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IMF team in Zambia, visit may trigger $186 million payment under Extended Credit Facility
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Finance Minister, Musokotwana, calls for less stringent mortgage products as housing deficits reach 1.5 units
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African heads of states meet in Nairobi for World Bank summit
In Local Business and Finance News
The Bank of Zambia (BOZ) has expressed it’s commitment to promoting inclusive and sustainable Development in Zambia through the the launch of the 2024 to 2027 strategic plan. Speaking during the Launch of the 2024 to 2027 strategic plan themed “promoting inclusive and sustainable Development in a Digitalized world,” attended by the Zambian Business Times -ZBT, Bank of Zambia Governor Dr. Denny Kalyalya said that the focus areas of the strategic plan are on price stability, financial stability, financial inclusion and organisational resilience and growth. Dr. Kalyalya said that the focus areas will be directed at addressing key challenges and opportunities in the financial operating environment. He said that the strategic plan will also give guidance to the bank on sustainable stable prices, financial system, financial inclusion and organisational resilience and growth. He noted it is anticipated that by the end of the plan period, substantial accomplishments will be made in extending financial services to the unbanked and underbanked sectors. Read more: Zambian Business Times
A team from the International Monetary Fund (IMF) is in Zambia for the third review mission under the Extended Credit Facility (ECF) programme, which once approved, will trigger the fourth payment of about US$186 million. This is according to Finance and National Planning Minister, Situmbeko Musokotwane, in his update on the just ended IMF/World Bank Spring meetings. Musokotwane said the expected outcome was a Staff-Level- Agreement, which would be subjected to approval by IMF Management and the Executive Board. “For clarity, approval by the IMF Executive Board will trigger the fourth disbursement of approximately US$186 million,” he said. He added that as a benchmark country on debt restructuring under the G20 Common Framework, Zambia remained committed to addressing debt challenges in an effective, comprehensive and transparent manner. Meanwhile, the Minister also revealed that Zambia and the United States of America (U.S.A) signed the Second Millennium Challenge Compact. He explained that the step ushered in the final stage of the compact development process and would lead to the signing of the second Compact estimated at more than US$400 million, within the year. Read more: Zambia Monitor
Zambia has made good progress in improving financial inclusion which currently stands at about 69 percent but lacks access to housing finance, authorities say. Finance and National Planning Minister, Dr Situmbeko Musokotwane, stated that despite the high demand for housing, the supply of housing was low due to unavailability of affordable long-term financing. Musokotwane said this during the launch of the Bank of Zambia 2024-2027 Strategic Plan in Lusaka on Wednesday evening. “According to the National Housing Policy, Zambia has a high and increasing housing unit deficit estimated at approximately 1.5 million housing units and is projected to reach 3 million housing units by 2030,” the minister highlighted. Musokotwane noted that access to appropriate mortgage products was also constrained due to stringent requirements. Read more: Zambia Monitor
Zambia is in talks with Uganda for a possible supply of more than 500,000 metric tonnes of maize to replenish its depleted reserves that have exposed more than two million people to starvation. Lusaka banned the exports of maize grain and mealie (maize flour) in February following a prolonged dry spell that has adversely impacted the production of the crop in 84 out of its 116 districts. Uganda’s Ministry of Agriculture, Animal, Industry and Fisheries says through a correspondence seen by The EastAfrican that Kampala has received a request to supply up to 500,000 metric tonnes of the grain to Lusaka. “The Government of Uganda has received an expression of interest for up to 500,000 MT of maize grain to be exported to Zambia. This has certain requirements including quality and available volumes to enable us to meet the export successfully,” the ministry’s Permanent Secretary David Kasura-Kyomukama says through a letter dated March 25, 2024. Read more: Lusaka Times
In International News
