Story of the Day
In compliance with the Securities Act No. 41 of 2016 and the Listing Requirements of the Lusaka Securities Exchange, Metal Fabricators of Zambia PLC (ZAMEFA) announces its results for the year ended 30th September 2022. Revenue at Zmw 2 056 million is 15% lower than the prior year (2021: Zmw 2 424 million). This is as a result of lower sales volumes in the current year. Additionally, as most of the company’s revenue is generated in United States Dollars (USD) the stronger Zambian Kwacha against the USD, resulted in lower revenue in the current year. However, the impact of the stronger Zambian kwacha was partly offset by the pass through effect of higher copper prices in the 2022 financial year when compared to the prior year. Read more
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Zimbabwe has been ordered to suspend power generation from its main source of electricity, the Kariba hydroelectric dam. The news is a blow to Zimbabweans who are already facing up to 12 hours a day with no electricity. The Zambezi River Authority (ZRA) said water storage levels were too low for power generation. It added that Zimbabwe had already used up its annual allocation of water for electricity, and It was eating into Zambia’s share. Read more: ZNBC
Commerce, Trade and Industry Minister Chipoka Mulenga has urged COMESA member states to begin investing in each other. Speaking during the 43rd COMESA Inter-Governmental Committee Meeting in Lusaka today held under the theme ‘Building Resilience Through Digital Economic Integration’, Mr Mulenga disclosed that African countries have concentrated on trading with each other at the expense of investment, adding that countries in the continent should complement each other and not compete so they can fit in the missing link. “This is the reason why we need each other, and COMESA to keep binding us together for our prosperity, as COMESA continues to play an important role in the development of economies through championing of regional economic and social integration initiatives towards the achievement of its vision, that is the improved living standards of all its people,” he said. Read more: Lusaka Times
The Zambia Information and Communications Technology Authority (ZICTA) says the country’s fourth mobile network operator Beeline Telecom, is expected to commence operations on January 31, 2023. The authority says Beeline has the financial capability to kickstart its operations next year. ZICTA granted Beeline Telecom a license to commence operations in February 2021 but the timeline has been extended twice. Read more: News Diggers
Finance and National Planning Minister Dr Situmbeko Musokotwane says citizens’ living standards will improve as the country’s economy grows. In an interview, Dr Musokotwane said as the economy improves, people should expect their incomes to increase faster than commodity prices. Read more: News Diggers
International Business and Finance
China has offered to relieve Rwanda of a $7.1 million debt or 50 million RMB Yuan on loan to build the 6.36-kilometer Masaka-Kabuga road under the Kigali urban road upgrading project. A statement released by Rwanda denotes that the $7.1 million debt relief is a part of China’s pledge to relieve its debt in impoverished African nations. The statement reveals that the move is part of China’s decision to cancel the outstanding interest-free loan in accordance with the agreement on economic and technical cooperation between the two countries. Read more: Business Insider
A key measure of China’s factory activity dipped again in November, according to the latest official figures. The Purchasing Managers’ Index (PMI) fell to 48, down from 49.2 in October. It comes as strict Covid restrictions and weakening global demand weigh on the world’s second largest economy. In recent days there have been violent protests against President Xi Jinping’s zero-Covid measures that have seen major cities being put into lockdowns. Read more: BBC News
A group of some of the world’s most powerful oil producers is highly likely to take further measures to stem a price decline and try to balance the market, according to Goldman Sachs. OPEC and non-OPEC producers, an influential energy alliance known as OPEC+, will convene in Vienna, Austria on Dec. 4 to decide on the next phase of production policy. Read more: CNBC
Bank of England Governor Andrew Bailey on Tuesday pressed home the central bank’s opposition to shaking up the way it pays interest on its reserves held by commercial banks, saying that doing so would damage its ability to steer the economy. Some former BoE officials have said the central bank should alter its system of paying interest to banks on its 950 billion pounds ($1.15 trillion) of reserves, the vast majority of which the BoE issued to finance its quantitative easing programme. Read more: Reuters
Capital Markets Report
In 42 trades recorded yesterday, 20,679 shares were transacted resulting in a turnover of K106,821.73. A share price gain of K0.20 was recorded in Standard Chartered Bank Limited. A share price gain of K0.50 was recorded in Zanaco. A share price loss of K0.01 was recorded in Zambia Sugar. Trading activity was also recorded in BATA, Copperbelt Energy Corporation Zambia, Investrust, and Zambeef. The LuSE All Share Index (LASI) closed at 7,340.28 points, 3.41% up from it’s previous close at 7,098.57 points. The market closed on a capitalization of K72,882,611,653.15 including Shoprite Holdings and K38,099,926,213.15 excluding Shoprite Holdings.
