Graham Soko, a shopkeeper whose business straddles the railway line south of Lusaka station in Zambia’s capital, says he’s hoping to reap profits from the government’s plans to rejuvenate the dilapidated railway system.
Sub-Saharan African nations outside South Africa are selling $7 billion of debt this year, more than in the past five years combined, as yields more than double those of Treasuries lure investors repelled in the past by violence and corruption.
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.
Zambia’s kwacha is set to continue its slide against the dollar and may depreciate as much as 5 percent over the next 12 months, according to the country’s biggest lender, Zambia National Commercial Bank Plc.