Zambia Inc. Magazine
3
Zambia Inc. Magazine
5
In this ISSUE Innovation through COVID-19 In this edition we focus on the positive outcome of the challenges by COVID-19. It is quite evident that the pandemic has sparked the need for industrialization and manufacturing in our country. The total lockdown of borders and major airlines affected the production lines for many businesses in Africa and Zambia is not an exception, most small or emerging business owners depend on cheaper imported raw materials. The lack of readily available tools and material has pushed many businesses to finding or creating solutions to meet the ever increasing local demand for various commodities. Despite having the negative impact on the world’s economy COVID has pushed many African countries to reconsider investments in technology, health, manufacturing and agriculture food security. In this time it is only necessary for call for AFRICA industrialization, to transform and add value to the continent’s vast and valuable raw materials.
“Many African countries have already been deprived access to COVID-19 essentials”. The time to regain our dignity is now. The most important resource that Zambia needs in order to rise up is none other than Zambians themselves. Our enthusiasm as Zambians (Africans) is rooted in selfesteem. No one will help us if we do not help ourselves we are no longer asking to be taught how to fish lets continue finding solutions.
Agatha NAYAME
Zambia Inc. Magazine
7
agriculture Zambia Inc. Magazine
8
Zambia’s Agro led Structural Diversification in COVID era
T
he evolution of risk from financial to
to, not only hedge against food security but allow
non-financial has seen a reshuffling in
the country to position itself for regional export in
the prioritization resource allocation
these uncertain times. If Zambia gets this intervention
map of sovereigns. Disease pandemic in
right and scales production then the sector could be
2020 surpassed climate change effects
a potential contributor to gross domestic product.
throwing fiscal budgets into limbo as production
Zambia’s 2019/2020 rainfall season already echoes
possibilities cripple. In as nations seek debt relief as
a bumper harvest net of the risks such as pests and
obligations balloon, home grown solutions can never
floods experienced in the year. The winter maize
be overlooked to cushion effects of supply disruptions
project surpluses will be an additional stream of
especially in the food industry. Africa’s second largest
foreign exchange reserves.
copper producer Zambia is one nation that has not been spared of the disease pandemic effects. Amidst a partial lock down for 28 days, Head of State Mr. Edgar Lungu on 25 April, in his third address to the nation, directed his Commerce and Trade Ministry to ensure local farmers are given priority to supply agriculture products to super markets and chain stores. This is one leap towards agro led structural diversification. A further directive to the Agriculture Ministry was given to boost winter maize growing in the spirit of more granular diversification in the sector to allow for a widened scope for other crops with deliberate intent Zambia Inc. Magazine
9
What is Agro led structural diversification?
It is defined as increasing agriculture production
with the intent of not only addressing food security but widening value addition opportunities such as agro processing and creating synergies with other sectors such as mining that will leverage off agri-inputs. Maize can be used as a component in the copper floatation process.
World Bank Agro led structural diversification.
In 2015 the World Bank published a paper
dubbed Agro led Structural Diversification outlining the need for Zambia to actualize its potential as a regional bread basket in addition to use agriculture as the easiest conduit towards boosting agro processing in stepping up manufacturing which the copper producer has struggled with since independence. Agriculture requires deliberate action stemming from the right policies and efforts from those involved. It is very vivid that markets are vast ranging from local chain stores, which the Commerce Ministry has been tasked to address, to regional markets such as Kenya and the Democratic Republic of Congo. This will allow for farmers earn a living as they supply products to meet this demand. DRC has 1million metric tons of maize demand which Zambia signed to absorb 600,000 metric tons earlier last year.
Bee keeping for honey production in Zambia’s North Western province
Zambia Inc. Magazine
11
Honey is penetrating local and international markets. One of Zambia’s top tertiary institutions the Mulungushi University is supplying 4-tons of honey to all Shoprite stores in Zambia which is a demonstration of sustainability models of local entities which should be emulated. Mulungushi is assisting over 1000 small scale farmers in North Western Province under the Southern Africa Science Service Centre for Climate Change Adoptive Land (SASSCAL) program funded by the German government. Earlier last year Zambian honey made it to Chinese and British shelves while some of Zambia’s product are available on South African chain store shelves. The model is perfectly right but the commerce authorities need to help the private sector build scale to match competitiveness and global demand.
