Finance Minister Bwalya Ng’andu says all state-owned enterprises that fail to perform will face sanctions by government.

Dr Ng’andu says government investments in state-owned enterprises are aimed at getting a reasonable return to allow the country raise finances to meet other developmental objectives but only a few companies have been fulfilling their financial obligations to government.

The Minister was speaking this morning when he received a dividend Cheque of K9.1 million from the Zambia Consolidated

Copper Mines Investments Holdings-ZCCM-IH for the financial year ended 31st march 2019.

At the same event, ZCCM-IH- Chief Executive Officer Mabvuto Chipata said in the last general meeting held this year, the firm approved a total dividend payout of K53 million from the total profit of K448 million.

Mr. Chipata said in the 2019 financial year, the company increased stakes in Kariba Minerals and Copperbelt Energy Corporation and invested in new companies such as Kabundi Resources.

Source: Radio Phoenix

FINANCE minister Bwalya Ng’andu says government has shares in too many companies which do not pay out dividends to shareholders.

And ZCCM-IH chief executive officer Mabvuto Chipata says his company has held on to some of the profits made to invest in new projects.

Speaking when ZCCM-IH handed the ministry their fourth cheque for the year ended march 2019, Dr Ng’andu said the government was looking to all companies to start declaring dividends to the treasury.

“It is delightful to receive a dividend cheque from ZCCM-IH this morning and more importantly this marks the fourth year in which the company has continued to pay dividends,” he said.

“This occasion this morning is an occasion which is meant to send a message to all companies within the IDC group of companies to which government has shares in because there should be no too much hullabaloo about receiving dividends from a company because that is what companies do. They are supposed to pay dividends to the shareholders in the normal course of their operations.”

Dr Ng’andu added that, “The fact that we are making so much issue out of this payment simply indicates one thing which is that there are far too many companies within the IDC group of companies in which government has shares which are not paying their dividends.”

He asked companies which did not remit dividends to do so as government wanted returns on its’ investments.

“I want this to go out as a message to all of them that we expect this to be the case. The reason government invests resources in companies is for the companies to ensure that there is an adequate return on investments,” he said.

“Moving forward, we want ZCCM-IH to take a centre stage within the mining area, currently ZCCM-IH invests in a number of mining companies but it’s more of a passive investment but we want the company to go beyond passive investment…we want to see increased participation of the company in the mining sector, in other strategic minerals and taking a centre stage, a more active role.”

Dr Ng’andu said he had tasked ZCCM-IH to help the government make profit from the gold deposits around the country.

“ZCCM-IH has been identified as the anchor company to drive the national gold agenda. We remain optimistic that it will play a critical role in harnessing the gold potential for the benefit of this country. We believe the formation of ZCCM-IH Gold Company Limited in which the government owns 49 per cent of the shares through the Ministry of Finance will see more proactive participation in the investments to be undertaken throughout the gold value chain in the country,” he said.

“Government through the Bank of Zambia has identified the purchase of gold as one of the mechanism to enhance the country’s international reserves apart from the other measures the central bank undertakes to replenish and raise its resources.”

He said he was informed that there were about 21 gold occurrence areas around the country that are to be exploited.

“As a ministry, we will give all the necessary support to the endeavours of ZCCM-IH Gold Company Limited in harnessing the gold potential in the country,” Dr Ng’andu pledged.

He said it was important that state owned companies especially those whose performance was not satisfactory pursue more aggressive reforms and strategies that would turn them to profitability and cease to be a burden on the treasury.

And Chipata said ZCCM-IH had put aside some money to invest in new projects for this financial year.

“Dividends are declared out of profits and if you see between the last financial year and this financial year, the previous year we had a profit of K800,000,000 as a group, this time around we had K448,000,000 but more so, we are looking at new projects,” he said.

“So we have to leave some cash to invest in new projects so in addition to profitability, what determines the amount that you are going to distribute to shareholders, you have to look at the future projects so we have had to leave some cash within the company to invest in new projects with the belief that we have to increase the dividend distribution going forward.”

