Good morning. Here’s what you need to know
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ERB Reduces Fuel Prices for October 2024
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ActionAid Zambia Expresses Concern Over Decline in Education, Health Budgets in 2025
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BHP projects copper demand to rise by 1 million tonnes annually until 2035
In Local Business and Finance News
The Energy Regulation Board (ERB) has announced a reduction in fuel prices for October 2024, bringing relief to consumers. The new prices, effective immediately, are as follows: petrol will now sell at K32.70 per litre, down from K33.47, diesel at K28.90 from K30.05, kerosene at K26.95 from K27.52, and Jet A-1 at K29.57 from K30.53. ERB Chairperson James Banda attributed the price cuts to a drop in global petroleum product prices in September 2024. Banda explained that the reduction is largely driven by a decline in global oil demand, due to an economic slowdown in major oil-importing regions. He noted that since the last fuel price review on 31st August 2024, international prices for petrol have fallen by 7.1%, diesel by 8.72%, and kerosene and Jet A-1 by 7.19%. Read more: Lusaka Times
President Hakainde Hichilema is set to open the Digital Government Africa Summit later this week in Zambia, marking the second consecutive year the nation has hosted the high-profile event. The summit, which is drawing over 500 delegates from 33 African countries, highlights the growing significance of digital transformation across the continent. Home Affairs and Internal Security Minister Jack Mwiimbu emphasized the importance of the summit, noting that it provides African governments with a vital platform to foster connections, promote cross-border payment systems, and encourage collaboration among cybersecurity professionals. Technology and Science Minister Felix Mutati added that Zambia is using the summit as an opportunity to demonstrate its advancements in digital security. In the education sector, Minister Douglas Syakalima pointed out that Zambia’s introduction of free education has driven the rollout of digital infrastructure in schools. Read more: Tech Africa News
Zambia has recorded a 21 percent increase in international arrivals, reaching 732,732 compared to the same period in 2023, according to authorities. To further boost the tourism sector, the government plans to invest approximately K1,289,935,340 in 2025, as announced by Finance and National Planning Minister, Dr. Situmbeko Musokotwane, during the presentation of the K217 billion 2025 National Budget in Parliament on Friday. Musokotwane also revealed plans to operate the Victoria Falls Border for 24 hours to enhance tourism access. He highlighted government’s commitment to conserving biodiversity and promoting integrated transboundary management by continuing collaboration with neighboring countries to develop transfrontier conservation areas. Read more: Zambia Monitor
The Zambian government has put forth a substantial proposal for the education sector, suggesting an allocation of K31.5 billion in the 2025 National Budget. This funding, which represents 14.5 percent of the overall budget, is aimed at enhancing educational access and quality across the country. A key highlight of this allocation was the recruitment of 2,000 new teachers, a move designed to improve the teacher-pupil ratio and bolster the educational framework. Finance and National Planning Minister, Situmbeko Musokotwane, presented the budget to the National Assembly at the Parliament Building in Lusaka on Friday. During his address, he stated the importance of education as a cornerstone for national development. He announced that K2.3 billion of the proposed budget would be allocated for grants to early childhood education, primary, and secondary schools, reinforcing the government’s commitment to maintaining free education for all children. Read more: Zambia Monitor
The Zambian government has earmarked K23.2 billion for the health sector in the 2025 National Budget, representing 10.7 percent of the total budget. During his presentation of the budget at the Parliament Building in Lusaka on Friday, Finance and National Planning Minister, Situmbeko Musokotwane, detailed the allocations. He stated that K5.0 billion would be dedicated to the procurement of medicines and medical supplies. “K718.2 million is for the procurement of medical equipment,” he noted, emphasizing the commitment to enhance healthcare resources. Additionally, K1.9 billion has been allocated for health infrastructure improvements. “To improve the quality of healthcare, I propose to allocate K156.9 million for the recruitment of 2,000 frontline health personnel,” Musokotwane added, highlighting government’s focus on strengthening human resources in the health sector. Read more: Zambia Monitor
ActionAid Zambia has expressed concern over the decline in the Education budget from 15.4 percent in 2024 to 14.5 percent in 2025. Reflecting on the 2025 national budget, Organization Country Director, Faides TembaTemba noted in a statement that this falls short of the UNESCO’s recommended 20 percent for developing countries and is misaligned with the Transforming Education Summit (TES) commitments for education financing. Ms. TembaTemba is also concerned that the health sector budget has reduced from 11.8 percent this year to 10.7 percent in 2025, which falls short of the Abuja declaration to ensure 15% of the total national budget is allocated to health. Meanwhile, Ms. TembaTemb urged government to reassess the national budget allocation for 2025 considering the ongoing El Nino drought and the possibility of the La Nino for 2024/2025 season, which has severely impacted agriculture, energy, health, and transportation. “The current 0.7% allocation from 0.8% for 2024 for Environmental Sustainability is inadequate and shows lack of consistency towards climate action for progressive realization of people’s needs, particularly 90% of smallholder farmers, SME’s, young women, children, and youths affected by recurrent droughts and floods,” Ms. TembaTemba stated. Read more: Money FM
