Good morning. Here’s what you need to know
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Zambia’s Q1 copper production up 15%
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Lusaka-Ndola Dual Carriageway Construction Costs Slashed from $2B to $650M
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UK Inflation rate falls to lowest in almost three years
In Local Business and Finance News
The Zambian copper mining industry experienced a surge in production, with output increasing by approximately 15% in the first quarter of 2024. A comprehensive report on copper production reveals that 165,984 metric tons of copper were produced during this period, marking a rise from the 144,452 metric tons generated in the first quarter of 2023. Q1 copper production was up by 21,531 metric tons in 2024, reaching 165,984 from 144,452 metric tons produced in the first quarter of 2023. The Ministry of Mines has attributed this increase to the production growth from existing companies, as Mopani and Kansanshi have not yet begun serious production.. Read more: Zambian Business Times
Commerce, Trade and Industry Minister, Chipoka Mulenga, says over regulation has remained a hindrance to the growth of businesses in Zambia. Mulenga observed the need for government not to drive policies that threatened businesses. Government, he said, should instead come up with policies that translated to economic growth. The Minister was speaking when he officiated at the World Metrology Day commemorations on Monday. “To register business in Zambia, you need to have about five to seven certificates and all are paid for, there is an urgent need to collapse these into one at a fair price not having one which is very expensive,” he said. Read more: Zambia Monitor
The Patents and Companies Registration Agency (PACRA) has with immediate effect adjusted upwards statutory fees for business and intellectual property rights registration as well as post registration services. The agency in its notification issued on Tuesday to the business community by its Registrar and Chief Executive Officer, Benson Mpalo, said this was in accordance with Statutory Instrument No. 25 of 2024. On April 15, 2024, the Finance and National Planning Minister, Situmbeko Musokotwane, issued the Fees and Fines (Fees and Penalty Unit Value) (Amendment) Regulations – Statutory Instrument No. 25 of 2024. The Statutory Instrument adjusted upwards, the Fee and Penalty Unit Value, under the Fees and Fines Act Chapter 45 of the Laws of Zambia. The Fee and Penalty Unit is what the agency used to calculate the fees it charges for its services. Read more: Zambia Monitor
President Hakainde Hichilema yesterday officially launched the construction works of the Lusaka-Ndola dual carriageway, spanning 327 kilometers and also including the Fisenge-Masangano stretch.The president highlighted the project’s cost-effectiveness, made possible through the Public-Private Partnership (PPP) model,which aims to optimize government resources while delivering quality infrastructure. “Zambia needs visionary leadership that promotes peace and stability, imagine this road was supposed to be done at over US$2 billion but now we will do this at only US$650 million and will save over US$1.2 million,” President Hichilema said. The Lusaka-Ndola dual carriageway is set to be a game-changer in promoting safer travel, reducing commute times, and bolstering connectivity between key economic centers. President Hichilema emphasized the importance of this infrastructure project, not only for Zambia but also as a critical transit route to neighboring countries, promising improved trade and investment opportunities. Read more: Lusaka Times
Communities in Zambia’s Eastern Province will soon benefit from their forest conservation and climate-smart agriculture efforts thanks to a new Emission Reductions Purchase Agreement (ERPA) signed today by the Government of the Republic of Zambia and the World Bank’s BioCarbon Fund Initiative for Sustainable Forest Landscapes (ISFL). This agreement unlocks up to $30 million in results-based payments, rewarding communities in Eastern Province for reducing around three million metric tons of CO2e (Carbon Dioxide equivalent) emissions between 2024 and 2029. By taking an integrated approach to mitigation across the Eastern Province landscape, this initiative aims to achieve significant emission reductions and enhance communities’ resilience to climate change. Zambia is the second country to sign an ERPA with the ISFL Program, following Ethiopia last year. Read more: Devdiscourse
In International News
