Good morning. Here’s what you need to know
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Hichilema formally hands-over KCM to Vedanta, firm targets 300,000 tonnes of copper per annum in 5 years
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Stakeholders, Bank of Zambia disagree on full implementation of Export Proceeds Tracking Framework
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TAZAMA declares K89.6m dividend to Zambia
In Local Business and Finance News
TAZAMA Pipelines Limited has declared dividends of K89.6 million to Zambia and K45 million to Tanzania. And Energy Minister Makozo Chikote has disclosed that TAZAMA Pipelines Limited has reached an advanced stage in the procurement process for constructing a new multi-product pipeline. Speaking during the handover of the K89.6 million dividend cheque to the Ministry of Finance, Wednesday, TAZAMA Pipelines Limited Board Chairperson Peter Mumba said the company had made notable strides since the conversion of the pipeline from transporting commingled fuel to low-sulfur gasoline. He noted that the last time TAZAMA Pipelines Limited declared a dividend was in 2019, and the amount was K37 million. Read more: News Diggers
The Ministry of Agriculture has disclosed that over K4 billion has been paid to suppliers under the 2023/2024 Farmer Input Support Programme (FISP). Ministry of Agriculture Permanent Secretary for Technical Services John Mulongoti has also announced that preparations for the 2024/2025 FISP E-Voucher rollout have gained momentum ahead of its commencement on September 2, 2024. In a statement, Wednesday, Mulongoti said the remaining balance, which was less than three percent, would be cleared once reconciliations with suppliers were completed. “The Ministry of Agriculture has paid close to 100 percent of the ZMW4,167,867,835 arrears for suppliers under the Farmer Input Support Programme (FISP) for the 2023/2024 farming season.” Read more: News Diggers
President Hakainde Hichilema officially handed over Konkola Copper Mine (KCM) to Vedanta Resources on Wednesday, marking a new chapter for Zambia’s mining sector. Addressing a gathering in Chililabombwe, President Hichilema urged Vedanta to swiftly increase production and make significant investments in the mine. “This is a pivotal moment for the mining industry,” President Hichilema said. “At long last, the mine has been unlocked. We have walked through the path of unlocking KCM, navigating through challenges and obstacles, and now we are here.” The President criticized the previous decision to place KCM in liquidation as a detrimental business move. He expressed satisfaction with the resolution, highlighting the positive impact it would have on Zambia’s mining sector. Vedanta Resources, which has committed to investing US$1 billion over the next five years, plans to ramp up copper production to 300,000 tonnes annually. Read more: Zambia Monitor
Some stakeholders have accused the Bank of Zambia (BoZ) of halting the full implementation of its Export Proceeds Tracking Framework, despite the system reportedly generating US$6.5 billion. Critics argued that the central bank’s lack of enforcement had led to non-compliance among exporters, adversely affecting the Zambian economy. The Private Sector Development Association (PSDA) Chairperson, Yusuf Dodia, voiced these concerns during an interview with journalists on Sunday. He pointed to the continued depreciation of the Kwacha as evidence that the Framework has not been fully implemented. “The Framework has been more or less halted, but the impact to Zambia is that we are suffering from a shortage of foreign currency,” Dodia claimed. He suggested that the Framework might have been quietly withdrawn or put on hold, allowing companies to keep their export earnings abroad in defiance of the regulations. Read more: Zambia Monitor
In International News
Japan’s factory activity shrank in August amid subdued demand although the pace of decline slowed, while the service sector expanded, showing upbeat conditions in some industries, a business survey showed on Thursday. Rising price pressures and labour constraints, however, continued to be a concern for Japanese firms, especially in the service sector, the survey found. The au Jibun Bank flash Japan manufacturing purchasing managers’ index (PMI) rose to 49.5 in August from 49.1 in July. The index stayed below the 50.0 threshold separating growth from contraction for a second straight month. Read more: Reuters
Zoom Video Communications raised its annual revenue forecast on Wednesday, driven by strong demand for its AI-powered collaboration tools deployed in hybrid work models, and said Kelly Steckelberg would step down as its CFO. Shares of the video-conferencing provider were trading 3% higher after the bell. Zoom has been doubling down on efforts to integrate artificial intelligence into its products and expand its range of services and leverage the growing trend of hybrid work. Zoom Contact Center, the company’s AI-powered, omnichannel platform that provides businesses personalized responses for their customers, secured several high-profile clients, including its largest single-order deal to date in the second quarter. Zoom said large accounts, with customers contributing more than $100,000 in trailing 12-month revenue, increased 7.1%. Online average monthly churn also reached its lowest ever rate. Read more: Reuters
The Chinese government on Wednesday hit out at the European Union over tariffs on electric vehicle imports, after the bloc lowered duties on several major electric automakers, including Tesla. A Ministry of Commerce spokesperson told reporters that Beijing continues to believe that the EU’s probe into China’s subsidies for its electric vehicle industry have come to “pre-set conclusions,” adding that the bloc is promoting unfair competition. “China will take all necessary measures to resolutely defend the legitimate rights and interests of Chinese companies,” the Ministry of Commerce spokesperson said, according to a Google translation. On Tuesday, the European Commission, the EU’s executive body, lowered import duties on a number of electric vehicle manufacturers importing cars into the EU from China. It also set tariffs on Elon Musk’s electric vehicle maker Tesla at 9%, below a previously anticipated 20.8% rate. Read more: CNBC
European stocks moved higher on Thursday as investors digested the Federal Reserve’s latest comments on the future path of interest rates. The pan-European Stoxx 600 index was up 0.44% by 9:15 a.m. London time, with the majority of sectors and major bourses in the green. Retail stocks added 1.03%, while mining stocks fell by 0.55%. Shares of Swiss Re rose 3.61% after the insurer reported a 16% rise in first half net profits to $2.09 billion. Meanwhile, Aegon shares fell 5.57% after reporting a net loss of 65 million euros ($72.41 million) in the first half of this year. It comes after the pan-European benchmark ended the day higher on Wednesday, with the majority of sectors in positive territory as markets rebounded after snapping a winning streak on Tuesday. Fed minutes released Wednesday showed that officials had moved closer to a long-awaited interest rate cut during their July meeting, with the vast majority of participants agreeing that a reduction was “likely” come September if the data “continued to come in as expected.” Read more: CNBC
Finally, Capital Markets News
In 42 trades recorded yesterday, 42,397 shares were transacted resulting in a turnover of K108,980.82. The following price changes were recorded yesterday: -K0.08 in Standard Chartered Bank Limited, -K0.01 in Zambeef, -K0.10 in Zambia Reinsurance and -K0.06 in ZANACO. Trading activity was also recorded in Airtel, CEC Zambia, Chilanga Cement, Real Estate Investments Zambia and CEC Africa on the quoted tier. The LuSE All Share Index (LASI) closed at 14,482.31 points, 0.35% lower than its previous day close at 14,532.84 points. The market closed on a capitalization of K116,964,359,719.23 including Shoprite Holdings and K73,486,002,919.23 excluding Shoprite Holdings.
5 Govt Bond trades with total quantity K31,359,920 and turnover K23,625,920 were processed yesterday.
