Good morning. Here’s what you need to know to start your day.
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First Quantum Minerals sees 1Q earnings drop on Panama government and Zambia weather issues
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Samsung profits plunge 95%
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Madison Financial Services notifies shareholders of 2,256% lower earnings per share
Story of the Day
Africa GreenCo Group, through its South Africa-based operating company GreenCo Power Services (Pty) Limited (together, GreenCo), is delighted to announce the execution of a power purchase agreement (PPA) with AMEA Power, a Dubai-based developer, owner and operator of renewable energy projects with a focus across Africa, the Middle East and other emerging markets. This project is set to be financed by Standard Bank of South Africa, a key financial institution in sub-Saharan Africa that is actively involved in financing green energy transition projects. The PPA signing was witnessed by HE Dr Thani bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade of the United Arab Emirates, and HE Ebrahim Patel, Minister of Trade and Industry for the Republic of South Africa. GreenCo is further partnering with some key stakeholders to develop a fast-tracked model to stimulate the on boarding of renewable energy generation in South Africa; a significant outcome that will help mitigate the current electricity crisis affecting businesses, households, and the economy as a whole. Read more
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First Quantum Minerals saw its first-quarter 2023 earnings fall more than 80% to US$75 million, or $0.11 per share, as the miner cited a standoff with the government of Panama and a severe rainy season in Zambia as reasons for a 33% quarter-over-quarter decline in its copper output. Production at Cobre Panamá, the company’s large open-pit copper mine in Panama, was impacted following a dispute with the country’s government over tax and royalty payments. First Quantum, though, announced that it reached a new agreement with the Panama’s government in March, with mining operations increasing up to full production levels within two days. Meanwhile, output at the company’s Sentinel mine in Zambia slid 51% due to water accumulation on the pit, while production at its Kansanshi operations in Zambia slipped 18% as a result of the rainy season and lower feed grades. Read more: Proactive Investors
President Hakainde Hichilema has urged African countries to harmonise laws and digitise trade platforms for the continent to enjoy immense benefits that come with advancement in technology. President Hichilema says for economies on the continent to grow, there is need to accelerate the use of technology and digitise. He says through embracing the use of various digital platforms, the African countries will be able to trade effectively and reduce the cost of doing business. President Hichilema said this during the Transfer Africa Summit in Zimbabwe. Read more: ZNBC
Minister of Finance Dr. Situmbeko Musokotwane has highlighted the importance of teamwork among different stakeholders in building the economies of African countries. Dr. Musokotwane said Africa and Zambia needs to push so much for productive investment in driving full-scale economic recovery. When officially opening the inaugural Zambia Institutional Investors Forum in Lusaka, Dr. Musokotwane said Zambia and many other African countries need to harness alternative investments to set their economies on a higher growth trajectory given the multiple crises arising from Covid-19. “In the agricultural sector, Government wishes to expand the production capacity of the sector and promote economic diversification, sustainability and create employment opportunities. Incentives include lower corporate income tax rates in the agricultural sector; suspension of customs duty on machinery, equipment and other goods; and zero-rated Value Added Tax (VAT) rate for most agricultural products,” Dr. Musokotwane said. More detailed information on the opportunities and incentives can be obtained from the Zambia Development Agency (ZDA),” Dr. Musokotwane said. Read more: Lusaka Times
Swedish Ambassador to Zambia, Johan Hallenborg, has pledged his government’s commitment with other strategic partners to support Zambia in the policy development of the renewable energy sector. Hallenborg said the Swedish Embassy in Zambia is also looking forward to getting a new strategy for its work in Zambia, which will be adopted by his government in the near future. He said Sweden takes keen interest in the renewable energy sector in Zambia and has been having several discussions with government on the best way forward of developing the sector. Read more: Zambia Monitor
Within a space of three weeks, Airtel Networks Zambia Plc has once again walked away with four awards, this time from the Zambia Institute of Marking (ZIM) prestigious awards night held over the weekend in Livingstone. Consumers voted “My Airtel App” as the popular winner in 3 categories of ‘Best Brand Campaign of the Year’, the ‘Best Digital Campaign of the Year’ and the ‘Best TV Ad of the Year’. In a statement made available to the Zambian Business Times – ZBT, by Airtel’s Head – Corporate Communications Yuyo Nachali-Kambikambi, Airtel Zambia also was recognised for its “Fraud Awareness Campaign” which won the ‘Best Radio Ad of the Year. Airtel’s Head of Brand and Communication, Maxwell Ng’ambi, was named “Marketing Personality” of the Year for his contribution to the Marketing industry. Speaking about the awards, Airtel Zambia Chief Commercial Officer (CCO) Mr Hussam Baday said: “We are excited once again to receive awards recognising our efforts as a Company.” Read more: Zambia Business Times
Bank of Zambia Exchange Rates
