Former Bank of Zambia Governor Operations in the October 2010-2011 period, Dr. Austin Mwape will head Absa Zambia PLC board effective April 01, 2021. Dr. Mwape will succeed Chishala Kateka who in the previous year, on September 30, retired. On Kateka’s clock, the bank was steered through the metamorphosis of legal persona from Barclays PLC to Absa Zambia, the autopsy effect of the divorce Barclays PLC divorce from the ABSA Africa operation as part of a divestiture strategy from emerging markets. In addition to serving at the central bank, Dr. Mwape did time at the World Bank as senior financial…
Author: The Editor
Appetite for Kwacha bonds got an adrenaline boost as demand for fixed income paper was trigged by a central bank asset buy-back program in Africa’s red metal hot spot. Defying a persistent risk skew that has weighed Zambia for over one and half years, the third bod sale of the year has so far been the best as the Bank of Zambia (BOZ) tracked appetite of close to 3 yards of which K1.47billion ($66.2million) was satisfied of the K1.5billion worth of assets on offer. Read also: Something is ‘pulsing’ demand for Kwacha bonds, the central bank ‘asset buy-back’ program The…
Amidst economic turbulence characterized by rising debt, currency woes, spiraling inflation and waning credit appetite, the banking sector in Africa’s second largest copper producer, Zambia, has seen a series of merger and acquisitions (M&A) type of transactions recently. These have taken the form of amalgamations with more expected on the horizon. In this vain, Lusaka Securities Exchange – LuSE listed Investrust Bank (ISIN – ZM0000000235) have a new shareholder, Bank of Nevis International (BONI) which has successfully purchased 24.08% of the indigenous banks stake. Nevis is the smaller of the two islands comprising the nation of Saint Kitts and Nevis…
Risk skew towards short dated higher yielding assets in preference over longer dated fixed income government securities, has been a very consistent theme in the Zambian markets over the last two years. Amidst fiscal fragilities and pandemic induced economic woes, market players have shied away from locking liquidity in bonds for fear of duration risks. The one year treasury bill has received the most attention for not only being priced attractively, yield-wise and above inflation but has had the most lucrative duration benefit in uncertain times. A 355 basis point premium above an inflation of 22.2% is the best return…
Africa’s second largest copper hotspot,Zambia, grapples with economic malaise reflecting in a persistent currency slide, the key precipitator of an inflation spiral whose momentum has been accelerating in the period. Zambia’s growth target of 1.8% for 2021, risks being a mirage if the root cause of misaligned economic posture is not addressed timely. For a long time, fiscal and monetary policy have been disconnected yet the central bank continues to be burdened with the task of fixing the problem. Top central bankers Jerome Powell (United States Federal Reserve Chair) and Mark Carney (former Bank of England Governor) at Jackson hole,…
Amidst an inflation spiral with consumer price index pointing north of 22.0%, demand for one year treasury bills still remains strong in Africa’s second largest copper producer, Zambia. These are currently yielding 25.75%, a 355 basis points (bps) premium above inflation. With the central bank selling K1.65billion worth of short dated securities in Thursday, March 11 debt sale, a yard of that was housed in the 1-year. With a market liquidity of K4.0billion, bids totaled K2.2billion of the K1.3billion on offer. Players appetite observed for 1year assets was K1.6billion of the K650million on offer. Read also: Negative real yields on…
Lusaka Securities Exchange (LuSE) listed Zambeef (ISIN:ZM0000000201) has announced new appointments on its stock of board of directors to reflect is value chain strategy. This is in accordance with Section 3.59 of the LuSE Listings Rules. Zambeef announced the stepping down of Non Executive Directors (NED) namely Margaret Kunda Chalwe – Mudenda, Professor Enala Lyson Tembo -Mwase and John Rabb with immediate effect to be replaced by Katebe Monica Musonda, Pearson Gowero and Roman Frenkel respectively. These changes are with immediate effect. THE GENESIS OF ZAMBEEF’S VALUE CHAIN METAMORPHOSIS The changes are a reflection of an actualization of the groups…
The earnings season is here and FY20 financials have revealed that Lusaka Securities Exchange (LuSE) listed Airtel Zambia Plc recorded a 21.0% leap in its top line to K2.6billion. This was mainly supported by a 16.0% growth in its clientele base to 6.8million manifesting fueled by a 77.0% and 29.0% expansion in data and voice traffic growth in pandemic times. WORK FROM HOME ERGONOMICS TRIGGERS INVESTMENT IN CAPACITY AUGMENTATION This growth was necessitated by an appetite surge for augmented capacity for which the MNO invested in additional spectrum to the tune of $12.5million in 10MHZ, of an 800 spectrum band…
Amidst a debt and COVID pandemic labyrinth, Africa’s second largest copper producer, Zambia, has its fingers crossed on hopes of a Rapid Credit Facility (RCF) following discussions with the Washington based lender, the International Monetary Fund (IMF). Following virtual talks that ran from the February 11 to March 03, the IMF’s Davison Robinson led team conversed with various stakeholders in the Zambia economy key of which included the finance ministry and central bank on matters concerning fiscal and monetary policy. Read also: Zambia formally requests for IMF financing as economic woes deepen According to a press release on the IMF…
Despite the bellwether for global and economic pulse, copper, flirting with almost decade highs, Zambia’s private sector pulse continues to bear the brunt of a second pandemic wave. According to Markit economics purchasing managers index (PMI) release, February headline reading shriveled to a 6month low of 47.1, the lowest since September 2020, compared to 47.7 in the first month of the 2021. Fifty (50) sets the benchmark for expansion (>50) and contraction (<50). This will be 24 months exactly, the copper producer has been in contraction territory. Key drivers of this ebb include pandemic effects of the second wave that…