AFREXIMBANK INCLUDED IN SEM-10 INDEX IN MAURITIUS

 The Stock Exchange of Mauritius (SEM) has announced the inclusion of the African Export-Import Bank (Afreximbank) in the SEM-10 index.

An announcement posted on the SEM website on Wednesday listed Afreximbank among the SEM-10 Constituents for the third quarter starting 3 July 2019. Other companies on the list are: MCB Group Limited; IBL Ltd; SBM Holdings Ltd; Grit Real Estate Income Group Limited; ENL Limited (Ordinary A Shares); CIEL Limited; New Mauritius Hotels Limited; Rogers & Company Limited; and Lux Island Resorts Ltd.

The index tracks the performance of the 10 largest stocks on the SEM in terms of market capitalization and the 10 most liquid stocks in terms of average value traded and trading frequency during the preceding three months.

Being part of the SEM-10 index is expected to enhance Afreximbank’s visibility with local and international investors and, potentially, encourage institutional investors that track the index to include the Bank’s Depositary Receipts in their investment portfolios.

Ninety per cent of foreign investors’ transactions on SEM-listed stocks are targeted towards companies that are included in the SEM-10 index. Moreover, some of the larger companies in the index are tracked closely by global data vendors like Bloomberg, Factset and Refinitiv, as well as by global Index providers, such as S&P, Dow Jones, MSCI and FTSE.

The SEM-10 Index is subject to quarterly reviews and to remain in the index, companies need to ensure regular trading of their securities.

Afreximbank currently ranks as the SEM’s third best performing stock on a year-to-date basis in 2019, with a performance of 26.5 per cent.

FQM HIGHLIGHTS IMPORTANCE OF COMPETITIVE TAX REGIME

Mining firm believes Zambia’s tax regime increases the cost of operating and challenges the economic viability of existing mine operations

First Quantum Minerals says Zambia must implement a competitive and stable tax regime in order to attract new foreign investors and promote existing investments in the mining sector.

First Quantum Minerals Head of Government Affairs John Gladston says Zambia’s current mining tax regime poses a range of difficulties to the sector making it unattractive to potential investors when put alongside other copper mining countries.

FQM Mine site

He says government and the private sector should seek to create a framework in which a modern, progressive, developing commodity-based economy can be built; a scenario where investors vie to invest in Zambia.

Mr Gladston was speaking during a panel discussion on “establishing mutually beneficial fiscal regimes” at the 9th Zambia International Mining and Energy Conference and Exhibition (ZIMEC) in Lusaka.

This year’s conference was held under the theme “Creating an attractive investment framework to catalyse Zambia’s mining and energy sectors”.

MINING GIANT IRST QUANTUM MINERAL SUSPENDS $700K WATER PROJECT DUE TO COMMUNITY SNUB

First Quantum Minerals (FQM) has suspended plans for part of a US$700,000 community water project following attempts by community leaders to blame the mine for naturally occurring water quality issues.

The dispute between the company’s Trident Foundation and the local people highlights the wider issue of the extent to which the private sector should be obligated to conduct community development projects that are the responsibility of national and local government.

Naturally occurring iron in the geological structure of the area has been a visible challenge in water in these community boreholes for over 2-decades, long before mining activities commenced in the area.

This is a well-known challenge in areas with similar soils in Zambia, in particular, large parts of North-Western and Northern Provinces. Scientific analysis of the water confirmed the natural occurring iron, which causes water discolouration and a metallic taste.

The iron occurs in most of the local soils and is not as a result of mining activities. This is backed up by the extensive long-term groundwater monitored programmes initiated by the company before operations began.

 “First Quantum strives to do the right thing and support the communities that are our neighbours. This goes far beyond our legal obligations, but we are happy to provide this social investment on a goodwill basis,” said FQM Country Manager, General Kingsley Chinkuli.

“However, on this occasion, the prolonged attack on our work has gone too far. It is misguided, unfair, and damages our reputation as a good corporate citizen. On this basis, we have suspended investment in a water project until such time as we have the full support of all in the community. We will, however, continue with a component of the project, but only in directly affected communities of the project. We are currently reviewing our community development approach to avoid such unfair accusations in future for projects that are well-intended. Through its Trident Foundation, the company budgeted to invest ~US$700,000 in an initiative to upgrade community water systems in Kalumbila District in work being co-ordinated in consultation with Senior Chief Musele, a development taskforce and a sub-committee specifically set up to recommend improvements to water access.

