Author: The Editor

Johannesburg Stock Exchange listed and Africa’s largest bank by asset size Standard Bank (ISIN:ZAE000109815) forecasts economic recovery in 2021 post COVID. According to stock exchange news on the South African bourse, for Financial information provided to the Industrial and Commercial Bank of China (ICBC) Limited, the blue bank reported improved economic activity in 3Q20 across Africa regions covering the Sub-Saharan Africa (SSA). “Despite these positive developments, we remain on high alert. Our business continuity management programmes, including safety protocols, remain in place. Over 70% of our employees are still working from home and many will continue to do so for…

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Credit Default Spreads – CDS on Zambia’s dollar bonds widened significantly as default risks loom. On average credit spreads on Zambia’s bonds maturing 2022 are 5,601.23 basis points while the 2024s are 3,826.87bps and bonds maturing 2027 are spread at 2,992.23bps above benchmark similar tenor US denominated assets. Zambia’s dollar bonds are the worst performers of all emerging and frontier market date with the lowest price of 41.85/44.63 on its 2022’s, 42.23/44.92 on its 2024s and 40.44/43.62 on its 2027s in Bid/Ask. The SD S&P rating will have steep credit impairment implications for the banking sector in line with IFRS9…

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Credit rating agency Standards and Poor’s has lowered Africa’s second largest copper producer’s credit assessment to Selective Default – SD from ‘CCC-‘. This is S&Ps third rating adjustment of the copper producer this year and the second in the second half of the year. Barely a week after Zambia’s solicitation request to dollar bond holders on coupon payment freeze from 14 October 2020 to 14 April 2021, S&P ebbed the red metals credit rating to ‘CCC-‘ from ‘CCC’ with negative outlook after Fitch rating agency the same week slid the Southern African nation deeper into junk at ‘C’ from ‘CC’…

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The recently released Absa Africa Financial Markets Index for 2020 revealed key innovations and sustainability initiatives in product offerings in COVID era. Disease pandemic has had a doubled edged impact with some countries offering products such as green bonds to fund climate change initiatives. Nations that saw innovation include Nigeria and Kenya with green fixed income issuances. Nigeria, Africa’s largest economy is set to launch its third sovereign green bond while East Africa’s largest economy issued its debut green bond in 2019, with proceeds used to finance sustainable student housing in Nairobi. The government has introduced financial incentives to invest…

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COVID19 has been a digital accelerant globally for business seeking to stay afloat in turbulent times given supply chain disruptions and the need for human capital to socially distance which had an adverse impact on operating models for many. Zambia was not spared from the effects of disease pandemic in business ecosystem. Speaking during panel one discussion of the recently ended eCommerce Expo and Conference 2020, Stanbic Bank Head Data Office Francis Mumbi highlighted an improved trust gap in adoption of digital commerce compared to 3 years ago with immense work to be done nonethless. Mumbi attributed increased technology adoption…

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ECommerce as an enabler must be embraced by business entities to aid Zambia’s “V“ shaped recovery. Speaking at the eCommerce Expo and Conference for 2020, Economics Association of Zambia National Secretary Mutisunge Zulu said eCommerce should be exploited by businesses to aid recovery from effects of COVID19. In the first panel discussion, Zulu placed greater importance on two factors of production as part of the Cobb Douglass econometrics productivity function namely labor and technology in this disease pandemic period. Without a healthy labour force, COVID has shown us that there would be no businesses let alone technology, an under played factor…

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Speaking at the eCommerce EXPO and Conference Zambia for 2020, Standard Chartered Bank Managing Director for Retail in the United Arab Emirates -(UAE) Sonny Zulu echoed the need for shop set ups with the right payment platforms. During a virtual session held on the 17 October, Mr. Zulu revealed the need for businesses to embrace eCommerce as a channel to help boost revenues on product offerings while adapting to the new normal. While acknowledging that COVID19 has yielded both negative and positive disruption effects, there is need for entities to harness the learnings so as to improve respective contributions to costs…

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LUSAKA (The Business Telegraph):- The celebrated 6 pillar barometer, the ABSA Africa Financial Market Index 2020 revealed that Zambia’s market overall performance ebbed a notch lower to ninth place with a score of 53 out of a 100. This reflects a 2 point deterioration from 2019 level of 55. Revealed during an AFMIndex launch on October 14 during a virtual launch webinar, Zambia’s currency slide of 40% year to date was the steepest observed of the 23 countries tracked by the index while liquidity woes weighed the copper producers performance on the index driven by disease pandemic effects pricing into…

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