Economy - Copperbelt Katanga Mining

Reserve Bank of Zimbabwe Introduces Gold-Backed Currency ZiG

April 7, 2024April 7, 2024 Constance

The Reserve Bank of Zimbabwe has launched ZiG, a new gold-backed currency aimed at stabilizing the economy and shielding citizens from currency fluctuations and soaring inflation. ZiG, short for “Zimbabwe Gold,” was unveiled by Central Bank Governor John Mushayavanhu on Friday last week. The move comes amidst the drastic depreciation of the Zimbabwean dollar, or RTGS, which has lost three-quarters of its value this year. Mushayavanhu emphasized that the goal is to replace the RTGS with the gold-backed ZiG currency. Citizens have been given a 21-day window to exchange their… Read More Here

Zambia’s Copper Production Set to Soar to 1 Million Tons by 2026 Amid Mine Expansions

April 7, 2024April 7, 2024 Constance

Zambia anticipates a significant rise in copper output, potentially reaching close to 1 million tons by 2026, driven by investments in expanding production at various mines, including those owned by First Quantum Minerals, according to Finance Minister Situmbeko Musokotwane. Copper production, crucial for Zambia’s economic prosperity, has been experiencing a gradual decline in Africa’s second-largest producer of the metal. Despite this, the government aims to boost output to around 3 million tons within the next decade. In 2023, copper output decreased to 698,000 tons from 763,000 tons the previous year,… Read More Here

International Economy

IMF to Grant $8.2M to Guinea-Bissau

April 5, 2024April 5, 2024 Constance

The International Monetary Fund (IMF) has proposed disbursing $8.2 million to Guinea-Bissau, pending approval by the IMF’s Executive Board. This funding, expected to be disbursed in May upon approval, is part of Guinea-Bissau’s Extended Credit Facility program, which commenced in January 2023. The program aims to allocate approximately $47 million to support the country’s economic adjustments. The IMF initiated the program to strengthen domestic resource mobilization, enforce expenditure controls, facilitate fiscal consolidation, and reduce public debt levels. Jose Gijón, the head of the IMF mission in Guinea-Bissau, remarked that “the… Read More Here

Mining in Zambia Economy

Zambia Association of Manufacturers Foresees Economic Recovery Post-Debt Restructuring

April 4, 2024April 4, 2024 Constance

The Zambia Association of Manufacturers (ZAM) expresses confidence in the restoration of Zambia’s credibility among the international community and lending institutions following debt restructuring. ZAM President Ashu Sagar asserts that Zambia can now focus on economic growth, thanks to debt restructuring measures. Sagar emphasizes that restructuring will enable the country to allocate resources towards crucial sectors, promoting investment and development. The previous debt burden had created uncertainty for the private sector and potential investors, hindering domestic economic growth. Sagar urges remaining commercial creditors to expedite negotiations to ensure a swift… Read More Here

Mining in Zambia Economy

Zambia negotiating $3.3 bln commercial debt restructuring, after bonds deal

April 3, 2024April 3, 2024 Constance

Zambia is in talks to restructure $3.3 billion of commercial debt, after reaching a deal with overseas holders of its sovereign bonds last week, an official said on Wednesday, as the country seeks to emerge from a three-year default.“We have already started negotiations and with some we are almost reaching there,” Secretary to the Treasury Felix Nkulukusa said at a public meeting, referring to private creditors other than bondholders. “The $3.3 billion is the money that we have to continue engaging (on) and we are engaging in good faith,” he… Read More Here

Mining in Zambia Copper Economy

Zambia’s Minister of Mines Declares Glencore’s Exit from Mopani Copper Mines

April 3, 2024April 3, 2024 Constance

The Minister of Mines and Mineral Development, Paul Kabuswe, has announced a significant development in the operations of Mopani Copper Mines (MCM). According to Mr. Kabuswe, Glencore, the Swiss mining and commodity trading giant, has completely disengaged from Mopani following the resolution of a substantial debt issue by International Resources Holdings (IRH). Initially, Glencore was owed a substantial sum amounting to US$1.7 billion. However, through negotiations with the government, this debt was successfully reduced to US$400 million. This negotiation paved the way for Glencore to sever its ties with Mopani,… Read More Here

Mining in Zambia Economy Press Release

FQM COMMITS TO STRENGTHENING LOCAL PROCUREMENT AND CAPACITY BUILDING

March 29, 2024March 29, 2024 Constance

First Quantum Minerals Ltd has reaffirmed its dedication to fostering local economic development through enhanced procurement strategies and supplier capacity building. This commitment was underscored during a visit to the company’s Trident project this week by senior representatives of the Zambia Association of Manufacturers (ZAM). This senior delegation included the ZAM President, Board Members, and the organisation’s CEO.In line with the government’s drive to support local businesses and communities, First Quantum is prioritising local procurement initiatives and actively engaging with local suppliers. “We believe that local procurement is essential for… Read More Here

Mining in Zambia Economy

Zambia’s Inflation Surges to Over Two-Year High Amid Severe Drought

March 28, 2024March 28, 2024 Constance

Zambia’s annual inflation rate has soared to its highest level in over two years due to the country’s worst drought on record, resulting in a sharp increase in food prices. According to acting Statistician General Chola Daka, the consumer price index rose to 13.7% in March, compared to 13.5% the previous month, with prices rising by 1.2% within the month. The spike in inflation was primarily driven by surging prices of bread, cereals, and meat, causing food inflation to jump to 15.6% from 14.1% in the previous month. However, non-food… Read More Here

Mining in Zambia Economy

World Bank Applauds Zambia’s Debt Restructuring Agreement with Bondholders

March 27, 2024March 27, 2024 Constance

The World Bank has lauded the recent agreement between the Zambian Government and bondholders regarding the terms for restructuring Eurobonds, marking a significant step forward in the country’s debt restructuring efforts. This agreement builds upon Zambia’s previous deal with official bilateral creditors in 2023. The Official Creditor Committee has affirmed that the terms meet comparability of treatment requirements and align with the parameters of the Joint World Bank-International Monetary Fund Debt Sustainability Framework. To finalize the debt restructuring process, the World Bank emphasizes the importance of other commercial creditors agreeing… Read More Here

Mining in Zambia Economy

Zambia Nears Debt Resolution with $3 Billion Bond Restructuring

March 27, 2024March 27, 2024 Constance

Zambia announced on Monday a breakthrough agreement with private creditors, restructuring $3 billion of its international bonds, marking a significant milestone in its debt restructuring efforts. President Hakainde Hichilema hailed the agreement as historic, signaling progress in negotiations with Eurobond holders. Zambia’s debt restructuring, facilitated under the Common Framework, has faced significant delays, impacting investments, economic growth, and local financial markets. Despite challenges, Zambia secured a $1.3 billion IMF loan in 2022, contingent on debt restructuring with other creditors. Following the announcement, Zambia’s sovereign bonds saw a rise in value.… Read More Here