VAT rule 18 set to be amended
Zambia plans to amend VAT rule 18 which requires exporters to produce import certificates from destination countries because of feasibility issues. The Minister of Finance wrote to the President asking that the VAT rule be limited to export verification.
Kwacha continues fall, ends the week at 6.61
The Kwacha hit a record low of K6.71 per $US dollar before closing the week at K6.61:
Zambia Sugar posted a net profit of K127.8m in financial year 2013 which was down 9.4% year over year:
Maize output to increase by 32.2% in 2014
Inflation increased by 0.1% from last month to reach 7.8% for the month of April 2014. The increase was driven by price hikes in various non-food items ranging from cement to charcoal. According to the CSO director, Western province had the highest rate of inflation at 9.3 % followed by North-Western province at 9.2% with Central province having the lowest rate of inflation at 6.2%.
Finance bank brings home the bacon
Finance bank came in with a Net profit of K71m, up a whopping 39% year-over-year. Active customers have grown by 43% to over 150,000. The bank is looking go ahead with two planned IPOs on the Lusaka and the London Stock exchanges. The IPOs were mooted to go through last year so perhaps a pinch of salt but let’s wait and see. Not bad for a bank which was almost sold for a pittance to FNB of South Africa.
News of the Kwacha’s recent travails has been has been spreading thick and fast – it has lost 16.2% year to date closing at ZMK6.4 per $US yesterday. Zambia’s economy grew by 6.5% in 2013 with key drivers being: Transport, storage and communications (27.1%), construction (24%), community, social and personal services (17.4%), financial institutions and insurance (13.7%), manufacturing (8.2%), and mining (5%). This is despite a 7.4% drop in agricultural output (which is expected to increase in 2014). Inflation remained in single digits, closing the year at 7.1%. There was a merchandise trade surplus of US$1.4bn in 2013. Despite the recent fiscal deficit concerns and ratings/outlook downgrades, outlook for growth remains positive. So what’s behind the recent Kwacha slide?
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. * * *