ZCCM-IH Delivers K91 Million Windfall to Government Treasury

ZCCM-IH Delivers K91 Million Windfall to Government Treasury

ZCCM Investments Holdings (ZCCM-IH) has announced the payment of K91 million in dividends to the Zambian government, reinforcing its role as a key contributor to the national treasury. The announcement was made during a formal handover ceremony attended by government officials and company executives, who underscored the importance of the payment for funding public services and national development programmes.

Speaking at the event, ZCCM-IH Board Chairperson Dolika Banda said the dividend reflects the company’s commitment to delivering value to its shareholders, particularly the government which is the majority shareholder. She noted that the payment was the result of improved operational efficiency, prudent management, and strategic investments that have yielded higher returns across the company’s diverse portfolio.

Minister of Finance and National Planning Situmbeko Musokotwane, who received the dividend on behalf of the government, commended ZCCM-IH for its performance. He stressed that revenues from state-owned enterprises play a vital role in supporting the national budget, reducing reliance on external borrowing, and funding essential sectors such as health, education, and infrastructure.

ZCCM-IH’s portfolio spans mining, energy, and other strategic sectors, with significant holdings in copper mining ventures. The company has benefited from strong commodity prices in recent years, as well as from its focus on enhancing operational oversight of its investee companies. By strengthening governance and demanding better performance from its partners, ZCCM-IH has been able to maximise shareholder returns while promoting sustainable development in the communities where it operates.

In her remarks, Ms. Banda highlighted the company’s emphasis on long-term growth rather than short-term gains. She said ZCCM-IH is reinvesting a portion of its earnings into diversification projects, including gold and manganese mining, renewable energy, and industrial manufacturing. These investments are expected to broaden the revenue base and reduce exposure to fluctuations in the copper market.

The government has welcomed these efforts, saying that diversification is key to building a resilient economy capable of withstanding external shocks. Minister Musokotwane emphasised that ZCCM-IH must continue to align its strategies with national development priorities, particularly in creating jobs, fostering skills transfer, and supporting local suppliers.

The K91 million dividend follows a series of other payments made in recent years, signalling a sustained upward trend in the company’s financial contributions. Analysts say this trend could improve investor confidence, both in ZCCM-IH and in Zambia’s broader mining sector. Strong financial performance by state-linked companies is often viewed as an indicator of stability and good governance, which can help attract more foreign direct investment.

However, challenges remain. The mining sector is still exposed to global market volatility, changes in tax regimes, and operational risks such as equipment failures and labour disputes. ZCCM-IH has pledged to mitigate these risks through careful planning, technological upgrades, and proactive engagement with stakeholders.

Beyond the balance sheet, ZCCM-IH has also been active in corporate social responsibility. The company has funded health initiatives, educational scholarships, and infrastructure projects in mining communities. This approach, executives say, is part of its mandate to balance profitability with social impact, ensuring that resource wealth benefits the broader population.

The handover of the dividend was accompanied by renewed calls for other state-owned enterprises to follow ZCCM-IH’s example in financial transparency and shareholder returns. Officials stressed that consistent dividend payments are a sign of both commercial success and accountability to the public.

As Zambia works to strengthen its fiscal position, dividends from companies like ZCCM-IH will remain an important revenue stream. The latest payment is a reminder that, when effectively managed, state-linked enterprises can be powerful tools for national development, delivering both economic value and tangible benefits to citizens.