The Zambia Congress of Trade Unions (ZCTU) says it strongly supports calls opposing Konkola Copper Mines (KCM) Strategic Partner Vendata from acquiring an additional 28.4 percent shares in the Mining Company.
ZCTU Deputy Secretary General Ian Mkandawire said giving Vendata any additional shares in the company above the 51 percent which it currently had, would deny Zambian’s a chance to effectively partcipate in the managment of the Zambian economy.
Mr Mkandawire said Government must instead float the 28.4 percent shares to the Zambian people as a way of empowering local people to actively participate in the managment of local resources.
Mr. Mkandawire in a statement to ZANIS in Kitwe today said the concept of the Citizens Economic Empowerment Commission would only be beneficial to the Country if Zambians were allowed to take up economic opportunities such as taking over the 28.4 percent shareholding in KCM currently being held by the Zambia Copper Investiment Holdings (ZCIH).
He said government was aware of a number of controversies surrounding the mining industry particularly as regards the various agreements which had attracted calls for revision.
He added that Government should not bring about controversy by allowing Vendata to acquire further shareholding in KCM at the expense of indigenious Zambians.
He said his union was concerned over lack of social responsibility by current Mine owners which needed to be addressed adequately by off-loading some shares to
Zambians for direct attention towards the improvement of communities in which these mining companies are situated.
Mr Mkandawire said his union stands strongly opposed to any further acquisation of shares by Vendata in KCM and that Government should give serious consideration to the matter.
Meanwhile, Zambia’s total finished copper output will hit 1.2 million tonnes in 2009, against a previous forecast that said the country would produce 1 million tonnes in 2011, a senior industry official said.
Tim Henderson, the Chief Executive Officer of Mopani Copper Mines (MCM), said production of copper would rise faster than expected because the life of the vast copper and cobalt mines had risen due to exploration and modern mining technologies.
“Copper Production has increased from 257,000 tonnes in 2000 to over 500,000 tonnes in 2006 (and is) projected to reach 1.2 million tones by 2009,” Henderson said late on Tuesday.
President Levy Mwanawasa said in April the country was set to double its annual copper output to 1 million tonnes by 2011 following discovery of new reserves.
Henderson, who was speaking in Livingstone, 480km south of Lusaka at a Zambia economic and business forum, said the southern African country would have to invest in infrastructure such as roads and energy to handle larger volumes of copper.
“Zambia is not the only country working hard to attract FDI (foreign direct investment) in mining… we should therefore not relax. Privatisation has been a great success and boosted the economy through huge investments and job creation,” he added.
Zambia’s state run copper mines were privatised starting in 1998 when Chinese investors purchased the Chambishi Copper mine.
Henderson also said Mopani had in principle agreed to renegotiate development agreements with the government, which plans to raise mineral royalties to 3.0 percent from 0.6 percent and corporate tax to 30 percent from 25 percent.
“In principle, mining companies are willing to renegotiate the agreements. Any future change in the rate of mineral royalties should be linked to copper prices,” Henderson said.
Henderson was giving Mopani’s stand on impending increases in taxes for the mining firms for the first time after Konkola Copper mines, Zambia’s largest copper producer, said in June it was willing to pay the higher taxes.
Some foreign mine owners said the taxes would be too high.
Mopani, which operates the Nkana mine, Mufurila copper mines and the Mufulira Smelter is the country’s second largest copper producer. MCM is a joint venture of Canada’s First Quantum Minerals and Glencore International AG of Switzerland.
Mwanawasa has been pushing for greater foreign investment, including Chinese, in the country’s copperbelt region in a bid to modernise ageing mines and raise exploration and production.
I think ZCTU is right on the money on this one. The copper boom cycle is here for another 15 years and these Indians have seen the light and smelled the wealth to be made and so the desire to up their stake. Ba Mwenye Bakali Pa Mpiya.
Let the government float those shares on LuSE and make sure that they are only sold to Zambians or organisations in Zambia that support the poor. In SA, the government is selling 11 million MTN shares at 20% discount to South Africans and to qualify you must be a BLACK South African. Can’t we do the same for our people than sell this 28% to the Indians. Please lets benefit from privatizations for once as well. Well not me reeally am already rich as my name suggests. Why should it be only foreign companies beneifing??
Just prepare enough to invest into this boom.Rather than moving rhetoric here, those KCM shares will be floated on LUSE shortly. Vendata is not acquiring there 28.4% shares. Futuristic Zambians are ploughing into the boom.