“First Quantum Minerals has a clear policy of supporting the communities surrounding its mines. It allocates millions of dollars every year to help ensure people have the basic needs and tools with which they can build sustainable livelihoods for themselves,” said General Chinkuli.

The initial plans to upgrade water facilities were the foundation’s humanitarian response to recent concerns by the community about naturally occurring water quality issues and flooding.

Earlier in the year, the company came to the aid of people in Musele and Kawelanga village after a flooded graveyard threatened the community’s water supply.

The mining firm believes access to safe, clean water is the number one priority for community development. Water is a basic human need, and should always be prioritised over other forms of development work.

PROFLIGHT EXPANDS FLEET WITH A NEW 50-SEAT AIRCRAFT.

Proflight Zambia has expanded its fleet with the purchase of a 50-seat Dash 8-300 turbo aircraft, as part of its continuing drive to build market share in the regional aviation sector.

The Zambian owned and operate airline expects to take delivery of the aircraft in Zambia in the next few months following delivery from Canada, which is the headquarters of the aircraft manufacturer, Bombardier Aerospace.

The purchase means Proflight joins the league of top-tier regional airlines operating the Dash 8, including Ethiopian Airlines, QantasLink, Flybe, SA Express and Cemair in South Africa.

The investment is the latest step in Proflight’s strategy of buying bigger planes that can accommodate more passengers, realising economies of scale and enabling it to operate more efficiently.

It currently operates a 50-seater Bombardier CRJ-100 jet, three 29-seater Jetstream 41 aircraft and two C208 Caravans, all of which are Zambian registered with the Zambia Civil Aviation Authority (ZCAA).

“The new Dash 8-300 aircraft will increase Proflight’s capacity and enable us to expand our network of destinations throughout the southern African market, explained Proflight Director of Flight Operations Capt. Gerald Tembo.

Proflight boosting its fleet with the Dash 8 increases the opportunities for the airline to open more destinations, both domestically and internationally, adding to its three existing regional routes, from Lusaka to Durban, Harare and Lilongwe.

The new aircraft will also free up the productive time of Proflight’s 50-seater CRJ 100 Jet aircraft, which will also allow the airline to look at more new routes domestically and regionally.

A Qantas Dash 8 aircraft similar to that being
introduced by Proflight Zambia. Credit Ryan Fletcher 

Flights to Johannesburg, Gabon, Entebbe and Dar-es-Salaam are all being evaluated by the airline, which celebrates 27 years of operation this year.

The Dash 8 type covers a family of twin turbo prop aircraft, ranging from 37 seats to 78 seats. Proflight’s new Dash 8 is a 50-passenger seat aircraft.

The interior of the Dash 8 is very similar to that of Proflight’s existing 50-seat CRJ 100 jet, which is also used on its Ndola and Livingstone services.

Zambia has a long history of using Canadian aircraft. The airline’s CRJ plane is also manufactured by Bombardier in Canada.

NISSAN TO UNVEIL NEW NISSAN X-TRAIL ON THE ZAMBIAN MARKET.

 NISSAN GROUP is today March 22, 2018 set to unveil a new Nissan X-Trail brand on the Zambian market.

The company says the new Nissan X-Trail is a perfect example of Nissan’s approach to developing crossover vehicles with exceptional qualities.

The company says the new brand will give customers space to broaden their horizons with the peace of mind that comes with new innovative features to keep them and their family safe.

The new Nissan X-Trail is a luxurious, state-of-the-art crossover with top-quality engineering and latest technology.

Meanwhile NISSAN GROUP AFRICA says the automotive industry has potential for growth as demand for vehicles is set to rise in coming years on the African continent.

Nissan Group of Africa says it is for this reason it is expanding its operations on the continent and continues its ongoing investments with the opening of its third showroom in Zambia.

“With a great deal of help from Tim Jaques, the Managing Director of our partner, MOTUS Africa, Nissan is reinforcing its strategy of leading the way into high-potential growth markets with the opening of a new showroom in Zambia,” said Liz Segal, Nissan Group of Africa General Manager of Sub-Saharan Africa Sales.

