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CEC commissions 60MW Itimpi Solar Plant in Kitwe
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Copper prices climb to 2024 high
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Resource-poor African countries set to outperform resource-rich nations – World Bank
In Local Business and Finance News
President Hakainde Hichilema inaugurated the 60-megawatt Copperbelt Energy Corporation (CEC) Itimpi Solar Plant in Kitwe. The completion of this project in record time garnered applause, with congratulations extended to the company for their remarkable achievement. The commissioning of the Itimpi Solar Plant comes at a critical juncture as Zambia and the surrounding region face a severe power shortage, posing threats to energy, food, and ultimately national security. President Hichilema emphasized the timeliness of this initiative, especially amidst the challenges posed by the El Niño-induced impacts on hydroelectric power. The investment by CEC in the Itimpi Solar Plant is hailed as a significant milestone in achieving diversification within the energy sector, with the potential to mitigate the current power deficit in the country. Energy Minister Peter Kapala echoed these sentiments, emphasizing the plant’s timely contribution to promoting alternative energy sources, which will help alleviate the power shortfall in Zambia. CEC Managing Director Owen Silavwe emphasized the need for collaboration among energy sector players, particularly in light of the current drought conditions. He stressed the importance of working together to meet the growing demand for power in the country. Read more: Lusaka Times
President Hakainde Hichilema has honoured 44 innovative and job-creating Micro, Small and Medium Enterprises (MSMEs) and cooperatives from across Zambia’s 10 provinces at the inaugural Citizens Economic Empowerment Commission (CEEC) Presidential Awards ceremony. Delivering the keynote address in Lusaka, Minister of Small and Medium Enterprise Development, Elias Mubanga, the Head of State, said his government remains committed to rebuilding the economy through a robust private sector dominated by MSMEs. “Since my government came into power in 2021, the empowerment fund increased from K41 million to K350 million in 2022, K398 million in 2023, and K397 million in 2024. This increase in funding is expected to show in terms of improvement in the number of MSMEs accessing finance which should translate into improved performance and ultimately increase in job creation,” President Hichilema stated. Read more: Lusaka Times
Zambia is facing a significant loss as copper production drops to 690,000 tons in 2023 from over 800,000 tons in 2021 resulting in a loss of approximately $1 billion ($905, 501, 318) for the country at a time when copper prices are selling at about $8927 per ton. This is a significant blow to Zambia’s economy, as the mining sector accounts for around 70% of the country’s export earnings. The drop in copper production have had a ripple effect on the nation leading to further economic challenges for the country. The annual Copper production continued dropping and now stands at 690 thousand MT from 763, thousand in 2022, and over 800,000 in 2021 in 2023 representing about 64,721, and 101,434 declines in 2022 and 2023 respectively. According to official annual copper production figures from the Mines and Minerals Development Ministry, it has been revealed that the annual copper production has dropped to 690 thousand metric tons (MT) from 763, thousand MT in 2022 to 698, 566 MT in 2023. This is a drop of about 101, 434 MT compared to the over 800,000 MT copper production which was produced in 2021. This marks a significant decline in copper production, which has been the backbone of the country’s economy. Read more: Zambian Business Times
The Pensions and Insurance Authority (PIA) has expressed worry that the insurance market in Zambia has remained stagnant at two percent. The growth rate in the insurance sector had remained stagnant at two percent for several years, PIA Deputy Registrar, Dr Brian Manchishi, said on Wednesday. Manchishi was speaking at the partnership event between Madison Life and Vitality Health International in Lusaka. He said it was important for insurance firms to start leveraging technology and data analytics effectively, integrate data and systems with their partners to ensure a seamless customer experience. Manchishi said the collaboration had the potential to significantly impact Zambia’s insurance landscape by promoting healthier lifestyles and potentially reducing healthcare costs for policyholders as well as the Insurer. Read more: Zambia Monitor
The Zambia Revenue Authority (ZRA) will now be able to access information from offshore accounts by virtue of being a member of the Global Forum on Transparency and Exchange of Information for Tax purposes (Global Forum). This information would, however, only be used for investigation and audit purposes only. ZRA joined the forum in January 2024, becoming the 171st member. The authority on Wednesday held an awareness meeting in Lusaka where its Commissioner-General, Dingani Banda, said ZRA would have automatic access to financial information on Zambian residents that was held in other jurisdictions. ZRA would also reciprocate on the supply of such information. Read more: Zambia Monitor
Zambia will this year host the United Nations World Tourism Organisation-UNWTO Summit in Livingstone. The Summit will focus on branding Africa. And, Zambia Tourism Agency -ZTA Chief Executive Officer Matongo Matamwandi is confident that Zambia National Broadcasting Corporation-ZNBC – will help the Agency achieve its goals in the tourism sector. Mr Matamwandi says the Agency aims to reach One billion people annually to increase awareness about the country’s tourism. Read more: ZNBC
