Good morning. Here’s what you need to know to start your day.
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Zambia refuted a Western media report that it does not support China’s call for the World Bank and other multilateral lenders to join Zambia’s debt restructuring process.
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Brexit hit UK investment by £29 billion
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In the combined week of January and February trading on LuSE, the bond market completely dominated the equity market
Story of the Day
Stanbic Bank Zambia Limited has launched Instant Money (IM), their flagship money transfer solution, to enhance seamless person-to-person payments direct to any mobile number in the country at a flat rate of only K11 per transaction. In a statement in Lusaka, Stanbic Head of Digital and e-Commerce, Mwila Chibela, announced that the money transfer product was being reintroduced on the market with new features that allow customers the ability to seamlessly and securely move funds from Stanbic bank accounts to any mobile number anywhere in the country. Read more
In Local Business News Sponsored by
The Zambian government on Monday refuted a Western media report that it does not support China’s call for the World Bank and other multilateral lenders to join Zambia’s debt restructuring process. Zambian Minister of Finance and National Planning Situmbeko Musokotwane said that contrary to the Financial Times report, which was based on a recent interview with him, the southern African nation is “in no position to reject any proposals between China and the World Bank.” “The headline did not accurately reflect the minister’s comments or Zambia’s position,” he said in a statement, while expressing satisfaction that the Financial Times has corrected its misrepresentation in an updated version of the story. Read more: China Org
The Zambian Mission in South Africa is engaging private sector players in that country interested in importing various products from Zambia. Zambia’s Acting High Commissioner to South Africa Inonge Mwenya says some companies in that country are interested in Non Traditional Exports. Mrs. Mwenya says the mission has seen a rise in demand for Zambian products through increased interest expressed by various companies. Read more: ZNBC
Minister of Energy Hon. Peter Chibwe Kapala has announced that blended fuels are coming to Zambia soon as another option to reduce fuel pump prices in the country. Speaking about the delay in the availability of blended fuels, Minister Kapala said, “The pricing mechanism for the blended fuels was still being developed by The Energy Regulation Board (ERB). They are now done and details will be availed to the public shortly. This will trigger the actual modelling of fuel blending and the roll-out of blended fuels in Zambia.” Read more: Lusaka Times
African, including Zambian lenders have been urged to explore blended finance to help de-risk agricultural transactions. This will reduce transaction costs and attract private financing by improving the risk-return ratios, according to the global experts during a panel session at the second international summit on food production in Dakar. The discussions come in the wake of supply chain disruptions as a result of Covid-19 pandemic, the war in Ukraine, rising inflation, high commodity prices that have led to increased food and nutrition insecurity. Trade and Development Bank head Admassu Tadesse said in statement on Monday that financing agriculture was not as risky as was often perceived. Read more: Zambia Monitor
Copperbelt Energy Corporation (CEC) has projected increased power demand both from Zambia and Congo DR due to the mines’ plans to implement new and expand existing projects. Speaking in an interview after the just ended mining Indaba, CEC Managing Director Owen Silavwe said the anticipated increased power demand was good for business. Read more: News Diggers
The Zambia Institute for Policy Analysis and Research (ZIPAR) has warned that the increase in the Statutory Reserve Ratio (SRR) will lead to a reduction in the Gross Domestic product. The Bank of Zambia (BOZ) recently announced an increase in the minimum Statutory Reserve Ratio by 2.5 percentage points to 11.5 percent from 9 percent. Read more: News Diggers
In International Business News
Brexit has dealt the UK economy a “productivity penalty” of £29bn, or £1,000 per household, a Bank of England policymaker has said. Jonathan Haskel, an external member of the Bank’s monetary policy committee, said a wave of investment “stopped in its tracks” in 2016 following the vote. He said the UK had “suffered much more” of a productivity slowdown than other large economies because of Brexit. The Treasury said it did not recognise Mr Haskel’s figures. The Bank of England declined to comment. Read more: BBC News
African countries are at the verge of missing the targets set out in the 2030 Sustainable Development Goals (SDGs) and 2063 agenda if action is not taken to address poverty and inequality levels on the continent. The United Nations Economic Commission for Africa (UNECA) Acting Executive Secretary Antonio Pedro said the risks of missing poverty and inequality targets set out in the 2030 agenda for SDGs and agenda 2063 “The Africa we Want” was higher than it had never been before. Read more: Zambia Monitor
Engen Petroleum, a South African oil firm that specializes in downstream refined petroleum products and associated companies, and Vivo Energy, a British downstream petroleum company with subsidiaries and operations in 23 countries across Africa, have merged their African operations to form one of the continent’s largest energy distribution firms. Read more: Business Insider
The first round of the Strategic Trade and Investment Partnership (STIP), which will serve as the foundation for upcoming bilateral negotiations, has been completed between Kenya and the United States. The five days of negotiations for the free trade agreement are expected to produce results, according to the delegation from Kenya, led by Trade Principal Secretary Alfred K’Ombudo. Read more: Business Insider
Finally, Capital Markets News
In a combined week of January and February trading on the Lusaka Securities Exchange, we analyze the weeks trading activity as two separate months. In regards to the end of January the Bond market recorded a 100% score. Regarding the beginning of February trading the bond market recorded a 100% score as well meaning that as a combined week of trading the bond market completely dominated the equity market as it recorded bonds of total face value of K1,311,380,000 were transacted in 58 trades, resulting in a market value sales of K801,313,330. Read more
In 64 trades recorded yesterday, 22,733 shares were transacted resulting in a turnover of K65,598.66 .A share price gain of K0.01 was recorded in Zambeef. Trading activity was also recorded in British American Tobacco Zambia, CEC Zambia, Chilanga Cement, Madison Financial Services, PUMA, Zanaco and Zambia Sugar as well as CEC Africa on the quoted tier. The LuSE All Share Index (LASI) closed at 7,201.12 points up by 0.01% from its previous close at 7,200.43 points. The market closed on a capitalization of K72,276,851,485.86 including Shoprite Holdings and K37,494,166,045.86 excluding Shoprite Holdings.
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