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Electric Car Era Will Boost Demand for Zambia’s Battery Metals

The advent of the electric car is causing positive impact in the base metal market manifesting in uptick in demand for copper, cobalt and nickel. The likes of BMW, Ford and Tesla will be looking to buy metals in the forward to stock up on inventory to meet future demand. Permanent Secretary in the Mines Ministry in Africa’s copper producer Paul Chanda said Zambia’s mining sector still presents immense investment opportunities despite the current global uncertainty and the macro-backdrop.

Speaking on the sidelines of the Mines and Money conference in New York, Chanda said the sector is poised for growth considering the expression of interest from various investors to invest in other minerals such as manganese, cobalt, and vanadium among others.

ZCCM-IH Acting Chief Executive Officer – Mabvuto Chipata listens to delegates at the
Mines and Money New York’s event.

“Zambia can leverage on and benefit from the growth and development being experienced in the electric car industry. We already have copper, and also battery metals such as manganese and cobalt, and investors have been coming to look for investment opportunities in such”, said Chanda.

Acting CEO of the state mining investment vehicle ZCCM-IH Mabvuto Chipata said the company was exhibiting and participating at the leading international event series for mining investment and capital raising in an effort to position the Company at the center of the mining deals marketplace in New York.

Speaking during a Company spotlight presentation to conference delegates at the event, Mr. Chipata called on potential investors to look to ZCCM-IH as a strategic partner for new mining investments in Zambia.

“Given the current enabling investment climate in the country, we strongly believe that any investor can only stand to leverage and benefit from partnering with ZCCM-IH due to its advantageous and strategic positioning in the mining sector”, Chipata said.

And Permanent Representative of the Republic of Zambia to the United Nations His Excellency, Ambassador Lazarous Kapembwa has called on Zambia to invest in outer space technology in order to enhance mineral exploration, particularly geological mapping of minerals through satellite technology.

The Mines and Money New York’s event is a premier mining investment forum now in its third year, and has brought together more than 300 decision makers, mining executives, investors, financial service providers and mining firms including ZCCM- IH from over 20 countries.

Source: The Business Telegraph
Investee Company News

Investrust Bank Plc | Appointment of Director

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 Mr Peter Hillam Banda as a non-executive Director of the board with effect from 25th April, 2019.

Mr Banda holds a Bachelor of Arts in Economics from the University of Zambia (“UNZA”) and a master’s degree in Economics from New Mexico State University in the United States of America. He is an Economist and Banking professional with over 30 years of experience.

The Board would like to congratulate Mr Banda on his appointment to the Board and wishes him the best in his new role.

By Order of the Board

Brian Msidi
Company Secretary

Issued in Lusaka, Zambia on 02 May 2019

Lusaka Securities Exchange Sponsoring Broker
T | +260-211-232456
E | advisory@sbz.com.zm
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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 02 May 2019
Industry News

Growth in the Electric Car Industry Boosts Interest in Zambia’s Battery Metals: ZCCM IH

  • ZCCM and Ministry of Mines and Minerals are currently attending the Mines and Money conference and exhibition in New York

Permanent Secretary in the Ministry of Mines and Minerals Development Mr. Paul Chanda says Zambia’s mining sector still presents vast investment opportunities in spite of the domestic and global challenges.

Speaking on the sidelines at the ongoing Mines and Money conference and exhibition in New York, Mr. Chanda said the sector is poised for growth considering the expression of interest from various investors to invest in other minerals such as manganese, cobalt, and vanadium among others.

“Zambia can leverage on and benefit from the growth and development being experienced in the electric car industry. We already have copper, and also battery metals such as manganese and cobalt, and investors have been coming to look for investment opportunities in such”, said Mr. Chanda.

Meanwhile, ZCCM-IH Acting Chief Executive Officer Mabvuto Chipata says the Company is exhibiting and participating at the leading international event series for mining investment and capital raising in an effort to position the Company at the center of the mining deals marketplace in New York.

Speaking during a Company spotlight presentation to conference delegates at the event, Mr. Chipata called on potential investors to look to ZCCM-IH as a strategic partner for new mining investments in Zambia.

“Given the current enabling investment climate in the country, we strongly believe that any investor can only stand to leverage and benefit from partnering with ZCCM-IH due to its advantageous and strategic positioning in the mining sector”, said Mr. Chipata.

And Permanent Representative of the Republic of Zambia to the United Nations His Excellency, Ambassador Lazarous Kapambwe has called on Zambia to invest in outer space technology in order to enhance mineral exploration, particularly geological mapping of minerals through satellite technology.

Mr. Kapambwe said this during a courtesy call paid on him by Mr. Chanda and the ZCCM-IH delegation at the Permanent Mission of Zambia to the United Nations in New York.

“Zambia should take advantage and leverage on the opportunities and services of outer space technology available at the United Nations Office for Outer Space Affairs (UNOOSA). We need to register interest and set-up the necessary infrastructure and policy for us to benefit from this”, said Mr. Kapambwe.

The Mines and Money New York’s event is a premier mining investment forum now in its third year, and has brought together more than 300 decision makers, mining executives, investors, financial service providers and mining firms including ZCCMIH from over 20 countries. Zambia is being represented by a delegation led by the Permanent Secretary in the Ministry of Mines and Minerals Development Mr Paul Chanda, and ZCCM-IH Acting Chief Executive Officer Mr. Mabvuto Chipata.

Source: Financial Insight

ZCCM-IH News

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

Lusaka Securities Exchange Sponsoring Broker
T | +260-211-232456
E | advisory@sbz.com.zm
W | www.sbz.com.zm
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
Corporate Social Investment, ZCCM-IH News

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.
Investee Company News

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. https://epaper.daily-mail.co.zm/

Source: Zambia Daily Mail

ZCCM-IH News

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

Dear Sirs/Mesdames

APPLICATION FOR LIMITED DEDUCTION DIRECTION FOR DIVIDEND PAYABLE BY ZCCM INVESTMENTS HOLDINGS PLC TO FRENCH SHAREHOLDERS

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…
Investee Company News

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. https://epaper.daily-mail.co.zm/

Source: Zambia Daily Mail
Investee Company News

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

Industry News, ZCCM-IH News

ZAFFICO listing on LuSE to ease fiscal burden

Analysis: KALIKEKA MBEWE
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