Good morning. Here’s what you need to know
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Japan pledges $1.5 billion to boost Zambia’s mining sector
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Zambia copper mines hit by state utility’s warning of power cuts
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Biden calls for higher taxes on the rich
In Local Business and Finance News
Zambia’s state power utility has served notices of force majeure on supply of electricity to some mines, according to an industry association, threatening additional pressure on a copper market going through an unprecedented squeeze. The Chamber of Mines in Africa’s second largest copper producer said Wednesday that power utility ZESCO Ltd has notified several of the organization’s members that it can’t fully meet its supply commitments. The statement didn’t say which projects are impacted. The market for semi-processed copper ore, known as concentrates, has never been as tight as now, Bloomberg reported last week citing veteran traders. The pressure has been building for several months, driven by the surprise closure of First Quantum Minerals Ltd.’s Cobre Panama mine, followed by downgrades to production guidance from Anglo American Plc. Codelco, the world’s top producer, has also seen production slump to quarter century lows. Read more: Mining
A support of US$1.5 billion has been pledged by the Japanese government to support investment by companies from that country to boost Zambia’s mining sector. The Japanese business corporation is eager to invest in the country’s mining industry, according to Japan’s Minister of Economy, Trade and Industry (METI) Saito Ken. Ken said this during a bilateral meeting held earlier at the METI Offices in Tokyo. METI Vice Minister, Taku Ishii, reaffirmed the pledge during the Japan-Zambia Investment Seminar in Tokyo on Wednesday organised by the Japan Organisation for Metals and Energy Security (JOGMEC). Ishii said the Japanese government seeks support from the Zambian government once the investment became materialised and hoped to conclude the investment agreement as soon as possible. Read more: Zambia Monitor
The United States (US)-Africa Business Center president, Kendra Geither, says the Zambian economy has shown signs of resilience, with the debt restructuring process now putting the country on strong footing. Geither observed that the Zambian economy had shown resilience despite not many African countries currently recording strong performance. She said this on Monday during the US Chamber of Commerce roundtable discussion on the economic and fiscal outlook for Zambia held on the side-lines of the ongoing Spring Meetings of the International Monetary Fund (IMF) and World Bank Group in Washington. “To commit the government to a plan and agenda for reform says a lot about the leadership of President Hichilema and your team. “Good leadership is vital in creating economic conditions and opportunities for trade and investment to take place and for the work that the Zambian Government is doing in partnering with regional leaders to development infrastructure, agriculture, digital advancements, and the Lobito corridor,” Geither said. Read more: Zambia Monitor
President Hakainde Hichilema has called for collaboration among researchers in the agriculture sector to ensure they come up with drought resistant crops that can be grown by farmers. President Hichilema says researchers should also breed varieties that are flood resistant and high yielding. He says this will bring about efficiency in the country’s crop production and that research results should be taken to the farmers so that they grow developed varieties. The Head of State said this when he conducted a field visit to the Zambia Agriculture Research Institute -ZARI- Mount Makulu Research Station in Chilanga District where he checked on the sorghum trials being conducted there. Read more: ZNBC
In International News
United States President Joe Biden has renewed calls for higher taxes on the rich and criticised his rival Donald Trump as being out of touch with working-class Americans during a nostalgia-fuelled visit to his hometown. Kicking off a three-day tour of the battleground state of Pennsylvania on Tuesday, Biden sought to draw a distinction between his working-class roots and Trump’s privileged upbringing and lifestyle at his Mar-a-Lago estate. “When I look at the economy, I don’t look at it through the eyes of Mar-a-Lago. I look at it through the eyes of Scranton,” Biden said during a visit to a community centre in the city of Scranton. Biden contrasted his plan for a 25 percent minimum tax rate for billionaires with Trump’s pledge to maintain the corporate tax rate at 21 percent after slashing it from 35 percent. “A fair tax code is how we invest in the things that make this country strong,” Biden said. “Health care, education, defence and so much more.” Read more: Al Jazeera
Russia is in the process of strengthening its relationship with Africa by actively investing in the continent’s healthcare sector. This intention was made known by the president of Russia, Vladimir Putin on Wednesday. He noted that for its part, Russia is prepared for close ties with Africa in the area of healthcare. The president whose intentions were read by the head of Rospotrebnadzor (the Federal agency that works to provide oversight and control of wellbeing and consumer rights and protection of the citizens of the Russian), Anna Popova, relayed his intentions during his address to the guests and participants of the First Joint Russian-African International Conference on Combating Infectious Diseases, as reported by the Russian newspaper Sputnik. Read more: Business Insider
The high and rising level of US government debt risks driving up borrowing costs around the world and undermining global financial stability, the International Monetary Fund has warned. The IMF said Wednesday that increased government spending, growing public debt and elevated interest rates in the United States had contributed to high and volatile yields — or interest rates — on Treasuries, raising the risk of higher rates elsewhere. Its analysis found that a spike in yields on long-term US government bonds is associated with similar surges in government bond yields in other advanced and developing economies, with the latter suffering exchange rate turbulence as well. Read more: CNN
US President Joe Biden has called for a tripling of tariffs on some steel and aluminium from China. It is the latest protectionist policy to be embraced by Mr Biden as he campaigns for re-election against Donald Trump, who was known for his tough trade stance against China. The White House said the proposal was aimed at protecting US jobs against “unfair” competition. China has previously denied claims of dumping steel and aluminium overseas. Dumping is selling excess product in another country for a very cheap price and can often decimate the local industry’s own market of that product. Read more: BBC News
Finnish telecom gear maker Nokia reported on Thursday a smaller rise than expected in first-quarter comparable operating profit as sales tumbled when operators reduced spending on 5G technology. Operating profit excluding certain items of income and expenses grew to 597 million euros from a year-earlier 479 million, helped by cost cuts as constant-currency sales fell 19%. Four analysts polled by LSEG had on average forecast a comparable profit of 663 million euros. CEO Pekka Lundmark said continued improvement in order intake despite weak markets should boost the second half of 2024. “We remain confident in a stronger second half and achieving our full year outlook,” he said in a statement. Read more: CNN
Finally, Capital Markets News
In 133 trades recorded yesterday, 156,074 shares were transacted resulting in a turnover of K791,607.68. The following share price changes were recorded yesterday: +K0.01 in PUMA, -K0.01 in Zambeef, +0.02 in ZCCM, +0.02 in ZANACO. Trading activity was also recorded in AECI, Airtel, CEC Zambia, REIZ, Standard Chartered Bank Limited and Zambia Sugar. The LuSE All Share Index (LASI) closed at 12,773.56 points, 0.05% higher than its previous day close at 12,766.68 points. The market closed on a capitalization of K99,771,063,212.54 including Shoprite Holdings and 64,988,377,772.54 excluding Shoprite Holdings.
2 Govt Bond trades with total face value of K29,286,000 were processed yesterday, resulting in a total turnover of K25,852,700.