Africa’s copper hotspot, Zambia on 20 April unveiled an array of fiscal stimulus measures to fight COVID19 effects. Speaking in a press briefing in the capital Lusaka, Finance Minister Dr. Bwalya Ng’andu announced measures in consultation with the private sector and various bodies to include suspension of tax and interest penalties incurred during the coronavirus period for which the Zambia Revenue Authority – ZRA will guide on in due course. The MinFin head further announced suspension of customs duty and medical levies of products that will be used to fight the disease pandemic. Further Dr. Ng’andu said medical supplies such…
Author: The Editor
In the middle of a lockdown amidst COVID19 pandemic, the private sector unveiled an economic rescue plan to supplement the fiscal side of the economy. Business leaders in Africa’s copper hotspot have formed a business council that is working around the clock to assist Government cushion the disease pandemic effects on both the health of the Zambian people and the business ecosystem. The Business Coalition Council Emergency Taskforce (BCCET) was birthed out of deteriorating economic conditions that prompted business leaders to drive a united private sector agenda to assist government to try and manage the impact of the pandemic in…
International rating agency Fitch has adjusted Zambia’s Foreign Currency Long Term Issuer credit assessment to ‘CC’ from ‘CCC’ according a note carried on its website. The rating agency has cited widening default risk fueled by COVID19 disease pandemic effects adding to already existing fiscal vulnerabilities. The copper producer is faced with falling copper prices, depleting reserves and an increasing debt service burden widening its fiscal deficit forecasts. This downgrade comes barely a fortnight after Moody rating agency downgraded Zambia’s rating to Ca with stable outlook from Caa2 with negative outlook. Zambia earlier approached the International Monetary Fund (IMF) with a…
The International Bank for Reconstruction and Development (IBRD) went all 8 yards ($8billion) on 15 April to issue paper whose proceeds will go towards fighting COVID19. The triple A rated supranational sold $8billion of notes at a yelled of 0.704% in lots of $1,000 that attracted $12.5billion in appetite from over 190 investors. The COVID bond will be listed on the Luxembourg Stock Exchange. The bond issuances are the banks commitment towards sustainable development goals for 2030. Lead arrangers to the transaction were Barclays and BMO Capital while Deutsche Bank, Wells Fargo, Castle Oak Securities were co- lead arrangers. This…
The central bank in Africa’s red metal hotspot Zambia, on 14 April provided credit guidelines on the operationalisation of the 3-5yr Medium Term Refinance Emergency Facility (MLTF). In response to the business ecosystem adverse autopsy effects of COVID19, the Bank of Zambia provided a K10billion ($545million) stimulus package to aid the financial sytem cushion impacts of a suppressed growth environment given the business disruption effects on aggregate demand. At what cost? Pricing is pegged at a 100basis points above the current Monetary Policy Rate – MPR (11.5% +100bps = 12.5%). This is aimed at spurring onward lending, refinance and restructure opportunities…
Global lender Citi on 08 April appointed Ms. Lowani Chibesakunda to Head it’s Zambian operation taking over from Ferdinand Zauma. She becomes the first female Chief Executive Officer and Managing Director of Citibank Zambia. Chibesakunda is a seasoned banker with experience over a decade and half whose career genesis commenced in Citibank from Junior to Senior Relationship Manager rising all the way up to Head of Corporate and Investment Banking before she acted as Chief Executive Officer after Ferdinand Zauma exited. She holds a BA (Hons) Financial Services from West of England, Bristol University , MBA from Herriot Watt University…
One hundred Kwacha notes, Zambia’s biggest denomination in legal tender.
As Africa’s red metal hotspot grapples with a currency slide quagmire that has seen the copper currency hit all-time lows, the central bank stepped in to curb volatility through a ‘15 pip’ point system. As part of revised foreign exchange trading rules the Bank of Zambia prescribed a constrained pricing mechanism that set the trading pips to 15. This means that foreign exchange pricing will have an additional decimal place to four (from three) with 15 at the end i.e. if today’s exchange rate was 18.750 then the proposed pip system would allow for next pricing to 18.7515. The revised…
The central bank in Africa’s copper producer, in a memo to commercial banks signed by the Deputy Governor Operations Dr. Francis Chipimo on 07 Apr, issued more relaxed classification and provisioning credit risk rules. These measures were necessitated by deepening credit and liquidity risks as a consequence of COVID19 pandemic effects that is forecast to adversely impact counterparty credit quality. Zambia’s business pulse will in the immediate to medium term bear the brunt of a deterioration of macroeconomic factors exacerbated by disease pandemic such as currency weakness and a steep decline in aggregate demand. March Purchasing Managers Index (PMI) headlined…
The central bank in Africa’s copper producer, in a memo to commercial banks signed by the Deputy Governor Operations on 07 Apr, issued more relaxed classification and provisioning credit risk rules. These measures were necessitated by deepening credit and liquidity risks as a consequence of COVID19 pandemic effects that is forecast to adversely impact counterparty credit quality. Zambia’s business pulse will in the immediate to medium term bear the brunt of a deterioration of macroeconomic factors exacerbated by disease pandemic such as currency weakness and a steep decline in aggregate demand. March Purchasing Managers Index (PMI) headlined 44.7 from 48.5…