Good morning. Here’s what you need to know
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President Hichilema announces $100 million investment plan to map Zambia’s mineral resources
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Govt hasn’t bought Zambeef’s Chiawa farm – Nkulukusa
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South Africa’s unemployment rate climbs to over 33% with over 8 million jobless
In Local Business and Finance News
The story of Africa’s energy sector is a speckled one. While major cities and economic centres have enjoyed access to electricity for decades, vast swathes of the continent remain unserved with power. According to Africa development bank, as of 2022, over 640 million Africans had no access to energy, corresponding to an electricity access rate of just over 40 percent, the lowest in the world. Per capita consumption of energy in sub-Saharan Africa (excluding South Africa) was 180 kWh, compared to 13,000 kWh per capita in the United States and 6,500 kWh in Europe. Africa continues to face significant challenges in meeting its energy needs. However, recent years have sprouted remarkable tales of success that offer hope and valuable lessons. Read more on Financial Insight
President Hakainde Hichilema has unveiled plans for a US$100 million investment to map Zambia’s mineral resources using modern technology. This initiative aims to tackle illegal mining activities and ensure that mining licenses are appropriately issued to qualified individuals, including Zambians. Speaking during the commissioning of the Phase 2 Maamba Collieries 300 Megawatts expansion project in Sinazongwe District, Southern Province, on Tuesday, Hichilema emphasized the importance of this investment. “I know Mamba Collieries has been given a Lithium exploration licence but before that I want to inform you that we are making an investment in mineral exploration US$100 million to map the country’s mineral resources using modern technology and we might tell you where that lithium is before you even start. “I have directed the Minister of Mines, Minister of Green Economy to ensure that there is no illegal mining activities in the country and the environment is well protected,” he said. Read more: Zambia Monitor
Secretary to the Treasury, Felix Nkulukusa, has clarified that government has not bought Zambeef’s Chiawa farm. However, Nkulukusa says IDC is considering purchasing the farm, and is currently undertaking due diligence on the property. Recently, government disclosed that it had purchased Zambeef’s Chiawa Estate Farm in Kafue District at $13.5 million and handed it over to the Zambia National Service (ZNS) and Zambia Correctional Service (ZCS) for its management. This announcement has attracted heavy criticism from many stakeholders who have questioned government’s decision to spend such a large sum of money on the farm when the state already has farming blocks that can be developed. Read more: News Diggers
Financial and commercial advisory service provider Greencrowd Partnership LLP has explored the potential of geothermal energy in southern Africa as Kalahari GeoEnergy Limited’s Bweengwa River project continues to progress In a report titled ‘Geothermal in Zambia: Energy Beyond Power’, Greencrowd made reference to the three key challenges facing the southern African country today – an overreliance on hydropower generation (which fuels 85% of its electricity); low levels of energy access (31% of the population has access); and an unmet energy deficit (estimated at approximately 500MW). More hope can be found in the near-limitless potential of geothermal power. Offering clean, reliable and stable baseload power and the ability to efficiently heat and cool homes, factories and other facilities (such as data centres) the Greencrowd research suggested it could be ‘the answer’ to the country’s energy challenges, and one that is unaffected by external weather forces. Read more: African Review
In International News
U.K. inflation rose to 2.2% in July, coming in slightly below expectations but inching back above the Bank of England’s 2% target, data from the Office for National Statistics showed Wednesday. Economists polled by Reuters had been expecting the headline consumer price index (CPI) to come in at 2.3%. The headline inflation had come in at 2% in both May and June, in line with the Bank of England’s target rate. The Office for National Statistics attributed the increase to housing and household services, saying gas and electricity prices had fallen by less than they did a year earlier. So-called core-CPI — which excludes food, energy, alcohol and tobacco prices — came in at 3.3% in July, down from the 3.5% print of July, the statistics office said. Meanwhile services inflation, which is closely watched by the Band of England, eased to 5.2% in July, compared to the previous month’s 5.7% reading. Read more: CNBC
South Africa’s unemployment rate increased by 0.6 percentage points from 32.9% in Q1 2024 to 33.5% in Q2 2024, the government’s statistics office reported Tuesday. Africa’s most industrialized economy has struggled to create jobs in recent years due to a long recession and most recently the Covid-19 pandemic. About 8.4 million people were out of work, up from 5.2 million in 2014. The number of employed persons fell by 92,000 to 16.7 million in Q2 2024. The sectors which saw the most job decreases include trade, agriculture and construction. Only manufacturing, social services and utilities added jobs. The figures are the first to be released since the May elections which brought in a coalition government which put reviving the ailing economy top of its agenda. Read more: Africa News
Japan’s Prime Minister Fumio Kishida will not seek re-election as leader of the ruling Liberal Democratic Party (LDP), which he says needs a “new start”. The 67-year-old LDP veteran is expected to step down as PM after the party elects a new leader in September. Support for Mr Kishida, who has been PM since 2021, has fallen in the wake of a corruption scandal involving his party, rising living costs and a slumping yen. His approval ratings had plummeted to 15.5% last month – the lowest for a PM in more than a decade. Read more: BBC News
According to Botswana’s central bank data, sales of rough diamonds in Botswana dropped by 49.2% in the first half of 2024. Botswana’s finance minister announced plans to cut spending on new vehicles and travel for government officials, and may delay certain capital projects in response to a decline in diamond revenues, according to Blomberg. “We have to seriously reduce the pace of spending, and we are looking at areas such as procurement of vehicles, computers, workshops and travel that is funded by government,” Finance Minister Peggy Serame told lawmakers on Monday. According to Botswana’s central bank data, sales of rough diamonds in Botswana dropped by 49.2% in the first half of 2024. This decline in sales is a major blow to the Southern African nation, which derives 30%-40% of its revenue, 75% of its foreign exchange earnings, and a third of its national output from sales of rough diamonds. Botswana’s budget revenue for the first quarter of the fiscal year, beginning in April, fell short by about 28%, totalling only 23.4 billion pula ($1.7 billion), primarily due to lower diamond revenues and sales, according to Finance Minister Peggy Serame. “If things do not improve, we will also have to look at delaying some projects that we had planned,” Serame stated. Read more: Business Insider
Finally, Capital Markets News
In 123 trades recorded yesterday, 61,296 shares were transacted resulting in a turnover of K522,579.92. The following price changes were recorded yesterday:+K0.02 in CEC Africa, +K0.14 in Chilanga Cement, -K0.27 in Standard Chartered Bank Limited and -K0.08 in ZANACO. Trading activity was also recorded in Airtel, Bata, CEC Zambia, Real Estate Investments Zambia, ZCCM and Zambeef. The LuSE All Share Index (LASI) closed at 14,362.69 points, 0.83% lower than its previous day close at 14,482.90 points. The market closed on a capitalization of K118,038,944,814.17 including Shoprite Holdings and K74,560,588,014.17 excluding Shoprite Holdings.
13 Govt Bond trades with total quantity K36,367,000 and turnover K25,225,320 were processed yesterday.