Sustainable Development Goals under threat. Zambia’s Head of State directed his Agriculture and National Development Planning Ministries to devise new climate change action plans to secure food production in Zambia. It is evident that COVID19 does impact attainability of Sustainable Development Goals through reduced funding to SDG initiatives as fiscal budgets focus on fighting disease pandemic effects. National Production Possibility Frontiers (PPFs) have be altered with response allocation towards public health causes which simultaneously entail lower resource allocation towards the drivers of the economy which will lead to lower productivity. Africa is 10 years away from meeting SDGs which include sustainability in energy generation from renewable diversified sources such as solar, alleviation of hunger through a widened crop base and agriculture initiatives such as winter maize, the electric car era that will allow for reduced dependency on fossil fuels that cause a spiral effect in the climate change fight and embracing of technology in education to mention but a few. Increasing agriculture produce and creating markets locally that absorb chain store demand will help alleviate poverty by providing a sustainable livelihood for local farmers.
Zambia Inc. Magazine
12
Sustainable Development Goals under threat.
The Southern African region has grappled with an acute grain deficit due to drought effects for 3 years of which Zambia has been fortunate to perpetually
Zambia’s Head of State directed his Agriculture and
run surpluses. One aspect that has tended to be
National Development Planning Ministries to devise
overlooked is that agriculture is Zambia’s easiest way
new climate change action plans to secure food
to boost manufacturing capability that has immense
production in Zambia. It is evident that COVID19
potential to address most of the strategic reserves
does impact attainability of Sustainable Development
and revenue generation challenges that seem to
Goals through reduced funding to SDG initiatives as
impede growth in the economy. The K10 billion life-
fiscal budgets focus on fighting disease pandemic
line that the central bank throws to commercial banks,
effects. National Production Possibility Frontiers (PPFs)
if utilized efficiently will see the emergence of strong
have be altered with response allocation towards
manufacturers in the coronavirus era for those ready
public health causes which simultaneously entail
to tap into the curve. The commerce teams should take
lower resource allocation towards the drivers of the
this seriously and reflect on the massive importation
economy which will lead to lower productivity. Africa
gaps between Zambia and its trading partners such
is 10 years away from meeting SDGs which include
as South Africa. Access to finance however remains a
sustainability in energy generation from renewable
challenge for the Small to Medium Sized Enterprises
diversified sources such as solar, alleviation of
(SMEs) to the extent that scalability will need funding.
hunger through a widened crop base and agriculture
It is at this point that outgrows schemes, clustering
initiatives such as winter maize, the electric car era
and co-operatives will be more relevant than ever to
that will allow for reduced dependency on fossil
allow groups access the liquidity pools for capital. The
fuels that cause a spiral effect in the climate change
pricing is right yet access may still be a challenge.
fight and embracing of technology in education to mention but a few. Increasing agriculture produce
Zambia imports 10 times as much as its trading South
and creating markets locally that absorb chain store
Africa does whose differential provides the commerce
demand will help alleviate poverty by providing a
and trade units a lot to strategize on how to bridge
sustainable livelihood for local farmers.
this gap. In 2019 Zambia’s import bill for South Africa products according to the Zambia Statistics Agency
Editors Opinion
(ZSA) was ZAR30billion while it exported a tenth of that in reverse.
Pronouncements are only as good as those tasked to actualize them run with the directive. In the COVID era, this provides a silver lining for the local market. It’s creates an instant market and demand that also poses a challenge for the farmers and local producers to meet standards that will allow for competitiveness in the market. Zambia’s vast agriculture opportunities should not be restricted to maize but should extend
It is at this point that outgrows schemes, clustering and co-operatives will be more relevant than ever to allow groups access the liquidity pools for capital
to fish farming, poultry, cassava, dairy, cashew nuts, fruits and vegetables. Zambia Inc. Magazine
13
LuSE listed Zambeef launches winter corn harvest in Zambia’s ‘maize-belt’
L
usaka Securities Exchange listed Zambeef
Speaking in Sinazongwe, President Lungu commented:
Plc
04
“In Southern Province, and indeed, other parts of
October launched its winter maize harvest
the country, agricultural production has reduced
in Zambia’s ‘maize-belt’. This development
significantly. This has made access to food for many
was graced by Zambia’s Head of State who
Zambian households whose areas had poor yields,
appreciated the efforts Zambeef is making in crop
very difficult. My government is resolved to working
diversification to hedge against drought effects given
closely with farmers, millers and other private sector
the hydrological risks the copper producer faces.
