The Zambia National Commercial (ZANACO) has described Zambia’s bonds currently as the most attractive in the world.
ZANACO Chief Risk Officer, Mutisunge Zulu says this is because of the sound political environment, reduced inflation rate and the continued stability in the local currency among other factors.
Speaking during a media briefing in Lusaka today, Mr. Zulu said the country has in the recently recorded an increase in investment appetite with the business confidence growing up to 50.5 percent.
He explained that the attractiveness of the bonds has also been created because of the huge returns of about 23-25 percent that investors are likely to get after locking their money for five years.
“Single digit inflation and stable currency continues to make kwacha bonds very attractive in returns both in local and foreign currency real terms. The government bond index is at its highest 95 percent firmer in Zambian kwacha and 13.3 percent stronger in United States Dollars terms,” he explained.
Mr. Zulu added that the debt restructuring legislation presented before Parliament is historical for the country as it tries to control the uncontrolled expenditure.
He stated that government has continued to open investment doors to external partners through key platforms such as the African Union, European Union, World Bank and local private sector partnership through initiatives such as the Private Public Partnership Dialogue Forum.
Mr. Zulu further noted that the country’s mining sector is also poised to record growth with the increased demand for copper products and other minerals worldwide because of the decarbonization drive as measure for climate change mitigation which has resulted in initiatives such as the electric car battery and cleaner energy.
Meanwhile, ZANACO Chief Executive Officer, Mukwandi Chibesakunda reaffirmed the Bank’s continued support to the country’s key economic sectors in order to attain sustainable economic development.
Ms. Chibesakunda explained that to this effect the bank has invested over K1 billion in the agriculture sector to help improve farming activities for both the commercial and small-scale farmers across the country.
She said there is a need for farmers in the country to take advantage of the support and cease the increased World demand for grains which has been caused by the Russia and Ukraine conflict to grow more for export.