Secretary to the Treasury Fredson Yamba has urged Zambians to play a more effective role in managing and running state owned entities in the country.
Mr. Yamba said there was need for state owned entities to list on the Lusaka Stock Exchange (LuSE) so as to give citizens an opportunity to own shares and consequently benefit from capital gains and dividends from these entities.
He was speaking in Lusaka today at a consultative workshop for state owned enterprises that are being quoted on the Zambian capital markets.
He said listing on the stock exchange market will not only benefit citizens but also state owned entities themselves because most of them were embarking on massive projects that will require large amounts of capital to take off and complete.
Mr. Yamba said getting quoted on the exchange market will accord state owned entities an opportunity to raise the much needed capital to fund their projects adding that this will also help them raise their public profile with their clients, investors and the media.
He further observed that state owned entities have the potential to be transformed into globally recognised competitive institutions.
He expressed happiness at state owned entities which were choosing new sources of funding other than banks.
And Securities and Exchanges Commission Chief Executive Officer (CEO) Wala Chabala has commended government for looking at alternative ways of growing and sustaining the economy of the country.
Dr. Chabala said the zeal and impetus that government has shown in growing the economy will certainly score a different result especially that the country has been known to do the same things for over 40 years with the same results.
He cited the rebasing of the Kwacha and the Bank of Zambia amendment bill as among the initiatives that were likely to yield different results for the benefit of the economy.
Dr. Wala has since called on government and cooperating partners to continue being creative and looking at other ways of having a greater impact on the economy to achieve development for the majority of citizens of Zambia.
ZANIS
So that sata can keep my money? I don’t trust none on y’all
“Dr. Chabala said the zeal and impetus that government has shown in growing the economy will certainly score a different result especially that the country has been known to do the same things for over 40 years with the same results”….GOOD POINT but u shud hav said….the country has been known to do the same MMD things for 20years with same results which could not have an impact on the poverty levels of our country.
Its not like Zambians don’t want to own shares. Most of them have no access to finances or if they do the cost of borrowing is prohibitive.
There is also lack of information out there as most Zambian don’t have access to internet to help the research and understand company profiles before making a decision.
Govt must do more than just rhetoric.
Comments please! Ifyamano tamulandapo because yu are dull bloggers. Bunda bwansele bafikala
Mwamba Mutale…Good point Man, you will very few comments on such articles. You can tell the caliber of bloggers we have here and esp those from ZWD. Very good at talking R.uubish.
Ba Mutale, these things like stock-exchange whatever, are very complicated for us to comprehend. Can you yourself Mutale go and explain and convince your uncle and his friends to sell 3 goats so they can buy some shares or stocks in Lusaka?
Frankly, you would have to be mad to invest in a company where patronage is more important than profit.
but can we also get detailed poccedures on how to acquire those shares coz not every one is privy to such
Who in his right mind will put his hard earned cash into a company that is run by *****s appointed by morons through political patronage? Dream on!
Privatise, and there may be more interest! The history of “parastatals” in Zambia is a long list of cronyism and waste of taxpayers money, with a good dose of curruption and nepotisim thrown in.
Aya kumapolitics. Just put. Come on put your money.
The challenge that most (if not all) SOEs will have in listing on the stock exchange is that the Securities and Exchange Commission’s (SEC) own rules dictate that in order to list, the company needs to have had a track record of profit (at least 3 years) and have a healthy balance sheet. The reason for this rule being that the “gullible” public should not end up pouring money into a venture that has little chance of ever making a return. To overcome this difficulty SOEs will need to have “proper” governance structures that shall incentivise performance and a more commercial slant. To achieve this government will have to reconsider their current board/directors appointment and shareholder policy. In the absence of this the public will own shares for which they shall get little or no…
Spot on Peter Chilamfya!
how much do you need to enter the markets?
Thats why you Oscared your GF. Just put. Buy GRZ bonds if you do not want to take a life taking risk.
What really is the policy objective here, improving state owned enterprise performance or diluting ownership through citizen participation? I doubt citizen participation will improve the performance of these entities. What SOEs like Zamtel need is a 51% equity partner with the technological knowhow to provide the next wave of telecommunications products — 3G and 4G LTE Networks, video streaming, etc. Without this kind of investment, Zamtel will remain uncompetitive and merely homorrage the local investors. ZESCO on the other hand, needs a private equity partner with a 51% stake and experience in the sector to ensure that it runs more profitably: reduces its wage bill to match its net cash from operating activities.
What is the procedure for persons living outside zambia, what is the minimum and maximum limit? LT more details please!!
Easy, just open an account with one the Stock Broking firms e.g Renaissance Pangaea or Stock Brokers Zambia Ltd and you start transacting. All the 2 firms are very professional and they will keep you updated of market trends on a daily basis and weekly summary provided with clear recommendations of action steps for each stock i terms of: Buy, Sell, Hold & Accumulate.
It is good wealth build option for the Diasporas.
Thanks
how much is needed?
Thankx Patriot.
you want to reveal our bank details later..atase..useless..
Opacity, bad governance and worst… like ZCCM-IH ???
state owned enterprises are rotten, look at ZCCM-IH chairman Wila MUNG’OMBA’s practises and you will understand
They take us for retards !!
Just invest if you have the means and stop showing your frastrations due to lack of understanding or previously failed plans. “Ask and it shall be given” Ubu nangwa in everything…..