The energy regulator in Africa’s red metal hotspot Zambia has approved the power utility’s application to increase electricity tariffs. This is contained in a press statement issued on April 21 by the Energy Regulation Board (ERB) after a review of the state owned utility ZESCO Ltd.’s performance between 2018 to 2022. The power generator had in January 2023 applied to revise its tarriffs by an average of 37%, 9%, 15%, 10% and 14% for the years 2023, 2024, 2025, 2026 and 2027 respectively. Grappling with negative jaws for which two cost of service studies were conducted, with the last being…
Author: The Editor
The recently held International Monetary Fund and World Bank Spring meetings rekindled debt restructure hopes for Africa’s second largest copper producer Zambia. This was after it was established that China, a key creditor has eased its stance on debt renegotiations which will allow for multilateral development banks to be exempt from taking haircut losses earlier proposed. For nations like Zambia deep in the labyrinth of debt restructure, this was reprieve and a fuel of hope for the long awaited breakthrough towards fiscal recovery. Expectations from various stakeholders the largest being the World Bank, were that creditor assurances would come in…
In the week beginning April 16, the Kwacha has extended its sprint with a 3.9% rally. This winning streak, claws back part of the earlier 122 days losses from market fatigue in the wake of a delayed debt restructure. Ahead of a creditors meeting on Tuesday April 17, the copper currency traded bullishly as corporates continued to offload Dollar holdings, a behavioral move that continues to give the Kwacha a positive cue. READ ALSO: Kwacha Levitates Ahead of Debt Restructure, Wall Street Sees Zambia as ‘Favorite Frontier Pick’ During the IMF and World Bank Spring sessions in Washington, it was…
Hamstrung by debt, the world has relentlessly sought ways of solutioning for this burden, a path that has not been as seamless. It is vivid that the once lucrative Eurobond market that channeled capital to frontier markets while the Chinese also funded infrastructure projects as part of their belt and road agenda globally, was the major conduit for debt build up. Exacerbating this burden was a pandemic that shifted focus to health care for the sake of humanity at a very difficult time. Labor as a factor of production was at risk of extinction a problem that needed excessive funding…
The currency in Africa’s second largest copper producer Zambia is telling the market something about positive signs of a likely debt restructure. The ongoing International Monetary Fund and World Bank spring sessions have reverberated hope around a breakthrough for the Southern African nation that has been in the labyrinth of a debt reorganization but delayed by Chinese demands requiring multilateral development banks to have a fair share of haircuts. The Kwacha was reported to have erased its post August 2021 gains after change of regime that saw the ascension to power of Hakainde Hichilema. With delays in the creditors and…
There could be no better time that when US Vice President Kamala Harris courted Zambia to clarify assertions around the copper producer being a geopolitical turf for the top two largest economies globally. Head of State in Africa’s second largest hotspot Zambia Hakainde Hichilema clarified the controversy surrounding China’s influence over Africa when he hosted the US VP at state house. “We are here to foster US- Zambia relations but there’s a context that the relationship exists in an operating environment where other countries also exist,” Hichilema said. The contextualization that if US-Zambia share strong bilateral relationships, then they are…
Africa’s second largest copper hotspot, Zambia has been dubbed a an opportunity train that American investors need to jump on now before it is too late. Speaking at business lunch themed Zambia’s Economic Revitalisation and Investment graced by President Hakainde Hichilema that hosted a US delegation who were part of the U.S. Vice Presidents African continental tour, PricewaterhouseCoopers Senior Partner Andrew Chibuye likened Zambia to an undervalued stock on Wall Street. Hamstrung by debt, the Southern African nation is in the labyrinth of a restructure that has delayed and left markets volatile. “Most macroeconomic variables are volatile as seen by…
Global banking failures were last heard of in 2008 with the last being Washington Mutual Bank’s collapse during the financial crisis. The recent Silicon Valley Bank (SVB) crash has caused shivers in the financial system with banking stocks in connected markets tumbling significantly as investors fret. Many even think the Lehman Brothers is back to haunt the global financial system after news that SVB’s Executives sold shares just before the collapse, that the Bank did not have a Chief Risk Officer for 8 months and also that the Banks Chief Administrative Officer (CAO) was once Chief Finance Officer at Lehman…
On 08 March 2023, the United Nations and its allies celebrated International Women’s Day under the theme “DigitALL: Innovation and technology for gender equality.” The world has seen immense propensity for gender diversity and inclusion and one faculty this is very evident, is in the labor markets which are key determinants for productivity and economic growth. Despite a male dominated world, the advent of women taking up top jobs is rising fast with good examples such as the European Central Bank led by Christines Lagarde and the United States Treasury Secretary (Former US Federal Reserve Chief) led by Janet Yellen.…
As the Kwacha extends its slide, petroleum prices have continued to take a negative cue. Zambia is bearing the brunt of of rising crude prices and a weakening currency in the wake of geopolitical tension and ambiguities in its debt restructure process respectively. Zambia’s energy regulator hiked fuel prices an average of 11.0% in the month of February forcing an uptick in transport costs that pushed non food component of the consumer price index higher. According to the Zambia Statistics Agency, February inflation accelerated 0.2% to 9.6% weighed by rising energy costs. The central bank in its first monetary policy…