Story of the Day
Financial technology company leader Roy Muyelu has indicated that the sector is experiencing exponential growth, according to a speech he delivered at the on-going ICT Fintech Festival. “The Fintech landscape in Zambia has grown tremendously over the years, and the Fintech activities range from but not limited to; digital payment platforms, mobile money, system integration, alternative finance and financial management all with the aim of aiding their clients with financial technology”, read an extract of Probase Founder and Payments Association Chairman during the opening ceremony for the ongoing feastival which was attended by Minister of Technology Felix Mutati on 22 September 2022 at Lusaka’s Pamodzi Hotel. Read more
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Bank of Zambia (BOZ) Governor Denny Kalyalya says the worst is over for Zambia’s economy. Dr. Kalyalya says the country must now focus on working towards ensuring the International Monetary Fund -IMF- bailout package benefits the country. He says the economy is now moving in the right direction and that Zambia is a reference point for good things. The BoZ Chief notes that the economic success for Zambia depends on what the country does with the IMF programme, which is expected to bring about budget discipline. Read more: ZNBC
President Hakainde Hichilema has bemoaned the low number of businesses in Economic Zones. The President says huge sums of money were invested in the construction of the facilities and failure to have them occupied is detrimental to development. Speaking at the First ever China- Zambia Trade and Investment Forum in Lusaka today, President Hichilema said there is need to woo investments into the Zones so that jobs can be created for the local people. Read more: ZNBC
ZESCO Managing Director Victor Mapani says the power utility company has seen an increase in trading activities on the Southern African Power Pool market trading platforms, from 119,043gwh of electricity in 2021 to 123,250gwh this year. And SAPP Executive Director Steven Dihwa has commended Zambia for trading its excess power through the SAPP market. In a speech read on his behalf by Director Distribution Peter Chamfya during the opening of a two day SAPP market trading platform country roadshow, Wednesday, Mapani said such an event was important to ZESCO as it would raise awareness amongst stakeholders to promote intra-regional trading. Read more: News Diggers
Konkola Copper Mines (KCM) Provisional Liquidator Celine Nair has announced the appointment of Rand Merchant Bank (RMB) as financial advisor, in the government’s on-going efforts to bring it back into full operation. Confirming the development in a statement, Wednesday, KCM General Manager Corporate Affairs Shapi Shachinda said RMB was selected out of 11 local and international firms that participated in the tender process. Read more: News Diggers
Zambia, being Africa’s second-largest Copper Producer, achieved middle-income country status in 2011 during a decade of impressive economic growth, averaging 7.4% per year but growth only benefitted a small segment of the urban population and had limited impact on poverty. However, in July 2022, the World Bank re-classified Zambia to low-income status from lower middle income, for the 2023 financial year because of the deterioration of Gross National Income per capita estimates recorded in 2021. On the hand, as of 2015, 58% of Zambians earned less than the international poverty line of $1.90 per day compared to 41% across Sub-Saharan Africa and three quarters of the poor lived in rural areas. Read more: Money FM
In a bid to raise about US$8 million capital, Real Estates Investments of Zambia (REIZ) PLC has announced its plans to offer over 162 million new ordinary shares on Lusaka Securities Exchange (LuSE). According to a notice of an extraordinary general meeting posted on the LuSE website by REIZ company secretary and finance manager Louis Pulu, the new ordinary shares will be offered through a renounceable rights offering. “The company is planning to offer new ordinary shares via a renounceable rights offering in favour of the shareholders of the company on the terms and subject to the conditions set out in an offer document that will be mailed to shareholders at a later date,” the notice reads. Read more: Zambia Daily Mail
International Business and Finance
Leading OPEC+ members have begun discussions about an oil output cut at the group’s next meeting on Oct. 5, three sources told Reuters. One OPEC source told Reuters a cut was “likely”, while two other OPEC+ sources said key members had spoken about the topic. A source familiar with Russian thinking told Reuters earlier this week that Moscow could suggest a cut of up to 1 million barrels per day (bpd). Read more: Reuters
Countries have been urged to go beyond “mere aspirations” and set a target of zero-net emissions for air travel, as the UN’s aviation body meets for the first time since the COVID-19 pandemic. Speaking at the opening of the International Civil Aviation Organization’s (ICAO) assembly on Tuesday, Salvatore Sciacchitano, president of the ICAO Council, said “mere aspirations are no longer sufficient where our climate, and the well-being of our planet and all its species are concerned.” Read more: Al Jazeera
The Bank of England has stepped in to shore up market confidence in the UK after the International Monetary Fund criticised Britain’s inflation-fighting budget. Reacting to market turmoil, the BoE announced on Wednesday it was temporarily buying up long-dated UK government bonds “to restore orderly market conditions”. However, the British pound promptly slumped 1.7 percent to $1.0552 and UK stocks pared some of their sharp losses. The blue-chip index slipped 0.3 percent after dropping as much as 2.1 percent earlier in the session, while the more domestically focused FTSE 250 eased 1.4 percent. The BoE intervention followed criticism on Tuesday from the IMF, which argued that Britain’s budget could increase inequality and worsen inflation. Read more: Al Jazeera
Stock futures slumped on Thursday morning after the Dow Jones Industrial Average staged a comeback off its lowest level for the year. Futures tied to the Dow Jones dropped 324 points, or 1.08%, while S&P 500 and Nasdaq 100 futures declined 1.02% and 1.34%, respectively. Read more: CNBC
Capital Markets Report
In 21 trades recorded yesterday, 11,866 shares were transacted resulting in a turnover of K107,712. Share price gains were recorded in Pamodzi and ZAFFICO of K0.01 and K0.04 respectively. A share price loss was recorded in Zanaco of K0.02. Trading activity was also recorded in AECI, PUMA, Standard Chartered Zambia, ZCCM, Zambeef and CEC Africa on the quoted tier. The LuSE All Share Index (LASI) closed at 7,338.69 points, 0.04% down from its previous close of 7,341.42 points. The market closed on a capitalization of K72,875,693,845 including Shoprite Holdings and K38,093,008,405 excluding Shoprite Holdings.