Good morning. Here’s what you need to know to start your day.
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Zambia’s GDP forecast to grow 4.2% in 2023 – Finance Ministry
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Shares in several regional banks in the US have dropped sharply
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Madison Financial Services recorded a profit after tax of K5.7 million compared to K40.7 million in 2021
Story of the Day
The world’s third-largest economy and oldest populace, Japan’s economic and financial path is unlike any other. Peaking in 1990 before the digital age took root, Japan’s 30-year economic stagnation bleeds into digital innovation. The prevalence of cash in everyday transactions is evident in the sheer number of cash-only ramen shops and ATMs dotting the country. Once upon a time, Japan was credited for commercializing mobile wallets back in 2004. But since then, Japan’s fintech industry has experienced gradual growth, and nowhere near the pace of other advanced economies. Considering its risk-averse culture, did Japan peak too early — and can its fintech prospects rebound nonetheless? Read more
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Zambia’s economy is projected to expand 4.2% in 2023, Secretary to the Treasury Felix Nkulukusa said on Tuesday, with growth dipping compared to last year as the southern African country battles to wrap up a long-delayed debt restructuring. Preliminary data indicated that the economy grew by 4.7% in 2022, a slight uptick from the 4.6% expansion in 2021, Nkulukusa said in a statement. GDP growth is forecast to be 4.8% in 2024 and 4.7% in 2025. Read more: Reuters
About K26.3 billion has been collected by government in the first quarter of 2023, as external debt swells to US$13.96 billion. This is as announced by the Finance and National Planning Minister, Situmbeko Musokotwane, at the 2023 first quarter budget performance in Lusaka on Tuesday. Musokotwane said this represented a 2.6 percent above the targeted revenue collection for the quarter. “This was largely due to favourable performance in value Added Tax (VAT) and exceptional revenue collected from Zambia Information Communication and Technology Authority (ZICTA) from the sale of bandwidth spectrum,” he said. He also pointed out that non-tax revenue collections amounted to K4.2 billion against a target of K3.83 billion. The collections from ZICTA largely accounted for this outcome. Read more: Zambia Monitor
The United States government has given Zambia 761.5 Million United States Dollars (USD) to help the country expedite the control of the HIV/ AIDS pandemic. USA Ambassador to Zambia, Micheal Gonzales says the funding is through the United States President’s Emergency Plan for AIDS Relief (PEPFAR) and will go towards Zambia’s national HIV response for the next two years. Mr Gonzales was speaking during the press briefing yesterday, where he disclosed that the money brings PEPFAR ‘s total commitment to Zambia’s HIV response to over 6.7 billion United States Dollars in the past 20 years. He said the funding will help the country address persistent gaps that have stood in the way of an AIDS free Zambia. Read more: Lusaka Times
Proflight Zambia is launching the first ever direct flights between Lusaka and Cape Town, reinforcing the nation’s new-found dominance of the skies between South Africa and Zambia. The Cape Town service is Proflight’s fourth South African route, adding to its Lusaka-Johannesburg, Ndola-Johannesburg and Lusaka-Durban flights. The direct service to South Africa’s second largest city, also known as the Mother City, means that for the first time travellers will no longer need to transit through Johannesburg. Proflight will operate the new route to South Africa’s legislative capital using its 50-seat CRJ jet, giving a flying time of 3 hours 15 minutes. Read more: Lusaka Times
Diversified mining company Anglo American has announced that it will be funding an education initiative in Zambia close to where it is involved in copper and cobalt exploration activities. “This is the right thing for local people, regardless of the outcome of our preliminary exploration on future mining activities,” Anglo Zambia discovery manager Adriana Blesa stated in a release. Up to now, Anglo’s education programmes have centred on South Africa, Zimbabwe, Brazil, Chile, Peru, the UK, Australia, and Canada, with programmes for Botswana and Namibia under scrutiny as part of De Beers’ Building Forever goals. The largest portfolios are in South Africa and South America, where the London- and Johannesburg-listed Anglo supports more than 600 schools. Read more: Mining Weekly
Bank of Zambia Exchange Rates
