As risk appetite seeps back into Africa’s second largest copper hotspot Zambia, mining continues to see renewed focus over the last few months supported by a strong global de-carbonization drive to save the planet this climate resilient actions. Zambia’s determination in retaining its displaced position as the continents largest copper producer is vivid in its stretch growth target of 3 million metric tons in the next 5-10 years, from the current 806,000 metric tons. READ ALSO: Zambia Leaves South Africa Choking in Its Dust At the 2022 Mining Indaba Zambia’s largest bank by asset size and profitability Zanaco Plc in…
Author: The Editor
As the world grapples with pandemic and a Russo – Ukraine war aftermath impacting financial and commodity markets, emerging and frontier markets (EM) are continuously bearing the brunt. Excessive inflation, dubbed one of the biggest hurdles of 2022, in the west has triggered commencement of aggressive rate hike cycles in response, that are supporting higher treasury and guilt yields which are on the downside eroding purchasing power in EM debt sales. Zambia’s central bank in its Friday 27 May auction, sold K1.49 billion of the K2.6 billion of bonds on offer representing a 67.0% subscription ratio. READ ALSO: Kwacha Bond…
In the Bank of Zambia’s sophomore rate decision meeting for 2022, the Monetary Policy Committee (MPC) kept rates unchanged at 9.0%. This was announced at a press briefing at the central bank hall in Lusaka by Governor Dr. Denny Kalyalya on May 18. This is the second time the committee is maintaining the ruling benchmark interest rate this year despite rising upside risks to inflation on the back of global geopolitically induced supply disruptions. Kalyalya cited the current inflation ebb and aggressive fiscal measures as motivation for the May rate stance. READ ALSO: Zambia’s Central Bank Could Keep Interest Rate Tad…
As global food prices scale higher on the back of geopolitics and drought exacerbating the supply side, nations continue to take stock of food production to mitigate food inflation threats. It is about a dry point of construction that climate change effects, have weighed precipitation which has ultimately impacted agribusiness. Africa’s ‘green’ metal producer Zambia, not immune to climate effects, forecasts a 25.24% ebb in maize production for the 2020/2021 agriculture season according to its Agriculture Ministry. Speaking during a presentation of crop survey forecast results, Agriculture Minister Reuben Phiri Mtolo said, “the production of maize is forecast to decrease…
Zambia’s Chief Investment Officer, President Hakainde Hichilema vowed to cutting business red tape on the sidelines of the Mining Indaba in Cape Town. “We want to unlock everything that stands in the way of growth. Agriculture conditions are strong and we want to be a production center and hub.” Hakainde Hichilema said. The Southern African nations head of state pledged to forge ahead with economic transformation. This was at a IA Connect Mining Series on May 11. Outlining plans to cut red tape to delegates, the pro-business leader promised, “If a law is a constraint, we will amend it,” he…
Petroleum price pressures persisted in the month of April offsetting private sector activity despite the Purchasing Managers Index (PMI) headlining 50.5 from 49.6 previous month. According the Markit Economics April release on Zambia, the PMI reading reflects a marginal improvement in business conditions as output and orders rose slightly. 50 remains the benchmark for expansion (>50) and contraction (<50). READ ALSO: Despite Zambia’s rising Business Confidence, Input Inflationary Pressure dampened Demand to weaken March Manufacturing Pulse However, rising fuel prices did negate manufacturing and construction momentum, scaling purchase prices to 10 month highs. Business confidence ebbed to 14 month lows.…
In the labyrinth of debt strains, Africa’s second largest copper producer Zambia, is on the cusp of not only a fiscal but a mining faculty breakthrough. A plethora of sentiment drivers such as attaining an International Monetary Fund financing deal by June 2022 cheered markets a few weeks ago but not as hyped as this week when a brace of mining news hit the air after First Quantum Minerals (FQM), the Southern African nation’s largest tax earner committing to invest $1.25 billion in expansion while the controversy around Vedanta and the Zambia government is fading with greater commitment from the…
President Hakainde Hichilema, in his inaugural speech at the ongoing mining indaba in Cape Town re-echoed a line which he first used a fortnight ago when Zambia and the Democratic Republic of Congo signed economic mineral protocols, the need for fairly priced capital in the mining faculty. READ ALSO: Africa’s Copperbelt readies to Commercialize Global Decarbonization through Electric Car Battery and Clean Energy Value Chain Agreements Speaking at the mining indaba themed ‘Evolution of African Mining: Investing in the Energy Transition, ESG and Economies,’ Hichilema said, “We will work with everyone, the technology people, financial partners the capital providers, but only…
Zambia’s central bank will next week Monday commence deliberations concerning its sophomore rate decision meeting of the year 2022 that will climax on Wednesday May 18 with the Governor Denny Kalyalya announcing the committees stance. Since the last monetary policy session on February 17, that kept rates tad at 9.0%. The fiscal and economic landscape has seen immense metamorphosis with both endo and exogenous factors impacting the financial landscape. READ ALSO: BOZ Keeps Rates Tad in Debut MPC On Ebbing Inflation, Wary Of Upside Risks Global fundamentals remain frail with feeble growth prospects marred by the war in eastern Europe after Russia…
Zambia’s Minister of Finance, Dr. Situmbeko Musokotwane see’s widened likelihood of a financing deal with the Washington based lender, the International Monetary Fund (IMF) after an array of engagements with key stakeholders on the sidelines of the IMF/World Bank Spring meetings that ran from 18 – 24 April, 2022. Speaking during a media briefing in Lusaka the capital, Musokotwane said the Zambian delegation he led courted IMF Managing Director Kristalina Georgeiva, World Bank President David Malpas, the Paris Club Secretariat, Sovereign Rating Agencies, the United Kingdom Minister for Africa, US treasury officials and bondholders. These players did render their commitment…