Zambia Sees Economic Growth Surging to Highest Since 2021
Growth will accelerate to what would be the highest since 2021, Situmbeko Musokotwane said in an interview on Monday. The economy grew by about 4% last year.
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Forbes
an hour ago
- Forbes
New Regulatory Reform Initiative Could Bolster Trade Negotiations
The Trump White House and the Justice Department announced on August 15 'an effort to identify State laws that significantly and adversely impact the national economy or interstate economic activity and to solicit solutions to address such effects.' This project complements President Trump's April 9 executive order directing the identification and elimination of anticompetitive federal regulations that distort markets and reduce economic growth. The latest initiative, boosted by new 'hot off the press' scholarly research, could lend further support to U.S. trade negotiations directed at dismantling anticompetitive market distortions (ACMDs) around the world. The ACMD Problem As the August 15 announcement explained: 'President Trump and his Administration have prioritized eliminating the 'crushing regulatory burden' that has 'made necessary goods and services scarce.' Deregulatory efforts will boost the American economy, relieve Americans of undue burdens, and make America affordable and energy dominant again. President Trump issued multiple Executive Orders to advance his deregulatory agenda and requiring the Executive Branch to put that policy into action. . . . Federal regulatory burdens are only part of the story. As President Trump has also recognized, in Executive Order 14260, State-level practices can drive up nationwide costs and undermine American safety and 'Federalism by projecting the regulatory preferences of a few States into all States.' Anecdotal evidence and the experience of countless Americans across the country strongly suggest that State laws and regulations can significantly burden commerce in other States, raising costs unnecessarily and harming markets nationwide. For example, last month, the Department sued the State of California, Governor Gavin Newsom, Attorney General Rob Bonta, and other State officials over California laws that impose costly requirements on the production of eggs and poultry products, raising prices for American consumers in and outside of California.' The August 15 announcement described a strategy to root out state regulatory excesses, centered on identifying: The announcement is a bold step forward. The Administration is now committed to undo anticompetitive market distortions (ACMDs) at both the federal and state levels. This commitment strengthens the Administration's leverage in international trade negotiations to get U.S. trading partners to scale back their regulatory distortions that harm American firms (and the trading partners' economies). This would be a 'win-win' for all nations concerned. Estimating ACMD Burdens Scholarly studies show that the costs of ACMDs are enormous, running into the thousands of dollars per American family per year. Furthermore, reducing those distortions has far-reaching global economic consequences, as the non-partisan scholarly Growth Commission's August 2025 report on ACMDs and trade explains: 'The benefits of reducing ACMDs are not marginal. Gains in GDP per capita translate into higher wages, broader market access, increased consumer choice, and fiscal space to address pressing domestic needs. For the United States, sustained growth through ACMD reduction offers the most viable strategy for reversing the rising debt-to-GDP trajectory without sacrificing public investment. For trading partners, reform unlocks latent economic energy and mitigates the political risks associated with stagnation, inequality, and capital misallocation. For developing countries, the reduction of ACMDs directly supports poverty alleviation and inclusive growth.' The Growth Commission report also lists specific major U.S. and foreign regulations having ACMD characteristics. Moreover, it develops an econometric model that provides a basis for a tariff on ACMDs based upon potential loss to economic wealth measured in GDP per capita. A more extensive analysis of ACMDs is presented in an August 2025 book by trade expert and Growth Commission Chairman Shanker Singham. 'Drawing on techniques from probabilistic methods and quantum mechanics, the book examines the possibility of a probabilistic model to assess the real impact of Anti-Competitive Market Distortions on GDP per capita growth around the world in a far more dynamic and real-time sense than has been possible thus far.' Next Steps Implementing ACMD reform will be a challenging task. ACMDs typically stem from 'rent seeking' by firms that successfully lobby government for discriminatory regulations that disfavor existing or potential competitors. The costs of ACMDs are widely spread and may not be visible to the general public. ACMD beneficiaries have every incentive to fight the dismantling of their special privileges, while broadly dispersed harmed parties (including consumers, workers, and businesses) may be hard to organize in favor of reform. The Administration, nevertheless, may act directly to eliminate certain federal and state ACMDs, by: The Administration's ultimate strategy may reflect an evaluation of relative resource constraints, likelihood of success, and timing associated with pursuing the four options. By being seen as seriously pursuing domestic reform, the Administration may be able to garner deals for the phasing out of particularly pernicious ACMDs. ACMD phase-outs might perhaps be incorporated into the language of bilateral or plurilateral agreements. The elimination of ACMDs might support mutually agreed-upon tariff reductions as well. Newly released Growth Commission research could assist in this effort. Successful ACMD reform would redound to the benefit of all trading nations.
Bloomberg
5 hours ago
- Bloomberg
Banxico Cited Weak Jobs Market, Stronger Peso in August Rate Cut
Mexico's central bank cited weak economic growth, a slack jobs market and a stronger peso in its decision to extend interest rates cuts this month. The decision to lower the policy rate by a quarter percentage point, rather than continue a string of half-point cuts, was 'consistent with the assessment of the current inflationary outlook,' the bank said in the minutes of its Aug. 7 decision published Thursday.
Yahoo
5 hours ago
- Yahoo
Thungela Resources Ltd (TNGRF) (H1 2025) Earnings Call Highlights: Navigating Challenges with ...
This article first appeared on GuruFocus. Release Date: August 18, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Thungela Resources Ltd (TNGRF) reported a strong balance sheet with a net cash position of 6.3 billion rand at the end of the reporting period. The company has operated for 2.5 years without a loss of life, highlighting its commitment to safety. Thungela Resources Ltd (TNGRF) increased production year on year in South Africa despite challenging weather conditions. The board approved a distribution of 87% of adjusted operating free cash flow, exceeding the minimum dividend policy, showcasing financial strength. Strategic projects like the Zibulo North shaft and Elders are on schedule and budget, supporting long-term sustainability. Negative Points The company faced a softer pricing environment with benchmark coal prices in South Africa and Australia declining by 9% and 22% respectively. Earnings per share decreased significantly compared to the first half of 2024, driven by weaker coal prices. The company incurred a restructuring cost of 285 million rand related to the closure of certain operations. Production at Enche was impacted by challenging geological conditions, leading to higher costs and lower volumes. The company faces ongoing geopolitical uncertainties and tariff escalations, disrupting global supply chains and demand for energy. Q & A Highlights Warning! GuruFocus has detected 6 Warning Sign with TNGRF. Is TNGRF fairly valued? Test your thesis with our free DCF calculator. Q: For Ensche, your implied second half cost is around 14,000 rand, just using the midpoint of your guidance for volume and costs. Is there any absolute cost reduction plans or programs there, or is it entirely driven by higher volumes? Also, can you remind us of the current contract structure at Ensche and your plans for next year? A: The guidance you're referring to is not 14,000 rand, but 8,400 rand. The cost reduction is primarily driven by higher volumes. We planned for lower production in H1 due to challenging geological conditions, which resulted in stockpiling some production. We expect to meet our productivity numbers in H2. The team is working on cost reduction, but the biggest impact will come from increased production volumes. Q: You mentioned that the premium or discount at Ensche will revert back to what we saw last year, around 8%. Does this imply a wider discount in the second half? A: Yes, the discount is expected to widen in the second half. We have fixed price contracts for about 500,000 tons in the second half, which may yield a small premium. However, for sales without fixed prices, discounts are expected to widen. For the full year, we anticipate a 3% discount on average, implying a 7-8% discount in the second half. Q: What is the normalized level of production and FOB cost at Ensche beyond the second half of 2025? A: We are confident that after navigating the challenging geological conditions and obtaining necessary licenses, Ensche will return to the performance levels seen last year. The team is capable of achieving this, and the current issues are temporary. Q: What foreign currency hedges do you have in place for the second half? A: We have approximately $400 million forward sold at about 1,917 rand to a dollar. If the current spot rate of 1,750 rand prevails, this could result in an additional cash tailwind of 600 million rand, bringing this year's total cash tailwind to about 1.05 billion rand. Q: Are we expecting more restructuring termination costs in the second half of 2025 and 2026? A: The 285 million rand restructuring cost recognized at the end of June 2025 is a one-off cost related to shifting critical skills from Ghudua to Elders. We do not expect this to be repeated. Future closure costs are typically provided for on our balance sheet. Q: Considering the lower quality of the stockpile coal at Ensche, how should we think about the realized price in the second half of 2025? A: The 8% discount from Newcastle benchmark includes recognition of the lower quality stockpile. The quality difference is not material, and domestic prices in Australia are close to export parity pricing, so discounts are not expected to be significantly higher. Q: What is Tungela's appetite for any further acquisitions? A: Our strategic direction remains unchanged. We continue to look for opportunities where we have a right to win, particularly in bulk commodities like coal and Medco, in regions where we operate. Any new opportunities will be communicated when appropriate. Q: Are you expecting any TFR related take or pay cash, similar to those received by peers like Kumba and Sasol? A: We renewed our long-term agreement with TFR, which includes take or pay provisions. We continue to assess TFR's performance and may pursue claims if performance improvements are not met. For the complete transcript of the earnings call, please refer to the full earnings call transcript. Sign in to access your portfolio
