Good morning. Here’s what you need to know to start your day.
-
Government spends K11.8 billion in July, as debt arrears gulp K3.1 billion
-
OPEC+ maintains oil output
-
Real Estate Investments Zambia (REIZ) seeks to attain Real Estate Investment Trust (REIT) status
Story of the Day
Emtech, an African provider of central banking infrastructure, introduced its Central Bank Digital Currency (CBDC) Innovation kit last month. The kit caters to fintechs and financial service providers interested in experimenting with solutions and business models based on digital currencies pioneered by central banks. The New York-based business is today announcing a $4 million seed investment led by Matrix Partners India. It plans to further the development of this CBDC stack and that of its regtech solution. BTN.vc, VestedWorld, Equity Alliance, LoftyInc Capital, Level Up Ventures and Collide Capital are some of the other investors in the round. They join Emtech’s previous investors, including Noemis Ventures, Octerra Capital and 500 Global on its cap table. This round brings the four-year-old’s total investment to $10 million (including a $4 million pre-seed last year and a recent $2 million extension). Read more
In Local Business News Sponsored by
The Ministry of Finance and National Planning has announced that it released K11.8 billion to finance public service delivery in the month of July, 2023. Of this amount, K4.3 billion was released for the public service wage bill while K3.1 billion was spent on arrears and debt service (domestic and external). “In addition, we released K2 billion for the implementation of various government programmes and general operations, while K135.8 million was spent on roads infrastructure,” according to a statement issued on Sunday by the treasury department. The treasury released a total of K2.3 billion towards transfers and subsidies with notable expenditure items under this category, including, K471.2 million for the operations of hospitals and the government grant aided institutions and K448.1 million for school grants. Others included K300.6 million for the Food Security Pack and K217.9 million as Constituency Development Fund (CDF) for Secondary School & Skills Development Bursaries, among others. Read more: Zambia Monitor
The National Savings and Credit Bank (NATSAVE) has partnered with Zambia Postal Services (ZAMPOST) to roll out its Agency Banking innovation in the country. Bank Managing Director, Malcom Chabala, said that the financial institution recently launched the Agency Banking and wants to forge partnership that would help roll out the product into the market. Chabala told Zambia Monitor in an interview at the on-going 95th Agriculture and Commercial Show in Lusaka that the partnership with ZAMPOST was done with a realisation that the postal service institution had a wide network across the country. He said that this would give easy access of services to customers. “The way Agency Banking works is that we work with partners such as Individual shops, business centre which can then offer our services, we will support them with training and technology such that they be able to make bank transactions,” he said. Read more: Zambia Monitor
The 95th Agriculture and Commercial Show was officially inaugurated at Lusaka’s Show Grounds by President Hakainde Hichilema who took center stage to address the nation. During the event, the President called for increased productivity and value addition across all sectors of the economy, with a particular focus on the agriculture industry. Under the theme “Inclusive Economic Transformation,” President Hichilema highlighted the vital role of agriculture in the nation’s economic prosperity. He stressed the need for embracing mechanization and adopting technological innovations to enhance productivity and drive growth in Zambia. The President believes that such advancements are crucial for fostering prosperity and ensuring the country’s economic sustainability. With the increasing global concern over food insecurity, President Hichilema challenged Zambian farmers and other sectors to rise to the occasion by doubling their productivity. He urged them to view the challenging situation as an opportunity rather than a setback, given the ready market for the nation’s agricultural produce. The President expressed his confidence that with the right measures and dedication, Zambia could become a significant player in addressing global food demands. Read more: Lusaka Times
President Hakainde Hichilema has called on the World Bank Group to assist Zambia conclude its debt restructuring negotiations with its private creditors. President Hichilema said that the road leading to clinching the debt deal was difficult especially on the citizens, hence the need to bring solutions. President Hichilema says he wants to see a speedy conclusion with creditors so that the benefits can start to show and trickle down to ordinary citizens to appreciate the process. He was speaking when he met World Bank Director for Malawi, Tanzania, Zambia and Zimbabwe Natahn Belete and newly appointed World Bank Country Manager for Zambia Achim Fock at Statehouse. Read more: Lusaka Times
