Good morning. Here’s what you need to know to start your day.
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Kwacha Depreciation and Increase in Oil Price pushes ERB increases to increase fuel Pump Price
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Bola Tinubu wins Nigeria’s presidential election
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Airtel Zambia Plc Earnings per Share expected to be 33% higher than the previous year
Story of the Day
Small and Medium Entrepreneurs (SMEs) account for majority of businesses globally and serve a critical role in shaping national economies, through such factors as employment creation, boosting of the local productive capacities, as well as augmenting the local fiscal coffers, among other benefits. As of 2022, according to the Zambia Development Agency (ZDA), SMEs are said to account for more than 97 percent of local businesses, employing more than 88 percent of the employable population and contributing over 70 percent to the Gross Domestic Product (GDP). It is thus safe to conclude that SMEs are the backbone of the Zambian economy. Read more
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Energy Regulation Board (ERB) has adjusted upwards the pump price of petrol by K1.30 per litre, while the pump price of diesel and kerosene have remained unchanged. Announcing the fuel prices for the month of March, ERB Board Chairperson, Reynolds Bowa said the new price of petrol will now be at K28.52 from K27.22, effective midnight March 1, 2023. Mr Bowa indicated that the pump price for low Sulphur diesel remains at K29.25, Kerosene is also maintained at K22.29 and Jet A-1 at Kenneth Kaunda International Airport remains unchanged at K25.34. He explained that the increase in the pump price for petrol is attributed to the depreciation of the local currency from an average of K18.90 per one United states dollar to K19.40 representing 2.65 per cent and the increase in the international oil market for petrol from 87.95 United States Dollars per barrel in February, to 92.58 United States Dollars per barrel for the month of March. Read more: Lusaka Times
President Hakainde Hichilema has created a delivery unit meant to speed up the implementation of plans to develop the country. President Hichilema says the unit is among other things focused on enhancing exports to achieve growth. The President says Government is working to increase investment capacity among the private sector so that they become the main driver for economic growth. He said this at State House when he met a delegation from Africa Finance Corporation-AFC. Read more: ZNBC
President Hakainde Hichilema has with immediate effect terminated the contract of Mooya Lumamba as Permanent Secretary of the Ministry of Mines and Mineral development. The Termination is pursuant to the provision of Article 92 as read with Article 270 of the Constitution of Zambia. President Hichilema has since thanked Mr. Lumamba for the services rendered to the Government of Zambia and wished him well for the future. Read more: ZNBC
The Bankers Association of Zambia (BAZ) says the adjustment of interest rates on loans following the increase in the Monetary Policy Rate (MPR) will pose a challenge to individuals with fixed incomes as well as businesses. Following the Bank of Zambia’s move to increase the Monetary Policy Rate from 9 percent to 9.25 percent a fortnight ago, various banks have been sending message alerts to their customers, informing them that the development will either increase loan tenor or monthly installments. Read more: News Diggers
In International Business News
Bola Tinubu was declared the winner of Nigeria’s presidential election, a victory that will place him at the helm of Africa’s biggest economy as it confronts a deepening fiscal crisis, acute shortages of local and foreign currency and gasoline, and widespread insecurity. The ruling All Progressives Congress party’s candidate won 35.2% of the votes cast on February 25, while Atiku Abubakar of the main opposition Peoples Democratic Party finished runner up with about 28%, official results announced on Wednesday showed. The election was marred by glitches and delays in collating the results, which prompted the two main opposition parties to boycott the process. Read more: MoneyWeb
Overall activity in the euro zone’s manufacturing sector contracted again in February but output increased for the first time since May as supply chains continued to heal, a survey showed on Wednesday. S&P Global’s final manufacturing Purchasing Managers’ Index (PMI) dipped to 48.5 in February from January’s 48.8, in line with a preliminary reading but still below the 50 mark separating growth from contraction. Read more: Reuters
Despite growing calls for increased intraregional trade, businesses in Africa are taking advantage of preferential trade deals with the other continents and ignoring local free trade accords. African traders are taking advantage of favorable import tariffs provided by the US, Canada, EU, and Japan (the “Quad nations”) under different preferential trade agreements (PTAs), which has led to significant exports to these quad nations. This information is according to findings by the UN Conference on Trade and Development (UNCTAD) and the Common Market for Eastern and Southern Africa (Comesa) which showed that enterprises are not fully utilizing comparable advantages under local regional economic communities. Because of this, commerce between the regional blocs has trailed substantially behind transactions with the Quad nations. For instance, exports to the EU, US, Japan, and Canada in 2018 were worth $25.6 billion, compared to $9.3 billion in trade amongst Comesa member states. Read more: Business Insider
The International Monetary Fund (IMF) has noted its support for Kenyan President William Ruto’s proposal for revenue mobilisation, which calls for hiking taxes, going after tax evaders, and broadening the tax base, despite its worries about the high cost of living in the nation. Kenya aims to have tax collections over 17.8% of GDP in 2023 and above 18% of GDP throughout the medium term. Tobias Rasmussen, the IMF’s resident representative in Kenya, remarked that rising prices for necessities hurt people worldwide and urged that Kenya should provide aid to those most in need while limiting the budget deficit. Read more: Business Insider
Dangote Cement’s pan-African operations sold around 10Mt of cement and clinker in 2022, down 8.1 per cent from the 10.9Mt sold in 2021. “This is due to the continuous global supply chain disruption and increasing commodity prices,” said Dangote Cement. Pan-African revenues of NGN414.8bn (US$900.8m) were 4.4 per cent higher than 2021. The region’s revenue accounted for 25.6 per cent of total group revenue. Pan-Africa EBITDA was NGN64.9bn (before central costs and eliminations), down 26.9 per cent due to the inflationary pressure on costs, high freight charges and lower volume sold in 2022. Read more: CemNet
China’s factory activity has expanded at the fastest pace in more than a decade, as the world’s second largest economy staged what economists are calling a “very rapid” rebound after reopening from zero-Covid. The government’s official purchasing managers’ index (PMI) for the manufacturing industry hit 52.6 in February, the highest level since April 2012, according to data released Wednesday by the National Bureau of Statistics. Read more: CNN
Finally, Capital Markets News
In accordance with the Lusaka Securities Exchange (“LuSE”) Listings Requirements, the Board of Directors of Airtel Networks Zambia Plc (“Airtel” or “the Company”) hereby advises the Shareholders of the Company that the Earnings per Share for the period ended 31 December 2022 is expected to be approximately 33% higher than the year ended 31 December 2021. The gain is primarily attributed to an increased customer base and revenue of 14% Y-o-Y and 24% Y-o-Y respectively. Read more
In 107 trades recorded yesterday, 35,528 shares were transacted resulting in a turnover of K123,365.47. A share price loss of K0.01 was recorded in CEC Africa. Trading activity was also recorded in AECI, Airtel, CEC Zambia, CHIL, PUMA, Zambeef and Zanaco. The LuSE All Share Index (LASI) maintained its close at 7,249.62 points. The market closed on a capitalization of K72,487,995,255.28 including Shoprite Holdings and K37,705,309,815.28 excluding Shoprite Holdings.
Picture of the Day