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Zambia’s mining industry records $3.4 billion in investments
Zambia Unveils Digital Hubs: Free Internet Access for All Citizens
China leaves lending benchmark rates unchanged as expected

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Zambia’s mining sector has in 2023 recorded US$3.4 billion in investment commitments, an achievement which has been hailed by the country’s mines body. Statistics from the Zambia Chamber of Mines (ZCM) indicated that the country’s mining sector had this year recorded US$3.4 billion in investment commitments in 2023, compared to the US$1.7 billion that was pledged last year. ZCM Chief Executive Officer, Sokwani Chilembo, revealed that from 2021 to 2023, a cumulative total of close to US$1 billion of capital expenditure had already been spent on turning existing operations around. Reflecting on the performance of the industry in 2023, Chilembo in a statement issued on Monday stated: “It has been a very good year, both in terms of investment commitments and progress on the ground.” Read more: Zambia Monitor

A border development strategy is currently being developed by government in an effort to ensure Zambia has more One Stop Border Posts (OSBPs), essential for smooth trade facilitation. The development of the strategy is being done by the Ministry of Commerce, Trade and Industry, says Zambia Border Post Upgrading Project (ZBPUP) Project Officer, Wilson Mazimba. Mazimba, at a ZBPUP in an interview on the side-lines of the media training and sensitisation workshop in Chipata last week, observed the need for Zambia to have more OSBPs to encourage trade facilitation. Read more: Zambia Monitor

Zambia has a population of over 20 million, and poor infrastructure, particularly in rural areas, has led to inconsistent Internet service. According to DataReportal’s Digital 2023, the country has an Internet penetration rate of 21.2%, representing 4.3 million Internet users. “These centres will not only provide Internet access but will also serve as training grounds for digital literacy and skills programs, including digital entrepreneurship and innovation, creating opportunities for jobs and empowerment,” Mutati said. The hub will offer several electronic government services, including trading licences, cooperative registration, road taxes, and social cash transfers. On Monday, the Minister announced that it had successfully extended fibre connectivity to seven of the eight neighbouring countries via tax incentives and concessions. This move will boost digital infrastructure through a partnership effort between the government and the private sector. These seven countries are the Democratic Republic of Congo, the United Republic of Tanzania, Malawi, Botswana, Namibia, and Angola. However, the government excluded Mozambique. Mutati shared that the construction of the Tier 3 data centre and innovation hub, which will be situated in the Lusaka South Multi-Facility Economic Zone, is slated for the coming year. Read more: TechPoint Africa

Lundazi and Chama districts in the Eastern Province of Zambia will for the first time since independence be connected to the ZESCO electricity grid at the end of December 2023, effectively ushering in a new dawn for the residents that have experienced decades of unreliable power supply which has retarded development. ZESCO has reduced the cost of completing the connection of Chama and Lundazi to the national grid to about US $20 million from the initial $69 million after re-costing the works and also ensuring the project was done internally. In 2017, ZESCO Limited started constructing the Chipata-Lundazi-Chama transmission extension project to connect the two border towns which relied on Malawi as their source of power. The project includes construction of the 325km/132Kv line from Chipata West to Chama and the building of 132/33kV substations each at Mwasemphangwe, Lundazi, Chama, and Eggichikeni. The US $69 million project whose construction period was initially designed for 24 months was, however, indefinitely shelved in 2020 after ZESCO Limited experienced turbulent financial times following Zambia’s default on its sovereign debt. Read more: News Diggers

Bank of Zambia Exchange Rates

Currency	Buying	Selling
USD	25.0624	25.1118
GBP	31.9094	31.9824
EUR	27.4609	27.5250
ZAR	1.3557	1.3588

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China stood pat on benchmark lending rates at the monthly fixing on Wednesday, matching market expectations, after the central bank kept its medium-term policy rate steady earlier last week. But market watchers continued to expect Beijing to deliver further monetary easing into the new year to support a sputtering economic recovery as deflationary pressure push up real borrowing costs. The one-year loan prime rate (LPR) was kept at 3.45%, while the five-year LPR was unchanged at 4.20%. Most new and outstanding loans in the world’s second-largest economy are based on the one-year LPR, which stands at 3.45%. It was lowered twice by a total of 20 basis points in 2023. The five-year rate influences the pricing of mortgages and is 4.20% now. It was lowered by 10 basis points so far this year. Read more: Reuters

Ukraine’s embattled economy can weather the next few months until foreign aid arrives, but 2024 is certain to be tougher than this year and Kyiv will need to rely more heavily on its own resources. Ukraine hopes to plug next year’s $43 billion budget deficit mostly with foreign financial aid including 18.5 billion euros from the European Union and more than $8 billion from a U.S. package that also contains vital military assistance. Both packages have been blocked so far – by Republicans in the U.S. Congress and by Hungary in the European Union – but should eventually pass, though a question mark lingers over U.S. financial aid, economists and foreign diplomats said. Since Russia invaded in February 2022, Kyiv has ploughed all of its revenue into defence and the military, while spending on everything from pensions to social payments has been covered by tens of billions of dollars of foreign aid. Read more: Reuters

The European Union and the US have agreed to pause their trade war until after the presidential election. US tariffs on steel and aluminium and the EU’s retaliation on goods including motorcycles and whisky will be suspended until the end of March 2025. They were originally imposed when Donald Trump was president on national security grounds. But they were paused under Joe Biden’s administration. The deferment will allow President Biden to keep his EU allies onside. But because they have been paused and not abolished, he will appear to be tough on trade for a domestic audience. Read more: BBC News

In early December 2023 the Governor of the Central Bank of Kenya (CBK) suggested that the East African country could be about to conclude terms for a $1bn loan from China. Kamau Thugge confirmed that “the National Treasury is engaged with the Chinese government” and noted that, should the cash arrive in time, the loan could be used to help pay off a $2bn Eurobond repayment that is due in June next year. The move comes despite the President of Kenya, William Ruto, striking a hawkish tone on China during his election campaign in 2022. Ruto railed against the Chinese-financed loans agreed by his predecessor, Raila Odinga, which were used to fund a variety of infrastructure projects – but which Ruto blamed for contributing to Kenya’s large and growing pile of debt. The country’s debt currently stands at more than $68bn, around two-thirds of its gross domestic product. During the campaign Ruto also promised to publish details of opaque government contracts with China, to deport Chinese nationals working in Kenya illegally, and to reduce Kenya’s dependence on Chinese loans. Read more: African Business

Finally, Capital Markets News

In 99 trades recorded yesterday 330,907 shares were transacted resulting in a turnover of K1,279,011.52. A share price loss of K0.01 was recorded in Zambia. Trading activity was also recorded in Airtel, CEC Zambia, Chilanga Cement, PUMA, Standard Chartered Bank Limited, ZANACO and Zambia Sugar. The LuSE All Share Index (LASI) closed at 10,829.97 points, 0.01% lower than its previous close of 10,830.66 points. The market closed on a capitalization of K88,718,916,688.77 including Shoprite Holdings and K53,936,231,248.77 excluding Shoprite Holdings.

Picture of the Day

President Hakainde Hichilema writes: “The relationship between Zambia and France is stronger than ever. This morning, we welcomed Madam Chrysoula Zacharopoulou, French Secretary of State in charge of Development, La Francophonie and International Partnerships. We had a conversation on a wide range of issues including Zambia’s goal to connect our country from Atlantic Ocean to Indian Ocean, via trade corridors like the Lobito Corridor.”

Daily FiZ – Wednesday 19/12

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Good morning. Here’s what you need to know

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