Story of the Day
In a progressive move, the Energy Regulation Board (“ERB”) has published the draft Net-Metering Regulations (the “Draft Regulations”), which will allow electricity consumers who generate their own electricity, using renewable energy technologies, to supply any excess electricity back into the grid and receive a credit. The credit will then be offset against any electricity the consumer would otherwise have to purchase when it is not producing enough to meet its needs at a different time during an applicable billing period. Net-metering creates significant savings on electricity costs, encourages self-generation and reduces reliance on the grid. Self-generation and net-metering also reduce power supply interruptions by making available to the grid any excess power generated, thereby increasing the bankability of electricity projects. Read more
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African Development Bank (AFDB) chief economist Nathaniel Angola says the bank remains committed to supporting Zambia and its priority areas in realising the effective development of the power sector. Speaking during the signing of the implementation agreement for the technical assistance project between the Ministry of Green Economy and Environment, Ministry of Energy and Rural Electrification Authority (REA), Tuesday, Angola said the bank was proud to support the initiative as it aligned well with the priorities of the Zambian government. Read more: News Diggers
Government says the 17 percent adjustment in tariffs over the next five years, if need be, will be determined by the Energy Regulation Board. And government has accepted the COSS recommendation that ZESCO’s financial position needs urgent intervention. Read more: News Diggers
The Zambia National Commercial (ZANACO) has described Zambia’s bonds currently as the most attractive in the world. ZANACO Chief Risk Officer, Mutisunge Zulu says this is because of the sound political environment, reduced inflation rate and the continued stability in the local currency among other factors. Speaking during a media briefing in Lusaka today, Mr. Zulu said the country has in the recently recorded an increase in investment appetite with the business confidence growing up to 50.5 percent. Read more: Lusaka Times
International Business and Finance
A new report by McKinsey & Co said the fintech industry in Africa would record 10% growth annually, with revenues soaring to $230 billion by 2025, up from the current level of $150 billion. The report, titled Fintech in Africa: The end of the beginning, explained that the projection is based on the current pace of fintech penetration across the continent. Fintech is the fastest growing startup industry in Africa, driven by the increasing smartphone ownership, internet penetration, declining internet cost and the continent’s tech-savvy youthful population. Read more: Business Insider
Foreign direct investment (FDI) to African countries hit a record $83 billion in 2021, according to UNCTAD’s World Investment Report 2022. This was more than double the amount reported in 2020 when the COVID-19 pandemic weighed heavily on investment flows to the continent. Despite the strong growth, investment flows to Africa accounted for only 5.2% of global FDI, up from 4.1% in 2020. While most African countries saw a moderate rise in FDI in 2021, around 45% of the total was due to an intrafirm financial transaction in South Africa. Read more: Business Insider
Tuesday’s market rally was brief. Stocks opened higher but quickly gave up their gains. A more than 5% drop in oil prices, while welcome news to consumers, led to a big sell-off in energy stocks. The Dow tumbled nearly 310 points, or 1%. Shares of Chevron, a Dow component, fell more than 2%. The S&P 500 was down 1.1% and oil stocks were the biggest losers. The S&P Energy Select Sector SPDR Fund slid 3.4%. Wall Street’s bad mood wasn’t just about oil, as the entire market was reeling Tuesday. The Nasdaq, home to many top tech stocks, fell 1.1% as well. Read more: CNN
HP Inc. CEO Enrique Lores told CNBC on Tuesday he sees indications that commercial customers are spending more cautiously on PCs as macroeconomic uncertainty weighs on enterprises. Lores’ comments in a “Mad Money” interview come on the heels of a well-documented slowdown in consumer PC demand this year, even as sales of higher-performing machines favored by corporations appeared to be showing some resilience. Read more: CNBC
China’s factory activity extended declines in August as new Covid infections, the worst heatwaves in decades and an embattled property sector weighed on production, a survey showed on Wednesday. The official manufacturing purchasing managers’ Index (PMI) rose to 49.4 in August from 49.0 in July, the National Bureau of Statistics (NBS) said. The index remained below the 50-point mark that separates contraction from growth but was higher than the 49.2 expected in a Reuters poll of analysts. Read more: CNBC
Capital Markets Report
In 98 trades recorded yesterday,340,129 shares were transacted resulting in a turnover of K1,394,586. A share price loss was recorded in Standard Chartered Zambia of K0.07. Trading activity was also recorded in Zambia Breweries, Zambeef, Zanaco, ZAFFICO and CEC Africa on the quoted tier. The LuSE All Share Index (LASI) closed at 6,987.25 points, 0.38% down from its previous close of 7,014.06 points. The market closed on a capitalization of K71,345,938,692 including Shoprite Holdings and K36,563,253,252 excluding Shoprite Holdings.