Story of the Day:
Barely a fortnight after publishing its 2019-year end financial results which signaled the erosion of value due to impairments caused by its biggest mining customer, Copperbelt Energy Plc (CEC) has announced the end and non-renewal of its power supply contract with Konkola Copper Mine (KCM). Read more
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Zambia on Wednesday said mines ministry officials will, starting next month, personally collect samples from mine sites around the country to prevent mining companies seeking to undervalue their production to pay less taxes. Read more: Reuters
The Ministry of Energy has proceeded to implement the approved policy framework which supports an open Electricity Supply Industry (“open ESI”) that eliminates monopolistic tendencies. Read more: Zambian Business Times
The World Bank, through International Finance Corporation (IFC), has engaged a United States of America firm, A2F Consulting, to conduct a study on enhancing the growth of the movable collateral-based lending industry in Zambia, the Bankers Association of Zambia (BAZ) has said. Read more: Zambia Daily Mail
Chinese entrepreneurs are encouraged to consider investing in newly created districts in Zambia to help boost development and create jobs for the local people, a Zambian government official said on Tuesday. Read more: MSN
According to the World Bank Global Economic Prospects reports for June 2020, Zambia’s estimated growth forecast for 2020 was revised higher to -0.8% from the -2.6% pronounced at the IMF virtual spring meetings in April earlier. This was part of a Sub Saharan Africa – SSA revision to -2.8% 580 basis points weaker than earlier forecast. Read more: The Business Telegraph
International Business and Finance
The Federal Reserve left interest rates unchanged Wednesday and committed to maintaining its unprecedented stimulus plan until the economy “has weathered recent events.” That means it could be years until interest rates rise again. Read more: CNN
British firms do not have the resilience to cope with a no-deal Brexit after the battering of the coronavirus crisis, according to the Confederation of British Industry. Read more: BBC News
The head of the Organisation for Economic Cooperation and Development has said countries must agree on an approach for taxing tech giants, or they risk a widespread trade war. Read more: BBC News
Shares of Tesla Inc. rose more than 9% to over $1000 for the first time ever on Wednesday after Chief Executive Elon Musk urged the company “to go all out” on the production of the Tesla Semi, its electric freight truck, amid a surge in investor interest about an emerging competitor. Read more: Market Watch
Boris Johnson’s government is drawing up a strategy to reduce the UK’s reliance on China for key imported goods, as ministers acknowledge that a combination of the coronavirus pandemic and Brexit will force a big shake-up of the country’s supply chains. Read more: Financial Times
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In 20 trades recorded yesterday, 774,407 shares were transacted yielding a market turnover of K5,885,493. Trading activity was recorded in Zambia Breweries. The LuSE All Share Index (LASI) maintained its close at 4,013.14 points, as there were no share price movements. The market closed on a capitalization of K56,288,243,762 including Shoprite Holdings and K22,049,037,782 excluding Shoprite Holdings.
Chart of the Day: