Daily FiZ – Wednesday 21/09

Story of the Day

As part of our “fintech rising series”, we had the opportunity of visiting one of Zambia’s biggest fintech companies. Now, you may have heard about them, you may have seen their brand but few know exactly what this particular fintech’s role has been in the development of a sector that has fast become the backbone of financial transactions in Zambia. Established on 25th March 2021, Probase Zambia has been building the software that has formed the backbone for electric financial transactions processing for entities ranging from tax authorities to pension houses to banks. At present, the company specializes in developing solutions for electronic funds transfer, mobile money integration, web development & hosting, e-commerce integration and bespoke software development. Read more

Local Business and Finance Sponsored By Liquid Intelligent Technologies

Billionaire Elon Musk has set eyes on Zambian investment just a few hours after President Hakainde Hichilema had an engagement with the team from SpaceX and their Starlink team on sidelines of the United Nations General Assembly in New York, United States of America. Elon Musk says he is looking forward to providing Starlink service to the people of Zambia. Mr. Musk was replying to a Tweet by Special Assistant and advisor to President Hakainde Hichilema on Economic, Investment and Development Affairs Jito Kayumba who posted that President Hakainde Hichilema’s engagement with the team from SpaceX and their Starlink initiative will escalate Zambia’s position in the digital economy. “Looking forward to providing Starlink service to the people of Zambia!” Mr. Musk wrote. Read more: Money FM

Zambia will require a total of US$ 14 billion worth of investment to meet the projected demand of electricity by 2040. According to the Government Green Paper on the findings and recommendations of the 2021 Cost of Service Study (CoSS), the investment is broken down as; $ 9.4 billion for generation, $ 2.7 billion for transmission and $ 1.9 billion for distribution. The report reveals that Government has accepted the recommendation that additional investment, at as low a cost as possible is required to increase electricity generation, transmission and distribution. Read more: Zambian Business Times 

Oil Marketing Companies Association of Zambia (OMCAZ) says blended fuel will be cheaper for consumers and will allow the country to save resources. The Energy Regulation Board (ERB) has developed and approved the technical specifications for blending fuels in Zambia. Association President Dr. Kafula Mubanga explained that blended fuel is expected to be cheaper because producers will be using local materials to blend, which reduces the cost of production as well as the cost of doing business and attracts more labour in terms of production thereby creating jobs and providing affordable products as well as competitive products. Read more: Zambian Business Times 

The International Development Finance Corporation (DFC) has expressed interest to fund Small and Medium Enterprise -SME- projects in Zambia, which will create jobs for local people. The Agency is the USA’s Development Bank, which partners with the private sector, to finance challenges in international development. Corporation Chief Executive Officer, Scott Nathan says his institution is interested in working with the Zambian government to support private sector initiatives in different areas, such as agriculture and manufacturing. Read more: ZNBC

Finance Minister Situmbeko Musokotwane says mining once properly organised is one of the sectors that can contribute to Zambia’s economic growth. Dr. Musokotwane said this in Lusaka today during the mining sector breakfast meeting organised by Price Water House Coopers Limited. And Mines Minister Paul Kabuswe has revealed that government is on the verge of establishing the Mining Commission and reviewing the Mines and Minerals Development Act of 2015 to streamline mining activities. Mr. Kabuswe further disclosed that government is on the path to formalise small scale mining to instill sanity in the sector and to enable the country raise more revenues. Read more: ZNBC 

International Business and Finance in Partnership with ICT & FINTECH EXPO 2022

In a recent report by the Ghana Statistical Services, it was revealed that Ghana’s economy grew by 4.8% in the second quarter of 2022. An upward progression from the 3.4% recorded in the first quarter of 2022. This welcomed growth to the economy was driven by numerous sectors contributing some quota to the overall economy. These industries include Manufacturing (8.8%), crops and cocoa (4.5%), mining and quarrying (4.4%), information and communication (12.4%) as well as the education sub-sectors (13.2%). Read more: Business Insider 

One year after announcing a $15 million Series A funding round in September 2021, Yellow Card has followed that up with a $40 million Series B round. Business Insider Africa understands that the Series B funding round was led by crypto-focused venture capital firm Polychain Capital, with participation from other VCs such as Valar Ventures, Third Prime Ventures, Castle Island Ventures, etc.  As Chief Executive Officer Chris Maurice once stated during a 2021 interview, “running a startup is a lot more fun with money”. Therefore, Yellow Card is very excited by the possibilities of the latest round. The funds will help actualise a lot of growth. Among the plans earmarked for the $40 million are expanding Yellow Card’s operations across Africa, establishing strategic partnerships and developing new products. Read more: Business Insider 

Soaring inflation led interest costs on UK government debt to hit a new record for August. Interest due reached £8.2bn during the month, £1.5bn more than last year and the highest August figure since records began in 1997, the Office for National Statistics (ONS) said. The high interest payments come as the government prepares to borrow billions to help households with energy bills. It will also reportedly unveil £30bn of tax cuts in a mini-Budget on Friday. Read more: BBC News 

Stock futures were muted on Wednesday morning as traders look ahead to the upcoming interest rate hike announcement from the Federal Reserve. Dow Jones Industrial Average and S&P 500 were roughly flat, while Nasdaq 100 futures nudged 0.04% higher. Stocks fell Tuesday on the first day of the Federal Open Market Committee’s meeting. The Dow Jones Industrial Average shed 313.45 points, or 1.01%. The S&P 500 and the Nasdaq Composite fell 1.13% and 0.95% respectively. Read more: CNBC 

Capital Markets Report

In 167 trades recorded yesterday, 2,721,923 shares were transacted resulting in a turnover of K17,746,151. A share price loss was recorded in Chilanga Cement of K0.01. Trading activity was also recorded in Copperbelt Energy Corporation, PUMA, Standard Chartered Zambia, Zambeef, Zanaco, Zambia Sugar and CEC Africa on quoted tier. The LuSE All Share Index (LASI) closed at 7,211.27. The market closed on a capitalization of K72,321,036,532 including Shoprite Holdings and K37,538,351,092 excluding Shoprite Holdings.

For any feedback on the stories captured on the Daily FiZ, email Natasha on dailyfiz@fizambia.com
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