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Zambia asks IMF for $188 million even if debt restructuring deal isn’t reached
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China says US avoiding responsibility in Africa debt relief
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In the final week of March, bonds of total face value of K299,030,000 were transacted in 54 trades
Story of the Day
Tech recruiters have to keep in mind talent shortages, layoffs, budget cuts and economic uncertainty, as well as diversity, equity and inclusion mandates. Suffice it to say, it’s not an easy time to be a recruiter. But LinkedIn’s The Future of Recruiting 2023 report finds that generative AI tools such as ChatGPT may take some of the pressure off. About two-thirds (68%) of hirers surveyed in February 2023 said they were “very hopeful” or “cautiously optimistic” about generative AI’s impact on recruiting. “Generative AI — i.e., tools like ChatGPT that intelligently generate content — is a fascinating new technology that holds promise for talent professionals, many of whom believe it can help in time-consuming tasks, like drafting job descriptions and personalized messages to candidates, among others,’’ the report said. Read more
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Zambia’s finance minister asked the International Monetary Fund to release about $188 million to the southern African nation even if its creditors aren’t able to reach agreement on how to deal with the nation’s debt. “What will be the point of punishing a country that is performing,” Situmbeko Musokotwane said in an interview on Bloomberg Television Tuesday. “Zambia has performed according to the program, so it must not be punished. It must be rewarded.” The finance chief spoke in in Washington, where he is meeting with IMF executive directors during the organization’s Spring Meetings “to appeal to them” for a solution. “Let’s work together to make sure that the debt is resolved,” he said. “Given the possibility that the MOU is not signed, Zambia should not be punished.” Read more: Bloomberg
Finance and National Planning Minister Dr Situmbeko Musokotwane has described the first day of the 2023 Spring Meetings of the International Monetary Fund (IMF) and the World Bank Group (WBG) as “engaging, reassuring and a healthy platform for consolidating Zambia’s attractiveness as one of Africa’s best reformers and investment destinations.” “The meetings have started on a good note for Zambia,” he declared. During the day’s series of meetings with the WBG, IMF, and various IMF Executive Directorates, namely, Japan, and Netherlands and Belgium, Zambia took the opportunity to engage the global community on the economy, infrastructure development through public private partnerships, implementation of the on-going IMF Enhanced Credit Facility Programme, and on the benefits of attaining sustainable debt status to both the country and creditors, upon the anticipated successful completion of the debt restructuring process under the G-20 Common Framework. “To deal with food supply constraints in the region, we will implement measures to not only improve the productivity of our small-scale farmers, but also attract large scale capital, technology and skills so that more agro-based jobs are created for our citizens; wealth circulates in communities via out-grower ventures; and, that the market is flooded with Zambia produced food in the near-term,” stated the Minister. Read more: Lusaka Times
The UPND government is currently reviewing a draft bill that aims to replace the existing Public Private Partnership (PPP) Act. The Ministry of Infrastructure, Housing and Urban Development announced that the new legislation is being developed in response to identified bottlenecks in the current PPP Act. According to the Permanent Secretary of the Ministry, Danny Mfune, the new PPP Act will introduce a number of changes to improve the legal framework for public-private partnerships in the country. Among the key changes is the creation of a dedicated PPP unit within the Ministry of Finance to oversee and facilitate the implementation of PPP projects. Read more: Lusaka Times
President Hakainde Hichilema says an emergency response has been activated to address the mealie meal shortage affecting certain regions of the country. Hichilema said he anticipates that the measures implemented will improve the situation and Government will closely monitor developments on the ground. He said he had convened multiple consultative meetings with both government and private sector officials at a high level at State House on Tuesday. Hichilema acknowledged the seriousness of the current situation, particularly with the shortage of the commodity in some neighbouring countries. “It is our appeal to the citizens to uphold the interventions implemented by the government and maintain lawful and orderly conduct,” he said this at his official social media handle. Earlier on Tuesday in a statement Finance and National Planning Minister, Situmbeko Musokotwane, announced that government has signed a statutory instrument to provide for suspension of duty on mealie meal. Read more: Zambia Monitor
