Good morning. Here’s what you need to know to start your day.
-
Zambia to pay creditors only $750m over 10 years under debt restructuring deal —Finance Minister tells Parliament
-
A U.S. recession is coming this year, HSBC warns — with Europe to follow in 2024
-
Zambia Sugar Plc was the highest priced security in the 4th week of June
Story of the Day
He exudes a natural zest and an easy, quiet confidence. When he speaks, his command of the English language is impeccable and coated with a light, French accent. His in-depth knowledge of Zambia, its history, landscapes, regions, people and economy is nothing short of remarkable; so remarkable, in fact, that at first encounter, you might be forgiven for thinking that he is a resident of the country. He is not. His delivery is matter-of-fact. He is a man who, apparently, believes in telling it as it is, and letting the facts speak for themselves. Enter Mr. Fadi Mitri, the Head of Africa at Puma Energy. Fadi Mitri is a man with a message, and not in any ordinary sense. He wants his message to be heard far beyond media houses. Mr Mitri’s desire is forhis story to permeate into the very homes of his customers. Apparently, this lofty ambition was the reason behind the June 23rd lunchtime roundtable discussion with press and media hosted, at Intercontinental Hotel, by the Zambia subsidiary of Puma Energy. Read more
In Local Business News Sponsored by
Situmbeko Musokotwane, Finance and National Planning Minister, says US$5.8 billion in debt service savings will be generated following the debt restructuring deal with official bilateral creditors. Musokotwane also told parliament on Tuesday in his ministerial statement on debt restructuring agreement with official bilateral creditors that official creditors had agreed with the government that domestic debt would be excluded from any treatment. The debt restructuring agreement covers about US$6.3 billion of Central governments’ debt owed to external bilateral creditors and the debt of ZESCO that has been guaranteed by government and also owed to official bilateral creditors. He pointed out that in the absence of debt restructuring, Zambia would have to pay US$6.3 billion in debt servicing official creditors in the next 10 years. He, however, said with the restructuring, the amount reduced to US$750 million. Read more: Zambia Monitor
ZCCM-Investment Holding Chief Executive Officer, Ndoba Vibetti, has said Mopani Copper Mine (MCM) requires US$1 billion funding to meet a five-year capital requirements. According to Reuters, Vibetti confirmed that Zijin, a Chinese mining conglomerate and South African mining giant, Sibanye Stillwater are interested in the copper mine. He said this at a mining conference in London on Monday. The list of investors eyeing Mopani assets includes China’s Norinco Group and an investment vehicle owned by ex-Glencore officials, Reuters reported June 20, citing sources. “Part of the reason that has taken so long is to get that packaging right. “Somebody who can come, bring it out of water and then be able to invest for the long term,” Vibetti said. Read more: Zambia Monitor
President Hakainde Hichilema has said it is important to expedite the implementation of the debt restructuring deal in order to ensure that its benefits reach the people of Zambia and stimulate economic improvement. He specifically called upon the World Bank to take swift action in executing the debt restructuring agreement and assured that no obstacles would hinder the process. President Hichilema acknowledged the critical partnership between the Zambian government and international financial institutions, expressing gratitude for the support received thus far. He also highlighted the government’s readiness to assist other countries in debt restructuring if the need arises. During a courtesy call by the World Bank Country Director, Nathan Belete, at State House, President Hichilema expressed his appreciation for the bank’s support during the debt restructuring negotiations. The World Bank has already approved over $1.1 billion for Zambia through the Common Framework since the commencement of the discussions. This substantial support reflects the government’s commitment to fiscal discipline, reforms, and the country’s growth agenda. Read more: Lusaka Times
The Zambia National Building Society -ZNBS- has in the last 10 years recorded positive growth with its asset base increasing to K2.65b in 2023. This is a rise from from K273.8m in 2012. Finance and National Planning Minister Situmbeko Musokotwane says government is happy that the firm has also seen an increase in deposits to K1b this year from K137. 7 in 2012. Dr. Musokotwane adds that ZNBS demonstrated resilience during the Covid-19 period and managed to increase its profitability. Read more: ZNBC
