Thu, 04 May 2017 09:15:39 +0000
Stable Kwacha set to get stronger
By BUUMBA CHIMBULU
CURRENT market conditions suggest that the Kwacha is likely to continue trad-ing within the levels of K9.270 / K9.320 in the short term, with a bias towards further gains against the dollar.
During Tuesday’s trading session, the Kwacha was largely unchanged against the dollar as demand and supply were stable.
Cavmont Bank Zambia daily market report indicated that the local currency however during the Tuesday session managed to touch an intra-day high of K9.270 / K9.320 on the back of some improved supply from corporates.
“Current market conditions suggest that the currency pair is likely to continue trading within current levels in the short term, with a bias towards further gains.
“The Kwacha closed at K9.300 / K9.350, unchanged from the day’s opening lev-els,” read the report.
On the money market, commercial banks’ aggregate current account balance re-duced by K168.52 million to K613.85 million while the overnight borrowing and lending remained unchanged at 13.71 percent.
Total funds traded on Interbank were K265.20 million.
And the Cavmont Bank report indicated that the Central Bank as of Tuesday this week was still conducting its open market operations (OMO).
During the trading session, the Central Bank was targeting to withdraw K300 million in excess liquidity with accepted rates averaging 15.75 percent on the 1 day tenor.
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BoZ measures improves Barclays performance
By BUUMBA CHIMBULU
BARCLAYS Bank Zambia has in the first quarter of 2017 recorded 60 percent growth in profit before tax (PBT) owing to improved liquidity in the economy, resulting from measures taken by the Bank of Zambia of reducing the monetary policy rate to 14 percent.
The bank’s new managing director, Mizinga Melu, said during the announcement of the bank’s performance in the period under review that Barclays Bank Zambia recorded K88 million profit before tax, representing a growth of 60 percent compared to the first quarter of 2016.
She also attributed the increase in PBT to a combination of reduced interest expenses and operating costs as the bank continued to invest in innovative banking solutions such as mobile and online banking for its customers’ convenience.
Ms Melu also said operating costs during the period under review reduced by 9 percent, remaining well controlled and producing cost to income ratio of 56 percent.
“The bank delivered an excellent overall performance for the first quarter of 2017, consolidating the bank’s status as one of the leading commercial banks in the country,” she said.
Ms Melu attributed the improved financial performance to the positive monetary policy interventions by the Bank of Zambia.
She further said customer deposits grew during the period under review by 3 percent, total operating income increased by 9 percent while operating costs reduced by 9 percent, remaining well controlled and producing cost to income ratio of 56 percent.
“The positive financial results we have recorded this quarter are in part attributed to the improved liquidity in the economy, resulting from measures taken by the Bank of Zambia.
“The reduction in the policy rate has had a favorable impact on the country’s financial sector and we appreciate Government efforts through the Bank of Zambia to promote business. We pay tribute and thank our customers for their loyalty and continued support because without that, the bank cannot record such results,” she said.
Ms Melu announced that net interest income increased by 9 percent compared to the first quarter of 2016, mainly driven by optimal utilization of funding sources which resulted in a net reduction in interest cost of 31 percent.
Meanwhile, Ms Melu announced that the bank was scaling up its lending facilities to customers as a result of the improved liquidity position in the market.
Ms Melu said the bank continued to extend support to various sectors in the economy following the improved economic climate reflected by the reduction in inflation and interest rates
“The scale-up in lending to individuals and SMEs complements our strategy of ensuring that people achieve their ambitions in the right way,” she said.
She said the bank was supporting various agri-businesses to improve access to capital, thereby growing production operations.
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Emerald miners bemoan lack of support
BY MAILESI BANDA
THE Emerald and Semi-precious Stones Mining Association of Zambia (ESMAZ) has commended President Edgar Lungu for recognising the importance of empowering small scale artisanal miners.
ESMAZ president Victor Kalesha said the association was excited as this gave the miners recognition.
Mr. Kalesha was reacting to the presidential speech on Labour Day where the republican President pledged to develop the emeralds industry.
Mr Kalesha lamented the lack of support to local miners, adding that while foreign investors in the mining sector were given support the case for local miners was different.
“We are aware that there are very unpatriotic Zambians that want to look down on local small-scale miners but promote the interests of foreign companies who take away our resources with less benefit to Zambians,” he said.
He pledged to ensure that his members supported initiatives by the President for the benefit of development of the country by Zambians themselves.
He said opening up more emerald mines would create employment for the local people and contribute to economic growth.
Mr Kalesha revealed that the association had invited the School of Mines both from the University of Zambia and Copperbelt University to work on geological assessments which would be of benefit to both miners and students.
He explained that students left the university as graduates with less knowledge on gemstone production even when this country was endowed with vast gemstone mineral resources.
He said he hoped to meet President Lungu to share ideas on how they could develop the emerald sector and create the much needed jobs for Zambians.
He said there was need to stop the smuggling of emeralds and reduce the sale of stones on the black market, adding that this would encourage more investors to the sector that had been neglected for a long time .
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Farmers urged to grow cotton
ByBUUMBA CHIMBULU
THE Cotton Board of Zambia (CBZ) has urged local farmers to venture into cotton production as it has readily available market and it is a cash crop.
CBZ business development officer, Sunduzwayo Banda, explained that cotton was a business with a readily available market once harvested.
Mr Banda said in an interview that most local farmers were sceptical to venture into cotton growing, fearing that the crop involved much labour compared to other crops.
“A lot of farmers are sceptical to venture into cotton production because they say it has a lot of labour; but things have changed, there used to be labour on weeding and on spraying of chemicals.
“By now there is what we call integrated production and pest management that is being used as a new method of production. What happens is that you use less chemicals,” he said.
Mr Banda said cotton farmers now had access to credit which they only paid back after harvesting.
“You need a 15 kg of seed to grow cotton and can access that from any cotton companies and seed on credit and fertilisers and chemicals to control pests until you harvest.
“At the end of the season you sell that cotton to the people that provided you with a credit facility and get the difference from the money you used. So farmers have such access where they can easily grow, it is a cash crop and most farmers harvest it quickly,” he said.
Mr Banda also said CBZ had a project under the Food and Agricultural Organisation (FAO) called the integrated pest and management to provide more extension, information and advice to cotton farmers.
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Govt hailed for driving tourism sector policies
BY MAILESI BANDA
GOVERNMENT should be commended for engaging the private sector in the growth of the tourism sector and its contribution to economic growth, Tourism Council of Zambia board member, Patrick Mwanza, has said.
Mr. Mwanza said the efforts being made by Government to partner with the private sector in the implementation of policies should be commended as it would contribute to the growth of the economy.
He called for more efforts in ensuring that constraints faced by the private sector were eliminated. “The stated intention of elimination of the private sector constraints through consultative process is important for creating an enabling environment for the growth of the tourism sector in Zambia,“ he said.
He commended the Government for the implementation of new tourism policies that he hoped would further improve the outlook of the sector.
“We commend the Government for the implementation of new policies and it is our hope that these reforms coupled with a well formulated marketing system will help develop Zambia as a sustainable tourism destination for all and that it will lead to increased arrivals,“ he said.
It was inspiring to note that Government regarded tourism as a core economic development sector, adding that this gave the stakeholders in the sector the courage to work towards achieving the goals set by Government.
He explained that for the Government to effectively regulate the tourism sector there was need to engage key stakeholders in the consultative process for an effective and acceptable regulatory framework.
He stated that this would reduce disruptions and distortions in the tourism market.
He implored Government to involve the private sector in the analysis of proposed regulations and allow the private sector enough lead time to adjust to reforms.
