The Markit Economics / Stanbic Bank Zambia headline PMI rose to 48.1 in January 2019 of 2019 from 47.8 in December 2018. The reading pointed to the sixth straight month of waning private sector activity in Zambia amid a continued lack of customers and liquidity in circulation although output and new orders shrank at weaker rates. Employment fell for the first time in eight months while higher fuel prices and currency weakness resulted in a sharp monthly increase in input costs. The rate of output price inflation moderated.. Although higher fuel prices and currency weakness resulted in a sharp monthly…
Author: The Editor
South Africa should not panic over misinformation regarding Zambia’s power utility and loans received from China, President of the Economics Association of Zambia, Lubinda Haabazoka, has said. Speaking to Fin24 on the sidelines of the 2019 Investing in African Mining Indaba at the Cape Town International Convention Centre, Haabazoka said Zambia was borrowing from China “sustainably”. Haabazoka’s remarks come following speculation in 2018 that Zambia would have to surrender its power utility, Zesco, to China over defaults on debt. In SA, meanwhile, a loan the China Development Bank granted Eskom during the BRICS summit in Johannesburg last year sparked similar…
It’s that time of the year where nations that have mining as their mainstay, traditionally meet Cape Town, one of the world’s most expensive and prestigious cities, not for holidays but to drive respective mining investment agenda’s. Cape Town (BT) – Africa’s second largest copper producer, Zambia has high powered delegations in attendance. Stanbic Bank, Zambia’s largest commercial bank by asset size being the largest lender to the mining sector, has sent a top-level delegation of executives to the Mining Indaba, in its demonstration of commitment to backing the mining sector. The delegation from the nation’s largest bank, led by Chief Executive…
Commercial bank earnings for Q4:18 nudged 29% higher to K346.3million compared to K268.1million (in Q3:18) according to an aggregation of prudential returns for all banks published in Africa’s second largest copper producer, Zambia. This defies analysts forecast of 30% decline after the unwarranted fee directive by the bank of Zambia. Non-interest income line ticked marginally higher by 2.5% to K867.56million backed by an 11% widening in interest income to K2.1billion from K1.89billion. Credit impairments narrowed 63% to K73million from K195.13million as interest expenses rose 20.3% to K598.4million from K497.24million. Performance leaders Stanbic Bank Zambia led the PAT earnings curve with…
Soccer governing body in Africa’s copper producer Zambia, Football Association of Zambia (FAZ) is in the market for US$10million through a bond sale. Association of Zambia Secretary General – Adrian Kashala confirmed this in a statement made in Lusaka the capital. Proceeds of the bond sale will be used to fund operations and support the national soccer teams at various levels. This bond issuance will be done through a special purpose vehicle (SPV). FAZ has also announced 13 April as its non elective AGM date.
Africa’s copper producer still grapples with record input inflation as causing elevated manufacturing cost curve, an autopsy of the fuel price hike; Ahead of the Market economics purchasing managers index (PMI) headline releases for January, the Business Telegraph has done a forecast of the expected readings. Africa’s second largest copper hotspot, Zambia, has for 4 months been in red territory posting headline readings below 50. This weakness in private sector activity from September to December 2018 was a reflection of elevated manufacturing cost curves as a consequence of high fuel prices. Effects of crude price bulls on manufacturing cost curve…
A 200million MT ore body was recently discovered which the mine will tap into to propel Zambia closer to the 1-million MT annually; The mine projects to boost annual production to between 100,000 – 150,000MT in 5 years time; Australia’s EMR Capital owned Lubambe Copper Mine, has pledged a US$500million construction capital injection next year which will allow the underground operation access 7-million metric tons of red metal. This was revealed by Lumambe mine Chief Executive Officer – Nick Bowen when he paid a courtesy call visit on the Republican President His Excellency Mr. Edgar Lungu on 01 February. The…
Barely 2 days to the largest mining indaba in Cape Town, Mines Minister in Africa’s second largest copper producer Zambia announced a decision the Board of ZCCM-IH has taken to terminate its CEO Dr. Pius Kasolo’s contract. This was contained in a media briefing statement by Mines Minister Richard Musukwa on 01 February. The decision the state mining investment vehicle ZCCM-IH comes a day after Kasolo issued a controversial statement on the newly proposed mining tax regime, citing the negative impact it will have on mining firms profitability. Kasolo was quoted saying the new tax regime would impact dividends on…
Bank reaffirms its commitment to supporting Zambia’s economic growth in energy, infrastructure and mining Zambia’s largest financial institutions by asset size, Stanbic Bank, grew its balance sheet by over K2.3billion (about USD252million) through credit extension to key sectors that drive the copper producers gross domestic product growth. The bank has continued to outpace the commercial banking sector’s average performance, reinforcing its commitment to funding economic growth. Stanbic through its corporate and investment division funded more than US$252million of key debt and advisory led transactions in Zambia last year, Chief Executive Leina Gabaraane said. The bank funded mining with US$101million, public…
Offshore players look to higher yielding assets at spreads above NDFs;Yields were unchanged save the 1-year that rallied 50bps;Appetite totalled K1.73billion with 84% in 9m to 1yr paper; Offshore players are becoming more and more attracted to Kwacha government assets given currency stability and high yields in the the 9-month and 1-year tenors paying 23.0001% – 23.5%. Africa’s second largest copper producer, Zambia recorded a healthy demand for its short dated assets in a treasury auction held on 31 Jan. The Bank of Zambia (BOZ) sold K1.14billion worth of 3-month to 1-year debt in a 120% oversubscribed sale. On offer…