Bayport- Bayport last year boosted a net profit of 280 million kwacha in 2018 but last week had to force some workers on leave; and stopped lending money to goverment workers because government has not remitted money to them from December.
My thoughts..Danger of declaring profits and another indication that government is in problems in terms of liquidity.
Zanaco – Zanaco also boosted 187 million in profits and has succeeded in now attracting alot of talented managers from other banks like standchart and stanbic; who have bein retrenching workers. This will probably increase its efficiency and we expect better things from them this year. Already their are branches infastructure has been improved.
Zambia Breweries – This is probably the biggest news in the private sector with galloping ZMW 1.4 billion profit from about 230 million last year. It’s not a mistake it’s not revenue but profits. This will encourage foreign direct investments into that country and hopefully excite the market at the stock exchange. How much will be ‘re invested in Zambia?
Debt (inter) increases to $10 billion – another shocking news that our debt has increased to $10.7 billion from $8.7 billion last year, with an explanation that it was already contracted or committed debt. It’s no hidden secret that government struggled to honour it’s debt obligations this month with analyst indicating that this might have caused salary delays for most government related institutions. The question is this the beginning of a problem we have all anticipated or was it just a hiccup? If it is, we may manage is month but problems will hit us next month.
Local Debt increases to ZMW 58 billion – this also has increased from about ZMW 48 billion last year; this is basically more bad news for local business like I have mentioned above; Bayport for example. For SME this is another indication of a horror 2019, we will see the closures of small companies and alot of repossessions by banks.
We are in load of problems
Pay debt in yawn – This is a bright idea by government and supported by the economical association of Zambia. The idea is bascally to weaken the dollar by reducing its relevance as the major drive in the Zambian economy. My fear is that the USA will not take this kindly if the Chinese accept the proposal. It’s basically declaring war against them and I hope we are prepared for the consequences.
Atlas Mara forces Lamasat into liquidation- One of the biggest manufacturing and retail company in Zambia falls on its face. Just two to three years ago this company was shining with alot of controversial contracts with government worth millions. Hundreds of workers to lose jobs and a big loss to one of the major companies in Zambia. Cause ;As indicated earlier the effects of government not having liquidity to meet its obligations; the other thought is that they have externalised all the money and they don’t want to own up to their debt; they have now used this to set up big companies in their country of origin.
Is Mahtani not part of this? Is he not the Rupert master of Atlas Mara?
Zambezi ported back with Matani- The never ending story of who owes Zambezi Portland this story is almost a gangster movie with both sides having very expensive bodyguards in fear of the other. This is a story for another day.
Let’s entertain thinking