Zambian Kwacha Overtakes Russian Ruble as World’s Best Performing Currency in 20...

The Uganda Securities Exchange (USE) has announced permitting ChipperCash Uganda to offer stock brokerage services on the Ugandan bourse, according to a post released on Twitter.

This comes after the company acquired a stock brokerage license from the Capital Markets Authority in Uganda whereby it was said to pass all the requirements necessary to offer stock brokering on the USE.

The USE, through the Board Chairman, indicated that it is expecting the company, often called Chipper, ‘will drive financial inclusion using its fintech business model.’

The document shared indicated that Chipper’s main role as a stockbroker on the USE will be to enable existing and new investors to execute trades in relation to stocks and bonds listed on the securities exchange.

Stockbrokers execute trades on behalf of their clients, or members. While individuals can buy and sell shares on exchanges on their own, the use of stockbrokers is the easier and common route investors take to trade on exchanges.

Chipper Cash Uganda country Director, Dan Tumuramye, wrote about the new service on the company blog, where he added a quote from one of the company’s founders and CEO, a Ugandan, Ham Serunjogi:

“For the first time ever, Ugandans of all economic backgrounds will be able to invest as little as $1 or 3,500 Ugandan Shillings in the world’s largest public companies listed on the New York Stock Exchange – when we talk about unlocking global opportunities, this what we mean.

As a proud Ugandan, it means so much to me that we get to launch a product that will empower my fellow countrymen and women.”

– Chipper Cash CEO

From the post, the company is launching U.S. fractional stocks in the new service, touted as ‘revolutionary and impactful.’

Ugandans will now be able to invest in stocks of companies such as Netflix, Tesla, Facebook, and Amazon on the same platform where they can also buy cryptocurrencies.

The firm will be offering an entry into stocks, mutual funds, and exchange-traded funds (ETFs).

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The Zambian Kwacha has surpassed the Russian Ruble to become the world’s best-performing currency in the world as of 1st September 2022.

Zambia’s official currency has bucked the trend of depreciating currencies in Africa over the last 12 months and was pushed to the best globally following confirmation of a $1.3 billion relief package to assist the country that is coming out of years of economic mismanagement.

According to a statement by IMF, the package will help with the government’s reform plan. Features of the plan include:

• Restoring debt sustainability
• Create fiscal space for much-needed social spending
• Strengthen economic governance.

News of the confirmation was greeted with joy across the country as the Kwacha reportedly gained 3.1% in a day. President Hakainde Hichilema took to Twitter to elaborate on their intentions with the facility that came after IMF evaluated their plans:

We want to reduce and restrict debt within sustainable levels. Few months ago, we were out of line with our debt. This plan ensures we stay within line, external and domestic debt, so that we can spend more money on the growth side of the equation. #8NDP #EconomicTransformation pic.twitter.com/O30xMN55VF

— Hakainde Hichilema (@HHichilema) September 1, 2022

“Securing timely restructuring agreements with external creditors will be essential for the successful implementation of the new ECF arrangement,” IMF said.

The IMF (International Monetary Fund) deal follows an agreement in late July 2022 with China and France to negotiate the restructuring of the country’s debt:

“The Bank of Zambia should continue its efforts to reduce inflation and preserve financial stability. International reserves should be replenished as conditions allow and the exchange rate should continue to reflect market conditions. Addressing high NPL levels and ensuring adequate capital buffers will also be important.” – IMF

In the last 12 months, inflation dropped by 12 percentage points, a situation that has drawn plaudits for the new government that came to power in August 2021.

Zambia is one of the best-performing countries on the continent when it comes to inflation management. Inflation declined to 9.8% in August 2022 from 9.9% the previous month.

The Central Bank of Zambia has projected that inflation will average 11.4% in 2022, and eventually drop to single digits in 2023 as it expects the rate to go back within a target range of 6% and 8% by 2024.

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