players, to ensure that we transform the agricultural
Zambia’s drought is said to be the worst since 1985
sector.”
(ZMBF-ISIN0000000201),
on
but this has not stopped the company from employing irrigation methodology to grow maize outside the
He added that government will do everything possible
traditional season.
to ensure that farmers are happy in the country, and that it is only when farmers are happy that we shall
Zambia’s 2018/2019 maize yields slid 400,000 metric
have plenty of food and stabilise food prices in the
tones to 2million due to lower than forecast rains.
country.
Zambia Inc. Magazine
14
it enters the Zambezi river and ends up completely wasted in the Indian Ocean… we must harvest this water, grow food, empower people with employment
opportunities
in crop production and food processing and take advantage of this enormous domestic and DRC market,” said Mr Grogan.
Zambia’s Head of state Mr. Edgar Lungu shows the audience how harvesting is best done as he gets onto the combine harvester to mark the launch of the winter harvest for Zambeef PLC. “I am also pleased that Zambeef regardless of this difficult situation, managed to increase its area under cultivation for winter maize from 200 hectares to 600 hectares. This will translate into a total harvest of about 600,000 metric tonnes”.
Zambia
just
signed
a
600,000MT memo with DRC Zambia
signed
a
formal
memorandum of understand to supply 600,000 metric tons of maize to Democratic Republic of Congo. Africa’s red metal producer forecast to boost crop output to 3million metric
Zambeef will diversify to cassava next season
tons in the 2019/2020 farming
The Head of State was also pleased to hear that the next crop that Zambeef Plc will focus is cassava, which he said is a very important crop for wealth creation for many of Zambia’s small-scale farmers, and further called for the need to industrialize cassava in a similar manner other countries such as Nigeria have done. In welcoming the President and invited guests, Zambeef Chief Executive Officer Francis Grogan said that with the adverse effects of climate change, the country and the region was experiencing, now more than ever the farming community needed to be forward thinking on the adequate and sustainable use of the country’s resources. “The effects of climate change are becoming more and more apparent every year that passes and Zambia hasn’t been spared with poor rainfall seen in many parts of the country while some other countries in the region have seen floods. Both these climate extremes have resulted in low crop yields in some areas and reduced flow into reservoirs to generate power.
is expected
to meet export demand to help boost foreign exchange earnings
of
the
Zambia’s
To help mitigate climate change, we must invest in water harvesting and irrigation and trap the water that flows in our rivers and streams before 15
country.
dysfunctional
commodities trading has been the biggest block in allowing subsistence farmers to access markets ready to pay premiums on maize such as Kenya and DRC. As at 04 October close of trading ZMBF shares traded for K1 per share on the Zambian bourse, the LuSE.
Invest in irrigation to hedge climate change effects
Zambia Inc. Magazine
season which
REGIONAL LAKE TANGANYIKA WATER MANAGEMENT PROJECT
T
he ‘Lake Tanganyika Water Management’
the four countries concerned. Rwanda is also involved
project aims to sustainably improve the
in this project because it borders the Ruzizi River,
management and control of the cross-bor-
which eventually flows into Lake Tanganyika. The pilot
der waters of Lake Tanganyika. This 4-year
projects comprise specific urban pollution reduction
project is entrusted to Enabel and is financed by the
actions (liquid and/or solid waste).