Finance and National Planning Minister Dr Situmbeko Musokotwane says he does not think the inflation rate will revert to a double-digit. A fortnight ago, ZAMSTATS disclosed that the annual inflation rate for the month of March 2023 had increased to 9.9 percent from the 9.6 percent recorded in February 2023. ZAMSTATS Statistician General Mulenga Musepa attributed the upward adjustment in inflation to increases in prices of selected non-food items. Asked, in an interview, if the current trend would see the inflation revert to a double-digit, Dr Musokotwane responded in the negative. “No I don’t think so.” Read more: News Diggers
Bank of Zambia Exchange Rates
Currency | Buying | Selling |
---|---|---|
USD | 19.4106 | 19.4606 |
GBP | 24.1371 | 24.2012 |
EUR | 21.1906 | 21.2529 |
ZAR | 1.0601 | 1.0631 |
In International Business News
China on Monday urged the United States to earnestly shoulder its responsibilities and make greater efforts to address debt issues in African countries. Chinese Foreign Ministry Spokesman Wang Wenbin made the call at a press conference in Beijing when responding to accusations from some U.S. and World Bank officials that China is an obstacle in African debt relief. “China attaches great importance to debt issues in Africa and actively helps African countries cope with the issues, and has made the largest contribution to the G20 Debt Service Suspension Initiative (DSSI). China is not the source of the debt trap of African countries, but a partner in helping them and other developing countries get out of the poverty trap” said Wang. Read more: Africa News
The UK is set to be one of the worst performing major economies in the world this year, according to the International Monetary Fund (IMF). It says the UK economy’s performance in 2023 will be the worst among the 20 biggest economies, known as the G20, which includes sanctions-hit Russia. The IMF predicts the UK economy will shrink this year, although this is a small upgrade from its last forecast. It also warned of a “rocky road” for the global financial system. Read more: BBC News
Financial data shows a sharp rise in the use of China’s yuan for financing globally, as some countries try to move away from reliance on the U.S. dollar. The Biden administration is continuing to deal with allies upset over revelations from a trove of leaked Pentagon files, which exposed classified details on the war in Ukraine as well as political and military affairs in the Middle East, China, South Korea and elsewhere. The director of the CIA warned that Russia risks becoming an “economic colony” of China as it becomes more isolated. Read more: CNBC
US Treasury Secretary Janet Yellen said she believes the American economy remains strong and its banking system is resilient despite some recent turmoil among regional financial institutions. “I’ve not really seen evidence at this stage suggesting a contraction in credit, although that is a possibility,” Yellen said at a press conference Tuesday ahead of the spring World Bank meetings. “I believe our banking system remains strong and resilient; it has solid capital and liquidity.” She added that the “US economy is obviously performing exceptionally well,” noting solid job creation, moderating inflation and robust consumer spending. “So I’m not anticipating a downturn in the economy, although of course that remains a risk,” she said. The global economy remains in a better place than many have expected, she said. Read more: CNN
In the final week of March 2023 bond trading, there was a full week of trades that was recorded of which Friday’s bond trading was the best performing day of the week. Bonds of total face value of K299,030,000 were transacted in 54 trades, resulting in a market value sales of K195,350,820. Bonds are a low-risk investment issued when the government borrows money from its people. You can purchase bonds using the Lusaka Securities Exchange Application online. Read more
In 91 trades recorded yesterday, 57,084 shares were transacted resulting in a turnover of K140,945.23. Trading activity was also recorded in AECI, CEC Zambia, PUMA, Zambeef, Zanaco as well as CEC Africa on the quoted tier. The LuSE All Share Index (LASI) maintainted its closed at 7,922.17 points. The market closed on a capitalization of K75,415,453,218.77 including Shoprite Holdings and K40,632,767,778.77 excluding Shoprite Holdings.
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