African Development Bank (AFDB) president pays Zambia a visit
African Development Bank (AFDB) president Donald Kaberuka was in Zambia last week to inspect the ongoing works on a few of the diverse projects that the bank has had a role in funding. The project sectors rang from agriculture to infrastructure.
The average overnight interbank rate has dropped by 900 basis points from a year-to-date high of 25.1% on June 27 since the Bank of Zambia started implementing Open Market Operations (OMOs) last week. The overnight interbank rate is the rate at which banks lend to one another on a short-term basis. The rate was at 15.96% today:
Government set to release $600m VAT refund to affected miners
According to a report by the Daily Mail newspaper on Wednesday, the government will start releasing the $600m in VAT refunds which has been withheld from mining companies which were failing to provide import certificates from destination countries where Zambian copper was being exported. The paper quoted the Minister of Mines who had said that some mining companies had stated complying with the requirement subsequent to which the Zambia Revenue Authority was instructed to begin working on repayment of the funds.
TAZARA receives $80m cash injection
The Governments of Zambia and Tanzania (the equal owners of TAZARA), are set to inject $80m into the operations of TAZARA over the next 12 months. 11.5% of the amount will immediately be allocated toward paying two months of employee salary arrears as well as some working capital.
Copperbelt Energy Corporation (CEC) released their FY 2013 results which incoporated results from their Nigeria operations for the first time. Net profit came in at K457.6m, up 318.6% from the previous year. Revenue came in at K1.71bn, up 25.6% from the previous year.
Revenues were driven by K253m from CEC Africa (the company's international investment vehicle), an 80% increase in telecoms revenue and an 8% increase in electricity revenue. This would have been an impressive set of results except for the fact that CEC was headed for a FY 2013 loss of K258m had it not been for a ONE-OFF K716m gain on the bargain purchase of Abuja Electricity Distribution Company (AEDC).
Copper closes at $7,150 on London Metal Exhange (LME)
Copper closed at $7,150 per MT on the LME after hitting a session high of $7,190. The commodity was up 3% last week. It was boosted by a positive US employment data report which revealed a declining unemployement rate. The following chart shows LME copper price year-to-date:
The Lusaka Stock Exchange (LuSE) has continued-on from a strong 2013 to close the first half of 2014 at 6,111.15, up 15.3%. The market capitalization was at K28.1bn (K62.3bn including Shoprite) as of yesterday, June 30th 2014:
Trying to decipher this puzzle that is Zambia by using a variety of publicly available data (structured and unstructured) in conjunction with my own skill/experience. * * *