In a closely watched bond auction on Valentine’s Day Friday 14 February , the Bank of Zambia (BOZ) absorbed K1.8 billion from a total bid volume of K3.5 billion in fixed income assets, fully covering the amount on offer. Investor demand edged higher than the K2.6 billion seen in January, reflecting sustained interest in Kwacha-denominated debt. The auction saw strong participation across the curve, with the three-year tenor attracting the highest demand at K815.1 million. The seven- and five-year notes followed closely, securing K691.8 million and K690.4 million, respectively. Yields declined across the fixed-income spectrum, with the most pronounced drop…
Author: The Editor
As Africa’s second-largest copper producer, Zambia faces mounting pressure from sharp currency depreciation, driven by surging demand for U.S. dollars to finance energy imports, manufacturing equipment, and other critical sectors. The widening foreign exchange imbalance is intensifying pressure on the Kwacha, raising concerns over macroeconomic stability. However, for diaspora investors, this depreciation presents a compelling arbitrage opportunity in Zambia’s real estate market, high-yielding local bonds and many other opportunities. A weaker Kwacha enhances the purchasing power of foreign currency earners, making domestic assets increasingly attractive. According to the latest data from the Bank of Zambia, net remittances soared 84.8% in…
As Africa’s second-largest copper producer, Zambia faces mounting pressure from sharp currency depreciation, driven by surging demand for U.S. dollars to finance energy imports, manufacturing equipment, and other critical sectors. The widening foreign exchange imbalance is intensifying pressure on the Kwacha, raising concerns over macroeconomic stability. However, for diaspora investors, this depreciation presents a compelling arbitrage opportunity in Zambia’s real estate market and high-yielding local bonds. A weaker Kwacha enhances the purchasing power of foreign currency earners, making domestic assets increasingly attractive. According to the latest data from the Bank of Zambia, net remittances soared 84.8% in 2024 to a…
For the third consecutive year, mobile money remained Zambia’s leading retail payment platform in 2024. However, point-of-sale (POS) transactions saw the fastest growth, outpacing electronic funds transfers (EFTs). According to the Bank of Zambia’s latest payment statistics, mobile money transactions totalled K486.3 billion, reflecting an 8% year-on-year increase. Meanwhile, POS payments surged 30% to K185 billion, surpassing EFTs at K160.76 billion, which registered a 12% growth from the previous year. Read Also: Zambia’s Mobile Money Payments crossed K450 billion in FY23 Affirming Agency Model and Digital Transformation This shift underscores Zambians’ accelerating adoption of digital payments. Automated Teller Machine (ATM)…
Zambia’s central bank has raised its policy rate by 50 basis points to 14.5% in its first monetary policy decision of 2025, citing intensifying inflationary pressures stemming from kwacha depreciation. Speaking in the Bank of Zambia (BOZ) auditorium, Governor Dr. Denny Kalyalya attributed the inflation surge to sustained currency weakness, which has pushed inflation further from the 6 – 8% target band, now projected at 14.6% for 2025up from the prior forecast of 13.9%. Kalyalya noted that despite better precipitation so far this year, residual drought effects continue to exacerbate electricity deficits, while inflation expectations remain elevated, fueling speculative behavior…
Zambia’s central bank is set to announce its first policy rate decision of 2025 on February 12, with Governor Dr. Denny Kalyalya facing mounting inflationary pressures fueled by lingering drought effects and persistent power deficits. Inflation accelerated to 16.7% in January, up from 15.7% in October 2024, as energy shortages and rising costs continue to weigh on the economy. While Zambia is emerging from a severe drought that curtailed power generation and led to rationing periods of just 3-5 hours per day, business activity has shown resilience. The Purchasing Managers Index (PMI) rose to 50.9 in January, marking the first…
Zambia’s central bank is set to announce its first policy rate decision of 2025 on February 12, with Governor Dr. Denny Kalyalya facing mounting inflationary pressures fueled by lingering drought effects and persistent power deficits. Inflation accelerated to 16.7% in January, up from 15.7% in October 2024, as energy shortages and rising costs continue to weigh on the economy. While Zambia is emerging from a severe drought that curtailed power generation and led to rationing periods of just 3-5 hours per day, business activity has shown resilience. The Purchasing Managers Index (PMI) rose to 50.9 in January, marking the first…
Africa’s second-largest copper producer, Zambia, faced a dual economic test in 2024: a mining sector grappling with post-litigation recoveries, operational inefficiencies as ore bodies declined, inconsistent exploration efforts, and an energy crisis exacerbated by severe drought and decades of underinvestment in power infrastructure. While the Democratic Republic of Congo (DRC) surged past 2.5 million metric tons of copper production annually buoyed by global decarbonization efforts. Zambia remained stagnant in the 800,000 metric-ton range, widening the gap between the two nations. Contributing factors included past policy uncertainty, an unpredictable tax regime, and a 1,300 MW power shortfall that sent business sentiment…
As Africa’s second-largest copper producer, Zambia is positioning itself for a major expansion in its mining sector, targeting an ambitious 3 million metric tons of annual output by 2031. In 2024, production rose 12% to 820,768 metric tons, buoyed by the revival of mines that had previously been stalled by legal disputes. At the 2022 Mining Indaba, soon after a change in government, President Hakainde Hichilema made sweeping commitments to overhaul the sector, propelling Zambia to the forefront of mining reform efforts. At the time, Konkola Copper Mines remained largely inoperative, and Mopani Copper Mines, reeling from Glencore’s exit, was…
Africa’s second largest copper producer Zambia, has revealed an K11.8 billion (approximately $445 million) allocation as the impacts of drought intensify. Zambia’s Finance Minister, Dr. Situmbeko Musokotwane, plans to allocate 53% of the budget to cover the costs associated with domestic debt service. Meanwhile, 42% of the budget will be directed towards loans and investments aimed at addressing outstanding bills and facilitating debt swaps for state-owned enterprises Zamtel and Ndola Energy. The final 5% allocation comprises 2.4% designated for foreign affairs overseas allowances, 1.4% earmarked for digital acceleration initiatives under the Smart Zambia Institute, and 1.2% directed towards the funding…