Industrial Development Corporation Limited settlement of loan owed to ZCCM Investment Holdings PLC (Updated)

The Shareholders of ZCCM Investment Holdings Plc (“Shareholders”) are referred to the announcement published on the Securities Exchange News Service (“SENS”) by ZCCM-Investments Holdings Plc (“ZCCM-IH” or the “Company”) dated 15th June 2018.

The announcement advised that on 2 April 2018, ZCCM-IH and the Industrial Development Corporation Limited (“IDC”), majority Shareholder, entered into a related party transaction through a Loan Facility Agreement whereby ZCCM-IH advanced a loan amount of US$19,000,000 to the IDC with a maturity period of 12 months.

ZCCM-IH wishes to announce that the IDC has fully settled the principal and interest amounts owed to ZCCM-IH. The payment was made on 2 April 2019 in line with the Loan Facility Agreement between the parties.

By Order of the Board
Chabby Chabala
Company Secretary

Issued in Lusaka, Zambia on Thursday, 25th April 2019

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Stockbrokers Zambia Limited (SBZ) is a member of the Lusaka Securities Exchange and is regulated by the Securities and Exchange Commission of Zambia

First Issued on Friday, 15th June 2018

ZCCM-IH Commemorates International Women’s Day by Donating Assorted Household Items to an NGO focused on the underprivileged.

ZCCM-IH joined women all over the world in commemorating International Women’s Day under the theme the “Think Equal, Build Smart, Innovate for Change.” In this spirit, ZCCM-IH was at Divine Mercy Homes of Shantumbu Village in Kafue, to donate various household items valued at a total of K35, 000.

Divine Mercy Homes has set homes, community schools, and clinics around Zambia all providing care, shelter, education, protection, and support to the aged, vulnerable children, and people living with Cancer and HIV/AIDS.

Mongu Rice Slogan Wins Kudos

COPPERBELT University third- year student Mubiana Sinyinda famously known on social media for his humorous advertisement of Mongu rice, has received K 15,000 from Investrust Bank.
Investrust Bank managing director Simangolwa Shakalima said Mr Sinyinda’s entrepreneurship skills caught the attention of the financial institution, which has decided to give him K10, 000 to expand his business and K5,000 for his upkeep in school.

Source: Zambia Daily Mail

ZCCM-IH | Notice to Shareholders based in France on Withholding Tax applicable

Dear Sirs/Mesdames


Following your application for withholding tax exemption with the Zambia Revenue Authority (ZRA), we wish to advise that ZRA is unable to grant the Limited Deduction Directions (LDDs) for all dividend payments by ZCCM Investment Holdings Plc to the Shareholders resident in France. Consequently, all dividend payments are made in 2019 will attract 20% withholding tax.

For further queries on the matter, we advise that you contact ZRA directly.

Yours faithfully
ZCCM Investment Holdings Plc

C Chabala
CCSO/Company Secretary

Download the signed notice here…

Investrust Pumps K70m Into Digital Platforms

INVESTRUCT Bank Plc has invested over K70 million to improve digital platforms and enhance service experience for its customers.
Bank managing director Simangolwa Shakalima said the financial institution has integrated platforms such as Zoona and ZAMTEL to enable customers to transfer money from bank accounts to the mobile platforms and vice versa.

Source: Zambia Daily Mail

INVESTRUST invest K70m in upgrade

INVESTRUST Bank PLC has invested over K70 million in upgrading its systems so that it is able to offer efficient and improved services to customers.

Managing Director Siamangolwa Shakalima said the 100 percent locally owned bank has in the last five years heavily invested in its systems so as to offer quality services to customers.

Mr Shakalima was speaking at a customer engagement cocktail at Garden Court Hotel in Kitwe at the weekend.

He said Zambia being an economy that was largely supported by Small and Medium Enterprises (SMEs) the bank improved services to the sector.

He said the bank was committed to supporting SMEs as well as other critical sectors.

“In the last five years we have invested heavily in digital channels and if you look at our investment over K70 million to upgrade our systems including digital platforms, we offer mobile banking and an Investrust application and agency banking system,” he said.

Mr Shakalima said that his institution was also looking at enhancing capital base and with its partnership with ZCCM-IH, the bank was confident to reach higher heights.

