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Cost of living increases by K490.41
Trump Plans to Start Notifying Countries of US Tariffs Up to 70%
IMF says US tax, spending bill runs counter to deficit-cutting advice
In Local Business and Finance News
Selling pressure on the kwacha persisted on Thursday, with the local currency extending losses for a ninth consecutive session against the United States (US) dollar. According to Bloomberg data, the losses were modest at 0.12 percent. The kwacha briefly traded above the K24.200 per dollar mark during intraday trade but failed to sustain the move, closing just below that level. Market analysts attributed the continued weakness to persistent liquidity constraints and heightened corporate demand for dollars. They cautioned that, unless there was a significant shift in the prevailing supply-demand dynamics, the weakening trend is likely to continue. In its daily market update, Absa Bank Zambia reported that the local unit opened the session at K24.100/24.150 per US dollar on the interbank market and remained within that range until close. Read more: Zambia Monitor
The Copperbelt Energy Corporation (CEC) has announced plans to triple its solar photovoltaic (PV) capacity to 300 megawatts (MW) by 2027, in a bid to enhance Zambia’s energy security amid ongoing drought-induced power challenges. CEC currently operates 98MW of solar PV at its Kitwe hub, with an additional 136MW expected from the Itimpi II project. Speaking on ZNBC Radio 2 on Friday, CEC Head of Government Relations, Silvester Hibajene, urged Zambians to remain patient as the country recovered from the prolonged drought, which slashed hydropower generation by nearly 80 percent last year. “Solar has its limitations, but it plays a critical complementary role to hydro and thermal power,” Hibajene said. Read more: Zambia Monitor
The Lusaka Securities Exchange (LuSE) closed June with a 31 percent year-to-date gain, as the All-Share Index reached 20,214.88 points. Strong performances from Airtel Zambia, Metal Fabricators, AECI Mining, and others fuelled the rally. Equity turnover hit K123 million in June, while retail investor activity via mobile trading apps set new records. In a monthly newsletter issued on Thursday, LuSE Chief Executive Officer, Nicholas Kabaso, noted that other strong performers included Shoprite Holdings, Real Estate Investment Zambia REIT, Chilanga Cement and Zambia Forestry, among others. “Equity market activity remained firm in June, with total turnover reaching K123 million, marking the fifth month in 2025 to surpass the K100 million threshold,” Kabaso said. A total of 13 million shares were traded in over 6,000 transactions, bringing half-year turnover to K1.2 billion. Read more: Zambia Monitor
Zambia's economy showed resilience in 2024, expanding by 4% despite challenges such as drought and power outages, largely due to growth in the mining sector and services. The agriculture sector faced difficulties, but its contribution to GDP was minimal, allowing overall growth to continue. According to the latest Zambia Economic Update, the outlook for Zambia remains optimistic, driven by robust momentum in the mining sector, a rebound in agriculture, and improvements in tourism. Real GDP is anticipated to increase by 5.8% in 2025, with an average growth rate of 6.5% projected for 2026-27. The expansion in 2025 is partly attributable to some base effects as the economy recovers from the severe drought, supported by adequate rainfall in the current rainy season. The ZEU recommends:
- Unleashing agricultural productivity by fully transitioning to the e-voucher system, improving targeting, and shifting toward private-sector-led financing to limit public liabilities.
- Raising productivity through greater competition in the energy sector.
- Closing tax gaps by strengthening revenue administration.
- Maintaining monetary policy tightening to anchor inflation expectations and protect policy credibility, to achieve positive real rates. Read more: World Bank
The Jesuit Centre for Theological Reflection (JCTR) has warned that the cost of living in Zambia remained persistently high, with families struggling to meet basic needs despite signs of macroeconomic improvement. In its half-year analysis of the Basic Needs and Nutrition Basket (BNNB) for Lusaka, the JCTR reported a K490.41 increase in the cost of living for the month of May 2025 alone, now standing at K11,763.38. The Centre attributed the rise in the cost of living primarily to the non-food component, which rose by K452.04, while the food basket experienced a more modest increase of K36.38. Price hikes were noted for items such as chicken, kapenta, and tomatoes, while roller mealie meal, bananas, and some fruits saw price reductions. Read more: News Diggers & Zambia Monitor
In International News
The US government is to start sending out letters to countries with details of higher US tariff rates that will begin on 1 August, President Donald Trump has said. Between 10 to 12 letters will go out on Friday, with more over the coming days, the president told reporters. The import duties will range from "60% or 70% tariffs to 10 to 20% tariffs," he said, the top end of which is higher than he had previously outlined. Trump has set a deadline of 9 July for negotiations over import tax rates as countries scramble to reach deals. He has previously said there would be a baseline tariff of 10% on many economies up to a 50% maximum. Trump did not say which countries' goods would face the US taxes, or whether the rates would only apply to certain goods. "My inclination is to send a letter out and say what tariff they're going to be paying," he told reporters on Thursday. "It's just much easier." He added: "We're going to be sending some letters out, starting probably tomorrow." Read more: BBC News
Zimbabwe’s gold-backed ZiG posted its best single-day gain against the dollar this year, boosted by surging bullion output and improved foreign currency reserves. The currency strengthened 0.2% on Friday to trade at 26.89 against the dollar, according to data posted on the central bank’s website. That is only its 12th day of appreciation against the US currency this year. Gold output climbed almost 46% to 20,104 kilograms in the first six months of the year, the nation’s sole bullion refinery, Fidelity Refineries said in a statement Friday. In June it jumped 63% compared with a year earlier. The rise has bolstered foreign reserves threefold, according to the central bank. Read more: Bloomberg
After nearly 29 hours of debate, the United States House of Representatives have passed the “One Big Beautiful Bill”, an enormous tax cut and spending package that represents a pillar of President Donald Trump’s agenda. The lower house of the US Congress voted by a margin of 218 to 214 in favour of the bill on Thursday. All 212 Democratic members of the House opposed the bill. They were joined by Representatives Thomas Massie of Kentucky and Brian Fitzpatrick of Pennsylvania, who broke from the Republican majority. After the bill’s passage, Speaker of the House Mike Johnson, the top Republican, applauded his fellow party members. “I believed in this vision. I believed in the group. I believe in America,” Johnson said to applause. The bill now heads to the White House for Trump to sign it into law. Read more: Al Jazeera
The massive U.S. tax and spending bill slated for a final vote in Congress runs counter to the International Monetary Fund's recommendations that Washington reduce fiscal deficits over the medium term, IMF spokesperson Julie Kozack said on Thursday. Kozack told a regular news briefing that there was a broad consensus that the Republican bill will add to U.S. fiscal deficits, while the U.S. needs to start a fiscal consolidation. "From the IMF side, we have been consistent in saying that the U.S. will need to reduce its fiscal deficit over time to put public debt-to-GDP on a decisive downward path," Kozack said. "Of course, the sooner that process starts to reduce the deficit, the more gradual the deficit reduction can be over time." Kozack said that there were many policy options for the U.S. to reduce deficits and debt, adding: "It is, of course, important to build consensus within the United States about how it will address its these chronic fiscal deficits." In recent years, the IMF has recommended that the U.S. raise taxes, including on middle income earners, to close fiscal deficits. The Republican tax bill extends 2017 tax cuts and adds new tax breaks for many Americans. Read more: Reuters
Finally, Capital Markets News
In 282 trades recorded yesterday 238,439 shares were transacted resulting in a turnover of K1,388,674.27. The following price changes were recorded yesterday: +K0.02 in CEC Zambia and -K0.05 in Zambeef. Trading activity was also recorded in the following securities Airtel, Bata, Chilanga Cement, Madison Financial Services, PUMA, Standard Chartered Bank Limited, Zambia Reinsurance, ZANACO, Zambia Sugar as well as CEC Africa on the quoted tier.
For the dollar denominated security (REIT): 2 trades with a total quantity of 1,257 shares yeilding a turnover of $104.13 were recorded yesterday.
The LuSE All Share Index (LASI) closed at 20,148.95 points, 0.02% higher than its previous close. The market closed on a capitalization of K295,892,452,089.89 including Shoprite Holdings and K105,820,383,189.89 excluding Shoprite Holdings.
