Good morning. Here’s what you need to know
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BoZ takes over Investrust Bank PLC due to insolvency
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Zambia’s economy grew by 5.8% in 2023, ZamStats claims
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Zimbabwe Declares Drought a Disaster, Joining Malawi and Zambia
In Local Business and Finance News
Since dropping Part 1 of the KoBold Mysteries, Financial Insight has made a series of staggering findings. We are managing the content, even as we recover from the shocks. These new discoveries have led to a slight rearrangement. The KoBold Mysteries shall now have—at the very least—a “Part 3.” Also note that we contacted KoBold Metals and invited them to comment on all these findings, and they graciously declined. In part 1 of this series, we saw a compelling set of announcements around a singularly remarkable discovery in Chililabombwe, Zambia. The announcements reverberated around the Cape Town International Convention Centre (CTICC), to delegates of the Investing in African Mining Indaba who received them with exuberant enthusiasm. However, back in Lusaka and the Copperbelt, the news had a lukewarm reception at best and, at worst, evoked outright, ferocious hostility. Read more on Financial Insight
The Bank of Zambia has announced that it has taken over the running of Investrust Bank Plc because the bank is now insolvent. The action is in line with Section 64 of the Banking and Financial Services Act No. 7 of 2017. In a statement, the Central Bank says the possession of the bank from April 2nd 2024 has been necessitated by its insolvency. “The Bank of Zambia has had numerous engagements with the shareholders to recapitalise the bank. Unfortunately, the shareholders have been unable to resolve the insolvency. Under the circumstances, the Bank of Zambia has had to exercise its authority under the law to safeguard financial stability and the interests of the public,” the statement read. The Bank of Zambia said it is also working with key stakeholders, including the Government, on mechanisms for depositors not to lose any of their money. Read more: Lusaka Times
The Lusaka Securities Exchange (LuSE) has halted trading in the securities of Investrust Bank PLC following the takeover of the bank by the regulator on Tuesday, April 2. “This notice serves to inform the public that trading in the securities of Investrust Bank PLC( ISIN: ZM0000000235) has been halted on all LuSE platforms,” it stated. This is according to a notice posted on LuSE on Wednesday. The notice stated that the halt had been effected in the interest of maintaining an orderly, fair, efficient and transparent market pursuant to section 4:14 of LuSE trading procedures. This is with effect from April 3. It stated that LuSE remained committed to updating the public on any developments in this regard. Read more: Zambia Monitor
Zambia’s economy is estimated to have grown by 5.8 percent in 2023, compared to 5.2 percent the previous year. The above figures are based on the preliminary Gross Domestic Product (GDP) estimates at constant 2010 prices for the year 2023. Statistics showed that information and communication industry had the highest positive contribution at 2.6 percent, while agriculture, forestry and fishing industry negatively impacted GDP growth at -0.6 percent. In giving the estimates on Zambia’s GDP, Zambia Statistical Agency (ZamStats) Acting Statistician General, Chola Daka, told journalists in Lusaka that arts, entertainment and recreation had the highest growth rates at 39.2 percent. Daka said this was followed by information and communication activities at 28.8 percent and accommodation and food service activities at 25.7 percent. She mentioned that industries such as agriculture, forestry and fishing had negative growth posting a -9.1 percent, with mining and quarry at -5.8 percent. Read more: Zambia Monitor
The First National Bank (FNB) Zambia has announced that the Bank has acquired land and will commence construction of a new Head Office Premises in Lusaka, Zambia. FNB which started operating in Zambia on 1 April 2009 has over the years enjoyed significant growth and now has presence across all 10 provinces of Zambia through a network of ATMs and Advanced Deposit Terminals (ADTs), Branches and CashPlus agency banking solutions. Speaking on the new head office plans, FNB Zambia Chief Executive Officer, Kapumpe Chola disclosed that the Bank has acquired a piece of land on Tito Road in Rhodes Park – Lusaka, where it intends to commence construction of the FNB Zambia new Head Office premises within the next months. Read more: Zambian Business Times
