Story of the Day
The signing of the Democratic Republic of Congo (DRC) – Zambia Memorandum of Understanding (MOU) has potential to create additional business for financial institutions with presence in both countries. In April 2022, Zambia and DRC signed a Cooperation Agreement to manufacture electric batteries. This historical cooperation agreement is aimed at facilitating the development of value chains in electric battery and clean energy sector. Read more
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Zambia’s inflation rate has continued on a positive trajectory towards a single digit, declining to 10.2 percent from 11.5 percent in April 2022 owing to a decrease in price movements in both food and non-food items. And export earnings for refined copper in April 2022 decreased by 12.9 percent to K12.1 billion from K13.9 billion in March 2022 due to reduced production volumes. Read more: Zambia Daily Mail
Zambia and Tanzania are discussing the possibility of building a 1.5 billion dollar gas pipeline. The pipeline will be used by Zambia to import gas from Tanzania. Energy Minister Peter Kapala says the two countries have since prepared ground for a Memorandum of Understanding on building the gas-pipeline which will be one thousand kilometres long. Read more: ZNBC
Zimbabwe, Zambia and South Africa yesterday signed a communique on the revitalisation of the Pan African Minerals Development Company (PAMDC). The communique was signed by Transport and Infrastructural Development Minister Felix Mhona, Zambia Minister of Transport and Logistics Frank Tayali and South Africa Minister of Mineral Resources and Energy Samson Gwede Mantashe. Read more: The Herald
Finance and National Planning Minister Situmbeko Musokotwane says Zambia’s debt needs to be restructured because it is unsustainable. Dr Musokotwane said government is committed to the debt restructuring process and economic transformation through the Eighth National Development Plan (8NDP) and strong public and private sector business linkages. Dr Musokotwane was speaking in Accra, Ghana during a bilateral meeting with Japanese vice Minister of Finance Masato Kanda complimented government efforts in attracting investors to Zambia. Dr Musokotwane also held bilateral talks with India and the African Development Bank. Read more: The Independent Observer
Energy Minister Peter Kapala says government will consider extending tax waivers on fuel beyond the June 30 deadline if there will be need. And economist Bright Chizonde says the IMF was not being hypocritical by encouraging governments to subsidise food and energy. Read more: News Diggers
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Africa’s GDP has recovered strongly in the last year, but the impact of the COVID-19 pandemic and the Russia-Ukraine conflict could pose considerable challenges in the midterm. This is according to the 2022 African Economic Outlook, by the African Development Bank. The report released on Wednesday shows that Africa’s gross domestic product grew by an estimated 6.9 percent in 2021. This is after the continent suffered a pandemic-induced contraction of 1.6 percent in 2020. Read more: CGTN
The EU failed on Sunday to agree on an embargo of Russian oil, but diplomats but will still try to make progress ahead of a Monday-Tuesday summit on an exemption for pipeline deliveries to landlocked Central European countries, officials said. However, a senior EU diplomat said there was “still too much detail to sort out” to hope for an agreement before European Union leaders gather in Brussels on Monday afternoon. The proposed sanctions on oil imports is part of the European Union’s sixth sanctions package on Russia over its invasion of Ukraine. Read more: CNBC
Authorities in Shanghai have announced that some Covid-19 lockdown measures imposed on businesses will be lifted from Wednesday. Plans have also been introduced to support the city’s economy, which has been hit hard by the restrictions. The commercial centre has been under a strict lockdown for almost two months. Meanwhile, China’s capital Beijing has reopened parts of its public transport system as well as some shopping malls and other venues as infections ease. Read more: BBC News
A Twitter investor is suing Elon Musk and the social media platform over the handling of the billionaire’s $44bn bid for the company. The case alleges he violated California corporate laws in a number of ways. It accuses the Tesla boss of “wrongful conduct” as his “false statements and market manipulation have created ‘chaos’ at Twitter’s headquarters in San Francisco”. Twitter shares are around 27% lower than Mr Musk’s $54.20 offer price. Read more: BBC News
Capital Markets Report
In 67 trades recorded on Friday, 62,615 shares were transacted resulting in a turnover of K201,768. Trading activity was recorded in Bata, Copperbelt Energy Corporation, Investrust, Standard Chartered Zambia, ZAMEFA, Zanaco and Zambia Sugar. The LuSE All Share Index (LASI) maintained its close at 6,787.73 points, as there were no share price movements. The market closed on a capitalization of K70,477,469,993 including Shoprite Holdings and K35,694,784,553 excluding Shoprite Holdings.