Mines Minister in Africa’s second largest copper producer, Zambia, said the state will not be arm twisted by using workers as sacrificial lambs in the mining tax saga. The Honourable Minister Richard Musukwa assured the nation that jobs will be preserved. This was established in a morning interview on Kwacha Good morning Zambia program on 22 Dec. Zambia’s MinFin proposed an increase in the 2019 mining taxes by 1.5% for mineral royalty across the spectrum with a 10% tax if the price of copper exceeds $7,500/mt. The MinFin also proposed a shift to sales tax from a value added tax…
Author: The Editor
Economic think tank in Africa’s second largest copper producer, Zambia has lauded the festivity spend cut directive by Secretary to the Treasury Dr. Roland Msiska. Dr. Msiska directed all Permanent Secretaries to refrain from funding Christmas parties using public funds. In a press release from the Economic Association of Zambia secretariat, National Secretary – Mutisunge Zulu commenting on behalf of the board backed the stance citing alignment with the MinFin austerity posture committed to by the Minister Honorable Margaret Mwanakatwe in her 2018 mid – year fiscal performance review. The press release recognizes some of the austerity measures that the…
The central bank in Africa’s copper producer, Zambia, on 20 Dec sold K1.14billion worth of treasury bills in a 120% oversubscribed auction. On offer was K950million, and given market liquidity of K1.44billion (as measured by aggregate interbank current account balance), K1.35billion (nominal terms) was absorbed representing a 1.36 bid cover ratio. This auction is the 5th fully subscribed auction of all 26 offering in 2018. Read also: Liquidity markets flush enough to absorb Thursdays kwacha treasury bill auction Last Fridays 14 Dec bond sale was poorly subscribed as market players reserved liquidity for the last treasury bill auction of the…
With market liquidity of K1.48 billion as measured by inter-bank aggregate current account balance, Zambia’s central bank (BOZ) will offer K950 million in treasury bills on Thursday 19 Dec. across the curve spectrum. It expected that this auction will be a fully subscribed sale given the current attractive short term government debt pricing. A 280 bps spread above last week’s 5 yr. bond offering is the current price of the 1 yr. paper which made players reserve liquidity for this last offering of 2018. Last Friday recorded the poorest outcome for the year with anemic appetite account for only 15%…
Dr Odongo Kodongo’s December 7 article on One Belt One Road and its developmental effects on Africa is an informative piece that highlights many of the challenges faced by African states as they engage with China. Kodongo argues rightfully that Chinese engagement is largely responsive to domestic economic imperatives, including the need to find productive investments for foreign exchange reserves, and offload excess material capacity. Moreover, he correctly states that the Chinese government has historically had few qualms striking deals with authoritarian states and that Chinese loan contracts generally require that a high percentage of inputs and material are imported from China.…
The Kagem probe is one part of a wider effort by the government to track down billions it is suspected of losing to foreign miners Gemfields subsidiary Kagem, the world’s largest emerald mine, has been cleared of any wrongdoing by the Zambia Revenue Authority following a probe into alleged tax evasion. JSE-listed Gemfields, a world-leading producer of coloured gemstones and owner of the Fabergé jewellery brand, announced on Tuesday that the country’s tax authority’s four-month long investigation had found no wrongdoing by Zambian-based Kagem, which produces a quarter of emeralds globally. The investigation began on August 16 when the tax authority served two…
General Sales Tax on 1st April, which is likely to increase our costs by at least 20% on procured items FQM hopes that in the future the tax regime will be adjusted to consider investors ROIs Canadian First Quantum Mining – FQM Zambia subsidiary Sentinel mine has announced a throughput productivity reduction following higher proposed tax costs for 2019 by the Min Fin. This was contained in a memo circulated by Operational Director Matt Pascall on 18 Dec to staff. Following the 2019 Budget announcement on 28th September, Kalumbila Minerals Limited (“KML”) has conducted a thorough analysis with respect to…
As Nigerian banks seek to raise fresh capital after massive loan losses propelled by effects of the oil glut that drove the economy in one of its worst recessions, FIs have started to consider M&A opportunities. One such M&As include Access Bank which has agreed to takeover mid-tier rival Diamond Bank. This will then create Africa’s largest bank by customers in a transaction expected to finalise by H1:19. Diamond bank’s Chief Executive Officer, Mr. Uzoma Dozie, said in Lagos the board had selected Access Bank as the preferred bidder with respect to a potential merger of both banks. Dozie said the…
The man MTN Zambia has been paying to look through the window, will now focus on information and technology at group level. Charles Molapisi will effective 01 Jan 2019 report to MTN head office as Group Chief Technology and Information Officer. A very down to earth yet intelligent individual with a pedigree of excellence. Interacting with Molapisi both at corporate and non-business related functions reveals key lessons about rising to the top. His leadership style is one that everyone in the C- suite must emulate. Molapisi’s trajectory is one that defy’ s the odds especially that his background is purely…
Economic think tank in Africa’s second largest copper hotspot, Zambia, has clarified the recent asymmetry in the Head of States speech at its first ever dinner gala held on 12 Dec. In a press release, Economics Association of Zambia (EAZ) Acting President Dr. Austin Mwange cited the media for misreporting on a number of issues that have made sensational headlines resulting in misreflecting of context in which the Head of State made various pronouncements at the dinner gala. Firstly, the reference to our cooperating partners as cockroaches was an outright misrepresentation as the context in which the analogy was used…