Story of the Day
Ethics and Investing are probably two words you won’t often find together. From scandals to pollution. Greedy executives to blatant rights violations. Corporations have carried out many environmental and social harms over the years in the name of profits. Traditional financial models have long focused almost exclusively on monetary factors. That’s to say that, If a project was expected to make money, it was a go! Even if it caused a greater cost to others. Because of this, regulations have been introduced overtime to ensure that corporations who tend tofocus exclusively on profitability, operate in a way that is aligned with the interests of other stakeholders. From minimum wages to pollution restrictions, these regulations have come to be fairly broad in their scope. However, while these rules can prevent blatantly harmfulactions, they’re many grey areas that regulations do not address. Read more
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Minister of Finance and National Planning Dr Situmbeko Musokotwane says government released K13.9 billion in October to finance public service delivery, out of which K1.4 billion was for debt service and other liabilities. In a statement, Dr Musokotwane said government also spent a total of K3.3 billion on costs relating to the Public Service Wage Bill. News Diggers
The Bank of Zambia (BoZ) treasury bill auction last week was oversubscribed after receiving bids amounting to over K2.44 billion against an offer of K2 billion.
The oversubscription entails demand for the government instruments issued was greater than the amount offered. According to the results of Treasury Bill Tender number 22/2022 held on November 3, 2022, issued by the central bank’s financial markets department, the total bids received amounted to K2,445.35 million (face value) and the allocation was K2,166.89 million (at cost). Read more: Zambia Daily Mail
Zambia is one of the best-performing countries in the region, driven by the single-digit inflation, stable currency and approval for an International Monetary Fund (IMF) programme, an international economist says. Currently, the country’s annual inflation rate is at 9.7 percent, and the Kwacha is trading in the range of K16 and K16.3 on the bid and offer respectively. Earlier in August, the country got the IMF board approval for a US$1.3 billion bailout package, an important step towards the national debt restructuring. Standard Chartered Bank chief research officer for Africa and Middle East, Razia Khan, said Zambia’s framework is being watched closely by other countries in the region to see how it will navigate through the debt restructuring process. Read more: Zambia Daily Mail
Government has directed the Zambia Information and Communication Technology Authority (ZICTA) to intensify periodic cost of service studies to ensure that pricing of mobile telecommunication services is cost reflective and affordable. Technology and Science Minister Felix Mutati however says the cost should be able to guarantee companies a return on investments. Mr. Mutati adds that government has directed intensified investigations to ensure that customers who are overbilled and experience drop calls are refunded. Read more: ZNBC
International Business and Finance
A resplendent gold bow tie, a focused stare, and a wry smile, Dr Akinwumi Adesina proudly steps onto the stage of the African Investment Forum to announce a record year: In 72 hours, the African Development Bank (AfDB) and its partners managed to mobilize $31bn in investment interest from African and global investors. Combined with $32.8bn from the rescheduled 2021 AIF—which took place virtually in March this year—the forum has doubled its capital mobilization with a total of $63.8 billion of investment interest in 2022. The president of the AfDB, who initiated the forum in 2018, did not conceal his joy following the announcement of a ‘record year’ in terms of investment. Read more: African Business
A research by global fintech think tank Findexable shows that Africa has the highest proportion of female board members at nearly 15%. The ‘Diversity for Growth Report’ examines the role that women play – or, rather, don’t play – in global fintech and how the industry can build more balanced, inclusive and representative businesses that are fit for the future. The research, which comprises data from just over one thousand of the world’s best-funded privately owned fintech firms, revealed that of the 1,000 top-performing fintechs in the FDR1000 index, just 16 were founded solely by women. For context: 911 were founded by men, and there are only 68 female CEOs in total.The research data released also reveals that women make up 11% of all board members and 19% of company executives. The majority of women (26%) in the sector are Chief People Officer or Head of HR, followed by Chief Marketing Officer and Chief Financial Officer. Read more: Business Insider
The stock market started the Biden era with a boom. But it heads into the midterm election looking more like a bust. Entering Monday, the S&P 500 advanced just 13.2% since President Joe Biden took office in January 2021. That marks the second-worst performance during a president’s first 1,022 calendar days in office since former President Jimmy Carter, according to CFRA Research. The struggles in the market are largely linked to high inflation, which has caused the Federal Reserve to launch a barrage of punishing interest rate hikes. Read more: CNN
The European Union has “serious concerns” about the U.S. Inflation Reduction Act, saying it breaches international trade rules, according to an official document seen by CNBC. The sweeping tax, health and climate bill was approved by U.S. lawmakers in August and includes a record $369 billion in spending on climate and energy policies. The landmark package comprises tax credits for electric cars made in North America and supports U.S. battery supply chains. European officials have acknowledged the green ambitions associated with the package, but they are worried about “the way that the financial incentives under the Act are designed,” the document, which will be presented to U.S. officials, says. The EU listed nine of the tax credit provisions that it has an issue with. Read more: CNBC
Capital Markets Report
In 70 trades recorded yesterday, 10,830 shares were transacted resulting in a turnover of K40,899.83.Trading activity was also recorded in Copperbelt Energy Corporation Zambia, PUMA, Real Estate Investment Zambia, Standard Chartered Bank Limited and Zambezi. The LuSE All Share Index (LASI) maintained its close at 7,233.54 points as there was no share price movement. The market closed on a capitalization of K72,417,985,445.77 including Shoprite Holdings and K37,635,300,005.77 excluding Shoprite Holdings.