Good afternoon. Here’s what you need to know
-
Musokotwane tasks Zambian delegation at AfDB annual meetings to attract investments
-
IMF upgrades China’s growth forecast to 5% on ‘strong’ first quarter and policy measures
-
Ethiopia beats Kenya and South Africa to become Boeing’s Africa headquarters
In Local Business and Finance News
Finance and National Planning Minister, Situmbeko Musokotwane, has tasked government officials to intensely engage investors and attract interest towards the prevailing investments opportunities in Zambia. Musokotwane was keen to ensure officials attending the 2024 annual meetings of the African Development Bank (AfDB) Group in Nairobi put more effort in attracting investment. He is targeting investments in mining, agriculture production, green economy and alternative energy sources and tourism development, among others. “Our focus will be to attract investments which will create jobs for our people and produce mutual wealth benefits for investors and the nation. To do so, we have to make business easy for all, including our fellow citizens. “We should get rid of tedious procedures when investors positively react to our promotional efforts, especially that, when we come to these international meetings, we lobby for interest from the same investors that other countries which also are present here lobbying – just as we are doing,” he said. Apart from the Statutory and obligatory meetings of the AfDB, the Minister and his team would hold targeted bilateral engagements with top-level AfDB leaders. Read more: Zambia Monitor
Zambia and Namibia have signed a landmark agreement on youth training, paving the way for enhanced collaboration between the two countries. The agreement aims to facilitate the exchange of expertise and resources to build capacity in youth coaching, mentorship and job placement. The Ministry of Defence and the Namibian Ministry of Sports, Youth and National Service signed the agreement in Lusaka on Tuesday. Zambia’s Defence Minister, Ambrose Lufuma, said the partnership would also provide young people with opportunities to train in leadership, entrepreneurship, and vocational skills to help unlock their potential. “The partnership is not just about providing training opportunities, but building a foundation for sustainable development,” Lufuma stated. Read more: Zambia Monitor
Ministry of Technology and Science has emphasized the need to enhance digital financial literacy in the country to ensure that the underserved and unserved communities are financially included. Speaking during the signing of a Memorandum of Understanding between Financial Sector Deepening (FSD) Zambia and Alliance for Science, Ministry’s Director for Planning and Information, Victor Kachabe noted that digitalization is a very critical component in financial inclusion as it leads to economic growth. Mr. Kachabe said government has created an enabling environment to ensure that such partnerships can thrive by creating jobs and expand the economy so as to sustain the wellbeing of communities. He further noted that the Memorandum of Understanding signed between the two organizations stands at a strategic point where citizens can be advised on how to invest for growth and not consumption. Read more: MoneyFM
ActionAid Zambia has called for a review of the entire tax system as well as implementation and support of United Nations (UN) Tax Convention processes. Speaking in an interview with Money FM News, Organization Tax and Education Coordinator Ucizi Ngulube said there is need to improve Zambia’s tax policies and double taxation agreements which have been in discussion for a number of years. “Tax evasion in Zambia in terms of the large informality and also looking at the big multinational companies who invest heavily in tax planning to ensure that they shift their profits and get off the hook scot free.” “Look at the digital companies like Facebook and Meta, I know on Facebook there is a tax that has been introduced in Zambia but you look at all these digital services that have been operating outside the country but using Zambian infrastructure using Zambian customer and you find that they go off tax free,” Mr. Ucizi noted. Mr. Ngulube noted that a number of companies especially in the mining sector have not been paying their taxes due to lack of proper tax policies. Read more: Money FM
President Hakainde Hichilema yesterday officiated the opening ceremony of the 2024 Technology Empowering Development Forum at the China Non-Ferrous Metals Mining Group (CNMC). Joined by CNMC CEO Mr. Wang Jingjun and his team, the event aimed to enhance cooperation in mining, explore new opportunities, and improve mineral resource development and utilization levels for mutual benefit. Speaking at the forum, President Hichilema highlighted the pivotal role of the mining industry in Zambia’s economy. “Our regular visits to the Copperbelt, particularly to Luanshya, underscore our vision to create a resilient economy, provide employment, and offer business opportunities for our people,” he stated. He emphasized the importance of partnerships with companies like CNMC that bring advanced technology and value addition to the sector. Read more: Lusaka Times