“Among the 54 countries in Africa, 18 have a higher GDP per capita than India, at $1,500 and eight more African countries have a GDP per capita of more than $1,000. Among the top 20 countries that are forecast to have the highest GDP growth rate in the world this year, 10 are in Africa,” said Segal.

African markets are among the 160 countries worldwide where Nissan offers products and services. The company also has manufacturing facilities in 20 countries, including two in Sub-Saharan Africa – South Africa and Nigeria.

“The most important thing to understand about Africa is that it’s not one country. Every country on this continent is unique and operates in a distinct fashion, and one needs to adapt to each country’s specific way of doing business. That’s why Nissan takes pride in this expansion in Zambia because it’s the result of our deep understanding of each of the markets we operate in,” said Segal.

 “We are in partnership with Nissan in Zambia, Malawi, Tanzania and Kenya because we believe in the growth potential of the African automotive sector. We would like to see all Africans having access to respected vehicle brands such as Nissan and we’re constantly working on creating new avenues of access,” said Jaques.

ZAMBIA REVISES 2018 COPPER FORECAST BY 17.2% TO 1MILLION METRIC TONS

Africa’s second largest copper producer Zambia has revised its 2018 copper target to 1million metric tons representing a 17.2% increase from 2017 levels.

The Ministry of mines has based its revised projections on current and forecasted improved power generation capacity and motivation fueled by a higher copper price on the London Metal Exchange.

Zambia produced 14.3% more copper in 2017 to 853,789 metric tons exceeding the expected 850,000 metric tons.

Zambia rally’s behind DRC which is Africa’s number one having produced 6.06% higher output to 1.09million metric tons in 2017.

DRC expected to produce higher volumes after discovery of a massive deposits in the Kakula Kamoa area operated by Ivanhoe mines owned by Friedman.

Ministry of Mines permanent secretary Paul Chanda is optimistic that the rising demand of electric cars whose major ingredient is copper coming on the market, demand for the metal is expected to remain high.

He further said this was a major big incentive for mining companies to increase the production of the commodity.

Chanda said projects such as a new shaft by Mopani Copper Mines (MCM) owned by Glencore and an expansion project by China Non-Ferrous Africa Mining (NFCA) would start production this year and further boost copper output in 2018 and beyond.

Global demand is expected to rise global copper production will spike over the next decade as rising prices and increasing demand from the electric vehicles sector encourage project development, a new reports shows.

Output for the red metal worldwide will grow an average annual rate of 3.6% over 2018 – 2027 thanks to a number of major projects come online, particularly in Peru and Australia.

As a result, it is anticipated that global copper output will climb from 20.4 million tonnes this year to 28 million tonnes by 2027.

Exavators working at Kasanshi mine.

Other mining companies operating in Zambia include Canada’s First Quantum Minerals, Barrick Gold Corp and London-listed Vedanta Resources.

Copper is trading for USD6, 755 metric ton on the London Metal Exchange a 1.44% decline ahead of the US Fed meeting.

GOOD MINING FIRM SAYS IT IS NOT ONLY ABOUT PROFITS BUT THE PEOPLE ALSO

Randgold Resources Chief Executive Officer Mark Bristow has tipped African governments to seek an equitable share in mining projects.

Mr. Bristow says the equitable rate should be around a 50:50 basis of mining revenues after the recouping of the capital cost of building the mine.

Randgold is a mining giant operating five gold mines in three African countries – Mali, Côte d’Ivoire (Ivory Coast) and the Democratic Republic of Congo.

Mr. Bristow says a successful mining industry needs a committed partnership that recognizes the realities of mining. 

Mr. Bristow says a country’s mineral resources are the property of the people, with the government acting as their stewards.

He was speaking at a two-day mining Indaba held in Johannesburg last week.

He says most African countries were endowed with great mineral resources, but that this was no guarantee of wealth creation that benefits all.

He cited the Democratic Republic of Congo and Venezuela as examples of resource-rich countries the former in minerals, the latter in oil – where people were poor and had not benefited from the resource wealth.

This is according to article published on the Mining for Zambia website today.