Good morning. Here’s what you need to know
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Zambia’s new dollar bonds eke out gains on first trading day
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Mopani Copper Mine pays US$13 million in taxes since March, 2024
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UK economy fails to grow
In Local Business and Finance News
Zambia’s freshly launched bonds chalked up small gains during their first day of trading on Tuesday as the southern African country emerged from nearly four years of sovereign default. The country concluded its $13.4 billion debt restructuring earlier this month, allowing it to shave $900 million from the total debt and to spread repayments over a longer time. The government secured investor approval to issue two new Eurobonds, in place of the three outstanding before the debt rework deal was signed. The 2033 maturity was bid at 88.875 cents in the dollar at open, Tradeweb data showed, before climbing as high as 89.75 cents and hovering within a slither of that by late European trading. XS2837240261=TE The 2053 bond started the session bid at 52.750 cents before rising to as high as 53.325 cents. XS2837240428=TE. Read more: XM
Mopani Copper Mines has paid approximately US$13 million or K341 million in taxes since its takeover by International Resources Holdings (IRH) in March, 2024. Speaking when he paid a courtesy call on Finance Minister Dr. Situmbeko Musokotwane today, IRH Chief Financial Officer, Abhinay Khowala said there is a great deal of enthusiasm among the work force since the revival of Mopani by IRH. Mr. Khowala described Zambia as a mining paradise, hence his firms’ keenness to ensure that Mopani lumps-up production to optimum levels by putting in place efficient systems of production, mine administration, and supply chain management. “Since the revival of Mopani by IRH and the Zambian Government, “there is a great deal of enthusiasm among the work force, we are all excited to contribute to the viability of Mopani and the growth of the Zambian economy,” Mr. Khowala stated. And Dr. Musokotwane said Zambians have high expectations in the US$1.1 billion investment that IRH has made in Mopani. “This is why the start you have made in meeting your tax obligations is a step in the right direction” for job creation, company stability, and expanded business prospects,” Dr. Musokotwane. Read more: Money FM
Zambia has a significant funding gap for Small Medium Enterprises (SMEs) amounting to a total of K30 billion in project opportunities, authorities say. Special Assistant and Advisor to President Hakainde Hichilema on Economic, Investment and Development Affairs, Jito Kayumba, emphasised the need for financial institutions to take advantage of this situation. Kayumba said this during a panel discussion at the 2024 Impact Capital Africa Summit held at Ciela Resort in Lusaka Province’s Chongwe District on Tuesday. He highlighted that only K350 million was being allocated annually to the Citizens Economic Empowerment Commission (CEC) and that this showed the large funding gap. Read more: Zambia Monitor
President Hakainde Hichilema says Zambia is building upon its reputation as a strong investment destination, and that this is evidenced by increased investor confidence through Foriegn Direct Investments (FDIs). Hichilema said this was coupled with a rise in Gross Domestic Product (GDP) despite the devastating drought that had constrained the country’s economic growth. The President said this via a video address to the Impact Investment Conference (ICA) 2024 held at Ciela Resort in Chongwe District of Lusaka Province on Tuesday. He stated that Zambia would remain resilient and continue to post growth beyond expectations of some of the stakeholders, assuring government’s commitment to sustainable development. Read more: Zambia Monitor
In a heartfelt farewell, Zambia has honored His Excellency Nicholas Woolley, the outgoing High Commissioner of the United Kingdom to Zambia, who concluded his tour of duty today. President Hakainde Hichilema highlighted the deepening of government-to-government and people-to-people relationships between Zambia and the United Kingdom during Woolley’s tenure. These relationships are rooted in shared values such as democracy, the rule of law, liberty, and the fight against corruption. High Commissioner Woolley played a crucial role in supporting Zambia through some of its most challenging times, including the COVID-19 pandemic, debt restructuring negotiations, and the El Niño-induced drought that impacted food and energy security. “We express our gratitude to the High Commissioner and the people of the United Kingdom for their pivotal role during these challenges,” President Hichilema stated. Read more: Lusaka Times
In International News
