Zambia’s positive macro-economic fundamentals are expected to augment businesses operations and to build up on investor confidence.
Currently, copper is trading at about US$6,800 a tonne while the Kwacha is below K10 and inflation rate is at 6.6 percent.
Madison Financial Services says the current increase in copper prices on the international market will result in the Kwacha remaining strong and points to a steady operating environment.
According to results for the half year ended June 30, 2017 issued by Madison Financial Services company secretary Kafula Mwiche said the prevailing macro-economic factors point to a stable operating environment.
“The general economic prospects appear to be looking up, creating a better environment for bridging the gap to attain our objectives for the year. Copper prices have seen a recovery in 2017, and therefore, the local currency is expected to remain buoyant. Also inflation and interest rates have also dramatically come down,” Mr Mwiche said.
Mr Mwiche said management is also taking advantage of the various investment opportunities in line with Government’s priority sectors, particularly the health sector.
He said the company’s focus is to develop real estate for purposes of providing medical services in partnership with international operators and has already broken ground for one project in Lusaka.
Mr Mwiche said the group is also taking advantage of an opportunity that has arisen to increase its equity stake in the microfinance business from 50 percent to 100 percent at the expiry of the investment horizon of its foreign partners in the business.
The firm recorded a 26 percent growth from about K17 million last year to over K23.1 million in the same period, indication of a continued successful recovery, which combined with other factors and may lead to impressive profit growth to the end of the year.
“Operating results for the half year period ended June 30, 2017 recorded a 26 percent growth from K17,012,241 in the same period last year to K23,138,870.
“The group has continued to deliver sustained profitability through innovation and in that regard, various products and distribution channels have been introduced,” he said.
[Zambia Daily Mail]
So its true afterall that Zambia’s improving economy is due to int’l copper prices and not PF govt policy interventions ? Mutati lied to us the other day.
Copper is the most sought after industrial base metal and this will continue for the foreseeable future!
Forget oil exploration – fossil fuels in 100 years will become obsolete because of global warming concerns!
The industrialised world is going electric, China, France, UK, Germany, Japan are going electric! Which means more conductors, more wiring!
We as a nation must gear ourselves to meet this huge demand which is coming! This is the biggest economic opportunity Zambia has ever seen since its independence!!!!!! We are blessed but must use this resource wisely!
WHEN KWACHA WEAKENS ..ITS LUNGU AND PF…..BAMALUKU IMWEEE WHO BEWITCHED YOU..!!!!!
Hahaha Zambians learn to be sober at times, when Lungu does something right you dont want to accept, when something bad happens ati Ni Lungu. why should you see him in the wrongs that happen and not the right.
Who said anyone in Zambia has anything to do with this?
This is a buyer’s market. You sell at prices fixed by them out there.
Only a fooool would think its Lazy Lungu and his MMD accountant!!
Ba Jay the Kwacha has been stable before the copper prices went up. tell me, when last did you hear or see the kwacha depreciate?
if you got nothing good to say just shut up
Actually against the dollar today it is 9.16 only 3 weeks ago it was 8.8. Standard and Poors said that the economy went from B negative to B stable so tbe funancial services company agrees.
2020 vision you ar correct we should also zambian companies to locate deposits of lithium. Thats the much need product. Batteries in the future will be lithium based
true
@Masalamuso comrade since the 70s we have been utilising the Lithium deposits in Luapula to come up with Mansa batteries which the great Super Ken conceptualised!Lithium and manganese deposits are readily in abundance in Luapula province!Zambia my fellow country men is going to play a major role in making the world move from fossil fuels to electric power! Platinum collected as a by product from the copper refining processes is in the thousands of tons but these have gone unrecorded!Platinum, cobalt, lithium and copper all key metals in the production of both hybrid and electric vehicles! The hydrogen fuel cell utilises catalytic converters made of platinum, copper and cobalt and are damn expensive! We need to set up plants to assemble these complex devices. That is long term planning we…
Zambia has been presented by the industrialised world with an opportunity to become the richest African nation by 2050!
The demand for copper which is coming will be like that which has never been seen in the history of the world!
Copper is the metal of the future!
Let Mopani close and leave if they want- we will sale that mine in less than 3 months to more serious investors!
I predicted this 2 years ago in 2014 when the price had dropped right here on Lsk Times and now my prediction is becoming a reality!
God be Praised!
Ok now that the kwacha is ‘strong’ tomorrow zesco tariffs will be up, to 75%.Are the essential items going cheap? Are the poor marketers going to feel it that the kwacha is strong?
No it due to the fact that Zambia did not vote in someone who wants to sell the country! That is why Zambia is booming!
@#5, I will be there soon to campaign so that HH will NEVER be president! I will also be there to make sure Mopani leaves!
Copper prices are high but there is no corresponding production of copper to take advantage of this window of opportunity. Also to say that inflation stands at 6.60 % is fraudulent reporting because all the economic indicators are moving north. General statements that interests rates have drastically come down, without pointing out financial institutions which have cut the rates, is sign of desperation by PF – Foo-ls.