Good morning. Here’s what you need to know to start your day.
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Beijing tells US to fix own debt problems after Yellen calls China a barrier to solving Zambia crisis
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Microsoft sees slowest sales growth in six years
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ZAFFICO appoints new board members
Story of the Day
Africa is capable of producing 50 million tons of green hydrogen a year by 2035, according to a new study by the European Investment Bank (EIB), International Solar Alliance (ISA) and the African Union, with the support of the Government of Mauritania, HyDeal and UCLG Africa. Green hydrogen is economically viable at €2/kg and can expedite low-carbon economic growth across the continent and reduce emissions by 40%, replacing approximately 500 million tonnes of carbon dioxide a year. The analysis emphasised that green hydrogen produced in Africa is economically viable, more cost effective than traditional fossil fuel energy sources, and can accommodate domestic energy demand whilst enabling the export of green hydrogen to global markets. Read more
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China’s actions in talks among countries that lent money to Zambia are delaying a restructuring of the African nation’s debt, and Beijing needs to move on from unfeasible demands, the head of the World Bank said. “China is asking lots of questions in the creditors committees, and that causes delays, that strings out the process,” David Malpass, the president of the Washington-based development lender, said in an interview with Bloomberg TV’s Kathleen Hays and Paul Allen. “It’s important for them to be focused on getting to an actual debt restructuring where the burden can be lightened for Zambia,” he said, adding that progress may be possible in the next couple of months. Read more: Bloomberg
Beijing has called on the United States to clear up its own debt issues before making accusations about Chinese lending in Africa, after US Treasury Secretary Janet Yellen said China was a “barrier” to ending Zambia’s debt crisis. A statement released by the Chinese embassy in Zambia on Tuesday said the best prospect for debt issues outside America would be “the US Treasury Department solving the US’ own domestic debt problem”. “In fact, the biggest contribution that the US can make to the debt issues outside the country is to act on responsible monetary policies, cope with its own debt problem and stop sabotaging other sovereign countries’ active efforts to solve their debt issues,” the embassy statement said. Read more: MSN
The International Monetary Fund (IMF) has denied imposing any tough conditions on Zambia such as removal of subsidies. The fund, through its visiting Managing Director Kristalina Georgieva, has clarified that it did not impose any tough decisions to be undertaken by the government such as removal of subsidies. Georgieva however mentioned that the fund at times made tough recommendations in a bid to help the respective countries. Read more: International Monetary Fund
The South Gauteng High Court Tuesday in South Africa continued hearing a case against mining company Anglo American South Africa on allegations of lead poisoning. Zambian communities brought the class action lawsuit after it was discovered that the town of Kabwe, Zambia contains the “world’s most toxic lead mine” called the Broken Hill mine. The 12-day hearing is now on its fourth day. The court must decide whether to certify the class action and allow it to proceed. Amnesty International, the South African Litigation Centre, and several UN experts have been admitted as joint amici curiae. They informed the court of “international business standards,” and focused on the country’s duty to “regulate the conduct of its companies.” Read more: Jurist
The International Monetary Fund has reached an understanding in principle with China about a debt restructuring strategy that could help resolve Zambia’s debt crisis, its chief said on Tuesday in Lusaka. “Zambia has done its part under the IMF programme and the country has performed really strongly, and now it’s time for creditors to do their part,” Georgieva said during a public discussion at the University of Zambia. She said at a later event that she was confident a restructuring agreement would be reached. Read more: Reuters
Zambia’s Hakainde Hichilema has arrived in the Senegalese capital, Dakar, to attend an agricultural summit at the invitation of his Senegalese counterpart, Macky Sall. President Hichilema confirmed in a Facebook posting on Tuesday he was attending the summit along with other Heads of State. “We arrived safely in Dakar at the invitation of President Sall of the Republic of Senegal and Chairman of the African Union, to participate in the Dakar 2 on Agriculture Summit, under the theme, “Feed Africa: Food Resilience And Food Sovereignty”, he posted. Read more: Zambia Monitor
International Monetary Fund (IMF) managing director Kristalina Georgieva has advised Zambia to fully exploit its other natural endowments and attract investments to develop resources that are more valuable than copper. Ms Georgieva, who arrived in the country on Sunday, took some time off her main mission to Zambia to visit Lusaka National Park, where she found some baby elephants and other wildlife species. And when she met Minister of Finance and National Planning Situmbeko Musokotwane yesterday, Ms Georgieva underscored the need for Zambia to exploit its natural resources by developing them into products from which it can earn foreign exchange. “Zambia is blessed with good natural endowments that must be fully utilised to benefit the country and the world at large, but how these are exploited is key,” she said. Read more: Zambia Daily Mail
