Good afternoon. Here’s what you need to know
-
Power tariff hike will mostly affect those who use 500 units and above – Zesco
-
Zambia, Sweden sign deal to advance carbon credit transaction under Paris agreement
-
Heavy rains to threaten 25% of copper projects by 2050
In Local Business and Finance News
Telecom tower operator IHS Holdings Ltd. is exploring a potential sale of its businesses in Rwanda and Zambia, people with knowledge of the matter said. The New York-listed company plans to gauge interest from potential buyers for its operations in the two countries, according to the people. Some proceeds from any disposals would be used to pay down debt, the people said, asking not to be identified as the information is private. IHS operates 40,000 towers across Africa, Latin America and the Middle East, according to its website. The company’s revenue has been hurt by the devaluation of the naira in Nigeria, the company’s biggest market. The currency slumped more than 70% against the dollar since President Bola Tinubu came to power in May 2023 and began implementing foreign-exchange and other economic reforms. IHS said in March that it’s working with advisers including JPMorgan Chase & Co. to evaluate strategic alternatives for the business across its portfolio and capital allocation priorities. Read more: Bloomberg
Zambia has entered into an agreement with Sweden to initiate bilateral negotiations aimed at fostering international cooperation for carbon credit transactions under Article 6 of the Paris Agreement. The agreement was signed by Ministry of Green Economy and Environment Permanent Secretary, Dr. Duty Chibamba, on behalf of Zambia, while Sweden was represented by officials from the Swedish Energy Agency and the Swedish Ambassador to Zambia, Johan Hallenborg. The signing ceremony took place in Lusaka on Tuesday. “This important milestone is supported by the SPAR6C programme, which has been instrumental in providing technical assistance and capacity building to enhance Zambia’s preparedness for Article 6 cooperation,” Chibamba stated. The Paris Agreement, signed by 197 countries in 2015, aimed to combat climate change by limiting global warming to well below 2 degrees Celsius above pre-industrial levels. Read more: Zambia Monitor
ZESCO Head of Business Development Fitzpatrick Kapepe says the proposed emergency electricity tariff adjustment will affect consumers that use 500 units and above the most. In an interview, Kapepe said the utility company had designed the tariff hike in such a way that it would not terribly affect the weak in society. “From those consumers that consume from below 100 units, these are the weak in society, it’s just 13 percent of the total active customer base. So, for those that consume up to 200 units, they are at 29 percent. So, you design a tariff in such a way that it does not disadvantage the weaker citizens because these are our relatives.” Read more: News Diggers
Common Market for Eastern and Southern Africa (COMESA) says its exports to China increased from US$24 billion in 2022 to US$25 billion in 2023, representing 3% growth. Speaking when she received letters of credence from Chinese Ambassador to Zambia, Han Jing, who is now formally Accredited Special Representative to COMESA, Secretary General, Chileshe Kapwepwe also revealed that the China export market accounted for 13% of COMESA’s global exports in 2023. “China has long been a valued partner of COMESA. China remained one of the major sources of imports for the COMESA region commanding a market share of 19% of COMESA’s imports in 2023.” “The value of imports from China increased by 1.8% from US$48 billion in 2022 to US$49 billion in 2023,” Ms. Kapwepwe stated. Meanwhile, Ms. Kapwepwe disclosed that COMESA and the Chinese Embassy are currently drafting a Memorandum of Understanding (MoU) to formalize their collaboration and areas of cooperation include Hydropower as well as Solar energy, Industrialization, Trade, Capacity building, and Agriculture, among others. Read more: Money FM
In International News
