Saturday, April 20, 2024

CTPD Urges ZCCM-IH to Quickly Resolve Issues That Led to the Company’s Temporal Suspension on the London Stock Market

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The Zambia Consolidated Copper Mines Investment Holding (ZCCM-IH), a prominent investment holding company in Zambia, recently faced a temporary suspension on the London Stock Exchange (LSE) due to non-compliance and failure to publish audited financial results for 2021 and 2022. In light of this development, the Centre for Trade Policy and Development (CTPD) is urging ZCCM-IH to promptly address the identified issues and work towards resolving them. Mrs. Natalie Kaunda, the CTPD Programmes Coordinator, expressed concerns over the suspension and highlighted the importance of swift action to ensure the company can continue to benefit from its secondary listing on the stock market.

ZCCM-IH plays a critical role in Zambia’s mining sector, which accounts for approximately 70% of the country’s foreign direct investment and contributes around 14% to its GDP. As a state-owned enterprise, ZCCM-IH’s sustained operations and profitability are vital for Zambia’s economic stability and revenue generation. The company’s secondary listing on the LSE offers significant growth opportunities, as the LSE has a substantial market capitalization of $57.67 billion compared to the Lusaka Stock Exchange’s market cap of ZMW 77.48 billion (approximately $4.2 billion). A listing on the LSE allows ZCCM-IH to raise capital, attract international investors, enhance visibility, improve public perception, and strengthen corporate governance.

The temporary suspension on the LSE raises concerns among various stakeholders. To address these concerns, the CTPD emphasizes the need for ZCCM-IH to swiftly resolve the identified issues that led to the suspension. The CTPD acknowledges that challenges related to Konkola Copper Mines and Mopani Copper Mines may have resulted in the delay of finalizing financial statements by ZCCM-IH. Therefore, the organization urges the government to take deliberate steps in resolving these challenges within the mining sector to prevent a recurrence of such suspensions. Failing to address these issues promptly could potentially impact government revenue generation and hinder the company’s growth prospects.

Mrs. Natalie Kaunda, the CTPD Programmes Coordinator, emphasizes the importance of quick and effective action to restore ZCCM-IH’s compliance with the Financial Conduct Authority (FCA) Disclosure and Transparency Rules. By doing so, the company can resume trading on the LSE and leverage the benefits of its secondary listing. It is crucial for the government and relevant stakeholders to collaborate and support ZCCM-IH in resolving the challenges it currently faces. By ensuring a favorable environment for the mining sector, Zambia can maintain stability, attract investments, and maximize revenue generation for the benefit of the country’s economy.

7 COMMENTS

  1. She is too thin. How can such women satisfy real african men like me? This is why the divorce rates are high

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  2. Who would invest in company like ZCCM that is not transparent? There is no information on their website no updates just a static website that has not been updated for 6 months even Bishop John Mambo is a non executive member no wonder he is quiet eating away.

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