Good morning. Here’s what you need to know
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Zambia, Zimbabwe Face Wake-Up Call After Kariba Dam Water Levels Plunge, Minister Says
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Kalengwa mine reopened after being closed for 46 years
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Zambian Kwacha expected to weaken against US dollar amid thin inflows
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Chinese President Xi tells Biden he’s ‘ready to work’ with Trump
In Local Business and Finance News
By Mwelwa Kenneth Chibesakunda MBA, Lusaka, Tuesday, 19 November 2024 – The inaugural Zimbabwe-Zambia Energy Projects Summit, held in Victoria Falls, Zimbabwe, brought together key stakeholders to discuss the future of energy in the region. The summit aimed to promote cooperation, innovation, and investment in the energy sector, focusing on renewables, grid modernization, and energy access. Hon. Makozo Chikote, Zambia’s Minister of Energy, emphasized the need for a diversified energy mix, highlighting the country’s abundant solar, hydro, and wind resources. Zambia’s Integrated Resource Plan (IRP) aims to increase the share of renewable energy sources and reduce dependence on hydroelectric power. Chikote stressed the importance of private sector participation and innovative financing solutions to drive energy development. Hon. Edgar Moyo, Zimbabwe’s Minister of Energy and Power Development, outlined the country’s vision for universal access to modern, reliable, and affordable energy. Zimbabwe’s National Renewable Energy Policy and Biofuels Policy aim to increase the share of renewable energy in the national energy mix. Moyo highlighted the need for grid modernization, energy efficiency, and regional cooperation to promote energy security. Read more on Financial Insight
President Hakainde Hichilema on Monday officiated the groundbreaking ceremony of the Kalengwa Mine in Mufumbwe District, marking a significant milestone for Zambia’s mining sector. The mine had been closed for 46 years due to protracted legal battles, leaving local communities in poverty while valuable mineral resources remained untapped. Speaking at the event, President Hichilema described the occasion as a proud moment for North-Western Province, Zambia, and the global mining community. “This mine remained closed for 46 years due to legal challenges, leaving the local population to endure acute poverty and deprivation. Today, we turn the page,” he said. He commended the partnership between Euro Africa and Moxico Resources Limited, saying that the redevelopment of Kalengwa Mine underscored Zambia’s position as a premier mining investment destination. He revealed that the mine had already created over 265 jobs, with a focus on youth employment, and was projected to generate an additional 500 jobs during its construction and operational phases. Euro Africa Board Chairperson, Allan Davies, announced an initial investment of US$20 million in production. Read more: Zambia Monitor
The Zambian government has officially launched the 2023 Zambia Education Curriculum Framework, aiming to deliver high-quality, inclusive education to all citizens. Minister of Education, Douglas Syakalima, described the new curriculum as a significant milestone in the government’s efforts to improve education in the country. Speaking at the event, held on Friday at the Radisson Blu Hotel in Lusaka, Syakalima highlighted key changes designed to strengthen the education system. These included: 1. Competence-Based Approach: The new curriculum introduces a competence-based approach to learning, focusing on enhancing students’ skills and preparing them for global competitiveness. 2. Restructuring of Educational Levels. 3. Secondary School: Advanced-level education would now be offered as Forms 5 and 6, while ordinary-level secondary education has been reduced to four years (Forms 1–4). 4. Primary School: Primary education would span six years, from Grade 1 to Grade 6. 5. School-Based Assessments (SBA): SBAs would now be used alongside traditional exams to better gauge learning outcomes. Read more: Zambia Monitor
The Zambian Kwacha is expected to weaken further against the United States dollar in the coming days, as demand-side pressures persist due to limited foreign currency inflows. This comes after Friday’s market session saw the local currency decline against the US dollar, with high demand and limited supply continuing to dominate, according to the daily market report from Absa Bank Zambia. “In the morning, the local unit’s interbank rate was quoted at K27.450/27.500 on the bid and offer, respectively, and remained unchanged for the rest of the trading session,” the report noted. Looking ahead, Absa Bank predicts that the Kwacha would continue to weaken against the US dollar, succumbing to demand pressures amid thin foreign currency inflows. Read more: Zambia Monitor
