The revision of Zambia’s sovereign rating by Standards and Poors Global from negative to POSITIVE-WITH-A-STABLE-OUTLOOK is an affirmation of the soundness of the policies being implemented by the Government of President Edgar Chagwa Lungu to stabilize and grow the economy, FINANCE MINISTER FELIX MUTATI has said.

STANDARD AND POORS [S&P] GLOBAL RATINGS has revised Zambia’s outlook on the ‘B’ long -term foreign and local currency sovereign ratings to STABLE FROM NEGATIVE. At the same time, the ‘B’ long-term and ‘B’ short-term sovereigns have been affirmed.

“This development rides on the basis of the critical reforms which we have embarked on as a country under the Economic Stabilisation and Growth Programme to implement fiscal consolidation, remove subsidies, reform the energy sector, and embark of diversification of the economy through agriculture development and industrialisation,” Mr. Mutati has said.

“The result from the assessment conducted by S&P Global is a welcome incentive for investors as they should remain confident assured that this country is on track with economic stabilisation and growth,” he said.

“We will work diligently to ensure that the confidence of our people and that of investors in the good intentions of the government to stabilize and grow the economy are not taken for granted,” assured Mr. Mutati.

According to the report on Zambia issued by S&P Global last Friday 25th August, 2017, “although still tight, the government’s fiscal financing position appears more assured, with domestic liquidity conditions continuing to improve.”

S&P Global has also observed in the report that the country’s economic growth prospects are improving, as a result of which, they said, they were revising their “outlook on Zambia to stable from negative and affirming the ratings at ‘B/B’.”

In the report issued by BENJAMIN YOUNG, Primary Credit Analyst, and GARDNER RUSIKE, Secondary Credit Analyst, S&P Global further stated that Zambia’s “stable outlook, balances an improving macroeconomic picture against a number of negative rating pressures, including a still large fiscal deficit and substantial debt stock.”

They cautioned that the rating could be lowered if the government materially deviated from its FISCAL CONSOLIDATION TARGET.

“We could also lower the ratings if previously destabilizing factors re-emerge, for example, if copper prices were to materially fall, or if rainfalls disappointed, or if improvements in the liquidity of the domestic banking system reversed,” they said, adding that “these factors have a substantial bearing on macroeconomic stability, growth, and the government’s financing position.”

S&P Global noted that, “should Zambia’s external imbalances reduce materially faster than expected in tandem with faster growth than they currently expect, which could raise their GDP per capita trend growth forecast, “UPWARD MOMENTUM ON THE RATINGS COULD EMERGE.”

“We have assigned a stable outlook to reflect a number of more positive developments that we expect will continue to reduce pressure on Zambia’s fiscal, economic, and external assessments,” they said, adding that they still assessed “Zambia as being highly vulnerable to a reversal of these trends, despite the authorities implementing policies that aim to reduce macroeconomic susceptibility to such events,” and further stating that, “we have improved our economic growth forecasts and expect increased economic output will be supportive of corrective fiscal measures.”

In the report, S&P Global views reducing fiscal deficits and the stock of debt as CORE TO ZAMBIA’S RATING TRAJECTORY, particularly as larger external debt maturities enter the forecast horizon through 2020.

S&P Global expects the agreement with the International Monetary Fund (IMF) to be in place by year end and that this will act as a policy anchor.

“We also note that discussions with the IMF have been ongoing for well over a year, derailment of an expected agreement could dent confidence, reduce investment, and offset the positive factors,” they said, and cautioned that, “it could also risk the benefit to external finances of increased foreign participation in the government’s local currency debt market.”

S&P Global further noted that, “particularly between now and an IMF disbursement, higher copper prices and an expected increase in copper output are both supportive of not only higher growth but also of banking system liquidity, which in turn is a key source of government financing.”

Copper prices have risen by about 18% in 2017 and core liquid assets in Zambia’s banks by some 44% over the same period. The Bank of Zambia has continued to ease its policy rate and Zambia’s currency, the kwacha, has remained on a slight appreciation path for some time now. As a result of these factors, the cost of debt for the government has also reduced. A related factor, given that inflation has fallen, is that foreign participation in the local bond market has increased by around 2.5% of GDP over 2017, which is a helpful current account deficit financing item.

“On the downside, the factors leading to anticipated higher growth are largely outside of the government’s immediate control, leaving them vulnerable to calming demand for copper or unfavorable weather patterns,” said S& P Global, acknowledging that, “the government has made efforts that are gradually diversifying the country’s energy mix.”

AND Mr. Mutati has reaffirmed that government will continue to pursue fiscal consolidation, economic stabilisation, and growth. He maintained that the Ministry of Finance will remain highly alert on the need to reduce borrowing by enhancing resource mobilisation initiatives such Public Private Partnerships, increasing grant-inflows, and reinforcing tax-related initiatives which are targeted at strengthening enforcement and compliance.

S&P Global Ratings’ analysis of sovereign creditworthiness rests on its assessment and scoring of five key rating factors: (i) institutional assessment; (ii) economic assessment; (iii) external assessment; (iv) the average of fiscal flexibility and performance, and debt burden; and, (v) monetary assessment.

