Good morning. Here’s what you need to know
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Zambia, Djibouti pledge to deepen bilateral relations for mutual economic benefits
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Zambia confirms completion of AI strategy
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BHP pulls out of Anglo American mining mega-merger
In Local Business and Finance News
Zambia has affirmed its commitment to strengthening bilateral ties with Djibouti, aiming to enhance economic cooperation for the mutual benefit of both nations. Rose Sakala, Zambia’s Ambassador to Ethiopia, conveyed President Hakainde Hichilema’s appreciation for Djibouti’s pivotal role in maintaining regional peace and security by facilitating the safe movement of cargo. Sakala made these remarks while presenting her Letters of Credence to Djibouti President Ismail Omar Guelleh, officially assuming her role as Ambassador Extraordinary and Plenipotentiary of Zambia to Djibouti. In a statement issued in Lusaka by Inutu Mwanza, Zambia’s First Secretary for Press and Tourism at the Zambian mission in Addis Ababa, Ethiopia, Sakala highlighted Djibouti’s significance as a major global shipping hub, crucial for promoting trade and commerce. Read more: Zambia Monitor
The Zambian government has finalised the drafting of an Artificial Intelligence (AI) policy that would guide the country on how to harness the benefits of the latest technologies. Felix Mutati, minister of science and technology, announced that the AI plan will be launched within the next two months. According to Mutati, AI has the ability to help Zambia accomplish its goal of producing 3 million tonnes of copper per year through enhanced exploration. Copper is the lifeblood of the Southern African country. “AI will bring a lot of economic benefits to the country,” Mutati stated. “AI will create alternative jobs in the economy and also fast track mineral exploration.” The minister was speaking at the Copperbelt Agricultural Mining and Industrial Networking Enterprise in Kitwe. Next month, Zambia will hold an AI Conference to prepare the country for an AI-powered future. Read more: IT Web
President Hakainde Hichilema officiated the 68th Copperbelt Agricultural and Commercial Show, branded as the ‘Copperbelt Agricultural Mining, Industrial, and Networking Expo 2023,’ in Kitwe. Themed “Unlocking Opportunities for Growth: Zambia’s Land-Linked Position,” the event showcased the country’s strategic advantages and opportunities in agriculture, mining, and trade. In his keynote address, President Hichilema emphasized Zambia’s unique geographical position, bordered by eight neighboring countries and connected to a ninth, Burundi, via Lake Tanganyika. This strategic location is bolstered by key transport corridors, including the Lobito, Tazara, Walvis Bay, Durban, and Nacala corridors, which facilitate efficient and cost-effective access to international markets. “The high demand for critical minerals essential to the energy transition underscores Zambia’s strategic land-linked position, making it a significant contributor to our economic transformation agenda,” said President Hichilema. “The Expo has reaffirmed our vision of the Copperbelt being on a revival path toward economic transformation.” Read more: Lusaka Times
Liquidity issues continue to plague financial markets in Africa’s red metal hotspot, as the Bank of Zambia recorded another disappointing outcome in its latest bond sale. With K1.8 billion of assets on offer, the central bank managed to secure only K766 million in bids. This result was expected given the tight monetary conditions. Zambia is contending with structural challenges and drought while navigating its debt restructuring process which is a whisker from completion. Read more: The Business Telegraph
In International News
Mining giant BHP has pulled out of its planned takeover of rival Anglo-American in a deal that would have been valued at £38.6bn. BHP had been particularly attracted to Anglo’s copper assets, with the metal rising in value because of its role in the green energy transition. The collapse of the deal follows a month of wrangling between the pair, culminating in a frantic back and forth on Wednesday. Anglo rejected BHP’s calls to extend talks on Wednesday morning, while BHP said it was denied access to “key information” from Anglo during the negotiations “despite numerous requests”. BHP’s chief executive Mike Henry said it was “unable to reach agreement with Anglo American on our specific views in respect of South African regulatory risk and cost”. Meanwhile, Anglo American’s chairman Stuart Chambers insisted the company would be able to provide greater value for shareholders. Read more: BBC News
Google has announced that it will invest $2bn in Malaysia to establish its first data centre and “cloud region” in the Southeast Asian country. “This investment is not just about infrastructure; it’s about unlocking new possibilities for businesses, educators, and every Malaysian,” Farhan S Qureshi, country director for Google Malaysia, said in a blog post on Thursday. Qureshi said the Google data centre would power services such as Google Search and Google Maps and “pave the way for delivering the transformative power of AI to users and customers across the country”. The Google Cloud region will offer “high-performance, low-latency cloud services” to enterprises, startups, and public sector organisations alongside “key controls that allow them to maintain the highest security and compliance standards,” Qureshi said. Malaysian Prime Minister Anwar Ibrahim said the investment would add $3.2bn to the country’s economy and create 26,500 jobs by 2030. Read more: Al Jazeera
Russia has announced plans to raise taxes on businesses and the wealthy as it scrambles for additional revenue to fund its invasion of Ukraine. Government spending has exceeded revenue by tens of billions of dollars since Moscow ordered its troops into Ukraine in February 2022 as sanctions have cut off lucrative energy sales to Europe. The Ministry of Finance proposed on Tuesday new tax thresholds for top earners and a hike in corporation tax. The amendments are expected to raise about 2.6 trillion rubles ($29bn) a year, the Interfax news agency reported, citing Finance Ministry calculations. “The changes are aimed at building a fair and balanced tax system,” Minister of Finance Anton Siluanov said in a statement, adding that the extra funds would bolster Russia’s “economic wellbeing”. The proposed amendments would come into force from 2025. Read more: Al Jazeera
South African’s governing African National Congress appears set to lose majority control in the country’s most seismic political transition since the end of the apartheid. Early indications from just over 11% of polls show the ANC gaining 42.83% of support, with the Democratic Alliance wresting 25.56% of votes, and the Marxist Economic Freedom Fighters in tow with 8.28%. Reuters reported that the country’s Council for Scientific and Industrial Research separately predicted that the ANC will gain roughly 42% of the national vote, off projections made when 8.5% of polling stations had recorded results. Provisional results are still subject to change. Read more: CNBC
Finally, Capital Markets News
In 208 trades recorded yesterday, 77,683 shares were transacted resulting in a turnover of K354,152.63. The following price changes were recorded yesterday: K0.07 gain in Bata, K0.03 gain in British American Tobacco Zambia and K0.01 loss in ZANACO. Trading activity was also recorded in Airtel, CEC Zambia, Chilanga Cement, Standard Chartered Bank Limited, ZAFFICO, Zambeef, Zambia Sugar and CEC Africa on the quoted tier. The LuSE All Share Index (LASI) maintained its closed at 13,091.42 points, down by 0.005% from its previous close of 13,092.03 points. The market closed on a capitalization of K101,269,312,113.08 including Shoprite Holdings and K66,486,626,673.08 excluding Shoprite Holdings.
11 Govt Bond trades with a total face value of 10,188,000 and turnover 8,767,490 were processed yesterday.