European Union as part of a regional programme. To strengthen the ALT’s role, the project will develop The preservation of the quality of water resources of
lake water quality control and monitoring tools, will
Lake Tanganyika is indeed of key importance for the
put in place a series of pilot actions to reflect and share
region’s future, both for maintaining biodiversity and
experiences and in some cases replicate similar actions
the region’s social and economic development. A
in the project’s target cities and along the Lake and will
transnational approach is required to achieve this. The
strengthen the capacity of the ALT in its coordinating
project aims to support the Lake Tanganyika Authority
and supporting role for water resources management
(ALT), a regional group including Burundi, the Demo-
actors. .
cratic Republic of the Congo, Tanzania and Zambia, in its mandate and duties to promote the protection and good management of water resources of the Lake and its tributaries. The project will be based in Bujumbura (Burundi), but it will target, via pilot projects, a lakeside city in each of
Fishermen at lake Tanganyika
Zambia Inc. Magazine
16
g n i n i m
Zambia Inc. Magazine
17
Jubilee Metals signs agreement to expand operations in Zambia
J
ubilee Metals Group has announced that in line with its stated strategy to expand operations in Zambia, it has signed a Joint Venture Agreement with a private Zambian company securing the rights to process 2 Mt copper Run-Of-Mine material containing in excess of 2% copper. Under the JV Agreement, there is a further potential to increase the supply of copper ore to approximately 4 million tonnes with an additional 2.5 Mt of copper containing tailings available for processing. The Project will target the near-term production of copper concentrate through a dedicated newly constructed copper concentrating facility for which Jubilee has completed the design for the construction at a targeted Brownfield site adjacent to the tailings. The Processing Facility will be commissioned in two phases with the first copper concentrate and revenues expected within four months. Leon Coetzer, CEO of Jubilee, comments:
“This JV Agreement offers tremendous earnings potential for Jubilee. The Project has been a key target for Jubilee to drive the ramp-up in our copper production while we are implementing our previously announced Project Elephant. “This transaction complements the already secured large copper resource and will provide us with earnings in the near term. The earnings of this Project is further bolstered when we commence the
processing of the 150 Mt of tailings secured under Project Elephant, allowing us to expand and fill to capacity, over the long term, our Sable Refinery. “The combination of easily accessible large surface resources, together with a fully operational copper refinery, offers us the potential to replicate, at a larger scale, the success Jubilee is achieving with its PGM and Chrome operations in South Africa. “Our exceptional in-house processing and metals recovery abilities are core to this success. “For Jubilee to have entered into this JV Agreement so soon after announcing Project Elephant is testament to a period of intensive work by our team and I would like to thank everyone for their efforts. “We have already completed the designs for our Processing Facility and engaged with key equipment suppliers to accelerate the implementation of Project Roan. I am confident that we are able to fund the capital required for the Project from our own strong cash reserves and our ability to raise project debt. “Our innovative designs allow us to commence production of the first copper concentrate within four months while we complete the remainder of the Processing Facility to ramp-up to full capacity over the following eight months. The additional copper units this Project brings to our Sable Refinery ensures we are able to maintain a strong margin for our copper cathode.”
Zambia Inc. Magazine
18
FQM skill empowerment programs First Quantum minerals continues to raise the bar as they support community initiatives to alleviate poverty. A women-run jewelry workshop in the Zambian mining town of Solwezi, adding value to local minerals, providing employment and raising funds for vulnerable women and girls in the community. Supported by First Quantum Minerals and its Kansanshi Foundation.
Zambia Inc. Magazine
19
FQM COMMUNITY EMPOWERMENT PROGRAM Our community nutrition assistant, Lingiwe Sibanda, is on a mission to help each house within the Solwezi District grow a kitchen garden of their own. Consisting of green leafy vegetables and a diverse range of crops, these kitchen gardens aim to improve food consumption and therefore the overall health and wellbeing of the community. Thanks to Lingiwe for all her incredible work!
these kitchen gardens aim to improve food consumption and therefore the overall health and wellbeing of the community.
Zambia Inc. Magazine
20
Zambia’s economic think tank activates Cobb-Douglas model in rural Nchelenge
NCHELENGE (The Business Telegraph): Zambia’s
key sectors namely agriculture, urban and small scale
celebrated think tank the Economics Association of
mining etc.