Chinondo(1),you may have a point.When will Zambians be able to share in the wealth of our nation?If they do not want to float on LUSE then offer the shares to institutional investors who from the dividends will contribute to the welfare of Zambians.The institutional investors should include NAPSA,ZNBS,The Pensions Board and ZCCM-IH should increase their shareholding through the balance.
Indeed its time that Zambians benefited from privatisation and had a say in their nations economey. We seem to have a very short memory and to be forgetting what happened to the mining industry and the economey at large when Anglo packed their bags and left. Anglo had the controlling share in KCM and they used their position to strong arm the government. When they didnt get their way they punished Zambia by pulling out leaving the entire economy in free fall. We do not want to see this happen again. Lets not give the foreign investors to much poor, thus being at their mercy. Lets retain some control as the owners of the resources. Flot the shares on LuSE please and let the poor and the rich (chinondo) acquire the shares at least we will be assured that the only place these guys will be going with there money is to a bank in in some town in Zambia.
Just prepare enough to invest into this boom. Rather than moving rhetoric here, be at peace to know that those KCM shares will be floated on LUSE shortly not for foreign institutional investors, but Zambians. Vendata is not acquiring the 28.4% shares. This is where centrist advocacy records its mark. Already futuristic Zambians are pouching heavily into for the boom. The yields are exponentially inviting. Don’t miss out. It’s your choice to share in the boom. Found it prudent to remark on this.
Institutional investors as put by #3 are the best at the moment. The thing with leaving it open for ordnary Zambians is we have the ministers, the MPs and the none black Zambians like Mark Odnell(sp)coming in and buying these shares as ‘ordinary Zambians’ when infact they are not so ordinary, and there source of wealth is highly questionable. The ordinary Zambian does not have the financial muscle to compete with these guys and is not favoured by the largely foregn owned banks for loans. Getting meaningful financial partners from outside is almost impossible since the country is judged to be a high risk investment area, along with the rest of the continent as if Africa is one country. This is the point where one misses the UNIP era conglomerates like ZIMCO and INDECO.
There is need for all of us in the country to understand the macroeconomic importance of Private equity investments in an emerging economy long in a trough. GRZ and local investors need to take a rational approach to private equity investment in the economy.Practically; Private equity promotes prosperity, employment and social security this country desperately need. With the current boom, we have to build our own national economic growth capacity and that capacity would certainly sustain itself. This is why centrist advocacy away from empty political rhetoric must foster a sense of awareness that it is economically detrimental to let Vendatta take the 28.4% shares instead of Zambians. Some of us cannot just hold up the fact that Zambians must start taking keen interest in Equity Investment opportunities in all potential sectors. Collectively as a country we urgently need to pull out all the stops to create a climate that fosters the establishment of private shared companies and ensure GRZ makes more deliberate like never before. The key line of approach to this is to mobilize private capital to create private equity, that will attract investment from pension funds, banks, insurance companies, public institutions and charitable foundations the haves in Zambia must learn to come up with. Portfolio and Risk managers should start gearing to prove their worth in our economy. Eventually if the prosperity could lead to high saving ratio on aggregate in the economy, who knows we could miracuously build the potential of providing Southern Africa the futures. If we could become centric, over time we will appreciate the sense it makes to profit from the prevalent boom and what a strong private equity provides in the long run.
#6. Hapilo cut out the crap. Mark O’Donnell is free like any other Zambian to buy shares in KCM. we should do not discriminate on the basis of skin colour. The guy is doing more to invest in his country than so called black Zambians who steal and bank their money in Europe…..Ironic isnt it, Hapilo!
KCM really went for a song and the government should not go as far as giving this Indian company even more shares. Re negotiating the agreements seems to be at a pace dictated by the mining companies and we are just grinning until the copper price plummets, what would we have gained? This country desperately needs visionary leadership not this reactive lot.
The 28.4% shares should be floated on LUSE so that Zambians can directly benefit from such a boom.The Gov should put in place deliberate policies to encourage companies being listed on LUSE.Then these funds that are lying idle in banks could be put to profitable use with prudent investment.When we have more companies listed on LUSE,brokerage firms will spring up through which invidividuals can invest and do their trading on LUSE.This would create the much needed capital for alot of companies.
