To the world, the recently commissioned Kazungula bridge is just a marvel but to Zambia and Botswana, this is the most lucrative trade corridor to the extent that what happens in South Africa does impact trade flows. South Africa, currently grapples with political unrest, a jobless recovery and an acute COVID19 third wave pandemic systematic across the continent. South African markets have nonetheless shown remarkable recovery post first and second pandemic waves with currency strengthening, bond and equity markets taking a cue from the global integration as vaccination administration increased. However more recent economic data has revealed an ebb in…
Author: The Editor
The largest General Insurance Company in Africa’s second largest copper hotspot, with market share of 27.0%, was on June 29 by Global Credit Rating – GCR affirmed at national scale financial strength rating of A+(ZM), with stable outlook. According to the GCR report, Professional Insurance Corporation Zambia – PICZ remains sound in business profile, balancing a strong competitive position with limited premium diversification. Cited in the report was the resilient financial profile which continues to reflecting strong capitalization and intermediate liquidity, despite increased earnings risk from a weakened operating environment characterized by disruptive inflationary pressures. PICZ remains market leader in…
In the labyrinth of global hurdles ranging from a multi variant corona virus pandemic to climate change persistent effects, the world continues to bear the brunt of these top risks. Africa, the world’s fastest growing continent has been adversely impacted by the pandemic as it grapples with a snail paced vaccination administration currently at 2.0% while climate change effects are evident in prolonged droughts, erratic rainfall patterns and cyclones on its coastal areas. It is for this reason that the most prestigious accounting discipline on earth, the Association of Certified Chartered Accountants – ACCA has committed to playing a key…
Barely two months after levitating from the doldrums to a 26 month high of 50.1 in April, Zambia’s Purchasing Managers Index – PMI is back deeper in contraction at 49.3 for the month of June as the third wave deepens. This represents 0.4 points lower than May’s 49.7. (50 is the benchmark for expansionary ->50 and contractionary -<50 private sector activity). Faced with rising cases in the month exacerbated by cold weather and a laxity in adherence to health protocols, Zambia’s positivity cases rose to highs of 28.0% in the period with the healthcare system grappling with bed space, oxygen…
As global crude prices trend bullish north of $75 a barrel, oil importing nations are faced with a fuel price hike potential quagmire as they grapple with taming other rising inflationary pressures from higher food prices and other factors globally in the pandemic period. Currently global economic recovery as vaccine administration against the COVID19 pandemic accelerates in developed nations is shaping crude demand fundamentals while geopolitical tension and actions by the OPEC+ states on supply cuts are shaping the supply side of the oil price curve. Fuel (petrol and diesel) forms a key input in manufacturing costs as such rising…
With two rate decision meetings to the end of the year in Africa’s copper producer Zambia, monetary policy is shifting from inflation to pandemic based as the committee weighs social impacts of disease on the economy in light of the need to stimulate growth. COVID19 and its adverse impact on the economy and business ecosystem will be a key agenda item and scenario in central bank board rooms, over and above the notorious spiralling inflationary pressures. Inflation continues to climb to highs as global food prices soar persistently, logistics and freight price upticks as backlogs widen in light of economies…
The central bank in Africa’s red metal hotspot, sold a billion Kwacha worth of Treasury bills in Thursday July 01 debt sale. Interest continues to be seen in the 1 year tenor despite inflation having overtaken yields across the current Kwacha demand curve. Being the most highest paying bucket within a range of 20.89% -25.49% of accepted rates, a June inflation rally to a two decade high of 24.6% sent Treasury bill yields 140 basis points (bps) deeper underwater from previous levels widening the negative premiums for taking sovereign risks. Food prices remain the biggest threat to inflation that continues…
Barely a week after 2017 Africa’s award winning FMCG of the years subsidiary Universal Mining and Chemical Industries Limited (Kafue Steel plant) extended a blank cheque of oxygen to the constrained healthcare system in the continents second largest copper producer, Trade Kings Group has yet donated advanced oxygen concentrators, respiratory accessories and hygiene products to 5 level one hospitals in Lusaka. The donations were made to Chipata Compound, Chawama, Matero, Chawama and Chilenje General Hospitals in addition to Kalingalinga, Bauleni and Chelstone Clinics. This intervention was in response to the surging demand of oxygen therapy needed to curb the breathing…
As the globe grapples with a deepening pandemic, economies have continued to bear the brunt through widening debt repayment burdens mostly due to reallocation of public funds towards healthcare from planned economic activity. Economies posted negative growths, private sector pulse shrivelled on account of supply chain disruptions and above all asset valuations were adversely impacted as currencies weakened on sell off pressures observed. Africa is facing third wave threat amidst hurdles in getting the amount of vaccinations which poses a real threat to growth in 2021 too. A few nations have issued dollar bonds for various reasons while others have…
One stock trading actively on the Lusaka Securities Exchange – LuSE that has stolen traders attention is Lafarge Zambia Plc (ZM:ISIN0000000011) that has seen a surge in positive price momentum over the last few weeks. Currently pegged at a market capitalisation of K1.95 billion (circa $87 million) compared to a $150 million enterprise value that Huaxin China will pay for the 75.0% majority stake in Lafarge Zambia, Lafarge stock has rallied 95.0% to K9.78 per share between 18-30 June resulting in a x3.5 amplification in market capitalisation from start of year. Read also: China’s Huaxin Cement buys off Lafarge Zambia…