As Africa’s second-largest copper producer fully effects its reorganization of the fiscal purse, its energy ministry will not be extending any tax waivers for petroleum inputs into October. This comes in the wake of strides the Southern African nation is taking to restore fiscal fitness. The action comes exactly a month into the International Monetary Fund bailout package approval for an extended credit facility. Homogenous to every other crude importing nation, oil price bulls from geopolitical tension shorting supply chains and pandemic-induced currency depreciation did balloon petroleum prices for which governments stepped in to subsidize costs in the quest to…
Author: The Editor
As mining prospects brighten in Africa’s second largest copper producer, energy is set to take a positive cue from higher production targets and above all healthy metal prices on the London Metal Exchange. These two booming sectors are driving the capital market performance stronger by all standards. One recent development was the record interim dividend payment announcement that priced into the Copperbelt Energy Corporation (ZM:ISIN0000000136) stock sending it into a 13.23% two day rally to K4.00. This not only makes the power and energy distributor the largest listed company on the Lusaka Securities Exchange as measured by market capitalization but…
The chaotic state of the global environment continues to drive investor behavior with most seeking safe haven for their liquidity. Most offshores continue to seek refuge in dollar denominated assets, typical in times of uncertainty, and additionally emerging market assets like bonds especially in nations that are on International Monetary Fund programs. One jurisdiction seeing an influx of offshores is Zambia, Africa’s red metal hotspot whose risk skew for fixed income has shifted to longer dated higher yielding govies from shorter dated higher yielding. This comes in the wake of economic recovery prospects boosted by an extended credit facility approved…
Africa’s red metal hotspot Zambia on Friday, September 17 saw a sanguine surge in appetite worth of 5 yards in govies. This is the first bond sale after the Washington based lender the International Monetary Fund board approved a $1.3billion extended credit facility 21 months after the Southern African nation formally applied for financial assistance following a deterioration in its economic posture. Friday’s debt sale was a cocktail of both offshore and onshore investors that took risk on Zambia on the back of its bullish recovery prospects with 55% of this appetite housed in the 10-year tenor at 27.75%. The…
Global monetary tightening continues to theme bond appetite for offshores with mixed themes in financial markets. The inflation quagmire remains core to investment decisions as the west remains in the labyrinth of aggressive interest rate hikes to tame the consumer price index scourge. Africa’s red metal producer Zambia will seek to raise K2.6 billion in a 2,7,15 year non-benchmark bond re-issuance and a 3,5 and 10 year new benchmark bond issuances. The Southern African nations credit risk posture took a positive cue from a $1.3 billion extended credit facility that serves as a precursor to successful debt restructure following fiscal…
Africa’s second largest red metal hotspot Zambia on September 01, woke up to a breakthrough after an International Monetary Fund board sitting on August 31, resolved to approve the Southern African nations application for financial assistance to the tune of $1.3billion with a 38-month extended credit facility. This breakthrough comes exactly 21-months after the Zambian government formally reached out to the Washington based lender in December 2020 after economic conditions deteriorated significantly. Months to closing the deal, many economists and analysts were caught up in the labyrinth of whether or not a deal with the lender was a precursor to…
Zambia’s largest cement producer, Chilanga Cement Plc – formerly Lafarge – (ISIN:ZM0000000011) continues to take a negative cue from an ebb in construction pulse both domestically and regionally. This follows a cocktail of drivers ranging from the states suspension of an earlier aggressive infrastructure spend to dampened economic activity on account of a COVID19 pandemic. According to half year unaudited financials published in the press, the cement giant’s top line sagged 16% to K803million weighed by dampened real estate demand adding onto already existing pressure in the international market on the back of pricing uncompetitiveness as the Kwacha extends its…
The copper currency, the kwacha sprinted 3.47% to a high of 15.275 for a unit of dollar on day one post announcement of bailout by the International Monetary Fund. Opening September 01 at 15.725 after closing previous day at 15.825/USD the currency in Africa’s red metal producer rallied 3.47% (intraday) after which it reversed 1% of the gains to settle at 15.425/USD. READ ALSO: Zambia back in the champions league as IMF grants ‘long awaited’ $1.3billion Extended Credit Facility The market continues to experience players taking short positions in anticipation of flows following the Washington based lenders extension of a…
Zambia’s second most preferred network provider Airtel Networks (ISIN:ZM0000000342) scaled its top line higher by 26% to K2.02billion in 1H22 supported by a 15% expansion in subscriber base to 8.22 million. The stellar sales take a positive cue from increased data demand in the copper producer as risk appetite restores to pre pandemic levels. Zambia has seen an uptick in digital commerce which is a key demand driver. The mobile network operator scaled its after tax earnings by 299% to K353million supported by a 43% ebb in finance costs and a 14% decline in liabilities. The company decreased its investment…
Twenty one months after formally requesting for financial support from the Washington based lender, Africa’s second largest copper producer has been granted a 38 month extended credit facility of $1.3 billion. This was after the International Monetary Fund board met on August 31 to assess the Southern Africans country’s case following the strides that the new dawn government has put in place. Zambia’s fiscal fragilities were exacerbated by a COVID 19 pandemic that weighed its cash flow capacity making it the first nation to default on its dollar bonds in 2020 as its credit risk profile deteriorated causing the international…