Good morning. Here’s what you need to know to start your day.
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UN confident Zambia, other African countries will meet SDGs goals with global support and financial discipline
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Bank of England boss says UK interest rates may rise further
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Airtel Zambia posted a profit after tax of K921 million up from K693 million in 2021
Story of the Day
Prevalent topics with particular reference to Africa’s energy sphere, are set to form the core of discussions at the 15th Africa Energy Indaba. Interactive dialogues and key outcomes emanating from these themes will provide business growth opportunities for Africa’s energy sector and inspire the necessary transformation within this realm. African energy ministers and leaders are proactively striving to improve aspects relating to three core dimensions: energy security, energy equity (accessibility and affordability), and environmental sustainability of energy systems, all of which require funding. The upcoming event will unpack integrated strategic endeavours that governments plan to implement to offer significant catalytic ramifications for long-term investment prospects across Africa’s energy sectors. Read more
In Local Business News Sponsored by
The United Nations (UN) is optimistic that Zambia and many other African countries will meet the set targets of the Sustainable Development Goals (SDGs) despite being in debt distress. Zambia has a leadership that is taking ownership and these are the kind of governments, UN Deputy Secretary Amina Mohammed said in Niamey on Tuesday. Addressing journalists shortly after the official opening of the ninth session of the African Regional Forum for Sustainable Development (ARFSD) in Niger, Mohammed said that over 20 African countries including Zambia are on the debt roll. Read more: Zambia Monitor
Zambia has potential to generate K17 billion as additional domestic revenue from Value Added Tax (VAT) once the tax gap is sealed. The country also has highest potential return of K 9.7 billion from Corporate Income Tax (CIT), according to the two studies launched in Lusaka on Wednesday. As of 2020, the VAT tax gap was found to be K 0.6 billion while that of CIT was K 3.5 billion. The two studies have been done by the Zambia Revenue Authority (ZRA) in partnership with the Zambia Institute of Policy and Analysis Research (ZIPAR) and United Nations University-World Institute for Development Economics Research (UNU-WIDER). These reports are: the estimation of the tax gap for CIT and VAT. Read more: Zambian Monitor
Energy Minister Peter Kapala says construction of an oil pipeline between Zambia and Angola will start as soon as a feasibility study is conducted and a financial close is reached. Mr. Kapala says the actual cost of the project will however be determined after the feasibility study is conducted. He says the delay to start a feasibility study and reach financial closure has been due to prolonged negotiations between Sanongo of Angola and Basali ba Liseli Resources of Zambia that have failed to agree on a shareholdings structure for the project. Speaking during the questions for oral answer session in Parliament yesterday, Mr. Kapala said construction is expected to be completed in 2026 and construction will result in 200,000 barrels of petroleum per day. Read more: ZNBC
President Hakainde Hichilema has disclosed that government will practice positive discrimination in awarding supply contracts to local pharmaceutical companies. President Hichilema says positive discrimination will help in growing the local pharmaceutical sector and provide jobs for locals. The President Hichilema adds that supporting local companies will help in boosting the economy. Read more: ZNBC
Countries in debt distress such as Zambia and Sri Lanka turning to the International Monetary Fund (IMF) for financial help are facing unprecedented delays to secure bailouts as China and Western economies clash over how to provide debt relief. IMF funding is often the sole financial lifeline available to countries in a debt crunch, and key to unlocking other financing sources, with delays putting pressure on government finances, companies and populations. For Zambia, it took 271 days between reaching a $1.3 billion staff-level agreement with the IMF – a preliminary financing deal usually agreed during a country visit – and the fund’s executive board signing off, a prerequisite for actual disbursements. Read more: Yahoo Finance
In International Business News
Interest rates may need to go up again to slow the cost of living down, Bank of England boss Andrew Bailey has said. Mr Bailey said raising rates higher may be “appropriate” to control inflation but said nothing was decided yet. Raising interest rates helps to control price rises by making it more expensive to borrow money. People tend to borrow less, spend less and save more. The next rate decision is on 23 March and Mr Bailey said the Bank would assess the latest data before deciding. Read more: BBC News
China has accused the US of overreacting after federal employees were ordered to remove the video app TikTok from government-issued phones. On Monday, the White House gave government agencies 30 days to ensure that employees did not have the Chinese-owned app on federal devices. The order follows similar moves by the EU and Canada in recent weeks. A spokesperson for China’s foreign ministry accused the US of abusing state power to suppress foreign firms. TikTok has faced allegations that it harvests users’ data and hands it to the Chinese government, with some intelligence agencies worried that sensitive information could be exposed when the app is downloaded to government devices. Read more: BBC News
The ninth edition of the African Regional Forum for Sustainable Development (ARFSD) has commenced in Niamey with an urgent call to address the financing gap to achieve agenda 2030. African countries need a breakthrough on access to finance to upscale urgently required investments, according to the United Nations Deputy Secretary General Amina Mohammed. Mohammed indicated that the financing gap to achieve the Sustainable Development Goals (SDGs) and deliver climate resilience continue to widen. She said about 43 percent of the African nations were in or near debt distress, mostly driven by external factors beyond their control. This, she said, was not acceptable. Read more: Zambian Monitor
Over a thousand Kenyan traders protested in the capital Nairobi on Tuesday against Chinese traders. The demo comes in the wake of controversy elicited by the coming of China Square retail outlet of general merchandise whose prices are on average 45 percent lower than those prevailing in locally owned enterprises, local media reports. China is Africa’s top trading partner and more than 1 million Chinese are estimated to reside on the continent. Read more: Africa News
European Central Bank President Christine Lagarde said interest-rate increases may need to persist beyond a planned half-point move in two weeks’ time. “At this point in time, it’s possible that we continue on that path,” Lagarde told Spanish television show Espejo Publico on Thursday. “By which amount in each and every meeting is impossible to say at this point.” She described March’s hike as both necessary and very likely, saying policymakers will do everything to return inflation to the 2% target from more than four times that now. Read more: Yahoo Finance
Finally, Capital Markets News
Airtel Zambia posted a profit after tax of K921 million up from K693 million in 2021. This was mainly driven by revenue growth and strong operating efficiencies. Meanwhile, its customer base stands at 9.1 million, up 14% year on year, its total revenues are at ZMW 4,451 million, up 24% year on year and its operating profit is ZMW 1,793 million, up 43 % year on year. Read more
In 81 trades recorded yesterday, 68,666 shares were transacted resulting in a turnover of K120,728.16. A share price gain of K0.04 was recorded in Zanaco. Trading activity was also recorded in CEC Zambia, PUMA, Standard Chartered Bank Limited and Zambeef. The LuSE All Share Index (LASI) closed at 7,262.89 points, 0.18% up from its previous close at 7,249.62 points. The market closed on a capitalization of K72,545,745,256.93 including Shoprite Holdings and K37,763,059,816.93 excluding Shoprite Holdings.
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