In International News
Boeing has chosen Ethiopia as the preferred location for its African headquarters. Boeing is a leading aerospace company that designs, manufactures, and services commercial aircraft. Kenya, South Africa, and Ethiopia were contenders to host the continental branch, but the American aerospace giant selected Ethiopia due to its exemplary aviation safety record, which is among the best in Africa, Kenyans.co.ke reported. In March, Ethiopian Airlines made history as first African customer for Boeing 777X. Despite recent challenges, Ethiopian Airlines has maintained its commitment to Boeing. Last year, the airline announced orders for 11 Boeing 787 Dreamliners and 20 Boeing 737 Max aeroplanes as part of its fleet modernization strategy. In preparation for the new development, the US aerospace company appointed Henok Shawl to lead its Africa division. Shawl, who previously served at Ethiopian Airlines, was selected for his extensive experience in the aviation and telecommunications sectors. “Africa’s abundant natural resources and burgeoning young workforce are poised to drive significant growth in air traffic and airplane demand over the next two decades,” read the statement in part. Read more: Business Insider
Botswana has granted a license to SpaceX’s Starlink unit, becoming the latest African country to permit the internet services company to operate in it. This approval comes three months after the Botswana Communications and Regulatory Authority (BOCRA) initially rejected Starlink’s application due to missing information, leading to a subsequent ban of Starlink products. This week’s decision to grant Starlink a license follows a meeting between the SpaceX team and President Mokgweetsi Masisi at the Africa-US Business Forum in Dallas, Texas. “After the meeting [with SpaceX], I immediately decided to agree to the licensing of Starlink in the country,” President Masisi said. President Masisi stated that he had given the regulator a two-week deadline to fast-track Starlink’s license application following the meeting. Masisi said Starlink services are expected to become available in the country soon, helping farmers and others in remote areas connect when conventional fixed broadband is unavailable. Read more: Business Insider
BHP Group on Wednesday said it believes an extension to talks with takeover target Anglo American is necessary, as the deadline for discussions looms later in the session. The Australian miner said in a statement that it had proposed a number of “socioeconomic measures” to address concerns over its bid, but added that more time was needed for discussions. The offer values the company at £38.6 billion ($49.2 billion), according to previous Reuters calculations. “BHP believes a further extension of the Deadline is required to allow for further engagement on its proposal,” it said in a statement. The rival miners have until 5 p.m. London time Wednesday to reach an agreement following a week-long extension of last week’s deadline. Anglo American told CNBC that it would respond to BHP’s request “in due course.” Shares of Anglo American fell 2.2% at market open, before paring losses slightly to trade down 1.3%. BHP stock rose 1.2%. Read more: CNBC
The International Monetary Fund on Wednesday raised its forecast for China’s growth this year to 5%, from 4.6% previously, due to “strong” first quarter figures and recent policy measures. The upgrade followed an IMF visit to China for a regular assessment. The organization now expects China’s economy to grow by 4.5% in 2025, up from the previous forecast of 4.1%. But by 2029, they anticipate China’s growth will decelerate to 3.3% due to an aging population and slower productivity growth. That’s down from the IMF’s prior forecast of 3.5% growth in the medium term. China’s economy grew by a better-than-expected 5.3% in the first quarter, supported by strong exports. Data for April showed consumer spending remained sluggish, while industrial activity picked up. About two weeks ago, Chinese authorities announced sweeping measures to support the struggling real estate sector, including removing the floor on mortgage rates. Read more: CNBC
Finally, Capital Markets News
In 114 trades recorded yesterday 200,574 shares were transacted resulting in a turnover of K2,597,653.21. No price changes were recorded yesterday. Trading activity was recorded in Airtel, Bata, CEC Zambia, Chilanga Cement, PUMA, Real Estate Investments Zambia, Standard Chartered Bank Limited, Zambia Breweries, Zambeef, ZANACO and Zambia Sugar. The LuSE All Share Index (LASI) closed at 13,092.03 points, 0.14% higher than it’s previous day close at 13,074.22 points. The market closed on a capitalization of K101,272,048,392.37 including Shoprite Holdings and K66,489,362,952.37 excluding Shoprite Holdings.
6 Govt Bond trades with a total face value of 4,547,000 and turnover 3,743,780 were processed yesterday.