Good morning. Here’s what you need to know to start your day.
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Zambia, Malawi, Zimbabwe, Botswana scrap off mobile roaming charges
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Kenya and the European Union just signed a landmark trade agreement
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In the second week of June bond trading, Friday’s bond trading was the best performing day of the week
Story of the Day
In Madagascar, Facebook Messenger is not just for chatting with friends. Leveraging the social network’s popularity among Malagasy, microfinance institution Première Agence de Microfinance (PAMF) launched a service in 2021 that allows the country’s three million Facebook users to apply for credit or open a savings account through the app. “Facebook Messenger is so widely used in Madagascar that it has great potential to improve access to financial services,” says Santatra Andriamparany, Head of Digital Financial Services at PAMF Madagascar, which is part of the Aga Khan Development Network (AKDN). This initiative is one of a growing number aimed at increasing financial inclusion in Madagascar which, at around 81 percent, has one of the highest poverty rates in the world. As they scale, these solutions also provide an opportunity to help entrepreneurs launch and grow businesses, increase access to basic services such as electricity, and improve government tax collection. Read more
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Minister of Technology and Science has disclosed that Zambia, Malawi, Zimbabwe and Botswana have agreed to scrap off mobile roaming charges. Felix Mutati said this step is taking the four nations closer to being a single digital market. Mr. Mutati revealed that this agreement will become effective in August this year as part of initiatives as the four countries to create a One Network Area (ONA). He said this means that mobile users in Zambia will no longer incur extra charges on calls whenever they cross borders in a few neighboring countries. “This is because Zambia together with Malawi, Zimbabwe and Botswana have agreed to scrap off mobile roaming charges which takes us a lot closer to being a single digital market.” Read more: Money FM
Many soya bean farmers in Zambia are demoralised after the Food Reserve Agency (FRA) backtracked and resolved to buy the crop at K6 per kilogramme (Kg). Last year, the agency had offered K11.50 per kg for the commodity, and this means that the announced price is more than a 50 percent reduction, which would be a disincentive to farmers. Because of improved and supportive pricing of the crop, Zambia has seen production more than doubled in the last three seasons to reach the historical high of 411,000 tonnes in 2021. In interviews with farmers in select parts of the country, farmers told Zambia Monitor, that the government should have just announced a reasonable price even if it did not want to enter the soya beans market. Read more: Zambia Monitor
A trustee development curriculum to enhance the capacity of pension schemes in complying and upholding all aspects of pensions fund management has been unveiled in Lusaka. The initiative to protect the interest of members and sponsors of scheme was launched by the Zambia Association of Pension Funds (ZAPF) in collaboration with the Pensions and Insurance Authority (PIA) and the Zambia College of Pensions and Insurance Trust. ZAPF Chairperson, Catherine Makala, said at the launch of the initiative and training of trainers of trustees workshop on Monday in Lusaka that the three institutions had developed a Trustee Curriculum, which would be used by this cohort of trainers. Read more: Zambia Monitor
The Zambia National Farmers Union – ZNFU has clarified that Zambia is self sufficient as far as wheat production is concerned and that there is no need to resort to imports. This revelation is however contrary to assertions in the Ministerial Statement that depicted that the country has a net production deficit of about 110,000 tons for the 2022/2023 Agro season. Speaking in a separate exclusive interview with the Zambian Business Times – ZBT, ZNFU Wheat chairperson Blair McLeod stated that it’s disturbing to hear that there is a deficit as the country has more water and electricity supply has improved coupled with increased hectarage under cultivation last year. McLoed stated that last year, Wheat farmers who are members of ZNFU produced about 370,000 tons plus another 50,000 from wheat farmers who are not members of ZNFU. This adds up to a total production for the country of 420,000 tons of wheat. Read more: Zambian Business Times
Bank of Zambia Exchange Rates
Currency | Buying | Selling |
---|---|---|
USD | 19.4139 | 19.4631 |
GBP | 24.8633 | 24.9342 |
EUR | 21.2058 | 21.2674 |
ZAR | 1.0698 | 1.073 |
In International Business News Sponsored By
In a victory for Brussels as it seeks closer economic links with Africa in the face of competition from China, Kenya, and the European Union have inked a trade agreement. On Monday, a ceremony in Nairobi marked the official end of talks for the EU-Kenya Economic Partnership Agreement under the leadership of Kenyan President William Ruto. Kenya would get duty-free and quota-free access to the EU, its largest market and the destination of around one-fifth of all exports, once the agreement is confirmed and implemented. Progressive tariff reductions will be applied to some imports from the EU to Kenya over a 25-year period, however, some delicate goods would be exempt. Read more: Business Insider
According to a recent report by Fitch, Tanzania’s economy is poised for robust growth, which will contribute to higher consumer spending throughout the year. The positive outlook is supported by several key factors, including strong economic performance, low inflation, and a stable labour market. Economic growth in Tanzania is expected to accelerate, with real GDP projected to increase by 5.7% year-on-year in 2023, up from 5.3% in 2022. This growth will be driven by investments in large-scale infrastructure projects, resulting in increased wages and elevated consumer consumption. Additionally, the agricultural sector will benefit from lower-cost credit, further boosting consumer activity. The report also highlights the easing of inflationary pressures in Tanzania. After reaching a high of 4.9% year-on-year in January 2023, inflation has gradually declined and is expected to average 4.1% for the year, ending at 3.7%. This decline in inflation will enhance consumer spending power and instill greater confidence in businesses and investors. Read more: Business Insider
Joseph Tsai, executive vice chairman and cofounder of Alibaba Group, will succeed Daniel Zhang as chairman, according to an announcement by the Chinese internet giant on Tuesday. Eddie Wu, chairman of Alibaba’s e-commerce platform Taobao and Tmall Group, will succeed Zhang as chief executive officer and replace him on the company’s board of directors. Both appointments will take effect on September 10, 2023, the company said. Read more: CNN
European markets are heading for a flat open Tuesday as investor confidence stalls. European markets fell at the start of the new trading week as investors remained jittery over the economic outlook. The benchmark Stoxx 600 index closed 1% lower Monday, with almost all sectors in negative territory. Asia-Pacific markets traded mixed overnight as investors digested China’s central bank decision to cut its one-year and five-year loan prime rate. U.S. markets were closed for the Juneteenth holiday on Monday, but stock futures ticked lower overnight as investors looked ahead to a shortened week of trading. Read more: CNBC
In the second week of June 2023 bond trading, there was a full week of trades of which Friday’s bond trading was the best performing day of the week. Bonds of total face value of K197,826,000 were transacted in 39 trades, resulting in a market value of K125,915,570. Bonds are a low-risk investment issued when the government borrows money from its people. You can purchase bonds using the Lusaka Securities Exchange Application online. Read more
No trading activity was recorded yesterday. The LuSE All Share Index (LASI) maintained its close at 8,235.00 points. The market closed on a capitalization of K76,777,153,106.90 including Shoprite Holdings and K41,994,467,666.90 excluding Shoprite Holdings.
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