Pragmatist (7),
The MMD has well learned intellectuals most being our nation’s former technocrats. Certainly they also know your well explained macroeconomic views tied to a strong private equity investment driven economy. Truly if well regulated, that approach could translate into tangible prosperity, employment and social security for all. But don’t forget that our greedy politicians make their fortune out of such opportunities through their own front investment companies or the same Vendatta. Have you forgotten how Chiluba stole over a period of 3 years from the treasury millions of US Dollars in the name of saving the failed Binani in Roan Antelope? Those Indians were his accomplice in that front company to steal from Zambians. He kept pumping in millions even when all pointed to failure of those clueless Indians in mining. So my friend, clear and smart as your views are, the MMD leaders and their cadres will keep their grip firm on this Vendatta move. What happened to ZANACO?
#6Mbulawa, I think Hapilo has a point. Wealth need to be equally distributed. Going back to the MTN shares example, there is actually a cap on how many shares somebody can buy from the govt in SA because they want broad based empowerment because the BEE thing has produced very few but too wealthy black people while the majority languished.
We need to close the gap between the rich and the poor. As a rich person am concerned at the widening gap. I will actually even say that the rich should be excluded from these shares, even myself included. Remember we live in a democracy and we need to make it work. If the gap continue to widen, I fear the poor who are the majority will vote in the likes of SATA and trust me our wealth as the rich will be threatened. This is how Hitler came into power. So we need to close this gap folks. Let the poor benefit as well and lets narrow the gap, besides who wants to have poor neighbors. They will steal from you!!! ALL the RICH EXCLUDE!!
On the other hand, institutional investors we have in Zambia are all parastals which MMD through Government siphone from to sustain its operations. They bollow in billions but never pay back. successful institutions will mean more money for the MMD party. untill today, ZESCO, ZAMTEL, ZISC is still indirectly paying heavy dividends to MMD in kind. A wealth NAPSA or LUSF means a strong MMD party as their educated cadres will be planted their to facilitate the bad debts.
ex-miner(9),When the mines were on sale the copper price was pathetic and ZCCM was loss making and would have folded up and all us ex-miners would have got zero!!GRZ had no resources to recapitalize.Our industry was vulnerable and these guys moved in subject to their terms…not much anybody could do.Only now the copper price has picked up and these companies have agreed to re-negotiate terms.ex-miner(9), what do you want “visionaries” to have done different??
Our politicians don’t learn from past mistakes. This is not the time to give Vendata more shares. Indians are hard working and they like to siphon wealth from Zambia to either UK, USA, Canada and Australia etc. We have have Indians doing business in Zambia for years. How may good looking buildings have been built by them? You can tell serious investors who have a heart for the nation by what they build. So let us check on the crooks who want to give Vendata more shares. They have been given katamulomo or bribe by these Indians.
You are talking of local empowerment which concept is there to allow a poor Zambia to buy this shares. If you go to a bank and you want to get a credit you have to prove that you have security. If no security nada you dont get a credit. We have to work on way how we reach out every poor person to buy these shares. You talk of floating the shares at LUSE do ordinary Zambians know the critias how to buy shares and the risks involved on the stock market. What if shares fall wat is the way out. Private Equity is very risk espeecially such as Hedge funds. Many pensioners in USA are crying because of this animal. You are forgetting that copper is a waste asset so the day when it will finish this Indian will pull out. Zambians should plan ahead. You should ask you self questions like what if…,what is the alternative, As much as I would not want to see foreigners exploiting us then leave in us dissolution desto ya better they build infrastractures because these they can not take away.
You are all calling for the 28.4% to be floated on LuSE. If LuSE operates like NASDAQ and JSE there is no guarantee that once shares are floated only Zambians will be eligible to buy them. Once shares are floated LuSE and GRZ looses control on who buys the shares. I dont really know how LuSE operates. Can someone with information on the process of share aquisition from LuSE works.
Institutional investors will ensure these shares do not end up in the hands of Vedanta through underhand share trading.If the Pensions Board had shares it could use the dividends to help pay off the unfortunate pensioners who wait donkey years for their monies!!If you sell them to Pundit, Vedanta will offer him a 20% premium and those shares end up with the very people you are avoiding!!maybe out of the available 28%, 8% on Luse for “Zambians” and the balance held securely by ZNBS,NAPSA and the Pensions Board.The point is the security of ownership of a national resource for the betterment of the general population and not a few previleged “Zambians”!!In saying this, i partly agree with Shapi(13)and his concerns but that is something we could try and control.Shapis’ scenario demands greater transparency in the operations of the so-called institutional investors.
