STANDARD Bank of South Africa has called on the new administration to be pragmatic in its discussions with foreign investors in the copper industry.
The bank notes that given the downside risks to copper prices induced by global growth prospects, the new administration is expected to be pragmatic in its discussions with foreign investors in the copper industry.
In a statement issued in Lusaka the bank notes that the victory by Patriotic Front (PF) leader President Michael Sata brings the Movement for Multiparty Democracy (MMD) 20 year rule to an end.
Last month, the Standard Bank that trades as Stanbic in Zambia predicted that the MMD would win the 2011 elections.
The bank, however, notes that with the promise of change in President Sata’s election campaign, there is anticipation of change to economic policy framework especially taxation and regulation of the mining sector.
“While the PF’s election campaign centred around increasing the benefits of Zambia’s vast natural resources to the broader public, he (Sata) is unlikely to want to jeopardise the significant investment flows that the copper industry attracts,” reads the statement.
Standard Bank adds that investment commitments by copper producers are estimated at around US$6billion for the period 2011 to 2013.
It noted that the PF has suggested introduction of new measures to increase the revenue collections from the mining sector after discussions with the industry.
“Interestingly, many of the development agreements (not public information) that the government has signed with mining companies are set to expire before the end of Sata’s first term.
“Yet given the downside risks to copper prices induced by waning global growth prospects, we expect the new administration to be pragmatic in its discussions with foreign investors in the copper industry,” reads the statement.
The bank notes policy direction to look out for will be the choice of economic ministers and the 2012 budget which is to be read in Parliament at the beginning of fourth quarter this year.
It also pointed that other policy directions would be the new government’s relationship with the International Monetary Fund after the last extended credit facility expired in June this year.
Meanwhile the Kwacha depreciated sharply against the US dollar in the immediate aftermath of the election result.
The Kwacha last week moved sharply from a close of K4,822 on the day of elections to K5,160 against the US dollar.
“The lack of certainty on the policy stance of the new government undoubtedly played its part. It is likely to continue to weigh on investor confidence in the short term even if there is some reprieve in global risk sentiment, depressed copper prices and US dollar strength,” notes the bank.
President Sata was declared the winner of the 2011 presidential elections on Friday last week after running for the fourth time with a 43 percent of the votes against 36 percent for the incumbent Rupiah Banda.
[Zambia Daily Mail]
Hooops
niba mwana nani ba standard south africa, when their govt is talking about empowering their stone throwing impi wielding zulu chaps do we hear zanaco talking?
the kwacha, the dollar the yen the pound all went down, no sane person will attribute the kwachas fall to sata’s victory, we all see the global stock exchange issues and the IMF has been issuing warnings about the possible recurrence of the global crisis and this was way before sept 20. so mwilabepa ba daily. are u still in dream land until tuma directors batutanfye inchito thats when u will wake up
The Rand last week fell to a 2 year low
hahaaahahhaa, very foolish bank, now that your opinion prediction is totally wrong, will we say your economics too are wrong? thats the stupidity of being used for political expediency. should i say that not a single opinion poll going by percentage was right except that on a general note that carried by the watchdog pegged sata on the first slot which according to them was more like people in the diaspora are the ones who voted for sata on their poll but on the ground, it dawned on them that Hakainde is still an under five slowly graduating into oblivision as mutinta this time around will voice her concerns about the party the great mazoka left behind.
I hope you shall not be issuing opinion polls in future. Just concentrate on Banking like the others Barclays and stanchart.
I do agree with the bank.for sure the govt need to be careful the way it handles ivestors.
It was not an opinion poll; most banks have to give some country assessment to their clients which covers economic and political indicators to help them make investment decisions. This time that assessment was way off target (it could become tough for the staff involved).
They are bulls..ting,these are the same f..kers who predicted that mmd will win,they are just a bunch of greedy business nicoopoomps.
How can we get advice from a delusional bank? You were wrong about your “intelligent” predictions. I advice everyone to leave this bank. Your money is not safe!
you see standard bank, when you do business in foreign countries please next time don’t involve your self in politics of that country otherwise you will always be defending yourself. on this you have yourself to blame. have you ever seen Zambian companies compaining in other countries including in RSA?
This is not MMD running the country where they allowed foreigners to dictate on the way we run our country. We are not going to be fooled by bribes. Let them go and control Malema in SA. They need us more than we more than we do.
They are entitled to their views. Let the government get rid of infesters and leave investors willing to work with them. I mean those infestors in streets selling oranges, gate men like at CCS, daka boys etc should not be allowed to renew work permits if at all they have such permits. Please conduct an audit on all chinese workers in mines because i doubt it that they are all staying here with valid work permits. They are the same ones causing confusion hence dainting the image of the good chinese.
Well such are statements expected from banks not opinion polls.
Some one should really put Standard bank in their place. they have no right to issue directions to our President. Since when did a Zambia Bank issue directions to President Zuma. Ahem weren’t they in the forefront telling us that RB and MMD would come back.
