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IMF Considers Upping Zambia Funds to Help With Drought Emergency
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Zambian Lead Poisoning Claimants Win Permission to Appeal Class Action Against Anglo American
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Nigeria eyes $2 Billion bailout loan from the World Bank
In Local Business and Finance News
On Friday 19 April, in a crucial step towards achieving justice for the children and women who allege lead poisoning caused by a former Anglo-American lead mining operation in Kabwe, Zambia, the Johannesburg High Court granted permission to appeal an earlier judgment that dismissed certification of the class action. In granting permission Justice Leonie Wendell found that an appeal against her earlier judgment had ‘reasonable prospects of success on at least one ground of appeal’ and that there were ‘compelling reasons to grant the appeal, as class action law is still being developed in South Africa’, and that ‘there are current matters of law of public importance which directly implicate constitutional rights’. The Kabwe Claimants will now take their case against Anglo-American South Africa (AASA) before the Supreme Court of Appeal of South Africa later this year. Anglo American Plc said it will oppose any court case over allegations that a Zambian mine in which the company held a stake poisoned tens of thousands of people with lead after the claimants were allowed to appeal a previous ruling. Read more: All Africa and Bloomberg
The International Monetary Fund is in talks with Zambia to boost financing for the country that’s suffering the impacts of its worst drought on record, just as it emerges from a painfully slow debt restructuring process. “We are in active discussions with the government of Zambia to see how we can support, including the option of additional financing,” Abebe Selassie, director at the Washington-based lender’s Africa department, said in an interview. “We will of course look favorably to any requests that they make.” Read more: Bloomberg
The Egyptian government has announced that Egypt Air will resume flights between Cairo and Lusaka this year after servicing the route 14 years ago. Egyptian Ambassador to Zambia, Moataz Anwar, said his government was working with the aviation authority in order to urge the airline to resume its operations to Zambia. Anwar said this when he paid a courtesy call on the Minister of Transport and Logistics, Frank Tayali, in Lusaka on Saturday. He said his government had noticed the increased volumes of passengers coming to Zambia and travelling to other destinations in the world. “Egypt Air will definitely find the route economically viable. The move will be actualised so that the flights between the two countries are resumed,” Anwar stated. Read more: Zambia Monitor
Zambia and Tanzania on Friday met to discuss and resolve the remaining Non-Tariff Barriers (NTBs) hampering trade between the two countries. This was the third of the Bilateral Trade Meetings held on April 15 to 18, 2024 at the Tunduma/Nakonde One Stop Border Post (OSBP) on the Tanzanian Side. The meeting was co-chaired by Omar Shaaban, Minister for Trade and Industrial Development of the Revolutionary Government of Zanzibar, and Chipoka Mulenga, Zambia’s Commerce, Trade and Industry Minister. This is contained in a statement issued by Commerce, Trade and Industry Ministry’s Public Relations Officer, Musanda Kangwa. Read more: Zambia Monitor
In International News
Nigeria’s Minister of Finance Wale Edun, recently relayed that Nigeria is in the perfect position to attain a loan from the World Bank. During a press conference, he noted that Nigeria qualifies for a $2 billion loan from the global lender. He also noted that the African Development Bank has been of help with its budgetary support and low-interest funding. The finance minister during a press conference that took place on April 20 at the World Bank Group and International Monetary Fund (IMF) annual meetings, noted that Nigeria is prime for a loan package from the World Bank, to address some of the country’s pressing challenges. As seen in the Nigerian newspaper, The Cable, the minister relayed during the press conference that the loan package which has a 40-year duration, a 10-year moratorium, and a one percent interest rate, was approved by the World Bank Board of Directors. “If you look at the fact that we have qualified for the processing, just this week to the board of directors of the World Bank of a total package of $2.25 billion,” the finance minister stated. Business Insider
The Organization of Petroleum Exporting Countries (OPEC) says Nigeria’s average daily crude oil production dropped again in March. OPEC data based on direct communication show that Nigeria’s average daily production dropped to 1.2 million barrels, from 1.3 in February. “The only sector we continue to depend on for revenues is collapsing right under our nose. How can you project a crude production of 1.7 million barrels a day and you are struggling to do 1.2 million barrels. How do you want to survive? That is over 30 percent of your expected revenue gone.” Nigeria’s government targets a daily production of 1.7 million barrels, including condensate, in 2024. However, the nation still faces challenges including pipeline vandalism and theft. Since Nigeria’s 2024 budget heavily depends on proceeds from crude sales, Isaac Botti calls for efforts to diversify sources of income. Read more: Africa News
Euro zone inflation is likely to decline further and the European Central Bank may cut interest rates if its long-standing price growth criteria are met, ECB President Christine Lagarde said on Friday. “At the same time, the Governing Council is not pre-committing to a particular rate path,” Lagarde said, repeating the bank’s most recent guidance. “Risks to the inflation outlook are two-sided,” she said. “Upside risks include heightened geopolitical tensions, as well as higher wage growth and more resilient profit margins than anticipated.” Read more: Reuters
Monetary policy should remain focused on price stability, Swiss National Bank Chairman Thomas Jordan said in remarks aired on Saturday. Speaking to national broadcaster SRF, he said economic growth and productivity are too low and many countries are running too much debt and excessive deficits. One of the most pressing challenges is insufficient growth, Jordan told SRF. Another is the need for structural reforms to increase countries’ productivity and boost growth, he added. Read more: Reuters
The Washington-based institution projects that South Africa, Africa’s most industrialised country, will become Africa’s biggest economy with a GDP of $373 billion–a position the IMF expects it to retain until 2027. Egypt, which held the top position in 2023, is expected to drop to second place behind South Africa, primarily due to a series of currency devaluations. Nigeria, once dubbed Africa’s largest economy, is set to relinquish its crown and slide to fourth place this year for similar reasons. Both countries have seen a downturn in their economic fortunes due to high inflation and a sharp devaluation of their currencies. Read more: Business Insider
BlackRock estimates that the world’s green energy transition will require $4 trillion annually by the mid-2030s, calling for more public-private partnerships, especially in Asia-Pacific. The forecast comes from BlackRock’s latest “Investment Institute Transition Scenario,” which analyzes how the low-carbon transition is most likely to play out and its potential impact on portfolios. The $4 trillion figure is double previous expectations of $2 trillion annually, and will require increases in both public and private sector capital, according to Michael Dennis, head of APAC Alternatives Strategy & Capital Markets at BlackRock. Read more: CNBC
