Author: The Editor

Africa’s second largest copper producer has a plethora of events ranging from a rate decision announcement on Wednesday, treasury bill sale on Thursday and a weak Kwacha throughout the week. BENCHMARK INTEREST RATE DECISION Amidst rising inflation pressures the central bank’s monetary policy committee will this Wednesday announce its benchmark interest rate. The last session hiked rates 25 basis points to 9.5%.m Cumulatively the rate hike is 50 bps while the cash reserve ratio was adjusted 250bps upwards to 11.5% for both local and foreign currency a fortnight to the February meeting. This action was aimed at curbing a currency…

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Africa’s second largest copper producer Zambia has for the second month recorded surging interest in its government paper as offshores remain bullish on its long term outlook. The Southern African nation attracted K5.1 billion worth of nominal bids in its fixed income sale held on Friday 18 August for which the central bank accepted K4.6 billion worth of nominal appetite. READ ALSO: Amidst Debt Restructuring Complexities, Kwacha Bonds Continue to be an Attractive Carry Trade Zambia’s bonds are a good carry trade given the current yields in the 20’s that most players seeking to house their liquidity. In the middle…

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The All Share Index of the local bourse in Africa’s second largest copper producer, Zambia is at an all-time high after taken a positive cue from the Airtel Networks share price sprint over the last 3 months. Airtel Network stocks representing the telecommunications sector are trading for K43.5 a share, up 152% year to date to earn fifth place on the market capitalization score board at K4.52 billion. The Lusaka Stock Exchange Index closed 8,696.51 points. It is reporting season for pension funds in the Southern African nation, a period that they ideally rebalance their respective portfolio’s. Underlying drivers of…

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Africa’s second largest red metal hotspot will seek to raise K2.6 billion worth of funding in its eighth fixed income sale of the year this Friday 18 August 2023. Zambia’s central bank could see increased purchasing power in Fridays Kwacha bond auction as the Southern African nation seeks to raise finance for some of its fiscal projects using the domestic money markets. Hamstrung with debt for which it successfully renegotiate a $6.3billion bilateral obligation under the G20 common framework. In the July bond sale, offshore participation surged as the copper producers outlook brighten in the wake of an improved outlook.…

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The central bank in Africa’s second largest copper producer will on Monday 21 August commence monetary policy deliberations after which Governor Denny Kalyalya will announce the ruling benchmark interest rate on Wednesday 23 August. This rate decision meeting will likely focus on the rising risks to growth to include environmental headwinds such as El Niño weather forecast to impact power generation and agriculture output for 2023. Earlier last month the MinFin shared the 2023-2026 Medium Term Expenditure Framework that downgraded the red metal producers growth target to 2.7% for this year which will rebound to 5.0% by 2026. From the…

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The central bank in Africa’s second largest copper producer Zambia successfully raised K4.09 billion ($204 million equivalent) proceeds in the seventh and strongest Kwacha bond sale of the year. Of an array of K2.6 billion worth of fixed income assets on offer, bids totaled K7.60 billion, levels unseen this year as offshore demand surged in search for yield. This was in view of the red metal producers economic outlook. This outcome marks the second oversubscription of the year. The Southern African nation is currently on the cusp of an economic turnaround in the medium term with a private debt restructure…

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Looking for a home for your liquidity, look no further than Zambia, Africa’s second-largest copper producer. Investor classes that rode the tide when the wave was turbulent will likely harvest healthy margins as the Southern African nation readies for an economic rebound. Zambia’s outstanding Eurobonds appreciated 17.0% on average from the week global markets flirted with the idea of debt restructuring to the period leading to the Emmanuel Macron Global Financing Summit in Paris to date. Zambia’s 2024s are currently priced at 57.633 cents, 16.33% firmer than May levels but still 41.88% below its 2012 issuance price of 99.174 while…

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Africa’s second largest copper hot spot Zambia, made headlines on 22 June when an announcement was made at the Finance Summit about a breakthrough in debt restructure proposal. This deal was brokered by French President Emmanuel Macron who served as co – chair of the official creditors committee with China after months of deliberations. The restructure assurances come 22 months after Hakainde Hichilema’s ascension to power and exactly 10 months after the International Monetary Fund (IMF) board approved a $1.3 billion extended credit facility to help with efforts to restore fiscal fitness in the Zambian economy. A relief of $6.3…

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It could be debt restructure o’clock in Africa’s second largest copper producer Zambia. At the Summit for a New Global Financing Pact starting today in France, Zambia could get its long awaited breakthrough surrounding creditor assurances a development that will unlock disbursement of the second tranche of the International Monetary Fund Extended Credit Facility. Much as this week is studded with sanguine debt restructure expectations clarity, the Southern African nations central bank will seek to sell K2.6 billion worth of bonds in its sixth fixed income sale of the year. The week has seen currency volatility with massive swings exceeding…

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In the labyrinth of a debt restructure, Africa’s second largest copper hotspot Zambia could be on the cusp of a long awaited breathrough in the week. Markets eagerly await outcome of a proposal surrounding Zambia’s debt plan as creditors deliberate on Wednesday. The Southern African nation seeks to access the second tranche of the $1.3 billion extended credit facility amount of $188 million earmarked to be disbursed on condition that creditors provide assurances on restructure. READ ASLO: Creditors Hope To Propose Zambia Debt Plan This Week At the last International Monetary Fund and World Bank Spring meetings, China relaxed its stance…

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