Bruce Mwale

A new report has revealed that despite experiencing a fall in maize production from last year, Zambia has emerged as the largest surplus country in the Region, surpassing South Africa, traditionally the region’s dominant maize exporter. According to the Indaba Agricultural Policy Research Institute - IAPRI’s - 2015/16 Zambian Maize Market Outlook and Regional Analysis, once requirements for self-sufficiency are met, including setting aside a national reserve of 500,000 Mt, Zambia has an exportable surplus of 876, 738 Metric tons. In contrast, the only other two surplus countries in the Region, Tanzania and South Africa have a surplus of 487, 000 Mt and 300,000 metric tonnes. IAPRI’s research shows that keeping Zambia’s borders open at all times would not risk the country’s food security status; but it will help the country expand its market for the benefit of both farmers and consumers and the economy at large. This is because openness to international trade can reduce price

Sub-Saharan Africa countries are continuing to grow, although at a slower pace, due to a more challenging economic environment.  According to new World Bank projections, Growth will slow in 2015 to 3.7 percent from 4.6 percent in 2014, reaching the lowest growth rate since 2009.These latest figures are outlined in the World Bank’s new Africa’s Pulse , the biannual analysis of economic trends on the continent. Overall, growth in the region is projected to pick up to 4.4 percent in 2016, and further strengthen to 4.8 percent in 2017. Africa’s Pulse notes that overall decline in growth in the region is due to several factors and vary from country to country. For example, In Ghana, South Africa, and Zambia, domestic factors such as electricity supply constraints are further stemming growth. Fiscal deficits across African countries are now larger than they were at the onset of the global financial crisis. Rising wage bills and lower revenues is leading to a widening o

Zambia issued its third euro-bond on 30 th July, 2015. The bond issue amounted to US $1.25 billion at a coupon rate of 8.97 percent. The final order book reached US $2.5 billion from more than 175 investors from the United States, United Kingdom, mainland Europe and other global markets. The advance interest payment (or discount) on the bond amounted to US $34.3 million. In terms of geographic distribution the USA took the highest share at 48%, UK took 42%, rest of Europe 9%, and other regions accounted for 1%. By investor type, fund managers took 84%, insurance & pension funds 4%, Banks/private banks 3% and hedge funds 9%. The repayment of the USD1.25 billion euro-bond will be made in three equal installments of US $416.7 million in July 2025, July 2026 and July 2027. The choice of amortizing the bond in three equal installments is to reduce the gravity on the Government in amortizing the US $750 million, US $1billion and the US $1.25 billion, bonds. Desp

Zambia‘s economy is one going through what I would call a turbulent moment. It is a country with a lot of natural resources, but things don’t just seem to go right somewhere. To start with, within three years, the Zambian kwacha has depreciated by about 54%, from $4.86 to the current $7.46 a dollar. Government has labored to explain that the depreciation is largely on account of the persistent weak copper prices and the global strengthening of the US dollar. Zambia’s extremal debt currently stands at about US$4.8 billion representing about 18.5 percent of GDP while the domestic debt is K20.5 billion (approximately US$3.7 billion) representing about 14.2 percent of GDP. Total public debt is therefore around 32.7 percent of GDP. In 2011 when the new government was taking over the reins of power, foreign debt was at $1.2 billion. At the presentation of the 2015 national budget, government had projected a budget deficit of about K8.5 billion but currently that amount has been revis

Africa's economy has in recent years seen average growth rates of 5%. On paper it looks like a progressive step for the continent but still business players say the rate can improve when several factors are considered. United Nations under Secretary General and Executive Secretary for Economic Commission for Africa Carlos Lopez has called for structural transformation of economies in the continent. ”Poor agriculture performance, low value addition in the manufacturing sector and low modernization service provision have been cited to be among the major challenges the African content is facing towards economic emancipation,” said Mr. Lopez. Mr. Lopez also held talks with Commerce Minister Margaret Mwanakatwe, Minister of Agriculture Given Lubinda and Minister of Finance Alexander Chikwanda who stressed the need to break various barriers that have for a long time slowed down trade in the continent, in Lusaka. The poor state of roads, railways and airlines are some of the a