Dennycas Acquisitions Ltd

29/08/2025

WHY DO COUNTRIES BORROW MONEY INSTEAD OF JUST PRINTING IT .

Countries borrow money instead of just printing it for several reasons:

1. Inflation Control

Printing money can lead to inflation, as excessive money supply chases a limited number of goods and services. Borrowing money helps maintain inflation control.

2. Economic Stability

Borrowing money allows countries to maintain economic stability by avoiding sudden increases in money supply, which can disrupt the economy.

3. Credibility and Trust

Borrowing money demonstrates a country's commitment to fiscal discipline and responsibility, maintaining credibility and trust with investors and citizens.

4. Interest Rates and Monetary Policy

Borrowing money allows countries to influence interest rates and implement monetary policy, guiding economic growth and stability.

5. International Trade and Finance

Borrowing money enables countries to participate in international trade and finance, accessing foreign capital markets and maintaining global economic relationships.

6. Fiscal Responsibility

Borrowing money forces governments to prioritize spending, make tough budget decisions, and demonstrate fiscal responsibility.

7. Avoiding Currency Devaluation

Excessive money printing can lead to currency devaluation, making imports more expensive and reducing the country's purchasing power. Borrowing money helps maintain currency value.

8. Encouraging Savings and Investment

Borrowing money encourages savings and investment, as governments and citizens understand the value of borrowed funds and the importance of repaying debts.

9. Reducing the Risk of Hyperinflation

Printing money recklessly can lead to hyperinflation, rendering the currency nearly worthless. Borrowing money mitigates this risk.

10. Maintaining Sovereign Credit Rating

Borrowing money and managing debt responsibly helps maintain a country's sovereign credit rating, influencing its ability to access credit markets.

By borrowing money instead of printing it, countries can maintain economic stability, control inflation, and demonstrate fiscal responsibility, ultimately promoting sustainable economic growth.

Dennis Kanyakula MBA BAcc ZICA
Accountants on Call

21/03/2025

21/03/2025

Dennycas Acquisitions prides itself on offering top-tier corporate services to our clients, leveraging the expertise of our seasoned professionals to resolve tax issues, devise corporate strategies, deliver corporate training, and provide accounting, financial planning, company registration, and other business-enhancing services. We serve as your accessible accountants on call. You can contact us on 965361000

21/02/2025

15/02/2025

For professional company incorporation services, phone DENNYCAS ACQUISITIONS at 0965361000.

02/01/2025

INVESTMENT IN SHARES (SECURITIES)

How do you invest in securities?

One of the most common and easiest ways of buying and selling stocks, mutual funds, and bonds is through a brokerage house. Brokerage firms typically require you to open an account with them and deposit a certain amount of funds as a show of good faith.

Investments in stocks in Zambia

To buy shares or bonds, contact a stockbroker who will buy the instrument on the stock exchange, such as the Lusaka Stock Exchange for you. The minimum amount you can invest in shares or bonds depends on the price of the share or bond you want to buy and the minimum number of shares that can be transacted.

Can you make money from securities?

You can make money in stocks by opening an investing account and then buying stocks or stock-based funds, using the "buy and hold" strategy, investing in dividend-paying stocks and checking out new industries.

APPLICATION PROCEDURE FOR INVESTING IN GOVERNMENT SECURITIES

In 2024, Government of the Republic of Zambia through the Bank of Zambia established an online investor portal for investing in Government securities. The online portal allows eligible investors to purchase Government securities online.

What is the minimum amount to buy shares in Zambia?

On page 27 is the application form for the shares. People can fill it in and submit to any stockbroker. The stockbroker details and addresses can be found on page 29. The minimum purchase is 20 shares at K38 per share (K760), then in lots of 10 if you are purchasing extra (ie 20, 30, 40 shares etc)

What is the interest rate on treasury bills in Zambia?

In the latest reports, Zambia Short Term Interest Rate: Month Avg: Zambia: Treasury Bills Yield: 91 days was reported at 10.00 % pa in May 2023. The cash rate (Policy Rate: Month End: Zambia) was set at 13.50 % pa in Oct 2024.

Dennis Kanyakula MBA - Finance, BAcc, ZICA.
DENNYCAS ACQUISITIONS LTD

06/11/2024

What is capitalism in simple terms?

Capitalism is often thought of as an economic system in which private actors own and control property in accord with their interests, and demand and supply freely set prices in markets in a way that can serve the best interests of society. The essential feature of capitalism is the motive to make a profit.

Capitalism refers to an economic system in which a society's means of production are held by private individuals or organizations, not the government, and where products, prices, and the distribution of goods are determined mainly by competition in a free market.

Who benefits in capitalism?

Capitalism tends to benefit capitalists the most. These include business owners, investors, and other owners of capital. While capitalism has been praised for improving the standard of living for many people across the board, it has by far benefited those at the top.

Is capitalism good or bad?

While capitalism helps propel innovation and prosperity in modern society, it can also create inequalities and contribute to market failures. Capitalism is the direct opposite of communism, which is a system that is controlled by the government.

What are the 4 types of capitalism?

It classifies capitalist economies into four categories: oligarchic capitalism, state-guided capitalism, big-firm capitalism, and entrepreneurial capitalism.

How does capitalism affect society?

In capitalist societies, all aspects of peoples' lives and social relations are subjected to market requirements which are then normalized and made to seem natural. People's prestige and status are related to their productive ability; society values people by how much they earn or own.

Dennis Kanyakula MBA. BAcc. ZICA.
Accountants on Call

Call now to connect with business.

04/11/2024

THE CONCEPT OF WEALTH MAXIMIZATION

What is Wealth Maximization?

Wealth maximization is the concept of increasing the value of a business in order to increase the value of the shares held by its stockholders.

Wealth maximization focuses on increasing the market value of a company's shares and enhancing shareholders' long-term wealth. It emphasizes sustainable growth, cash flows, and considers the timing and risk of returns.

Wealth maximization involves enhancing the value of a business to boost the worth of the shares owned by its stockholders. In financial management, wealth maximization refers to making strategic decisions that increase the value of a business, investment, or personal finances over time.

What is the difference between Profit Maximization and Wealth Maximization?

Profit Maximization refers to increasing the company's profit, while Wealth Maximization aims to accelerate the entity's value. Profit maximization is the primary goal since profit is the measure of efficiency, while wealth maximization aims to increase stakeholder value.

Advantages and Disadvantages of Wealth Maximization.

Wealth maximization offers a clear financial objective with potential benefits like long-term growth and shareholder satisfaction. However, it can also lead to ethical and risk-related challenges and may not always align with the interests of all stakeholders.

Dennis Kanyakula MBA, BAcc ZICA
Accountants on Call

03/11/2024

WHAT IS BUSINESS?

People also ask
What is the definition of a business?

A business is defined as an organization or enterprising entity engaged in commercial, industrial, or professional activities. Businesses can be for-profit entities or non-profit organizations. Business types range from limited liability companies, sole proprietorship, corporations and partnerships.

Business is the practice of making one's living or making money by producing or buying and selling products. It is also "any activity or enterprise entered into for profit." A business entity is not necessarily separate from the owner and the creditors can hold the owner liable for debts of the business if it’s a sole proprietorship or partnership.

Business is an economic activity that involves the exchange, purchase, sale or production of goods and services with a motive to earn profits and satisfy the needs of customers.