GOVERNMENT has transferred the shares of 29 out of 33 State Owned Enterprises (SOE’S) from the Ministry of Finance to the Industrial Development Corporation (IDC), President Edgar Lungu has announced.
President Lungu said line Ministries would now focus on policy making, giving the IDC direct mandate and authorisation to oversee performance and accountability of the SOE’S on behalf of Government.
Mr Lungu, who is also chairperson of the IDC, said the SOE’S would with effect from next year not receive funding from the National Budget to reduce pressure on the Treasury and allow more funds to be channelled towards poverty alleviation programmes.
The IDC’S oversight responsibilities include all aspects of governance, commercial, financing, operational and all matters incidental to the interests of the State as shareholder.
“The IDC is a tool to enhance domestic capital formation, wealth creation and preservation by focusing on exploiting our country’s advantages in natural resources and actively developing industries and enterprises to create jobs for our people,” Mr Lungu said.
This is according to a statement released in Lusaka yesterday by President Lungu’s Special Assistant for Press and Public Relations Amos Chanda.
He said the IDC would work to maximise the value of Government shareholding and ensure that SOE’S contribute to the Sovereign Wealth Fund (SWF) which will focus on stimulating investment in strategic non-mining industries to increase exports.
The Head of State reiterated Government’s commitment to industrialisation and job creation in order to create a better Zambia for all.
SOE’S to be superintended and owned by the IDC include; Afrox Zambia PLC, ESCO Limited, Indeni Petroleum Refinery, Indo Zambia Bank Limited, Kagem Mining Limited, Kariba Minerals Limited, Lusaka South Multi Facility Economic Zone Limited, Lusaka Trust Hospital and Medical Stores Limited.
Others are; Mpulungu Harbour Limited, Mukuba Hotel Limited, Mulungushi Village Limited, Mupepetwe Development Company, Nanga Farms PLC, Nitrogen Chemicals of Zambia Limited, Zambia Daily Mail, ZESCO Limited, ZAMTEL Limited, ZAFFICO Limited.
Zambia International Trade Fair Limited, Zambia Printing Company Limited, Zambia Educational Publishing House, Zambia China Mulungushi Joint Venture, Zamcapital Enterprises Limited, Zambia Railways Limited, Times Printpak Zambia, ZSIC Group Limited, ZANACO PLC and ZCCM-IH, are also owned by the IDC.
SOE’S whose transfers are yet to the IDC are yet to be completed include; MOFED London, MOFED Tanzania, Mulungushi International Conference Limited and NIEC Business School Trust.
And the IDC has signed a Memorandum of Understanding (MOU) with Cargill to facilitate discussions for the establishment of mini mills in selected rural areas.
IDC chief executive officer Andrew Chipwende and Cargill Zambia general manager Lezanne van Zyl signed the MOU at the Cargill offices in Chipata yesterday.
This is according to a statement issued in Lusaka yesterday by Cargill communications officer Mildred Kaunda.
“Cargill’s mini-mill project with IDC will evaluate the viability of smaller commercial dry maize meals in the Eastern and Northern Provinces of Zambia. Together the two companies believe the mini mill project has expansion potential beyond Chipata and therefore consider Cargill’s recently launched Chipata mill as a pilot project, during which they will test both smaller urban, but also rural demand for commercial maize meal,” she said.
It is envisaged that the first milling plants should be ready for the 2015/2016 harvest season and would complement the ongoing progress for increased milling capacity initiated by President Lungu.