At the same function, ZCCM-IH acting Chief Executive Officer Mavuto Chipata said the company has made a commitment to recapitalise the bank in order to address the minimum regulatory capital, liquidity and increase overall business capacity.

Mr Chipata said ZCCM-IH spent K25 million in acquiring shares in the bank, making it the largest shareholder with 71.4 percent.

He said this was part of ZCCM-IH strategy to diversify its portfolio and to tap into new sources of consistent income.

And Copperbelt Minister, Japhen Mwakalombe, said most local entrepreneurs lacked access to financial resources and commended Investrust for supporting and helping SMEs to grow.

Mr Mwakalombe said Investrust did not only support small businesses with bank services, but also technical support needed to grow businesses.

The minister said in today’s world small and medium businesses were seen more as a vehicle for entrepreneurship, contributing to employment opportunities and social stability of the economy.

He further said with over 400 employees in the country Investrust, was making its mark in improving the quality of lives of many people.

Source: Daily Nation

ZAFFICO listing on LuSE to ease fiscal burden

THE Zambia Forestry and Forest Industries Corporation (ZAFFICO) in 2018 declared its intentions to list on the Lusaka Securities Exchange (LuSE).

This followed a directive by President Edgar Lungu to have state-owned enterprises (SOEs) listed on the stock market.

Following this directive, ZAFFICO and Zambia State Insurance Corporation (ZSIC) Life Limited have been earmarked for listing as announced in the 2019 budget. This was also in line with the 2018 budget speech that emphasised the need to use the stock market as one possible option for SOEs that needed capitalisation.

Furthermore, Minister of Finance Margaret Mwanakatwe informed Parliament that the shares will be floated for public exchange once all relevant procedures are completed with the Industrial Development Corporation (IDC).

ZAFFICO reportedly diversified its business portfolio by acquiring Kawambwa Tea Estate in 2016 and has also extended to cashew nut growing in Western Province. Given its entry into uncharted waters, the company now needs new capital to support the expansion.

The authorities believed that raising the capital through an initial public offering (IPO) on the LuSE would be ideal as a relatively cheaper form of term financing.

The IDC proposed to hold 60 percent of the shareholding, while five percent will be offered to the employees of ZAFFICO, and 45 percent will be floated to the general public.

The authorities seemingly preferred to list ZAFICCO on the LuSE because traditional sources of capital are very expensive in Zambia. For example, prevailing commercial banks and other lending institutions’ interest rates average above 25 percent, way above other countries in the region such as South Africa at about 11 percent.

Additionally, listing ZAFFICO on the stock market will make it liable to public disclosure, making the corporation’s information easily accessible to the general public. Public disclosure will be made possible through the release of audited statements, dividends announcements, and the holding of annual general meetings required from listed companies.

The added level of accountability and transparency resulting from the listing can also create incentives for the corporation to improve performance, which in turn is likely to generate returns for shareholders. Moreover, the performance of companies listed on the stock market is closely monitored, because the shareholders install a board of directors which in turn installs a professional management team. Through this corporate governance structure, ZAFFICO management would be restrained from performing contrary to the wishes of shareholders.

Furthermore, the listing of ZAFFICO will give citizens the opportunity to directly co-own the asset and derive dividends from it. The co-ownership, which comes as a result of participating on the LuSE and holding shares, is crucial for citizen empowerment, beneficiation and growing a middle-class population.

It is also important to realise that ZAFFICO will not be the first SOE to be listed on the stock market. Other SOEs such as ZANACO and ZCCM-IH have been listed on the LuSE. For example, in 2008, ZANACO listed on the stock market with 49 percent of its shareholding acquired by Rabobank of the Netherlands, and this was followed by a financial improvement in 2010 where Government received a cheque of K8 million in dividends. The dividends have continued to date as the company has been making profits. For the 2017 financial year, the bank recorded a net profit of over K114 million.

Similarly, ZCCM-IH, which was listed in 2002 on the LuSE, began declaring dividends in 2014 to its shareholders. For the financial year 2017, ZCCM-IH paid out dividends amounting to K135 million, and out of this, Government through the IDC received a cheque of K81.4 million.

The listing of ZAFFICO, which has the capacity to raise its own resources and run profitably rather than depend on government grants, becomes very important especially when the Government is implementing austerity measures to improve its fiscal situation. Indeed, those parastatals that can successfully list on the stock market should do so, and lift the fiscal burden off the Government’s back.

