Story of the Day
As Betty Wilkinson, the well accomplished head of FSD Africa, steps down from her official role Financial Sector Deepening Zambia has announced a new CEO in Engwase Mwale. She formerly served as an Ms Mwale formerly served as an executive Director of the Non-Governmental Coordinating Committee, an umbrella arm for a variety of NGO’s which cater to various social needs, specifically gender. Ms Mwale has a well decorated history advocating for women’s rights, having challenged the previous government’s alleged degradation of female candidates as an example. FSD is one of the largest Financial institutions in the country , with a current investment mandate exceeding but not limited to K400 million over 5 years. Read more
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The central bank in Africa’s red metal hotspot last Friday April 29 saw renewed interest in its fixed income offering as players priced in a more positive debt restructure outlook. This is supported by the recent IMF Spring sessions development concerning China’s stance to join Zambia debt restructure creditor club under the G20 common framework. Of the K3.4 billion appetite in bids, the Bank of Zambia absorbed K2.3 billion worth of bonds with significant interest in the 2,3 and 5 year tenors account for 75.0% of the sale. Proceeds of the sale were the second highest in 2022. Read more: The Business Telegraph
Mr. Chikwanda died today in Lusaka after an illness. And President Hakainde Hichilema says he is saddened by the death of Mr Chikwanda. President Hichilema has described Mr. Chikwanda’s contribution to national development as enormous. The President has also acknowledged and applauded Mr. Chikwanda’s public service leadership, which dates back to the pre-independence era. Read more: ZNBC
The new dawn government is set to expand the already bloated civil service wage bill by an additional K1.7 billion (about US$100 million) by the new teacher recruitment currently underway, a policy shift from spending on infrastructure to more focus human capital. It remains to be seen if the gamble by Finance Minister Situmbeko Musokotwane opting to fund human capital over continuing with an aggressive infrastructure drive will yield positive results for the Zambian economy. Read more: Zambian Business Times
South Africa has offered to co-chair a committee of Zambia’s creditors with France, at the request of the French government, South Africa’s finance ministry said on Friday. A spokesperson for the ministry added however that the creditor committee, which will aim to oversee the restructuring of the southern African country’s external debt, was not yet formed and that the co-chairs were not confirmed either. Zambia became the first pandemic-era sovereign default in 2020, struggling with debt that has reached 120% of GDP. Its debt was $31.74 billion at the end of 2021, according to official government data – of which $17.27 billion is external debt. Read more: Money Web
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HSBC has long prided itself on being the bank that connects East and West. Now it’s under pressure to rethink that model after a challenge from its top shareholder, one of the most powerful finance companies in China. Ping An, China’s largest insurer, is pushing for HSBC to overhaul its structure, which could mean ultimately decoupling the bank’s hugely profitable Asian business from its Western activities, according to a person familiar with the matter. The Chinese insurer has been calling for HSBC to explore a reorganization, with an eye on boosting its valuation, as well as simplifying its regulatory requirements around the globe, the person told CNN Business. Read more: CNN
The European Union is proposing to ban oil imports from Russia and remove the country’s biggest bank from the SWIFT international payments network as part of a sixth round of sanctions over the war in Ukraine. European Commission President Ursula von der Leyen unveiled the new package of measures during a speech to the European Parliament on Wednesday. “We now propose a ban on Russian oil,” she said. “Let’s be clear: it will not be easy. But we simply have to work on it. We will make sure that we phase out Russian oil in an orderly fashion, to maximize pressure on Russia, while minimizing the impact on our own economies.” Read more: CNN
Russia has avoided defaulting on its government debts by making necessary payments in US dollars, shortly before the final deadline passed on 4 March. $650m payments on international bonds were originally due on 4 April. The US Treasury blocked Russia from making the payments from reserves frozen by Western sanctions, raising the prospect of default. Russia offered to pay in roubles then changed its policy last week. Read more: BBC News
The Financial Times (FT) has released its inaugural annual ranking of Africa’s fastest-growing companies. The list comprises innovative, modern, and fast-growing companies that drive the international economy in the 21st century. According to the list, South Africa is the most represented country in the ranking, with 24 companies, followed by Nigeria (20) and Kenya (9). These are also the markets that have attracted the most venture capital and where unicorns (companies valued at $1bn+) and would-be unicorns have proliferated. Read more: Business Insider
According to a draft EU document seen by Bloomberg News, the EU plans to increase liquified natural gas imports by 50 billion cubic meters and boost shipments of pipeline gas from countries other than Russia by 10 billion cubic meters. Collectively, Nigeria, Algeria, Senegal, and Mozambique sit on close to 600 trillion cubic meters of natural gas. Nigeria is already the fourth biggest liquified natural gas supplier to Europe. There are several other countries in Africa with large gas reserves. Read more: CGTN
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In 79 trades recorded yesterday, 12,023 shares were transacted resulting in a turnover of K34,243. Share price losses were recorded in Copperbelt Energy Corporation of K0.20 and in Zanaco of K0.01. Trading activity was also recorded in Pamodzi, Standard Chartered Zambia, Zambeef and Zambia Sugar. The LuSE All Share Index (LASI) closed at 6,845.60 points, 1.15% down from its previous close of 6,924.34 points. The market closed on a capitalization of K70,616,476,871 including Shoprite Holdings and K35,833,791,431 excluding Shoprite Holdings.