Zambia’s Manda Hill Shopping Mall on Great East road in Lusaka the capital.
Author: The Editor
A Gourock industry in Zambia.
Proflight Zambia CRJ100 aircraft at ORT in Johannesburg South Africa on 02 September 2019.
Africa’s second largest copper producer Zambia currently grapples with a rising debt and energy crisis that has caused deterioration in its credit posture. All top three rating agencies have lowered their assessments for the copper producer to CCC+/CCC/Caa2 (S&P/Fitch/Moody’s) citing balance sheet vulnerabilities and risks to growth. These risks continue to heighten as drought effects thicken causing an inflation spiral that pushed August CPI to a 3-year high of 9.3%. Power rationing hours have since doubled to (8) adversely impacting manufacturing pulse as the copper producer slides deeper into contraction as Purchasing Managers Index (PMI) readings headline below 50 for…
The central bank in Africa’s copper hotspot Zambia sold K483million ($34million equivalent) in treasury bills in Thursday 29 August debt sale. With K950million on offer, K541million bids amassed of which 89% were absorbed mainly in the 1 year tenor at 27.5%. Yields across the spectrum were unchanged with zero interest recorded in the 6 months tenor. Re-investments by commercial banks remain the key drivers of subscription for players looking to reprice their holdings in government securities. This auction was the 17 undersubscribed offering of the 18 debt sales in the year 2019. Risk premiums above inflation narrowed 50bps after August…
Zambia’s consumer price index for the month of August spiraled to 9.3%, 50 basis points from 8.8% in the mont of July. This was contained in a communique by the Central Statistics Office (CSO) in Lusaka the capital. The copper producer currently grapples with an energy deficit whose effects have transmitted to Business environment elevating the operational cost environment impacting the pricing architecture across the board. Drought effects have resulted in an upward food price trajectory that has fueled inflation to a 3 year high to levels last seen in November 2016. Read also: Zambia’s August CPI could surpass 9%,…
Stanbic Bank Chief Executive Leina Gabaraane shakes hands with Lafarge PLC Jimmy Khan.
The Central Statistics Office (CSO) is expected to announce Zambia’s August inflation this week. Our expectations are that consumer price index will surpass the November 2016, 9% mark fueled by energy bottlenecks and currency weakening effects manifesting in cost push pressure on the price index. Zambia currently grapples with energy’s poverty and food security risks exacerbated by drought effects of weak rainfall for 2018/2019 season. Currency pressure has been a consequence of increased asset sell-off pressure on the back of waning investor sentiment as offshore players and investors question Zambia fiscal consolidation efforts. Last Friday’s 23 August, Standards and Poor’s…
Just last week, the South African High Court ordered seizure of the Tanzania state carriers Airbus A22-300. Though it was vague as to the reason why, speculation points to a potential $41 million debt that the national airline owes South African Airline from 2017. Tanzania’s ATCL owes SAA $41.1 million from a failed JV since 2006 or former South African landowners who had their properties seized by Tanzanian Government. Thomas Chlumecky an Aviation expert advises on his linked in page that aircraft flying internationally for a state carrier are legitimate easy assets for seizure purposes by international creditors. “I have…
The central bank in Africa’s copper hotspot Zambia sold Kwacha equivalent of $32million (K423million) in bonds in an auction held of Friday’s 23 August. Appetite was just above a yard in local currency of which 42% was absorbed in allocation at cost representing a 25.6% subscription of the K1.65billion on offer. Sixty four percent interest was registered in the 5 year tenor that attracted K641million in bids of which K214million was absorbed at 32%. Yields in the 5 year widened 150 basis points from the last primaries that printed at 30.5%. Other tenors that attracted decent interest were the 2…