Good morning. Here’s what you need to know
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Zambia signs $170 million agreement with Chinese investor for construction of cement plant
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COMESA records $219 billion in global exports, launches tool to support small scale cross- border traders
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Trump vows tariffs on Mexico, Canada and China on day one
In Local Business and Finance News
The Zambia Development Agency (ZDA) has signed an Investment Promotion and Protection Agreement (IPPA) with China De Jin Xin Limited for the construction of a US$170 million cement plant in Chilanga District, Lusaka Province. ZDA Director-General, Albert Halwampa, speaking during the signing ceremony on November 16, 2024, expressed satisfaction with the progress of the project, which reportedly has already seen an investment of over US$70 million and the creation of more than 500 jobs during the construction phase. “The country is currently witnessing an unprecedented inflow of investments due to good leadership, a clear vision for promoting trade, and consistent policies,” Halwampa stated. He emphasized Zambia’s peaceful environment and its strategic position as a regional trade and investment hub. Halwampa assured the investor of continued support, including aftercare services to resolve challenges and facilitate the project’s success. Read more: Zambia Monitor
The United States-based artificial intelligence firm, Devdraft AI, is to invest US$10 million in Zambia’s financial sector. The Zambian government has welcomed this investment as an endorsement of the country’s AI strategy, launched last week. Devdraft AI, a Silicon Valley-based firm, is by this investment setting up its African operations base in Lusaka, Zambia’s capital city. It aims to work with small and medium enterprises (SMEs) to provide an AI-powered financial payment platform. “The company will also share its AI expertise to students in universities in Zambia,” Salifyanji Namwila, Devdraft AI Chief Executive Officer, added. Read more: CAJ News
The United States of America Ambassador to Zambia Michael Gonzalez says his country’s investment in the Zambian mining sector is growing. Mr. Gonzalez says this is amidst continued reforms in the sector by the New Dawn administration. Mr. Gonzalez says his government wants to see growth in the mining industry that does not only favor the mining companies but also the workers. He said this when a paid a courtesy on the Mine Workers Union of Zambia President Joseph Chewe in Kitwe. And Mr Gonzalez further said that his government will punish any US company that will be found engaging in corruption and not respecting the country’s labour laws. And Mine Workers Union of Zambia President Joseph Chewe thanked the United States government for the continued support towards the growth of the mining sector in the country. Mr Chewe also hailed President Hakainde Hichilema’s administration for attracting unprecedented investment in the country’s mining sector. Read more: ZNBC
PriceWaterhouseCoopers (PwC) Zambia has noted that government has made progress in domestic revenue collection in the first half of 2024. In addition, PwC Zambia says the debt restructuring process has provided greater certainty regarding the amounts payable to Zambia’s creditors. In its 2025 National Budget Frequently Asked Questions (FAQs) report, PwC Zambia stated that strategies such as the Smart Invoice System would help achieve higher revenue collection targets. Read more: News Diggers
In International News
Donald Trump says he will hit China, Mexico and Canada with new tariffs on day one of his presidency, in an effort to force them to crack down on illegal immigration and drug smuggling into the US. The US president-elect said he would sign an executive order imposing a 25% tariff on all goods coming from Mexico and Canada, after being inaugurated on 20 January 2025. He also said an additional 10% tariff would be levied on China until its government cracked down on fentanyl smuggling to the US. If Trump follows through, it will mark a major escalation in tensions with the US’s three top trading partners. It could also lead to higher prices for Americans, since tariffs work as a form of tax on imports. The US is the world’s largest importer. China, Mexico and Canada account for about 40% of the $3.2tn of goods it imports each year, according to official data. China has defended its efforts to stop the flow of illegal drugs, and has warned that there can be no winner in a trade war between the two. After Trump made his tariff threat, he discussed trade and border security with Canada’s Prime Minister Justin Trudeau, according to a Canadian source who spoke to the Reuters news agency. They had a “good discussion”, the source said. Mexico’s finance ministry said: “Mexico is the United States’ top trade partner, and the USMCA provides a framework of certainty for national and international investors.” Read more: BBC News
