Africa’s second largest copper hotspot Zambia is ending 2021 with a plethora of positives ranging from a stronger confidence standing in the international market to attainment of a landmark target, consensus with the International Monetary Fund (IMF) Staff Mission team on a $1.4 billion Extended Credit Facility (ECF). This follows 22 months of deliberations when the Southern African nation made a formal application to the lender for a fully funded program yet the last 3 months (post August) have seen strategic meetings leading to an accelerated attainment of an agreement. “The most critical part of what we did to get…
Author: The Editor
In the week beginning December 05, the odds of the copper currency, the Kwacha, rallying is higher given the outcome of the IMF Staff Mission agreement with Zambias MinFin. This however will be supported by an array of factors key of which include increased liquidity flows from offshores that still seek yield in light of global record high inflation in an ultra thin treasury rate environment and general flows on the market as sovereign risk sentiment for the copper producer improves. Dollar returns for investment in Kwacha assets remain higher in real terms than in US treasuries making government securities…
Amidst growing optimism following improving sentiment in Africa’s second largest red metal hotspot Zambia, manufacturing pulse for the month of November scaled to a 3.5 year high as the Markit Economics Purchasing Managers Index (PMI) headlined 51.8 from 51.2 previous month. This was the third expansion in the year 2021 as business conditions improved. READ ALSO: Zambia’s October Manufacturing Pulse Scales to 44 month High as Business Confidence Soars Lagged effects of Kwacha appreciation continue to support the current input cost ebb that has contributed to easing selling prices as inflation slows down. Both producer and consumer price indexes are…
Zambia’s Republican President Hakainde Hichilema and his MinFin Head Dr. Musokotwane confer with the World Bank in Washington DC.
A day after the second rate hike of the year 2021, a 50 basis points tightening in the benchmark interest rate, Zambia’s Consumer Price Index (CPI) ebbed 180 points lower to 19.3%. This according to the Zambia Statistics Agency (ZSA) was attributed to a 2.7% deceleration in food prices in parallel with and a 1.0% slow down in non – food prices. This is the lowest inflation since December 2020. On a monthly basis, consumer prices were up 0.6%, after a 0.4% increase in the prior month. The copper producer, has for a year grappled with elevated inflation as a…
Following two day deliberations on a rate decision in the last monetary policy committee of the year 2021 that commenced on November 22, Zambia’s central bank has decided to hike rates 50 basis points to 9.0%. This was announced by Governor Dr. Denny Kalyalya in his debut MPC of the year after his reinstatement following the resignation of Christopher Mvunga in the year. READ ALSO: Kalyalya To Rethink ‘Inflation Curb’ as Rates Expected Pat in 2021’s Last MPC Kalyalya attributed the hike to an aggressive stance by the central bank to curb double digit and elevated inflation currently at 21.2%.…
Africa’s second largest copper producer Zambia, will the week beginning November 21 commenced deliberations on the ultimate interest rate decision for the year 2021. Amidst elevated inflation yet on a steady receding pace, the Southern African importing nation still faces threats to consumer price index (CPI) weighed by exogenous factors such as supply chain disruption related pressures in the global chains as the 4th COVID wave exacerbates. Global food prices remain high as measured by the Food Agriculture Organization (FAO) index giving a cue to soft commodities that continue to weigh on prices of feed in the domestic market. The…
Post the August polls, Zambia has seen more bull that bear trajectories in the financial markets with the copper currency, the Kwacha, on a winning streak while the bond curve flattened as an interest rate ebb commenced. Empirical evidence has shown that bond rallies precede equity market bulls. The bourse in Africa’s second largest hotspot, the Lusaka Securities Exchange (LuSE) has extended a 20% bullish run, sending its Lusaka Securities All Share Index (LASI) to 5577.51, post the August 12 polls supported by an array of market related factors ranging from a stronger currency forecast and a compressing yield curve…
After a turbulent pandemic year 2020, Zambia’s economic prospects are beginning to brighten. Standard Chartered Bank Zambia Plc (SCB) has reclaimed its traditional place in the top 4 tier earners on the commercial banking score board. According to third quarter financial statements released in the local press, the Lusaka Securities Exchange – LuSE listed entity (ZM:ISIN0000000094) grew its after tax earnings to K405.98 million (from a loss of K155.2 million a year ago). The London incorporated franchise last year gyrated between business reorganization labyrinth, as part of a global group push towards focusing on profitable markets which led to closure…
Lately Zambia has been in the media for an array of positives ranging from improved investor confidence to the right strides being taken by the authorities to restore fiscal fitness. As Africa’s largest copper producer in the next 5-10 years times when current production soars 3 million metric tons, the Southern African nation is already in the top 2 tier of emeralds and gemstone production. Lufwanyama district has yet again pinned Zambia on the global map after revealing the largest ever emerald piece weighing 7,525 carats (1,505g). This exotic stone has been named Chipembele meaning ‘rhino’ in the local indigenous…