Finance Minister in Africa’s copper hotspot has committed to reaching an agreement with the Washington based lender by mid November. During a budget presentation on October 29, Dr. Situmbeko Musokotwane asked Zambians to rally behind the authorities efforts in meeting an agreement. “To provide an anchor to our debt restructuring engagement, the New Dawn Administration is actively engaging the International Monetary Fund for a funded program. It is very imperative that Zambia gets support from the IMF for our economic reform program. Once attained, Zambia will be able to engage creditors to restructure its debt under the Common Framework. This…
Author: The Editor
For Africa’s second largest copper producer, Zambia, all roads lead to parliament as the MinFin Head delivers a 2022 recovery budget, but this coincides with the 3Q21 earnings season for banks which Zambia National Commercial Bank Plc shareholders will descend into the weekend with an exceptional performance of the asset backing their stock (ZM:ISIN0000000250). The largest bank by asset size and top tier in profitability in Africa’s second largest copper producer, Zanaco Plc led the commercial banking industry with a solid income leadership across all earnings lines, save forex trading, according to a 3Q21 quarterly release in the local press.…
As the global environment becomes more cognizant of climate risks, Zambia’s largest indigenous bank by asset size and profitability has geared up for the radical shift in financing needs aligned to a green agenda. The Lusaka Securities Exchange (LuSE) listed bank is vividly reflecting climate risk in its risk appetite that has seen it in collaboration with World Wide Fund for Nature (WWF) and private equity firm Kukula Capital, commit to a K1 billion ($59 million) SME Green fund. The fund will form a pool from which small to medium sized enterprises can source funding for green business initiatives that…
It will be Nigeria Stock Exchange (NSE) listed Access Bank Group’s 5th bank takeover in 2021 should the Zambian regulatory authorities nod the merger and acquisition transaction. What started as an Atlas Mara takeover of BancABC in the copper producer Zambia has morphed into an M&A opportunity that saw the takeover of one of Zambia’s financial institutions with presence in the key provinces, Finance Bank. It is becoming more evident that capital, is no longer patient enough for organic type growth but investors have higher appetite for risk in already existing growth. On October 25, Access Bank of Nigeria, Africa’s…
Zambia’s largest and most profitable indigenous bank has taken digital innovation to another level through allowing for innovation to take place in its 2019 commissioned lab. In its journey towards defying the odds by being in contention to be Zambia’s first K1billion PAT bank in earnings, the bank is taking digitization, digitalization and its digital transformation journey seriously. They say the two most important things anyone would not want to be left out on in this season, are the rapture and technology, the Lusaka Securities Exchange – LuSE listed bank (ISIN:ZM0000000250) continues to utilize human capital in solution designs for various…
Despite elevated inflation in the 20’s money markets in the red metal producer continue to see increased appetite for government securities. Last Thursday’s treasury bill sale raised K1.4 billion out of a total of K3.4 billion in bids whose concentration was in the one year tenor paying 13.9998%. The short term (1year >=) Kwacha demand curve is significantly below inflation across the tenors which makes real returns negative. Arguably inflation has seen an ebb as base effects kick in and lagged effects of currency appreciation weigh. Inflation is expected to trend lower but could have some risks stemming from global…
Before banking became complex with savvy product offerings and a widening competitive landscape, 363 was the norm. Bankers funded their balance sheets at 3%, and lent out funds at 6% and by 3pm bank managers were on the golf course. This is a figure of speech depicting ebbing cost of funds. Zambia is experiencing a very interesting phenomenon in its yield curve whose shape has normalized since August coinciding with the polls. Previously the Kwacha demand curve was kinked across depicting sentiment, risk aversion and investor behavior shaped by sovereign risk perception of the copper producer. The treasury bill sale…
Zambia’s Chief Investment Officer and Head of State Hakainde Hichilema on 07 October led the health authorities in relaunching the copper producers vaccination campaign efforts to curb COVID19 completely. This follows the recent anaemic vaccine levels under 5.0% against the targeted 70.0%. With currently low positivity rates of under 1.0% Zambian citizens have shied away from being inoculated against the deadly pandemic which nonetheless has caught the attention of the new government. Officiating at the launch alongside Zambias new health minister Sylvia Masebo, President Hichilema bemoaned the low levels of vaccines in Zambia and Africa and echoed the need for…
The largest indigenous bank in Africa’s second largest copper producer has continues to play a key role in partnering with the growth agenda especially at a time as this when recovery prospects continue to brighten. Lusaka Securities Exchange listed Zambia National Commercial Bank Plc (ISIN:ZM0000000250) on October 04 inked a EUR15 million (circa. K635 million) Agriculture Value Chain (AVC) credit line with the European Investment Bank (EIB). This will create financing and technical support opportunities to retail farmers across the Southern African nation. The European Union remains a critical partner to Zambia’s growth efforts through facilitating partnerships as these and…
The Lusaka Securities Exchange (LuSE) rang the bell on October 6 not because of a traditional listing but because of a long overdue solution to inclusivity in investing in the copper producer. Zambia’s leading Mobile Network Operator (MNO) MTN Zambia’s subsidiary Fintech announced the usage of its famous product MOMO (mobile money) in purchasing of equities on the local bourse. This is a landmark step for the LuSE proving that technology is vividly an enabler in many ways, the underestimated Cobb Douglass function factor of production for years. The last time the LuSE rang the bell was in 2020 (1Q20)…