Story of the Day
CFAO Motors Zambia Ltd National Sales and Marketing Manager, responsible for Toyota and Automark brands, Andreja Ursic (left), and Stanbic Bank Zambia Country Head of Vehicle and Asset Finance, Horis Mainza (right) at the press briefing earlier today. Lower interest rates have accelerated a new partnership between Toyota distributor CFAO Motors and Stanbic Bank that will enable more people to turn the dream of car ownership into a reality. The agreement between the nation’s largest car distributorship and one of the leading financial institution opens the doors to a new car for the emerging middle class of aspiring young professionals and families who will now be able to get on the road and broaden their horizons. Read more
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President Hakainde Hichilema has underscored Government’s desire to streamline and reduce unnecessary bureaucracy on matters of trade and investment between Zambia and Namibia. Officiating at the 2022 Swakopmund International Trade Expo (SWAiTEX), in Swakopmund, Namibia on Wednesday, President Hichilema said unnecessary bureaucracy on matters of trade and investment should be reduced among countries in the Southern African region as well. Lusaka Times
The Financial Intelligence Centre says there is need to constitute a unit which will adequately analyse trade data because Trade Based Money Laundering risks have been identified in Zambia. The FIC report on Trade Based Money Laundering in Zambia has indicated that there were some fraudulent and unauthorized amendments to trade documents, frequent amendments to letters of credit and multiple invoices of goods and services. The report has also identified mining, construction, agriculture and retail, as sectors which are most associated to money laundering activities in the country. Read more: News Diggers
Zambian Finance Minister Situmbeko Musokotwane has urged other African nations considering using the Group of 20’s Common Framework mechanism to restructure unaffordable debt to act quickly. “I would encourage my colleagues from the other African countries not to hesitate but to come forth and get their problems solved,” he said in Washington. “This is the only viable option as of now that is available for countries to resolve their debt unsustainability.” Read more: Yahoo Finance
Google’s biggest cloud partner in Africa Deimos is planning to expand into new African countries including Rwanda and Zambia, Deimos CEO Andrew Mori tells The Africa Report. Rwanda is top of the agenda, with entry planned next year, Mori says. The company, which is based in Cape Town, currently employs about 100 people with a presence in Nigeria and Kenya. Deimos is also in the process of establishing itself in Senegal and Ghana, and has secured its first client in the Democratic Republic of Congo. In the longer term, Mori wants to enter all major African hubs including Egypt and Morocco. Read more: The Africa Report
International Business and Finance
The Biden administration is weighing restricting imports of Russian aluminum as it charts possible responses to Moscow’s military escalation in Ukraine, a person briefed on the conversations told Reuters. Such a move, which has not been finalized, would likely boost global prices for the metal used in a wide range of consumer products and could reverse a previous White House stance that such sanctions could wreak havoc on global markets. “We’re always considering all options,” said a White House official. “There is no movement on this as of now.” Read more: CNBC
Asia’s biggest economic challenges will be rising debt and capital flight as interest rates continue to rise, the International Monetary Fund has warned. The warnings come as the IMF trimmed its global growth predictions in its latest economic outlook this week and warned the new year would feel like a recession for many parts of the world. Read more: CNBC
The Nigerian federal government is looking to acquire funds from the International Monetary Fund (IMF). The Nigerian minister of finance, budget, and national planning, Zainab Ahmed, has disclosed plans to take advantage of the IMF’s newly created fund. She made the announcement following the IMF- World Bank meetings on Wednesday, which were held in Washington DC. Read more: Business Insider
Nigeria’s domestic credit currently sits at N61.1 trillion as of August 2022. The highest the country has ever experienced. The domestic credit increased by 26% since the start of the year, adding an extra N12.4 trillion to the already alarming N48.7 trillion reported at the beginning of the year. Fueled by the goal of growing the economy, the Nigerian government has been piling up on its debt for the last three years. The Nigerian government is convinced that the money it borrows both internally and externally can be used to speed up the development the country so desperately needs. Read more: Business Insider
According to Chainalysis, a blockchain forensics firm, Africa’s cryptocurrency market grew by over 1200% between 2020 and 2021. They added that four African countries – Kenya, Nigeria, South Africa, and Tanzania – all rank in the top 20 for global crypto adoption. This growth was largely powered by retail users rather than institutional investors. Chainalysis reported that African markets see “a bigger share of [their] transaction volume made up of large retail and small retail-sized payments than the global average.” This indicates “higher grassroots adoption amongst everyday users.” Read more: African Business
Capital Markets Report
In 25 trades recorded yesterday, 5,319 shares were transacted resulting in a turnover of K11,001. Trading activity was recorded in Airtel, Bata, Chilanga Cement, Pamodzi, Stanadard Chartered Zambia, Zambeef and Zanaca. The LuSE All Share Index (LASI) maintained its close at 7,229.31 points, as there were no share price movements. The market closed on a capitalization of K72,399,557,541 including Shoprite Holdings and K37,616,872,101 excluding Shoprite Holdings.