The Zambia Airports Corporation Limited – ZACL has successfully managed to dodge the list of unprofitable list of state owned enterprises – SOEs and presented a dividend cheque to government worth K5 million ( US$385, 000) dividend.
ZACL has for the third time in four years presented dividend to government aiming at illustrating it’s commitment towards the growth of the country. Presenting the cheque to Minister of finance Dr. Bwalya Ngandu at the Ministry on September 11, 2019, ZACL Board Chairperson Milingo Lungu disclosed that the Corporation had for the period ending December made a profit of K80.4 million and paid taxes to government in an amount of K3.2 million.
Milingo added that on the infrastructure perspective, the Corporation has continued to upgrade projects with the Greenfield airport in Ndola currently standing at 48 percent of work done and the upgrade works at Kaunda international Airport currently at 85 percent.
“The cooperation kindly requests the shareholders to consider the extension of the Economic Tax Free status given to the Airport Multi – Facility Economic Zone to include Kenneth Kaunda International Airport as this will help in ensuring that the airport is positioned to become the next regional air transport hub in Africa.
And Dr. Ngandu said despite being in the midst of the economic challenges ZACL continues to strive in delivering world class airport and air navigation services which has seen the coming of new airlines hence a positive sign of governments investments being put to good use.
He has since commended the cooperation for the gesture of hard work and consistency in ensuring there is a proper management and utilisation of resources. The Minister added that government is however focused on constructing and upgrading airport infrastructure in all provinces to provide modern facilities that will enable the country handle higher volumes of traffic and give airline’s better services. The Finance Minister is also confident that enhancing the aviation industry will not only yield economic results but attract tourism.
Analysts at the Zambian Business Times have urged ZACL to now look at enhancing returns especially following the huge investments that have gone into the various airports. The board and management should now look at delivering tens of millions of dollars commensurate with the level of investments put in. Posting US$385 million is a good start but needs to be scaled up as return on capital injected needs to be above the interest rate applied on the loans obtained.
Zambia has aggressively invested over US$1 billion in Airport Infrastructure with Lusaka’s Kenneth Kaunda International Airport – KKIA and Copperbelt’s Simon Mwansa Kapwepwe International Airport under construction. The tourist capitals Harry Mwaanga Nkumbula Airport upgrade is completed while women regional and provincial airports had also received terminal and runway upgrades.
