Good afternoon. Here’s what you need to know
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Zambia reports 60% increase in revenue collection
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UK Inflation falls to lowest level in almost three years
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Nvidia becomes world’s most valuable company
In Local Business and Finance News
GL Africa Energy (GLAE), a leading pan-African energy solutions company, announced the appointment of Brian Mushimba, Ph.D. as Chief Executive Officer of its Power business unit. A respected industry leader with over 25 years of experience, Dr. Mushimba will spearhead GLAE’s power generation and infrastructure initiatives across the continent. “With escalating energy demands and the pressing need for sustainable solutions, Brian’s leadership arrives at an opportune time for our company and the region,” said Diana Obath, Strategic Communications Manager of GL Africa Energy’s parent company, Janus Continental Group. “His track record of delivering innovative energy projects combined with his deep expertise in the African market make him an exceptional fit to guide our Power business into a future of reliable energy access.” Read more on Financial Insight
The Zambian government has reported a significant 60 percent increase in revenue collection by the Zambia Revenue Authority (ZRA) over the past two years, attributing this success to the utilisation of Artificial Intelligence (AI). Felix Mutati, Minister of Technology and Science, highlighted AI’s pivotal role in enhancing ZRA’s capacity for revenue collection and improving tax compliance. Speaking during a lecture on AI at the University of Lusaka Silverest Campus in Chongwe District, Mutati indicated the importance of embracing AI, noting its wide-ranging benefits across justice, business, security, and agriculture sectors. Mutati underscored AI’s potential to facilitate justice by enabling real-time translation of court proceedings for individuals who do not understand English, thus ensuring fair legal processes. Furthermore, Mutati disclosed AI’s capability in weather prediction, aiding the country in preparing for adverse conditions like floods and droughts. On digital infrastructure, Mutati announced that Zambia had successfully connected seven of its eight neighboring countries to fiber optic networks, with Mozambique set to be connected by the end of June. Read more: Zambia Monitor
The World Bank has pledged approximately US$600 million to support Zambia’s social protection programs. This commitment aims to bolster initiatives that drive productivity, human capital growth, and development outcomes. World Bank Country Representative, Nadia Salim, emphasized the Bank’s dedication to ensuring access to basic needs such as health, education and a decent standard of living, noting that social protection was a fundamental human right. Speaking during the launch of Social Protection Week in Lusaka on Monday, Salim stated: “Our goal is to create a society where everyone can live in. Social protection helps to build resilient communities and promotes economic growth, equality, and poverty reduction.” Read more: Zambia Monitor
CHX Mining is close to concluding a deal to buy Zambia’s Lubambe Copper Mine, two sources told Reuters, in the latest in a string of copper deals by Chinese companies intent on growing their control of the African copper mining industry. The Shanghai listed mining services and contracting firm’s deal to buy an 80% stake in Lubambe mine held by EMR Capital is now nearing completion, the sources said. JCHX’s plans had almost been scuppered after cash-rich Abu Dhabi upstart International Resources Holding (IRH) had been poised to be an interloper after announcing its interest in the same assets earlier this year. IRH is a unit of the United Arab Emirates’ most valuable company, International Holding Company. Since then, however, the sources said IRH have bowed out, leaving JCHX with a clear path to close the deal in the coming weeks. Read more: Mining Weekly
In International News
Inflation has hit the Bank of England’s target for the first time in almost three years. Prices rose at 2% in the year to May, down from 2.3% the month before, official figures show. The economy is a key talking point in the run-up to the general election on 4 July, with all of the main parties battling over how they would keep the cost of living under control. The Conservatives said their “difficult decisions” were paying off, but Labour said pressures on family finances were “still acute”. It comes ahead of a Bank of England decision on UK interest rates this Thursday. The bank is expected to hold the rate at 5.25% – a 16-year high – for the seventh meeting in a row. Markets are not betting on a cut until August. The drop in May’s inflation figure was driven by slower price rises for food and soft drinks, recreation and culture, and furniture and household goods. Read more: BBC News
Nvidia became the world’s most valuable company after its share price climbed to an all-time high on Tuesday. The stock ended the trading day at nearly $136, up 3.5%, making it more valuable than Microsoft. It overtook Apple earlier this month. American company Nvidia makes computer chips needed for artificial intelligence (AI) software, and demand for its products has boosted its sales and profits over the last few years. Many investors believe its earnings can grow even more, which has caused its share price to soar, though some have questioned its sky-high valuation. Tuesday’s share price rally means the market now values the company at $3.34tn, with the price having nearly doubled since the start of this year. Eight years ago, the stock was worth less than 1% of its current price. Read more: BBC News
Production at U.S. factories increased more than expected in May, recouping all the declines in the prior two months, but the momentum is unlikely to be sustained amid higher interest rates and softening demand for goods. Manufacturing output jumped 0.9% last month following a downwardly revised 0.4% drop in April, the Federal Reserve said on Tuesday. Economists polled by Reuters had forecast factory output rebounding 0.3% after a previously reported 0.3% fall in April. Production at factories had declined in March and April. It gained 0.1% year-on-year in May. Manufacturing, which accounts for 10.4% of the economy, has been hamstrung by higher borrowing costs. Read more: Reuters
Chinese automakers have urged Beijing to hike tariffs on imported European gasoline-powered cars in retaliation for Brussels’ curbs on Chinese EV exports, the state-backed Global Times newspaper said on Wednesday. In a closed-door meeting on Tuesday also attended by European car companies, China’s auto industry “called on the government to adopt firm countermeasures (and) suggested that positive consideration be given to raising the provisional tariff on gasoline cars with large-displacement engines,” according to the report. Read more: Reuters
Nigeria’s headline inflation increased for the 17th consecutive time to 33.95% in May 2024, up from 33.69% in April, according to the latest Consumer Price Index and Inflation report released by the National Bureau of Statistics (NBS) on Saturday. Year-on-year, the headline inflation rate in May 2024 increased by 11.54 percentage points compared to May 2023, when it stood at 22.41 per cent. Month-on-month, the headline inflation rate for May 2024 was 2.14 per cent, slightly lower than the 2.29 per cent recorded in April 2024. Read more: Business Insider
Finally, Capital Markets News
In 137 trades recorded yesterday 29,295 shares were transacted resulting in a turnover of K134,760.82. The following price changes were recorded yesterday: +K0.33 in CEC Zambia, +K0.20 in PUMA and -K0.02 in ZANACO. Trading activity was also recorded in Airtel, Chilanga Cement, Real Estate Investments Zambia, Standard Chartered Bank Limited, Zambia Breweries, Zambeef, Zambia Sugar and CEC Africa on the quoted tier. The LuSE All Share Index (LASI) closed at 13,340.86 points, 1.03% higher than its previous day close at 13,205.46 points. The market closed on a capitalization of K102,388,236,613.95 including Shoprite Holdings and K67,605,551,173.95 excluding Shoprite Holdings.
14 Govt Bonds trade with total face value of K51,417,000 and turnover K42,346,140 were processed yesterday.
