Good morning. Here’s what you need to know
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Zambia targets $30 million annual export revenue from copper, aims for one million tonnes by 2027
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ZCCM-IH pays out K36 million dividend to NAPSA for year ending December 31, 2023
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G20 agrees to tackle taxation of the super-rich
In Local Business and Finance News
Zambia Consolidated Copper Mines Investment Holdings (ZCCM-IH) has declared a K146 million dividend cheque to its majority shareholder, Industrial Development Corporation (IDC), which has a 60 percent stake in the company. The Company has further declared another dividend cheque of K36.4 million dividend to its minority shareholder, National Pension Scheme Authority (NAPSA), which has 15 percent stake in ZCCM-IH. Speaking during the presentation of the cheques, ZCCM -IH Chief Executive Officer Dr. Ndoba Vibeti, said this is part of the total dividend approved by the Company’s shareholders for the December 2023 financial year of approximately K243 million. Dr. Vibeti explained that since 2015, ZCCM -IH has paid a total of about K990 million to IDC alone, with a historic largest dividend payment of K436 million for the 2021 and 2022 financial years. “We are proud to say that this is the 9th consecutive year that ZCCM-IH is paying a dividend to the IDC. Since 2015, we have paid a total of approximately K990 million to IDC alone,” Dr. Vibeti stated. He further stated that ZCCM-IH has continued to be resilient and profitable, as it recorded a company profit of K4.84 billion, for the 2023 financial year, representing a 14% increase from K4.26 billion profit recorded in 2022. Read more: Money FM
Finance and National Planning Minister, Situmbeko Musokotwane, has expressed optimism that Zambia can generate about US$30 million annually in export revenue once the country reaches its target of producing three million tonnes of copper. Speaking at the recent Economics Association of Zambia (EAZ) national economic summit in Lusaka, Musokotwane outlined the government’s plans for the mining sector. Musokotwane projected that Zambia would produce around one million tonnes of copper by 2027, supported by favorable policies in the mining sector. He explained that with the current market prices, producing three million tonnes of copper could yield approximately $30 million per year in export revenue. “Beyond this, we are encouraging value addition. The mines must start making certain quantities of copper available for value addition locally,” Musokotwane said. Read more: Zambia Monitor
Zambia has become the latest country to ratify the Pan-African Constitution of the Africa Information Communication Technology (ICT) Union. On Monday, Zambia submitted its ratification documents for the Constitution and Convention of the African Telecommunications Union (ATU) at the Union’s headquarters in Nairobi, Kenya. In a statement issued in Lusaka, Union Programme Coordinator, Alice Koech, said the instruments were received by ATU Secretary General John Omo. “ATU extends exclusive benefits to countries that have ratified its foundational instruments, including full engagement in all Union activities, eligibility to vote and run for elections within the Union’s Permanent Organs and the opportunity to nominate candidates for elective roles,” she pointed out. She mentioned that with Zambia’s ratification, 32 out of the 52 African countries represented by ATU had ratified or acceded to the Union’s Constitution and Convention, which was initially signed by ATU Member States in 1999 and revised in 2014. Read more: Zambia Monitor
International Monetary Fund (IMF) resident representative Eric Lautier says there is need for Zambia to come up with more progressive tax policies to ensure it has the capacity to repay its debt. He says it’s important to note that Zambia’s debt is not forgiven but has just been rescheduled. When asked about Zambia’s debt restructuring progress on the sidelines of the EAZ 2024 Economic Summit, recently, Lautier observed the need for a tax system where taxpayers were able to contribute their fair share to the country’s revenue collection. “…the last aspect that we were mentioning is that for Zambia, post restructuring, to gain the capacity to service its debt, because remember, the debt is not forgiven, it has been rescheduled.” Read more: News Diggers
Zambia Association of Manufacturers (ZAM) president Ashu Sagar has lamented that sector players are still finding it difficult to obtain VAT refunds. And Zambia Chamber of Mines Chief Executive Officer Sokwani Chilembo has called on government to introduce a waiver on imported power targeting productive sectors. Speaking during the 2024 Mid-Year Budget Economic Review, Sagar urged government to prioritise compliant taxpayers for VAT refunds. “VAT honourable minister, we did some research and we are continuing to finding challenges in getting our refunds and this is really constraining liquidity in terms of our investment back into the sector. And we see in some way if manufacturing could be prioritised as well in the VAT refund policy.” Read more: News Diggers
