Africa’s second largest copper producer had its ultimate bond sale of the year 2022 on Friday December 23rd. A far better subscribed offering than the last two months that averaged 35%, Fridays outcome was an improved 57% subscription. Of the K2.6 billion assets offered and bids a billion Kwacha shy of the sale amount, the Bank of Zambia successfully sold K1.5 billion bonds with 87% skewed between 2-5 year tenors. Yields were unchanged ranging from 17.5% (2 year) to 25.4% in the mid (5 year) to 27.75% on the longest tenor (15 year). Against expectations the Kwacha curve has delayed…
Author: The Editor
In the labyrinth of a delayed restructure, Africa’s second largest red metal hotspot Zambia, on December 21 of 2022 was granted $100 million concessional credit through the World Bank’s International Development Association (IDA). It is 3 years now that Zambia commenced the debt restructure journey and barely four months since the International Monetary Fund (IMF) approved the Southern African nation and Extended Credit Facility (ECF) of $1.3 billion to aid balance of payment support in the quest to assist the copper producer restore fiscal fitness. The IMF financial support was precursor to successful debt restructure which has seemingly delayed given…
Manufacturing pulse in Africa’s red metal hotspot slid infinitesimally further into contraction for the month of November. Shriveling for the second time after 4 months straight of expansion, purchasing managers index headlined 49.0 from 49.1 in the previous month as reported by Markit Economics. “Money shortages across the economy led to a further deterioration in business conditions in the Zambian private sector during November, with output and new orders both down for the second month running. In turn firms reduced their purchasing activity and employment,” the Markit Economics November release carried. Despite money shortage hurdles, the red metal producers inflationary…
The central bank in Africa’s second largest red metal hotspot Zambia kept its policy rate unchanged at 9% in its last rate decision session of the year. This was announced by the Bank of Zambia Governor Dr. Denny Kalyalya at a press briefing in Lusaka the capital on 23 November. The monetary policy committee commenced two day deliberations on Monday 21 November at which it was established that despite inflation falling outside the 6-8% target bracket, the central bank still sees attainment of the targeted objective by 1Q23. Zambia is one of the 11 African nations that have their rate…
Inflation continues to rank higher on the list of global risks which has triggered the genesis of a rate hike cycle. Global and regional central banks have been on an upward rate adjustment streak as they seek to reign in on inflationary pressure. However it has been noted that amidst this rate hike fever, there seem to be some immune spots where the inflation vice has been successfully tamed. Zambia, Africa’s second-largest copper producer is one such spot that has kept its interest rate unchanged at 9% for 4 consecutive quarters. Zambia’s last rate hike was in its November 2021…
Head of state in Africa’s red metal hot spot Zambia, Hakainde Hichilema challenged global leaders to roll out homogenous standards for carbon credits in the adaptation and mitigation of climate risks. This was Hichilema’s third active climate change platform since his ascension to power in August 2021. The first was his debut United Nations General Assembly conference in New York with the second and third being the 26th and 27th UN climate change conferences held in Glasgow and Sharm El Sheikh respectively. Zambia continues to play a pivotal role in the climate change agenda in Africa which as chair of…
One of Africa’s resilient economies amidst global chaos Zambia is experiencing a quandary in its bond market. Dubbed one of the best performing assets on the globe, Kwacha fixed income instruments are still constrained by a plethora of factors breeding uncertainty. These range from the current state of the world financial markets in the aftermath of the war in eastern Europe, pandemic effects in the east and other political developments to a sticky homogenous hurdle concerning clarity as to when its bilateral and private debt will be fully restructured. No one has blatantly admitted the world is in recession but…
Stocks for the largest bank in Africa’s second largest copper producer Zambia just got an outlook boost after the British International Investments extended a $50 million credit line to Zambia National Commercial Bank. Listed on the local bourse the Lusaka Securities Exchange, ZM:ISIN0000000250 is one of the red metal producers best performing stocks having recorded a resilient profitability trajectory that crossed the K1 billion after tax earnings mark in 2021. The credit line secured will be used to fund small to medium sized businesses for which the lender will prioritize women based and climate related initiatives aligning to global environmental…
The only thing in-between the home to one of the worlds natural wonders the mosi-o-tunya falls (Livingstone) and the commercial capital of Africas most industrialized economy (Johannesburg) is a 1hr 45 mins flight with CemAir Ltd. As risk appetite claws back into economies post COVID, Africa’s second largest copper hotspot Zambia is seeing increased growth pulse in sectors ranging from mining to agriculture. As the Southern African nation gears to market itself as one of the world’s tourism hotspots, air travel remains a key enabler in driving the requisite accessibility. The air travel industry has undergone a fair share of…
Zambia’s largest bank by asset size and in the top profitability tier, Zanaco Plc, has secured a $50 million credit line with British International Investment Company for onward lending to the small and medium sized businesses. This was done in Washington DC on the sidelines of the World Bank and International Monetary Fund meetings on 14 October. Speaking during the signing ceremony British Minister of State and Development Vicky Ford applauded Zambia for taking strides to restore confidence into its economy.“On behalf of the United Kingdom government, I am extraordinarily excited to witness this signing today. Zambia has been on…