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Finance Minister Situmbeko Musokotwane says the protracted negotiations on debt restructuring are putting pressure on the strength of the Kwacha
The Federal Reserve’s digital payments system, which it promises will help speed up the way money moves around the world, will debut in July.
Zambia Reinsurance recorded growth on its top line of 21.7% from K 78.759 million in 2021 to K 95.872 million
Story of the Day
On 15th March 2023, Probase, Zambia’s largest fintech by size and transactions announced that it had once again broke barriers “by providing their integrated payment gateway for the Revenue Services in the Kingdom of Lesotho”. According to their statement following the announcement of the Lesotho move, “the launch of the payment gateway will enhance efficiency, transparency and convenience in revenue collection processes in the Kingdom of Lesotho”. This development puts Probase, analogous to the Zambian context, in the heart and pulse of the Lesotho tax and payment eco-system. “The e-payment and e-taxation platforms which are part of the Lesotho Tax Modernization Project (LTMP) also mark yet another achievement for ProBASE in its quest to ensure that African enterprises and State-Owned Enterprises deliver services in an efficient and effective manner through the use of electronic systems”. Read more
In Local Business News Sponsored by
Finance Minister Situmbeko Musokotwane says the protracted negotiations on debt restructuring are putting pressure on the strength of the Kwacha. Dr. Musokotwane says some people who are supposed to buy government bonds are holding on to them due to the long negotiation process. Speaking when he interacted with Zambians virtually on the Ministry of Finance Facebook and Zoom accounts this morning, Dr. Musokotwane said measures are being put in place to stabilize the Kwacha due to the uncertainty on the debt restructuring process. Meanwhile, the Finance Minister said the funding for the Lusaka-Ndola dual carriage way by the National Pension Scheme Authority -NAPSA is not strange as many local banks and other institutions lend to foreign companies. Read more: ZNBC
The Tanzania Zambia Railway Authority (TAZARA) Council of Ministers says Zambia and Tanzania urgently need to come up with a common position regarding China’s Interest to invest in the revitalization of TAZARA. Co-Chair of the TAZARA Council of Ministers, Makeme Mbarawa has proposed that the two countries meet and come up with a position before the end of March, 2023. Professor Mbarawa, who is also Tanzanian Minister of Works and Transport, says the two countries must move fast and come up with solutions as TAZARA is limping. Read more: ZNBC
The treasury bills auction held last week was oversubscribed, attracting bids worth over K3.2 billion against an offer of K2 billion. This means there was increased interest for the government securities from the investors, exceeding what was offered. Of the total bids received, K2.56 billion was borrowed. This is according to the Bank of Zambia (BoZ) results of Treasury Bill Tender number 05/2023 held on March 9. “Total bids received amounted to K3,260.40 million [face value] and the allocation was K2,560.29 million [at cost],” the statement reads. The 91-days tenor received bids valued at K487.90 million with K476.03 million being allocated and 182 days tenor received bids worth K577.58 million, with K428.03 million being borrowed. Read more: Zambia Daily Mail
Zambia Revenue Authority (ZRA) has unveiled two mobile tax offices meant to enhance tax collections, particularly in rural areas. Commissioner General Dingani Banda said the initiative was a game changer especially for the rural communities, who have limited access to tax administration. The mobile tax offices have been procured with the support of the GIZ. Read more: Zambia Monitor
In International Business News
The Federal Reserve’s digital payments system, which it promises will help speed up the way money moves around the world, will debut in July. FedNow, as it will be known, will create “a leading-edge payments system that is resilient, adaptive, and accessible,” said Richmond Fed President Tom Barkin, who is the program’s executive sponsor. The system will allow bill payments, money transfers such as paychecks and disbursements from the government, as well as a host of other consumer activities to move more rapidly and at lower cost, according to the program’s goals. Participants will complete a training and certification process in early April, according to a Fed announcement. Read more: CNBC
Adobe shares rose 5% in extended trading on Wednesday after software maker announced fiscal first-quarter results that topped Wall Street estimates and lifted its full-year forecast. Revenue rose 9% year over year in the quarter that ended March 3, according to a statement. Net income fell slightly to $1.25 billion. The company’s Digital Media segment, which includes the Creative Cloud design software bundle, generated $3.4 billion in revenue, up 9% from a year and above the $3.36 billion consensus among analysts polled by StreetAccount. Adobe’s Digital Experience segment, which features Marketo marketing software, contributed $1.18 billion in revenue, just above the $1.17 billion StreetAccount consensus. For the second quarter, Adobe expects earnings per share of $3.75 to $3.80 on an adjusted basis and $4.75 billion to $4.78 billion in revenue. Read more: CNBC
The US government says TikTok should be sold or else face a possible ban in the country. The video-sharing app, owned by Chinese company ByteDance, is accused of posing a national security risk through data gathered from millions of users. A request for a change in ownership, first reported in the Wall Street Journal (WSJ), was confirmed to BBC News by TikTok. The company said a forced sale would not change its data flows or access. The White House has not yet responded to a BBC News request for comment. For years American officials have raised concerns that data from the popular app could fall into the hands of the Chinese government. According to the WSJ, US President Joe Biden’s administration wants ByteDance to divest itself of TikTok to create a clear break from China. Read more: BBC News
“A challenging period.” That’s how Mark Zuckerberg described in a memo what the near future will be like for Meta employees after he announced the once-impervious social media company will cut another 10,000 jobs in the months ahead. Zuckerberg, who has been conducting a review of the business as he aims to execute on his so-called “year of efficiency,” outlined key changes that will be implemented across the organization. Most importantly, from a structural standpoint, Zuckerberg said he wants to flatten the company “by removing multiple layers of management.” “This will be tough and there’s no way around that,” Zuckerberg said in his memo, hinting at the pain and raw emotion that will soon envelope the organization as the workforce is slashed yet again. Read more: CNN
Finally, Capital Markets News
Zambia Reinsurance recorded growth on its top line of 21.7% from K 78.759 million in 2021 to K 95.872 million. This was mainly driven by increased premiums written from the property book of Fire and Engineering classes. The bulk of the business from the domestic market as the Company participated in some mining risks as well as some risks in the energy sector. The profit for the year increased by 364% from K 1.307 million in 2021 to K 6.063 million. The total comprehensive income for the year was K 7.658 million, an increase of 164% from K 2.905 million for the previous period. There was growth in the total assets by 11% from K 112.964 million in 2021 to K 125,374 million. The earnings per share increased from K 0.03 in 2021 to K 0.13. Read more
In 112 trades recorded yesterday, 1,426,909 shares were transacted resulting in a turnover of K12,749,196.56. A Share price gain of K0.16 was recorded in Standard Chartered Bank Limited. Trading activity was also recorded in AECI, British American Tobacco Zambia, CEC Zambia, Chilanga Cement, PUMA, Zambia Breweries, Zambeef, Zanaco, Zambia Sugar and CEC Africa on the quoted tier . The LuSE All Share Index (LASI) closed at 7,326.74 points 0.84% up from its previous close of 7,265.46. The market closed on a capitalization of K72,823,654,709.89 including Shoprite Holdings and K38,040,969,269.89 excluding Shoprite Holdings.
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