Business

Copper price making Kwacha strong

MINERS processing copper at one of the mines on the Copperbelt.

TRYNESS TEMBO, Lusaka
ZAMBIA’S positive macro-economic fundamentals are expected to augment businesses operations and to build up on investor confidence.
Currently, copper is trading at about US$6,800 a tonne while the Kwacha is below K10 and inflation rate is at 6.6 percent.

Madison Financial Services says the current increase in copper prices on the international market will result in the Kwacha remaining strong and points to a steady operating environment.

According to results for the half year ended June 30, 2017 issued by Madison Financial Services company secretary Kafula Mwiche said the prevailing macro-economic factors point to a stable operating environment.
“The general economic prospects appear to be looking up, creating a better environment for bridging the gap to attain our objectives for the year. Copper prices have seen a recovery in 2017, and therefore, the local currency is expected to remain buoyant. Also inflation and interest rates have also dramatically come down,” Mr Mwiche said.
Mr Mwiche said management is also taking advantage of the various investment opportunities in line with Government’s priority sectors, particularly the health sector.
He said the company’s focus is to develop real estate for purposes of providing medical services in partnership with international operators and has already broken ground for one project in Lusaka.
Mr Mwiche said the group is also taking advantage of an opportunity that has arisen to increase its equity stake in the microfinance business from 50 percent to 100 percent at the expiry of the investment horizon of its foreign partners in the business.
The firm recorded a 26 percent growth from about K17 million last year to over K23.1 million in the same period, indication of a continued successful recovery, which combined with other factors and may lead to impressive profit growth to the end of the year.
“Operating results for the half year period ended June 30, 2017 recorded a 26 percent growth from K17,012,241 in the same period last year to K23,138,870.
“The group has continued to deliver sustained profitability through innovation and in that regard, various products and distribution channels have been introduced,” he said.

 

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