A quarter of the world’s copper mining projects are at increasing risk from the impacts of climate change, with extreme rainfall expected to affect production of the metal crucial for the global clean energy transition by 2050, new research shows. According to a study by risk intelligence firm Verisk Maplecroft, around 25% of global copper projects are projected to face “high” or “very high” risk of extreme precipitation by mid-century. Major copper-producing countries, including Canada, Australia, and the Democratic Republic of Congo (DRC), are expected to be the most vulnerable to climate-related disruptions. Verisk Maplecroft’s Extreme Precipitation Index, which measures the frequency and intensity of heavy rains across seven different time horizons and three emissions scenarios, shows that 19% of copper mines already face significant risk from extreme weather events. This number is expected to rise as global temperatures increase, leading to both more severe rainfall and drought. “Health and safety risks to workers, damaged access roads and electrical and structural damage at site facilities can all have an impact on production,” says Jimena Blanco, chief analyst at Verisk Maplecroft. She notes these impacts will likely extend beyond the mine site, affecting local communities and supply chains. Read more: Mining
Qatar Airways has acquired a 25% stake in the privately owned South African carrier Airlink. The announcement was made Tuesday (Aug. 20). No financial details of the deal were immediately disclosed. Airlink flies to more than 45 destinations in southern and East Africa. The deal will enhance an existing code-share agreement between the airlines, they said. “Our investment further demonstrates how integral we see Africa being to our business’ future,” the CEO of the Qatari state-owned carried said. Abidjan, Abuja, Accra, Harare, Luanda and Lusaka are among the African cities newly added to the extensive Qatar Airways network. Read more: Africa News
Ghanaian President Nana Akufo-Addo has officially launched the construction of a 300,000 barrel-per-day oil refinery. However, critics have raised concerns about potential flaws in the project. Ghanaian President Nana Akufo-Addo has officially launched the construction of a 300,000 barrel-per-day oil refinery, which will position Ghana as a key petroleum hub in the region. However, critics have raised concerns about potential flaws in the project. Ghana, known as the world’s second-largest cocoa producer, began producing oil in 2010 and currently outputs about 132,000 barrels of crude oil per day along with 325 million standard cubic feet of natural gas daily, Reuters reported. Bright Simons, a vice president at the Accra-based think tank IMANI Africa, expressed scepticism, stating that the consortium behind the refinery “is not primed for investment and the project lacks a bankable business plan. Our position is that this is a speculative attempt to grab a landbank for cheap,” he said.” Read more: Business Insider
One of Libya’s dueling authorities unilaterally fired the country’s powerful central bank governor in an abrupt move that is likely to inflame tensions in the divided North African country. The presidential council in the capital of Tripoli, which is allied with the government of Prime Minister Abdul Hamid Dbeibah that controls western Libya, removed Gov. Sadiq al-Kabir, according to a decree issued late Sunday. In his place, the council appointed Mohamed Abdul Salam al-Shukri, an economist and former deputy governor, as the new governor for the Central Bank of Libya. Al-Kabir had led the central bank since October 2011 — the year that Libya was plunged into chaos after a NATO-backed uprising toppled longtime dictator Moammar Gadhafi. During that time, he accumulated significant influence and power but also faced criticism from officials on both side of the country’s political divide in allocating Libya’s oil money. In recent months, that criticism has turned into calls for his removal. There was no immediate comment from al-Kabir. Oil-rich Libya has been split between a U.N.-supported government in the capital, Tripoli, and rival authorities based in the east. Different armed groups and foreign governments have backed each side. Read more: Africa News
Finally, Capital Markets News
In 151 trades recorded yesterday, 82,082 shares were transacted resulting in a turnover of K402,960.94. The following price changes were recorded yesterday: +K2.50 in Chilanga Cement, -K0.02 in Standard Chartered Bank Limited, -K10.00 in ZCCM, +K0.07 in ZAFFICO and -K0.01 in ZANACO. Trading activity was also recorded in Airtel, CEC Zambia, Pamodzi, Real Estate Investments Zambia, Zambeef and CEC Africa on the quoted tier. The LuSE All Share Index (LASI) closed at 14,432.84 points, 0.74% higher than its previous day close at 14,424.43 points. The market closed on a capitalization of K117,191,848,917.81 including Shoprite Holdings and K73,713,492,117.81excluding Shoprite Holdings.
5 Govt Bond trades with total quantity K6,625,580 and turnover K5,066,120 were processed yesterday.