The government owns 17.3 per cent shares in ZCCM-IH and for the last financial year a cheque worth over K16.8 million was presented to the Ministry of Finance.

Source: The Mast

I am happy to be here to present this dividend cheque to the National Pension Scheme Authority, of approximately K7.9 million.

NAPSA is one of our key shareholders with a 15% stake in ZCCM-IH.

This fourth dividend cheque is a fulfillment of one of our strategic pillars, and today, this is a demonstration of our commitment to our shareholders, for them to get a return on their investment in ZCCM-IH.

We remain resolute in seeing that ZCCM-IH continues to be profitable, driven by the strategies we have devised in our 2018 to 2023 strategic plan.

Our strategic plan is underpinned by a transformative investment agenda aimed at driving sustainable growth in the company for the benefit of all our stakeholders.

Ladies and gentlemen, even though Copper remains the mainstay commodity within our Group, we are widening our footprint in the mining sector by developing new product lines such as Manganese in Central Province, and Gold processing in Rufunsa, Mumbwa, and Mwinilunga.

All these projects are just waiting finalisation of statutory approvals, which we envisage should be concluded anytime soon.

We are focused on generating consistent and predictable income through investments in brownfield and Greenfield projects while ensuring and maximizing value for our shareholders.

We remain positive about the future outlook of the Company, as we continue to create value and sustainable growth in line with our strategic plan activities.

Thank you all for listening.

Source: Financial Insight Zambia

ZCCM-INVESTMENT Holdings (IH) has declared a dividend of K9.1 million to Government with Minister of Finance Bwalya Ng’andu calling on other companies under the Industrial Development Corporation (IDC) Group to pursue more aggressive reforms to enable them cease being a burden on the treasury.
Despite ZCCM-IH reducing its dividend to Government by over K14 million from the K23.3 declared in the 2018 financial year, the company has remained consistent, making the payment yesterday, the fourth in four years.
Dr Ng’andu said state-owned enterprises, particularly those whose performance is not satisfactory, should pursue aggressive reforms and strategies that will turn them to profitability.
During the 2018 financial year, only ZCCM-IH, Zambia National Building Society, Zambia Airports Corporation Limited, Tazama and CLICK TO READ MORE

Source: Zambia Daily Mail 

ZCCM IH has recorded a profit of 448 million Kwacha of which 53 Million Kwacha has been approved for dividend payout to shareholders.

ZCCM IH Chief Executive Officer Mabvuto Chipata says in the 2019 financial year the company increased stakes in Kariba Minerals and Copperbelt Energy Corporation and also invested in new companies.

Mr Chipata says the company will continue to play a strategic role in the growth of the mining sector adding that that is where the strength lies.

He, however, says the company will reduce risk on exposure on Copper dependence to other minerals such as Gold, Cobalt , Manganese and Gemstones.

Mr Chipata said this when he handed over a dividend cheque of 9.1 Million Kwacha to Minister of Finance, Bwalya N’gandu.

And Speaking shortly after receiving the Cheque, Mr N’gandu said the payout of dividends by the ZCCM IH should send a message to other state owned companies.

Mr N’gandu urged the ZCCM Gold company to be proactive in the sector by increasing there participation so that it continues to create value for its investments in order to sustain its growth and maximize shareholder value .

He disclosed that Government has 49 percent shares in the formation of ZCCM Gold company limited and that through the Bank of Zambia has identified purchase of gold as a mechanism to enhance the country’s international reserves.

Mr N’gandu further noted that country has about 21 known Gold occurrence areas around the country that are yet to exploited.

And Mr N’gandu further urged state owned companies to pursue aggressive reforms and strategies that will enable them to make profits and cease to be a burden on the treasury.

Minister of Finance Dr. Bwalya Ng’andu says his ministry will remain optimistic that ZCCM-IH will play a critical role in harnessing the gold potential for the benefit of the country.

