Kapiri Glass Manufacturing (KGM) Limited has signed a K40 billion (US$8 million) loan agreement with the PTA bank to revive the defunct Plant in Central province.
Kapiri Glass Manufacturing Limited Chairman Costain Chilala signed the agreement on behalf of his company while James Kabuga signed on behalf of the bank.
Mr. Chilala said Kapiri Glass Manufacturing Company will create over 400 new jobs once it is fully revived and operational.
However, he complained of the attitudes of many local banks which he said made it impossible for entrepreneurs to borrow funds for long term projects.
Mr. Chilala noted that the attitude of banks in Zambia made it impossible for the country to start an industrial revolution as they charge very high interest rates.
He said banks are not willing to lend people money for long term projects noting that if they do, their interest rates are too high.
Mr. Chilala, who is a renowned local commercial farmer, urged Government to consider introducing deliberate measures to ease borrowing either by creating an industrial development fund or enacting policies that will encourage indigenous entrepreneurs to invest in Zambia.
He further commended the Zambia National Commercial Bank (ZANACO) for funding small scale farmers through the Zambia National Farmers Union.
He said efforts of ZANACO have helped reduce poverty in rural areas.
And Minister of Finance Alexander Chikwanda described the loan agreement as unique noting that it was not often for Zambians to embark on a huge undertaking especially with risks involved in investing.
Mr. Chikwanda noted that the glass manufacturing industry will create employment for the swelling local population and also contribute to growth of the country’s economy.
He was impressed that a pan-African institution bank (PTA) was in the forefront of helping in establishing an industry which he said will produce a series of sophisticated items for the local and regional markets.
He reaffirmed Government’s commitment to supporting the efforts of local investors who endeavour to invest locally.
He commended Mr. Chilala, owner of Kapiri Glass Manufacturing Company, for embarking on a huge project which he said will provide a positive demonstration to other enterprising Zambians.
ZANIS
Well done Chilala.Your achievements speak for themselves.All the best.
Great news.Â
I know mr. Chilala, check out” journey through Zambia” on YouTube. His farm is the third largest in Zambia.
How high are these local bank interest rates usually?
It is true interest rates are usually very high and prohibitive. Two weeks ago I went to a local bank at arcades trying to borrow money I came out dissapointed. Interest rate was 26% as opposed to the much talked about reduced rates of about 14% to 16%.
THIS IS THE MOST REFRESHING NEWS OF THE DAY. I BET MOST KAPONYA’S MEN, WOMEN, GIRLS AND BOYS WHO INTERFERE EACH TIME I DRIVE INTO KAPIRI WITH AUDIO TAPES, CD AND THE LIKE WILL FIND SOME SAFE PLACE TO BE IN.
THIS IS GOOD INITIATIVE FROM A ZAMBIAN FOR ZAMBIANS. STREET VENDING WILL SOON BE HISTORY.
I hope PF would be monitoring usage of these funds so that it is put to good purpose. There should be accountability if Glass product has to survive. Chilala should not buy hammers and channel the rest of funds to his farm. When we see shoddy work being done, we shall know things are getting bad
Why should PF monitor the usage of private company’s money? Is it a parastatal or Chilala’s personal company?
Rubbish, how many of these so called PF leaders are clean where funds are concerned, and yet have no proper companies to talk about? Chilala is a serious business man who now will support many families through employment creation. Check how his farm is doing, check how his Chimsoro Milling is doing before expressing your persimistic sentiments. Also check the culture of people where he comes from.
who tells you its pf’s responsibility to monitor a loan given to a company that sis privately owned???
Some in MMD wont be happy. They were being paid by south african breweries , were all the bottles comes from now, to keep the plant closed.
Eagle- Eagle #7. The loan is a private arrangement for Chilala’s personal company. Why should PF government monitor its usage? If he wants he can buy the hammer provided he adheres to the repayment schedule that him and the bank structured. The government has no business monitoring usage of money in private companies.
Chilala brings out a good point about the cost of borrowing in Zambia. No wonder its easier for foreign investors to invest in Zambia because Banks in their countries are ready to support them. Banks in Zambia are after super normal profits.
Good news and step in the right direction.
I remember the days when that Glass factory was operational and at full capacity. They even built an entire subdivision of reasonably sized homes for their workers on the South-East end of Kapiri Mposhi. It was good and promising times for a lot of Kapiri residents. This was, of course, in the era of KK and his so called “illiterate” UNIP/ministers. Ironically, PF members/ministers are disparaged on these blogs as “Kaponyas”, insinuating PF consists of a bunch of illiterates, and yet such industries are now spring back to life under their watch. MMD with its intellectuals came in and such industries disappeared overnight—-go figure!!!
Good news. More jobs.
The government still has a role to play in this, support this brave stance by promoting consumption of products out of this firm, and until that is done, its +1-1.
BA LUNDAZI DWELLER, IF YOU BORROW MONEY USING YOUR COMPANY, IT MUST BE USED WITHIN THE COMPANY. IF YOU DIVERT PART OF IT, YOU ARE STEALING FROM YOUR OWN COMPANY AND IT IS A CASE. MIND YOU, HE IS A CHAIRMAN WHICH SUGGESTS THAT THERES IS A BOARD OF DIRECTORS. REMEMBER, EVEN MAHTAN WAS WAS ACCUSED OF USING FINANCE BANK TO BORROW MONEY FOR HIS BENEFIT.
Agony is that Kapiri Mposhi does not have sufficient housing units to accommodate workers at KGM once it starts operations. Those with money should see this as an opportunity.
I agree with Mr. Chilala on the need to create an industrial development fund to help industrialise the nation. The CEEC has failed in this as it has been heavily politicised.
This is good news for kapari but the government need to support this man otherwise cheap glass imported from outside zambia may consume him. Conrates Tonga bull.
#17 you just had to go tribal. This emphasis on tribe can be quite vexing. Tong bull my foot…
@7 you are a fool.this loan has nothing to do with pf.negotiations started long before pf.Go chilala dont look back one of the most objective Tongas.no politics in his business.
#7 EAGLE-EAGLE, this is a private company PF has no business monitoring it. Â and the losses will have nothing to do with gov. the loan signed is between a private bank and a private individual.
PF needs to find a way to make the market less risky for money lenders to lend out more at reasonableness rates.Â
Any viable investment must be supported by any wellmeaning zambian. that is great news and banks must appreciate their fellow countrymen, if we are to go forward in our dear zambia.
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why was the factory shut in the first place and who was the chairperson
Let’s support our own local investor, he is determind to show th world that zambia has th potential to produce standard products given th oppotunity go chilala go. Thank God I attended th interviews in july @ kGM it was worth attending breakfast and transport was proviided its rare in zambia to b treated lik that I think things wil start happening in kapiri