L-R: MTN Zambia CEO Bart Hofker, Group Deputy Chief Executive ABSA Regional Operations Peter Matlare, ABSA Zambia Managing Director Mizinga Melu and MTN Zambia Chief Fintech Officer Komba Malukutila.
Author: The Editor
The Bank of Zambia in Thursdays 13 February, treasury bill sale sold K1.54billion worth of treasury bills in deeply oversubscribed auction which exceeded its 40% borrowing limit. The central bank reserves the right to fill up to 40% above the debt sale size of K950million, which translates to a maximum borrowing limit of ZMW1.33billion. Increased appetite for short dated govie risk. Bids into the treasury sale were K1.88billion of which 81.6% appetite was absorbed representing a bid cover ratio of 162%. Fifty seven percent of the allocated amount was in the one year tenor while the 6m and 9m were…
Zambia’s gross foreign exchange reserves figure for December 2019 reported at the economic briefing on 12 February by Minister of Finance Dr. Bwalya Ng’andu revealed muted economic activity. The copper producers reserves rose a marginal $40million to $1.45billion from the period June to December 2019 translating to an inverse growth in import cover to 2.1 months from 1.6 months. The increase infinitesimal growth was attributed to net off taker dollar purchases from the open market as the central bank is a major player in its quest to shore the weak levels coupled with the build up from the mines that…
Minister of Finance Dr. Bwalya Ng’andu rings the bell well ahead of Zaffico trade debut on the Lusaka Securities Exchange.
The central bank in Africa’s second largest producer, Zambia will hold its first rate decision meeting next week beginning deliberations on the 17 February with the announcement on monetary policy stance to be made on Wednesday 19 February. The last Monetary Policy Committee (MPC) meeting hiked the benchmark interest rate 125 basis points to 11.5% to curb a currency slide that yielded little fruition until the central bank resorted to tighten the cash reserve requirement 400 basis points higher to 9% effective 23 December 2019 that saw the mopping of K1.6billion out of the financial system. Inflation driven monetary policy.…
Zambia’s Finance Minister Dr. Bwalya Ng’andu on 12 February in his economic briefing assured the nation that his ministry was engaging the Washington based lender for a bailout package. Dr. Ng’andu preempted the International Monetary Funds (IMF) next visit to Zambia between 18-22 March a period with which a team would court the MinFin on various issues ranging from debt sustainability to overall fiscal posture. Bailout package before 2021 Polls? Responding to a press query as to whether or not Zambia would be granted a package before the 2021 polls, the Minister categorically stated that the IMFs condition to a…
Zambia’s decongest Lusaka infrastructure project on Great East road in the capital.
Stanbic House on Addis Ababa Drive. Stanbic bank was the top earner for the year 2019 with a record PAT of K449.3million setting the highest watermark no financial institution has recorded.
The recent spare of corona virus infection in Asia has rattled financial and commodity markets with growth forecast pace for the second largest economy trimmed to 5.5% for 1Q19 and 5.8% FY20. Airline and tourism stocks wobbled significantly while pharmaceutical and gold stocks rallying as demand for safe haven assets ebbs higher. The virus has cost the stock markets over $700billion in asset valuation triggering the Peoples Bank of China’s (PBOC) liquidity intervention and slashing of key benchmark lending rates to cushion impact. One of the critical markets impacted has been crude price slide with WTI futures trading at lows…
According to Markit Economics/Stanbic Purchasing Managers Index readings for January headlined 47.5 compared to 46.9 in December. (Readings above 50 signal business improvement while those below signal deterioration in business activity).Driving the weakness was a spike in the operational cost environment on the back of currency depreciation in the month of January. Zambia’s private sector pulse has been in contraction since March 2019 dictated by similar key themes being lack of liquidity, currency depreciation and an elevated operational cost environment exacerbated by energy price risks. “Business conditions remained subdued with push – through effects of rising inflation and a weak…