Good afternoon. Here’s what you need to know
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Bank of Nevis sues Zambian government over Investrust Bank liquidation
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Zambia, DRC form committee to implement resolutions
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US federal deficit grows
In Local Business and Finance News
Bank of Nevis International Limited, a 24.8 percent shareholder in Investrust Bank Plc, has filed a lawsuit against the Zambian government, challenging the bank’s compulsory liquidation. The lawsuit seeks a judicial review and an order compelling the Minister of Finance and National Planning, Situmbeko Musokotwane, to establish an ad hoc tribunal. This tribunal would allow the shareholder to contest the liquidation decision. The legal action, represented by Chibesakunda & Co. Advocates, names the Minister of Finance, the Attorney-General, and the Bank of Zambia as respondents. The applicant argues that the Minister failed to comply with Section 139(1) of the Banking and Financial Services Act (BFSA) by not convening a tribunal and neglected to set rules under Section 138 of the BFSA for appealing such decisions. The shareholder is seeking an order of mandamus to compel the Minister to establish an ad hoc tribunal and to create rules for notifying appeals. If granted leave to commence judicial review proceedings, the compulsory liquidation and asset sale of Investrust Bank Plc would be halted until the tribunal’s final determination or further court order. Read more: Zambia Monitor
Government has received over US$9.9 million from the African Risk Capacity which the Disaster Management and Mitigation Unit (DMMU) will disburse as Emergency Cash Transfer (ECT) in 15 districts. The ECT programme targets 462,575 people who are not on the Social and Drought Emergency Cash Transfer programme being implemented by the Ministry of Community Development and Social Services. DMMU National Coordinator, Gabriel Pollen, said the beneficiary districts were located in Central, Eastern, Lusaka and Southern provinces. Government received a drought insurance payout amounting to over US$9.9 million from the African Risk Capacity. “All these interventions are meant to ensure that no citizen in the country dies of hunger during this drought,” Pollen said. He said this when he addressed the media in Lusaka on Monday. Read more: Zambia Monitor
Zambia and the Democratic Republic of Congo – DRC – have formed a committee that will ensure that the resolutions of the meeting between the two countries regarding the operations of the borders are respected. Among the resolutions is for Zambia to open the borders and for the DRC to allow goods from Zambia without restriction. According to a Communiqué signed by the two countries, the committee will have to report back on progress made. Yesterday, Commerce Minister, Chipoka Mulenga and Copperbelt Minister Elisha Matambo were in Lubumbashi, to meet the DRC Minister of External trade Julien Paluku over the closure of the borders between the two countries. The DRC had banned Zambian cement, bread and some beverages from entering their country which led to protests, prompting the closure of Kasumbalesa, Mokambo and Sakania border. Read more: ZNBC
Zambeef Products PLC says it will inform the market through the correct channels should the sale of its Chiawa Farm be concluded. Zambeef Executive for Corporate Affairs and Sustainability Ezekiel Sekele says the company is aware of recent media commentary regarding the sale of its Chiawa farm, which has been on offer for some time now. Government recently disclosed that it had purchased Zambeef’s Chiawa Estate Farm in Kafue District at $13.5 million and handed it over to the Zambia National Service (ZNS) and Zambia Correctional Service (ZCS) for its management. This move has, however, been criticised by many stakeholders who have questioned government’s decision to spend such a large amount of money on the farm. Read more: News Diggers
The National Pension Scheme Authority (NAPSA) Director General Muyangwa Muyangwa says the Authority has disbursed 35 million dollars out of the total $300 million dollars towards the Ndola Dual Carriage Way construction. Responding to a Zambian Business Times (ZBT) query on the update on the construction of the road, Muyangwa said the project is advancing, and concrete visibility is expected by the end of this year. “We have disbursed $35 million dollars out of the $300 million, we are still quite a long way to go, but we are happy with the progress reports that we are receiving, we should be able to start seeing a concrete road as we approach the end of the year in some of the segments,” he said. Read more: Zambian Business Times
