Zambia’s Markit/Stanbic bank PMI little-changed in June

Zambia’s Markit/Stanbic bank PMI was little-changed in June, coming at 49.9 from 49.8 in the month prior. This signalled  broadly stable business conditions over the course of the month. Survey results from Markit showed that while price pressures and money shortages acted to dampen demand at some companies, leading to output and new orders to decrease, others reported having been able to secure new customers.

Zambia appoints firms to audit government debt

Zambian markets reopen today, having been closed on account of Heroes and Unity day public holidays on Monday and Tuesday, respectively. 
Zambia has reportedly hired six companies, including EY Advisory Services and PwC, to audit domestic government debt. According to the Ministry of Finance and National Planning, the companies will evaluate “the process related to accumulation and audit of public domestic debt arrears that its various financial institutions owe suppliers of goods and services.

Inflation in Zambia slows to 9.7% y/y in June

USAID has announced that it will arrange a $30mn package which will in part assist Zambia in boosting food exports to two East African countries suffering from the surging prices due to the war in Ukraine. According to USAID, two companies in Zambia will start moving 17.500 metric tons of corn and soyabeans to Rwanda and Kenya in the coming days, with 30,000 more tons to come. The firms will be assisted by a revolving credit facility structured by USAID. East African countries, including Kenya, were already suffering from the worst drought in more than four decades before the war in Ukraine hit grain and fertilizer exports, significantly adding to global inflationary pressures. Zambia has a corn surplus of 1.2mn tons from the last growing season.

Zambian kwacha is outshining its Southern African FX peers

Reports citing a document seen by Bloomberg suggest that Mopani Copper Mines Plc, which Glencore Plc sold to a Zambian government-owned company last year, faces electricity cuts over unpaid bills. Mopani Copper Mines was earlier this month notified by Copperbelt Energy Corp of plans to limit supply because of unpaid invoices of more than $20mn. The power cuts are set to commence this week. The latest development further raises the urgency that the Zambian government needs to seek solutions for Mopani, which has struggled to pay bills even during a period of record prices for copper. Earlier this month, Mopani said it had hired Rothschild & Co.