Rating agency Standard and Poor’s has revised Zambia’s economic outlook from negative to stable.

It says Zambia’s improving growth prospects and greater liquidity in its banking system have prompted it to change its outlook on the country to stable from negative.

The ratings firm said in a statement that this remained hostage to the government sticking to its budget plans and to outside factors over which the Zambian government has no control – the international price of copper, and rainfall.

It also based the move – which accompanied an affirmation of Zambia’s non-investment grade B rating – on an expected deal with the International Monetary Fund by the end of the year.

“Copper prices have risen by about 18 percent in 2017 and core liquid assets in Zambia’s banks by some 44 percent over the same period,” it said.

“The near-term outlook for the economy has improved in recent months,” it said, citing a bumper harvest and increased hydroelectricity generation.

It projected real GDP to grow 4 percent this year compared with 3.4 percent in 2016.

THE Constitutional Court has dismissed a petition filed by Brigadier General Godfrey Miyanda in which he sought the court’s interpretation of some provisions in the amended Constitution which he alleged were inconsistent and did not represent the interests of Zambians.

Gen Miyanda, who is Heritage Party president, wanted the court to determine what he termed as breaches, inconsistencies, decisions or omissions contained in the 2016 amended Constitution.
In a judgment delivered on Friday by a bench of three judges headed by judge Annie Sitali, the court dismissed the petition but noted the case raised important constitutional arguments which were of great interest to the public.

“We wish to point out that the petition raises fundamental questions such as, ‘Can a constitutional amendment be unconstitutional?’. To allege, as the petitioner has done, that a constitutional provision is unconstitutional is to impute incoherence and inconsistency,” she stated.

In his petition, Gen. Miyanda charged that the amending of the preamble by introducing new words that significantly changed the character of the state and nation of Zambia, without the sanction of the people through a referendum, was inconsistent with the Constitution, and further that it was unconstitutional, illegal, null and void.

Brig Gen Miyanda also stated that the decision by the executive to combine the holding of the general elections and the referendum at the same time was inconsistent with public policy, and further that it was based on improper considerations and was not reasonably justifiable in a democratic state.

However, justice Sitali said there was nothing in the Referendum Act that prohibited the holding of the referendum alongside the general elections.

“We therefore find no merit in the petitioner’s claims and we dismiss it accordingly,” she said.

Justice Sitali also dismissed claims by Gen Miyanda that the decision by the executive to direct the Electoral Commission of Zambia (ECZ) to conduct the general election simultaneously with the referendum on August 11, 2016 was in bad faith and was inconsistent.

Justice Sitali said the petitioner’s claim that the announcement by the President in early 2016, that he had decided to dissolve Parliament in May 2016 was unconstitutional and contrary to article 81(5) (6) and (7) of the constitution, was premised on wrong provisions of the law and lacked merit.

Today’s Scripture

“…the appetite of the diligent is abundantly supplied.”
(Proverbs 13:4, AMPC)

The Reward of Diligence

God longs to pour out His favor and blessing on you. He longs to show you His goodness and provision. He promises to do His part, but you have to do your part, too. You have to be diligent. First of all, be diligent in seeking His ways and following His commands. Then, be diligent with what you have in your hand, with your time and resources.

In Matthew, Jesus tells a parable about three men whose employer entrusted them with some money called talents. Two of the men were diligent and invested the talents and received a great return. The third man was afraid and buried what he was given. The first two men were rewarded and praised for their diligence while the third man was rebuked.

Follow the example of the first two men and look for ways to be diligent with what you have in your hand. Whatever you do, do it with excellence. Be the best you can be and go the extra mile even when you think it goes unnoticed. Understand that when people don’t notice, God notices and promises to reward the appetite of the diligent.

A Prayer for Today

“Heavenly Father, thank You for Your favor and blessing on my life. Today I choose to be diligent. I choose to live in excellence and do everything to the best of my ability. I give You all the glory in Jesus’ name. Amen.”

Mopani Copper Mines Plc has urged Copperbelt Energy Corporation (CEC) to honour the power agreement that was signed with the company failure to which the investment made by the company in Zambia will be put at risk.

In a statement released to the media today, the company said that it continues to pay its power tariffs in accordance with the existing contract and remains
committed to negotiating with CEC and ZESCO in good faith, but said that without a reliable power supply, the company is unable to conduct its operations safely nor maintain their workforce.

The Company further said that it was proud to be one of the largest investors in Zambia’s mining sector, having committed over USD$ 4 billion since 2000. S

“Since 2014, Mopani has invested over USD$1 billion in site expansions and upgrades to extend the life of mine by a further 25-30 years. This investment will help Zambia realise the full potential of its copper mining industry for decades to come, providing a secure platform for the Zambian industry to compete on a global scale. The
investment will also help secure jobs, local procurement and much needed revenues for the Zambian government,” read the statement

PRESS STATEMENT
FOR IMMEDIATE USE: 25 AUGUST, 2017

Mopani Copper Mines Plc wishes to confirm that power supply to our assets in both Kitwe and Mufulira remains restricted despite a court injunction ordering the Copperbelt Energy Corporation (CEC) to restore supply at the levels agreed in the Power Supply Agreement.

