Mopani Copper Mine Mufulira operation in the Copperbelt of Africa.
Author: The Editor
March Purchasing Managers Index (PMI) headline readings revealed a COVID19 related contractions transmitting to the business ecosystem through currency depreciation, tourism and fresh cut flower industry exposures and supply disruptions impacting aggregate demand and input prices. Zambia, South Africa, Kenya, Uganda, Ghana to mention but a few had their manufacturing activity eroded by disease pandemic effects. Currency depreciation weighs Zambia’s factory activity. The copper producers headline readings slid deeper into contraction to 44.7 from 48.5 in February as input inflation was at a record high given currency depreciation effects, energy risks and lack of liquidity in the market. The copper producer…
A miner processing copper sheets in the Copperbelt of Africa.
In a press release dated 03 Apr, the central bank in Africa’s red metal hot spot Zambia announced a set of measures to curb COVID19 related credit risks. The Bank of Zambia will open credit lines to the tune of K10billion ($540million) in a Medium Term Refinancing Facility (MTRF) to commercial banks to allow for liquidity provision to its clients. This measure will be targeted towards banks. To Curb Currency Volatility. The central bank also stated in its release that it will review the interbank foreign exchange rules to address to curb volatility in the currency market. The Zambian Kwacha is…
As the world grapples with COVID19 effects, markets continue to shave asset valuation causing a plummet in demand for riskier assets that has fuelled a sharp uptick in safe haven assets such as U.S treasuries and gold. Key economies like United States and China are set to slide into recession as they suffer business disruption in factory activity and supply chains. Demand for commodities such as copper and crude have significantly ebbed lower causing fiscal balancing concerns for ‘dutch diseased’ nations. Copper on the London Metal Exchange (LME) slid to lows of $4,343 per metric ton and has reversed some…
In a press briefing held on 27 March, Zambia’s Finance Minister revised the red metal producers growth rate to below 2% from the earlier target of 3.2% on account of COVID19 impact on the economy. Dr. Bwalya Ng’andu in his address said Zambia’s growth pace will be dependent on the severity of the COVID19 duration. COVID19 has added another layer of pressure on the Zambian fiscals that already grapple with energy bottlenecks and fiscal vulnerabilities. Zambia will be looking to tap into multilateral pools of funds such the IMF which will be made available to nations fighting COVID19. The Minister…
Despite being weighed by declining foreign exchange reserves and weak capacity of local investors, Africa’s copper producer Zambia remains the eighth best ranked financial market. This was revealed by the Absa Financial Market Index (AFMIndex) 2019 has revealed. The Absa Index tracks 20 jurisdictions for market development on the continent across an array of six pillars namely market depth, access to foreign exchange, capacity of local investors, macroeconomic opportunity, market transparency, tax and regulatory environment and legality and enforceability of standard financial markets master agreements. (*Maximum score on the index is 100) Illiquidity in local and international debt. Unattractiveness of…
In a stop press release, premier and private airline Proflight Zambia in Africa’s second largest red metal hotspot has increased its flights to Johannesburg as Africa’s carrier South African Airways grounded it regional operations following COVID19 disease pandemic. Proflight Zambia announced on 21 March that it will be increasing the number of flights to Johannesburg via Lusaka to absorb the demand from the travel disruption SAAs decision would have caused. Zambia enjoys fair share of business and trade with South Africa to the extent that suspending flight services will have adverse effects on commerce which the local carrier has stepped…
Zambia’s $522mn Copperbelt international airport project in Ndola.
Zambia’s celebrated private airline, Proflight Zambia Ltd on 20 March announced a flexible ticketing and rigorous hygiene standard policy to reassure its clientele. This follows the advent of COVID-19 pandemic that has hit the globe resulting in massive business disruption. Regional and International airlines are on the verge of bankruptcy as border closures and lock downs have weighed demand for air travel in the last three weeks. Key airlines such as South African Airways (SAA) and Emirates have temporarily suspend flights in and out of Zambia which Proflight will seek to leverage off to service local and international routes. Read…