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.
I think these SOEs are more likely to operate commercially under IDC than a ministry. IDC should seek to attract private capital from Zambians based within and in the diaspora. Mr. Chipwende please float shares for your best companies and issue a diaspora bond.
So there are still many government owned companies. I am afraid HH will privatize them next year, starting with ZESCO.
Folks lets not be f00led by Lungu and his f00lish PF friends that puting those parastals under IDC they will function better. We had ZIMCO and INDECO during UNIP era, which under performed dismally because they employed only UNIP cadres with little or no experience to operate those companies. Apart from that, employment was on the basis of who know in UNIP ranks. I had a friend who went staright from secondary school to manage one of them, imagine that!
To to be frank, this just another ploy to employ all PF cadres in those companies so that Lungu can justify the payments he gives to his cadres and to legalise the stealing of billions of bond loan money.
For the record, PF has borrowed over $7 billion in just less than five years and beaten the record set by UNIP which borrowed $7…
I just frown over the governance structure of IDC. The Chair is a politician interested in employing PF cadres. Has no record of good performance in the private sector. He should just delegate the role to someone like Sokota.
Who says Lunga is not working?
It must be REALLY HEAVY DUTY work to affix signature.
Who says this is work!?!??!?
Most of those companies are dead wood. They will suffocate the few functional ones. Daily mail should be merged with times print pak. They write same stories. ZANIS can be left out for govt propanganda. Mulungushi textiles should be sold completely. its yesteryear approach to economic solution. With opened borders people bring nice fabrics abroad cheaply. ZISC group can go as well:-)sell it to Madison or proffessional insurance. it ca’nt couple with modern insurance trends. Otherwise, good move.
Well done, my president is a good move. You have our support.
Yes, figures lie – when one hears of 29 SOEs, one’s heart gets excited, but when one goes through the list, to discover some shells, one’s heart sinks! Ema SOEs ayayene to boast about sure? Great idea of placing them under a cormecial parent, but ruined by political governance structure. They will, therefore, never prosper!
Truly laughable …only 7 of these 33 recorded a profit last year…what recklessness by this bum Lungu.
I can smell a rat……This is a risky move that may badly affect us as a country considering the levels of financial mismanagement that the current government has so far exhibited. What this means is that all the stake that government owns has been transferred to IDC which will then be used as collateral every time we are borrowing. In short the country risks being auctioned to our creditors.
Slowly going back to Unip days. ..it’s a shame the young ones cannot remember! !
@Clarence you are wise.this is a game Lungu wants to play to syphon money from the Euro Bond and creditors. It does not matter what names he will call it IDC or what ever the question is who will manage this IDC and how will it Oparate ?What is its structure?I know already that the same IDC is the vehicle they want to use to borrow fresh Kaloba to finance ZESCO.Lungu will directly deal with hand picked (PF cadre) director of IDC to procure electricity from Namibia at high cost,the rest of the proceeds will end up in his pocket.The IDC just the Road development Agency(RDA)Link Zambia, project is being chaired by state house by passing ministers cant you see this scum? Zambians vote this Lungu out he is a disaster to come.
The CEO runs a company. a chairman just heads the board. So a chairman can be anyone what is important is having a competent CEO and management. The board will just say where they want to see the company its up to management to get it there
Or which companies should make donations to the PF?! Ba Munjali, dream on… management will be busy ensuring that they get all sorts of pecks, while making numeous donations to PF to appease ECL and his board….
Well, SOE can come but let there be transparency in their operations. As long as they are politicised on partisan lines their tangible benefits will be forever lost. Of course ordinary Zambians will continue to be deceived that they now own them and not foreigners or So-called Zambian “exploiters”. Let me inform you for free that real ownership through good performance and tax payments to government for running schools, security etc. As for employment even foreign owned companies I. e Zambezi, Zambia breweries also employ Zambians.
People let’s just read and stop commenting. Tabakomfwe.