Things of our country also.
#16 the business of buying shares is not for poor people. You invest in shares when you have money and understanding that stock market is risky. You remember during the chilanga cement shares when it was advertised that even someone owning akantemba can buy shares from chilanga cement. Well people got their operating capital from utu ntemba and bought shares under the assumption that when you buy shares you will be recieving a profit sharing check every month. What followed was a disaster people sold chilanga cement shares at 50% loss. This happened because poor people need businesses that will generate a cash flow that they can use for their day to day needs. Yes copper is wasting product thats why people should educate themselves on these things. you can buy some of these shares today and tomorrow the price at LME drops which will affect the percieved value of the company. and guess what the share price drops. Now business men can deal with this but poor people i dont think so.
I understand that ZCTU and others in govt are trying to protect our national resource by limiting foreign ownership. ZPA can limit who buys these shares at Luse if they want to. The dilemma is this. Copper mining business is not like running chilanga cement or zambian breweries. When the hard times come (and they will) either from falling prices or need for major operational requirements most of the potential candidate shareholders being mentioned above wont have the capacity to prop up KCM. At that point they’ll probably still look for outside financing and inevitably surrender what we trying to protect now. The 20% the govt holds through ZCCM-IH isnt too unrealistic in such a global economy, in my view.
In any case, the Zambia Copper Investiment Limited (not Holdings) which holds the 28.4% under debate is registered out in the Bermuda. FTJ knows abit about this.
BaFrancis(22)Zambia Copper Investments(ZCI) was there well before FTJ knew what a million dollars looked like!!If you want to know about ZCI go and see Sardanis,David Phiri,Francis Kaunda,AB Chikwanda and co. Your answers are there my friend.Bermuda registration is not a crime but sheer business brilliance especially during the days when it was done!!
The blog is boring. Guyz start fighting. Now it will be ba Jose Vs Kuku and ref will be pragmatist.
Sorry if my statement sounded like incriminating FTJ. I was merely pointing out that he knows how they came to possess 28% shares in KCM in particular. Nonetheless, everyone reserves their judgement about the brilliance of that deal.
Ba Francis(25),ZCI has been associated with copper mining in Zambia and elsewhere since time immemorial.The late Mazoka could be added to that list.The list in no way ascribes to any impropriety but a mere illustration of how long these guys have “been in the mix”!!
Sorry to disappoint you Chatterbox(24).When the fighting begins, reasonable thinking contributors attend to other more worthwhile activities!!
The Zambia Copper Investment(ZCI) shares belong to Anglo-American. This is the minority stake AAC had since KK’s nationalisation of the mines. When Anglo pulled out in 2002 they only surrendered the 51% stake they acquired in 2000; and but they still retained their 28.4% minority shareholding from way back. Hope this makes things clear.
Chatter Box (24),
Kanyele mumatanta yanoko ukokwine walepa chilukobo.People are discussing important things here not your grade 3 hide and seek games shaa! Bearing in mind that you are a lame duck like me, stay out of the way.
#24 Iwe chatter box don’t associate my ID with INDOSHI nkalamba iyapwa abantu ci pragmatist ici lemba muci arabic ngacadobola organic dagga.
Copper is our natural resources that need to be benefited by zedianz and improve their welfare. Selling extra 28.4% it will be an insult to zedians as though they don’t know how to manage their own resources. “mali kawena” this is a kabanga language popularly used in mines during the 60s meaning “land is theirs and money is ours”. Therefore, let the Govt float the 28.4 percent shares to the Zedians as a way of empowering local people to actively participate in the managment of local resources. If not then my conclusion will be justifiable that chuchu is a solo beneficiary from these infestors posing as investors on our mother land.
Lets say the shares are floated on LuSE and zambians buy those shares, may be 50 – 100 shares a person. because that is pretty much how many shares most Zambians can afford to buy as evidenced by the chilanga cement saga. If my assumption of people affording less than 100 shares is true. Selling shares on LuSE would be tantamount to exploitation. Because there is no guarantee that the share price will go up. If the share price goes up they can sale at a profit, But if there is a drop they have to wait for dividends of about K2.00 a share at the end of the year. I dont think that is the kind of investment someone who owns aka ntemba is looking for. Worse still these people would be forced to sale these shares at a loss because they dont have the cash flow to sustain their livelyhood while the little money they have is tied up in shares. As much as want to own and control national resources, We should have a realistic approach to these issues.