Falling gas and electricity prices has driven UK inflation to its lowest level in almost three years. Prices rose at 2.3% in the year to April, down from 3.2% the month before, the Office for National Statistics (ONS) said. While inflation, which is a measure of how much the prices of goods and services, have gone up over time has fallen further, it still remains higher than the Bank of England’s target of 2% and was slightly higher than experts expected. But the Bank has hinted that interest rates, which have been raised in recent years to slow price rises, could be cut this summer. Rates are currently at 5.25% – the highest level in 16 years. Read more: BBC News
The Central Bank of Nigeria (CBN) Monetary Policy Committee (MPC) has raised the benchmark interest rate by 150 basis points, from 24.75% to 26.25 per cent, in response to escalating inflationary pressures. CBN Governor Yemi Cardoso announced this during a press briefing following a two-day Monetary Policy Committee (MPC) meeting held on Monday and Tuesday. Central bank governor Olayemi Cardoso stated that the bank’s MPC was confronted with the choice of either raising or maintaining rates while monitoring the effects of prior increases. However, it chose to increase rates in favour of promoting price stability. According to him, the committee also voted to retain the Cash Reserve Ratio (CRR) at 45 per cent for commercial banks and adjust the CRR of merchant banks from 10 per cent to 14 per cent. Read more: Business Insider
The Biden administration said on Wednesday that it would forgive $7.7 billion in student loans for more than 160,000 borrowers, its latest effort to reduce the burden of education debt on households. The relief is a result of the U.S. Department of Education’s improvements to its income-driven repayment plans and Public Service Loan Forgiveness program. “The Biden-Harris Administration remains persistent about our efforts to bring student debt relief to millions more across the country,” said Education Secretary Miguel Cardona in a statement. Read more: CNBC
France supports companies that believe in the country, its President Emmanuel Macron said in an interview published on Wednesday, in response to a question on oil major TotalEnergies’ potential pursuit of a U.S. listing. A pillar of France’s CAC 40 blue chip index, TotalEnergies is one of the world’s largest oil companies and an important agent of French influence. A change of listing would also be a blow to Paris’ prestige as a centre for international trading. On April 26, Pouyanne told analysts TotalEnergies was “seriously” looking at a possible primary listing in New York to ensure easier access for U.S. investors. “France accompanies those who believe in France, not the others. I don’t think Total has ever complained about being French when it went to export markets”, Macron told magazine L’Express. “It’s in TotalEnergies’ interest to stay in France” Read more: Reuters
G7 finance chiefs meeting in Italy this week will attempt to find common ground over how to use frozen Russian assets to help Ukraine’s war effort and how to address China’s growing export strength in key markets, officials said. Finance ministers and central bankers from the Group of Seven wealthy democracies – the United States, Japan, Germany, France, Britain, Italy and Canada – will gather in the northern Italian lakeside town of Stresa on Friday and Saturday. G7 negotiators have been discussing for weeks how to best exploit some $300 billion worth of Russian financial assets, such as major currencies and government bonds, which were frozen shortly after Moscow invaded Ukraine in February 2022. The United States is pushing to find a way to bring forward the future income from those assets, either through issuing a bond or more likely granting Ukraine a loan that it says could provide it with as much as $50 billion in the near term. Read more: Reuters
Finally, Capital Markets News
In 47 trades recorded yesterday 26,773 shares were transacted resulting in a turnover of K197,841.41. The following share price changes were recorded yesterday: +K0.15 in Standard Chartered Bank Limited, +K0.01 in CEC Africa and -K0.01 in ZANACO. Trading activity was recorded in Airtel, British American Tobacco Zambia, CEC Zambia, PUMA, Standard Chartered Bank Limited, ZCCM, Zambeef and Zambia Sugar. The LuSE All Share Index (LASI) closed at 12,864.95 point, 0.41% higher than it’s previous day close at 12,812.43 points. The market closed on a capitalization of K100,253,378,118.87 including Shoprite Holdings and K65,470,692,678.87 excluding Shoprite Holdings.
A total of 9 Govt Bond trades with total face value of 268,618,000 and turnover 175,127,870 were processed yesterday.