Government says the recent release of 9.1 million pounds by the United Kingdom for works at the Nakonde One Stop border post will help actualise Zambia’s plan to become a transport and logistics hub. Transport and Logistics Minister Frank Tayali says the initiative will not only foster smooth trade with neighbouring Tanzania but also in enhancing Zambia’s role as a regional transit hub. Mr. Tayali says Zambia’s infrastructure development does not only provide services to the country but also play key roles in offering transit support to neighboring countries. Mr. Tayali was speaking when British High Commissioner to Zambia Nicholas Wolley called on him at his office in Lusaka. And, Mr. Wolley reiterated the UK’s commitment to supporting infrastructure development to facilitate trade between Zambia and its neighbouring countries. ZNBC
In International News
Soaring copper prices show no signs of slowing down, analysts say, with the red metal’s rally fueled by supply risks and improving demand prospects for energy transition metals. Copper prices with May delivery traded at $4.323 per pound in New York as of Wednesday morning, extending gains after settling at its highest level since June 2022 in the previous session. Copper briefly hit a high of $4.334 in intraday trading on Tuesday, reflecting its highest level since the middle of January last year. Three-month copper prices on the London Metal Exchange traded 0.6% higher at $9,477 per metric ton. Demand for copper is widely considered a proxy for economic health. The base metal is critically important to the energy transition ecosystem and is integral to manufacturing electric vehicles, power grids and wind turbines. Wall Street banks are bullish on the outlook for copper prices through to the end of the year. Read more: CNBC
China will remain the largest growth engine for the world economy in spite of its slowdown, the Asian Development Bank said. “China is obviously going to still be important for some time to come. They still account for nearly half of GDP in Asia Pacific,” ADB’s chief economist Albert Park said in a press conference for the bank’s Asian Development Outlook report. “Although growth is moderating, and we are expecting it to continue moderating in the coming years… it’s likely to contribute the most growth of any economy in the world to global growth,” said Park. ADB forecasts China to post annual GDP growth of 4.8% in 2024, lower than the government’s target of “around 5%.” China’s economy expanded 5.2% in 2023, matching the official target of around 5%. Read more: CNBC
Consumer prices in the US rose faster than expected last month, in a sign that the fight to slow inflation has stalled. Prices rose 3.5% over the 12 months to March, up from 3.2% in February, the US Labor Department said. Higher costs for fuel, housing, dining out and clothing drove the increase. Analysts warned that the lack of progress in curbing price rises will force the US central bank to keep interest rates higher for longer. Higher rates help stabilise prices by making it more expensive to borrow for business expansions and other spending. In theory, that in turn slows the economy, and eases the pressures pushing up prices. Read more: BBC News
Statistics from a recent report, show that African countries with little to no resources will outperform African countries with more abundant resources. The report also notes that the growth disparity between non-resource-abundant and resource-abundant countries will continue to widen. This juxtaposes the forecast that Sub-Saharan African nations will see faster development in 2024. The perception that resource riches are a necessary condition for economic prosperity in Africa is being called into question by the rise of non-resource-rich nations as catalysts for economic growth and development. The prosperity of nations lacking substantial resources is mostly driven by variables such as diversification, human capital investment, effective governance, and regional integration. These nations are positioned to set the standard for sustainable and equitable growth in Africa as the continent continues its economic transformation path, proving that one need not rely entirely on natural resource endowments to achieve prosperity. A report by the World Bank titled “Addressing Inequality to Revitalize Growth and Alleviate Poverty in Africa,” highlights this fact as it forecasts that African countries with fewer to no resources are set to outperform countries on the continent with vast resources. Read more: Business Insider
According to the World Bank’s latest report, the Kenyan shilling is currently ranked as the best-performing currency in Sub-Saharan Africa. The report revealed that the incremental value of the shilling was directly linked to the hike in the base lending rate by the Central Bank of Kenya (CBK). The World Bank report also projected that Kenya’s economy would grow by 5% in 2024. The report explained that in the medium term, growth will be supported by increased investment predicated on restored access to international capital markets, which will spur investor confidence and capital inflows. “The Kenyan shilling is the best-performing currency in the subcontinent, as it recorded an appreciation of 16% so far this year. After strengthening by 14% by mid-February, the Zambian kwacha has lost some ground and recorded a year-to-date appreciation of 2.4% as of mid-March. In both cases, the monetary authority hiked interest rates to defend their currencies. In Kenya, securing funds to repay its Eurobond falling due in June 2024 restored confidence and increased the demand for local currency,” the World Bank stated. Read more: Business Insider
Finally, Capital Markets News
In 194 trades recorded yesterday, 49,217 shares were transacted resulting in a turnover of K304,633.11. The following price changes were recorded yesterday,: -K0.10 in Real Estate Investments Zambia and -K 0.01 in Standard Chartered Bank Limited. Trading activity was also recorded in Airtel, CEC Zambia, Chilanga Cement, Zambeef, ZANACO and ZAFFICO. The LuSE All Share Index (LASI) closed at 12,746.62 points, 0.18% lower than it’s previous close at 12,769.61 points. The market closed on a capitalization of K99,646,978,002.09 including Shoprite Holdings and 64,864,292,562.09 excluding Shoprite Holdings. 34 Govt Bond trades with total face value of K262,157,400 were processed yesterday, resulting in a total turnover of K187,439,920.