Yes yes crifisy on earth and heaven is yours. Among bloggers who have done finance management or investment studies. I believe none of you. You will just ruin what is there please work out lasting concepts before you start buying shares. Now wonder those who are clever are doing fine. No here is data of shares in all mines then tell who owns wat?
ZCCM-HI have the follow shares:
Chambeshi Metals (10%)
Chibuluma Mines Plc (15%) in Kalulushi
Copperbelt Energy Corporation (20%)
Kansanshi Mining Plc (20%)
Konkola Copper Mines (20.6%)
Luanshya Copper Mines Plc (15%)
Mopani Copper Mines Plc (10%)
Copper Mine bei Solwezi (20%) in Kansanshi
Copper Mine (15%) in Luanshya
Copper Mine bei Chingola (10%) in Mufulira
Copper Mine bei Kitwe (10%) in Nkana
The factor is ZCCM-HI owns 86% of the shares and who are owners of ZCCM-HI? Answer this question pilz?
Brief History of ZCCM-IH
ZCCM Investments Holdings Plc (ZCCM-IH) is an investments holdings company which is quoted on the Lusaka ,London, and Euronext Stock Exchanges, and has the majority of its investments held in the copper mining sector of Zambia. The Company’s shareholders are the Government of the Republic of Zambia (GRZ) with 87.6% shareholding and private equity holders with 12.4%. Minority shareholders are spread throughout the world in various locations.
People on this blog, will someone tell me, Is Zambia only for Zambian’s only? There seem to be so much cry about empowering zambians with the floatation of shares and everyone here knows that floatations have no restrictions provided only that the capital the person is investing is/was obtained through legal means and that they are not using it for money laundering.
SAGE #17,good example you’ve given of nasdaq,jse,lse,nyse etc but why is it that africans in general want what is in africa to black africans only what is outside africa for us all? I believe this generation should have a different opinion on such issues unlike KK,Mugabe et al who are vigilants and racists.
The purpose of floating shares on the exchange is to secure ownership and stabilise financing of the organisation.
Is Vendanta’s move to acquire more shares within the rules of the country about competition and monopolisation of an industry?
If Yes, then they have the right to acquire more shares.
#33, there’s a history to the apprehension that people understably feel about this issue. At independence, these mines were running as private entities. Later on KK nationalised them because there was good evidence that the mines were not investing. What we saw under ZCCM in the early days were massive social and economic investments. Of course mismanagement also happened. When global trends started changing and ZCCM was seen as a lacking capital, we had to re-privatise, this time under FTJ. Some people are saying we seeing evidence of capital flight and little social investment. I havent seen hard facts. But I think reading from Magande’s pronouncements something’s not right.
So we’re just coming full circle on this issue and we still have many Zambians who are old enough to remember these things. Overall this is a very delicate issue. People like Francis Kaunda could possibly give us strategic direction.
#34, The social and economic investments ZCCM was doing were the main causes of it’s collapse. It was over-stretching itself,even when they were in the red they invested whilst the govt was misappropriating the tax it was collecting from such entities. Dont you think local financial institutions can form some prvate equity firm and buy some stake in most of these companies, and we canmake use of their underwriters in their firm. Their cash is lying idle, i’m wondering what they are using it for.
#31, You do not even own a single stock? Stop been a bully and a showman.
#35, You’re obviously right about mismanagement. But what i read, maybe misread, from some zambians above is that its better to mismanage our own resources than have them managed better by and for foreigners.
However, whether 20% or 49%, or 35% is more a symbolic concern from ZCTU. My view on local investors is up on 21. But the people who have been in this business should say something more authoritative to our govt.
in the 1st place remember that empowerment initiatives in sectors are voluntary there is no mandatory requirement.unless amore flexible approach is adopted when negotiating the devlopment agreements that the investor shd exhibit the willingness to incorporate empowerment initiatives in their business activities in return for an incentive that the grz may offer.these encompass preferential procurement,skills development,increase in equit participation and enterprise devlopment.why didnt kcm reinvest these shares into the economy/because what we have know is a ringfencing situ where empowerment will become illiquid.a better option wd have been to also go in2 a strategic partnership with grz to create special purpoe vehicles to finance certain developmental projects that can be translated in2 economic growth. (e.g creation of ppp funds.)