A plunge in water levels at the world’s largest man-made reservoir, which has left Zambia and Zimbabwe without power for hours, shows why they need to diversify their energy sources, according to a top official. “The over-dependence on hydropower has exposed the vulnerability of the energy mix,” Zambia’s Energy Minister Makozo Chikote said. “This has been a wake-up call that has taught us to start thinking of alternative sources,” he said at an energy summit Monday held in the resort city of Victoria Falls. Zambia and Zimbabwe rely on the Kariba Dam for most of their electricity. But a severe drought has reduced water available for power generation to 2.4%, compared with 15.5% a year earlier, according to the Zambezi River Authority, which manages water allocations between the two nations. Currently, Kariba is only producing about a 10th of its installed capacity of 1,050 megawatts. That’s left Zambia and Zimbabwe enduring hours-long power outages hindering industries such as mining and agriculture and curtailing economic growth. To address the shortfall, Zambia is seeking to ramp up its use of solar power, Chikote said. Read more: Bloomberg
In International News
Chinese President Xi Jinping has held his final meeting with his outgoing counterpart in the United States, Democrat Joe Biden. But Xi’s words on Saturday seemed directed not simply at Biden but at his Republican successor, returning President Donald Trump. In his encounter with Biden on the sidelines of the Asia-Pacific Economic Cooperation summit in Lima, Peru, Xi emphasised the importance of the US and China maintaining “mutual respect”. While Xi did not mention Trump by name, he gave a nod to the incoming US president’s victory in the November 5 election. “The United States has recently concluded its elections. China’s goal of a stable, healthy and sustainable China-US relationship remains unchanged,” Xi said. Read more: Al Jazeera
World leaders have arrived in Rio de Janeiro ahead of the G20 Summit, hosted by Brazil’s President Luiz Inácio Lula da Silva. The summit comes at a challenging time, with ongoing wars in Ukraine and the Middle East and the recent U.S. presidential election victory of Donald Trump. Brazil has welcomed leaders such as South African President Cyril Ramaphosa, Italy’s Prime Minister Giorgia Meloni, and UAE President Mohammed bin Zayed Al Nahyan. Russian President Vladimir Putin is absent, represented instead by Foreign Minister Sergey Lavrov. The summit is expected to focus on social issues, including Lula’s proposal for a Global Alliance Against Hunger, a key priority for Brazil. However, global tensions and differing national interests may hinder consensus on contentious issues like the wars or a proposed global tax on the superrich. Read more: Africa News
Goldman Sachs has forecast the S&P 500 index would reach 6,500 by the end of 2025, joining peer Morgan Stanley, on the back of continued growth in the U.S. economy and corporate earnings. The Wall Street brokerage’s target implied an upside of 10.3% from the index’s last close of 5,893.62. On Monday, Morgan Stanley also forecast the benchmark index would hit 6,500 by the end of next year. It estimated the recent broadening in U.S. earnings growth would continue in 2025 as the Federal Reserve cuts interest rates into next year and as business cycle indicators improve further. Goldman said the so-called ‘Magnificent 7’ stocks – Amazon, Apple, Alphabet, Meta Platforms , Microsoft, Nvidia, and Tesla collectively will outperform the rest of the 493 companies in the benchmark index next year. However, the ‘Magnificent 7’ stocks will outperform by about 7 percentage points only, the slimmest margin in seven years, Goldman said in a note dated Monday. Read more: Reuters
Boeing will lay off more than 2,500 workers in the U.S. states of Washington, Oregon, South Carolina and Missouri, according to federally required filings posted on Monday and a union official, as part of the debt-heavy U.S. planemaker’s plan to cut 17,000 jobs, or 10% of its global workforce. Nearly 2,200 layoff notices went to workers in Washington and another 220 in South Carolina, the two states where Boeing builds commercial airliners. Boeing declined to comment on the layoffs on Monday. The aerospace giant started telling affected U.S. workers on Wednesday that they will stay on Boeing’s payroll until Jan. 17, to comply with federal requirements to notify employees at least 60 days prior to ending their employment. News that Boeing would send out the Worker Adjustment and Retraining Notification (WARN) in mid-November was widely expected. Another round is expected in December. Boeing could also use workforce attrition, selective hiring and sales of subsidiaries to reduce workforce. Read more: Reuters
Finally, Capital Markets News
In 97 trades recorded yesterday 76,334 shares were transacted resulting in a turnover of K350,878.32. The following price changes were recorded yesterday: -K0.50 in AECI, -K0.62 in CEC Zambia and -K0.01 in ZANACO. Trading activity was also recorded in Airtel, Chilanga Cement, PUMA, Standard Chartered Bank Limited, Shoprite, Zambia Breweries, Zambeef, ZAMEFA, Zambia Sugar as well as CEC Africa on the quoted tier.
The LuSE All Share Index (LASI) closed at 15,752.58 points 1.45% lower than the previous trading day close. The market closed on a capitalization of K205,486,180,288.41 including Shoprite Holdings and K80,485,904,488.41 excluding Shoprite Holdings.
A total of 4 Govt Bond trades with a total quantity of K30,349,000 and turnover K24,127,120 were processed yesterday.
