacted resulting in a turnover of K359,655.03. A -K0.01 price change in Standard Charterd Bank Limited was recorded on Friday. Trading activity also was recorded in CEC Zambia, FARM, PUMA, Real Estate Investments Zambia, Zambia Breweries, Zambeef, ZANACO and CEC Africa on the quoted tier. The LuSE All Share Index (LASI) closed at 14,458.44 points, 0.03% lower than its previous day close at 14,462.17 points. The market closed on a capitalization of K118,467,134,010.24 including Shoprite Holdings and K74,988,777,210.24 excluding Shoprite Holdings.
A total of 8 Govt Bond trades with quantity K31,319,000 and turnover K20,668,330 were processed on Friday.
