Good morning. Here’s what you need to know to start your day.
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Zesco signs $3.5bn deal with China’s CiEG for renewable energy production in Zambia
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Janet Yellen says OPEC+ production cut is an ‘unconstructive act’
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Puma Energy Zambia Plc resolved to recommend a dividend of K36.1 million for the year ended 31st December 2022
Story of the Day
US Vice President Kamala Harris praised the pioneering efforts of Zambian fintech company Lupiya in supporting climate-smart agriculture through innovative financing solutions. In a statement, Vice President Harris lauded Lupiya for its work in empowering smallholder farmers in Zambia to adopt environmentally sustainable practices while boosting economic growth. She emphasized the importance of such innovative approaches in addressing the global climate crisis and ensuring food security for future generations. Read more
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Zesco, Zambia’s state-owned power utility company, has signed a Power Purchase Agreement (PPA) with Integrated Clean Energy Power Company Ltd (CiEG), a subsidiary of China Huadian Corporation, to produce 2,400 Megawatts of renewable energy estimated at US$3.5 billion. This agreement will be rolled out in phases of 600-800MW over a 3-year period in 4 provinces beginning this year with 300mw in Southern Province and 300mw in Central Province. China Huadian Corporation is a global energy company and the third largest electricity power producer in the world, listed on Fortune 500. CiEG is an investment development and Mergers and Acquisitions (M&A) of international projects arm for China Huadian Corporation. This sizeable foreign direct investment (FDI) from China into Zambia is a testament to the reset and enhanced relations between the two countries for mutual benefit, which dates back to the two founding fathers; Chairman Mao and Dr. Kenneth Kaunda. Read more: Lusaka Times
Zambia and the United States yesterday signed a Memorandum of Understanding (MoU), which will set forth a direction for our commercial engagements, prioritise the key sectors that are critical to Zambia. Speaking at the at the commercial signing of the MoU, US Ambassador to Zambia Michael Gonzales said the agreement will catalyse the various elements across the U.S. government to enable the private sector to flourish, to trade, to invest, to create jobs. “I am thrilled to be here today, I am so pleased that we made it to this point of the MoU signing, and extremely excited by what we can accomplish together as we actualise this commercial MoU and make a reality of what we first envisioned some months ago,” Mr Gonzales said. Read more: Lusaka Times
Experts from five African countries, including Zambia, are meeting in Lusaka to develop a roadmap on the implementation of debt management strategies and policies. Debt management presents a challenge for Africa as it is a significant source of funding for economic growth and development. This is according to the United Nations Economic Commission for Africa (UNECA) Director- Macroeconomics and Governance Division, Adam Elhiraika. He stated that the meeting provides an opportunity to effectively enact budgetary protection measures. “Efficient and effective debt management will allow debtor countries to take action to avoid the legacy of ‘too little, too late’ sovereign debt management and restructuring,” Elhiraika said. Read more: Zambia Monitor
Finance and National Planning Minister Dr Situmbeko Musokotwane says government expected the country’s debt resolutions to move fast. In an interview, Dr Musokotwane wondered why the other parties were failing to deliver on their part despite government doing everything that was expected of it. “Guidelines were given and for us, we said since this is the only solution that is available, we will go for it. Therefore, we did the things that we were expected of the country, desirous of being assisted to resolve the debt under the common framework. Those were done very quickly by this government. Read more: News Diggers
The Zambia Consumer Association ZACA has expressed worry on the continued silence by the Zambia’s wholly owned Mobile Network Operator Beeline telecom Zambia to operate as Zedmobile Zambia regarding the commencement of operation. Speaking in an exclusive interview with the Zambian Business Times – ZBT – ZACA Executive Secretary, Juba Sakala said after the launch in December, 2022, consumers expected the company will commence operations as expected on the 31st of January. He said consumers are concerned as they don’t want what had happened to the previous company as they are now looking forward for the company to commence operations as soon possible and if possible they should call for a media briefing to give an update on what is happening as users are anxious to use the fourth mobile service provider. Sakala was of the view that there could be some challenges and logistics and other issues but being quiet is a source of concern when the consumers are highly anticipating the commencement of operations for the Zambian wholly owned company that they would want to exceptionally support. Read more: Zambian Business Times
Bank of Zambia Exchange Rates
Currency | Buying | Selling |
---|---|---|
USD | 20.7999 | 20.8499 |
GBP | 25.7586 | 25.8268 |
EUR | 22.6053 | 22.6680 |
ZAR | 1.1627 | 1.1664 |
In International Business News