Zambia – EAZ officially launched its National Economic Summit – NES19 brainchild the Citizen Entrepreneur Development Programme – CEDP in conjunction with the Africa Green Resources – AGR. In a function graced by Republican President Dr. Edgar Chagwa Lungu in the northern part of Zambia in Nchelenge district of Luapula neighboring the Democratic Republic of Congo – DRC. The CEDP initiative is a private sector led initiative that will seek to empower 1.2million entrepreneurs over an ambitious period of 2 years in the copper producer, Zambia across the 10 provinces. The program targets
Zambia’s Republican President Dr. Edgar Chagwa Lungu giving his speech at the CEDP launch in Nchelenge.
Zambia Inc. Magazine
22
The Cobb-Douglas Productivity Equation Rethought. The Economics Association of Zambia rethought the traditionally productivity model, the Cobb-Douglas that focuses on factors of production namely land, labor, capital, entrepreneurship and technology which the think-tank has targeted entrepreneurship and input capital provision to effect productivity and wealth creation more sustainably. In his speech at the occasion, Republican President Dr. Edgar Chagwa Lungu said:
“I am not an economist but over the years have learnt the simple productivity equation and that land, labor, entrepreneurship, capital and technology are key factors of production. As head of of state I nod the EAZ led Citizens Entrepreneurs Development program for rethinking the productivity model for the country from targeting employment traditionally to this time effecting entrepreneurship across the key sectors ranging from agriculture to urban with the long term intent to promoting sustainability. Today, I witness operationalization of the factors of production, all this to effect economic growth.� In an earlier side interview with state television EAZ Head Dr. Lubinda Haabazoka said the CEDP will be providing inputs as seed capital to identified co-operatives in form of fingerlings, cattle, goats and poultry in addition to equipment used for processing of agriculture production is a value addition process. The economic think tank bestowed on his royal highness the Mwata Kazembe of the Lunda people honorary patron of the Economics Association of Zambia Luapula chapter while the provincial minister Honorable Nickson Chilangwa was bestowed Honorary chairperson of the think tank chapter in the province. But for COVID19 the think-tank was scheduled to have its second summit in July this year themed Sustainable Development Goals 2030, 10-years ago, Where is Africa now, however this did not derail effecting of initiatives that would impact lives at grassroots level. The CEDP initiative is expected to be rolled out to all the 10 provinces of Zambia.
Zambia Inc. Magazine
23
Zambia Inc. Magazine
24
Zambia Inc. Magazine
25
Zambia Inc. Magazine
26
Zambia Inc. Magazine
27
PR Newswire (New York) PRESS RELEASE Lusaka, Zambia — China National Building Material Group Co., Ltd. (CNBM) held its first online open day event focusing on appropriate use of resources at the Zambia Industrial Park in Lusaka, capital of Zambia on Aug 26. During the event, Lulu Wood, a local hostess, ushered guests around the comprehensive building material industrial park, showcasing its modern cement plant. She told the group how the plant contributes to economic growth and infrastructure construction as well as local health care and a good quality of daily life. According to staff members at the cement plant, it took CNBM three years to build the park, which uses world-leading automated production, dust proof and environmental protection technologies to guarantee workers’ health and to protect the local environment Later, Lulu guided guests to a nearby village to meet the village head. He said that CNBM also fulfilled its social responsibilities while constructing and operating the park. The company improved the villagers’ lives by helping to build a road to Lusaka, a school and a hospital. What’s more, the company took steps to ensure that the village is supplied with ample fresh water. Construction of the Zambia Industrial Park began on Oct 15, 2016, and started operation on July 26, 2018. It now has four production lines which are capable of producing 2,500 tons of clinker cement per day as well as 200,000 cubic meters of concrete, 700,000 tons of aggregate and 60 million sintered bricks annually. So far, the industrial park had paid more than 70 million yuan ($10.13 million) in taxes to the local government and created jobs for 326 residents. Zambia Inc. Magazine
29
i n f r a s t r u c t u r e
Zambia: CNBM Holds Open Day Event At Zambia Industrial Park
WOMEN IN BUSINESS
Vodacom Mozambique appoints Beatrice Mabhena as new CFO Written by Founder Fi
B
eatrice has enjoyed an extensive career in Mobile Telecommunications. Her career in the sector began in June 2005 when she joined the then Celtel Zambia Limited as a Management Account. She worked there for 3 years and was elevated to Finance Manager. In 2008, Celtel International, a subsidiary of MTC Group
and a leading mobile operator in Africa, announced that it has reached an agreement to acquire a controlling stake of 65% in Vmobile, one of Nigeria’s leading mobile telecom operators, for US$1.005 billion. This agreement marked the company’s largestever acquisition and will expand Celtel’s presence to 15 markets on the African continent.
