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Zambia, Germany sign four grant pacts worth over €35.8 million
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IMF raises growth forecast for India, which is set to be fastest growing major economy in 2023
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Shoprite Group records a 16.9% growth in sales, compared to the previous year
Story of the Day
Speaking during an interview on the FiZ show, CEO of Pangaea ADD Capital, as well as a board member of Pangaea securities and Vice President of Ndola Chamber of Commerce and Industry, Diana Simpungwe Kabaila said Pangaea ADD capital is a supply chain finance specialist, with it’s head office in Ndola and branch sales office in Kitwe, the company has been around over just 4 years. It was founded by herself and her business partner, Arthur Moenga and later they sold a part of the business to Pangaea securities and it became Pangaea ADD Capital. The company focuses on invoice discounting and order finance. Read more
In Local Business News Sponsored by
Government has signed four grant agreements worth over Euro35.8 million (K750 million) with the KfW Development Bank, on behalf of the Federal Government of Germany. The joint projects would support Zambia to transparently procure low-cost private sector investment in the renewable energy sector as well as increase access to water supply and sanitation in Eastern and Southern province. The first grant agreement supports government, in particular the Ministry of Energy and ZESCO, to the overall objective to improve the framework conditions for private sector investments in renewable energy. The other three grant agreements are additional support to the water and sanitation sector in Eastern and Southern province, beefing up Germany’s ongoing support to the water sector to Euro 120 million. Read more: Zambia Monitor
The Energy Regulation Board ERB has in the last six months approved seven power purchase agreements which have the capacity of over 1,500 megawatts. ERB Acting Director General Alfred Mwila says among the seven power purchase agreements approved is the agreement between ZESCO and Integrated China Energy, which will bring in 600 megawatts for 25 years, while ZESCO and CEC deal has the capacity of 380 megawatts. Mr. Mwila says ZESCO has also contracted 208 megawatts of power from Maamba for 20 years and 200 megawatts Botswana Power Corporation for 2 years. Speaking during the ERB Midyear review press briefing , Mr. Mwila said the Board has also approved the adjustments of electricity tariffs for a 5 year period starting with 37% in 2023. Read more: ZNBC
The first National Bank FNB has launched the FNB Zambia bank on wheels which is a movable bank, and will target the rural parts of the country to help promote financial inclusion by bringing financial services closer to the people. In a bid to increase financial inclusion in Zambia, the First National Bank FNB has come up with an initiative of using a movable bank that will reach out to people across the country and provide them with financial services, and serve as an important mechanism in migrating customers to digital banking platforms. The FNB “Bank on Wheels” initiative is a state-of-the-art mobile banking unit that will offer Mobility, Accessibility, and an Innovative experience to FNB businesses especially in rural areas. Read more: Zambian Business Times
Former Development Bank of Zambia (DBZ) Board Chairperson Noel Nkoma says the longer it took for the Bank of Zambia to take over possession of the financial institution, the more it deteriorated. And Nkoma says there is a need for people to rethink their credit culture. Speaking when he featured on Prime Television’s Oxygen of Democracy programme, Monday, Nkoma said BoZ should have taken over DBZ a long time ago, citing too many legacy issues. “I just want to echo what my appointing authority, Honourable Situmbeko Musokotwane, the Minister of Finance and National Planning, said in his comments in one of the tabloids today. Read more: News Diggers
Bank of Zambia Exchange Rates
Currency | Buying | Selling |
---|---|---|
USD | 19.1949 | 19.2449 |
GBP | 24.6290 | 24.7008 |
EUR | 21.1988 | 21.2560 |
ZAR | 1.0909 | 1.0941 |
In International Business News
China has named Pan Gongsheng as the new governor of its central bank, the People’s Bank of China (PBOC). The 60-year-old’s appointment comes as the country continues to struggle with major economic challenges in the wake of the coronavirus pandemic. Among the problems facing the world’s second largest economy are slowing growth, a housing market in crisis and youth unemployment at a record high. Mr Pan succeeds Yi Gang, who held the top post at the PBOC since 2018. Some analysts said the promotion of Mr Pan, who is not regarded as a close ally of President Xi Jinping, signals recognition by the government that it needs an experienced economist with a track record in crisis management to help steer the country through its economic problems. Read more: BBC News
Ghana’s central bank on Monday raised its benchmark lending rate by another 50 basis points to 30%. The move to raise the cost of borrowing took financial markets by surprise. Accra is working to to stop its worst economic crisis in years, characterised by double-digit inflation, a weak Cedi and growing public debt. Annual inflation accelerated to 42.5% in May and June after slowing from 54% last December. The central bank has been raising rates since late 2021, with only a few pauses inbetween the hiking cycle. Ghana defaulted on most of its debt repayments last year and sought relief from its lenders. In May this year, the cocoa and oil producer sealed a $3 billion bailout loan from the International Monetary Fund. Read more: Africa News
Russia’s second largest city will host the 2nd Russia-Africa Summit starting Thursday (Jul. 27). The Kremlin has confirmed the participation of 49 African countries and Several leaders including South African President After an inaugural summit in 2019, this meeting is a key “step” toward “a reassembly of the relations” between Russia and the continent, expert Vsevolod Sviridov predicts. “The main goal of the second Russia-Africa summit is to see what has been done in recent years. The world economy and politics have changed. First, there was the Covid-19 pandemic, then the special military operation [Editor’s Note: Referring to the ongoing war in Ukraine] began,” expert at the Centre for African Studies, HSE University says. The framework in which Russia and Africa interact has seriously changed. Therefore, evidently, there needs to be a reassembly of the relations between Russia and Africa, to find common grounds, to explain to each other outlooks on topical issues, for example, on the grain deal.” Read more: Africa News
The International Monetary Fund raised its 2023 growth forecast for India by 20 basis points to 6.1%, bolstering expectations that the current G20 chair will be the world’s fastest growing major economy this year. In its July update to its World Economic Outlook, the IMF said Tuesday its revision was guided by stronger growth in the fourth-quarter last year, powered by domestic investment. Its 2024 projection for 6.3% growth in India stayed unchanged from its April projection. The forecasts underscore India’s emergence as a bright spot for global growth. This comes as China’s star wanes and Beijing seeks to reflate faltering growth momentum, while staying the course in its bid to rebalance the world’s second-largest economy. Still, the IMF expects China to grow by 5.2% this year and 4.5% next year. While the projections were unchanged from the April outlook, the IMF now expects China growth to be driven by consumption, which it said should negate the underperformance in investment dragged by the downturn in real estate. Read more: CNBC
For the 52 weeks to 2 July 2023 (“the period”, “the year” or “the 12 months”) the Shoprite Group increased total sale of merchandise by 16.9% to approximately R215.0 billion. The Group added a net 340 stores during the period to total 3 324 stores from continuing operations. Sales growth per segment is outlined below: Read more
In 83 trades recorded yesterday 59,503 shares were transacted resulting in a turnover of K170,934.71. A share price loss of K0.01 was recorded in Chilanga Cement and a share price gain of K0.01 was recorded in ZANACO. Trading activity was also recorded in BATA, CEC Zambia, PUMA, Real Estate Investments Zambia, Standard Chartered Bank Limited, Zambeef and Zambia Sugar. The LuSE All Share Index (LASI) closed at 8,225.59 points, 0.03% lower than its previous close at 8,222.74 points. The market closed on a capitalization of K76,736,189,846.54 including Shoprite Holdings and K41,953,504,406.54 excluding Shoprite Holdings.