The Industrial Development Corporation – IDC, the holding company of Zambia State Insurance Corporation – ZSIC Life & ZSIC General Insurance has confirmed that it plans to list ZSIC Life on the Lusaka Securities Exchange – LuSE this year 2020.
IDC has disclosed that ZSIC Life converted to a Public Limited Company – PLC in January 2020 and it is expected to be listed on the quoted tier of the Lusaka Securities Exchange (LuSE) during the course of the year. Listing of ZSIC Life is still on the cards as engagements with prospective investors are still ongoing.
IDC Public Relations Manager Namakau Mukelabai told the Zambian Business Times – ZBT exclusively that this action is part of the wider strategic intent of the IDC to position ZSIC Life for wider public participation, with the medium-term objective of listing on the main board of the LuSE.
She confirmed that delays have been experienced in concluding discussions on account of travel restrictions associated with the COVID 19 pandemic. Mukelebai said currently, the corporation has continued with internal restructuring aimed at cleaning up the ZSIC General Insurance [ZSIC GI] balance sheet and reforms to make the entity more competitive.
“Alongside the forgoing, restructuring interventions similar to those alluded to in reference to ZSIC GI, are also being undertaken within ZSIC Life. Meanwhile, we do not have a definite date when ZSIC-Life will list on the main board of the LuSE,” She said.
Namakau added that it is a strategic intent of the IDC to have ZSIC-Life listed on the LuSE as soon as market conditions allow as this is consistent with the aspirations of the IDC to see wider public participation in the shareholding of profitable public enterprises and support the deepening of the domestic capital markets by providing the supply of quality listings.
“IDC still holds 100% shares in both insurance companies and engagements will continue because we haven’t reached closure with the various investors who have shown interest in acquiring a stake in the entities. We are therefore happy to receive expressions of interest,” She concluded.
Listing on LuSE for especially the loss making State Owned Enterprises – SOEs is seen as a sure way of injecting efficiency and accountability for management teams, some of which have been surviving on patronage rather than performance.
A LuSE listing also entails a robust reporting and higher standards of corporate governance requirements which has in most instances resulted in improved company financial performance and growth.
