French based asset management firm Lazard Freres Gestion, will reorganize Zambia’s liabilities according to a note shared by its Finance Ministry. Africa’s copper producer, Zambia is in the process or reorganising its external debt of $11.23billion comprising $3billion of dollar bond debt and about 60% being project finance debt with the Chinese in addition to other private creditors. According to a letter addressed to bidders of the tender namely, Newstate Partners, Deutsche Bank and Rothschild & Company, ABSA Bank and Barclays PLC, White Oak Advisory Limited and Lazard Freres, the MinFin notified all bidders after completion of evaluation of the…
Author: The Editor
A miner processing copper sheets at a mine on the Copperbelt of Africa in Zambia.
In the week beginning the 24 May, the Kwacha is expected to extend its bulls, while lack of appetite for long dated government securities could result in dismal outcome in Friday’s 27 auction. Higher inflation readings are also expected this week. Kwacha Bulls. The currency in Africa’s copper producer is expected to be supported by corporate Dollar conversions to raise local currency to meet month-end payrolls. The copper currency remains vulnerable in a disease pandemic era weighed by feeble reserves at $1.37billion. Outside this window (after month-end) the currency will be vulnerable to increased demand from central bank purchases and…
Following monetary policy easing on Wednesday 20 May, the Bank of Zambia lowered its Overnight Lending Facility – OLF by 225 basis points to 25.75%. In a memo dated 21 May to all commercial banks, BOZ advised that the OLF rate would be adjusted to 25.75% while maintaining a margin of 16.5% above the ruling benchmark interest rate as previously. Overnight lending facility is the interest rate that the central bank will charge a commercial bank from it in emergency circumstances overnight. The rates are very punitive to drive a behavior that forces banks to obtain funding from the interbank…
With K1.1billion worth of liquidity into Thursday 20 May treasury bill sale and maturities in the pipeline, the central bank in Africa’s copper producer sold a record K2.64billion of government securities. Appetite for securities pulsed K2.6billion of which K2.17billion was absorbed with K1.23billion housed in the 1-year paying 29.0%. This outcome is the third oversubscription in a row and the highest uptake so far in 2020. Yields remained pat. This debt sale was a day after the central bank cut rates 225 basis points to a record 9.25% in a growth suppressed environment. With the Bank of Zambia targeting to…
The central bank in Africa’s second largest copper hotspot, Zambia, cut rates by an aggressive 225 basis points to 9.25%, levels last seen in 2012. Amidst a rising inflation environment, Dr. Denny Kalyalya the governor was faced with a very tough call as the Monetary Policy Committee -MPC prioritized growth over taming inflation in a COVID19 disease pandemic era. The Bank of Zambia joins other central banks such as the Bank of Ghana, Bank of Kenya, Central Bank of Nigeria, Reserve Bank of South Africa and Central Bank of Mauritius in a rate decision through the COVID period that has…
Following deliberations for the second rate decision in Africa’s second largest copper producer Zambia, Dr. Denny Kalyalya the Bank of Zambia head announced a 225bps rate cut to 9.25% on Wednesday 20 May. A forecast by the Kwacha Arbitrageur, amidst rising inflation last recorded at 15.7%, the central bank decided to prioritise growth as COVID19 stings the copper producers economy. The Bank of Zambia remains alive to inflationary pressures and will address them with its presence in Open Market Operations – OMO.Read also: Bank of Zambia could ease rates in a shriveling economy amidst rising inflation Zambia’s growth forecast is…
Bank of Governor Dr. Denny Kalyalya speaks on as Deputy Governor Operations Dr. Chipimo looks on.
Germany has made available EUR18.5million to Africa’s second largest copper hotspot Zambia for COVID relief purposes. This is part of Germany’s EUR525millionGlobal Response Initiative in addition to EUR1.57billion earmarked for global health projects. Through global humanitarian appeals from the United Nations and the International Red Cross and Red Crescent Movement, the largest economy in the Euro area is assisting developing nations with relief packages. Zambia is one African nation that is yet to receive assistance from the Washington based lender IMF after key economies have been assisted with Nigeria allocated $3.4billion, Ghana $1billion, Ivory Cost $886million, Kenya $739million to mention…
Natsave Chief Executive Officer – Mukwandi Chibesakunda.