With Ministers like Kambwili who do not see anything wrong with employing youths whose only qualification is being bona-fide PF members, all I can say is good luck!! For this to work, there has to be a total mind shift from the politicians but most of all, the current workers in these companies either have to shape up and improve efficiency, end corruption or they be shipped out! I do not see most of these companies surviving in the tough world of free market capitalism, a total change in attitude is needed and it has to be done gradually and not this way.
Ba UPND monkeys, do you have to oppose anything PF Government does in the interest of Zambians just for the sake of being armchair critics for nothing?
I have observed with dismal that whatever nonsense your lost and failed Under 5, the Mason HH dreams about, you gang up and give positive comments when we all know that that he is no march to President Lungu’s intellect.
Do you even have a slightest clue why these shares have been transferred from the Minister of Finance to IDC? Its better to keep quiet if you have little or scanty knowledge about realignment and transformation. Anyway, aint surprised because you have been brain washed by HH who will keep on losing elections whilst we advance. You are yet to see the best of President Lungu, just watch this space!
SOUNDS A BRILLIANT MOVE, MORE SO THAT THESE SOEs WILL NO LONGER RECEIVE FUNDING FROM GOVERNMENT, THIS IS GOOD. LET THESE ESTABLISHMENTS COMMERCIALIZE THEIR OPERATIONS AND SURVIVE ON THEIR OWN USING THEIR OWN PROFITS ACCRUED FROM THEIR OPERATIONS. WE NEED TO TRANSFORM ZAMBIA INTO AN INDUSTRIALIZED NATION. WHERE THERE IS A WILL THERE IS ALWAYS A WAY. JAMESON SEEMS TO BE COMING UP WITH BRILLIANT IDEAS. LET US SUPPORT HIM IN THIS REGARD.
I like the move. We have spoon fed most parastatls for a long time. Its weaning time with hopes that Parastatals will now emulate the productivity of private sector. If airtel and MTN can run without Government funding, why cant Zamtel mange its own affairs independently?
We have lived with a strained national budget year in year out. This is a good start towards reducing expenditure. If we can look at cutting several other expenditures, our economy must be able to start re-gaining.
I like the move. We have spoon fed most parastatals for a long time. Its weaning time with hopes that Parastatals will now emulate the productivity of private sector. If airtel and MTN can run without Government funding, why cant Zamtel mange its own affairs independently?
We have lived with a strained national budget year in year out. This is a good start towards reducing expenditure. If we can look at cutting several other expenditures, our economy must be able to start re-gaining.
This is a list of all KKs failures from the UNIP era! They need to be sold or closed down. We cannot still be throwing good money into these holes after more than thirty years! How much public money have they chewed already?
Real STUPlDITY is doing the same thing over and over again and expecting a different result!
They did not work then, and they are not working now. Time for them to GO!
Lets learn to read and comprehend gentlemen instead of criticising for the sake of wanting to be seen to be saying something…
”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.”
…
I like the way you defined stupidity…what about trying another presidential candidate in that party that we all know?
Another good vehicle for plunderers!
With Mr Clueless as Chairperson?
Waste of time!
Government should have no business in business!
Until we correctly define the role of government, we’ll keep on recycling failed models from the KK era!
Someone pliz educate me. does IDc have the budget to run all these SOE’s. Will IDC still be financed by the national budget. Will their yearly allocation be increased in anyway. i need the full details coz i smell something fishy
You smell something fishy? I do not think so!
This smells more like a dead rotten rat that Lungu is trying to sell to Zambians as fresh game meat!
IDC will never work because of the simple fact that the management is NOT ACCOUNTABLE to the owners, which is the people of Zambia. These comanies are at the whim of politicians that just see them as cash cows that do not have to be mentioned in the budget. In other words, RIPE FOR PLUNDER AND PERKS!
The only real solution is to list them on the Lusaka stock exchange and divest ALL government ownership.