ZSIC Life decision to list on LuSE postponed

The Zambia State Insurance Corporation – ZSIC Life has postponed its decision to get listed on the Lusaka Securities Exchange – LuSE to a date which will be confirmed by the end of this year 2020.

Government had in 2019 announced its intentions list both ZAFFICO and ZSIC Life on LuSE to enable the two state owned companies raise more capital for investments as well as achieve the added benefits of listing which result in improvement of corporate governance and adoption of best in class business practices. ZAFFICO has since listed but ZSIC has not.

However, the corporation which was set to list this year 2020 has expressed its desire to still get listed on market indicating that it is currently working on its internal systems which need to be advanced and upgraded if it were to join the public stock market.

ZSCI Life Managing Director Christabel Banda told the Zambian Business Times – ZBT in an exclusive interview that the company’s directive to sell some of its equity or shares on the stock market is on the cards as it is currently ensuring that internal processes are strengthened by having all the systems fully automated especially with the kind of business it’s in.

She disclosed that about K3 million has been invested in advancing these internal systems and that this process will come to an end in December this year, after which, the Corporation will now make a concrete decision as to when to list on LuSE.

“We need to fully work on our internal systems as we have been using outdated ones. We also need to ensure that we are fully automated. We are also dealing with all the legal issues as we have certain liabilities of the long term nature. This process has improved and we anticipate to finish by December this year,” She told ZBT.

She added that the Corporation has already stated registering its shares on the stock market as phase one of the project and that applications have already been done hence hoping to complete this process in the next two months.

Banda further said ZSIC is also in the process of developing its new strategic plan for the next five years, hence it gives the company an opportunity to craft its future and ensure customers are satisfied in terms of services delivery.

“We appreciate support from our clients during this transformation period which we have undergone for the past 2 years and we have made progress in terms of the quality of services we are giving” She concluded.

Calls to list and offer at least 20% stake to locals for state owned enterprises – SOEs held under the Industrial Development Corporation – IDC are valid as reporting and corporate governance practices which come with listing would root out most of the inefficiencies that these companies are currently struggling with and result in efficient and profitable companies.

Finance Minister Dr. Bwalya Ngandu had in 2019 directed IDC to ensure all SOE’s either shape up or become profitable and stop being a drain on the treasury. Listing these SOE’s on LuSE is seen as a major step to infuse professionalism and efficiency into these companies, some of which have management teams that are incompetent and solely rely on political patronage to hold on to their positions.

The Zambia State Insurance Corporation – ZSIC

July inflation drops in line with mealie meal prices

The year-on-year inflation rate has for the second consecutive month in a row recorded a reduction. For the month of July 2020, inflation slightly dropped to 15.8% from 15.9% recorded in June 2020 attributing the development to price decreases in food items.

Zambia Statistics Agency – ZamStats Statistician General Mulenga Musepa has disclosed during a media briefing attended by the Zambian Business Times – ZBT on July 30, 2020, that the annual food inflation rate for July 2020 was recorded at 16.1% compared to 16.3% recorded in June 2020 indicating a decrease of 0.2 percentage points.

He said this is attributed to reductions in prices of food items such as Cereals (Breakfast mealie meal, Roller mealie meal, Maize grain, Samp) and Vegetables (Rape, Tomatoes, Cabbage, Onions).

Meanwhile, the annual non-food inflation rate for July 2020 was recorded at 15.4% compared to 15.5% recorded in June 2020, meaning that on average, prices of non-food items increased by 15.4 % between July 2019 July 2020 and the slowing in the annual non-food inflation rate is attributed to price movements of purchase of Motor vehicles. Motor vehicles which are imported recorded a slight reduction on the slight gain in the Kwacha to US dollar trading pair.

Musepa further explained that at provincial level Lusaka made the highest contribution of 5.0 percentage points to the overall annual inflation rate of 15.8% recorded in July 2020, implying that the price movements in Lusaka Province had the highest influence to the overall annual inflation rate.

