Good afternoon. Here’s what you need to know
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Zambia plans to build a mining tech hub
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ZESCO to increase electricity tariffs
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Standard Chartered first quarter profit rises 5.5%, beats estimates
In Local Business and Finance News
Zambia is investing $6 million in technology to increase mineral production while also improving sustainability, productivity, and safety in mining operations. This will be accomplished through the establishment of the Mining Technology (MinTech) hub, which is being planned. The facility will act as an innovation and collaboration hub for the mining sector. It will also offer training and capacity-building programmes to encourage the adoption of new technologies and practices. Felix Mutati, minister of science and technology, stated that the construction of a MinTech cluster was consistent with the government’s aim of fostering value addition. “We are the major producers of a variety of minerals, but specifically copper,” he stated at the just completed Timbuktoo Retreat Strategy in Cape Town, South Africa. Read more: IT Web
ZESCO has been granted approval by the Energy Regulation Board (ERB) to implement the 2024 pre-approved tariffs. This meant that ZESCO had been allowed to migrate to 2024 pre-approved multi-year tariffs for domestic consumers as presented in the tariff schedule. The tariff adjustments schedule took effect on Tuesday. This is contained in a statement issued on Wednesday by the ERB Board Chairperson, Reynolds Bowa. “The tariffs have increased from 40 ngwee per kilowatt per hour to 44 ngwee per kilowatt per hour for domestic consumers, while commercial tariffs have increased from 67 ngwee per kilowatt per hour to 78 ngwee per kilowatt per hour,” Bowa said. Bowa also indicated that the subsequent tariffs for 2025 to 2027 remained conditionally approved subject to the ERB’s annual review of the Regulatory Clearing Account-RCA. Read more: Zambia Monitor
In in meeting held yesterday, President Hakainde Hichilema engaged with their Royal Highnesses from North Western Province in Solwezi District. The meeting, marked by pivotal discussions, centered around the pressing need for infrastructure development in the province, including the establishment of a university, road construction, and advancements in the mining sector. During the deliberations, crucial submissions were made, emphasizing the imperative nature of infrastructure development in North Western Province. Notably, President Hichilema expressed elation over the strong endorsement received from traditional leaders for the government’s initiatives, spanning from anti-corruption efforts to the provision of free education and equitable employment opportunities for public workers nationwide. Read more: Lusaka Times
ZANACO has reportedly provided loans totaling K3.8 million to support women across the country in initiating and expanding their businesses, fostering job creation and bolstering the economic well-being of the nation. ZANACO Acting Chief Executive Officer, Kalengo Simukoko, said strengthening the capabilities of women in entrepreneurship at both micro and macro levels would aid businesses in addressing some of the challenges confronting the nation. Speaking at the Women’s Entrepreneurship Access Center (WAEC) graduation ceremony in Lusaka on Tuesday, Simukoko pointed out that enhancing woman’s capacity would further grow the business environment by effectively capitalising on the opportunities they generate. Read more: Zambia Monitor
In International News
The US central bank again said it would keep interest rates unchanged, noting a “lack of further progress” toward lowering inflation. The decision left the Federal Reserve’s key rate hovering at the highest level in more than two decades, in the range of 5.25%-5.5%, where it has stood since last July. By keeping borrowing costs high, the Fed is hoping to cool the economy and reduce the pressures pushing up prices. But with inflation in the US proving more persistent than expected, the bank is facing questions about its next move. Read more: BBC News
The UK economy will see the slowest growth of the largest developed nations next year, according to forecasts. The Organisation for Economic Co-operation and Development (OECD) predicted that UK gross domestic product – a key measure of economic health – will rise by 1% in 2025. This is below the rest of the G7 nations, which include Canada, France, Germany, Italy, Japan and the US. The OECD, which is a globally recognised think tank, said the UK economy would be “sluggish” this year. The organisation blamed the after-effects of a succession of interest rate rises in the UK for the lethargic performance. BBC News
Huawei Technologies’s net profit leapt 564% to 19.65 billion yuan ($2.71 billion) in the first quarter, a regulatory filing by its parent company showed on Tuesday, as it continues to recover from US sanctions. Huawei’s revenue for the quarter to the end of March rose 37% to 178.5 billion yuan, the filing to China’s National Interbank Funding Center showed. It did not break down how business units, such as consumer and smart car components, performed. A Huawei spokesperson said “digitalization, intelligence and decarbonization” helped to drive revenue growth. Read more: CNN
Coca-Cola Co. is preparing for a potential initial public offering of its African bottling business, possibly as early as next year. In 2021, Coca-Cola first announced its intention to divest a portion of its shareholding in the unit through an IPO. However, the plan was subsequently put on hold. The company is now contemplating a dual listing for Coca-Cola Beverages Africa in Johannesburg and Amsterdam, sources close to the matter told Bloomberg. The potential valuation for the business could exceed US$8 billion, according to these sources, who requested anonymity due to the confidential nature of the information. If listed, the flotation of Coca-Cola Beverages Africa would mark the largest offering on the Johannesburg Stock Exchange (JSE) since at least 2016 and also provide a boost to the struggling index. Read more: Business Insider
Standard Chartered posted on Thursday a 5.5% rise in its first-quarter pretax profit, beating estimates, as higher interest rates bolstered earnings at the emerging markets-focused lender. StanChart, which earns most of its revenue in Asia, said pretax profit in the quarter was $1.91 billion. That compared with $1.81 billion a year earlier and the $1.39 billion average of 13 analyst estimates compiled by the bank. “We delivered a strong set of results in the first quarter of 2024, with double-digit growth in income and positive operational leverage,” StanChart Chief Executive Bill Winters said in the earnings statement. “We remain confident in the delivery of our financial targets and are maintaining our full year 2024 guidance.” Despite the forecast-beating quarterly profit, the bank saw its credit impairments worsen in 2024, with a $165 million writedown in the first three months, compared to $20 million a year earlier. Read more: CNBC
Finally, Capital Markets News
In 43 trades recorded on Tuesday, shares 10,237 were transacted resulting in a turnover of K72,810.00. The following share price changes were recorded on Tuesday: +K0.01 in Standard Chartered Bank Limited. Trading activity was recorded in AECI, Airtel, CEC Zambia, Chilanga Cement, ZANACO and ZAFFICO. The LuSE All Share Index (LASI) closed at 12,852.08 points, 0.03% higher than its previous day close at 12,849.36 points. The market closed on a capitalization of K100,127,767,059.77 including Shoprite Holdings and 65,345,081,619.77 excluding Shoprite Holdings.
No Govt Bond trades were processed on Tuesday.