Zambia Business News
- Upscaling the agricultural productivity and private sector investment can assist Zambia achieve sustained and inclusive growth. According to Nathan Belete, World Bank Country Director for Malawi, Tanzania, Zambia, and Zimbabwe “Low job creation trends and a limited poverty response to economic growth could affect Zambia’s sustained and inclusive growth prospects’’.
- Kagem Mining Ltd finances groundbreaking of Chapula Polytechnic, Zambia’s first official Polytechnic. This project is a result of a memorandum of understanding (MoU) signed in September 2023 between Kagem Mining Ltd and the Zambian government, with Kagem committing ZMW52.5mln (USD 2.5mln) to the venture.
- Zambia’s Industrial Development Corporation (IDC) signed a deal with Kenyan tycoon Julius Mwale to support the development of smart cities, mining, infrastructure, and agriculture. The consortium will build smart cities, roads, and deploy resources for new factories that will employ thousands of Zambians. The consortium will also invest in healthcare and agriculture, and has so far secured US$2.4bln for the Zambia projects.
- Zambia’s National Road Fund Agency (NRFA) Chairperson Noel Nkoma reported that the agency’s debt portfolio stood at ZMW15Bln. The NFRA also incurred penalties for unfulfilled contractual obligations and other breaches for local contractors.
- The Zambia Environmental Management Agency (ZEMA) has approved 207 developmental projects worth US$965mln for implementation. The total count of projects now approved for implementation stands at 452 worth US$2bln according to ZEMA Director General Godfrey Mwiinga at the agency’s 5th Board meeting.
Zambia Economic News
- International bondholders agreed their portion of the US$13.4bln debt restructuring, making Zambia the first to complete restructuring under the G20-led ‘Common Framework’ architecture. The head of the International Monetary Fund (IMF), Kristalina Georgieva, has hailed Zambia’s success after the country declared itself bankrupt over 3.5 years ago after missing a coupon payment of US$42.2mln on its Eurobond debt.
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The World Bank is expected to provide about US$250mln grant to Zambia this month as additional support under its International Development Association bringing its total grant support since July 2023 to over US$800mln. The National Energy Advancement and Transformation (NEAT) programme as well as the US$150mln financing agreement for the Girls’ Education and Women’s Empowerment and Livelihoods for Human Capital Project.
- The Zambian economy had previously been projected to grow by 5%,but is now only expected to grow by 2.7% due to a severe drought that has impacted the agriculture sector and other parts of the economy. The growth for this year was going to be in the region of 5% growth in 2023 according to Finance and National Planning Minister, Dr. Situmbeko Musokotwane, who announced a significant reduction in the country’s economic growth forecast for the year.
- Zambia’s mining industry records nearly US$10bln investments in the mining industry the past 3 years leading to an encouraging outlook due to robust mining policy environment reported Mines and Minerals Development Permanent Secretary Hapenga Kabeta.
- Zambia’s Food Reserve Agency (FRA) has immediately started buying Grade A Non-genetically modified white maize from small scale farmers in all its satellite depots countrywide. The Agency is buying a 50kg bag of white maize at ZMW330 or ZMW6,600 per metric tonne.
Global Business & Economic News
- Africa: Nigeria plans to procure 3.5 million electricity meters before the end of 2024 to improve revenue collection for its cash-strapped power sector, where more than half of the customers are billed by estimates. The government and Nigerian Sovereign Investment Authority signed an agreement last month to finance 10 million electricity meters for households and businesses at the cost of 1.325trln naira ($946mln) within 5 years.
- Europe: The European Central Bank (ECB) cut the rate it pays on bank deposits to 3.75% from a record 4.0% on 6th June,2024, however could not guarantee easing after a series of disappointing wage and inflation data in recent weeks. Robert Holzmann , the head of Austria’s central bank, was the only exception of the ECB’s 26-member Governing Council to oppose the rate cut.
- Asia / Middle East: The stock markets in the United Arab Emirates (UAE) closed strong 7th June 2024, as oil prices firmed after OPEC+ members Saudi Arabia and Russia indicated readiness to pause or reverse oil output increases. The key catalyst for Gulf’s financial market i.e. oil prices were up 0.39% to $79.89 a barrel by 10:57 GMT.
- South America: State Power Investment Corporation (SPIC) Chinese electricity company announced a 780mln reais/USD$147.41mln investment on 5th June 2024. This involves construction of two new wind farms in North-Eastern Brazil, making its entrance Brazil’s solar sector. The firm is diversifying its portfolio and aiming to become one of Brazil’s 3 largest energy generators.
- USA: Gregoire Tournant (57),a former Allianz Fund Manager pleaded guilty on 7th June 2024 over his role in a meltdown of private investment funds activated by the pandemic effects leading to an estimated US$7bln in investor losses. Gregoire further agreed to give up US$17.5mln in deceptive gains, including bonuses that were inflated by his fraud.