Zoom shares were down 4% in extended trading on Monday after the video calling software maker announced strong fiscal third-quarter results and gave quarterly guidance that was just slightly above expectations. Zoom’s revenue grew about 4% year over year in the quarter, which ended on Oct. 31, according to a statement. Zoom has increased revenue in the single digits for two and a half years, a sharp departure from 2020 and 2021, when the Covid-19 pandemic led the business to triple in size. Net income, at $207.1 million, or 66 cents per share, was up from $141.2 million, or 45 cents per share, in the same quarter a year earlier. The company reported 192,400 enterprise customers in the quarter, up 800 customers from the previous quarter. With respect to guidance, Zoom called for $1.29 to $1.30 in fiscal fourth-quarter adjusted earnings per share on $1.175 billion to $1.180 billion in revenue. Analysts surveyed by LSEG were expecting $1.29 per share and $1.17 billion in revenue. Zoom bumped up its view for the 2025 fiscal year. It expects $5.41 to $5.43 in adjusted earnings per share, with $4.656 billion to $4.661 billion in revenue. The middle of the revenue range implies about 3% growth. Read more: CNBC
A broad stock rally pushed the Dow Jones Industrial Average, S&P 500 and small-cap focused Russell 2000 index to new records on Monday. Investors bet President-elect Donald Trump’s choice for Treasury secretary, Scott Bessent, would help guide the economy without sparking inflation. The blue-chip Dow rose 440.06 points, or 0.99%, to 44,736.57. The broad S&P 500 gained 0.3% to end at 5,987.37. Both hit new all-time highs in the session, while the Dow also notched a fresh record close. The Nasdaq Composite ticked up 0.27%, finishing the day at 19,054.84. Monday brought a broad advance as investors cheered Trump’s decision to nominate Bessent, the founder of Key Square Group. The Russell 2000 jumped 1.47% and surpassed a prior all-time high set in 2021 at session highs. More than 3 out of every 4 S&P 500 stocks traded higher in the session. Investors see Bessent, a hedge fund manager, as someone who will be supportive of the equity market. They believe he may also help mitigate some of Trump’s most extreme protectionist policies, such as his stance on taxing imports. “I would recommend that tariffs be layered in gradually,” Bessent said to CNBC in an interview earlier this month before he was picked. “If you take that price adjustment coupled with all the other disinflationary things President Trump is talking about, we’re going to be at or below the 2% inflation target again.” Read more: CNBC
The Common Market for Eastern and Southern Africa (COMESA) has reportedly achieved remarkable milestones, with the value of its global exports surging by 210 percent to US$219 billion in 2023, up from US$100 billion in 2000. Intra-COMESA exports also grew significantly, increasing by 40 percent to $14 billion in 2022 compared to $10 billion in 2020. These gains were realised despite challenges such as the COVID-19 pandemic and droughts affecting several member states. Speaking at the 45th Inter-Governmental Committee Meeting in Lusaka, Acting Minister of Commerce, Trade, and Industry, Rodney Sikumba, praised COMESA’s resilience and its contributions to regional integration and trade facilitation. “Allow me to highlight a few of the milestones achieved in the last 30 years of COMESA’s existence. Under the market integration pillar, I am aware that COMESA has continued to implement various trade facilitation programmes, including small-scale cross-border trade initiatives and the use of electronic tools to ease management among others,” Sikumba said. Read more: Zambia Monitor
Finally, Capital Markets News
In 128 trades recorded yesterday 32,798 shares were transacted resulting in a turnover of K289,764.77. The following price changes were recorded yesterday: +K0.50 in Bata, +K0.01 in Chilanga Cement, +K0.01 in ZANACO and -K0.01 in Zambia Sugar. Trading activity was also recorded in AECI, Airtel, CEC Zambia, Madison Financial Services, National Breweries, PUMA, Standard Chartered Bank Limited, Zambia Breweries Zambeef, Zambia Reinsurance as well as CEC Africa and Pamodzi on the quoted tier.
The LuSE All Share Index (LASI) closed at 15,840.20 points 0.07% higher than the previous trading day close. The market closed on a capitalization of K205,875,708,852.52 including Shoprite Holdings and K80,875,433,052.52 excluding Shoprite Holdings.
A total of 14 Govt Bond trades with a total quantity of K40,360,000 and turnover K31,136,020 were processed yesterday.
