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Copper Export earnings drop by 10%
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Zambia orders halt to work on copper mine in Lower Zambezi park
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India’s economy picks up speed amid global slowdown
Story of the Day
PremierCredit is an international multi-award winning fintech, established in 2019 to offer affordable and convenient financial solutions to individuals and small medium enterprises. The platform connects investors from around the world to borrowers in Zambia, and to date it has raised funds from over 11,800 investors. Yesterday morning, the Guest of Honour, Hon. Felix Mutati,Minister of Science and Technology, accompanied with the acting CEO of Zamtel, Mr. Joshua Malupenga together with PremierCredit CEO Mrs. Chilufya Mutale launched the PremierInvest product on Zamtel mobile money menu. Speaking at the launch held in Lusaka today, Zamtel acting CEO Joshua Malupenga said, Zamtel is the Zambia’s first and longest serving telecommunication Company which has influenced human and social development in the country. This influence spills over to people’s daily lives, touching everyone from communication, education, entertainment, heath, wealth creation, entrepreneurship and innovative technology development. Read more
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Zambia’s government on Wednesday ordered mining company Mwembeshi Resources Ltd to immediately halt all activities on the $494 million copper project it is developing in the Lower Zambezi National Park. Collins Nzovu, the minister of green economy and environment, said the company had violated a number of environmental conditions pertaining to the Kangaluwi copper mine. The Zambia Environmental Management Agency on Wednesday served the company with a compliance order to stop mining-related activities and the construction of roads and buildings at the project, Nzovu said. He did not specify how long the ban would remain in place. Mwembeshi Resources spokesperson Oliver Shalala said the company would meet with the environmental agency to discuss the compliance requirements. Read more: Reuters
The export earnings from refined copper in April 2023 decreased by 10 percent to K9.9 billion from K11.0 billion in March 2023. According to official statistics, Copper export volumes during the month of April 2023 decreased by 7.6 percent to 57.6 thousand MT from 62.3 thousand MT in March 2023. Meanwhile, export volumes of refined Copper from January to April 2023 has also reduced by 16.1% when compared to the same period in 2022. Statistician General Mulenga Musepa confirmed that the cumulative volume of refined copper exported from January to April 2023 was 249.8 thousand MT while that of 2022 for the same period was 297.8 thousand MT representing a 16.1 percent decrease. Experts says revenue from Copper exports is falling because of the current production struggles in the mining sector. Read more: Zambian Business Times
Fuel pump prices have been reduced. A litre of Petrol has been reduced by K3.14 ngwee from K27.59 ngwee to K24.45. A litre of Low Sulphur Diesel has reduced from k24.64 ngwee to K21.87 ngwee while Kerosene has reduced from K20.47 ngwee to K19.74. Jet A1 at the Kenneth Kaunda International Airport (KKIA) has also been reduced from K22.60 ngwee to K21.64 per litre. Energy Regulation Board (ERB) Board Chairperson Reynolds Bowa announced the new reduced prices at a press briefing in Lusaka this afternoon. Mr. Bowa attributed the drop in prices to the reduction in international oil prices which outweighed the effects of the kwacha’s depreciation. Read more: ZNBC
Finance and National Development Planning Minister, Situmbeko Musokotwane says Government is working on addressing challenges hindering the growth of the economy. Speaking during the opening of the 2024 National Budget Consultative Meetings in Lusaka Dr. Musokotwane said Government is placing particular focus on enhancing value chains and fostering competitive investments. Dr. Musokotwane urged the participants to propose measures that will grow all sectors of the economy and improve the welfare of citizens. The Minister said Government wants to move away from talking about potential to working on actualizing the development of the country. Read more: ZNBC
Government has set aside K12 million to operationalise the Forest Development Fund (FDF) in the country, authorities have revealed. Ministry of Green Economy and Environment, Collins Nzovu, said government had so far recognised 150 community groups countrywide who are managing 2.6 million hectares of forest using forest management plans to strengthen sustainable forest management. Addressing a media briefing in Lusaka on Wednesday, Nzovu said the Ministry launched the AFR100 initiative, which offered numerous economic opportunities for the Zambian population. Read more: Zambia Monitor
Bank of Zambia Exchange Rates
| Currency | Buying | Selling |
