Story of the Day:
Credit is essential for the economy to function well. It funds new investments and allows people to purchase houses, cars, and other items. Of course excessive lending and borrowing usually ends up in financial crisis however, in principle, credit availability is good for economic development. Domestic banks, by financing investment, play a pivotal role in increasing employment, providing efficiency and productivity and inducing growth in an economy. Read more
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A group of Zambia’s international creditors said on Friday the country would need to provide more details on its recently-agreed IMF support programme and its own economic plans if the two sides were to strike a debt relief deal. The group, made up of international funds that own the country’s now-defaulted bonds, said it was also crucial that the likes of China, which has also leant heavily to copper-rich Zambia, provided the same degree of debt relief. Read more: Reuters
Energy Minister Peter Kapala has appointed seven new board members for the Energy Regulation Board. According to a statement issued in Lusaka today, Mr Kapala says Reynolds Bowa will serve as Board Chairperson. Others appointed to the board are Banji Kalenga, Michael Kachumi, Karen Banda, Sitwala Nangalelwa, Noel Nkoma and Gilbert Phiri.The Minister says he expects the newly unveiled board to provide strategic policy direction to the Energy Regulation Board Management. Read more: Lusaka Times
Government says plans are underway to start blending locally produced ethanol with petrol to in 2022. And Energy Minister Peter Kapala says Indeni Oil Refinery Company will be used to get the ethanol and Petrol for blending. Mr. Kapala says the technology will help reduce the pump prices of fuel and help save on the foreign exchange spent on importing fuel. Read more: ZNBC
Government and labour unions have agreed to engage cooperating partners in resolving challenges faced by parastatal companies. Labour and Social Security Minister Brenda Tambatamba says Government will seize any opportunity to work with cooperating partners to ensure challenges faced by parastatal companies are resolved. Ms. Tambatamba said this during a media briefing in Lusaka today. Read more: ZNBC
International Business and Finance
Toyota has announced that it will extend production stoppages at some factories in Japan as it continues to feel the impact of supply chain issues. The world’s largest carmaker said its components factories in South East Asia had faced disruptions due to the Covid-19 pandemic. Land Cruiser and Lexus production will be hit by the delays. The company said that lost production from the latest halts will total about 14,000 vehicles in December. Read more: BBC News
With just a few weeks left till the end of what has been an eventful 2021, a lot of people are already wondering what 2022 would be like for sub-Saharan Africa. Well, first it’s going to be a new year! And then you should expect the usual economic and political tensions, more health scare thanks to COVID and then some good news. At least, that’s according to a recent forecast by London-based Economic Intelligence Unit. Read more: Business Insider
With economic growth currently strong, the Federal Reserve should raise interest rates soon to combat a future downturn, Morgan Stanley CEO James Gorman said Monday. Read more: CNBC
European stocks are expected to open in positive territory but sentiment remains cautious amid the continuing spread of the omicron Covid variant. The U.K.’s FTSE index is seen opening 18 points higher at 7,257, Germany’s DAX 17 points higher at 15,632, France’s CAC 40 up 5 points at 6,949 and Italy’s FTSE MIB 20 points higher at 26,586, according to data from IG. Read more: CNBC
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In 21 trades recorded yesterday, 91,453 shares were transacted resulting in a turnover of K169,669.58. Trading activity was recorded in Airtel, Copperbelt Energy Corporation, Lafarge, Standard Chartered Zambia, Zambeef and Zanaco.The LuSE All Share Index (LASI) closed at 5,590.72 with a percentage change of 0.
Chart of the Day: