Story of the Day
Tingg is one of the popular mobile payment platforms in Zambia but few know the back story of how the once music ringtone payment facilitating company that created it, found itself doing business in Zambia let alone becoming one of Africa’s leading Fintech Companies. Financial Insight Founder, this author, had the rare opportunity to sit down with Gilbert Lungu, who has been with the company’s country office manager since January 2018, to discuss a number of significant issues and to get insights into the makers of Tingg. The following are excerpts of our conversation which was held on Friday 21st October at the Cellulant Zambia Head Offices in Pangea House, Arcades Mall Lusaka. Read more
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The World Bank has approved a $275 million development policy operation for Zambia in support of the country’s reforms to restore fiscal and debt sustainability and promote private sector-led growth. The operation is an integral part of IDA’s substantial contribution to help Zambia recover from the COVID-19 pandemic and spillovers from the war in Ukraine, emerge from its debt crisis, and to shift to a more sustainable and inclusive growth. Read more: Today News Africa
Barrick Gold Corp said promising drill results could see the life of its Zambian Lumwana copper mine extended to 2060 from 2042, its Chief Executive Officer Mark Bristow said on Wednesday. Speaking at a media briefing at the mine, Bristow said since 2019 Lumwana’s fortunes had been turned around, making it one of Zambia’s largest copper producers. He said a new mineral royalty tax regime, which is scheduled to come into effect in January next year, would unlock additional free cash flow for the company. Read more: Mining
Minister of Finance Dr. Situmbeko Musokotwane has been challenged to come out in the open and give clear details and milestones on how realistic the aspiration or target for Zambia to hit the 3 million tons per annum copper production in the next nine years as he has continued to refer to it even in the 2023 national budget. Top mining, economists and financial experts have questioned Dr. Musokotwane’s motive behind the continued reference to hitting the 3 million tons per annum copper production without supporting mining or exploration projects which are large enough to support such aspirations. And the Centre for Trade Policy and Development – CTPD has also weighed in and notes that the budget speech mentions that the country needs to attain the three million metric tonnes annual target for copper production. CTPD Senior Researcher – Extractives Webby Banda said “We cannot see any exploration and Mine developmental projects that will lead to the attaining of the three million metric tonnes copper production target.” Read more: Zambian Business Times
Stakeholders in the underperforming railway sector have demanded that Zambia Railways Limited-ZRL management should come out in the open and explain where and how the $120 million Eurobond that was injected in the company was utilised when the railway sector has remained in a deplorable state. Speaking in an exclusive interview with the Zambian Business Times-ZBT, a source who asked to have their name withheld said a US$120 million Eurobond was injected to revive operations at the Zambia Railways Limited between 2012 and 2013 but up to date, nothing much has changed. The new UPND government should conduct an enquiry and inform the public on what really happened. Read more: Zambian Business Times
International Business and Finance
Meta on Wednesday posted the second quarterly revenue decline in its history since going public and warned that it is making “significant changes” aimed at cutting costs ahead of 2023, as it confronts an economic downturn that is hitting its core online advertising business. For the three months ended in September, Meta posted revenue of $27.7 billion, down 4% year-over-year and slightly above Wall Street analysts’ expectations. The Facebook parent company posted its first-ever quarterly revenue decline during the June quarter. The company reported net income of nearly $4.4 billion — less than half the amount it made during the same period in the prior year and below analysts’ projections. Read more: CNN
Samsung has appointed Jay Y. Lee, its longtime de facto leader, as executive chairman. The move was announced Thursday, making official who would continue to head up South Korea’s most valuable and well-known company. Lee had previously held the title of vice chairman. Samsung’s board, which approved the change, “cited the current uncertain global business environment and the pressing need for stronger accountability and business stability,” the tech giant said in a statement. It comes just months after Lee, the scion of one of South Korea’s most powerful families, was pardoned for crimes including embezzlement and bribery. In August, Lee was personally excused by the country’s president for his alleged wrongdoing, with officials citing an economic crisis that required the attention of its top business leaders. Read. more: CNN
Russia’s invasion of Ukraine will have long-lasting effects on energy supply and markets, a new report suggests. The International Energy Agency (IEA) said the world faces its first “truly global energy crisis” as a result. It added that unaffordable energy bills remain a huge problem, driven up as the exports of oil and gas have been restricted. But the crisis should also be seen as a turning point, speeding up the world’s transition to green energy, it said. “With unrelenting geopolitical and economic concerns, energy markets remain extremely vulnerable, and the crisis is a reminder of the fragility and unsustainability of the current global energy system. “The heaviest burden is falling on poorer households where a larger share of income is spent on energy”, the report warned. Read more: BBC News
Mercedes has become the latest Western company to pull out of Russia, following the invasion of Ukraine in February. The German-based firm stopped manufacturing in and exporting to the country in early March. But now it says it will withdraw from the Russian market and sell shares in its subsidiaries to a local investor. Meanwhile, Ford confirmed on Wednesday that it had finalised a deal to exit the Russian market as well. The firm had announced a full suspension of its operations in Russia in March. It has now sold its 49% stake in the Sollers-Ford joint venture, although it has the option of buying the shares back within five years “should the global situation change”. Japan’s Nissan left Russia earlier this month, following the same move from Toyota and Renault. Nissan took a $700m loss in handing over its business to a state-owned entity for a nominal fee, reportedly less than £1. Read more: BBC News
Adidas expects to lose $246 million in profit by the end of the year after cutting ties with Ye, the rapper and designer formerly known as Kanye West. The Germany sportswear company said Tuesday that it had ended its partnership with Ye, including ending production of Yeezy-branded products and stopping all payments to Ye and his companies, because of his “unacceptable, hateful and dangerous” comments and actions. Their agreement was set to expire in 2026.“This is expected to have a short-term negative impact of up to 250 million on the company’s net income in 2022 given the high seasonality of the fourth quarter,” Adidas said. The company reported net profit of 1.49 billion euros ($1.5 billion) in 2021. Read more: Business Insider
Capital Markets Report
In 85 trades recorded yesterday, 31, 302 shares were transacted resulting in a turnover of K309, 941.37. Trading activity was recorded in BATA, Copperbelt Energy Corporation Zambia, Chilanga Cement, Zambezi and ZAFFICO. The LuSE All Share Index (LASI) maintained its close at 7,233.72 points. The market closed on a capitalization of K72,418,746,522 including Shoprite Holdings and K37,636,061,082 excluding Shoprite Holdings.