After months of negotiations, government has finally, handed over the management of the Zambia National Commercial Bank (ZNCB) to Rabobank of the Netherlands.
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 the 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 representatives and one representative to be appointed by board members.
These are Mark Wiessing, Arnald Kuipers , Jan Dijkstraa , Chintu Mulendema and
Getrude Akapelwa.
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
country.
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 ZANACO 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
its  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
areas.
On fears of job losses, Mr Wiessing said the bank had no masterplan of retrenching workers 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.
ZANIS
It is a good thing that the Rabobank (Netherlands)with its strong ‘rural area’network has been able to service its clients in those areas very effectively. Equally Zambia National Commercial Bank (now Rabobank Zambia)has a wide rural coverage which is being taken over. It is, however, a mockery to compare the rural area of The Netherlands with that of Zambia. What may be termed rural in that country is actually a city like Lusaka in Zambia. Therefore, there will be definite differences in the manner Rabobank Zambia will operate its rural network should it remain intact.
Globalisation at its course. The rich nations are coming to ripe out the resources from the poor nations and indeed, its a one way traffic. Another foolish mistake by MMD. We saw how Chiluba put all the eggs in one batsket by selling all the mines. Well, he should have done some experiments by selling one division rather than selling all mines at once. The situation on copperbelt is bad, more than the word itself. During Kaunda’s time ZCCM was used to cushion non-profit companies, government organisations and the supreme party UNIP. Thus, when Chiluba came with half baked ideas of privitization, and all he did was to sell the mines. One may ask, where is the money? MMD under Chiluba resume had a hand on ZANACO funds and a good system to confuse figures. The so called good system has now seen MD Musonda in jail. The only thing Levy was supposed to do intelligently was to correct the system but he also bowed to the capitalism. Let Zambia be for Zambians.
The likelihood of this sale is positive in that loans access by farmers will be easy, and readily available. It is difficult presently for farmers to expand their agricultural activities due to prohibitive high interests rates. If this bank can put a system in place for lending out, we are likely to see a rise in food security for the entire country. We hope they are not talking about Netherlands rural areas in comparison to most of our urban areas like Choma, Monze, Chipata, Mansa, etc. We need Rabobank in the deepths of rurals as it is the people there it should aim at.
Well done to the government, and now we sit and wait to see the promises of the sale come to fruition. Although many of the citizens are skeptical about this business transactions, mostly due to crookedness in previous sales, there is some air of development blowing over this deal. Let us support and welcome Rabobank to Zambia, to empower our poor rural community.
Butchell Mwanashimbala you seem to have captured tons of smoke leaving fire behind over the sale of ZANACO.You are talking in terms of probability that is “we are likely to see increase in food production.” Now, if this is the positive move then there would be no ‘likelihood’ in the element of ZANACO sale. If ZANACO was sold to the elite Zambian then I could concur with you. The banking system in Zambia has loopholes that allow investor to tap huge amounts of profit into their countries. This system does not happen in R.S.A and even Namibia. Once you liberalise economy anyone can come and dance ‘Cingande’ at your door step and leave dust. They know Zambia is not their country and to serve the poor people in Shangombo, Nabwalya, Jumbe, Dondi is not their bussines and all they need is money. The government is like the father to its citizens and now that faher has abandoned its children to a impostor father. Of course, there will be no genuine love. Saudi Arabia is a great nation xxxx
It’s funny that even after seeing the effects of privatisations, we still have people who think that foreign investors have come to help us. Baloney!! These are investors. Do you really know what the definition of a investor is? These guys are not making enough profits in their country and they want to diversify and increase their margins by investing in emerging markets because the returns are higher than in developed economies. People, wake up!
These guys are not coming to help the poor farmer in Shangombo. They have shareholders to please. If the venture in Zambia is not as profitable as they thought, trust me they will pull out in no time. Remember Anglo American? They pulled out of KCM after their balance sheet showed a loss of $100 million due to their KCM operations. Why put money on a losing position. These guys are smart and not stupid and every investors knows the emerging markets are the place for big profits. Stop being cheated. Just hope for a win win situation
another mistake by the foolish MMD GOVT.why can”t levy tell these white guys to set up a rabo branch bank instead of taking over remains of the poor zambian. What really goes on in the so called negiotions? zanaco is only THE commercial bank we had. these white people are evil.. the little money govt used to get from Zanaco will now be going to holland.
i hate these investors, they killed zccm,zambia railways,u can name them. LEVY PLS.. SELL ZESCO AS WELL.
Sam for the first time you have talked sense, what is wrong with our People in Zambia? What is that has attracted them to sell this mighty bank to those guys? Has government ever asked the sitting management for their strategic views on the way forward of Zanaco? There is no need to have foreigners to run Zanaco? Stanbic is an example in question, Kalala is Zambian ruuning the bank on behalf of whites,There is alot of cash lying idle with fund managers , these are those the ones govt must have targeted to buy its portion and float the balance to the people of Zambia.if those dutch guys had interest in Zambia, they should have just come , build operate and own their own and offer competetion to Zanaco in the rural area.Levy lacks proper economic advisers,lack of confidence in ourselves has led to where we are today in Zambia, very soon high court will be up for sale for failing to deport Clarke
Chilumba, I normally talk sense, it’s just that you don’t read between lines and rush straight to conclusion.
I have seen over KK’s patriotism, you are a great man.
Keep it Sam. But why did you say Saudi Arabia is a great country… have you belt another Zanaco there?
Enjoy your Easter Holiday but Sam think ahead of what is to become of Zambia.Do you have details about the Vulture fund? Let me have your email address and will email you the facts of judgement to give you an idea where Zambia lies today, tomorrow , and the future.
What did you go to do at Sondashi’s hospice?
4.(continuation of .4)
Saudi Arabia is a indeed a great country when it comes to empowering its people. 90% of the parastal companies are owned by S/Arabians and investors are given targets and time frame (of not more than two years) of doing their duly tasks. BUT in Zambia, investors are now building empires, and the guys have no respect to Zambian workers. I saw this in Mufulira, when two mine workers were fired and it took a year to get their dues. They went to the labour office thing happened until the elapse of the year. This is the fruit of privitization by putting profit first then mankind last. The IMF and WB came up with all the nonsense of SAP, VAT, and privitization in order to let the third world countries pay thier debt but the repercussions were malnutrition, unemployment and increase in poverty index. It’s sad that Zambia and Tanzia (and others) are examples of that experiment and shameful to Zambia for it wants to appease its master.
chilubmba this is my e-mail [email protected]
I have seen some scarely articles about Vulture Fund on BBC and none if not one on Zambian side. The chaps won the case and am still waiting for VJ to make some comment, as he did on Katumbi saga. Surely, how can Zambia start importing Maize from DRC? Katumbi has connived with some ministers for their personal gains.
Sam the Vulture Fund judgement has been mailed to you.
Take time to read and see for yourself to justify existence of Task force and Anti corruption Commission.Its sad development my friend.Confirm receipt.Lack of systems is the cause of all these corrupt practices , just like you said fish starts to rot from the head.
It is very sad to see the state Zambia is in today. IMF and World Bank came with their policies to destroy developing countries economies. If you talk about privitisation, look at France, Air France is supported by the govt, the entire metro/underground system is supported by the govt. Go to the US, they offer millions of subsidies to many productive companies. Go to Malaysia, Petronas which is doing so well is owned by the govt. It is very sad that we took privitisation so far resulting in total unemployement in Zambia. Zambia has become a trading nation with no basis for productivity. It is very sad that we are still selling the companies inspite of the negative effect on the economy. It looks like we never learn!