Africa’s second largest copper producer, Zambia, on 23 December appeared on the Africa Development Banks’s (AfDB) watchlist for a delayed $1.4millon obligation within a 30 day tenor. To this effects the African lender (AfDB) will suspended any further disbursements to Zambia in this regard. The red metal producer grapples with rising debt and balance sheet vulnerabilities which has cost it a bail out package with the Washington based lender the International Monetary Fund (IMF). The Zambian authorities confirmed having been written to by the AfDB team on 15 December reminding them of the outstanding obligation. In a press release from…
Author: The Editor
Here is what the week beginning the 22 December is forecast to look like: KWACHA BULLS. The copper currency is expected to maintain its rally steam after a bullish streak that saw a 6.7% firming up on Friday 20 December. A few dollar conversions are expected from players long dollars looking to raise Kwacha funding to meet salary obligations ahead of the festivities. However the rally steam is forecast to far but the local currency will be supported by suppressed activity given that most corporates have gone on industrial break and there are no pockets of dollar demand for either…
Rekha Mhango has just been appointed Deputy Governor Administration taking over from Dr. Tukiya Kankasa Mabula with immediate effect.
Ahead of the implementation of the cash reserve requirement, the Kwacha posted its strongest one day rally to close Friday 20 December below 13 for a unit of dollar. Having opened at levels of 14.3/14.25 the red metal currency was on a bullish streak hitting intraday highs of 13.4/13.45 levels last seen on October 10. The currency bulls were supported by dollar conversions by miners seeking to fund festivity payroll obligations. Zambia’s mining companies are the largest suppliers of foreign exchange on the financial markets. The copper currency has in a space of 2 weeks reversed losses by 15% after…
Fitch rating agency affirmed Zambia’s Long-Term Foreign-Currency Issuer Default Rating at ‘CCC’. This was according to a note issued by the international rating agency on its website. The rating reflects the government’s high external financing requirements, combined with a fall in official foreign exchange reserves; high and rising government debt in the context of an ambitious capital expenditure programme; and constrained access to domestic and external financing. Elevated debt to GDP ratio in 2019 Zambia’s reported fiscal outturns indicate that the deficit has narrowed on a cash basis in 2019, but the build-up of domestic arrears and the materialization of…
An emerald at Kagem Lufwanyama operation in Zambia.
With over two yards of Kwacha liquidity into Monday 23 December, central banks implementation date of the new 9% cash reserve requirement, purchasing power in Thursday 20 December government security sale was anemic as market players hedge liquidity positions ahead of new statutory reserve ratio. With K1.7 billion into yesterday’s treasury bill auction, the Bank of Zambia (BOZ) mopped the entire K279 million appetite recorded in bids. Most banks shied away from participation as they preserved their liquidity ahead of the 23 December effective date for the recently statutory reserve requirement to 9% from 5% with daily compliance going forward.…
The red metal used to manufacture conductor wires is trading above $6,200 a metric ton on the London Metal Exchange (LME). In London copper is trading for $6,182 metric ton while in Asian trade copper was trading for RMB49,600 ($6,978/mt). The base metal markets have cheered the US – China trade phase one deal which allays fears of slowdown in Chinese economic growth. The worlds second largest economy recorded higher than expected retail sales and industrial output for November against median forecasts suggesting that Sino – US trade war effects could be detenting. Political risks from Brexit have subsided sending…
Nava Bharat Maamba Coal plant. MCL plant is back on and is firing 135MW into the grid to cushion part of Zambia’s energy deficit.
Tree logs at a ZAFFICO plantation.