Author: The Editor

As we reflect on performance of the year 2021 in the investment faculty, Africa’s second largest red metal producer Zambia has one outstanding investment option that surpassed traditional risk free assets, village banking. The investment options annual interest yield of above 120% qualifies it for most lucrative asset even when adjusted for inflation. ZAMBIA’S SOCIALLY ACCEPTED BANKING MODEL Village banking is Zambia’s socially accepted banking model, understood at the most elemental level which has transcended various classes. And what makes it so powerful is that was developed and propelled by the country’s most effective business unit – the woman! It…

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As Africa’s second largest copper hotspot Zambia, descended into the year 2022, markets were left wondering whether or not the yield curve was merely correcting a temporal ‘kink’ in the 9 month to 1 year or maybe money markets were signaling a bearish rate trajectory on the horizon. A few fundamentals could suggest the latter with the central banks increased funding appetite for the 2022 budget. While bond yields were on a ebbing trajectory generally in the last 3 months as markets price lower funding costs, 9 month and 1 year yields (against all odds) rose 305 and 150 basis…

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Yearend inflation in Africa’s celebrated hotspot Zambia ebbed an aggressive 290 basis points to 16.4% according to the Zambia Statistics Agency (ZSA). The biggest driver of the sag in consumer price index (CPI) was a 550 bps fall in food prices to 19.9% backed by an infinitesimal decline in non food prices of 0.1% to 12.1%. Zambia’s has in the last three months taken a positive cue from subsiding political risks and brighter sovereign posture manifesting in currency appreciations fueled by sentiment boosts and an increased demand for government securities from offshore players seeking higher real yields. This has increased…

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As the world ponders on what the effects of the omicron variant will mean for businesses in general, banks continue to demonstrate resilience from learnings in the previous waves. One such bank that has demonstrated leadership not only in partnering with the national growth agenda but healthcare is Lusaka Securities Exchange listed Zanaco Plc. Approaching the entrance to the largest bank in Africa’s second largest red metal producer both by asset size and in top tier profitability, one will notice an aggressive ongoing COVID19 testing program. This will allow for clients have their healthcare needs taken care of as they…

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Africa’s second largest red metal producer, Zambia is reaping the dividends of shift in political risk posture weighed by a more transparent and stronger politically willed governance regime in the last 3 months. A trip to New York to attend the United Nations General Assembly was capitalized to meet Kristalina Georgeiva (International Monetary Fund Managing Director) and David Malpas (The World Bank Head), two landmark visits that Zambia’s head of state Hakainde Hichilema and his delegation used to commit the copper producers political will to attain fiscal fitness amidst a widening debt quagmire. This was the genesis of the debt…

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Amidst a cocktail of positives, ranging from the recent International Monetary Fund (IMF) Staff Mission $1.4 billion bailout agreement between Zambia and the Washington based lender to ebbing yields in government securities (signaling lower term funding interest rates), the last bond sale of the pandemic year 2021 had a lot to hint to the markets. The central bank successfully raised one and half yards (K1.5 billion) worth of government paper in a debt sale that saw very strong appetite and purchasing power north of K4.3 billion in bids. IS THE KWACHA BOND CURVE BOTTOMING? In the final bond sale of…

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The energy ministry through its energy regulation board (ERB) in Africa’s second largest red metal producer, on December 17, effected a petroleum price hike effective midnight as the MinFin reshuffle their fiscal purse to attain higher optimal production possibilities. This upward adjustment comes almost exactly 2 years after the last hike effected in on December 26 of 2019. Necessitating this adjustment is the stance by the fiscal authorities to reflect global crude and currency price in a quest to reallocate resources to productive sectors of the economy through a subsidy removal program as the Southern African nation readies for an…

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It is December 16 and Africa’s second largest copper hotspot Zambia has received fairly scanty precipitation in most parts breeding fears of drought. Ideally the rainfall season should commence mid October and start to intensify into December all the way upto March the following year. Climate risks are becoming more eminent and a reality as the effects continue to dent the business ecosystem through arid weather. The meteorological authorities under the green and environment ministry forecast commencement of rain from December 17 for the next 10 days however the distribution skew continues to generate food security fears. Farmers have been…

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