VenturesNow

Zambia wants higher stakes in new mining projects

Published

6 months ago

February 7, 2024

According to Mines Minister, Paul Kabuswe, Zambia is eager to negotiate higher shares in new mining operations in order to increase revenue and spending on social programmes.

Kabuswe revealed that the negotiation would include state-owned ZCCM-IH, which would apply to future agreements but exclude mines that were currently in operation.

ZCCM owns 10% to 20% of mines, including those held by Barrick Gold, Vedanta Resources, and First Quantum Minerals. It also retained the remaining 51% of Mopani Copper Mines, which had previously belonged to Glencore, and sold the other portion to an International Holding Company entity based in the United Arab Emirates.

The Mopani and Konkola Copper Mines are among the businesses that have experienced difficulties, despite Zambia’s government setting a target of producing 3 million metric tonnes of copper within ten years.

The minister also revealed that it also plans to start buying minerals such as copper from projects it has stakes in to trade on its own. Zambia has been a mining powerhouse for well over a century and is one of Africa’s leading producers of copper. The nation’s economy depends heavily on mining, which generates 75% of its export income.

“Stakes in new tenements will actually be moulded around such kinds of partnerships,” Kabuswe said in an interview on Tuesday on the sidelines of the Africa Mining Indaba.

“We are looking closely,” Kabuswe said. “But looking closely, not in a negative sense, but hoping that things around them can be resolved so that it doesn’t affect ourselves.”

“We want to make sure that there is win-win, that there is no slave-master relationship, and we also want to make sure that there’s social impact,” he added.

The country’s government currently plans to increase copper production from approximately 850,000 metric tonnes to 3 million metric tonnes annually by 2032.

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Nigeria has received $10.9 billion multi-sector investments from AfDB— Official

Published

4 days ago

July 23, 2024

Ifeoluwa Dada

Nigeria has received $10.9 billion from the African Development Bank (AfDB), comprising $4.9 billion in public and private sector initiatives.

AfDB Director-General of the West Africa Region, Lamin Barrow, said the bank’s Nigeria funding approvals total $10.9 billion since it started operations.

Barrow made the revelation at the Second Interactive Session and Workshop on Developing Bankable Business Proposals/Business Plans for Youths in Agriculture in Abuja on Monday.

It was part of the bank’s 60th anniversary celebrations with stakeholders. Nigeria is the AfDB’s largest shareholder, and the bank’s relationship with it has grown, Barrow said.

The AfDB invests in Nigeria’s energy, power, transport, water, and sanitation infrastructure.

“Over the last 60 years, the Bank has grown into a trusted partner and the continent’s premier development financial institution.

“Our cooperation with Nigeria has expanded over the years, especially considering that Nigeria is the largest shareholder.

“Since it started operations in the country, cumulative financing approvals have reached 10.9 billion dollars and our portfolio currently stands at 4.9 billion dollars supporting projects in the public and private sectors,” he said.

After taking office eight years ago, AfDB President Dr Akinwumi Adesina prioritized the High 5—Power, Feed, Industrialize, Integrate, and Improve Africa’s quality of life—Barrow added. He said these were accelerators for achieving the SDGs and Agenda 2063 ambitions. The projects and programs supported during this time have reportedly affected over 400 million individuals.

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Analysts expect Egypt’s economy to rise 4.0% in 2024/25

Published

4 days ago

July 23, 2024

Ifeoluwa Dada

A recent study that sampled seventeen economists by Reuters has predicted slower economic growth for Egypt in April after a $8 billion IMF accord in March.

The median projection for GDP growth in the fiscal year starting July 1 was 4%, down from 4.35% in April and 4.15% in January.

The poll predicted the GDP grew 2.9% in the fiscal year ending June 30. This is below their April and January predictions of 3% and 3.5%. Poll: 2025/26 growth should rise to 4.99%.

After the IMF agreement, Capital Economics’ James Swanston predicted slower growth due to tighter fiscal and monetary policies and a weaker pound.

“The overall net impact is that economic growth will be weaker this fiscal year, but there are reasons to be more optimistic on GDP growth from FY2025/26 onward,” Swanston said.

Egyptian tourism and Suez Canal revenue have slowed due to the Gaza crisis, which has cut Egypt’s foreign revenue by more than half.

Egypt’s planning ministry predicted 4.2% growth in 2024/25 on June 2. Analysts expect the Egyptian pound to fall to 49.50 per dollar by June 2025 and 52.50 by June 2026.

Before dropping it in March 2024, the central bank kept the pound at 30.85 per dollar. It’s roughly 48.40 per dollar.

The survey forecast 20.5% headline inflation in 2024/25 and 12.05% in 2025/26. In June, inflation dropped to 27.5% from a record high of 38.0% in September, exceeding the central bank’s objective of 5%-9%.

The analysts expect the central bank’s overnight lending rate to drop to 21.25% by June 2025 and 15.25% by June 2026.

Foreign money shortages have slowed the Egyptian economy. However, a $24 billion real estate transaction with the UAE in late February, a significant currency devaluation, and a $8 billion IMF accord in early March have mitigated that.