Good morning. Here’s what you need to know to start your day.
-
Energy Minister Peter Kapala says blended fuel will decrease the pump price by 3%
-
Elon Musk has reclaimed the title of the richest person in the world
-
During the third week of February, the bond market recorded a 100% score
Story of the Day
While the African continent is confronted by its fair share of challenges, there remains a myriad of viable opportunities to capitalise on. Further, the robust and plentiful resources in the continent’s possession represent favourable gateways if proactively actioned. Access to energy: Achieving universal access to modern energy is a critical development challenge for African countries. Many outlying rural areas lack access to electricity owing to poor grid infrastructure and vast distances between areas where power needs to be distributed. Such an energy deficit leads to a multitude of socio-economic problems. To address the continent’s existing energy infrastructure gap, African governments are proactively aiming to expand electricity access, deliver clean cooking solutions and pursue inclusive sustainable energy development. Such efforts are supported both locally and internationally through the regional power pools and the AfCFTA respectively to expand these endeavours regionally and pursue energy development to relieve the infrastructure restraint. Read more
In Local Business News Sponsored by
Energy Minister Peter Kapala says the planned blending of fuel with ethanol will result in a 3 percent reduction in the cost of petroleum pump prices. In an interview, Thursday, Kapala said a pilot project for the blending process will commence in the second quarter of this year. “It is 3 percent reduction, because you see it is significant in the sense, if the price goes up by more than 2.5 percent in that particular month saying there is an increase, if the price goes up by say 2 percent there is no increase in that particular month. But at least we are going to have a 3 percent reduction in the cost of which will be tremendous.” Read more: News Diggers
Anti-Corruption Commission (ACC) Director General Tom Shamakamba says serious investigations will be conducted in the country. And British High Commissioner to Zambia Nicholas Woolley says there is need to see progress and implementation now that Zambia has renewed its commitment to fighting corruption. Speaking at a training workshop for law enforcement agencies and other ACC stakeholders in financial investigations and asset recovery, Monday, Shamakamba emphasised the need to address the loopholes through which individuals who steal from Zambians can hide their assets. Read more: News Diggers
A threshold on the amount withdrawn from over the counter is likely to be introduced as the financial market has recently seen customers withdrawing huge sums of money. Withdrawing huge amount of money is taking away liquidity from the financial market and this puts pressure on the economy. Standard Chartered Bank Zambia Chief Executive Officer, Chief Executive Officer Sonny Zulu, said most people had recently been withdrawing large amounts of money from the counter. Zulu stressed that it would therefore not be surprising to see the Bank of Zambia (BoZ) Bank limiting the money withdrawn. Read more: Zambia Monitor
The Zambian Ministry of Community Development and Social Services has announced that the process of repealing and replacing the NGO Act number 16 of 2009 will be completed soon. Minister in Charge, Doreen Mwamba, has expressed confidence that the bill will be enacted into law due to the work that has already been put in place. Once the new bill is enacted, it will provide a more conducive environment for the growth and development of NGOs in Zambia. Minister Mwamba has urged all NGOs to fully participate in the process and acquire knowledge in the terrorist financing outreach and awareness meetings scheduled to take place throughout the year. “We need to work together to ensure that the NGO sector in Zambia is well regulated and that it operates within the confines of the law. We are undertaking a comprehensive NGO terrorist financing risk assessment to protect the sector,” added Minister Mwamba. Read more: Lusaka Times
In International Business News
Zoom shares climbed 8% in extended trading on Monday after the video chat company reported fiscal fourth-quarter results that exceeded analysts’ estimates and offered optimistic earnings guidance for the year. Zoom’s revenue increased 4% year over year in the quarter, which ended on Jan. 31, according to a statement. That’s a dramatic slowdown from the quadrupling of revenue that Zoom enjoyed in 2020 and 2021, when consumers and businesses flocked to the video service during the Covid pandemic. Read more: CNBC
According to the World Bank, the African Continental Free Trade Area (AfCFTA) has been well-designed to strengthen the economies of East Africa. This will be accomplished, among other things, by lowering trade expenses related to trade facilitation, as well as decreasing the costs of non-tariff policies and non-tariff obstacles. Real income is anticipated to rise by 10% in Tanzania, the second-largest economy in the area, between 2021 and 2035. Real income will rise by 11.8%, 3.8%, and 3.6% in Kenya, Uganda, and Rwanda, respectively. Read more: Business Insider
Elon Musk has reclaimed the title of the richest person in the world, per Bloomberg’s tally. The Tesla CEO was unseated from the top spot by Bernard Arnault, CEO of French luxury brand LVMH, in December of last year, making Musk No. 2 on the list for more than two months. As of Monday, however, Bloomberg reports that a rally in Tesla stock has lifted Musk back to the top of its real-time Billionaires Index. Musk’s net worth was some $187.1 billion as of Monday after markets closed, according to Bloomberg, just topping the $185.3 billion fortune of Arnault. Read more: CNN
Twitter has laid off at least 200 staff in another round of cuts, according to reports in the New York Times. It said the tech giant had cut 10% of its current workforce, which it estimated at 2,000 people. This is the latest round of job losses at Twitter since chief executive Elon Musk sacked about 50% of its 7,500 employees when he took over in October. Read more: BBC News
Oil headed for a fourth consecutive monthly decline as concerns about tighter monetary policy and swelling stockpiles in the US eclipsed optimism about rising demand in top importer China. Oil prices have also been weighed down by rising US stockpiles, which are at the highest level since May 2021. Read more: Yahoo Finance
Finally, Capital Markets News
In the third week of February 2023 trading on the capital market we take a look at how the equity market performed against the bond market. During the week the bond market recorded a 100% score. In comparison to the third which was the complete opposite as it was the equity market that recorded a 100% score. There was not much bond trading activity around this time last year. Read more
In 46 trades recorded yesterday, 46,899 shares were transacted resulting in a turnover of K478,709.60. Trading activity was recorded in Airtel, CEC Zambia, Chilanga Cement, Standard Chartered Bank Limited, Zambeef, Zanaco and Zambia Sugar. The LuSE All Share Index (LASI) maintained its close at 7,249.62 points. The market closed on a capitalization of K72,487,995,255.28 including Shoprite Holdings and K37,705,309,815.28 excluding Shoprite Holdings.
Picture of the Day