Union Gold Chairman Mark O’Donnell told the Ministry of Finance to be cautious of wreck-less experiments such as the sales tax proposal which was shelved. O’fonell bemoaned the effects of the sales tax proposal experiments on the Zambian business environment.
Author: The Editor
Zambia’s delegation during the issuance of the $750million 2022 dollar bond. The bond was 12 times oversubscribed and raised at a yield of 5.25%. Zambia has $3billion running in Eurobonds for maturities 2022,2024 and 2027.
Africa’s second largest red metal producer Zambia has shelved the sales tax proposal for 2020. This was pronounced in Dr. Bwalya Ng’andus debut budget presentation to parliament in the capital on 27 September. Dr. Ng’andu in his speech said: “Mr. Speaker, in the 2019 Budget Address, Government proposed to abolish Value Added Tax and replace it with Sales Tax. Following the pronouncement, a number of concerns were raised by various stakeholders, which included the cascading effect, negative impact on GDP growth and job losses through elimination of intermediaries in the supply chain. As a listening Government, we decided to carry…
The central bank in Africa’s red metal producer sold the Kwacha equivalent of $86.6million worth of treasury bills in Thursday 26 September auction that was 20% oversubscribed. With a cash flush market north of 1.4 yards in local currency into the debt sale, the BOZ recorded very bullish interest of K1.67billion of which K1.14 billion (at cost) was absorbed. This is the second auction the central bank is tapping into its 20% quota (above the K950million). Read also: Maturities and flush liquidity mop Kwacha treasury bills As expected demand for 1yr assets persists given the current yields of 27.5% while…
As Africa’s red metal producer grapples with 700MW energy deficit which has adversely impacted copper productivity, which the state intends to plug with power imports the Chamber of Mines has proposed that energy tariffs be inflation linked for the next 3 years until the cost of service study completes, Chamber President Goodwell Mateyo revealed as he shared the proposals made to the 2020 budget. Mateyo further echoed a new tariff evolution roadmap to be agreed with the full participation of industry and ZESCO to understand its working capital, restructuring and financing needs. “Ultimately, Zambia needs a joint approach to growing…
Headline inflation in Africa’s second largest copper producer is pointing 50 basis points north of 10% fueled by rising cost push inflationary effects. Zambia currently grapples with currency weakness amidst rising risks to growth exacerbated by drought and hydrological risks that have manifested in load management to ease pressure off the electricity grid. This has caused business disruption and elevated the operating cost environment for the business environment. Zambian consumers are bearing the brunt of power deficit effects that have transmitted to selling prices of food and non food items. With a recent fuel price hike and a looming electricity…
According to the International Copper Study Group (ICSG) world refined copper production declined by about 1% in 1H19 with primary production (electrolytic and electrowinning) easing by 1.5% and secondary production (from scrap) inching 1% higher. DRIVERS OF THE SLIDE Chile’s 38% decline in electrolytic refined output due to temporary smelter shutdowns whilst undergoing upgrades to comply with new environmental regulations. Total Chilean refined production (including Electrowinning) declined by 15%.India’s 33% slide in output on account of the shutdown of Vedanta’s Tuticorin smelter in April 2018.Zambia’s 28% refined output slow down as power supply interruptions, smelter outages and the tax environment weighed. General decreased…
According to the International Copper Study Group (ICSG) preliminary data reveals that global mine copper output slid by a margin of 1.4% in 1H19. The decline was fueled by a slide in output in Chile and Indonesia offsetting growth in other key producing nations. Chile’s productions ebbed lower by 2.5% on the back of lower copper ore grades while Indonesia’s concentrate production was a steep 55% down as it’s two key mines transition to different ore zones leading to temporarily reduced output levels. Other growth drivers in half year were Zambia and the Democratic Republic of Congo whose combined put remained flat…
ZAMBIA MARKETS SEARCH FOR CLUES IN 2020 BUDGET PRESENTATION Zambia’s Minister of Finance’s monetary lens to view the fiscal will be litmus tested on Friday, 27 September when Dr. Bwalya Ng’andu presents the national budget to parliament. The MinFin minister is the second former central banker to move to the fiscal side after Dr. Mulenga Pamu the current Permanent Secretary of Budget and Economic Affairs at the ministry. Will the two former central bankers view the fiscals differently with a monetary lens? Markets earnestly search for clues on what Friday’s pronouncement will mean for the money markets (treasury bills and…
As per tradition motorists in Africa’s red metal hotspot will queue up on 23 September, to fill up their tanks because effective midnight, the pump price of petrol and diesel will hike. The Energy Regulation Board sneaked in a memo as usual immediately after completing a price review that decided to adjust pump prices higher. Zambia currently grapples with energy poverty that has led to increased load management and rolling blackouts for a minimum of 8 hours with some parts experiencing half a day of outages. Barely a week ago Energy Minister in Africa’s second largest copper producer hinted a…