Story of the Day
Following the announcement of its massive US$ 80 million investment, Zambian Breweries held a consultative meeting and tour of its Mungwi road brewing plant with the Bars and Nightclub owners Association of Zambia. The nation’s largest brewer assured the BNCOAZ president and present members that the move is meant to double its capacity and service delivery to distributors and consumers. Last month, Zambian Breweries announced that it would be investing in the expansion of its Mungwi road plant, with 90% going to high tech sustainable equipment. Zambian Breweries’ Acting Country Director Andrea Tennekoon highlighted that the investment was a significant accomplishment for the brewery. Read more
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Manufacturing pulse in Africa’s copper producer Zambia is back in expansionary zone after two months of contraction. According to the Markit Economics purchasing managers index, factory activity in the red metal producer scaled above 50 to headline 50.5 for the month of July, from the previous months 49.9 after an earlier slump further to 49.6 in May. Read more: The Business Telegraph
The governments of Zimbabwe and Zambia are holding a validation workshop on the policy, legal and regulatory framework for the establishment of the agro-industrial park between the two countries. The two countries signed a memorandum of understanding last year for the establishment of the agro-industrial park and today’s meeting is expected to decide the framework for the feasibility study among other issues. The process is being done with the support of the United Nations Economic for Africa (UNECA), the Common Market for East and Southern Africa and the African Development Bank (AfDB). Read more: The Herald
Sovereign defaults by both Zambia and Zimbabwe have escalated the Batoka Gorge hydro-electric project cost, with the estimated price climbing 23% to almost $5 billion. The plan, which is being developed by General Electric and Power Construction Corporation of China Ltd., needs credit support, the Zambezi River Authority said in an emailed response to questions. Read more: New Zimbabwe
The Chamber of Mines has called for concerted efforts for Zambia to achieve the target of three million tonnes of copper production by the year 2030. Chief Executive Officer Sokwani Chilembo has observed that investment in copper mining still remains one of the avenues to boost the economy. Mr. Chilembo said this in Lusaka during an interactive economics forum hosted by the Economics Association of Zambia (EAZ). Read more: Zambian Business Times
International Business and Finance
The inflation rate in Ghana surged to 31.7% in July, according to the latest Consumer Price Index & Inflation report by the Ghana Statistical Service. A copy of the report, obtained by Business Insider Africa, showed that the inflation rate in the West African nation exceeded the Bank of Ghana’s target band of 6% to 10%, thus jumping from 29.8% in June to its current level. Note that this is the 15th consecutive monthly increase for Ghana’s inflation rate and the highest level on record since December 2003. Read more: Business Insider
Airtel Africa Plc has announced the signing of a $125 million revolving credit facility with Citibank’s subsidiaries in Sub-Saharan Africa. According to a corporate disclosure filed with the Nigerian Exchange and seen by Business Insider Africa, Airtel Africa plans to invest the credit facility in four of its subsidiaries. The telecom giant did not specifically mention which of its subsidiaries it plans to invest in. However, it operates in 14 African markets and has ongoing projects across several of these markets, including the recent acquisition of an additional 60 MHz spectrum for $40 million in Kenya and in the Democratic Republic of Congo (DRC). Read more: Business Insider
Prices in the US continued to rise rapidly last month, but a fall in petrol costs helped to ease the pace. The annual inflation rate, the pace at which prices rise, was 8.5% in July, down from June when it surged to 9.1%, the Labor Department said. Aside from energy, costs for many items, including groceries and housing, continued to climb. The higher costs have left many families struggling and had a significant impact on the economy. Read more: BBC News
In a high-stakes decision, federal regulators announced Wednesday that SpaceX will not receive nearly $900 million in subsidies that the company was awarded in December, citing the fact that its satellite-based service is “still developing technology” and the company “failed to demonstrate that [it] could deliver the promised service.” Read more: CNN
Capital Markets Report
In 74 trades recorded yesterday, 125,413 shares were transacted resulting in a turnover of K332,025. A share price gain was recorded in Zambia Sugar of K0.21. A share price loss was recorded in Zanaco of K0.01 Trading activity was also recorded in AECI, Copperbelt Energy Corporation, Chilanga Cement, Madison Financial Services, Zambia Reinsurance and ZCCM. The LuSE All Share Index (LASI) closed at 6,949.35 points, 0.17% up from its previous close of 6,937.39 points. The market closed on a capitalization of K71,180,947,167 including Shoprite Holdings and K36,398,261,727 excluding Shoprite Holdings.