The UK economy failed to grow in April after particularly wet weather affected consumer spending. The Office for National Statistics (ONS) recorded no growth for the month, which was in line with economists’ expectations. The sluggishness comes after the UK economy recorded its fastest growth in two years from January to March, exiting the recession it fell into in the final half of last year. The economy is a key battleground for the main political parties in the run-up to the general election on 4 July. Spending on services grew for the fourth month in a row, but this was off-set by falls in production and in the construction industry. The UK’s gross domestic product (GDP), which measures the value of goods and services produced in a country over time, had grown 0.4% in March. Read more: BBC News
The BRICs group’s latest member, Ethiopia, seems to have begun leveraging the group to bolster economic ties with fellow members of the bloc. Ethiopia and Russia reaffirmed their commitment to bolstering political dialogue and unifying strategies within the UN and BRICS. Additionally, they addressed various crises in Africa, focusing on the Horn of Africa. At the meeting, there was also a private conversation on working with foreign groups. Along with discussing crises throughout Africa, the ministers concentrated particularly on the situation in the Horn of Africa. Read more: Business Insider
Access Bank Plc has announced the successful acquisition of African Banking Corporation (Tanzania) Limited, aligning with its strategic expansion plans. The bank said in a statement that this milestone follows its initial announcement in July 2023, marking another significant step in its journey to become the world’s most respected African bank. Speaking on the development, Access Bank’s Managing Director/Chief Executive Officer, Roosevelt Ogbonna, said ‘This strategic move represents a notable step towards setting a railroad in Tanzania for intra-African trade within the East African region, Africa and the rest of the world. “It underscores our commitment to creating a robust East African banking network, driving positive change and innovation,” Read more: Business Insider
The S&P 500 and Nasdaq registered record closing highs for a second straight day on Tuesday, helped by a gain of more than 7% in Apple shares, while investors also awaited consumer prices data and a policy announcement from the Federal Reserve. Apple shares jumped 7.3% to a record-high close and gave the S&P 500 and Nasdaq their biggest boosts after the stock declined in the previous session. At its annual developer event that kicked off on Monday, Apple unveiled new artificial-intelligence features meant to increase the appeal of its devices, including an improved Siri virtual assistant that can answer a wider range of queries and accomplish more complicated tasks than earlier. The S&P 500 technology index climbed 1.7% and also posted a record closing high. The Consumer Price Index report will be released before the bell on Wednesday, and the U.S. central bank’s policy announcement is due later the same day. Read more: Reuters
Four more U.S. states on Tuesday joined the Justice Department’s lawsuit against Apple Inc alleging the iPhone maker is monopolizing smartphone markets, the department said in a statement. The four states are Indiana, Massachusetts, Nevada and Washington, the Justice Department said. The original lawsuit was filed in March, and 15 states and the District of Columbia joined the lawsuit at the time. The lawsuit alleges that Apple uses its market power to get more money from consumers, developers, content creators, artists, publishers, small businesses and merchants. The civil lawsuit accuses Apple of an illegal monopoly on smartphones, maintained by imposing contractual restrictions on, and withholding critical access from, developers. The Justice Department has previously said Apple charges as much as $1,599 for an iPhone and makes a larger profit than any rival. Officials also said Apple imposes hidden charges on various business partners – from software developers to credit card companies and even rivals such as Alphabet’s Google, in ways that ultimately raise prices for consumers. Read more: Reuters
Finally, Capital Markets News
In 115 trades recorded yesterday, 18,255 shares were transacted resulting in a turnover of K135,431.74. The following price changes were recorded yesterday: K0.01 loss in ZANACO. Trading activity was also recorded in CEC Zambia, Chilanga Cement, PUMA, Real Estate Investments Zambia, Standard Chartered Bank Limited, ZCCM, Zambeef and CEC Africa on the quoted tier. The LuSE All Share Index (LASI) closed at 13,148.98 points, 0.05% lower than its previous close of 13,155.41 points. The market closed on a capitalization of K101,527,487,657.00 including Shoprite Holdings and K66,744,802,217.00 excluding Shoprite Holdings.
13 Govt Bond trades with a total face value of K17,074,000 and turnover K12,992,9900 were processed yesterday.