Story of the Day
South Africa is on a drive to broaden the existing pool of Black Industrialists. The objective is to accelerate transformation, ensuring that Black-owned businesses become active players in the mainstream economy. Over the past seven years, the South African Government has helped black-owned and managed businesses expand their operations into vital productive sectors of the economy through the Black Industrialists program. These businesses received financial and non-financial support -enabling them to invest in crucial industrial sectors and value chains of the economy – which without funding intervention, would have otherwise been beyond their reach. Read more
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Following three weeks of the worst power cuts in South Africa’s history, President Cyril Ramaphosa has announced a raft of interventions aimed at solving South Africa’s energy crisis. These include improving the performance of state-owned power company Eskom as well as opening up electricity generation to private companies. Eskom will also be sourcing power from neighbouring Botswana and Zambia through the Southern Africa Power Pool. Read more: ZNBC
Government says ZESCO will start exporting 100 Mega Watts of electricity to Zimbabwe in a $6.3 monthly deal starting next month. Energy Minister Peter Kapala says the deal with Zimbabwe’s power utility company Zimbabwe Electricity Supply Authority (ZESA) will run for five years. He says negotiations for the power import deal between ZESCO and ZESA were premised on Zimbabwe making pre-payments for the 100 Mega Watts which will come from Kafue Gorge Lower. Read more: ZNBC
The value of trade between India and the Common Market for Eastern and Southern Africa (COMESA) member states stood at US$15 billion in 2021. Indian High Commissioner to Zambia Ashok Kumar said India’s exports to the COMESA region were valued at US$10.63 billion while imports from the economic grouping stood at US$4.4 billion. Mr Kumar said the country will continue to keep its market open to Africa and make it attractive for trade. “The government of India has charted 10 principles, which are a guiding light for our engagement with Africa. India will continue to open its market for trade and make it easy for African countries to trade,” he said. Read more: Zambia Daily Mail
President Hakainde Hichilema says the newly a US$250 million Enterprise Nickel mine project in Kalumbila district is important as it will provide raw materials for the production of electric motor vehicle batteries. Mr Hichilema says development will also help the country make the vision of moving into a clean and environmental friendly nation a reality. The President made the remarks when he officiated at the ground breaking ceremony for a project which is part of the US$1.35 billion expansion investment by First Quantum Minerals (FQM). Read more: Lusaka Times
International Business and Finance
The global economy is already in trouble, yet risks keep piling up. In a report released Tuesday, the International Monetary Fund once again lowered its world economic forecast as it predicted major slowdowns in the three biggest economies: the United States, China and Europe. The IMF now expects the world economy to grow just 3.2% this year, down from 6.1% in 2021. Next year is thought to be even worse: just 2.9%, only slightly above the 2.5% growth level that the IMF has typically considered a global recession. Read more: CNN
Microsoft’s business is taking a hit from events on the other side of the world. The tech giant on Tuesday attributed lower-than-expected earnings to developments in China and Russia, including the former’s extended Covid lockdowns and the latter’s war against Ukraine. Microsoft recorded $51.9 billion in revenue and $16.7 billion in profit, up 12% and 2%, respectively, from the same period last year but lower than forecasts from analysts surveyed by Refinitiv. Read more: CNN
Alphabet reported weaker-than-expected earnings and revenue for the second quarter. The stock rose more than 4% in extended trading. Revenue growth slowed to 13% in the quarter from 62% a year earlier, when the company was benefiting from the post-pandemic reopening and consumer spending was on the rise. Read more: CNBC
Stock futures climbed early on Wednesday morning as traders await the Federal Reserve’s latest interest rate decision, scheduled to be announced Wednesday afternoon. Futures on the Dow Jones Industrial Average rose by 137 points, or 0.43%. S&P 500 futures gained 0.91% and Nasdaq 100 futures increased 1.51%. Read more: CNBC
Capital Markets Report
In 51 trades recorded yesterday, 21,888 shares were transacted resulting in a turnover of K35,425. A share price gain was recorded in Copperbelt Energy Corporation of K0.01 and in Zambeef of K0.02. Trading activity was also recorded in AECI, Chilanga Cement, Madison Financial Services, Standard Chartered Zambia, Zambia Breweries, Zanaco and ZAFFICO. The LuSE All Share Index (LASI) closed at 6,890.06 points, 0.07% up from its previous close of 6,884.94 points. The market closed on a capitalization of K70,922,877,551 including Shoprite Holdings and K36,140,192,111 excluding Shoprite Holdings.