Investors are awaiting evidence that Zambia’s efforts to shore up its currency will succeed as the government starts marketing a Eurobond, sub-Saharan Africa’s first sovereign international debt sale this year.
Zambia’s kwacha weakened for a fourth day, the world’s worst performer after Ukraine’s hryvnia, as dollar supplies in Africa’s second-biggest copper producer dried up and the price of the metal stayed near a 44-month low.
Zambian President Michael Sata fired the governor of the central bank and its board, reversed a foreign takeover of a local lender and temporarily halted metal exports within two weeks of taking office. Investors in Africa’s biggest copper producer aren’t panicking.
Vedanta Resources Plc’s Konkola Copper Mines Plc unit has removed “a lot of money” from Zambia and wants the government to assume its liabilities that exceed $1.5 billion, said the nation’s Vice President Guy Scott.
Kishore Kumar, head of Vedanta Resources Plc’s Zambian unit, said police reports that he deposited 200,000 kwacha ($35,971) in the bank account of a man impersonating President Michael Sata were incorrect.
Michael Sata, president of Zambia, Africa’s biggest copper producer, ordered that all exports need to be cleared by the central bank and called for investigations into the sales of Finance Bank Zambia and the state-owned phone company.