Already issuing policy instructions to government? They don’t seem to have realised things have changed
To H.E.L.L with this bank. With PF it’s local investors first then Foreign later. No B.U.S.Hit!
“Standard Bank adds that investment commitments by copper producers are estimated at around US$6billion for the period 2011 to 2013”
Investment commitment in which areas? buying of mining equipment which by the time these thieves close the mines would have been obsolete.We don’t care how much money is pumped in,after all it is you getting benefits of high copper prodctn due to better equipment. what we want to see is Zambia benefit in form of reasonable tax regimes, better pays for workers, participation in infrastructure development, no evading tax, etc,
This is what this B.U.shit of an investor should be talking about.we know you dubiously bought Finance Bank, just wait for your turn you racists.
just concetrate on your country, we dont need your predictions
Why should Standard Bank of South Africa start telling us what to do, when our people require financial assistance, all this bank cares for is that they are not South African white!! This is a racist bank, and has no interest of Zambians at heart. We must get back ZANACO and Finance Bank so that Zambians can use their own financial banks for their daily business.
What i know is Standard bank is Owned by the Chinese, ZANACO i dont have to tell you, if you are a Zambian you should know by now and Finance bank, two days b4 the elections the South African Whites got it. Basically we have no Zambian Bank apart from the Post Office Bank
@gazi your wrong, standardbank is not owned bt the chinese!………. a chinese company only owns 20% of the bank , the major 4 banks in south africa by law have to stay within south african banks unless the reserve bank allows it …banks are standardbank , fnb , absa(though its owned by barclays now was the 1st and the last) , nedbank
corrections barclays has a controlling stake in absa at 54% it doesn’t own the bank
Standard Bank has to learn to tow the line and respect Governance issue of Zambia by Zambians. You made an error of judgement by taking sides publicly and now no one will take you seriously as the reputation of your bank is down the gutter – no investor will believe your analysis as it will be baselessWith regards to the agreement signed by the previous Government and I quote ““Interestingly, many of the development agreements (not public information) that the government has signed with mining companies are set to expire before the end of Sata’s first term.” Well the will of the people voted for PF so that we can change these inequalities that favours a few individuals. These are our national resources and they will never be replenished
This bootlicking Standard Bank should shut up! their stupid analysis of Zambian politics greatly contributed to MMD’s oppression of Zambian media becoz MMD would question why they would dare have a different opinion when a foreign bank was predicting Banda would win. the Bank should fire its manager here for making false predictions or close shop. the stupid bank should stay out of our politics! How come Barclays says nothing about Zambian politics. even during appartheid Standard. Bank refused to join sanctions against the racists preferring to benefit from the exploitation of. Blacks fimuselela kwakaba! Get lost!
Australia had the same issue and upon the new Government being voted in the mines conceded or rather gave favourable terms for the windfall tax. Zambia has to be seen to benefit from our own resources regardless of the investors that is getting it out. Why should the shareholders (foreign shareholders) largely benefit from our resources and we remain as poor as ever? The windfall tax will be a basis for our Government to ensure good roads, hospitals stocked with medicine, education improvement. Scare the investors – well if they go the Chinese will readily come in as they need our resources badly
Standard bank, i told you that you had made a very bad blunder when you wanted to sway people’s mind by your opinion poll.
Your working relation with the govt shall not be good and rightly so!
Let the goverment look at cheap investors. We don’t need them, we have suffered alot. These SA are coming here getting our jobs with big salaries, while Zambian are suffering. Who is giving them work permit? They are not even educated comapred to Zambian. Viva President Sata please change the Zambian attitude.
Standard Bank….!!!!
Go comment on your nation’s politics, and just do good business in Zambia.
For a long time now this bank never says anything positive about Zambia and it profits from bad speculation on copper and politics. Zambians should stop banking with evil banks like Stanbic Zambia so that Standard Bank SA gets the message loud and clear.
Bank of Zambia and DEC should immediately move in and audit this corrupt bank. Remember Hon. Lubinda gave us an account number at this bank which UPG and MMD used to launder funds. Barclays Bank and ZANACO have branches through out the country but did not give an opinion on the outcome of the elections, who is Stanbic ban to try and mislead the nation? Your time in Zambia is up.
I TOLD MY TONGA FREINDS THAT HH HAS INTELLIGENCE BUT NO WISDOM NOW HE IS A COMMEDIAN RELIGATED TO TH E DUSTIBINS OF POLITICS HE HAD ONE CHANCE TO SELL HIMSELF AND HE BLEW IT CAUSE OF OVERATING HIMSELF WHAT A FOOL!
My dear friend Stanbic. Get out of Zambia and go to a country where you will be allowed to start predicting the winner. Stupid bank
Fellow bloggers, we need decampaign this bank in Zambia. it is a total shame to Zambians to be insulted by such a bank and we continue banking with it.
Do not leave any money with Stan bic ninshi impiya shapwa