Story of the Day:
Absa Bank Zambia PLC announced the conclusion and signing of the full 2023/2024 Collective Bargaining Agreement between the Bank, Zambia Union of Financial Institution and Allied Workers – ZUFIAW and Bankers’ Union of Zambia – BUZ. The Bank has offered K2,600 salary increments across the board for all unionized employees effective 1 April, 2023. On 14 November 2022, negotiations commenced and were concluded on 16 November 2022.These negotiations are for the Collective Bargaining Agreement for the period 2023 to 2024. After amicable and efficient negotiations, the parties agreed to a salary increment of K2,600.00 across the board for all represented employees effective 1 April 2023. This year’s negotiations considered all conditions of service and various allowances were adjusted upwards as follows; Read more
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The central bank in Africa’s second largest red metal hotspot Zambia kept its policy rate unchanged at 9% in its last rate decision session of the year. This was announced by the Bank of Zambia Governor Dr. Denny Kalyalya at a press briefing in Lusaka the capital on 23 November. The monetary policy committee commenced two day deliberations on Monday 21 November at which it was established that despite inflation falling outside the 6-8% target bracket, the central bank still sees attainment of the targeted objective by 1Q23. Read more: The Business Telegraph
The Zambezi River Authority (ZRA) charged ZESCO and the Zimbabwe Power Company US$12,098 million in penalties for over-utilizing water meant for electricity generation at Lake Kariba in the financial year ending 31st December 2021. This is in line with the provisions of Statutory Instrument Number 109/199 (Water Tariff) by-laws. As of 31st December 2021, the power utility firms had cumulatively utilised 49.76 billion cubic metres of water. Read more: Lusaka Times
The ministry of mines cadastre department has registered 482-mining licences since Tuesday. Mines caderstre department Director Samuel Maango has told ZNBC News that the response is overwhelming. He says many Zambians have shown a lot of Interest to get into mining following the discovery of a number of minerals in the country. Read more: ZNBC
Zambia stands to benefit from the 5-billion dollars credit guarantee for Micro, Medium, and Small Enterprises -SMEs-, committed by 7 Pan-African Financial Institutions. African Union (AU) Commissioner for Trade and Industry, Albert Muchanga has disclosed this, when he met Commerce Minister, Chipoka Mulenga, in Niamey, Niger. This was on the sidelines of the AU Extraordinary Summit on Industrialisation and Diversification, and the Extraordinary Session on the African Continental Free Trade Area. Mr Muchanga has said the financial institutions had also pledged 2-million dollars toward the capacity building of enterprises in AU member states. And Mr Mulen has said Zambia needs financial and technical support from the AU, in order to meet the obligation of actualising industrialization by 2063. Read more: ZNBC
International Business and Finance
Hobbled by high interest rates, punishing inflation and Russia’s war against Ukraine, the world economy is expected to eke out only modest growth this year and to expand even more tepidly in 2023. That was the sobering forecast issued Tuesday by the Paris-based Organization for Economic Cooperation and Development. In the OECD’s estimation, the world economy will grow just 3.1 percent this year, down sharply from a robust 5.9 percent in 2021. Read more: Al Jazeera
South Sudan is set to receive some aid in its quest to restore its economy. The government of South Sudan will be receiving a relief fund of 112.7 million from the International Monetary Fund (IMF) in response to the economic challenges haunting the nation. The relief fund would primarily be allocated to help tackle food insecurity, support social spending and boost the country’s diminishing foreign reserves. Read more: Business Insider
As evidence mounts of the long-term harm being inflicted on the U.K. economy by Brexit, the government is coming under pressure to acknowledge the elephant in the room. Despite criticizing the Conservative government’s fiscal plans as the U.K. economy faces a recession and the sharpest fall in living standards since records began, the country’s main opposition Labour party on Tuesday ruled out a return to the EU’s single market or customs union if it wins the next general election — due no later than January 2025. Read more: CNBC
Federal Reserve officials earlier this month agreed that smaller interest rate increases should happen soon as they evaluate the impact policy is having on the economy, meeting minutes released Wednesday indicated. Reflecting statements that multiple officials have made over the past several weeks, the meeting summary pointed to smaller rate hikes coming. Markets widely expect the rate-setting Federal Open Market Committee to step down to a 0.5 percentage point increase in December, following four straight 0.75 percentage point hikes. Though hinting that less severe moves were ahead, officials said they still see few signs of inflation abating. Read more: CNBC
Capital Markets Report
In 179 trades recorded yesterday, 110,983 shares were transacted resulting in a turnover of K404,082.66. A share price gain of K0.01 was recorded in both AECI and Chilanga Cement. A share price loss of K0.03 was recorded in PUMA. Trading activity was also recorded in BATA, Copperbelt Energy Corporation Zambia, Madison Financial Services, Standard Chartered Bank Limited, Zambeef and Zanaco. The LuSE All Share Index (LASI)closed at 7,164.84 points, 0.04% down from it’s previous close at 7,167.78 points. The market closed on a capitalization of K72,118,934,317.88 including Shoprite Holdings and K37,336,248,877.88 excluding Shoprite Holdings.
