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Zambia Caps Foreign Bond Buying With Debt Deal Seen Imminent
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32 African countries to benefit from the UK’s new trade scheme
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Zambeef appoints Mr John Clifford Rich as Non-Executive Director
Story of the Day
Financial Insight Zambia had the privilege of being media partner, for the first time, of the recently ended ACCA Business Leaders Event. With the event being in its 7th year, the event this year had many aspects that continues to reaffirm its significance as a tool for business leaders in knowledge enhancement.
The Importance of Key Speaker Selection
Any event that seeks to attract top tier business leadership must have a selection of speakers that offer participants bring something fresh and new. This is because the modern-day business executive seeks out events that not only provide strategic networking, but also enhances on their knowledge base to continue to be effective leaders. This year’s event, according to participants who attended the event, did not disappoint. With the theme of the event aptly centered around some of the “Trends shaping business strategy and the world of work”, business leaders were exposed to key nuggets of strategic insight that are shaping how professionals, not only in the ACCA ecosystem but also other professions, are handing post covid 2020s business environments. Read more
In Local Business News Sponsored by
Zambia imposed a limit on foreign buying of local bonds ahead of a long-awaited debt-relief deal that President Hakainde Hichilema said is imminent. The central bank on Wednesday issued new rules effective immediately that cap non-residents’ purchases at bond auctions at 5% of issuance, “as part of the overall debt sustainability efforts.” China, by far Zambia’s biggest bilateral creditor, had previously taken issue with a decision to exclude local currency securities held by foreigners from the nation’s restructuring plan. Read more: Bloomberg
The Presidents of Rwanda and Zambia have affirmed their commitment to strengthen bilateral ties and collaborate on various sectors such as agriculture, trade, and investment, with the aim of fostering development and improving the wellbeing of their citizens. During President Hakainde Hichilema’s two-day state visit to Rwanda, both heads of state expressed their dedication to deepening cooperation between the two countries. President Hichilema arrived in Kigali on Tuesday evening and was warmly welcomed by President Paul Kagame at Urugwiro Village, where they held a closed-door meeting after inspecting a guard of honor. Read more: Lusaka Times
The Lusaka South MFEZ has announced that it has concluded a USD 6.5 million investment deal by Java Foods Limited. Java Foods Limited is a local Zambian Registered company and is a leading manufacturer, distributor, and marketer of branded nutritious food products, made from locally sourced raw materials for the southern African market. It was founded by Lawyer Monica Musonda. Java produces instant pastas, cereal and seasonings including household names like Ezzie Noodles. The Company intends to set up a modern factory at a total project cost of USD 6.5 Million and is set to create more than 200 jobs. Read more: Lusaka Times
Zambia’s foreign missions need to urgently beef up tourism and investment promotion to attract more investors into the country. The country is competing for tourist numbers and credible financially sound investments against 53 other countries on the continental of Africa. This is according to Chabuka Kawesha, Zambia Chamber of Commerce and Industry (ZACCI) president in a statement issue on Tuesday in Lusaka. Kawesha said it was clear that Zambian missions or embassies needed more investment promotion personal, regularly updated investment promotional materials and coordinated investment messaging on Zambia. Read more: Zambia Monitor
Bank of Zambia Exchange Rates
Currency | Buying | Selling |
---|---|---|
USD | 17.4835 | 17.5335 |
GBP | 22.2496 | 22.3202 |
EUR | 19.0903 | 19.1519 |
ZAR | 0.9500 | 0.9535 |
In International Business News Sponsored By
The UK has indicated that it is prepared to lower tariffs on goods from developing nations, including Zambia. The British High Commission in Abuja, Nigeria issued a statement on Monday claiming that the action was taken to restore trading norms and save consumers and companies millions of pounds annually. According to the UK’s government official website, the scheme dubbed, The Developing Countries Trading Scheme (DCTS) entered into force on 19 June 2023 and replaced the UK’s Generalised Scheme of Preferences (GSP). The DCTS is a simpler and more generous preferential trading scheme that has been designed to boost trade with developing countries in order to support their development. The program streamlines trading regulations and eliminates or lowers tariffs so that more items are eligible for the program, making it more liberal than the EU program in which the UK formerly participated. The program will also help emerging nations who want to diversify and boost exports in order to boost their economies and generate jobs. Businesses might save millions more on import expenses over time if emerging nations expand commerce with the UK under the plan. Read more: Business Insider
Before the end of the year, Kenya will be able to import and export electricity to Tanzania, its neighbour, via a $309.26 million electrical transmission line. According to Energy Cabinet Secretary Davis Chirchir, Kenya is erecting meters along the 507.5-kilometre transmission line in preparation for its commissioning by December. The Kenyan line is approximately 93 kilometres long and goes from Isinya substation to Namanga. Its timely completion was put in doubt due to compensation delays for those affected by the project along the wayleave on the Kenyan side. Along with enabling the two economies to use Ethiopia’s hydropower, the line, with a planned transfer capacity of 2,000 megawatts, would allow the two nations to trade excess electricity. Read more: Business Insider