“Copperbelt Province has the second highest contribution of 3.0 percentage points while North Western Province had the lowest contribution of 0.5 percentage points,” He added.Price movements in the top three economically active provinces of Copperbelt, Lusaka and Southern provinces are key to the overall country inflation number.

For non-food inflation, the stability of the Kwacha is a key determinant as most of the items in the basket are imported. Zambia’s manufacturing base remains low and efforts to revive it are still to bear the desired fruits.

The year-on-year inflation rate has for the

CCPC mute over steep & coordinated cement price hike

Cement prices on the Zambian market have for the first time resulted into what some members of the public have described as an unexpected steep increase by more than K20 per 50Kg resulting into a public outcry and accusation of market collusion.

Previously, cement price hikes were mainly attributed to the Kwacha depreciation which has this time around remained stable albeit at an elevated level. Cement price manufactures had indicated that their manufacturing costs were mainly US dollar based.

A random market survey conducted by the Zambian Business Times – ZBT on July 29, 2020, has revealed that most members of the public involved in construction of both residential and commercial buildings are negatively impacted as cement prices have suddenly jumped from K98 for a 50Kg to K120 and K125 for the Lafarge Mpamvu brand in the last one week.

Some traders talked to in Lusaka from Kalingalinga roadside market, Chelstone and Chalala have expressed disappointed at Lafarge and Dangote cement for the recent hike in prices indicating that it is the first time that cement companies have hiked prices by more than K20, when previously the increases would be by a K5 to K10.

A Lafarge trader who asked for his name to be withheld could told ZBT in an exclusive interview that manufacturing companies gave an order last week stating that prices should be hiked with immediate effect but did not give reasons to back the move.

ZBT’s survey further revealed that major cement brands like Lafarge, Dangote and Sinoma have all increase by a similar margin and none of the manufacturing companies stated their reasons for the increase to their distributors.

Efforts to get a comment from the Competition and Consumer Protection Commission – CCPC proved futile as their public relations manager Namukolo Munyeme-Kasumpa was still waiting for clearance from the director responsible.

And a Dangote trader from Chalala in Lusaka revealed that the increase has hugely affected business on the market and that it has disadvantaged most customers from buying the commodity due to the hiked prices.

The trader said others have been left with no option but to purchase the commodity with fear of it increasing further in the near future as she anticipated a continued rise in cement prices on the market.

“Initially Dangote cement prices increased and the reason that was being attributed was that the company was refurbishing its factory and its prices would revert back, but what we have seen is that its not going back,” She added.

The cement main ingredient, limestone is locally manufactured and members of the public have challenged the Cement Companies to clearly explain the factors leading to the recent hike as this move may just be a profit maximizing decision at the expense of consumers.

CCPC which is the arm responsible for investigating such actions is mute on this increase as most of the officers and directors are working from home, hence taking time to revert on what actions if any has been taken.

CCPC is mandated to investigate such economically sensitive matters on behalf of the general public and clear the air after professional and legal investigations are done. The cement market has dominant players making the industry fertile for collusion.

Cement prices on the Zambian market have

Lafarge revenue hit US$95 million, up 13%

Zambia’s leading cement and aggregate manufacturer and LarfargeHolchin local unit, Larfarge Zambia recorded an impressive sales revenue of K1,142 million (about US$95 million) for the year 2018, up by 13% compared to 2017.

The company attributed its performance to strong market growth of approximately 30% with Cement domestic volumes up 10% vs. 2017 despite the Cement export volumes being down 25% in 2018 when compared to 2017. 

Energy cost increases adversely impacted production cost but was mitigated by strong cost saving initiatives.

The company stated that the Zambian cement market underwent a strong recovery in 2018. Additionally, the dry spell in January allowed many contractors to continue working without disruption in the first quarter; a period in which large construction firms typically undergo an industrial break. 