We wish to further advise that the case hearing of the injunction and an application for leave to commence contempt proceedings, which was scheduled for 09:00 hours this morning at the Kitwe High Court has been adjourned to Wednesday 30 August at 10:00 hours following a request from CEC’s legal representatives.

Mopani continues to pay its power tariffs in accordance with the existing contract and remains committed to negotiating with CEC and ZESCO in good faith. However, without a reliable power supply, we are unable to conduct our operations safely nor maintain our workforce.

Mopani is proud to be one of the largest investors in Zambia’s mining sector, having committed over USD$ 4 billion since 2000. Since 2014, Mopani has invested over USD$1 billion in site expansions and upgrades to extend the life of mine by a further 25-30 years.

This investment will help Zambia realise the full potential of its copper mining industry for decades to come, providing a secure platform for the Zambian industry to compete on a global scale. The investment will also help secure jobs, local procurement and much needed revenues for the Zambian government.

We urge CEC to honour the power agreement that was signed with Mopani. CEC’s current inability to do so puts Mopani’s investment in Zambia at risk.

Further details will be communicated as appropriate.

Vodafone, the number one next generation 4G operator in Zambia, has expressed its disappointment in the Football Association of Zambia’s (FAZ) decision to move the game between City of Lusaka F.C. and Nkana Warriors away from the Vodafone Stadium, City Ya Moto’s home ground. Vodafone has subsequently apologized to all fans of the team looking to watch the game in the newly refurbished stadium.

On August 27, The City of Lusaka was scheduled to host Copperbelt outfit, Nkana Warriors in a match that was expected to coincide with the official unveiling of the Vodafone Stadium, formerly known as Woodlands Stadium.

The Football Association however moved the game to Nkoloma Stadium in Chelstone following a misunderstanding between City of Lusaka sponsors, premier league sponsors, and the F.A.

Vodafone Zambia CEO noted that while he respected the decision by the Football Association, and emphasized the need to adhere to their ruling, he pointed out that he was disappointed at the outcome of events, as it had the potential to severely affect the morale of clubs looking to partner with corporate sponsors for the benefit of the game.

Mr. Stork further stated that he has been and is still fully committed to participate in a negotiation with all parties concerned and confident that a solution will be possible, allowing the City of Lusaka FC to play the balance of their home games at the refurbished Vodafone Stadium.

“My philosophy is quite simple, competition is the critical driver of performance and innovation. It benefits consumers by enabling more choice from an array of quality products and services. Healthy competition also encourages our businesses to continuously improve the quality of services leading to a healthy growth of the total market. A pre-requisite for this to flourish however, is that organizations such as the FAZ and any other relevant stakeholders for that matter provide a level playing field for Zambian businesses to participate in the game that unites us all.”

Mr. Stork went on to emphasize Vodafone’s commitment to the City of Lusaka Football Club.

“We are genuinely committed to the growth of Zambian football. It is exciting to see more corporates invest in the sport that unites us all. This is more than a marketing exercise for us, it goes to the very core of our business – ensuring we make a meaningful impact in the communities in which we operate. Therefore, despite the decision, we will continue to support the City of Lusaka and reaffirm our commitment to them as their official sponsor,” said Mr. Stork.

On Wednesday August 23^rd, The City of Lusaka Football Club (F.C) announced Vodafone Zambia as their official sponsor in an agreement that gives the next generation operator the sole naming rights of the team’s home stadium, Woodlands.

The royal family member and his leading lady headed to Livingstone in Zambia Thursday evening to continue their vacation.

They traveled across the Kazungula border from Botswana and will be staying in the area for a few days.

According to a source, Prince Harry “has one more romantic surprise arranged for Meghan.” If all goes as planned, the Suits star will enjoy a visit to Victoria Falls.

“VIPs love to take helicopter tours of the falls,” a local source shared with The Mirror. “It’s one thing to experience them at ground level, but high up is where you really get to see how spectacular the view is and just how enormous it is.”

The couple’s latest destination comes shortly after vacationing in Africa in celebration of Meghan’s recent 36th birthday.

After arriving in Botswana, Meghan celebrated her special day with close friends of Harry. A source also revealed that a Botswana safari, trip to Okavango Delta and more was on the agenda.

“Harry knows exactly where to stay on a trip like this and he’s also worked closely with a trusted tour guide who has helped with arrangements and organizing excursions,” our insider shared. “There may be some luxury but there will be a big element of daring stuff, too. They just want to get really close to the animals and the people.”

And as the pair continues to celebrate one year of dating, some can’t help but wonder if an engagement is in the future.

While the ultra-private twosome keeps fans guessing, those close to Harry and Meghan know love is in the air.

“It’s, of course, very serious and both Harry and Meghan are focused on the future,” a source previously shared with us. “Engagement talk isn’t just between the two of them, even some of Harry’s closest aides are quietly expecting news before the end of the year.”

 

Source: eonline