The deal was sealed in Lusaka today after government agreed in principle last December that Rabobank should buy 49 per cent shares in ZANACO.
Commerce, Trade and Industry permanent secretary Davison Chilipamushi disclosed during a press briefing that Rabobank’s assumption of theÂ management of ZANACO was
in line with the agreement on the partial sale of the bank.
As part of the sale and purchase agreement entered into by the bank and the Zambian
government, both parties agreed that Rabobank takes over management rights of ZANACO while government will retain its representation in the bank at board level.
The new board includes three members from Rabobank , two government representativesÂ and one representative to be appointed byÂ board members.
These are Mark Wiessing, Arnald Kuipers , Jan Dijkstraa , Chintu Mulendema and
Mr. Chilipamushi said the take-over of the bank today marked the end of the long
process of partial privatization of 49 percent sales in ZANACO which he said has been conducted in a transparent manner.
Mr. Chilipamushi said ZANACO’s partial sale will enhance economic development in the
He added that the sale was also done in accordance with the provisions of the law as stipulated in the Banking and Financial Services Act.
He however could not state the sale value of the bank saying government through the
minister of commerce will inform the nation after the evaluation process is completed.
Mr Chilipamushi said the value of the bank’s assets has increased over the years compared to 2004 when ZANACOÂ was offered to Rabobank hence the need to revalue the assets.
The permanent secretary said 25.8 percent shares would be offered to the Zambian public so that they have a say in the running of the bank.
Mr. Chiliupamushi who is also past chairman of the board thanked board members and
the staff of the bank for their contribution during the privatization process, which he said has helped to increase the value of the bank.
And speaking at the same function, new ZANACO managing director Mark Wiessing said
the vision of his team was to take the bank to another level.
Mr. Wiessing said ZANACO has built a strong foundation and has the largest rural branch and ATM network.
He said the vision of Rabobank was to build on the achievements and move towards a more customer focused organisation.
“We need to capture the market share of ZANACO as we are look for a sustained
profitability in the long term so that the bank can recapture the share it lost on the market.
The bank will in the next three months present a new business plan to indicate the future of the bank.
The managing director said the bank would also seek new opportunities of expanding
itsÂ Â corporate presence in agriculture, mining and public sectors.
Mr Wiessing said ZANACO will maintain its presence in rural areas, adding the bank has a plan of expanding its branches network to cater for both urban and rural
On fears ofÂ job losses, Mr Wiessing said the bank had no masterplan of retrenchingÂ workersÂ saying the philosophy of the bank was to grow the business .
He however pointed out that there will be changes in the staff mix depending on the outcome of the new business plan.
He said Rabobank has 110 years experience in banking and is ranked 20th in the world
in asset base and equity.
“We bring to Zambia expertise in retail and agriculture gained in 110 years of banking,’ the said.
Following the partial sale, Government will now have 51 percent shares while Rabobamnk intends to sell four percent shares to the farmers out of its 49 percent shares.