Story of the Day
ZCCM Investments Holding Plc has engaged a globally renowned investment bank, Rothschild & Co., to assist with the strategic review of Mopani Copper Mines Plc, the company announced on 15th June, 2022 through a statement issued by the Corporate Affairs Manager, Loisa Mbatha. This engagement follows a competitive procurement process in which five other companies, both local and international, participated. Rothschild & Co has extensive experience and an established reputation as a leading global financial services group, with a history of over 200 years at the centre of the world’s financial markets. Rothschild & Co will undertake an assessment of the strategic options available to the business, to ensure the sustainability, growth and profitability of MCM. Read more
Local Business and Finance Sponsored By Liquid Intelligent Technologies
The Bank of Zambia shared on its website results of the Friday June 24, primary bond sale, the sixth of the year, revealed a 200 basis point climb in the 3 year tenor to 22.0% while the 5 and 10 year moved a bearish 100 bps rise respectively to 23.5% and 27.0%. The central bank only satisfied K1.6 billion of the K2.3 billion on offer of the K2.6 billion on offer somewhat reflecting limited offshore interest. Significant interest was observed in the medium end of the curve (2-5 year). Read more: The Business Telegraph
A total of 840 Local and foreign exhibitors are showcasing their products and services at the 56th Zambia International Trade Fair Trust (ZITF), board chairperson Elizabeth Nkumbula has confirmed. Minister of Commerce, Trade and Industry, Chipoka Mulenga has signalled the start of the fair by lighting the flame within the trade fair grounds after participating in a match past which started from jacaranda mall on Kabwe road. Speaking during the tour of stands, Mr Chipoka emphasized that exhibitors should focus more on unlocking the country’s potential through value addition on its products and services. Read more: Lusaka Times
The World Bank Group has pledged continued support to Zambia’s enhanced food security by helping Small and Medium scale farmers improve their farming activities. World Bank Director for International Development Agency Resource Mobilization Samuel Maimbo says as the World faces a global food crisis, small Scale farmers have an important role to play in contributing to food security at national level. The project being implemented by the Zambia Agribusiness and Trade Project (ZATP) is aimed at contributing to increased market linkages and growth of agribusiness for small scale farmers. Read more: Lusaka Times
Zambeef Products has appointed Faith Mukutu as its new Chief Executive Officer-CEO with effect from July 1, 2022. Mukutu becomes the first Zambian CEO in the 28-year history of Zambeef, which is listed on the Lusaka Securities Exchange and the Alternative Investment Market (AIM) of the London Stock Exchange. According to a statement seen by the Zambian Business Times-ZBT, Mukutu replaces Walter Roodt, who will remain on the Zambeef Board in a strategic role overseeing the company’s US$100 million expansion plans that will see cropping at its Mpongwe farms double and a resulting knock-on effect on efficiency and production throughout its value chain. Read more: Zambian Business Times
Ministry of Technology and Science Permanent Secretary Dr. Brilliant Habeenzu has disclosed that government does not intend to privatise Zamtel. Speaking in an exclusive interview with the Zambian Business Times-ZBT, Habeenzu said the company has continued to make losses but the ministry is working to change the narrative noting that government has plans to make entities such as Zamtel profit making so they can be self-sustaining. Habeenzu explained that Zamtel currently needs an injection of about $260 million for recapitalization adding that government is not happy with the way the company is operating. Read more: Zambian Business Times
International Business and Finance Sponsored By Agricultural and Commercial Society of Zambia
Africa has attracted significant investments and has received an estimated $20 billion in direct investment from Japan between 2016-2018. According to a survey by Japan External Trade Organisation (Jetro), Kenya has been ranked first on top future investment destinations for Japanese investors. In the overall rankings, Kenya took the top spot with an investment choice of 35.1%, followed by South Africa (33%), Nigeria (30%), Ethiopia (21.3%), and Ghana (19.5%), in the top five. Morocco, Mozambique, Cote d’Ivoire, Egypt, and Tanzania made up the top 10 of the survey. Read more: Business Insider
Oil prices are likely to surge to above $200 if the G7 implements plans to cap the price of Russian crude and products, according to an analyst at Swedish bank SEB. Bjarne Schieldrop said Wednesday that the plans were a “recipe for disaster”, given the high levels of stress in the oil market, where prices have more than doubled to around $120 a barrel this year. The G7, a group of the world’s most economically developed democracies, said Tuesday it is exploring the feasibility of capping Russian oil prices. It wants to stop the country from profiting from the surge in energy prices driven by its invasion of Ukraine. Read more: Business Insider
The US economy shrank at a slightly faster rate than previously estimated during the first quarter, the Bureau of Economic Analysis said Wednesday. With one quarter of negative economic growth in the books, the data adds to fears that a recession may be looming. Real gross domestic product declined at an annualized rate of 1.6% from January to March, according to the BEA’s third and final revisions for the quarter. Read more: CNN
China’s huge manufacturing and service industries just saw their first month of growth since February, according to surveys published Thursday, as Covid restrictions were eased in many cities. But the shadow of further lockdowns still looms over the world’s second biggest economy as Beijing sends mixed messages about the best way out of the Covid pandemic. The Chinese government’s purchasing managers’ index (PMI) for manufacturing — which mainly covers larger businesses and state-owned companies — rose to 50.2 in June, the first time it has crossed the 50 mark since February, according to the National Bureau of Statistics. A reading above 50 indicates that activity is increasing. Read more: CNN
Capital Markets Report
In 62 trades recorded yesterday, 19,086 shares were transacted resulting in a turnover of K59,596. Trading activity was recorded in Bata, Copperbelt Energy Corporation, Madison Financial Services, Standard Chartered Zambia, Zambia Breweries, Zanaco and Zambia Sugar. The LuSE All Share Index (LASI) maintained its close at 6,851.21 points, as there were no share price movements. The market closed on a capitalization of K70,753,797,487 including Shoprite Holdings and K35,971,112,047 excluding Shoprite Holdings.