Factory activity in Africa’s red metal producer, Zambia, slid sharply into contraction as purchasing Managers Index (PMI) readings headlined 46.9 from 48.7 in November. Three (3) persistent themes drove the factory activity weakness namely lack of liquidity, autopsy effects of load management and currency depreciation exacerbating input inflation. These themes have dominate the private sector space which is still forecast to bear the brunt of energy price risks given the 26 December announcements on 10% fuel price hikes and an energy regulation board on the power utilities application for higher and cost reflective tariffs. Zambia for the tenth month in…
Author: The Editor
In what was an exciting banking landmark deal that was to see Kenyan giant Equity bank acquire four loss making banks owned by AtlasMara at a discount, deteriorating sovereign risks in Zambia, Zimbabwe and Mozambique save Rwanda are causing valuation quagmires for the East African giant. The deal was structured in such a way that no cash would change hands but the turbulent fundamentals are rather putting Equity bank at the receiving end of a hard bargain in proceeding with the transaction. Zimbabwe’s hyperinflation and exchange rate instability, while Mozambique’s economic woes and Zambia’s fiscal stresses manifesting in rising rates…
In my interactions with many corporate executives, I get the sense that if the business units they lead do not generate revenues, then the discussion around return on investment should be one that they are exempt from. Well, the answer is ‘that is a misconception.’ Business landscapes have evolved with technology at the center of ferocious competition due to excellent product offerings. Because competition is stiff and the complexity of environment litigation is highly likely. So we do need the legal profession to not only represent businesses but interpret legal documents as entities manage legal risks. Nothing can happen with…
Zambia National Building Society (ZNBS) has announced the exiting of its Chief Executive Joseph Chikolwa on 03 Jan. This was confirmed in a statement by board chairman Dr. David Nama. The ZNBS board has appointed chief finance officer Mildred Mutesa to act in the interim as a replacement is sought. The Kwacha Arbitrageur.
Despite a rosey and thorny interest rate theme for Africa’s second largest copper producer investment returns for various asset classes have varied depending on duration. In economic turbulence as one that Zambia faces, risk appetite skews towards shorter duration assets compared to longer dated fixed income assets. In an interest bearish environment, a new asset class in an unregulated market has blossomed with earning returns in excess of 50-75% over a one year period surpassing treasury bills, stocks and fixed deposits. One year treasury assets earned 27.5%, while investing in the best performing stock Africa Explosives Ltd PLC earned investors…
Mining activities in Africa’s red metal producer.
A decongest Lusaka project on Arcades roundabout in Africa’s red metal producer Zambia.
Refined copper processing at a Zambian miner on the Copperbelt Province.
The currency in Africa’s red metal producer, Zambia, extended its losing streak on Monday 30 Dec. as Dollar liquidity dried up in the financial markets. Having opened at 13.95/13.85 for a unit of safe haven currency the green back, foreign currency demand from petroleum dealers reversed gains the copper currency has booked into Christmas period. The Kwacha shaved over 2.5% post Xmas to the weekend ended 27 December. The Kwacha closed trading on Monday New Year’s Eve at 14.05/13.95 after hitting an intraday low of 14.22/14.15 which it reversed right in time for market close. Most players were in very…
Former Finance Minister Honorable Felix Mutati.