Bank of Zambia Governor Dr Denny Kalyalya says Africa has for the past four years faced several shocks, including COVID-19 and adverse climate and commodity price shocks which have affected economies. And Finance Minister Dr Situmbeko Musokotwane says African countries need to grow their economies in order to lessen the impact of external shocks. Meanwhile, International Monetary Fund Director of the African Department Abebe Selassie says the continent needs to take concrete steps to mitigate the effects that the exchange rate depreciation can have on vulnerable households. Read more: News Diggers
Bank of Zambia Exchange Rates
Currency | Buying | Selling |
---|---|---|
USD | 19.3627 | 19.4116 |
GBP | 24.7455 | 24.8157 |
EUR | 21.3474 | 21.4032 |
ZAR | 1.0473 | 1.0508 |
In International Business News
An OPEC+ ministerial panel which met on Friday made no changes to the group’s current oil output policy after a Saudi decision to extend its voluntary production cut into September helped oil prices rally further. The panel, called the Joint Ministerial Monitoring Committee, can call for a full meeting of the Organization of the Petroleum Exporting Countries (OPEC) and allies led by Russia, known as OPEC+, if warranted. Oil prices rose more than 14% in July compared with June, the biggest monthly percentage increase since January last year, as tighter supply and rising demand outweighed concern that interest rate hikes and stubborn inflation could hit economic growth. “The committee will continue to closely assess market conditions,” an OPEC statement issued after the online meeting said, adding that the panel urged members to achieve full compliance with output cut pledges. Read more: Reuters
President Joe Biden is expected to issue his long-awaited executive order to screen outbound investments in sensitive technologies to China early next week, according to people familiar with the matter. A White House spokesman declined to comment. The goal of the order is to prevent U.S. capital and expertise from accelerating the development of technologies that would support China’s military modernization and threaten U.S. national security. The order is expected to target U.S. private equity, venture capital and joint venture investments in China in semiconductors, quantum computing and artificial intelligence. Most investments captured by the order will require that the government be notified about them. Some transactions will be prohibited, sources have said. Read more: Reuters
The economy is getting a boost from Bidenomics and a bulging federal budget deficit, simultaneously fueling hopes the US will avoid a recession while fanning fears it will be stuck with too much debt and too-high inflation. A trio of legislation championed by President Joe Biden – stepped-up infrastructure spending, increased investment in a green economy and a build-up in semiconductor manufacturing – helped galvanize demand in the second quarter and is likely to have a bigger impact going forward. Economic growth has also been unexpectedly goosed by a widening of the federal government’s budget deficit, driven in part by outsized Social Security payments and a delay in income tax payments by California businesses and residents. Read more: Yahoo Finance
US Credit card debt hit $1 trillion for the first time on record, according to new data, a troubling development as interest rates and delinquencies also rise. Total balances on credit cards and other revolving accounts reached $1 trillion the week of July 26, up from $998 billion the prior week, the Federal Reserve Bank of St. Louis reported Friday. That’s the highest level on record and $193.4 billion more than the start of the year and $264 billion above the $736 billion in April 2021, the lowest level since the onset of the pandemic. The increase in indebtedness comes as interest rates on credit cards remain near 40-year highs and delinquencies, especially among younger borrowers, increase. And with the federal student loan forbearance set to end this fall, millions of Americans may find themselves relying on credit even more. Read more: Yahoo Finance
Further to the Cautionary Announcement made on 22 May 2023, the Board of Directors (the “Board”) of Real Estate Investments Zambia Plc (“REIZ” or the “Company”) wishes to inform its shareholders (“Shareholders”), and the market that the Company intends on applying and subsequently attaining Real Estate Investment Trust (“REIT”) status (“the Transaction”). Further, the Board intends to publish a Circular to REIZ Shareholders, in line with the Listing Requirements (the “Listing Rules”) of the Lusaka Securities Exchange (the “LuSE”) on or after 31st August, 2023. The Circular will provide details of the REIT status outlined in this announcement. Read more
In 54 trades recorded on Friday 7,502 shares were transacted resulting in a turnover of K47,516.10.Trading activity was recorded in CEC Zambia, Zambeef, ZANACO and Zambia Sugar. The LuSE All Share Index (LASI) maintained its close at 8,365.80 points. The market closed on a capitalization of K77,346,471,095.47 including Shoprite Holdings and K42,563,785,655.47 excluding Shoprite Holdings.