Story of the Day
The confluence of technology, science and innovation at the country’s largest brewer, Zambian Breweries, has impressed Minister of Technology and Science Felix Mutati. During a tour of the company’s Mungwi Road plant in Lusaka the minister was marvelled by the digital transformation taking place. Manufacturing is a critical drive for creating entrepreneurs and other business opportunities, contributes 10% of GDP. The Zambian government’s ambition is that by 2030 manufacturing should add 30% to GDP. Mr Mutati acknowledged Zambian Breweries’ drive to create a future with more cheers through its steps to harness technology to improve efficiency and productivity; together with elimination of waste was highlighted through the tour. Read more
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As part of efforts to diversify the country’s economic mainstay from mining, Government will devise various measures that will increase agricultural exports to US$2 billion from the current US$756 million in the next five years. The planned increased exports are part of initiatives outlined in the recently launched Eighth National Development Plan (8NDP), which takes effect this year up to 2026. Zambia’s economic mainstay is copper, but the new dawn administration wants to ensure that agriculture thrives and contributes to job and wealth creation. To increase agricultural production and productivity, Government seeks to implement various interventions in the next five years, like ensuring a stable trade policy. Read more: Zambia Daily Mail
Bureax de Change Association of Zambia says the Kwacha is expected to continue appreciating against other convertible currencies and is anticipated to go into the K14 level to the United States (US) dollar. Association president Paul Kalumba attributed the continued strengthening of the local unit to market sentiment in favour of the Kwacha, more so following the approval of the International Monetary Fund (IMF) credit deal. Read more: Zambia Daily Mail
Finance Minister, Situmbeko Musokotwane, has dispelled assertions by a section of society that fertiliser subsidies have been removed. Dr. Musokotwane says government has not removed fertiliser subsidies, but has merely revised the list of beneficiaries to ensure only deserving farmers benefit from the subsidised fertiliser. He has further told ZNBC News in an interview that government is also making sure that the fertiliser is procured in an efficient manner and at a lower price. Read more: ZNBC
Zambia’s largest cement producer, Chilanga Cement Plc – formerly Lafarge – continues to take a negative cue from an ebb in construction pulse both domestically and regionally. This follows a cocktail of drivers ranging from the states suspension of an earlier aggressive infrastructure spend to dampened economic activity on account of a COVID19 pandemic. According to half year unaudited financials published in the press, the cement giant’s top line sagged 16% to K803million weighed by dampened real estate demand adding onto already existing pressure in the international market on the back of pricing uncompetitiveness as the Kwacha extends its bullish streak. Read more: The Business Telegraph
International Business and Finance
British Foreign Minister Liz Truss was named on Monday as the nation’s new leader, replacing scandal-scarred former Prime Minister Boris Johnson. Truss, 47, was picked by her ruling right-wing Conservative Party to be the UK’s third female prime minister — and the fourth leader of the party’s government since a general election in 2015. Read more: New York Post
OPEC said Monday it would reduce oil production next month, the cartel’s first output cut since the depths of the pandemic, as it braces for a global economic slowdown to hit demand. The Organization of the Petroleum Exporting Countries and allied oil producing nations, including Russia, agreed to shave 100,000 barrels per day off their production targets in October. Just a month ago, the OPEC+ group agreed to increase production in September by the same small amount — equivalent to about 0.1% of global demand — after coming under intense pressure from the United States and other big oil consumers to do more to bring down energy prices and inflation. Read more: CNN
Honda has struck a deal with Korean battery giant LG Energy Solution to build a $4.4 billion US factory to supply its electric vehicles. The partners haven’t announced where in the United States they’ll build the factory. They said in a joint news release Monday that they plan to begin construction in early 2023 to prepare for mass production by the end of 2025. Honda has produced cars such as the Accord sedan and the midsize CR-V at its factory in Marysville, Ohio, since 1982. Honda and LG Energy Solution said they picked the US because local production and a “timely supply of batteries” would best position them to succeed in the growing North American electric vehicle market. Read more: CNN
MTN Group Limited has announced an early settlement for its $300 million Eurobond debt, thus cutting down its group dollar-denominated debt by 35%. A statement explained that the move is part of MTN Group’s commitment to deleveraging its balance sheet, CEO Ralph Mupita said: “In line with our Ambition 2025 strategy, we are committed to deleveraging the balance sheet faster in line with our capital allocation framework. This week’s early settlement supports the delivery of this commitment as well as of the execution and delivery of our medium-term guidance to maintain the Holdco leverage below 1.5x.” Note that the $300 million is part of MTN Group’s $750 million Eurobonds which is due to mature in November 2024. Read more: Business Insider
Talks are underway between the Nigerian government, Binance Holdings Limited and Talent City over a planned establishment of a digital economic zone in the country. This is according to a statement by the Nigeria Export Processing Zones Authority (NEPZA), a government agency that licences, regulates and operates free trade zones. Part of the statement by NEPZA noted that when completed, the digital economic zone would be “the first Virtual Free Zone in West Africa similar to the Dubai Virtual Free Zone”. Read more: Business Insider
Capital Markets Report
In 100 trades recorded yesterday, 123,255 shares were transacted resulting in a turnover of K1,919,286. A share price gain was recorded in Zambeef of K0.01. Share price losses were recorded in CEC Africa on the quoted tier and Chilanga Cement of K0.01 and K0.01 respectively. Trading activity was also recorded in Bata, Copperbelt Energy Corporation, PUMA, Zambia Breweries, ZAMEFA, Zanaco, Zambia Sugar and ZAFFICO. The LuSE All Share Index (LASI) closed at 7,043.90 points, 0.23 points up from its previous close of 7,043.67 points. The market closed on a capitalization of K71,592,530,938 including Shoprite Holdings and K36,809,845,498 excluding Shoprite Holdings.
