Monday, May 23, 2022
  • Login
Upgrade
The Southern African Times
  • Home
  • Southern Africa
  • Global
  • Business
    • African Start ups
    • African Continental Free Trade Area
  • Tech
  • Opinion
  • Sports
  • Lifestyle
    • Health
    • Culture
    • Food and Drink
    • Entertainment
  • SAT Jobs
No Result
View All Result
  • Home
  • Southern Africa
  • Global
  • Business
    • African Start ups
    • African Continental Free Trade Area
  • Tech
  • Opinion
  • Sports
  • Lifestyle
    • Health
    • Culture
    • Food and Drink
    • Entertainment
  • SAT Jobs
No Result
View All Result
The Southern African Times
No Result
View All Result
Home in Southern Africa

Zambian Banks Gain Record Profits from Government Debt

by SAT Reporter
April 12, 2020
in in Southern Africa
0
Zambian Local Bank
0
VIEWS

Zambia’s government debt is yielding as much as 33% thanks to a widening budget deficit, and there’s one clear winner: local banks, which are reaping record profits.

Standard Bank Group Ltd.’s Zambian unit earned more in the country in 2019 than any lender ever has, according to a statement by the company, Stanbic Bank Zambia Ltd. That’s partially due to rising interest income from holdings of government securities, and in a year when the economy was growing at about 2%, the slowest pace in more than two decades.

“It’s one of the best deals, really,” Leonard Mwanza, chief executive officer of the Bankers Association of Zambia, said in an interview in Lusaka, the capital. The only underlying risk would be for companies converting kwacha earnings into foreign currencies, he said. The Zambian currency has weakened 18% against the dollar in the past 12 months.

Stanbic posted profit before tax and costs of 1.72 billion kwacha ($117 million) last year, with 64% of that attributable to interest income. Net income leaped 96% to 449 million kwacha.

The southern African nation’s budget shortfall widened to 8.2% of gross domestic product on a cash basis last year, missing the 6.5% target, according to finance minister Bwalya Ng’andu. During the same period, external debt rose to a record $11.2 billion from $10 billion a year earlier, while local-currency debt rose to 80.2 billion kwacha from 58.3 billion at end-2018.

The increased issuance from the government has been driving up yields, according to Mwanza.

“When you talk of the yields, both on the treasury bills and the bonds, it emanates from the fiscal side,” he said. “It speaks to the appetite from the government to raise sufficient revenue to cover their outflows.”

Yields on benchmark one-year government treasury bills are more than double the annual inflation rate of 12.5% in January, giving investors a real return far above other asset classes.

Previous Post

Mozambique’s economy grew 2.03% in Q4

Next Post

Nigeria offers longer-term naira contracts to attract investors

SAT Reporter

Related Posts

South African President calls for dialogue after alleged racist incident
in Southern Africa

South African President calls for dialogue after alleged racist incident

by SAT Reporter
May 23, 2022
Namibia Launches Sovereign Wealth Fund
Business

Namibia Launches Sovereign Wealth Fund

by SAT Reporter
May 18, 2022
Zimbabwean gov’t urged to close legal loopholes of diamond smuggling
Zimbabwe

Zimbabwean gov’t urged to close legal loopholes of diamond smuggling

by SAT Reporter
May 18, 2022
Tanzania hosts forum to mark 100th anniversary of Nyerere’s birth
Tanzania

Tanzania hosts forum to mark 100th anniversary of Nyerere’s birth

by SAT Reporter
May 18, 2022
Zimbabwean banks will not lend to stop the currency’s slide.
Markets

Zimbabwean banks will not lend to stop the currency’s slide.

by SAT Reporter
May 9, 2022
Next Post
Pictured President of Nigeria President Muhammadu Buhari

Nigeria offers longer-term naira contracts to attract investors

Premium Content

AfD Bank’s Youth Entrepreneurship and Innovation  Trust Fund provides more than $7.3 million for youth employment

AfD Bank’s Youth Entrepreneurship and Innovation Trust Fund provides more than $7.3 million for youth employment

August 25, 2021
Cricket: South Africa to tour Ireland in July

Cricket: South Africa to tour Ireland in July

February 16, 2021
The end of an era for South Africa: Ramaphosa

The end of an era for South Africa: Ramaphosa

August 17, 2021

Browse by Category

  • African Continental Free Trade Area
  • African Start ups
  • Algeria
  • Analysis
  • Angola
  • Asia
  • BOTSWANA
  • Botswana
  • Burkina Faso
  • Burundi
  • Business
  • Business
  • Cameroon
  • Central Africa
  • China
  • Climate Change
  • Climate Changev
  • Congo Republic
  • COVID 19
  • Culture
  • Democratic Republic of Congo
  • Eastern Africa
  • Egypt
  • Entertainment
  • Environment
  • Ethiopia
  • Europe
  • Fashion
  • Finance
  • Food
  • Food and Drink
  • Foods
  • Ghana
  • Global
  • Guinea
  • Health
  • Immigration
  • in Southern Africa
  • International news
  • Just In
  • Kenya
  • Lesotho
  • Libya
  • Life Style
  • Lifestyle
  • Malawi
  • Malawi
  • Mali
  • Markets
  • Middle East
  • Mozambique
  • Namibia
  • Nigeria
  • North Africa
  • Opinion
  • Politics
  • Rwanda
  • Senegal
  • Seychelles
  • South Africa
  • South Sudan
  • Sports
  • Startup Africa
  • STOCK EXCHANGE
  • Tanzania
  • Tech
  • Togo
  • Travel
  • Travel
  • Tunisia
  • Uganda
  • Uncategorized
  • West Africa
  • World
  • World
  • ZAMBIA
  • Zambia
  • ZIMBABWE
  • Zimbabwe

Browse by Tags

African business news Africa New Africa News african footballer African investments African manufacturing industry African news African start-up Business Classic Content coronavirus Cyclone Idai Egypt Explore Bali Finance Foods football Health Hopewell Mauwa kwacha Life Style mali news Market Stories MthuliNcube news Odion Ighalo Oilandgas Pandemic Premium reserve bank of Zambia Russia soccer South Africa Southern African News sports Stay Home United Stated Vaccine Work From Home Wuhan Zambia Zimbabwe Zimbabwe Harare Manufacturing Africa Employment creationn Zimbabwe job creation

WHO WE ARE

The Southern African Times is a regional bloc digital newspaper that covers Southern African and the world news. The paper also gives a nuanced analysis on news and covers a wide range of reporting which include sports, entertainment, foreign affairs, arts and culture.

Facebook Twitter Youtube Instagram Rss

Copyright © 2022 The Southern African Times | Powered by The Southern African Times

Privacy Policy

Terms and Conditions

  • Home
  • Southern Africa
  • Global
  • Business
    • African Start ups
    • African Continental Free Trade Area
  • Tech
  • Opinion
  • Sports
  • Lifestyle
    • Health
    • Culture
    • Food and Drink
    • Entertainment
  • SAT Jobs

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?