The copper currency, the kwacha, gave September manufacturing pulse a positive cue as input costs ebbed. According to markit economics latest readings, factory activity as measured by the purchasing managers index firmed 0.5 points to 50.5 in the month of September supported by a firmer local currency. Fifty (50) sets the benchmark for expansion (>50) and contraction (<50). READ ALSO: Zambia’s September PMI expected stronger, receding FX bulls and energy taxes to weigh outlook The copper producer on 31 August had its request for financial assistance with the International Monetary Fund approved. This sent the kwacha into a rally as…
Author: The Editor
They say amidst every turbulence, silverlinings do exist. Despite a chaotic global environment characterized by excessive inflation, soft commodity price dislocations and monetary policy tightening whose effects extend to emerging markets, one darling safe haven hotspot market that continues to reflect resilience in asset performance is Zambia. Africa’s second largest copper producer and first bond defaulter in the COVID19 pandemic era is defying the odds by reflecting robust growth in its investment market. This stellar performance and resilience is second to none. Over the last one year the Southern African nation has seen subsiding political risks, sentiment boost with greater…
central bank head in Africa’s copper producer Zambia has nodded the 2023 fiscal road map but has emphasized on the need for effective implementation. Dr. Denny Kalyalya said this during a post budget public symposium held in Lusaka the capital on 04 October. Kalyalya cited historical dislocations between monetary and fiscal policy that made central banking frustrating as balance sheet vulnerabilities heightened. With clear commitment as provided by the budget pronouncements made by the Finance Minister Dr. Situmbeko Musokotwane, the central bank head is confident that monetary policy management will lead to stable inflation and robust growth. “A stable financial…
It has often been said that African financial market depth is constrained by a limited array of assets. Zambia, the continents red metal hotspot just had its capital markets master plan approved by cabinet. This will provide for clear listing rules for green bonds on the local bourse the Lusaka Securities Exchange. This follows years of strategizing by the regulator the Securities Exchange Commission, Ministry of Finance and Financial Sector Deepening Africa working in conjunction with various market stakeholders. This comes at a time that the worlds decarbonization drive has strengthened given the need to urgently intervene in a climate…
Zambia’s government has divorced itself from the petroleum procurement to allow the private sector to manage the process. This was established during the budget presentation by Dr. Situmbeko Musokotwane in Lusaka the capital. The copper producer has embarked on an aggressive energy reform process aimed at improving efficiencies in supply chains. Zambia’s fuel procurement value chain has historically been marred with overcrowding by middlemen which is believed to have widened fuel cost price. “To enhance efficiency in the fuel supply chain, the Government has withdrawn from the importation and supply of petroleum products. This business will now be undertaken by the private…
Africa’s second largest red metal producer Zambia will seek to roll out a state owned enterprise policy aimed at improving governance and performance of government owned businesses. According to a budget speech presentation by Dr. Situmbeko Musokotwane on 30 September, Zambia will implement an SOE policy that will provide an intervention mechanism to keep government owned businesses accountable. “Madam Speaker, Government is concerned about the performance of our state-owned enterprises. In this regard, Government is developing a state- owned enterprise policy to strengthen their governance and improve performance. The policy will also provide a framework for conducting periodic assessment of…
The Ministry of Finance in Africa’s second largest copper producer Zambia see’s self sufficiency in fertilizer manufacture in the near term. Speaking during the second budget presentation under the new dawn government, MinFin Head Dr. Situmbeko Musokotwane named an entity that has invested $138 million into a fertilizer plan in Chilanga district with capacity to producer a million tons annually. “A fertilizer company has commenced operations in Chilanga District with an investment of $138 million. At full capacity, the company will produce 700,000 metric tons of Compound D and 300,000 metric tons of Urea per annum. This investment has created…
A poll carried out among 20 economists and financial analysts revealed that 80% expect a petroleum price hike in the energy regulation boards September price review. The remaining 20% considered no change at all. Africa’s second largest copper hotspot Zambia effective January 2022 shifted to a monthly price review after its Ministry of Finance initiated a reorganization of its fiscal purse in a subsidy removal program aimed at maximizing economic production possibilities. READ ALSO: With the expiration of tax waivers Africa’s copper hotspot, petroleum prices expected 11% higher The ERB price review comes up on the last day of the…
Manufacturing pulse in Africa’s red metal hotspot Zambia is set to headline stronger in the purchasing managers index markit economics September readings supported by currency bulls and lower petroleum prices. The PMI reading is set to take a positive cue from the energy regulatory board price cut and sentiment driven Kwacha appreciation in the month. READ ALSO: Zambia’s August private sector tempo rebounds after two successive contractions This will be the third time consecutively that the Southern African nation will be in expansion territory as businesses take reprieve on input prices that have previously borne the brunt of currency depreciation…
While the global monetary tightening persists with the most recent being the US Fed, Bank of England and South Africa Reserve Bank in the wake of notorious inflation, Banks in Africa’s second-largest copper hotspot are in a rate cut relay as they see the government curve sagging in the medium to long term. The Southern African nation recently bagged an International Monetary Fund board approval for an extended credit facility in a $1.3billion bailout following years of fiscal vulnerabilities that kept the Kwacha demand curve, elevated once in the 30s for medium to long-dated tenors. This resonated with the ideal…