Author: The Editor

The MinFin in Africa’s second largest copper producer Zambia has announced that it see’s the fiscal deficit at 5.8%. Finance Minister Situmbeko Musokotwane said in his 2024 budget presentation themed, unlocking economic potential, that the Southern African nation will narrow its deficit to 5.8% against a targeted 7.7% and further targets to lower the gap to 4.8% next year. Musokotwane forecasts expenditure to close the year at K157 billion compared with K167 billion presented in September 2022. Amidst constrained resources, Musokotwane 2023 budget was circa K5 billion less than previous years and has demonstrated effective utilization of funding in a…

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Africa’s second largest copper hotspot Zambia will today witness the presentation of its 2024 fiscal estimates of revenues and expenditures. The Southern African nation faces a array of headwinds that gravitated around high cost of living with inflation at an 18 month high, local currency on a losing streak north of 20, sliding red metal production waning tax revenues and is still in the labyrinth of a debt restructure. Finance Minister Situmbeko Musokotwane will present his third budget under the auspices of the new dawn government that have taken on fiscal vulnerabilities from an earlier regime but have scored significant…

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The stock market in Africa’s second largest copper producer Zambia has seen a fair share of activity this year with significant rallies across energy, mining, banking and agribusiness stocks. Over the last 3-years the local bourse only has one corporate with a market capitalization of circa K5 billion, ZCCM-IH the state mining investment vehicle. Today the securities exchange has a total of 4 stocks above the K5 billion benchmark reflecting growth both in shares outstanding and price sprints. On Monday September 25, Zambia National Commercial Bank Plc (Zanaco) became the fourth mega cap stock to feature of the LuSE score…

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The last week of every month in Africa’s second largest red metal producer is petroleum energy o’clock. The energy regulation board will this week be expected to announce the ruling petroleum prices for the month of October. With a month riddled with oil market jitters following Russia and Saudi Arabia’s OPEC+ action to extend supply to year end and most recently an announcement by the Kremlin to ban gasoline and diesel temporarily, global crude markets saw international Brent and West Texas Intermediate (WTI) futures flirt with highs of $95 and $90 a barrel respectively in the last trading sessions. Much…

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For the month of August in Africa’s second largest copper producer, the gauge measuring manufacturing pulse showed a contraction for the first time in 4 – months. According to a Markit Economics report released in September, the Southern African nations Purchasing Managers Index (PMI) slid below the 50 mark to 49.2 from 51.2 previous month. (50 is the benchmark of expansion ->50 and contraction – < 50). READ ALSO: What the FX Markets are Signaling about Zambia’s Manufacturing, Agribusiness and Economic RecoveryThe reports cites some persistent themes ranging from lack of money and currency depreciation that scaled input prices higher.…

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This week, the mining outlook in Africa’s second-largest copper producer was boosted with the announcement of the restoration of operations at Konkola Copper Mines. Minister Paul Kabuswe, at a joint press session with Vedanta and ZCCM-IH plc officials, announced the landmark resolution of the 2-year-long mining impasse that halted operations at the Konkola Deep Mine. This followed an illegally executed liquidation of the mining asset for purported license breaches. The unfortunate move has cost Zambia’s mining production over the last two years. At the liquidation stage, Konkola Copper Mines owed counterparties like ZESCO and Copperbelt Energy Corporation colossal sums for…

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Africa’s second largest copper hotspot Zambia is grappling with a foreign exchange quagmire whose symptoms manifest in persistent depreciation. The paradox surrounding whether a weak or firmer currency is preferable rests with which side of economic activity players are positioned, supply or demand. The copper currency, the Kwacha has been on a losing streak against what most had expected especially after a $6.3-billion bilateral debt treatment was sealed in June on the sidelines of the Emmanuel Macron led Global Finance Summit. Let alone when the International Monetary Fund board approved disbursement of the $188-million second tranche of the $1.3-billion extended credit…

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The central bank in Africa’s copper producer Zambia, on 23 August 2023 raised its policy interest rate for the third time in the year by 50 basis points to 10.0%. This decision was arrived at given rising price pressures as the Southern African nation foresees environmental headwinds in bad weather expected to dent agriculture production and power generation. Inflationary pressures remain persistent with a climb in July inflation that headlined 10.3% outside the Bank of Zambia target range of 6-8%. This announcement signaled to economic fragility and macroeconomic instability. The central bank monetary policy communique was express about inflation expectations…

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Anheuser Busch InBev local subsidiary, Zambian Breweries Plc recorded a 242% rally in net earnings to K249 million for first half of 2023. The strong performance was fueled by increased pricing without loss of sales volume and cost efficiencies exhibited by a higher gross, operational and net margins, a testament of post pandemic recovery. Sales grew 12.3% to K1.84 billion as volumes infinitesimally edged higher 0.3%. Business operations in the copper producer post COVID has seen recovery in both the recreation and hospitality industries whose sales pulse has rebounded. Zambian Breweries has seen premium product growth which continues to enable…

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The central bank in Africa’s second largest copper producer Zambia has raised its benchmark interest rates by 50 basis points to 10.0% in the quest to tame inflationary pressures in sight. This rate adjustment is the third action this year by the rate decision committee bringing the total to 100 bps. The decision was announced by Bank of Zambia Governor Dr. Denny Kalyalya in Lusaka the capital on 23 August. Todays announcement makes lending 50bps costly for Zambian borrowers. READ ALSO: The Week Ahead – BOZ Rate Decision, Kwacha Treasury Bill Sale and Kwacha BearsThe monetary policy committee communique cites…

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