Currency | Buying | Selling |
---|---|---|
USD | 17.7776 | 17.8261 |
GBP | 22.1473 | 22.2096 |
EUR | 19.4700 | 19.5303 |
ZAR | 0.9656 | 0.969 |
In International Business News
Shares in several regional banks in the US have dropped sharply, as investors fear the banking crisis that has gripped financial markets is not over. The falls come a day after the collapse of First Republic, which was seized by regulators and sold after worried customers withdrew more than $100bn. It was the second biggest bank failure in US history and the third since March. Shareholders were wiped out – and are now eyeing risks at other banks. Read more: BBC News
Vice President Kamala Harris will meet with the chief executives of Google, Microsoft, OpenAI and Anthropic Thursday to discuss the responsible development of artificial intelligence, the White House confirmed to CNBC Tuesday. Harris will address the need for safeguards that can mitigate AI’s potential risks and emphasize the importance of ethical and trustworthy innovation, the White House said. An invitation to the event, which was viewed by CNBC, said the officials plan to engage in a “frank discussion” with the CEOs about AI, particularly regarding the risks stemming from “current and near-term” development of the technology. Read more: CNBC
Britain’s stock market rules could be radically simplified as part of efforts to lure major company listings to London, under detailed plans unveiled by the country’s financial watchdog on Tuesday. Britain’s appeal as a global financial centre has come into question in recent years as companies have increasingly sought listings in rival hubs such as New York and after the country was largely cut off from the European Union by Brexit. The Financial Conduct Authority (FCA) has proposed replacing Britain’s existing ‘premium’ and ‘standard’ listing segments with a single category, as part of a package of reforms designed to simplify the country’s listings rulebook. Read more: CNBC
The recent annual ranking of Africa’s fastest-growing companies by the Financial Times and Statista for 2023 reveals that companies in various sectors were able to develop their businesses even as the world shut down due to the pandemic. The ranking, now in its second year, shows that sectors such as fintech, renewable energy, healthcare, commodities, and agriculture were able to grow their businesses while much of the world was grappling with the pandemic’s impact.The report highlights that COVID-19 seems to have accelerated the move online, with companies providing digital services in finance, payments, trade facilitation, and healthcare all making headway. It also notes that Silicon Valley investors, as well as those in Asia and Europe, have discovered the potential in the African start-up scene, particularly in the tech hubs of Lagos, Cape Town, Johannesburg, Nairobi, and Cairo. Read more: Business Insider
Tesla has raised prices in its most important electric vehicle markets, including China and the United States, reversing a series of recent price cuts that have pushed the company’s profit margin to the lowest since 2020 and sparked a price war. The increases were the second time Tesla adjusted prices higher within a short period. Late last month, Tesla raised the prices of its higher-end vehicles: Model S and Model X by $2,500 in the United States. But these vehicles only accounted for a tiny portion of its total sales, 2.5%, in the first quarter. Read more: CNN
In compliance with the requirements of the Securities Act No. 22 of 2016 and the Listing Requirements of the Lusaka Stock Exchange, the Board of Directors of Madison Financial Services Plc wish to announce the Provisional Consolidated and Separate results of the Company for the year ended 31 December 2022. The Group recorded a profit after tax of K5.7 million compared to K40.7 million in 2021. The reduction in the profit from the previous year was mainly attributed to the increased reserving in the Life insurance funds and the exchange losses incurred towards the end of the year due to the depreciation of the Kwacha against the United States Dollar. Revenue grew by 4% with impressive growth in Fee income and Investment income which recorded growth of 75% and 44% respectively. Read more
In 20 trades recorded yesterday, 81,630 shares were transacted resulting in a turnover of K176,468. Trading activity was recorded in British American Tobacco Zambia, CEC Zambia, Chilanga Cement and Zambeef. The LuSE All Share Index (LASI)maintained its close at 8,018.80 points. The market closed on a capitalization of K75,836,077,305.26 including Shoprite Holdings and K41,053,391,865.26 excluding Shoprite Holdings.
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