Secretary to the Treasury says State-Owned Enterprises (SOEs) have represented an annual fiscal cost of approximately US$185.1 million between 2018 and 2022. In his presentation during the post budget symposium, Felix Nkulukusa said a preliminary evaluation of State-Owned Enterprises’ fiscal risks between 2018 and 2020 estimated annual liabilities amounting to US$ 3 billion, representing 14 percent of Gross Domestic Product (GDP). Mr. Nkulukusa revealed that the most significant fiscal risks with a potential financial impact are attributed to capital injections for State-Owned Enterprises with a weak financial footing including ZESCO. He noted that according to the World Bank assessment, State-Owned Enterprises represent considerable fiscal costs and risks while there is a lack of thorough monitoring of their financial records. Mr. Nkulukusa added that Government will revise the State-Owned Enterprise Policy to strengthen the regulatory framework, reduce fiscal risks and costs by establishing fiscal discipline rules. Read more: Money FM
In International News
BHP projects that global copper consumption will increase by an additional 1 million tonnes annually, on average, until 2035. This is largely due to the adoption of copper-intensive technologies, doubling the growth rate seen over the past 15 years. In a report released on Monday, the mining giant noted that global copper demand has historically grown at a compound annual rate of 3.1% over the last 75 years. However, the growth rate slowed to 1.9% in the 15 years leading up to 2021. “Looking ahead to 2035, we anticipate this growth rate to rise again to 2.6% annually,” the report reads. In 2023, total copper demand reached 31 million tonnes, comprising 25 million tonnes of copper cathode and 6 million tonnes of copper scrap. “As we look towards 2050, we foresee global copper demand increasing by 70% to reach 50 million tonnes annually. This will be driven by copper’s role in both current and emerging technologies, as well as the world’s decarbonization goals,” notes BHP’s chief commercial officer Rag Udd. Read more: Mining
Euro zone inflation fell to 1.8% in September, coming in below the European Central Bank’s 2% target, flash data from statistics agency Eurostat showed Tuesday. The reading was in line with the expectations of economists polled by Reuters, after annual inflation hit a three-year-low of 2.2% in August. The core inflation rate, which excludes more volatile energy, food, alcohol and tobacco prices, came in at 2.7%. It was forecast to remain unchanged from the August reading of 2.8%. Services inflation in the euro zone eased to 4% in September, down from 4.1% in August, the data showed. The figures come after September inflation eased below the 2% European Central Bank target in several key euro zone economies, including France and Germany. The harmonized inflation rate in Europe’s leading economy dropped by more than expected to 1.8% on an annual basis, preliminary data showed Monday. European Central Bank President Christine Lagarde on Monday said that policymakers were becoming more confident about inflation returning to the 2% target. Read more: CNBC
The Public Utilities Regulatory Commission (PURC) of Ghana has announced an upward adjustment of water and electricity tariffs. The Public Utilities Regulatory Commission (PURC) of Ghana has announced an upward adjustment of water and electricity tariffs. The new electricity and water tariffs will reflect an increase of 3.02% and 1.86% respectively, starting from October 1, 2024. This adjustment is part of the Commission’s regular quarterly review process, which aims to align tariffs with changes in key economic indicators such as the US Dollar/Ghana Cedi exchange rate, inflation, and natural gas costs. In a statement released on Saturday, September 28, the PURC attributed the tariff increases to several factors, including a 4.96% depreciation of the cedi against the dollar between the second and third quarters of 2024, as well as changes in inflation and gas prices. These factors have led to a revenue shortfall of GH₵173.98 million in the electricity sector and GH₵12.01 million in the water sector. Read more: Business Insider
At least five African nations are collaborating on what could become the world’s first joint “debt-for-nature” swap, aiming to raise over $2 billion to protect a coral-rich region of the Indian Ocean. At least five African nations are collaborating on what could become the world’s first joint “debt-for-nature” swap, aiming to raise over $2 billion to protect a coral-rich region of the Indian Ocean, according to a global conservation organization. Debt-for-nature swaps, a type of financial transaction in which a portion of a developing nation’s foreign debt is forgiven in exchange for local investments in environmental conservation measures, are gaining popularity among lower-income countries as a means to finance conservation efforts. In 2023, Gabon became the first African nation to launch a debt-for-nature swap, securing up to $450 million. Similar deals have been executed by countries like Seychelles, Belize, Ecuador, and Barbados, where debt was refinanced in exchange for commitments to protect their marine environments. Read more: Business Insider
Finally, Capital Markets News
In 123 trades recorded yesterday 27,899 shares were transacted resulting in a turnover of K314,408.54. The following price changes were recorded yesterday: +K0.04 in Chilanga Cement and -K0.01 in Standard Chartered Bank Limited. Trading activity was also recorded in AECI, British American Tobacco Zambia , CEC Zambia, Real Estate Investments Zambia, Standard Chartered Bank Limited, Zambia Breweries, Zambeef, Zambia Reinsurance, ZANACO and Zambia Sugar. The LuSE All Share Index (LASI) closed at 15,973.63 points, 0.01% lower than its previous day close. The market closed on a capitalization of K166,545,733,662.02 including Shoprite Holdings and K81,762,937,902.02 excluding Shoprite Holdings.
A total of 8 Govt Bond trades with a total quantity of K147,734,000 and turnover K122,924,760 were processed yesterday.