With inflation in the United States still excessive, most Federal Reserve officials expect to raise interest rates further this year, Chairman Jerome Powell has told a House of Representatives committee. “Inflation pressures continue to run high, and the process of getting inflation back down to 2 percent has a long way to go,” Powell said on Wednesday, the first of two days of twice yearly testimony by the central bank chief on Capitol Hill. Even with more increases expected, the Fed last week kept interest rates unchanged after 10 straight hikes so it could take time to gauge how higher borrowing rates have affected the economy, Powell said. The contrast between the Fed’s stated concern over still-high inflation and its decision to skip a rate hike has heightened uncertainty about its next moves. The hazier messaging suggests that Powell is seeking to balance competing demands from those Fed officials who want to keep raising rates and others who feel the central bank has done enough. Read more: Al Jazeera
Financing for clean energy in developing and emerging economies, excluding China, must increase seven-fold within a decade if global warming is to be capped at tolerable levels, the International Energy Agency (IEA) says. To keep temperatures from rising to catastrophic levels, annual investments in non-fossil fuel energy in these Global South countries will need to jump from $260bn to nearly $2 trillion, the intergovernmental agency said in a report on Wednesday. “Financing clean energy in the emerging and developing world is the fault line of reaching international climate goals,” IEA Executive Director Fatih Birol told journalists. The report was released on the eve of the two-day Summit for a New Global Financing Pact in Paris, which seeks to galvanise support for revamping the mid-20th century architecture governing financial flows from rich to developing nations. G20 nations are historically responsible for 80 percent of global carbon emissions, which are wreaking havoc on the Earth’s climate. Read more: Al Jazeera
UK inflation unexpectedly stayed stuck at 8.7% in May, making it more likely the Bank of England will continue raising interest rates, potentially taking them to a level not seen in more than two decades. The data released by the Office for National Statistics Wednesday defied forecasts for a slowdown in inflation to 8.4% compared with a year ago. Prices for recreation and cultural activities rose at a faster pace than in April and, although food inflation eased, it remained high, coming in at more than 18%. “The cost of airfares rose by more than a year ago and is at a higher level than usual for May,” said ONS chief economist Grant Fitzner. “Rising prices for second-hand cars, live music events and computer games also contributed to inflation remaining high.” Core inflation — which strips out volatile food and energy costs and is a better gauge of the underlying trend in prices — rose last month, hitting a 31-year high of 7.1% Read more: CNN
The Federal Trade Commission sued Amazon on Wednesday, alleging that the e-commerce giant has tricked millions of consumers into signing up for its Prime subscription service through deceptive user interface designs. The complaint filed in the US District Court for the Western District of Washington also takes aim at Amazon for allegedly trying to keep users subscribed who wished to cancel their memberships. “Specifically, Amazon used manipulative, coercive, or deceptive user-interface designs known as ‘dark patterns’ to trick consumers into enrolling in automatically-renewing Prime subscriptions,” the FTC complaint said. It added that Amazon deliberately made it much harder to cancel subscriptions than to enroll in Prime, alleging that the company created a “labyrinthine” cancellation process intended to distract or deter consumers from following through on their intent. Read more: CNN
U.S. President Joe Biden on Tuesday called Chinese leader Xi Jinping a dictator, drawing a harsh response from China and creating a potential diplomatic setback with ties already fragile between the two countries. Biden made the remark at a campaign fundraiser in California, just after Secretary of State Antony Blinken wrapped up his first official visit to Beijing. “The reason why Xi Jinping got very upset in terms of when I shot that balloon down with two box cars full of spy equipment is he didn’t know it was there,” Biden told about 125 attendees at a fundraiser in Kentfield, California. “That was the great embarrassment for dictators, when they didn’t know what happened. That wasn’t supposed to be going where it was,” he added. The situation underscores the tricky balance Biden must strike in managing ties with an assertive global rival while appealing to voters. Blinken’s trip was aimed at mending ties between the two global powers that have hit rock bottom after the U.S. in February shot down what it described as a surveillance balloon — a claim China denies — off the coast of South Carolina. Read more: CNBC
In compliance with section 3.59 (b) of the Lusaka Securities Exchange Limited`s Listings Requirements, the Board of Directors (“the Board”) of Zambeef Products Plc (“the Company”) wishes to announce the appointment of Mr John Clifford Rich as Non-Executive Director, with effect from 22nd June, 2023. Mr Rich holds a Bachelor of Science Degree with Honours in Pathology and a Bachelor of Science Degree with Honours in Veterinary Science from the University of Sydney. Mr, Rich also holds numerous other diplomas and certificates within the agriculture, ruminant nutrition, production and meat export industry, a Post Graduate Foundation in Veterinary Science. Mr. Rich has also received Postgraduate training in financial management, modelling and financial analysis with IFC World Bank for over 15 years. Read more
In 121 trades recorded yesterday 323,156 shares were transacted reuslting in a turnover of K1,122,640.65. A Share price gain of K0.04 was recorded in British American Tobacco Zambia. Trading activity was also recorded in Bata, CEC Zambia, Chilanga Cement, Standard Chartered Bank Limited, Zambeef, Zanaco, Zambia Sugar, ZAFFICO and CEC Africa on the quoted tier. The LuSE All Share Index (LASI) closed at 8,236.96, 0.02% higher than its previous close of 8,235.00 points. The market closed on a capitalization of K76,785,651,359.06 including Shoprite Holdings and K42,002,965,919.06 excluding Shoprite Holdings.
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