Story of the Day
The Ministry of Green Economy and Environment has issued interim guidelines for the handling of carbon markets and trading in Zambia (the “Guidelines”). The Guidelines cover a broader range of eligible carbon projects, unlike the Forests Carbon Stock Management Regulations S.I No. 66 of 2021 (the “Forest Carbon Regulations”) that are specific to the regulation of forest carbon projects. The Guidelines have been issued ahead of a more detailed Climate Change Act expected to be enacted in the first half of 2023. The Guidelines provide preliminary administrative measures and procedures to guide the regulation and management of the carbon market in Zambia until the Climate Change Act is enacted. Read more
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Zambia Statistics Agency (ZamStats) has disclosed that the annual rate of inflation for December 2022 has increased by 0.1 percent to 9.9% from 9.8% recorded last month. Speaking during the monthly dissemination bulletin, Agency Interim Statistician General Mulenga Musepa attributed the increase in inflation rate to price increments in fuel and lubricants, as well as purchase of motor vehicles. Read more: Money FM
In the labyrinth of a delayed restructure, Zambia, on December 21 of 2022 was granted $100 million concessional credit through the World Bank’s International Development Association (IDA). It is 3 years now that Zambia commenced the debt restructure journey and barely four months since the International Monetary Fund (IMF) approved the Southern African nation and Extended Credit Facility (ECF) of $1.3 billion to aid balance of payment support in the quest to assist the copper producer restore fiscal fitness. Read more: The Business Telegraph
As the world aggressively decarbonizes to curb climate risk pressures, the base metal markets continue to take a positive cue from rising battery demand to power electric cars. Africa’s green metal producers Democratic Republic of Congo (DRC) and Zambia are poised to play a significant role in the supply of copper and cobalt which are key inputs in the electric vehicle battery manufacture. Power demand, is poised to widen from increased appetite from charging ports, a population boom and above all mining expansion activities in the years to come. Copperbelt Energy Corporation, a power transmission and distribution firm will seek to double its after tax earnings to $100 million by the year 2027, a forecast supported by growing factors on the demand side of the Southern African nations energy economics. Read more: The Business Telegraph
Amidst energy price pressures in Africa’s copper producer, Zambia, the Energy Ministry on December 27, announced an extermination of customs duty on petroleum products into 2023. This was contained in a communique from the energy authorities to the Oil Marketing Companies. The Zambian authorities, have amended the customs duty rate in Chapter 27 of the Customs and Excise Act Cap 322 from 25% to free rate (0%). This applies to importation of petrol and low sulphur gas oil and shall come into effect on 01 January 2023. Read more: The Business Telegraph
International Business and Finance
A third of the global economy will be in recession this year, the head of the International Monetary Fund (IMF) has warned. Kristalina Georgieva said 2023 will be “tougher” than last year as the US, EU and China see their economies slow. It comes as the war in Ukraine, rising prices, higher interest rates and the spread of Covid in China weigh on the global economy. In October the IMF cut its global economic growth outlook for 2023. Read more: BBC News
Sub-Saharan Africa’s recovery has been abruptly interrupted. Last year, activity bounced back, lifting GDP growth in 2021 to 4.7 per cent. But growth in 2022 is expected to slow sharply by more than 1 percentage point to 3.6 per cent as a worldwide slowdown, tighter global financial conditions, and a dramatic pickup in global inflation spill into a region already wearied by an ongoing series of shocks. According to World Bank, 29 out of 33 countries in the region with available data had inflation of over 5% in July, while 17 were in double digits. The number of countries in debt distress was little changed, while borrowing costs rose significantly. Read more: Business Insider
Africa’s market potential has not gone unnoticed throughout the year. As a matter of fact, you could say the exact opposite, as foreign investors and businesses have taken note and have become fully aware of the sort of wealth the continent has the potential to generate. As a result, Europe’s most successful economy, Germany plans to make huge investments on the continent come 2023. The news agency, Reuters ran a poll on members of the German-African Business Association, and the results showed that 43% of these businesses are planning to increase investment in the continent. The poll also showed that 39% of of the association’s members aim to keep their spending levels in Africa stable. Read more: Business Insider
Tesla’s stock is finishing out its tumultuous year with yet more turbulence: It’s up almost 6% Thursday, but still down more than 10% since last week. Year-to-date, the stock is down about 70%. Morgan Stanley analysts on Thursday said that the company’s sliding stock price represents a buying opportunity, but they cut its price target from $330 per share to $250. Tesla shares are trading at $122, with the stock up about 8% Thursday. Morgan Stanley still believes the company is somewhat undervalued as a result of the big recent sell-offs, citing its head start over the electric car competition, and potential tax advantages as a result of the Inflation Reduction Act passed earlier this year. Read more: CNN
Wall Street has said goodbye — and good riddance — to 2022, a year most investors would rather forget. All three major averages were down on Friday, clocking their worst year since 2008 and ended a three-year winning streak. The Dow fell 73 points, or 0.2% Friday, the last trading day of the year. In 2022, the Dow fell about 9%. The S&P 500 was 0.3% lower Friday, leaving it down about 20% for the year. Read more: CNN
Capital Markets Report
In 69 trades recorded on Friday, 2,080,629 shares were transacted resulting in a turnover of K5,317,827.90. A Share price loss of K0.01 was recorded in Bata. Trading activity was recorded in CEC Zambia, PUMA, Standard Chartered Bank Limited, Zanaco and ZAMEFA. The LuSE All Share Index (LASI) closed at 7,337.79 points, down from its previous close at 7,337.97 points. The market closed on a capitalization of 72,871,783,684.85 including Shoprite Holdings and K38,089,098,244.85 excluding Shoprite Holdings.