Speaking during the Dividend Cheque Handover at the Ministry of Finance Headquarters, Dr Ng’andu said the formation of the ZCCM Gold Company Limited will see more proactive participation in the investments to be undertaken throughout the gold value chain in the country.

He added that Government, through the Bank of Zambia has identified purchase of gold as one of the mechanisms to enhance the country’s international reserves.

“It is envisaged that with ZCCM-IH’s investment in this sub sector, we should be able to achieve this objective. I am informed that there are obout 21 known gold occurrence areas around the country that are yet to be exploited,” Dr Ng’andu said.

“As a Ministry and shareholder, we will give all the necessary support to the endeavours of the ZCCM Gold Company in harnessing the gold potential in the Country,” Dr Ng’andu said.

The Minister observed that being a shareholder of 17.23% stake in the company, ZCCM-IH has continued to create value in its investments, in order to sustain its growth and maximize shareholder value.

The Minister is happy that ZCCM-IH has been consistent in delivering returns to its shareholders for the past few years.

He commended the company for its efforts and hard work in keeping the Company on a profitable trajectory thereby making it possible for the company to contribute to the treasury through both and non-tax revenues.

“I am aware that ZCCM-IH has continued to make selected strategic investments which will undoubtedly contribute to job creation and sustained economic growth. The company, through Kabundu Resources Limited is expected to commence production of manganese in Serenje District, Central province before the end of June, 2020. ZCCM-IH, through consolidated Gold will begin gold processing in Rufunsa District before the end of June, 2020,” he said.

The Minister implored other state owned companies to emulate ZCCM-IH.

He said it is important that state owned companies, especially those whose performance is not satisfactory, pursue more aggressive reforms and strategies that will turn them to profitability and cease to be burden on the treasury.

He assured them that Government will remain supportive of such reforms.

At the same event, ZCCM-IH Chief Executive Officer Mabvuto Chipata said the company remains focused on continuing to create value and portfolio growth.

“We will continue to play strategic role in the growth of this sector and its contribution to the country’s revenue particularly in other Minerals such as gold cobalt, manganese and gemstones among others,” said Mr. Chipata.

He said the company wants to reduce its risk exposure on depending on copper as well as drive portfolio growth in order to sustain the delivery of a fair return on investment for all its shareholders.

In the last Annual General meeting ZCCM-IH shareholders approved a total  dividend payout of K53million.

The Company made a profit of K448 million which was largely driven by an increase of 155% in revenue.

In 2019 alone the company increased stakes in Kariba minerals and Copperbelt Cooperation.

Source: Tech Watch News

The Honourable Minister of Finance, Dr. Bwalya Ng’andu, Ministry of Finance Directors and senior staff present, ZCCM-IH senior management and staff, Members of the Press,

Good morning!

I am happy to be here to present the fourth dividend cheque to the Ministry of Finance for the financial year ended 31^st March 2019.

In the last Annual General Meeting held on 14^th January 2020, ZCCM-IH shareholders approved a total dividend payout of K53 million.

As a Group, we made a profit of K448 million, which was largely driven by an increase of 155% in revenue.

As a Company, we remain focused on continuing to create value and portfolio growth.

In the 2019 financial year, for instance, we increased our stakes in Kariba Minerals and Copperbelt Energy Corporation; and invested in new companies such as Kabundi Resources that is responsible for manganese mining.

Honourable Minister, our core strength lies in the mining sector, as such we will continue to play a strategic role in the growth of this sector and its contribution to the country’s revenue, particularly in other minerals such as gold, cobalt, manganese, and gemstones among others.

Copper remains the main commodity in our investment portfolio, as such commodity diversification is key for us as a company.

We want to reduce our risk exposure depending on copper, as well as drive portfolio growth in order to sustain the delivery of a fair return on investment for all our shareholders.

Honourable Minister, we remain grateful for the support you continue to give to ZCCM-IH through your Ministry over the years.

ZCCM-IH will continue to play a pivotal role in the mining sector for which the ZCCM-IH brand is deeply associated.

Thank you once again for having us here to present the dividend.