Bank of Zambia Exchange Rates
Currency | Buying | Selling |
---|---|---|
USD | 17.2311 | 17.2793 |
GBP | 21.9542 | 22.0224 |
EUR | 18.8905 | 18.9502 |
ZAR | 0.9330 | 0.9359 |
In International Business News Sponsored By
The U.S. will enter a downturn in the fourth quarter, followed by a “year of contraction and a European recession in 2024,” according to HSBC Asset Management. In its midyear outlook, the British banking giant’s asset manager said recession warnings are “flashing red” for many economies, while fiscal and monetary policies are out of sync with stock and bond markets. Joseph Little, global chief strategist at HSBC Asset Management, said while some parts of the economy have remained resilient thus far, the balance of risks “points to high recession risk now,” with Europe lagging the U.S. but the macro trajectory generally “aligned.” “We are already in a mild profit recession, and corporate defaults have started to creep up too,” Little said in the report seen by CNBC. “The silver lining is that we expect high inflation to moderate relatively quickly. That will create an opportunity for policymakers to cut rates.” Read more: CNBC
European Central Bank President Christine Lagarde said Tuesday that inflation is still too high and it’s still too early for her organization to declare victory over consumer price rises. Speaking at the Sintra central banking event in Portugal, she said: “Inflation in the euro area is too high and is set to remain so for too long. But the nature of the inflation challenge in the euro area is changing.” “This persistence is caused by the fact that inflation is working its way through the economy in phases, as different economic agents try to pass the costs on to each other,” she added. Headline inflation in May came in at 6.1% for the region, down from 7% in April. But the ECB’s target is to bring inflation down to 2%. Read more: CNBC
The UK has signed a pact with the EU to increase co-operation on financial services. It will set up a forum where the EU and UK can meet twice a year to discuss financial regulation and standards. The long-awaited move is being seen as a sign the UK is willing to work more closely with the EU. Chancellor Jeremy Hunt said building a constructive relationship was of mutual benefit, as the UK and EU financial markets were “deeply interconnected”. The memorandum of understanding that is being signed was first outlined in the UK-EU Trade and Co-operation Agreement, in the wake of the UK losing unfettered access to EU markets under Brexit. Read more: BBC News
US inflation could hit the Federal Reserve’s 2% target in 2025, Bank of America CEO Brian Moynihan told CNN in an exclusive interview Tuesday. “We think it will take [Fed officials] all of this year and all of next year and into 2025 before they get inflation in line with their long term target,” Moynihan told CNN’s Poppy Harlow on “CNN This Morning.” The Fed is currently projecting an inflation rate of 2.1% that year, down from the current level of 4.4%. Already, consumers are cutting back on spending to a level that is consistent with 2% inflation, Moynihan said, citing Bank of America customer data. That’s both “good and bad,” he added. “Good in that’s what the Fed needs to see inflation under control. Not so good because it does mean we have a higher probability of a mild recession coming true.” Read more: CNN
In the fourth week of June 2023, there were nine companies that recorded trades of which Zambia Sugar Plc was the highest priced security. There were only three days that recorded trades, of which Wednesday’ equity trading was the best performing day of the week. In comparison to the fourth week of June 2022, we see that thirteen companies recorded trades also with Zambia Sugar as the highest priced security company. Read more
In 199 trades recorded yesterday 64,224 shares were transacted resulting in a turnover of K293,761.25. A share price gain of K0.01 was recorded in British American Tobacco Zambia and a share price loss of K0.33 was recorded in Chilanga Cement. Trading activity was also recorded in Airtel, CEC Zambia, PUMA, Real Estate Investments Zambia, Zambeef, ZAMEFA, Zanaco and Zambia Sugar. The LuSE All Share Index (LASI) closed at 8,226.11 points, down by 0.18% from its previous close of 8,240.79 points. The market closed on a capitalization of K76,738,432,553.78 including Shoprite Holdings and K41,955,747,113.78 excluding Shoprite Holdings.
Picture of the Day