Think tank in Africa’s copper producer, the Economics Association of Zambia – EAZ has advised that Zambia’s sovereign posture is exacerbating credit risk in the financial markets. Speaking in an interview with HOT FM Business news segment, economist and strategist Mutisunge Zulu said credit risks clouds continued to hover over the Zambian market with international rating agencies hinting potential lowering of sovereign assessments in their last research note. Mutisunge Zulu who serves as National Secretary of the EAZ advised that other rating agencies such as Standard and Poor’s (S&P) are already in the country to conduct its annual review. The…
Author: The Editor
Over the past few years, Zambian Private Equity activity has remained steady and the country has emerged as an attractive private equity destination. According to the African Venture Capital Association 2018 Annual African Private Equity Data Tracker, during the period 2013 to 2018, Zambia claimed 8% share of the PE deals by value in Southern Africa and 12% share of the private equity deals by volume, second only to South Africa which attracted the highest share of private equity deals in Southern Africa both by value and volume. Target sectors continue to be financial services and consumer goods. Investment in…
Zambia’s corn yields slid by 400,000 metric tones to 2,044,389 metric tons in the 2018/2019 farming season. This is just enough to absorb the 1,961, 357 metric tons demand for Zambia’s 17.6 million population. Speaking at a press briefing, Agriculture Minister Michael Katambo advised that the national average yield rate for corn slid to 1.29 metric tons per hectare from 1.72 metric tons per hectare in the last season. The Minster revealed that small scale farmers crop yields plummeted to 1.24 metric tons per hectare from levels of 1.68 metric tons per hectare as large scale farmers yield eased to…
Business confidence in Africa’s copper producer Zambia, fell steeply in the month of April to a 2.5 year low. This was revealed by the Markit Purchasing Managers Index – PMI on 06 May which printed at 45.2 compared to 48.1 in the month of March. This represents the sharpest reduction in orders for six months. (Readings above 50.0 signal an improvement in business conditions on the previous month, while readings below 50.0 show a deterioration.) Read also: Sharpest reduction in new orders for six months Markit Economics reported that the liquidity crunch weighed new business compounding the unemployment concerns. Private…
With moods on the fence as investors remain optimistic about the new clues about market direction in Q2, Donald Trump dampened the mood when he just threatened to slap 25% of tariffs on $200 billion worth of Chinese goods on a Sunday 05 May. Trump believes the trade impasse talks are moving at a snails pace and needed some jump starting. However this has made China think twice about continuing talks this week. Vice Premier Liu He was to leave on 08 May for Washington but this might not happen until the major powers resolve this deadlock. Asian shares are…
Profitability skew remains a key concern as 74% of PAT’s resided in 5 banks. Fees and commissions constricted as an autopsy of the unwarranted fee regulation introduced in Q4 of last year. Foreign exchange trading income thinned, reflecting the currency risk off mood.Credit risks in the Q1 were fairly low yet appetite is under threat from potential lowering assessments by rating agencies such as Moody’s. First quarter commercial banking profits (PAT) for the year 2019 rose to K421.75 million. This was according to quarterly financial statements for the period ended 31 March published in the local press. This translates to…
Africa’s copper producer, Zambia is currently grappling with hyperinflation in the tomato market which has seen the standard price of a box balloon 15 times to K300 from K20 levels (a price move translating to 1400%). This has been attributed to anemic supply in the face of massive demand exacerbated by the autopsy effects of the poor rainfall outcome. One of Zambia’s leading tomato farmers Maria Zileni Zaloumis proprietor of Tuzini farms, forecast that the tomato deficit will extend to July in the medium term. She attributed the deficit to the poor precipitation pattern which has impacted supply and as…
National Pension Scheme Authority – NAPSA, the state owned pension fund has rubbished media overtones by the Africa Confidential on an article published on 03 May, dubbed the ‘Treasury in Red’ that allegedly accused the fund of funding the February public sector wage bill. In a press release dated 03 May, The Office of the Director General dispelled the allegations carried by the Africa Confidential stating that the fund has well structured, legally established channels and procedures used to manage the affairs of the authority on behalf of its members. “We make reference to the article purported to have been…
The advent of the electric car is causing positive impact in the base metal market manifesting in uptick in demand for copper, cobalt and nickel. The likes of BMW, Ford and Tesla will be looking to buy metals in the forward to stock up on inventory to meet future demand. Permanent Secretary in the Mines Ministry in Africa’s copper producer Paul Chanda said Zambia’s mining sector still presents immense investment opportunities despite the current global uncertainty and the macro-backdrop. Speaking on the sidelines of the Mines and Money conference in New York, Chanda said the sector is poised for growth…
Zambia’s Finance Minister Margaret Mwanakatwe on 03 April at a joint consultative meeting with the tax authorities held to address concerns the private sector has with the sales tax regime the copper producer intends to implement on 01 July. Mwanakatwe told the forum that sales tax is necessary to stop the refund debt escalation create fiscal space, to pay the outstanding VAT refunds, and more importantly increase revenue collection to support government’s social development programs. The MinFin Minister is convinced that given the structure of the economy, the tax administration will enable government to collect sales tax with better efficiency.…