|---|---|---|
| USD | 19.4939 | 19.5418 |
| GBP | 24.1197 | 24.1868 |
| EUR | 20.8214 | 20.8804 |
| ZAR | 0.9854 | 0.9889 |
In International Business News Sponsored By
India’s economic growth has accelerated to 6.1 percent in the January–to-March quarter, boosted by government and private capital spending even as private consumption remained sluggish, government data shows. Wednesday’s reading showed India remains one of the fastest growing emerging economies, especially with China’s post-pandemic recovery stumbling. Despite risks emerging from a global slowdown, the government expects growth to be about 6.5 percent for the current fiscal year, which began on April 1. Asia’s third-largest economy expanded faster than a forecast of 5 percent expected by economists questioned for a Reuters news agency poll in the last quarter of the 2022-2023 fiscal year, up from a revised 4.5 percent in the previous quarter. Read more: Al Jazeera
Global debt currently stands at $305 trillion, $45 trillion higher than before the COVID-19 pandemic, according to the Institute of International Finance (IIF) – a global association of the financial industry. Global debt is the total amount of money owed by corporations, governments and individuals around the world. Of the $305 trillion of debt, corporations account for $161.7 trillion (53 percent), governments owe $85.7 trillion (28 percent) and individuals comprise $57.6 trillion (19 percent). The IIF predicts that global debt will continue to rise as government borrowing remains high, affected by factors such as ageing populations, geopolitical tensions, increased costs of healthcare and disparities in climate finance. Read more: Al Jazeera
A $1.0 billion budget assistance loan from the World Bank has been authorized for Kenya as part of the Fiscal Sustainability and Inclusive Green Growth Development Programme Operation (DPO). Kenya will get the money after asking the World Bank to increase it by 33% as a result of the tighter global financing circumstances, which have caused it to postpone a planned Eurobond sale that was supposed to take place in the current fiscal year. The International Development Association (IDA) of the World Bank will provide low-cost financing to low-income economies for half of the new Ksh138.45 billion loan, and the International Bank for Reconstruction and Development (IBRD), which extends semi-concessional financing, will provide the other half. With a variable interest rate set at 85.0 basis points above the Secured Overnight Financing Rate, which is presently at 5%, the IBRD portion of the loan has an 18.5-year maturity duration. According to the World Bank, as a condition of receiving the most recent loan, the Kenyan government agreed to deepen budget consolidation and implement responsible debt management measures. Read more: Business Insider
Financial markets could face a sharp downturn in the event of any further shocks to the global economy, European Central Bank Vice-President Luis de Guindos told CNBC on Wednesday. Earlier on Wednesday, the ECB published its May Financial Stability Review, saying that the euro area’s stability outlook remained fragile in the aftermath of recent turmoil in the banking sector, which saw the failure of several U.S. regional banks and the emergency takeover of Credit Suisse by UBS. Although it determined that bank resilience in a higher interest rate environment was not a concern in the euro area, with fundamentals remaining solid and regulatory intervention proving effective, the ECB said it is “possible that these events could lead to a reassessment of the profitability and liquidity outlooks for euro area banks.” Read more: Reuters
A Fidelity fund has slashed its estimate of Twitter’s value amid ongoing chaos at the company, implying the social media platform may be worth only a third of its value compared to when Elon Musk acquired it in October. According to a monthly disclosure, Fidelity’s Blue Chip Growth Fund reported that its stake in Twitter was worth $6.55 million at the end of April. That’s down from the $19.66 million the Fidelity fund said its stake was worth in October as Musk was finalizing the acquisition. The revision implies Twitter may be worth only $15 billion overall, as opposed to Musk’s $44 billion purchase price. Read more: CNN
In 142 trades recorded yesterday, 63,707 shares were transacted resulting in a turnover of K238,370.23. A share price gain of K3.50 was recorded in Airtel and a share price loss of K0.08 was recorded in Standard Chartered Bank Limited. Trading activity was also recorded in British American Tobacco Zambia, CEC Zambia, Chilanga Cement, Pamodzi, Real Estate Investments Zambia, ZAFFICO, Zambeef, and Zanaco. The LuSE All Share Index (LASI) closed at 8,242.08 points. 0.65% up from its previous close of 8,189.09 points. The market closed on a capitalization of K76,807,938,578.90 including Shoprite Holdings and K42,025,253,138.90 excluding Shoprite Holdings.
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