Currency | Buying | Selling |
---|---|---|
USD | 17.6495 | 17.6965 |
GBP | 22.0071 | 22.0728 |
EUR | 19.4974 | 19.5564 |
ZAR | 0.9594 | 0.9622 |
In International Business News
Facebook’s business appears to be reviving after months of decline. Meta, the parent company of Facebook, Instagram and WhatsApp, said revenue grew 3% in the first three months of 2023, compared with the same period a year earlier. It also said more than three billion people used at least one of its apps daily on average last month, up 5% from March a year ago. Shares in the firm shot up more than 10% in after-hours trade. The gains come amid a wider recovery for the firm’s shares, as some investors buy into chief executive Mark Zuckerberg’s campaign to cut costs and refocus the tech giant. Read more: BBC News
Samsung Electronics flagged a gradual recovery for chips in the second half of the year after its semiconductor business reported a record loss on Thursday, driven by weak demand for tech devices. The world’s biggest memory chipmaker said operating profit fell to 640 billion won ($478.6 million) for the January-March quarter, down 95% from 14.12 trillion won a year earlier and the lowest profit for any quarter in 14 years. Revenue fell 18% to 63.7 trillion won. A global downturn in semiconductor purchases amid an economic slowdown and weak customer spending sent chip prices plummeting in the first quarter, triggering production cuts across the sector. Samsung said its chip business would focus on high-capacity server and mobile products “based on expectations of a gradual market recovery and a rebound in global demand” in the second half. For the current quarter, Samsung said it expected limited recovery for memory chips as major data center firms invested more conservatively in servers. Read more: CNN
Microsoft shares rose 9% in extended trading on Tuesday after the software maker issued fiscal third-quarter results and quarterly guidance that exceeded analysts’ predictions. Net income rose 9% to $18.3 billion, or $2.45 per share, from $16.73 billion, or $2.22 per share, a year ago. Revenue increased 7% to $52.86 billion from $49.36 billion a year ago, according to a statement. Read more: CNBC
Alphabet reported first-quarter results on Tuesday that exceeded analysts’ estimates. The stock jumped over 4% in extended trading before paring its gains. The company also said its board authorized a $70 billion share buyback. Alphabet’s revenue rose 3% to $69.79 billion from $68 billion a year earlier, according to the earnings report. The company is mired in a multi-quarter stretch of low single-digit revenue growth after almost two decades of consistent and rapid expansion. With fears of a recession building since last year, advertisers have been reeling in online marketing budgets, wreaking havoc on Google, Facebook and others. Read more: CNBC
Standard Chartered on Wednesday said first-quarter pretax profit jumped 21%, beating analyst estimates, as rising interest rates buoyed cash management income and retail product sales of the emerging markets-focused lender. StanChart, which earns most of its revenue in Asia, said statutory pretax profit for January-March reached $1.81 billion. That compared with $1.49 billion a year earlier and the $1.43 billion average of 14 analyst estimates compiled by the bank. The bank said income in its corporate cash management business tripled thanks to “strong pricing discipline and passthrough rate management”, while retail banking income rose 53%. Not all of the update was positive for shareholders, with expenses rising 5% due to inflation and hiring for strategic initiatives such as a push in China. Read more: CNBC
Finally, Capital Markets News
In accordance with the Lusaka Securities Exchange (“LuSE”) Listings Requirements, the Board of Directors of Madison Financial Services PLC (“MFS” or “the Company”) hereby advises the Shareholders of the Company that the Earnings per Share and Headline Earnings per Share for the financial year ended 31st December 2019 are expected to be approximately 2,256% lower than for the financial year ended 31st December 2018. The movement in EPS is primarily attributed to the loss attributable to the shareholders of K188.5 million for the year compared to a loss of K7.9 million in the year 2018. The loss was mainly attributed to an extraordinary loss amounting to ZMW90.2 million (US$6.5 million) which crystallised in the form of an insurance claim and reversed substantial gains. Read more
A total of 128 million shares were transacted on the Lusaka Securities Exchange (LuSE) in the month of March, resulting in a market turnover of K578.76 million. This is according to the latest monthly bulletin produced by the LuSE. It indicated that 1,655 trades were recorded in the month of March, meanwhile, the LuSE All Share Index (LASI) closed the month at 7,838.10 points, increasing by 8.12 percent from its close in February 2023. It indicated that the market closed on a market capitalisation of K75.05 billion including Shoprite Holdings representing 3.53 percent increase from its close in February 2023 and K40.28 billion excluding Shoprite Holdings posting a 6.79 percent rise from its close the previous month.
In 53 trades recorded yesterday, 166,683 shares were transacted resulting in a turnover of K1,946,910. Share price losses of K0.05 and K0.03 were recorded in British American Tobacco Zambia and Zanaco respectively. Trading activity was also recorded in AECI, CEC Zambia, Zambia Reinsurance, Standard Chartered Bank Limited and Zambeef. The LuSE All Share Index (LASI) closed at 8,018.80 points, 0.15% points lowerr than its previous close at 8,031.20 points. The market closed on a capitalization of K75,836,077,305.26 including Shoprite Holdings and K41,053,391,865.26 excluding Shoprite Holdings.
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