Africa’s travel market is open and booming. This is a sentiment expressed by an estimated 600 exhibitors at this year’s World Travel Market Africa in Cape Town, South Africa. This after the industry sustained serious damage due to Covid-19. The meeting saw a 35% increase compared to last year, said Carol Weaving, Director of Reed Exhibition Africa. “This year we have 577 exhibitors which is a 35 per cent growth and what’s really exciting is that we are the only inbound show on the African continent and it goes to show that a lot of intra africa trade that is happening.” Meanwhile, Zimbabwe a destination known for diverse attractions like Victoria Falls predicts that by 2025 their tourism sector will reach a five billion US dollar growth mark. Read more: Africa News
Treasury Secretary Janet Yellen said the surprise OPEC+ oil production cut announced Sunday was an “unconstructive act,” which could hurt U.S. efforts to lower inflation. “I think it’s a regrettable action that OPEC decided to take. I’m not sure yet just what the price impact will be, I think we need to wait a little longer for, you know, to really assess that,” Yellen told reporters Monday following an event at Yale University in New Haven, Connecticut. Yellen also said the production cuts could, in the future, merit a reassessment of the current $60 per barrel price cap on Russian oil shipped in Western tankers. But she said that raising the cap was not necessary for now. Read more: CNBC
Tesla shares closed down 6% on Monday after the company’s quarterly deliveries report led some investors to worry that more price cuts will be needed to drive sales, eating into margins. Over the weekend, Tesla reported first-quarter deliveries of 422,875 electric vehicles and production of 440,808 cars. The record numbers represented 4% growth in deliveries from the prior period and followed repeated price cuts in the U.S., China and Europe. Read more: CNBC
Higher oil prices will challenge regional governments to make “tough decisions” on inflation, said Albert Park, chief economist at the Asian Development Bank. Most Asian economies are importers of oil, like Indonesia and those in central Asia, said Park. As a result, the latest sudden OPEC+ oil production cut could lead to a spike in prices, the economist added. “With the OPEC oil price increase and the expected rising demand coming from China, we could see oil prices go beyond our forecast of $88,” he told CNBC “Squawk Box Asia” on Tuesday. “That would put pressure on the region because higher oil, obviously, increase costs of production. They increase inflationary pressures as well.” This puts “a lot of pressure” on regional governments to make “some tough decisions about trying to control inflation and support economic recovery,” the economist added. Read more: CNBC
Kenya is exploring tax breaks to entice reluctant Western investors. Nairobi threw out the red carpet for US investors this week, despite the US administration complaining that corruption and a lack of transparency in tax policy inhibited investment in Kenya. These concerns were raised at the American Chamber of Commerce (AmCham) meeting in Nairobi, where President William Ruto was among the prominent speakers. My government is finalizing new tax policy guidelines that have gone through various stakeholder consultations, including inputs from AmCham. This policy that will enhance transparency in our tax regime will take effect by June and will be in place for at least three years,” President Ruto said. He also announced the government’s intention to repeal a 1.5 percent fee on digital services in exchange for the disputed global framework suggested by the Organization for Economic Cooperation and Development (OECD) on taxing multinational corporations, which includes a minimum rate of 15%. Read more: Business Insider
HSBC’s top brass defended their strategy Monday to frustrated shareholders in the lender’s largest market, as Europe’s biggest bank continued to face calls to be split up. At an informal shareholder meeting in Hong Kong, Chairman Mark Tucker and CEO Noel Quinn took questions from investors on issues ranging from how the bank was approaching demands for an overhaul of its business to its purchase of Silicon Valley Bank’s UK arm. In prepared remarks, Tucker and Quinn each reiterated the board’s recommendation that shareholders vote against a resolution on the docket for its annual general meeting in May that would force the bank to come up with a plan to spin off or reorganize its Asian business — the lender’s main source of profits. Read more: CNN
Puma Energy Zambia Plc held its 61st Annual General Meeting (AGM) on 30th March 2023 at Neelkanth Sarovar Premiere in Lusaka where reports and audited financial statements for the year ended 31st December 2022 were presented to the shareholders. Total company sales revenue increased by 49 per cent in 2022 compared to 2021. This was mainly attributed to the global recovery from COVID-19 and improved efficiency. The company leveraged its integrated supply chain to optimise throughput to its retail and Business–to Business segments at a time the global market was experiencing product scarcity. Aviation recorded a significant increase in revenue due to the easing of travel restrictions related to COVID–19. On 6th March 2023, the Board of Puma Energy Zambia Plc resolved to recommend a dividend of K36.1 million for the year ended 31st December 2022, which was approved at today’s Annual General Meeting. Read more
In 116 trades recorded yesterday, 41,495 shares were transacted resulting in a turnover of K115,740.65. A share price gain on K0.25 was recoreded in Zanaco. Trading activity was also recorded in AECI, CEC Zambia, Chilanga Cement, PUMA, Standard Chartered Bank Limited, Zambeef and Zambia Sugar. The LuSE All Share Index (LASI) maintainted its closed at 7,921.02 points 1.06% up from its previous close of 7,838.10 points. The market closed on a capitalization of K75,410,453,218.77 including Shoprite Holdings and K40,627,767,778.77 excluding Shoprite Holdings.
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