Zambia Votes After Violence Mars Close-Run Presidential Race

Zambia Votes After Violence Mars Close-Run Presidential Race

LUSAKA, Zambia, Capital Markets in Africa: Zambians began voting Thursday in elections that are set to be a rematch of last year’s neck-and-neck contest between President Edgar Lungu and his main rival, Hakainde Hichilema, following a violence-marred campaign. Less than 28,000 votes separated the two men the last time they squared off in a snap poll 19 months ago, after President Michael Sata died in office. While incumbent Lungu, 59, has enjoyed blanket state-media coverage of his campaign, an economic…

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Zambia Sees Swift Subsidy Cuts in $1.2 Billion IMF Deal

Zambia Sees Swift Subsidy Cuts in $1.2 Billion IMF Deal

Zambia, Capital Markets in Africa: Zambian President Edgar Lungu has pledged to remove or reduce energy and agricultural subsidies as part of a loan deal with the International Monetary Fund that could top $1.2 billion, his spokesman said. “Straight away when the IMF program begins, subsidies will significantly go down in the energy sector,” Amos Chanda said in an interview on Wednesday. “The president has promised to move rapidly to either completely do away with subsidies or progressively…

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Citigroup, JPMorgan Favour Zambia’s Dollar Debt in Bet on IMF Aid

Citigroup, JPMorgan Favour Zambia’s Dollar Debt in Bet on IMF Aid

ZAMBIA, Nigeria, Capital Markets in Africa: Citigroup Inc. and JPMorgan Chase & Co. are among investors stocking up on Zambian dollar debt, anticipating that a growth revival and an International Monetary Fund aid package will help the southern African nation plug its yawning budget deficit. Citigroup started adding Zambian debt on June 10, while JPMorgan moved its holding of the nation’s dollar bonds to overweight, seeing room to “earn considerable pickup” amid signs of an improving economy….

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Zambia Will Only Take IMF Bailout If Terms Agreeable, Lungu Says

Zambia Will Only Take IMF Bailout If Terms Agreeable, Lungu Says

LUSAKA, Zambia, Capital Markets in Africa: Zambian President Edgar Lungu said Africa’s second-largest copper producer will only access International Monetary Fund support if the lender’s conditions are acceptable. “If we find that there are conditionalities which we find acceptable, we will work with them,” he told reporters Friday in Lusaka, the capital. “If not, we will throw them out.” The southern African nation had earlier said it was working to seal an “inevitable” aid program from the…

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Zambia Increases Local Debt Auctions to Fund Bulging Deficit

Zambia Increases Local Debt Auctions to Fund Bulging Deficit

Lusaka, Zambia, Capital Markets in Africa — Zambia will boost the value of Treasury bills and bonds it offers to investors taking advantage of increased demand for the securities as it seeks to fund a fiscal deficit that’s set to grow to more than double what Finance Minister Alexander Chikwanda budgeted for. Local-currency debt sales will increase to 700 million kwacha ($71 million) per auction from 450 million kwacha for Treasury bills, and to 800 million kwacha from…

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Zambia Prepares Ground for `Inevitable’ Post-Vote IMF Aid

Zambia Prepares Ground for `Inevitable’ Post-Vote IMF Aid

LUSAKA, Zambia, Capital Markets in Africa — Zambia, reeling from a copper-price slump and a power shortage, is readying for “inevitable” assistance from the International Monetary Fund that may be finalized in December, Treasury Secretary Fredson Yamba said. A deal will only come after general elections set for Aug. 11 and until then, the government will work on lowering electricity and fuel subsidies that the fund last month estimated could cost the southern African nation $660 million a year, Yamba…

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Moody’s downgrades Zambia’s issuer rating to B3 with negative outlook

Moody’s downgrades Zambia’s issuer rating to B3 with negative outlook

Lusaka, Zambia, Capital Markets in Africa — Moody’s Investors Service (Moody’s) has today downgraded Zambia’s long-term issuer rating to B3 from B2 and changed the outlook to negative from stable. The downgrade on the issuer rating was driven by:  Greater-than-anticipated fiscal slippages in 2016 leading to material liquidity pressures and significant challenges to finance the budget deficit; The prospects of further deterioration in Zambia’s debt matrix in a lower growth environment, with the government debt likely…

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