In International News
Zimbabwe’s president declared a state of national disaster over a drought that’s curbed farm output in the southern African nation. The announcement follows similar declarations last month in neighboring Zambia and Malawi, where poor rainfall has cut production of the staple corn and other grains and contributed to higher food prices that have hurt poor households. The El Niño weather phenomenon resulted in swathes of southern African experiencing its driest February in decades this year. Read more: Bloomberg
India’s manufacturing industry witnessed a solid growth in March, expanding at the fastest pace in 16 years due to accelerating demand. Hiring increased at the strongest rate in six months too. The HSBC final India Manufacturing Purchasing Managers’ Index, compiled by S&P Global, rose to the highest since February 2008. “The seasonally adjusted HSBC India Manufacturing Purchasing Managers’ Index™ (PMI) climbed to a 16-year high of 59.1 in March, from 56.9 in February. The notable improvement in operating conditions reflected stronger growth of new orders, output and input stocks as well as renewed job creation,” said S&P. The stellar performance was complemented by employment that returned to positive territory and firms scaling up buying levels. There was a mild pick-up in cost pressures during March, but customer retention remained a priority for goods producers, who raised their charges to the lowest extent in over a year. Growth of new orders accelerated to the quickest in nearly three-and-a-half years in March, inflows of new work strengthened, new export orders increased at the fastest pace since May 2020. Read more: Business Today
Inflation in the 20-nation euro zone eased to 2.4% in March, according to flash figures published on Wednesday, boosting expectations for interest rate cuts to begin in the summer. Economists polled by Reuters had forecast the rate would hold steady against the previous month at 2.6%. The core rate of inflation, excluding energy, food, alcohol and tobacco cooled from 3.1% to 2.9%, also coming in below expectations. However, inflation in services — a key watcher for the European Central Bank — remained stuck at 4% for a fifth straight month, pointing to continued pressure from wage growth. Price rises in France and Spain came in lower than forecast last week. On Tuesday, headline inflation in the bloc’s biggest economy, Germany, was estimated at a three-year low of 2.2%. Another indicator for the ECB released Wednesday, the euro area unemployment rate, stood at 6.5% in February, stable against January but down from 6.6% in February 2023. Markets expect the central bank will begin lowering interest rates in June — a position reflected in the recent messaging of ECB decision-makers. They are next set to hold a monetary policy meeting on April 11. Read more: CNBC
Nigeria’s Dangote oil refinery has started supplying petroleum products to the local market, a major step in the country’s journey towards energy self-sufficiency. This confirmation was provided by a company executive and fuel marketing associations. Nigeria is one of the world’s leading oil-producing countries but due to a lack of functional refinery, all its crude oil is exported for refining and then imported back into the country. Dangote refinery is meant to close that gap. Devakumar Edwin, an executive at Dangote Group, confirmed the arrival of diesel and jet fuel shipments in the local market. Read more: Business Insider
Finally, Capital Markets News
In 104 trades recorded yesterday 28,440 shares were transacted resulting in a turnover of K168,916.78. The following price changes were recorded yesterday: -K0.0,01 in CEC Zambia, +K0.42 in Real Estate Investments Zambia, +K0.03 in Standard Chartered Bank Limited and +K0.13 in ZANACO. Trading activity was also recorded in PUMA, Zambia Breweries, Zambeef, Zambia Sugar and ZAFFICO. The LuSE All Share Index (LASI) closed at 12,759.35 points, 0.44% higher than it’s previous close at 12,703.03 points. The market closed on a capitalization of K98,006,332,593.90 including Shoprite Holdings and K63,223,647,153.90 excluding Shoprite Holdings.
19 Govt Bond trades with total face value of K114,972,000 were processed yesterday, resulting in a total turnover of K98,225,620.