Story of the Day
The British Chamber of Commerce Zambia (BCCZ) has commended the New Dawn government for improving Zambia’s investment climate and restoring investor confidence in the local economy as the government marks its first year in office. BCCZ Chief Executive Officer John Paton said the Hakainde Hichilema-led government has made significant strides towards making Zambia a favourable investment destination in the region, attracting local and foreign investors into the local economy. “In just one year, Zambia has gone back to being a positive economic and political story for the rest of the continent. If Zambia continues on the current economic trajectory, the future is indeed bright,” he said. Read more
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Zambia says it will seek Western lenders for its plans to partner with the Democratic Republic of Congo (DRC) to jointly start producing electric vehicles batteries and cement a firm position in the global supply chain. The mineral-rich belt that straddles Zambia and the DRC produces more than 70% of global cobalt of which more than 95% is exported in raw form, depriving the two countries of the much-needed place in the electric vehicle value chain. Read more: The Africa Report
Zambia expects to increase its tobacco harvest by a quarter and generate $92 million from leaf sales at the close of the marketing season in September. By August 12 2022, the country’s tobacco growers had sold 35 million kg of leaf through the approval sales floors against projected sales of 33 million kg. Agriculture Minister Reuben Mtolo Phiri told the International Tobacco Growers Association’s Africa Congress in Lusaka that the sector had performed well during the season despite various headwinds coupled with low investment. Read more: Lusaka Times
Government has commended Japan for the role it plays in helping Africa address economic challenges. Finance and National Planning Minister Situmbeko Musokotwane says the Japanese Government has played an important role in helping the continent reduce poverty and unemployment. Speaking at the Tokyo International Conference on African Development TICAD held in Tunisia, Dr. Musokotwane said Japan remains an ally of Africa in the development process. Read more: ZNBC
Cabinet has approved the publication and introduction of The Investment, Trade and Business Development Bill, 2022 in Parliament during the next sitting. The Bill seeks to among others, foster economic growth and development by promoting trade business development and investment in the country through an efficient and well coordinated private sector led economic development strategy. Cabinet has also approved the publication and introduction of The Zambia Development Agency Bill, in Parliament during the next sitting. The objectives of the Bill are to continue the existence of the Zambia Development Agency and redefine its functions. Read more: ZNBC
International Business and Finance
Nigeria’s real Gross Domestic Product (GDP) grew by 3.54% to $40.9 billion during the second quarter of 2022, according to the National Bureau of Statistics (NBS). The report, seen by Business Insider Africa, explained that this represents a 0.44 points increase when compared to the 3.11% growth that was recorded during the first quarter of the year. Read more: Business Insider
Oil rose almost 1% on Monday as potential OPEC+ output cuts and conflict in Libya helped to offset a strong U.S. dollar and a dire outlook for U.S. growth. Saudi Arabia, de facto leader of the Organization of the Petroleum Exporting Countries (OPEC) last week raised the possibility of production cuts, which sources said could coincide with a boost in supply from Iran should it clinch a nuclear deal with the West. Read more: Reuters
US Federal Reserve chairman Jerome Powell warned that the central bank’s mission to tame inflation will result in “some pain” for US households. In a keynote speech at the Federal Reserve’s annual Jackson Hole Economic Symposium Friday morning, Powell said that the path to reducing inflation would not be quick or easy, adding that the task, “requires using our tools forcefully to bring demand and supply into better balance.” Doing so, he said, would likely result in some weakening of the US economy and job market. “While higher interest rates, slower growth, and softer labor market conditions will bring down inflation, they will also bring some pain to households and businesses,” said Powell. Read more: CNN
Chinese technology giants are coming off the back of their worst quarter of growth in history as a big slowdown in the world’s second-largest economy, stoked by Beijing’s strict Covid policy, takes its toll. In the second quarter of the year, e-commerce firm Alibaba posted its first ever flat year-on-year quarterly revenue growth. Read more: CNBC
Stock futures fell on Monday morning as investors tried to shake off a sharp decline in stocks at the end of last week. Futures for the Dow Jones Industrial Average slid 240 points, or about 0.75%. Those for the S&P 500 and the Nasdaq 100 dropped 0.92% and 1.3%, respectively. The moves in futures come after a brutal sell-off for Wall Street on Friday, when Federal Reserve Chairman Jerome Powell’s short and blunt remarks in Jackson Hole, Wyoming, appeared to extinguish hopes of the central bank changing its aggressive course of rate hikes in the months ahead. Read more: CNBC
Capital Markets Report
In 48 trades recorded on Friday, 211,556 shares were transacted resulting in a turnover of K711,761. A share price gain was recorded in Standard Chartered Zambia of K0.02. Trading activity was also recorded in Airtel, Copperbelt Energy Corporation, Madison Financial Services, Zambeef, Zanaco, ZAFFICO and CEC Africa on the quoted tier. The LuSE All Share Index (LASI) closed at 7,014.75 points, 0.11% up from its previous close of 7,007.09 points. The market closed on a capitalization of K71,465,633,088 including Shoprite Holdings and K36,682,947,648 excluding Shoprite Holdings.