Zambia Inc. Magazine
30
With the acquisition including Zambia’s Zain outfit, Beatrice was appointed Group Business Planning Manager for the Middle East and Africa. This was marked the beginning of her Pan African experience which would later shape her career. She would later on be appointed Regional Financial Control for Anglophone Africa. Zain’s shareholding moved to Airtel and with that move came another elevation for Beatrice. She was appointed Director Finance for Airtel Malawi. Two years later she would move back to Zambia as Financial and Commercial Controller. Beatrice moved to Mozambique with her family of Husband and two gorgeous girls aged 4 and 7 in October of 2014 when she joined Vodacom. Her Mozambican adventure has seen her hold the roles of Executive Head of Finance Operations and Deputy Finance Director which she held until her appointment of Chief Financial Officer in August 2020. The new CFO is a holder of ACCA (FCCA) and a Post Graduate Diploma from Manchester Business School. The telecoms business is no doubt in her DNA and Financial Insight looks forward to tracking her illustrious career in the dynamic industry.
Zambia Inc. Magazine
31
Let your BUSINESS soar
Mandatory offer for CEC Africa shares made by BP Investments Written by Founder Fi Quoted company on the Lusaka Securities and Exchange, CEC Africa, has announced that a mandatory offer has been made by BP Investments Limited for purchase minority shareholders stake in the company that has operations in Nigeria.
According to rules stipulated by the Securities and Exchange Commission of Zambia, when the 35% mark is breached by an investor, a Mandatory Offer has to be made. “As a result, BP Investments was required to proceed with a Mandatory Offer to all the other shareholders in CECA in accordance with Rule 56 of the Third Schedule of the Securities (Takeovers and Mergers) Rules, Statutory Instrument No 170 of 1993, (the “Takeovers Rules”), issued pursuant to the Securities Act No 41 of 2016 (the “Securities Act”)”. The announcement of the mandatory offer comes on the back of the resolution of the withdrawal of the Letter of Demand that was issued by Zambia Energy Corporation in early August 2020. “Shareholders of the Company are referred to the Cautionary Announcement first issued on 17 July 2020 in which Shareholders and the market were advised that the Company received a letter of demand from Zambian Energy Corporation (Ireland) Limited (“ZECI”) on 3 July 2020 for repayment of a loan of principal and interest Zambia Inc. Magazine
33
e n e r g y
“Shareholders of CEC Africa Investments Limited will be aware that on 17 June 2020, BP Investments Limited purchased shares in CECA which resulted in its shareholding exceeded the 35% threshold”, read a statement issued by Clara Mvula, Head of Corporate Affairs at CEC Africa on Tuesday 25th August 2020 in Lusaka Zambia.
amounting to USD 15,427,263=00 entered into by the Company on 20 November 2014”, read a statement issued by Clara Mvula, Head, Corporate Services on Thursday, 13th August 2020. “On 10 July 2020, the Company was served with court process documents indicating that ZECI would seek to recover the debt through the courts in Mauritius”. The offer itself comes with no premium for minority shareholders. On 25th August 2020, the quoted price for CEC Africa was K0.13 which is the same price of the Mandatory Offer. This is despite the price peeking to K0.19 in the last 12 months.
Possible Rationale of an exit for investors In recent months, it is clear that the Board of CEC Africa has had a relook at the fortunes of the market that they desired to be in. When the Company was served with court process documents indicating that ZECI would seek to recover the debt through the courts in Mauritius, this was a culmination of a plethora of issues that their Nigerian adventure had faced. The company’s investments have not gone according to plan. In 2016, various factors have adversely affected the value of CEC Africa, including but not limited to: 1. Low power generation in Nigeria compared to Multi- Year Tariff Order forecast; 2. Liquidity challenges facing the Nigerian energy sector; 3. The effect of the depreciation of the
Naira on CEC Africa’s USD debt obligations; and 4. Limited enforcement of the Nigerian power sector regulatory regime due to various factors. So much for a destination that offered so much hope.
Terms of the Offer According to the SENS announcement, the details of the offer are as follows: 1.BP Investments has informed the Board of CECA of its intention to undertake the Offer, being a cash offer, to all minority shareholders of CECA, representing a 7.62% shareholding in the Company, at a price per share of ZMW0.13 (the “Offer Price”) to be settled at the close of the Offer period 2.Accordingly, as stated in Section 3 below, BPIL and CECA will send to each shareholder of the Company an Offer Document and a Circular respectively, setting out details of the Offer, actions to be taken by those minority shareholders of CECA who may wish to participate in the Offer. 3.At their sole discretion, shareholders of CECA registered as members of the Company as at the Record Date of the Offer may choose to sell to BPIL, some, all or none of the shares they own in CECA.
Zambia Inc. Magazine
34
The Deal Team
According to documents sent to shareholders of CEC Africa seen by the Founder of Financial Insight Zambia, corporate information indicates that BP Investment Limited has their registered office in Nigeria. Pangaea Securities Limited are the designated transaction advisors. B&M Legal Practitioners are the legal advisors and Olusuyi Agboola & Co Chartered Accountants are the auditors About the BP Investments BP Investments is a private company registered on 14 June 1999 for the purpose of engaging in commodity trade; making investments of any kind; provision of management, business and advisory services for the purposes of safeguarding and enhancing the investment of the company, among others. BPIL has successfully made several investments in various companies and has major shareholdings in many companies. BPIL is also established to carry out businesses in any part of the world, in areas such as – Shipping, energy and any other business, which in the opinion of BPIL Directors is beneficial to the objectives of the Offeror.
Zambia Inc. Magazine
35
Absa Bank Zambia PLC named 2020 Best Retail Bank in Zambia
b a n k i n g
Absa Bank Zambia PLC is pleased to announce that the bank has been named the 2020 Best Retail Bank in Zambia by the acclaimed International Business Magazine.
The International Business Magazine is a coveted publication with recognised subject matter experts and strong research analysts covering emerging and disruptive finance and business trends. It is circulated to more than 70,000 people worldwide. The International Business Magazine awards were established to showcase the best-in-class achievements of budding industrial talent, global leaders and corporates across varied industries related to the international business and finance arena. Commenting on the award, Absa Bank Zambia PLC Managing Director, Mizinga Melu said, “We are excited to receive this award which recognises our commitment to bring our customers’ possibilities to life by providing exceptional banking products and services to meet their needs. I would like to sincerely thank our customers and stakeholders for their continued support that inspires us to change the way we do business, in order for us to offer them convenient and global banking Zambia Inc. Magazine
36
products and services. In the midst of the global pandemic we are currently facing, we strive to find new and innovative ways to adapt our retail banking offering, which is true to our ethos that is built on ‘Africanacity’ – the distinct African capability to get things done even amidst challenges. This award demonstrates our commitment to offer our customers superior banking and innovative solutions”. Absa Bank Zambia PLC has over the last two years invested ZMW100 million in technology to enhance customer experience and over ZMW120 million to improve its branch network. To date, 29 branches have been refurbished, which include the launch of three (3) state of the art flagship branches and an additional five branches yet to be launched. The bank has also continued to impact society positively by being a force for good through its various community-led initiatives. The Bank has invested over ZMW 15 million in the last three years to address various societal challenges that the country faces. Absa Bank Zambia PLC Retail Banking Director, Harton Maliki said, “We are extremely delighted to win this award. Our Retail business has continued to evolve and we are constantly