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African Development Bank Offers to Renegotiate Zambia’s debt
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African Development Bank is looking to initiate the revolutionary debt-for-nature exchange program
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In the second week of July’s bond trading, bonds of total face value of K716,261,000 were transacted in 70 trades
Story of the Day
The global energy landscape is undergoing a profound transformation, driven by the need for cleaner and more sustainable alternatives. Hydrogen, often referred to as the “fuel of the future,” is emerging as a promising solution that has the potential to revolutionise the energy sector in Africa and beyond. The 16th edition of the Africa Energy Indaba, to be hosted at the CTICC in Cape Town, South Africa from the 5 – 7 March 2024 will feature a focused Hydrogen Forum. The Hydrogen Forum will explore the role of hydrogen in the energy transition, its benefits and the potential impact it can have on Africa’s energy landscape. Hydrogen is a versatile energy carrier that can be produced through various processes, including electrolysis powered by renewable energy sources. Its usage in various sectors can significantly reduce carbon emissions and contribute to the achievement of climate goals. Here’s how hydrogen can revolutionise the energy sector: Read more
In Local Business News Sponsored by
The African Development Bank (ADB) has pledged to help renegotiate Zambia’s debt. ADB President Akinwumi Adesina says this will be done through the bank’s African Legal Support facility to help renegotiate debt obligations and dialogue. Dr. Adesina also congratulated Zambia for securing a debt restructuring deal saying it creates hope, confidence in Zambia’s economy, helps attract investments and prosperity for national development strategy. Dr Adesina was speaking during a meeting with President Hakainde Hichilema at State House. And Dr. Adesina said the ADB is considering offering Zambia between 150-million dollars in support. President Hichilema thanked Dr. Aadesina and the ADB for their support in securing a debt restructuring deal. Read more: ZNBC
Zambia Association of Manufacturers (ZAM) has disclosed that the manufacturing sector recorded a 1.3% growth rate in the first half of 2023. Association Chief Executive Officer Muntanga Lindunda explained in a statement that in the first quarter of 2021, the manufacturing sector’s value-added percentage growth rate was -3.1% compared to -2.8% in the same quarter of 2022. Ms. Lindunda said this is an indication that there has been an improvement in the performance of the sector in quarter 1 in the past three years. “The industry’s value-added growth rate in quarter 2 of 2021 was 9.2% compared to 11.7% in quarter 2 of 2022. This once more highlights that in spite of the various headwinds the sector has and continues to grapple with, it is on a positive trajectory judging by value-added growth,” Ms. Lindunda stated. Read more: Money FM
Minister of Finance and National Planning Dr Situmbeko Musokotwane has called for investments in an oil pipeline, saying the TAZAMA pipeline is proving not to be enough. Meanwhile, Dr Musokotwane has been nominated for the prestigious Foreign Investment Network (FIN) Best of Africa Outstanding Minister Award. Speaking yesterday at a Foreign Investment Network (FIN) Forbes Conference in London, UK, Dr Musokotwane said Zambia’s challenge as a landlocked country had always been how to bring in fuel from the coastline. “Being landlocked, our challenge has always been how to bring fuel from the coastline inside the country. And not just for ourselves as Zambia but also for our colleagues in Congo DRC because our copper mining area is expanding. Read more: News Diggers
Transparency International Zambia (TIZ) has called for tightening of laws and policies to punish those found wanting in irregular financial flows as indicated in the newly released 2021/2022 Financial Intelligent Centre Trends report. The Financial Intelligence Centre Trends report released last week for the period 2020 to 2022 highlighted some US$5.9 billion in suspicious financial transactions. Contracts under the farmer input support programme had been cited in the latest Financial Intelligence Report to have been fraudulently awarded to known companies at a cost of US$300 million. Commenting on the report in an interview on Monday, TIZ Chapter Zambia President, Sampa Kalungu, called for stiffer punishment for punish those found wanting in irregular financial flows. Read more: Zambia Monitor
Bank of Zambia Exchange Rates
Currency | Buying | Selling |
---|---|---|
USD | 18.9451 | 18.9938 |
GBP | 24.7821 | 24.8533 |
EUR | 21.2754 | 21.3357 |
ZAR | 1.1017 | 1.1047 |
In International Business News
In order to enter a rapidly expanding sector of the sustainable debt market, the African Development Bank Group is currently in talks to support a new debt-for-nature exchange. “We’re looking at one transaction [and] still discussing the parameters,” said Hassatou Diop N’Sele, vice president for finance and chief financial officer at the AfDB, in an interview. She chose not to name the nation that had proposed the agreement, under which it would restructure its debt in return for dedicating part of the savings to environmental initiatives. African countries have “a very good case” for using the financial arrangements, said N’Sele. “The continent faces multiple challenges, rising debt costs, a massive need for climate finance, and issues with regard to land degradation and biodiversity loss. With debt-for-nature swaps, there is the start of a solution,” she disclosed. Read more: Business Insider
