Author: The Editor

After a marathon of 4 expansions (>50) in manufacturing pulse in the last 4 months of 2021, the factory activity gauge in Africa’s second largest hotspot Zambia, slid 160 points into contraction as pandemic effects weighed. According to Markit Economics January report, Zambia’s Purchasing Managers Index (PMI) headlined 49.9 (from 51.5 in December 2021), infinitesimally below the 50 meniscus level that sets the benchmark for expansion and contraction. READ ALSO: Despite Muted Festivity Activity, Zambia’s December Private Sector Pulse Remained ResilientThe Southern African nation, in the last two months to the end of 2021, grappled with the Omicron variant effects…

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The energy regulator in Africa’s second largest red metal producer announced a 6.0% ebb on petroleum prices ruling for the month of January 2022. This according to a press release from the Energy Regulation Board (ERB) dated January 31 citing Brent crude and Kwacha bulls ruling in December 2021. This announcement comes in the wake of a price review adjustment on frequency to monthly by the regulator in the quest to reflect ruling market prices of oil on the international markets and exchange rate fluctuations (rallies and slides). The press release attributed the price sag to an average 10.0% in…

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Zambia’s largest bank by asset size Stanbic Bank Ltd has its FY21 earnings revealing exceptional cost efficiency which gave the bank a 93.0% sprint in After Tax Profits (PAT) to K886.9 million year on year. This is according to prudential financial results in the local press on January 31. The blue banks cost to income ratio steeply ebbed 1,370 points to 48.5% from a year ago. EXCEPTIONAL LID ON EXPENSES CUES EARNINGS Total income grew 34.6% to K2.92 billion supported by a 32.0% rally in loan & advances income, 37.0% growth in Mark to Market (MTM) gains for duration risk…

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As effects of cyclone Ana subside, market players in Africa’s second largest copper hotspot will be looking at their watches to check what time it is, the earnings season o’’clock. The Zambian market will this week be marveling at the exceptional FY21 financial performance that Zambia National Commercial Bank (Zanaco Plc) has delivered. For Mukwandi Chibesakunda, these results will signal to shareholders, from individuals to institutional classes, the direction that her first 14 months of leadership has led the bank to. According to the 2021 prudential results in the local press, the largest indigenous Financial Institution (FI) in the red…

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Headline inflation for first month of 2022 in Africa’s red metal hotspot ebbed 130 points to 15.1% as reported by the Zambia Statistics Agency (ZSA). This is the lowest consumer price index has seen in the last 2 years exactly supported by stronger base effects despite a 25% scaling up of petroleum products. Food prices continued to ease with January food inflation steeply falling 300 basis points to 15.1% offsetting a 60 points uptick in non food prices. The CPI fall, seemed against all odds given effects of a petroleum price hike on 16 December 2021. However it is about…

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The first half of 2022 remains an interesting period for Africa’s second largest red metal hotspot, Zambia. Markets eagerly await clues around debt restructure following the Ministry of Finances attainment of consensus with the Washington based lender, the International Monetary Funds Staff Mission team on financial bailout to the tune of $1.4 billion. The agreement will now be presented to a special IMF board for approval in 1Q22 after which the first tranche should be disbursement. The IMF package for Zambia is critical as it is a precursor for debt restructure as positioned by creditors. In a presentation to bilateral…

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Markets in Africa’s second largest copper producer Zambia just got a fret in their outlook as the debut bond sale printed yields a few basis points higher. The Bank of Zambia was only able to satisfy K1.9 billion of the K2.9 billion appetite in bids pushing the 3,7 and 10 year points on the demand curve 100, 150 and 140 bps higher to 20.5%, 24.5% and 25.5% respectively. Friday January 21 outcome, strengthens the case for yield rate bears whose signs were earlier detected on the treasury bill end of the Kwacha curve. In the last 8 weeks, the yield…

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The short term yield curve in Africa’s second largest copper hotspot Zambia, has extended its bearish streak from the December 2021 climbs that left markets ‘in wonder’ about vivid interest rate direction. This follows an earlier aggressive curve compression observed as part of a post election bond bump that saw a spike in demand for Kwacha assets on the back of a sentiment boost in the Southern African nation which coincided with a gold rush for emerging and frontier market yield in an inflation infested global environment. Ultra thin yields in the west made treasuries unattractive pointing post pandemic excess…

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Despite muted activity at year end on the back of business slow down to cater for the festivities, private sector pulse in Africa’s red metal hotspot Zambia remained resilient. According to Markit Economics, the Southern African nations Purchasing Managers Index (PMI) headlined 51.5 an infinitesimal ebb from November’s 51.8. This will be Zambia’s fifth expansionary manufacturing pulse recorded in 2021 after a series of contractions weighed by pandemic effects. Fifty is the benchmark for expansion (>50) and contraction (<50). READ ALSO: Zambia’s November Business Pulse Scales to 3.5yr High, ‘Omicron Variant’ Could Weigh The Markit Economics December factory gauge report…

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First Capital Bank sees a bullish recovery trajectory for Zambia in 2022 and onwards following the Washington based lender, International Monetary Fund (IMF) endorsement of the Southern African nations fiscal strides. Speaking in a Money Watch show on Spring24TV, the banks Head Trader Dean Nathaniel Onyambu stated that Zambia’s engagement with the IMF and the strides attained has clawed back sentiment in the copper producer manifesting in a rally in bond yields and a boost in foreign direct investment to circa $3bn (2021) from $869 million (2020). “Three key themes that have dominated the global environment are namely inflation, the…

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