Domestic cement market is estimated at approximately 2.1 million tons of cement representing an average growth of approximately 30% compared to 2017. New export markets continue to be developed in the region, the company stated in its security note availed to the Zambian Business Times – ZBT 

And Jimmy Khan, the newly appointed Chief Executive Officer of Lafarge Zambia, said that “Company continued to focus intensively on commercial transformation and sustainability for continued growth. Sales volume performance for the year was favorable thanks to the Binastore retail channel rollout and other innovations from our teams such as Supablock”.

He further stated that “the plants’ strong cost management initiatives mitigated the impact of production cost increases with Margins remaining the same as 2018. I am pleased with the improved results”.

Lafarge Zambia now has competition from Dangote Cement and Sinoma cement, whose brands are competing head to head for the share of the local retail market.

Zambia's leading cement and aggregate manufacturer and

IZWE loans revenues expand 32%

Izwe Loans Zambia – Izwe has maintained excellent revenue momentum from the 2017 results by posting gross revenues amounted to K446.2 million (about US$37 million), a significant and notable growth of 32% compared to the previous year 2017. The micro lender further increase in after tax profits in 2018 by 49% to K141 million (2017: K95 million).

In a security note availed to the Zambian Business Times – ZBT, Izwe Chief Executive Officer Dr. Brian Malambo stated that “the 2018 performance is a testament to the ability of the company to ensure sustainable future growth and is as a result of our products remaining relevant, our continued focus on quality customer service and interactions with customers to ensure alignment to their needs”.

However, Dr. Malambo stated that the lenders operating expenses increased by 44% from K56 million to K81 million. He attributed the expense growth in staffing, collection costs and investment in the technology infrastructure to provide an enabling customer experience.

The credit loss expenses increased to K29 million (2017: K15 million) which he attributable to both the growth in the loans and advances book, and the adoption of IFRS 9 impairment models. Exchange losses decreased 56% year on year despite the Kwacha depreciated against the USD in 2018 as Izwe paid down part of the USD denominated liabilities during the year resulting in lower foreign exchange hedging costs.

Dr. Malambo further stated that “the gross loans and advances book recorded another year of growth increasing by 36%, ending the 12-month period at K967 million (2017: K709 million). The quality of the advances book remains satisfactory due to strict adherence to credit policies, conservative credit evaluations and effective collections management”.

Izwe Loans Zambia - Izwe has maintained

Zambia Sugar earnings up 68%

Mazabuka based Zambia Sugar, a LuSE listed subsidiary of Illovo of South Africa has advised that the company that the Earnings per Share – EPS for the half year ended 28 February 2019 is expected to be approximately 68% higher than that for the half year ended 28 February 2018.

In a security note made available to the Zambian Business Times – ZBT, the sugar company attributed the increase in earnings to predominantly due to increased sales in the domestic and regional markets which have benefitted from increased production of sugar achieved in the prior season.

The company note stated that, however significant volumes of world market sugar continue to find its way into the company’s primary regional markets putting pressure on margins.

To counter this, the company’s management has put in motion the cost reset project code named Project 400 which it stated continues to yield significant savings which also contributed positively to earnings.

Zambia Sugar Plc is the Illovo group’s second largest sugar producer following a major agricultural and factory expansion project completed in 2009, which increased and doubled total annual sugar production capacity from around 200 000 tons to 450 000 tons.

The company is listed on the Lusaka Securities Exchange – LuSE with 76% of shares held by the Illovo group and the balance by institutional and private investors. As Zambia’s leading sugar producer, located in the south-western region of the country alongside the Kafue River, it cultivates sugar cane and manufactures Vitamin A-enriched raw and refined sugar under the Whitespoon brand name for local consumer markets and industrial customers.

The local sugar market in Zambia is getting more and more competitive with new players coming on stream such as consolidated farming Limited with its Kafue Sugar which has a 9,000 hectare sugar estate and has an estimated 30% of the local market. Other sugar producers which all have room for further expansion and are more closer to the regional market of Democratic republic of Congo include Kasama Sugar and Mansa Sugar.

Mazabuka based Zambia Sugar, a LuSE listed