Story of the Day
ZESCO has revealed that Zambia has achieved an electricity generation surplus of 1,156MW (Megawatts) following the successful commissioning of 4x150MW capacity from the 750MW Kafue Gorge Lower Power Station. ZESCO Managing Director Eng. Victor Mapani says currently the installed national generation capacity stands at 3,456.8MW against a peak national demand of approximately 2,300MW. Eng. Mapani told a high-level Panel Discussion at the ongoing Association of Power Utilities of Africa (APUA) meeting in Dakar, Senegal that ZESCO was using internally generated resources to progress the 750MW project, being constructed at a cost of approx.$2.3Billion to completion by November of 2022 at a cost of US $2.3Billion following non-disbursements by the project financiers. Read more
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The Board of Directors of the African Development Fund, the concessional window of the African Development Bank Group, has approved a $14.4 million loan to enhance food security in Zambia, a key supplier to countries in the region. The financing is anchored in the African Development Bank Group’s African Emergency Food Production Facility. In Zambia, it will provide certified seeds and fertilizer to 45,000 emergent farmers, using innovation and ICT platforms via existing private sector-based distribution channels. Women and youths will receive 50%-subsidized seeds through an electronic platform that enhances transparency, accountability and sustainability. The project will promote proven climate-smart agricultural practices employed by the Bank’s Technologies for African Agricultural Transformation initiative (TAAT). Another outcome will be the implementation of agriculture and trade policy reforms. Read more: AfDB
The actual execution of the Tanzania-Zambia (Taza) power interconnection project is set to begin in January next year. This was revealed recently by the Coordinator of the project Mr. Elias Makunga while addressing the Tanzania’s Energy Minister January Makamba. Mr. Makunga further revealed that the Sh1.4 trillion project, which involves the construction of a 400-kilowatt electricity transmission infrastructure between the two countries, will be concluded in January 2025. Four new power stations will also be constructed as part of the project. Read more: The Citizen
Caledonia Mining Corporation, which operates Gwanda based gold producer, Blanket Mine, is courting Zambian authorities over a power purchase agreement to import electricity directly for its planned gold asset acquisition. Last week, Caledonia, one of the largest gold producers in Zimbabwe, announced that it was in the process to acquire Bilboes Gold Limited for US$53,3 million. Read more: The Herald
Minister of Commerce, Trade and Industry, Chipoka Mulenga says relying entirely on agriculture and mining cannot provide meaningful economic transformation. Mr Mulenga says it is for this reason the new dawn government is focusing on investing in other sectors such as energy and tourism. Speaking during the commemoration of Egypt’s 70th National day in Lusaka yesterday, the minister said government wants to enhance cooperation with Egypt in many different sectors. Read more: Lusaka Times
International Business and Finance
China has signalled that it may miss its annual economic growth target, as Covid restrictions weigh on the world’s second largest economy. On Thursday, the Politburo – the ruling Communist Party’s top policy-making body – said it aims to keep growth within “a reasonable range”. It did not mention the official growth target of 5.5% it had earlier set. China is continuing to pursue a zero-Covid policy that has put major cities into full or partial lockdowns. Read more: BBC News
Facebook-owner Meta piled onto fears of plunging demand in the advertising market, warning it expects to generate less revenue than expected next quarter. Meta said its latest Q2 revenue fell year-over-year to $28.8 billion its first such decline since the company went public a decade ago. Even worse, Meta set expectations for Q3 revenue at $26 billion to $28.5 billion, well below Wall Street’s current estimate of $30.4 billion. Meta’s stock fell 2.7% in recent after-hours trading on Wednesday. Read more: Business Insider
Amazon and Apple posted better than expected sales, reassuring investors that the tech giants will be able to weather slowdowns in global economies. Apple’s profits dropped almost 11% from a year ago to $19.4bn, as it wrestled with Covid-19 lockdowns in China, while Amazon lost $2bn, hit by changes to the value of its investment in electric carmaker Rivian Automotive. Meanwhile, Amazon said its revenues were up 7% to $121.2bn, despite its e-commerce business being hit in recent months. Online sales shrank 4%, the second quarter in a row of decline. Read more: BBC News
Heavy rains in western Japan will cost Toyota Motor Corp an additional 1,000 or so vehicles in lost production in July, the automaker said on Friday, bringing its total estimated cut in output for the month to 5,200. It marks the second time this week that Toyota has revised its expected cut in domestic production, which it initially said would total 4,000 vehicles. Read more: Reuters
Some Asian central banks must rapidly raise interest rates to prevent an “upward spiral” in inflation as the war in Ukraine drives surging fuel and food prices, an International Monetary Fund (IMF) official has said. While inflation in Asia remains “moderate” compared with other regions, several economies will have to act quickly to avoid bigger hikes later on, Krishna Srinivasan, director of the IMF’s Asia and Pacific Department, wrote in a blog on Thursday. Read more: Al Jazeera
Capital Markets Report
In 91 trades recorded yesterday, 690,551 shares were transacted resulting in a turnover of K1,813,789. Share price gains were recorded in Copperbelt Energy Corporation, Zambeef and in CEC Africa on the quoted tier. Trading activity was also recorded in AECI, Airtel, British American Tobacco Zambia, Chilanga , PUMA, Standard Chartered Zambia, Zambia Breweries, Zanaco and Zambia Sugar. The LuSE All Share Index (LASI) closed at 6,892.98 points, 0.08% up from its previous close of 6,887.17 points. The market closed on a capitalization of K70,935,587,445 including Shoprite Holdings and K36,152,902,005 excluding Shoprite Holdings.