According to Markit Economics data released on February 03, revealed that Zambia’s January business pulse sagged 1.3 points to 47.7 (from 49.0 in December 2020) attributed to effects of the second COVID wave and currency depreciation. The copper producers Purchasing Managers Index (PMI) will be 23months in contraction themed by elevated manufacturing costs fueled by higher energy prices and a weak Kwacha that continues to elevated input inflation. Readings below signal contraction while those above 50 reflect expansion. With rising cases that the red metal producer has seen after the second wave hit in the last week of December 2020…
Author: The Editor
The securities regulator in Africa’s copper hotspot Zambia, on February 04, delegated regulatory status to the Capital Markets Association (CMA) by recognizing it as Self-Regulatory Organization (SRO). The Securities and Exchange Commission (SEC) pursuant to section 29 of the Securities Act, No.41 of 2016 granted the CMA recognition as a self-regulatory organization which will grant the association power to regulate the standards of practice and business conduct of its members in accordance with its by-laws, rules, policies, practices, and interpretations. This recognition will be subject to meeting stipulated prescriptions set by the Securities and Exchange Commission (SEC) terms persuant with…
A deterioration in Zambia’s fiscal posture leading to sovereign downgrade has not spared commercial banks in Africa’s second largest copper producer. Absa Zambia PLC FY20 earnings bore the brunt of high risk weightings in widened credit impairments whose stock totaled K249.3million, weighing its after tax profits (PAT) lower by 41.2% on an annual basis to K143.8million. Adding pressure to revenues were widening non-interest expenses that grew 64.1% to K1.2billion weighed most likely by disease pandemic related spend, revaluation effect on foreign currency invoices and promotional spend on new branch rollout throughout the year. With steep depreciation of the Kwacha, exchange…
Dividend expectations remain high as ISIN:ZM0000000250 (ZANACO) shareholders will be smiling their way to the next Annual General Meeting (AGM) on the back of a FY20 solid performance by the big strong reliable bank. Lusaka Securities Exchange (LuSE) listed Zambia National Commercial Bank Plc continues to build momentum as it strides to assume its rightful place in the banking ecosystem from both an asset size and profitability perspective. Full year 2020 financials reflect income leadership across almost all lines and a 48.2% rally in after tax earnings (PAT) to K343.3million supported by aggressive growth and fruits of management strategy over…
A Zambian High Court on February 01, threw out an earlier stay of execution blocking the reorganization of Konkola Copper Mines into a smelter and mineral resource business respectively. The high court had on January 18, granted an ex – parte order in favor of Vedanta Resources, Vedanta Resources and Vedanta Limited protecting KCM assets from any form of restructure. This outcome however is coming at a time when aggrieved parties ZCCM-IH Plc and Vedanta Resources are in arbitration in London. Zambian authorities are determined to correct shareholding in key mines aimed at correcting a 25 year old privatization mistake…
As disease pandemic continues to adversely impact economies globally and regionally, jurisdictions continue to look to traditional sectors to aid growth in these difficult times. For Africa’s second largest copper producer Zambia, mining remains its mainstay with copper production outperforming the odds. First Quantum Mineral (FQM) shares a success story of its Sentinel (Kalumbila) mine situated in the new Copperbelt of Africa, on the North Western part of the Southern African nation. The mine in 2020 recorded a 14% growth in red metal production to 251,000 metric tons compared 31,000 metric tons which benefitted the local haulage business especially in…
Amidst spiraling inflation pointing north of 20 at 21.5% as announced by the Zambia Statistics Agency (ZSA) on January 28, real yields on short term government securities have widened 230 basis points in negative territory. However, despite all tenors save the 1 year being set underwater, demand for one year treasury bills seems the only sensible investment players can make at the moment which will yield 25.75%, 425bps above current inflation. With market liquidity of K2.1billion, the central bank received bids totaling K884.3million of the K1.3billion of assets on offer of which K774.9million were absorbed with 56.3% housed in the…
Real yields on Kwacha treasury bills have been drowned a further 230basis points (bps) as January inflation numbers jumped to 21.5% from 19.2% in December last year. According to the Zambia Statistics Agency (ZSA) inflation for January jumped to 21.5%, the highest inflation number seen since April 2016 (57months ago). The uptick was attributed to rise in food prices offset by a mild slow down in non-food prices. Inflation has been on climb since August 2020, widening 600bps to date as effects of a currency rout intensified transmitting in end user (consumer prices). This rally in CPI makes real yields…
In a fast morphing digitizing world whose technological appetite is dictated by the need for not only agility but being elastic to a fading face to face contact in the wake of disease pandemic, financial institutions have continued to strategize ways of devising ways of serving clients better. Zambia’s largest financial institution (FI) by both asset and profitability size, Stanbic Bank has unleashed a very important card under its sleeves after opting for an Artificial Intelligence (AI) client support solution across social media and chat platforms. The solution will provide real time 24/7 support across a range of frequently asked question (FAQs) on mobile banking,…
Today marks the official date for the book release ‘Braving The Odds,’ a memoir on perseverance, finance and faith. One of Africa’s best Chief Executive Officers and seasoned bankers, Mizinga Melu has released a book that details hurdles she has faced in her life journey to the top. Many know her as a pusher, especially in the banking sector where she continues to drive performance harder yet have little knowledge of her background and her deepest experiences which the book exposes. The memoir aggregates attributes of a thinker, strategist, mother, a believer in the faith and a fighter rolled in…