Story of the Day:
For the seventh consecutive year since 2013, Zambia commemorates yet another Financial Literacy Week (FLW) which began on 23rd to 27th March 2020. At a country level, the FLW focuses on creating awareness of financial services, products and financial practices ranging from creative ways to save, invest and digitally transact, ultimately tackling financial inclusion across the country. Read more
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Zambia will suspend import duty on mineral concentrates and value added tax on imported spare parts to support the economy amid the global coronavirus pandemic, Finance Minister Bwalya Ng’andu said on Friday. Read more: Reuters
Zambia has recorded a trade deficit of K119.5 million (about US$6.6 million) in February 2020, a reversal from a January 2020 trade surplus of K2,352 million. The Zambia Statistics Agency reported that exports declined by 6.5% to K7,829.1 million in February 2020, down from K8,375.0 million in January 2020, while imports increased by 32.0% to K7,948.6 million in February 2020, from K6,023.3 million in recorded in January 2020. Read more: Zambian Business Times
The Finance Minister revised Zambia’s growth rate to below 2% from the earlier target of 3.2% on account of COVID19 impact on the economy. Dr. Bwalya Ng’andu in his address said Zambia’s growth pace will be dependent on the severity of the COVID19 duration. Read more: The Business Telegraph
Chief Government Spokesperson Dora Siliya says Coronavirus will eventually go away but the economic malaise which it has caused will continue for some years. Read more: News Diggers
Dr. Bwalya Ng’andu said Cabinet approved a COVID-19 Contingency and Response Plan with a budget of K659 million under the Disaster Management and Mitigation Unit adding that the Government has started mobilizing funds through the budget and engagement with various local and international stakeholders. He said government will release K2.5 billion to support the easing of liquidity in the face of the adverse effects of COVID-19. Read more: Zambia Reports
Copperbelt Province Minister, Japhen Mwakalombe has implored the Zambia Revenue Authority to conduct a thorough audit on tax compliance among Copperbelt based millers. Read more: ZNBC
KPMG Featured Article
One might wonder why the big 4 Audit firms (KPMG, PWC, Deloite & EY) have invested huge sums of dollars in the technology sector; Artificial Intelligence to be precise. It has been noted that the firms listed above have resolved that technology could greatly enhance efficiency, revenues and most importantly enhance End-Customer benefits and the decision making processes. Read more
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Africa is two to three weeks away from the worst of the coronavirus storm and needs an emergency economic stimulus of $100 billion to bolster preventative measures and support its fragile healthcare systems, according to the United Nations Economic Commission for Africa. Read more: Bloomberg
The global economy could grow at its slowest rate since 2009 this year due to the coronavirus outbreak, the Organisation for Economic Cooperation and Development (OECD) has warned. The influential think tank has forecast growth of just 2.4% in 2020, down from 2.9% in November. But it said a longer “more intensive” outbreak could halve growth to 1.5%. Read more: BBC News
Asian markets posted fresh losses on Monday, as investors digested worsening news of the global spread of the coronavirus. Meanwhile US stock futures were lower Sunday night, continuing to give up gains from last week’s historic rally that came to a halt on Friday. Read more: CNN
Oil prices fell to the lowest in more than 17 years as demand plunged as a result of the pandemic and an unrelenting price war between Saudi Arabia and Russia showed no signs of easing. Read more: CNBC
Africa’s most expansive and profitable airline, Ethiopian Airlines, says it has suspended flights to over 80 destinations as at March 29 due to the impact of COVID-19. The Airline in a statement said all its cargo operations remain intact. “We have continued to operate all our domestic services, but our domestic market has declined by 50%,” they said in a statement. Read more: Africa News
Capital Markets Report
In 5 trades recorded yesterday, 5,400 shares were transacted yielding a market turnover of K6,193. Trading activity was recorded in Copperbelt Energy Corporation, Lafarge, Zanaco and Zambia Sugar. The LuSE All Share Index (LASI) maintained its close at 4,233.35 points, as there were no share price movements. The market closed on a capitalization of K57,245,169,522 including Shoprite Holdings and K23,005,963,542 excluding Shoprite Holdings.
Chart of the Day: