Zambia urges carmakers to build parts locally, ship to SA
Zambia has held talks with carmakers to entice suppliers to build electric-vehicle components plants near its copper mines.
'We have been talking, even last week when I was in Germany, telling these companies to please consider the manufacture of some of your electric-vehicle components in Zambia,' Finance Minister Situmbeko Musokotwane said in Livingstone on Monday. 'Those components can then be shipped to your factories in South Africa, which now exports to the rest of the world. That is a powerful way of value addition.'
Zambia is Africa's second-biggest producer of copper, a key component in EV engines.
The government plans to continue pursuing prudent fiscal policies, even if it doesn't start a new International Monetary Fund programme when the current one ends in October, he said. The cabinet had yet to decide whether to seek another loan.
Musokotwane criticised the abrupt cancellation of some aid programs to Zambia and Africa in general by the US, while acknowledging the assistance was always expected to decline.
The minister was speaking at Bloomberg's annual Africa Business Media Innovators conference.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Bloomberg
22 minutes ago
- Bloomberg
Funds Pile Into Southeast Asian Bonds Despite Record Low Yields
Investors are making a beeline for Southeast Asian sovereign bonds despite their record low yields amid a shift away from US assets and on bets for further interest-rate cuts in the region. The average of 10-year yields in Southeast Asian nations relative to US Treasuries has dropped to the lowest in data going back to 2011, according to Bloomberg calculations. The region's bonds are benefiting from investors seeking alternatives to US assets as part of the ' sell America ' trade fueled by unease over President Donald Trump's policies.
Miami Herald
an hour ago
- Miami Herald
Stocks sputter after surprising inflation, China trade news
The stock market needs a new catalyst. Until now, the S&P 500's rally since early April was built on the potential for sellers to be caught off guard by surprising trade deals. Since the benchmark index has rallied 21% after Trump paused reciprocal tariffs on April 9, fewer investors will likely be surprised by developments, and many may be disappointed with outcomes. The possibility that tariff deals may be baked into stock prices appeared when a softer-than-expected May inflation report, alongside what should've been positive China trade news, fell flat. The S&P 500 posted early gains on the news, but reversed to close lower by the end of trading. Related: CPI inflation report resets interest rate cut bets The culprit? While CPI showed inflation was relatively tame last month, most still believe tariffs will cause inflation to reassert itself later this year. Advancing China and the U.S. negotiations are encouraging, but President Trump's comments regarding China tariffs are disheartening. The "meh" reaction to the inflation and China trade news caught the attention of veteran hedge fund manager Doug Kass. Kass has been tracking the markets professionally since the 1970s, and he's the former research director for Leon Cooperman's Omega Advisors, one of the most famous hedge funds in history. After witnessing today's reaction to the news, Kass offered up a frank opinion that may frustrate some investors. Image source: Goodney/Bloomberg via Getty Images The Federal Reserve's mission is to balance inflation and unemployment. It does this by adjusting the Fed Funds Rate. When it increases rates, economic activity slows, crimping inflation but increasing unemployment. When it lowers rates, GDP expands, lowering unemployment but increasing inflation. The dual mandate means that the Fed is in a pickle this year. After the most hawkish monetary policy since the 1980s caused inflation to drop below 3% from over 8% in 2022, the Fed switched gears, cutting rates in September, November, and December to lower unemployment, which has risen to 4.2% from 3.4% in 2023. Related: Billionaire fund manager sends strong message on Fed Chair Powell's future Hopes were for more cuts in 2025, but Fed Chair Powell was forced to pause additional reductions amid sticky inflation and the threat of tariffs driving prices higher. As a result, many Wall Street economists have gone from expecting many cuts this year to none. The CPI report showed that inflation in May only inched up 0.1% month over month, less than the 0.2% predicted. However, headline CPI showed inflation of 2.4% year over year last month, up from 2.3% in April. Meanwhile, core CPI, excluding volatile energy and food prices, was up 2.8% in May, matching April. That's undoubtedly not barn-burning progress. Nevertheless, some latched onto the lower-than-expected increase as evidence that the tariff impact on inflation is overblown, helping stocks in early action. Also contributing to optimism was news out of London that a meeting between Chinese and U.S. officials, including Treasury Secretary Scott Bessent, had led to progress in uncorking supplies of rare earth minerals necessary for EVs and other next-gen technology. President Trump heralded the deal, saying, "OUR DEAL WITH CHINA IS DONE, SUBJECT TO FINAL APPROVAL WITH PRESIDENT XI AND ME. FULL MAGNETS, AND ANY NECESSARY RARE EARTHS, WILL BE SUPPLIED, UP FRONT, BY CHINA. LIKEWISE, WE WILL PROVIDE TO CHINA WHAT WAS AGREED TO, INCLUDING CHINESE STUDENTS USING OUR COLLEGES AND UNIVERSITIES." More Economic Analysis: Hedge-fund manager sees U.S. becoming GreeceA critical industry is slamming the economyReports may show whether the economy is toughing out the tariffs However, details were scant, and Trump threw some cold water onto hopes that a trade deal would ease tariffs on Chinese goods, which already currently stand near 55% all-in. "WE ARE GETTING A TOTAL OF 55% TARIFFS, CHINA IS GETTING 10%," he said on Truth Social. Doug Kass has seen more than his share of good and bad tapes. He's survived the 1970s inflation, 1980s skyrocketing interest rates, the S&L crisis, Internet boom and bust, the Great Recession, Covid, and 2022's bear market. Related: Fed official revamps interest-rate cut forecast for rest of this year His experience led to him correctly predicting this year's steep sell-off and his accurate bet that stocks would bounce in early April after the drop. He isn't convinced that the latest inflation progress is bullish for the S&P 500. "The market has likely already discounted a better than expected Core CPI," wrote Kass on TheStreet Pro. "Market participants may interpret this number as being less exciting for equities because companies/manufacturers are likely eating the higher costs/tariffs, leading to concerns about lower margins and profits over the balance of the year." Kass says that "swings in the trade balance" show importers stockpiled inventory ahead of Trump's April 2 "Liberation Day" tariff announcements. As a result, May data still reflects inventory brought in before tariffs hit. "When that inventory runs out, they will likely have to put through price hikes and inflation will heat up," said Kass. Kass is similarly unimpressed by the outcome of the China meeting. "The China/U.S. tariff meeting ended up being a complete non-event (with no evidence of lowering tariffs)," wrote Kass. Absent tariff relief, companies absorbing at least some additional costs will see earnings come under pressure. And since earnings growth is a cornerstone of stock prices and tariffs don't seem destined to retreat further anytime soon, there may be little impetus to support a rip-roaring rally. Related: Veteran fund manager revamps stock market forecast The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
CBS News
an hour ago
- CBS News
Minnesota Legislature approves increased electric vehicle fee to shore up funding for roads and bridges
Electric vehicle owners aren't paying at the gas pump, but they'll soon see higher fees in Minnesota, thanks to a new law doubling the surcharge for those cars to shore up funding for roads and bridges. The current $75 annual fee will double to at least $150. How much someone pays could be steeper if they have a more expensive, newer vehicle, similar to how the state calculates registration fees, which EV owners must still pay. For example, a new EV with a $50,000 retail price would mean a $250 fee based on that calculation, which is more than three times the current rate. The provision was part of a bipartisan transportation package that the divided Legislature approved during Monday's special session and the objective was to find a sustainable path forward for transportation at a time when gas tax revenue — a large source of that support — is declining, according to the Minnesota Department of Transportation. More electric vehicles on the road, which is the state's goal, will mean even fewer dollars flowing into that account in the future. "There's kind of an irony where we want more fuel-efficient vehicles, but that decreases the amount of money that's going into our roads and bridges to maintain them," said Rep. Jon Koznick, R-Lakeville, the Republican co-chair of the House Transportation Committee. "We have about a billion dollars a year funding gap just to maintain our roads and bridges. And so that's why electric vehicles were getting a really good deal before — they're still going to get a pretty good deal." Koznick explained he would have preferred to make the fee flat across the board and not use the formula that would increase the costs for newer vehicles, which he called "convoluted." But it was part of a compromise with Democrats in a divided Capitol, where bipartisan support was required to advance any legislation. EV owners should be paying higher fees because those cars are heavier and do more damage to the roads, he said. The new surcharge takes effect for car registrations after Jan. 1. There is also a new five-cent fee per kilowatt hour of electricity at public charging stations set to take effect in July 2027, at which point the annual surcharge minimum would drop from $150 to $100. Meanwhile, EV advocates are worried increased fees will make consumers pump the brakes on buying one when it's better for the environment. "We do have concerns that we could be discouraging adoption at this point, at a time when the state has said it really wants to support electrification and get more EVs on the roads," said Carolyn Berninger with Drive Electric Minnesota Coalition in a March interview. Only 1% of cars in Minnesota are electric today, Berninger said, but sales are increasing. Seven percent of cars purchased in 2023 were electric, according to the Minnesota Department of Commerce. The state's goal is that 20% of all cars are electric by 2030. "We feel like now is not the time to hike up EV fees because the market is still emerging," Berninger said. Pat O'Brien of St. Paul told WCCO Wednesday that he loves his electric vehicle that he's had for the last few years. He estimates he has saved thousands in that time by not having to pay for gas. He said he isn't quite sure how he feels about the changes. "I understand the reasoning behind why there should be a surcharge, but I'm not sure about this extra—this is news to me that there's yet two more charges," he said.