African heads of state convened in Nairobi for the International Development Association (IDA) summit, with a focus on favorable lending terms and strategies to bolster sustainable development across the continent. Established in 1960 as part of the World Bank, the IDA’s mission is to combat poverty by providing grants and low-interest loans to support programs that foster economic growth, reduce inequalities, and enhance living standards for people in developing nations. During the summit, Kenya’s President William Ruto highlighted the significance of IDA’s rapid and decisive action during crises, emphasizing its distinctive approach compared to other funding sources. Ruto praised IDA’s demand-driven programs and concessional loans, which offer borrowing nations the opportunity to pursue long-term development strategies tailored to their specific needs. With IDA disbursing a substantial $18 billion to African countries in the previous year alone, there’s a clear recognition among African leaders of the pivotal role the organization plays in driving development across the continent. Africa News
The International Monetary Fund raised its Asia growth forecast for 2024 on Tuesday, as it remained optimistic about India’s growth and focused on the need for more stimulus from China. The IMF now expects Asia’s economy to grow 4.5% this year, up 0.3 percentage points from six months earlier. Its forecast for 2025 remained unchanged at 4.3%. “The outlook for Asia and the Pacific in 2024 has brightened: we now expect that the region’s economy will slow less than we previously projected as inflation pressures continue to dissipate,” Krishna Srinivasan, director of Asia and Pacific at the IMF wrote. The upward revision reflects upgrades for China, the IMF said, where it expects policy stimulus to provide support. It also called India “the world’s fastest-growing major economy,” where “public investment remains an important driver.” India is currently the world’s fifth-largest economy with GDP of $3.7 trillion and is aiming to become the world’s third-largest by 2027. Read more: CNBC
Samsung Electronics on Tuesday said operating profit for the first quarter jumped 932.8% as memory chip prices rebounded on the back of AI optimism. Here are Samsung’s first-quarter results versus LSEG estimates: Revenue: 71.92 trillion Korean won (about $52.3 billion), vs. 71.04 trillion Korean won. Operating profit: 6.61 trillion Korean won, vs. 5.94 trillion Korean won Samsung’s revenue for the quarter ending March jumped 12.81% from a year ago, while operating profit soared 932.8% in the same period. Read more: CNBC
HSBC’s group chief executive Noel Quinn is unexpectedly retiring after nearly five years in the role. Europe’s largest bank says it is in the process of finding a successor for 62-year-old Mr Quinn, who will stay in the role until a new chief executive is named. HSBC is considering candidates from both inside and outside the firm. It comes as the UK-based lender reported a 1.8% drop in profit for the first three months of 2024, compared to the same time last year. The company said that its pre-tax profit for the period came in at $12.7bn, which was a little better than expected by market analysts. “After an intense five years, it is now the right time for me to get a better balance between my personal and business life,” Mr Quinn said. Mr Quinn, who has worked at HSBC for 37 years, was first appointed as its chief executive on an interim basis in 2019, after his predecessor John Flint was ousted from the role. Read more: BBC News
Dangote refinery has been ranked above Europe’s ten largest refineries in capacity, according to a report by Bloomberg. The $20.5 billion Dangote refinery, owned by Africa’s richest man, has a processing capacity of 650,000 barrels per day. The refinery, which finally began production in January after facing years of delay, outshines Europe’s largest refinery, the Pernis Refinery, with its installed capacity of 404,000 barrels per day (bpd). Additionally, the GOI Energy ISAB Refinery in Italy, constructed with a refining capacity of 360,000 bpd, falls short compared to the Dangote facility. Read more: Business Insider
Democratic Republic of Congo (DRC) has raised concerns with Apple Inc. that the company’s supply chain may be adulterated by conflict minerals sourced from the country. A team of international lawyers representing the Congolese state forwarded a series of inquiries to the US tech giant on April 22, according to Bloomberg. This development comes a few weeks after a US court cleared Apple, Tesla, Microsoft, and others of child labour charges in Africa’s cobalt mines. This information was disclosed in a statement released on lawyer Robert Amsterdam’s website. The Paris-based lawyers for the DRC accused Apple of purchasing minerals like tin, tungsten, and tantalum — collectively known as 3T minerals. These minerals are alleged to be smuggled from the DRC into neighbouring Rwanda, where they are laundered and “integrated into the global supply chain”. Read more: Business Insider