these funds will be a trust that will hold the shares at adiscounted price for the disadvataged people.
we need thepolitical will and ppp initiative
#33 Kayata, why do you look for evidences when its plain and white. From the day copper was discovered it has been used to develop other nations especially the west. We cannot allow a situation where these so called investors steal our resources in day light. Do you real what they do with the money they earn by selling our resources. Can you tell me which mine company has built even a school since they started mining in 1998. Zambians are crying for a better life and they are not discriminating what we want is co-existance. I dont know where you are right now and how you are treated if you are real equal with the citizens of the that nation. If you have not take their citizenship then you are still subjected with all sorts of humilations. Can you afford to make holidays every month at least to fly to Bali and relax. How is the health secotor can everyone afford treatment. Yes Zambia has 80% of literacy that is why we are fiight to for equality.
Just to clarify on enforcing the sale of shares to Zambians only. This is perfectly enforcible at any SE in the world. Looks like a lot of people do not know how you trade stocks. All SE use brokers to trade and nobody anywhere in the word does it directly. Even online trading you still go through an online broker. So you can get a block of shares allocated to brokers and the broker just sells them to Zambians and only sells them back to Zambians available. This is possible in fact NASPERS the owners of DSTV just did a similar arrangement last year. They have set aside a block of their shares to be sold to only poor black South Africans. The shares were sold at like 80% discount and one is not allowed to sell them till after five years and in the meantime you get the DIVs. Am sure those that have DSTV must have seen this advert called something like Mpumanati
SO it’s 100% possible to have a block of stock sold to just Zambians only.
NCCM spent greater amounts on social welfare than it’s compatriot RCM.It was however still a profitable company.The merger in the 80’s created ZCCM that took on even more social responsibility.Prior to privatisation ZCCM was still profitable but was suffering from the world wide recession in copper prices.GRZ under pressure and experimental advice from donors and becoz of the prospect of “nchekelako” we privatized the mines.This saw the mining industry absolve itself of any social responsibility and only resulting from a public outcry did they assume a TOKEN measure of social responsibility.Copper prices are at an all time high and so is capital flight from this industry.We sold the very vehicle that developed our country and now we want to sell off the little we still own of it!!Privatization was a rushed program destroying our economy and the irresponsible drivers of the program are scot free,wealthy and looking to put the final set of nails into the national coffin.Zambians wake up!
When Vendata “took over”, the copper prices were not as depressed as they were when ZCCM was being privatised. They still paid peanuts and have reaped huge profits with a pittance for Zambia. Their social responsibility? Artificial limbs and mending a few potholes in Chingola.
Ba Joze (29),
Why are you that childish when people are intellectually blogging, you are there laying bear your injured mine masala Kaponya steam. Personally, I have found you to be a bitterly injured whimper helplessly trying to antagonize an intellectual and sober blogger who has at worst rendered you more useless by his silence and observed tendency of writing off your vile posts. Just recollect yourself and understand his freedom of tearing down your doctrine he has called nothing but a collection of “Satanic Verses†used by fanatical slobs. Seeing your reaction and whimper behavior confirms much. It’s like you have no capacity to contribute mind stimulating views but worthless self sinking diatribes and cheap framing games through mutations and impersonations. There is a clear line of deep difference between your foolishness and that of the sober, smart and proven experienced blogging “Pragmatistâ€. You are there calling him indoshi blah blah blah without anything to point at. That is maliciously bitterness of a heavily helpless injured whimper you have proved against a smart and forthright characters beyond your caliber. If I were in your injured status, I could have considered some legal suits rather you’re your helpless accusations and diatribes on blogs. I have sufficiently done some dirty phising work you may hate to know. Your IP and Location have consistently kept giving you up in all detestable posts and impersonations from the calls for fights on the blog to using other bloggers in pasting Arabic articles. You have come as Chatter Box (24), Lifa, AM and many subnormal trolling IDs.I have looked at Pragmatist’s IP traffic and his location. His IP data shows he has been a long time blogger from the days we were running the defunct Zambian Think tank forum to the present time blogs. Find other ways of healing from your incurred damage at the incantation you have had. I beat you diatribes and framings will not do anything. He is a seasoned blogger am short of calling him a tested real world politician immune to innuendoes or consider changing your blog ID and doctrine considering the disgrace and pain you are bearing.
