Zambia Weekly Wrap - April 12 Edition

Mining tax changes set to be tabled at cabinet meeting on Monday

Zambia's cabinet will table changes to mining royalties on Monday after the finance and mines ministers proposed the amendments, the president's spokesman said on Thursday. Zambian President Edgar Lungu last month directed the finance and mining ministers to change royalties on mining firms by April 8, saying the copper-producer could consider temporarily reverting to the tax regime in 2014. (Read more)

The Kwacha appreciated by 4.9% against the US dollar this week – a trend which can also be seen with the Kwacha’s relationship with other major currencies. Raising the reserve ratio helped stabilize the currency but the recent strength could be attributed more to currency traders taking profits in anticipation of the big announcement on Monday. We could also see further strengthening next week should compromise be positively received by the mining sector.

Afrox Initial Public Offering set to be done by June

Zambia will this year sell its 30 percent stake in the local unit of Germany’s Linde AG, the biggest gases supplier in southern Africa, with the stock priced at a “deep discount” to benefit citizens, the government said. Zambia’s Industrial Development Corp. is leading the sale process, which will prioritize economic empowerment for citizens over raising funds for the government, Charles Mate, corporate affairs director at the state-owned IDC, said by phone Friday. The sale may be completed by the end of June, he said. (Read more)

The Afrox IPO has been on the cards for quite a few years now. It could mark the start of the privatization of many state-owned entities which could raise much needed cash as well hopefully see some locals acquiring these entities. Can the newly formed Industrial Development Corporation (IDC) shake off the stench of ‘conflict of interest’ and ‘mismanagement’ which was prevalent in its previous form?

Zambia received 950,000 international visitors in 2014               

ZAMBIA received about 950,000 international tourists in 2014 representing an increase of 3.4 per cent.
Meanwhile, Government has said it is optimistic that the 1,000,000 international tourist arrivals target for this year will be achieved. Ministry of Tourism and Arts, Permanent Secretary Stephen Mwansa said in a statement yesterday that Zambia received a total number of 946,969 in 2014 compared to 914,576 in 2013. (Read more)

New regulation on Chinese and COMESA visas should push those numbers over the 1 million mark in 2015. Ebola perceptions hurt 2014 figures despite the epidemic not materially impacting southern Africa.

Zambia records 13% growth in insurance premiums in 2014

ZAMBIA’S insurance industry posted more than K1.7 billion written premium in 2014 up from K1.5 billion recorded in 2013. This represents growth of 13 per cent. The Pension and Insurance Authority (PIA) registrar Martin Libinga told journalists in Lusaka that the growth was mainly due to the increase in the number of new products and the uptake of insurance products. Mr Libinga said the insurance sector had recorded significant growth in numbers and in proceeds and premiums. (Read more)

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