More than 230 economists and political leaders have called on the United Nations and the World Bank to do more to tackle the widening gap between the rich and poor around the world, a problem they say many governments are ignoring. In an open letter published Monday and addressed to UN Secretary-General António Guterres and World Bank President Ajay Banga, the group called for more ambitious targets to reduce inequality and for better measurement of income and wealth disparities. “Extreme poverty and extreme wealth have risen sharply and simultaneously for the first time in 25 years… The richest 10% of the global population currently takes 52% of global income, whereas the poorest half of the population earns 8.5% of it,” the letter said. Read more: CNN
The new head of the World Bank has warned that growing divides between rich and poor nations risk deepening poverty in the developing world, at a meeting of G20 finance ministers in India. Many countries are still recovering from the double blow of the coronavirus pandemic and fallout from Russia’s war in Ukraine – which hit global fuel and commodity prices. Climate change, meanwhile, is most painfully affecting some of the poorest countries least able to cope. Ajay Banga, president of the World Bank, said he feared a lack of progress was in danger of splitting the global economy, to the detriment of the world’s poorest. “The thing that keeps me up at night is a mistrust that is quietly pulling the Global North and South apart at a time when we need to be uniting,” Banga told the two-day meeting of finance ministers and central bank chiefs in Gandhinagar, Gujarat state. Read more: Al Jazeera
Microsoft shares closed at a record Tuesday after the company announced pricing for its new Microsoft 365 artificial intelligence subscription service. The stock jumped 4%, closing at $359.49. It’s now up about 50% for the year. The prior record came on June 15, when the stock closed at $348.10. Microsoft’s Copilot subscription service adds AI to the company’s popular Office products such as Word, Excel and Teams. It will cost an additional $30 per month and could increase monthly prices for enterprise customers as much as 83%, bringing in additional revenue through recurring subscriptions. The announcement shows how Microsoft is continuing to build on its suite of Office software, making it more attractive for businesses that are seeking to add AI into their workflows. Microsoft has been pouring money into generative AI, largely through a multibillion-dollar investment in OpenAI, the creator of ChatGPT. Read more: CNBC
A whopping 150 million jobs will shift to workers over the age of 55 by 2030, according to a new global study from Bain & Company. VIn the Group of Seven countries, Bain predicts, older and experienced workers will make up more than quarter of the workforce by 2031. “That’s a massive shift,” Andrew Schwedel, partner at Bain & Company, told CNBC’s “Squawk Box Asia” on Tuesday. “Japan is already at the vanguard of this with almost 40% of the workforce over age 55. Europe and the U.S. are not far behind, [with] anywhere from 25 to 30%.” Read more: CNBC
A $271 million Extended Credit Facility for Burundi has been granted by the executive board of the International Monetary Fund, with an immediate delivery of over $62 million, the IMF announced late on Monday. The International Monetary Fund (IMF) Executive Board approved a 38-month agreement under the Extended Credit Facility (ECF) for Burundi with access to 130% of the quota, equivalent to SDR 200.2 million (about US$271 million). The ECF will support the authorities’ reform agenda aimed at reducing debt vulnerabilities, recalibrating exchange rate and monetary policies to restore external sustainability, and strengthening inclusive economic growth and governance. The ruling permits a payout of SDR 46.2 million, or approximately US$ 62.6 million, right away. The loan facility, according to the IMF, would assist Burundi’s reform plan and help to resolve the country’s ongoing balance of payments issues. It will also help to strengthen external buffers, after years of violence and political unrest under the former leader Pierre Nkurunziza, which left important industries ravaged the nation’s economy is just now beginning to recover. Read more: Business Insider
In the second week of 2023 bond trading, there was a full week of trades days of which Monday’s bond trading was the best performing day of the week. Bonds of total face value of K 716,261,000 were transacted in 70 trades, resulting in a market value of K474,010,440. Bonds are a low-risk investment issued when the government borrows money from its people. You can purchase bonds using the Lusaka Securities Exchange Application online. Read more
In 25 trades recorded yesterday 412,553 shares were transacted resulting in a turnover of K1,260,717.65. A share price gain of K0.01 was recorded in CEC Zambia and share price losses of K0.01 were recorded in Chilanga Cement and CEC Africa on the quoted tier. Trading activity also was recorded in Airtel, Standard Chartered Bank Limited, Zambeef and ZANACO. The LuSE All Share Index (LASI) closed at 8,230.89 points, up by 0.04% from its previos close of 8,227.61 points. The market closed on a capitalization of K76,759,230,818.28 including Shoprite Holdings and K41,976,545,378.28 excluding Shoprite Holdings.