Zambian 2013 Budget Reviewed by Kampamba Shula

On 12 October 2012, the Minister of Finance, Hon. Alexander Bwalya Chikwanda, MP, announced the 2013 National Budget. Budget highlights and taxation and other changes as contained in the Budget speech and the Zambia Revenue Authority (“ZRA”) publication.

INDECO (IDC): Past Problems and Opportunities Analysed by Kampamba Shula

INDECO (IDC): Past Problems and Opportunities Analysed

Critical Review of IMF 2013 Zambia ARTICLE IV CONSULTATION report by Kampamba Shula

Debt management is still on track The agreed norm is that for internal borrowing the threshold is 25 per cent of GDP but our debt stands at K17 billion, which is 15 per cent of GDP and for external borrowing, the threshold is 40 per cent and our debt is US$3.1 billion which is 14 per cent of GDP, so we are far below the agreed norms. So even in the long term , Zambia is still on track.

US Economy 2014 First Quarter Analysis and Outlook by Kampamba Shula

New data shows the U.S. economy contracted in the first quarter of this year, keeping pace with shifting expectations but down sharply from the prior already disappointing estimate.

Zambia Debt Analysis

Some might say that Zambia should not borrow externally and even as sincere as they may be they are wrong. When the Government borrows locally “Crowing out” happens.

Showing posts with label Shake Shake. Show all posts
Showing posts with label Shake Shake. Show all posts

Tuesday, September 18, 2012

Zambia's $750 MIL Euro Bond Explained in Simple English

By  1:36 AM  , , ,  No comments
I was having a discussion with a friend yesterday about the recent Euro Bond that Zambia issued.He didnt seem to understand so I gave him an example with which he could relate to.
My friend is a bricklayer and works peacework sometimes which varies in amounts,but lets put an estimate of K10,000 a day.
Everyday he comes to the bar to have a drink of his favourite brew "shake shake".Now for example assuming one day food runs out at home and he has to spend his last money on food and does exaclty that, leaving him nothing for his favourite brew.
Assuming he still wants to drink,he agrees with the bar tender that he will borrow one packet of brew which costs K2500 and will pay it back like a Euro Bond over 10 days.
Now Follow me, this means he will pay the coupon rate of 5% everyday for 10 days.This means he will pay the bartender K125 (5% of K2500) everyday for 10 days.
At the end of the 10 days he will pay the bar tender the original K2500 for the brew and his debt will be cleared.
Now, the 10 days represents 10 yrs,the K2500 represents a quarter of K10,000 which is the same as $750 million which Government borrowed as a quarter of Zambia's annual budget of $3 billion.The coupon rate is 5.375% to be exact but everything is exactly done in the same way as the example above.
Any Questions???
Read More