The United States Government has pledged to continue funding the Green Climate Fund which is supporting thousands of farmers in 16 districts in Zambia. United States Treasury Secretary Janet Yellen says the Strengthening Climate Resilience of Agricultural Livelihoods in Agro-Ecological Regions in Zambia (SCRALA) project is helping fight poverty. Dr. Yellen says the United States is concerned about food insecurity and it will continue funding the Green Climate Fund so that SCRALA project can improve the lives of many farmers. Speaking after she toured farms under the SCRALA Project in Njolwe area of Chongwe District on Tuesday, Dr. Yellen said investing in strong food systems will help fight poverty on the African continent. Read more: ZNBC
The National Council for Construction -NCC- is working with the Ministry of Justice to formulate four Statutory Instruments aimed at enhancing regulation of the sector. The Four SIs relate to registration of contractors, manufacturers and suppliers, subcontracting and joint ventures. NCC Council Board Chairperson, Vitalis Mooya says the SI on sub-contracting and joint ventures will compel foreign contractors to sub-contract local contractors in their projects and enter into joint ventures with the locals. Read more: ZNBC
In International Business News
Microsoft sales have slowed sharply as customers facing economic strains cut their spending on technology. The firm said sales rose just 2% in the three months to December, to $52.7bn, the smallest quarterly increase in more than six years. The update came just days after the firm said it would reduce its workforce by roughly 5%, eliminating 10,000 jobs. The tech industry has been hammered by job cuts in recent months, as advertising and other spending slows. Read more: BBC News
The US Department of Justice (DOJ) and eight US states have filed a case against Google alleging it has too much power over the online ad market. Its anti-competitive actions had “weakened if not destroyed competition in the ad tech industry”, US Attorney General Merrick Garland said. Google accused the DOJ of “doubling down on a flawed argument”. The case attempted to “pick winners and losers” in a competitive industry, the firm said. Online advertising accounts for the lion’s share of Google’s multibillion dollar revenue. Google is the market leader, but its slice of total US digital ad income has fallen from 36.7% in 2016 to 28.8% in 2022, according to market research firm Insider Intelligence. Read more: BBC News
Business activity across the 20 countries that use the euro expanded in January for the first time in six months, according to data published Tuesday, providing fresh evidence that Europe’s economy could confound expectations and dodge a recession this year. An initial reading of the eurozone’s Purchasing Managers’ Index, which tracks activity in the manufacturing and service sectors, rose to 50.2 in January from 49.3 in December, indicating the first expansion since June. A reading above 50 represents growth. The return to modest growth was helped by falling energy prices and an easing of supply chain stress, which helped temper rising input costs for producers. Read more: CNN
The Export-Import Bank of China has offered Sri Lanka a two-year moratorium on its debt and said it would support the country’s efforts to secure a $2.9 billion loan from the International Monetary Fund, according to a letter reviewed by Reuters. Regional rivals China and India are the biggest bilateral lenders to Sri Lanka, a country of 22 million people that is facing its worst economic crisis in seven decades. India wrote to the IMF earlier this month, saying it would commit to supporting Sri Lanka with financing and debt relief, but the island nation also needs the backing of China in order to reach a final agreement with the global lender. Read more: CNBC
The Central Bank of Nigeria has surcharged the country’s interest rate, despite a dip in its inflation for the month of December. The apex bank increased its benchmark lending rate by 100 basis points (bps) to 17.5% (NGCBIR=ECI), in an attempt to control inflation without dismissing lending to the private sector. This increase in the country’s interest rate came after Nigeria’s first inflation dip in almost a year. In December, Nigeria’s National Bureau of Statistics revealed that the country’s inflation rate had gone from 21.47% in November to 21.34% in December, marking the first time in 11 months Nigeria’s inflation rate did not trend upwards. Read more: Business Insider
Finally, Capital Markets News
In 62 trades recorded today, 909,830 shares were transacted resulting in a turnover of K4,170,727.93. Trading activity was recorded in AECI, Bata, CEC Zambia, Chilanga Cement, Standard Chartered Bank Limited, Zanaco, Zambia Sugar and CEC Africa on the quoted tier. The LuSE All Share Index (LASI) maintained its close at 7,233.16 points. The market closed on a capitalization of K72,416,350,084.85 including Shoprite Holdings and K37,633,664,644.85 excluding Shoprite Holdings.
In compliance with Section 3.59 of the Lusaka Securities Exchange Listing Rules (“LuSE Rules”), ZAFFICO wishes to inform its shareholders of the following changes to the Board of Directors (“the Board”) Read more
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