In International News
The first-ever joint declaration by G20 finance leaders vowing to cooperate on effectively taxing the world’s largest fortunes on Friday papered over deeper disagreement about the right forum to advance the agenda. Finance ministers and central bankers from the Group of 20 major economies agreed to reference fair taxation of “ultra-high-net-worth individuals” in both their joint communique and a separate declaration on international tax cooperation on Friday. “We will seek to engage cooperatively to ensure that ultra-high-net-worth individuals are effectively taxed,” said the final draft of the G20 ministerial declaration in Rio de Janeiro, seen by Reuters. However, fault lines have already emerged about whether to do that in talks at the United Nations or via the Organization for Economic Cooperation and Development (OECD), a group of wealthier democracies founded by U.S. and European allies. Read more: Reuters
U.S. Treasury Secretary Janet Yellen said on Saturday that the global transition to a low-carbon economy requires $3 trillion in new capital each year through 2050, far above current annual financing, but that filling the gap is the biggest economic opportunity of the 21st century. Yellen said in Belem, Brazil’s Amazon gateway city, that reaching net-zero emissions goals remained a top priority for the Biden-Harris administration and this would require leadership far beyond U.S. borders. “Neglecting to address climate change and the loss of nature and biodiversity is not just bad environmental policy. It is bad economic policy,” Yellen said in a speech after attending a G20 finance leaders meeting on Thursday and Friday in Rio de Janeiro. Wealthy economies provided and mobilized a record $116 billion for climate finance for developing countries in 2022, 40% of which came from multilateral development banks (MDBs). Yellen said the banks, including the World Bank and the Inter-American Development Bank (IDB) were setting new targets. Read more: Reuters
The euro zone’s economy grew by more than expected in the second quarter of 2024, flash figures from the European Union’s statistics office showed Tuesday. The zone’s gross domestic product rose by 0.3% in the three months to the end of June compared to the previous quarter, the data showed. Economists polled by Reuters had expected a 0.2% increase on a quarterly basis. First-quarter GDP was confirmed at 0.3%, unchanged from the initial reading announced earlier this year. The euro zone entered a technical recession in the second half of 2023, as GDP contracted in both the third and fourth quarter of the year, according to revised figures released earlier this year. Data released earlier in the day showed that the euro zone’s largest economy Germany unexpectedly shrank by 0.1% in the second quarter — coming in below the expectations of analysts polled by Reuters, who had anticipated the country’s GDP to grow by 0.1%. Read more: CNBC
Standard Chartered (StanChart) on Tuesday announced its largest-ever share buyback worth $1.5 billion and lifted its earnings outlook for this year, betting on strong economic growth in its core Asian markets and plans to rein in costs. The bank’s Hong Kong-listed shares were up 4% after the results. StanChart’s statutory pre-tax profit for the first half climbed 5% to $3.49 billion, just ahead of a consensus estimate compiled by the bank. The London-headquartered lender, which earns most of its revenue in Asia, now expects operating income to grow more than 7% on a constant currency basis compared with its previous projection of between 5% and 7%. Asia-focused global banks including StanChart and rival HSBC have benefited in recent years from higher interest rates and relatively stronger economic growth and wealth generation in the region. “We are uniquely positioned to take advantage of significant growth opportunities that will continue to come from the markets in our footprint, generating value for our clients,” StanChart CEO Bill Winters said in a statement. “Global trade and investment will continue to grow and is expected to be anchored in Asia, Africa and the Middle East, and in Asia wealth creation is also expected to outpace that in the rest of world.” Read more: CNBC
Finally, Capital Markets News
In 101 trades recorded yesterday, 55,221 shares were transacted resulting in a turnover of K777,719.85. A +K0.01 price change in Standard Chartered Bank Limited was recorded yesterday. Trading activity also was recorded in CEC Zambia, Chilanga Cement, Real Estate Investments Zambia, ZANACO, Zambia Sugar and CEC Africa on the quoted tier. The LuSE All Share Index (LASI) closed at 14,462.17 points, 0.03% higher than its previous day close at 14,458.44 points. The market closed on a capitalization of K118,483,803,810.24 including Shoprite Holdings and K75,005,447,010.24 excluding Shoprite Holdings.
A total of 5 Govt Bond trades with quantity K56,065,380 and turnover K45,898,520 were processed yesterday.
