Story of the Day:
Airtel Zambia Plc has reported a drop-in earnings by 75.73% for its 2019 financial year, according to published financial statements from the company. The company sent the first signal to the market through a SENS announcement that was published on 5th March 2020. Read more
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Yields on Zambia’s dollar debt rose to a record to approach 25% after Fitch Ratings sounded the latest alarm on the southern African nation’s debt levels and expressed doubt it can secure an International Monetary Fund bailout. While Bwalya Ng’andu, the finance minister, announced measures to curb Zambia’s soaring government debt last month, his predecessor had made similar pledges and failed, according to Fitch. Read more: Bloomberg
Zambia’s mining investment arm ZCCM-IH has started buying gold from artisanal and small-scale miners in a bid to formalise the unregulated sector whose ranks have swelled worldwide as gold prices soar, it said on Friday. Read more: Reuters
U.S.-based Railnet International plans to invest an estimated $11 billion in a modern railway line and high speed trains linking Zambia, Zimbabwe and Mozambique, its chief executive said on Sunday. Read more: News Day
The African Development Bank (AfDB) has awarded Zambia a grant of US$1.5 million for technical assistance in the implementation of the Zambia Renewable Energy Financing Framework.The grant, part of the AfDB US $51.5 million committed investment to the renewable energy financing framework, is meant to assist capacity-building of financial institutions, namely the National Pension Scheme Authority (NAPSA) and Zanaco in renewable energy investment. Read more: News Diggers
The Lusaka South Multi – Facility Economic Zone (MFEZ) says it has actualized over 2 hundred and 87 million dollars since it’s inception in 2013. MEFZ business Manager Francis Kunda says the Zone has also attracted investment pledges worth over 1 point 3 billion dollars as at December 2019. Read more: ZNBC
President Edgar Lungu has called on Zambians and all government institutions to prioritize buying local products to promote the implementation of the “Buy Zambian Campaign” and grow the country’s local industry and ensure funds are retained in local hands. Read more: Zambian Business Times
Zambia has submitted her initial offer in the framework of the on-going services negotiation of the African Continental Free Trade Area (AfCFTA). Zambia’s offer to the AfCFTA includes liberalisation of commitments in business, Communication, transport, finance, tourism and travel related services. Read more: Lusaka Times
KPMG Featured Article
One might wonder why the big 4 Audit firms (KPMG, PWC, Deloite & EY) have invested huge sums of dollars in the technology sector; Artificial Intelligence to be precise. It has been noted that the firms listed above have resolved that technology could greatly enhance efficiency, revenues and most importantly enhance End-Customer benefits and the decision making processes. According to an article by Emerj (a renowned business analytics publisher and Researcher), all the big four firms are currently involved in some form of Artificial Intelligence Lab undertakings. Read more
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Oil prices crashed in Asia on Monday by around 30%, the steepest drop since 1991, in what analysts are calling the start of a price war. Top oil exporter Saudi Arabia slashed its oil prices at the weekend after it failed to convince Russia on Friday to back sharp production cuts. Read more: BBC News
The New York Federal Reserve is pumping in tens of billions of dollars of extra cash into the financial system in a bid to ease severe stress gripping global financial markets because of the coronavirus pandemic. The NY Fed announced Monday it is ramping up its overnight cash injections from at least $100 billion to at least $150 billion. The move comes after the Dow briefly plunged more than 2,000 points, or 8%. Read more: CNN
Citigroup, one of the largest dealers in the $6.6tn-a-day foreign exchange market, has confirmed it is severing ties with nearly two-thirds of the trading platforms it uses as part of an effort to cut costs. Read more: Financial Times
Britain is pressing ahead with plans for a new digital services tax focused on large US technology companies, despite complaints by UK-based groups that they risk being caught by the measure. The levy, due to take effect in April after inclusion in Wednesday’s Budget, is aimed at securing what critics claim are hundreds of millions of pounds that Silicon Valley companies avoid paying by diverting profits to low-tax territories such as Ireland. Read more: Financial Times
The plunge in oil prices has hit many emerging market currencies — and their central banks now face a “policy dilemma” of how to support their respective economies amid an expected slowdown in growth, an analyst said on Monday. “Central banks across emerging markets are, on the one hand, facing huge sell-offs in their currencies; and on the other hand, a slowdown in growth.” Read more: CNBC
Nigeria’s government disclosed plans to review the 2020 budget for necessary adjustments to revenue forecasts and sources, as oil revenue comes under pressure due to a dent on demand caused by the new coronavirus. There is also a possibility of devaluation of the naira. Read more: Ventures Africa
Capital Markets Report
In 2 trades recorded on Friday, 9,900 shares were transacted yielding a market turnover of K12,078. A share price loss of K0.01 was recorded in Copperbelt Energy Corporation. The LuSE All Share Index (LASI) closed at 4,260.56 points, 0.09% down from its previous close of 4,264.29 points. The market closed on a capitalization of K57,363,640,096 including Shoprite Holdings and K23,124,434,116 excluding Shoprite Holdings
Chart of the Day: