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$300 million boost for Zambian SMEs as GIP Zambia launches
Hichilema pledges sweeping reforms to tackle corruption in medical supply chain
US inflation rises as tariffs drive up prices
In Local Business and Finance News
President Hakainde Hichilema has pledged to implement sweeping reforms aimed at curbing corruption in Zambia’s healthcare system, particularly within the medical supply chain. In a statement issued on Tuesday by State House Chief Communication Specialist, Clayson Hamasaka, President Hichilema reaffirmed his administration’s commitment to rooting out graft in the sector. This followed a recent forensic audit at the Zambia Medicines and Medical Supplies Agency (ZAMMSA), which uncovered significant financial irregularities. Hamasaka stated that additional reforms and operational improvements were already underway in relevant departments, as the government continues to review audit recommendations and enhance governance across the agency. He noted that last year, President Hichilema commissioned a comprehensive, independent forensic audit—conducted by PricewaterhouseCoopers (PwC)—as part of a series of decisive actions to address the historical theft of medicines. Preliminary findings from the audit have since been shared with cooperating partners. State House emphasized that no one would be shielded from accountability, stressing that “there will be no sacred cows,” and that all individuals implicated will face the full force of the law. Read more: Zambia Monitor
ZESCO Limited has signed a 25-year Power Purchase Agreement (PPA) with Lufubu Power Company (LPC) to secure 163 Megawatts (MW) of baseload hydropower from a new plant to be developed in Zambia’s water-rich Northern Province. According to a statement issued on Tuesday by ZESCO Spokesperson, Matongo Maumbi, the agreement comes at a time when the government is accelerating efforts to address the country’s energy deficit, eliminate load shedding, and meet growing electricity demand. Maumbi said the Lufubu hydropower project marks a strategic shift by tapping into the underutilized but rain-abundant northern circuit, aligning with government plans to diversify the power mix and reduce dependence on drought-prone southern dams. Read more: Zambia Monitor
Britain and Sweden’s development-finance arms are partnering with the Zambian National Pension Scheme Authority to launch an investment platform backed by an initial $70 million to provide capital for the southern African nation’s small and medium-sized businesses. Growth Investment Partners Zambia was launched in the capital, Lusaka on Tuesday. British International Investment put up $37.5 million alongside commitments of $17.5 million from Napsa and $15 million from Swedfund, they said in a joint statement. “When you see big economies, remember SMEs,” Zambian President Hakainde Hichilema told the event. “We are working to grow our economy and we can not ignore this sector. It’s extremely important, it’s a bedrock of growth, it’s a bedrock of jobs.” Over the next 15 years, GIP Zambia is expected to deploy more than $300 million to 150 SMEs, BII, Swedfund and Napsa said. Read more: Bloomberg & Zambia Monitor
The leader of Zambia’s state mining corporation is pushing for the US to grant exemptions from proposed copper import duties, arguing that such tariffs could undermine a major infrastructure initiative linking the two nations, said the Financial Times. Kakenenwa Muyangwa, who heads the Zambian Consolidated Copper Mines (ZCCM), expressed unease about potential 50% tariffs on copper imports and their effect on the Lobito Corridor project. The ambitious railway development aims to provide Zambia, which ranks as Africa’s second-biggest copper producer, with improved access to Western markets for its mineral exports, the newspaper said. The fundamental concept behind the Lobito Corridor centers on channeling these essential minerals, particularly copper, toward American markets,” Muyangwa said in recent comments. He indicated optimism that Washington might consider special provisions for Zambian copper shipments as the project advances. Read more: MiningMX
In International News
Prices rose by more than expected to 3.6% in the year to June, the fastest rate of inflation since January 2024, the Office for National Statistics (ONS) said. That marks a rise from the 3.4% rate in May, boosted by higher prices for food and clothing, air and rail fares, and a lower drop in fuel prices than this time last year. The rate at which prices increase matters to shoppers, whose money doesn't go as far if goods and services are becoming rapidly more expensive. Inflation remains much higher than the Bank of England's target rate of 2%, but a cut in the cost of borrowing is still expected at next month's rate-setting meeting. The pace of price rises affects whether the Bank decides to raise or lower interest rates as higher rates can slow inflation by dampening economic activity. The faster pace of price rises for June was unexpected, with economists having predicted the inflation rate would stay at 3.4%. Read more: BBC News
US inflation jumped last month as President Donald Trump's tariffs took hold, pushing up prices for items from clothing to coffee. Consumer prices rose 2.7% in the year to June, up from 2.4% the previous month, with prices rising at the fastest pace since February, the Labor Department said. Higher energy and housing costs, such as rents, were the major drivers of the increase. But the data also suggested that consumers are starting to feel the impact of tariffs, as some firms begin to pass along the costs of Trump's new taxes on imports. Coffee prices jumped 2.2% from May to June, while prices for citrus fruits climbed 2.3%. Toy prices rose 1.8%, appliance prices increased 1.9%, while clothing prices gained 0.4% - the first increase to hit the sector in months. Read more: BBC News
US President Donald Trump is ramping up his tariff agenda, announcing plans to impose new duties of over 10 percent on imports from smaller nations, including several in Africa and the Caribbean. The move marks a sharp shift in US trade policy, aimed at what Trump describes as "reciprocal" treatment. Several African countries are already preparing for steep increases. Lesotho, a small Southern African nation, could face tariffs as high as 50 percent on goods exported to the United States. While the tariffs are currently on hold during a three-month consultation period, concerns are rising over the long-term economic fallout. “These are countries. Many of them, you know, like 200 countries,” Trump said in response to questions about which nations would be affected. “We’ll probably set one tariff for all of them.” Read more: Africa News
Fears of a transatlantic trade war as the European Union warns it is preparing potential countermeasures in response to Washington's announcement of sweeping 30 percent tariffs on EU exports to the United States. Ministers from the EU’s 27 member states met in Brussels on Monday to discuss how to respond to what they called an “absolutely unacceptable and unjustifed” threat. At a joint press conference with EU trade chief Maros Sefcovic after the meeting, Danish Foreign Minister Lars Lokke Rasmussen said that the bloc views the threat as "absolutely unacceptable and unjustified" and is prepared to respond if talks with Washington fail to produce a viable outcome. "We are committed to continuing working with the United States on a negotiated outcome," he said, but the agreement has to be "mutually acceptable" on both sides. He revealed that the EU will react with robust and proportionate countermeasures if required. Read more: Africa News
Finally, Capital Markets News
In 430 trades recorded yesterday 78,027 shares were transacted resulting in a turnover of K1,833,057.12. The following price changes were recorded yesterday: -K1.50 in Airtel, -K0.01 in CEC Zambia and +K0.01 in Zambeef. Trading activity was also recorded in the following securities AECI, BATA, Chilanga Cement, PUMA, Shoprite, Zambia Breweries, and ZANACO.
For the dollar denominated security (REIT): 3,501 units were traded in 2 trades resulting in turnover of $315.09. The LuSE All Share Index (LASI) closed at 20,213.69 points, 0.19% lower than its previous close. The market closed on a capitalization of K296,180,277,988.78 including Shoprite Holdings and K106,108,209,088.78 excluding Shoprite Holdings.
