Zambia’s bond rally euphoria seems to have halved judging from the bids observed in Friday September 17 fixed income sale compared to the August 27 debt sale. With appetite of K6.4billion compared to K12.5 billion in the post election bond sale, yields have extended the compression by an average of 218 basis points across the fixed income spectrum as offshores and locals lock-in in yields before the steam phases out. Of these bids the central bank absorbed K1.5 billion concentrated in the 5 and 10 year tenors. READ ALSO: Soaring Kwacha Bonds, Strong Pulse for a Funding Cost ebb TERM…
Author: The Editor
Just over a year after being named Zambia’s central bank governor taking over of Dr. Denny Kalyalya, Christopher Mvunga resigned from his role as Bank of Zambia head. This was established in a press statement from state house on September 07. President Hichilema has also designated Dr. Francis Chipimo the current Deputy Governor Operations to act as Bank of Zambia (BOZ) Governor following the resignation of Mr. Christopher Mvunga, who at the time of his resignation was serving as Governor of the Central Bank. “We have made ministerial appointments such as in the Ministry of Finance, we don’t want a…
The central bank in Africa’s red metal producer Zambia, has increased bidding thresholds for competitive and non competitive bids according to a press release on its website dated September 07. The minimum amount for competitive bids has been scaled to K500,000 (face value) from K30,000 per bigger per maturity tenor while the maximum bid amount for the non – competitive window has been adjusted to K499,000 (face value) from K29,000 per bidder per maturity tenor. Bank of Zambia decided to revise the thresholds to realign to economic changes and time decay since they were instituted. Other factors taken into account…
After a series of operating hurdles leading to business rescue when South African Airways dodged liquidation, the over 80 year old flyer is ready to hit the African skies on September 23. This was according to a media statement shared by the Airline.The last SAA was in the skies was 2019 just before the COVID19 pandemic started and has been grounded through the period the globe was on lock down while the state grappled with business rescue options. “After months of diligent work, we are delighted that SAA is resuming service and we look forward to welcoming on board our…
An increased avalanche of sentiment into Africa’s second largest copper producers economy, Zambia has given a cue to August private sector pulse. The gauge used to measure factory activity, the Markit Economics Purchasing Managers Index (PMI) levitated to 49.8 in the month of August, 0.5 points from previous months levels. (Readings above >50 signal expansionary while those below <50 are contractionary in growth). Currency appreciation continues to ease input price inflation pressures as new business orders take shape in a lower pandemic infested environment. The copper currency, the Kwacha continues to extended a winning streak from higher than usual sentiment…
Zambia is making headlines in the capital markets for the third week in row, this time causing jitteriness in the dollar bond market but a ‘Bally will fix it’ tweet calmed the capital market’s eventually. This follows revelations about a deeper hole in the national treasury as shared by the newly elected president Hakainde Hichilema in a tweet. Despite the divulgences on debt, it is still vague as to the depth of the deficit as the official exact position is yet to be communicated. Zambia’s dollar bonds maturing 2024 plummeted the most in 2 months to 79.2 on September 01,…
One of the positive autopsy effects of the sentiment boost in Africa’s copper producer, Zambia, after the electoral vote that saw the ascension of Hakainde Hichilema to power was the bond yield rally in the post election bump debt sale of August, 27. Bank of Zambia sold two and half yards of paper in local currency terms (K2.5 billion) from an appetite of K12.5 billion ($757 million circa) in bids that saw yields compress 606 basis points across the Kwacha demand curve on average. Term funding in the copper producer is determined by the government security curve whose flattening last…
For a fortnight now Africa’s red metal hotspot Zambia is making positive headline following the August 12 poll outcome that saw a third successful peaceful transition since 1991. With the election of President Hakainde Hichilema as 7th President, markets roared with confidence that saw the Kwacha named worlds best currency with a 17.8% appreciation, a 12% dollar bond rally in prices and on August 28, a 600 basis point rally on average across the bond curve. READ ALSO: Offshores to flood Zambia’s post ‘election bump’ bond offering next Friday Wall Street investment bank JPMorgan had tipped offshore players on attractiveness…
Three days after being sworn in as Zambia’s 7th Republican President, Hakainde Hichilema has exercised his instruments of power by entrusting Dr. Situmbeko Musokotwane (65) as Minister of Finance. Anxiety continues to grip citizens and outside stakeholders as to who will be on the new head of states cabinet. Musokotwane take over from Dr. Bwalya Ng’andu who led the finance team for the last 2 years. READ ALSO: Zambia will not share in poverty, HH pledges an economic rebound The copper producer is at a critical stage of its economic life cycle marred by elevated debt in excess of $12.97…
To the mother out there battered by a high cost of living, Bally will do more than just fixing the economy but will grow the Zambian economy out of poverty, Zambia’s 7th Republican President said in his inauguration speech. We will embrace respect and diversity, restore the rule of law, restore the country to normalcy and exterminate caderism, he said with air of confidence. Newly sworn in head of state bemoaned the economic erosion of Zambia over the years exacerbated by a rising debt position amidst a COVID19 pandemic which he pledged to correct. “Over the next 5 years we…