IMF URGES COPPER PRICES VOLATILITY HEDGING FOR ZAMBIA

The International Monetary Fund has re-reiterated the Zambian economy’s vulnerability to the global copper prices volatility.

The IMF has further proposed affirmative policy and other measures to hedge the country against another copper crisis, similar to the one in the 1970s, which partly accounted for the beginning of Zambia’s economic woes.

The proposal follows the IMF executive board’s recent 2012 consultations with Zambia.

 The board has therefore concluded that though the Zambian economic forecast is positive, timely policy measures are needed to avoid the country heavily suffering the effects of the copper prices volatility.

Among the measures indicated are the prioritising of expenditure on economic growth activities and the strengthening of the tax administration.

Meanwhile, the IMF has also forecast a 7.7 per cent economic growth for Zambia this year, as well as a slowed down inflation rate of 6 per cent by year-end.

PUMA ZAMBIA TAKEOVER FINALISED

Puma Energy Ireland has finalised its 75 per cent acquisition of Puma Energy Zambia, formerly BP Zambia.

This follows the conclusion of 2010 share sale and purchase agreement for BP Africa, the previous holding company for BP Zambia.

According to a notice placed by Puma Energy Holdings, Ireland, the acquisition transaction was concluded on 1^st April 2011.

Puma Energy Ireland has since assumed controlling ownership in the Lusaka Stock Exchange-listed Puma Zambia.

The company has further announced the process of mandatory offer to minority shareholders in the local entity.

Details of the mandatory offer are yet to be announced.

Puma Energy Ireland’s acquisitions in the African petroleum market arise from BP Africa’s sale of its retail assets in Malawi, Botswana, Namibia, Tanzania and Zambia.