identifying new convenient ways to meet our customers’ changing banking needs. Our strategic focus has been on developing and providing innovative solutions that are in line with global banking trends and offer customers’ convenient banking. As organisation, we have taken deliberate steps to change the way we do business. Through strategic partnerships with MNOs to provide services to the unbanked through the mobile money capability, leveraging on our E-Commerce platforms to enable customers settle their ZRA or Napsa regulatory payments as well as providing financial support to customers during this challenging through our COVID-19 relief repayment programme makes us well positioned to be the Retail bank of choice in the market. With the recent launch of the revolutionary contactless payment solution, a first on the market, our customers can expect more from us as we continue to deliver pioneering solutions in Zambia.” Zambia Inc. Magazine
37
This award comes on the back of Absa Bank Zambia PLC introducing additional new services such as the Vertical Debit and Credit Cards, the NovoFX App that allows customers to make multiple currency payments as well as the Absa Bot, a virtual assistant available 24/7 via WhatsApp and on the website. On 14 April 2020, Absa Bank Zambia PLC was the first to announce a COVID-19 payment relief package aimed at cushioning customer’s financial burdens during this pandemic, further demonstrating its agility to meet customer needs. Absa Group Limited has since been awarded the Euromoney 2020
Excellence in Leadership in Africa Award as a result of its integrated COVID-19 response for customers, employees and communities. Absa Bank Zambia PLC is set to continue with the legacy of being a pioneer in the banking sector providing global retail banking solutions to meet diverse customer needs.
Zambia Inc. Magazine
Absa Bank Zambia PLC was the first to announce a COVID-19 payment relief package aimed at cushioning customer’s financial burdens
38
food processing
Mwinilunga fruit processing plant: Construction of warehouse in advanced stage
T
he construction of the Mwinilunga warehousing infrastructure has advanced and that the fruit processing plant has already been built and will be delivered from India to Mwinilunga. Mwinilunga recently attracted public attention following the discovery of notable gold deposits at Kasenseli and has historically been known as the home of pineapples in Zambia. Three governments institutions namely Industrial Development Corporation (IDC), Workers Compensation Fund Control Board (WCFCB) Zambia Inc. Magazine
and the National Pensions Scheme Authority (NAPSA) have joined hands to build the Kalene fruit processing plant by initially investing about K100 million (about US$5.5 million). Project manager for the construction of the Kalene Fruit Processing plant in Mwinilunga, Dr Charles Chifunda, said the construction of the warehousing and offices will be completed in October 2020 and the launch of the Fruit processing plant will be in December 2020. Dr Chifunda said the plant has already been built in India and that has plant parts and equipment 40
is on its way. The logistics have been put in place to ensure that the equipment arrives when the site and warehouses are ready,
“The equipment has not yet come in, but it’s already manufactured. Coming in of the equipment has been timed with the construction of the office buildings and warehouse. Because we don’t want it to come in and it stays outside. So we are synchronizing the construction with the bringing in of the equipment”, he said. Furthermore, Dr Chifunda said that the warehouse building is approximately 5,000 square meters and somewhere in October the building will be done and this in return will mean the equipment will arrive after that, which will be followed by installation, testing and then production will resume.
then proceed to hand over for the management to kick start production. Mwinilunga already has an active pineapple farming community, so the inputs will be readily available. But IDC has stated that an out-grower scheme has been put in place to ensure a consistent supply of the fruits that will be used for the fruit processing plant. The plant is going to be imported from India. The company to run the Kalene Fruit Processing Plant is already formed. The initial fruits to be processed by the plant are Pineapple and tomato, but the plant is scalable to process other fruits.
The building is about 5,000 square meters. So the whole idea is in about October 2020, the building will be done and about that same time the factory equipment will be in the country straight into the structure; and we start the assembling, testing and
“
we are synchronizing the construction with the bringing in of the equipment
Zambia Inc. Magazine
41
Zambian Breweries in double-digit decline REDUCED sales and revenue volumes have affected earnings per share for Zambian Breweries Plc for the period ending June 30. The basic earnings per share are expected to be 108 percent lower than those of the corresponding period last year. Basic earnings per share for both the group and company declined due to trading activity, which has reduced against normal sales trends, ending the first half of this year with a modest four percent volume growth
Zambia Inc. Magazine
42