Therefore, the move by ZAFFICO to list on LuSE is worthwhile and should be supported. This move will not only help ZAFFICO raise capitalisation funds more cheaply but will also help deepen the presently shallow securities and relieve pressure off the Treasury to keep recapitalising the firm.

Source: Daily Mail

ZCCM-IH granted license to explore oil and gas in Chasefu

Lundazi, April 5, 2019, ZANIS—Zambia Consolidated Copper Mine (ZCCM) Investment Holdings Plc has been granted a license to explore oil and gas in Chasefu district in Eastern province.

Chasefu Council Secretary (CS), Martin Mutale disclosed to ZANIS in a statement in Lundazi district, Eastern province, that the licenses Number Pel 033 block 27 located in Chasefu will also enable ZCCM-IH to explore oil and gas in Chama and Mpika districts.

Mr Mutale said all the documentation is in the progress adding that, what is remaining is the company to obtain a written consent before it can embark on the explorations of the minerals in the district.

And the CS revealed that according to the ministerial circular he received, the Ministry of Local Government has approved the 2019 budget for Chasefu district with adjustments and conditions set out.

Meanwhile, Chasefu Council Chairperson, Chimwemwe Banda urged councilors to take stock of all the damaged infrastructure as a result of rain to equip the local authority with up to date database.

Mrs Banda has however, stated that the district is poised for a bumper harvest following the significant rainfall it has received.

Source: Zanis

ZCCM-IH cement plant to relocate 47 households in Masaiti

Zambia Consolidated Copper Mine Investment Holding (ZCCM-IH) Cement has had to defend the construction of a US$600m cement plant in Masaiti District on the Copperbelt province.

Some 47 households are expected to be displaced to pave way for the construction of the plant.

ZCCM-IH Cement Stirring Committee Chairperson, Mwila Lumbwe, said ZCCM-IH is partnering with Central African Cement Ltd, which is spearheading the development of the project in Masaiti.

In July last year, President Edgar Lungu graced the ground-breaking ceremony of the cement project.

Mr Lumbwe said the project would take 36 months to complete. The project would also create a 1000 jobs in various fields during construction phase and after completion, 400 permanent jobs would be created.

“It is our hope that the people in Chief Chiwala’s area will benefit from the new opportunities that will be created by Central African Cement,” he said.

However, Mr Lumbwe said the 47 households that would be displaced were in the factory area, adding that others that farmed in the same area, would also be compensated, and the value minimum for construction for each household would be ZMW108,000 (US$11,126).

Mr Lumbwe said it would significantly enhance the capacity of Ndola Lime Company which would be supplying limestone for the new plant. He added that the plant would generate 57MW of power and that there would be a surplus of 38MW, which would be released into the grid and possibly exported, adding that the plant would bring opportunities for the Zambian economy at large.

Copperbelt Permanent Secretary, Bright Nundwe, said the factory would sit on 75ha plot, adding that no one would be affected in terms of displacement and decent houses would be built for them before relocation.

Source: PG Zambia

Investrust Bank Plc | Appointment of Directors

In accordance with Section 3.59 of the Lusaka Securities Exchange Listing Rules, the Board of Investrust Bank Plc (“the Board”) wishes to announce the appointment of the following non-executive Directors to the board with effect from 25th March 2019:-

1. Mr. Situmbeko C. Mubano
2. Mr. Siakamwi Chikuba

Mr. Mubano holds a Bachelor of Arts in Economics & Statistics from the University of Zambia (“UNZA”) and is an economist and investment management professional with over 18 years of experience. Mr. Chikuba holds a Bachelor of Law degree from UNZA and is a legal practitioner with over 10 years of experience as a lawyer.

The Board would like to congratulate Mr. Mubano and Mr. Chikuba on their appointment to the Board and wishes them the best in their new roles.

By Order of the Board
Brian Msidi
Company Secretary

Issued in Lusaka, Zambia on 01 April 2019

Lusaka Securities Exchange Sponsoring Broker
T | +260-211-232456
E |
W |
Stockbrokers Zambia Limited (SBZ) is a member of the Lusaka Securities Exchange and is regulated by the Securities and Exchange Commission of Zambia

First Issued on 01 April 2019