In International News
The U.S. government recorded a $244 billion budget deficit for July, up 10% from a year earlier, but accounting for calendar differences, the gap would have been $45 billion narrower, the Treasury Department said on Monday. The Treasury said last month’s deficit climbed $23 billion from the $221 billion deficit recorded in July 2023. Economists polled by Reuters had projected a $242 billion deficit for July. The nominal increase was largely the result of lower-than-usual benefits outlays last July – for Medicare in particular – because those payments were made in June 2023 due to the beginning of last July falling on a weekend. Taking those and other adjustments into account, the Treasury said last month’s deficit would have been 16% below the July 2023 gap. July receipts were $330 billion, up 20% from a year earlier, but adjusting for deferred tax receipts would have been up 12%. Read more: Reuters
Israel’s credit rating was downgraded by Fitch Ratings Monday, after the agency cited concerns around the ongoing war with Hamas and geopolitical risks. Fitch kept a negative outlook on the country’s credit, meaning it could cut the rating again in the future, as it notched down the credit rating from “A+” to “A.” The downgrade underscores the financial toll of the war, which has also seen tens of thousands of people killed and has shaken the region and the world. Analysts from Fitch said the “the conflict in Gaza could last well into 2025,” and there are risks of the conflict spreading. “The downgrade to ‘A’ reflects the impact of the continuation of the war in Gaza, heightened geopolitical risks and military operations on multiple fronts,” Fitch said in a statement. Read more: CNN
Barrick Gold stands ready to be a partner in the Cobre Panama copper mine once the Panamanian government decides on the disputed asset’s future, Mark Bristow, CEO of the Canadian gold and copper mining company, said on Monday. The mine, owned by First Quantum Minerals, has been under dispute since November when protests led to the mine’s closure. The new government, led since July by President Jose Raul Mulino, has said the future of the mine – which accounted for 1% of global copper output and 5% of Panama’s GDP – will be decided next year. “At the end of the day, it is the Panamanian government that has to decide what it wants to do with this asset, and we of course, stand available to be considered as a potential partner sometime in the future,” Bristow told Reuters at his Toronto office. First Quantum initiated proceedings last year against Panama at the International Court of Arbitration in Florida, seeking $20 billion over the mine shut-down. First Quantum and the Panamanian government did not immediately respond to requests for comment. Even as demand for copper assets heats up among big miners, Bristow said Barrick will take a conservative approach to deal-making and remains wary of paying a premium, despite a recent surge in copper prices. Read more: Mining
Kenya’s finance ministry is working to reinstate several tax measures lawmakers were compelled to drop following weeks of deadly protests championed by the country’s young population. Kenya’s finance ministry is working to reinstate several tax measures lawmakers were compelled to drop following weeks of deadly protests championed by the country’s young population. These taxes, originally part of the Finance Bill 2024 and intended to generate around 344 billion shillings ($2.7 billion) in the current fiscal year, were scrapped after demonstrations resulted in over 61 deaths and led President William Ruto to dismiss his entire cabinet, Bloomberg reported. Read more: Business Insider
Finally, Capital Markets News
In 103 trades recorded yesterday, 20,841 shares were transacted resulting in a turnover of K181,512.23. The following price changes were recorded yesterday:+K0.28 in Standard Chartered Bank Limited. Trading activity was also recorded in Bata, CEC Zambia, Chilanga Cement, PUMA, Real Estate Investments Zambia, ZCCM, Zambeef, ZANACO, and Zambia Sugar. The LuSE All Share Index (LASI) closed at 14,482.90 points, 0.73% higher than its previous day close at 14,378.52 points. The market closed on a capitalization of K118,576,523,830.92 including Shoprite Holdings and K75,098,167,030.92 excluding Shoprite Holdings.
2 Govt Bond trades with total quantity K1,647,000 and turnover K1,119,550 were processed yesterday.