#33 There seem to be a resistance movement on this blog and in Zambia against anything other than black Zambian. I for one do not ascribe to such tenets. We live in a global village, Zambians should learn to be competitive and not protectionism. I have made examples of the tender system where you spend $10.00 and make $200.00. Well that kind of a business only exists in Zambia and is not sustainable. Look at the guys supplying umwela at the mines. They can’t do a normal hard working business where you make 10 – 20% profit. The whole culture stinks. That’s why the privatization exercise cant work because people are not used to pay for the true value. Kaunda gave ama kuponi and subsidies. Make no mistake there is nothing wrong with subsidies, but let’s subsidize production and not consumption. I have said this and i will say it again. I doesn’t matter to Zambian who owns the mines or Zamtel because we don’t benefit from these companies anyway. The only benefit a Zambian gets from these companies is a job. Which will be there regardless of who owns what. There is a lot of opportunities on the global market that Zambians can take advantage of. Be creative and stop waiting for GRZ to give you a tender to supply umwela. Educate yourselves on how to start and operate a profitable sustainable competitive business.
it is very critical to analyse the capacity that most Zambians have to play in the stock market.It is indeed ideal for Zambians to make a loot in the capital market.However,income aspects of most Zambians tend to be a detriment.Only afew Zambians would be able to buy shares in these companies.Now, it must be borne in mind that companies float shares to raise capital.If the market cannot satisfy the supply for outstanding shares,it means the company’s capital level is affected.This would entail that that particular company will not be able to raise the necessary capital required for growth projects.Personally,it is not about Zambians directly holding shares in that company.What the Securities and Exchange Commission needs to encourage is the creation of Mutual Fund companies.This will afford small individual investors to own shares in an array of companies, thereby even minimizing their exposure to high risk stocks.The question though is, would Zambians be willing to be long-term cont’d
cont’d from #44.
investors or just traders looking for an overnight profit?The other possibilty is to encourage Institutional Investors such NAPSA to play a leading role in the market so that any pension contributions that employees make toward their retirement are actively invested in the market.This approach not only guarantees the much needed Social Safety net but also reduces the risk of NAPSA defaulting on paying retirees.Yet another idea, is for government to legislate the creation of Individual Retirement Accounts(IRA)into which individuals can make contributions and use them to invest in the stock market.trying to block Vedanta from owning more shares is just plain ignorance of the operations of the Capital Market.As a matter of fact, government can create a special tax levy for huge these companies.We need companies like Vedanta to develop the capital market in Zambia.Just put in place strict labour laws which they would adhere to.
cont’d from #44.
investors or just traders looking for an overnight profit?The other possibilty is to encourage Institutional Investors such NAPSA to play a leading role in the market so that any pension contributions that employees make toward their retirement are actively invested in the market.This approach not only guarantees the much needed Social Safety net but also reduces the risk of NAPSA defaulting on paying retirees.Yet another idea, is for government to legislate the creation of Individual Retirement Accounts(IRA)into which individuals can make contributions and use them to invest in the stock market.Trying to block Vedanta from owning more shares is just plain ignorance of the operations of the Capital Market.As a matter of fact, government can create a special tax levy for these companies.We need companies like Vedanta to develop the capital market in Zambia.Just put in place strict labour laws which they would adhere to.
sorry for the double posting
I think we should take a leaf with what Putin is doing in Russia regarding oil and gas. He has shut out the big western oil companies by having the state oil company get 100% shares. I think we need to get the most benefit from our resources not some foreigner who does not give a damn about what happens to us. It does not matter where they come from. They all want our wealth and nothing else.
I can see that some people are still msitakenly and fondly speaking about the the so called nationalisation and ZCCM years! This; country men and women is what destroyed the Zambian economy. It is not true that the former private companies were not reinvesting unlike ZCCM after KK’s nationalisation policy. The truth of the matter is Zambians like Francis Kaunda and David Phiri mismanaged the mines. Remember at the time of nationalisation in 1968/69 Copper production in Zambia was at a peak of 750 000 tonnes, third highest after USA, and Soviet union. From there onwards it was a downward spiral. By the time of FTJ privatisation programme production was hovering around 200 000 tonnes. Contrast this with Chile which was producing about 700 000 tonnes in 1968/69. They never nationalised the mines. Instead they used their minority shareholding in the mines to reinvest and expand their state owned mines whose 1.8m tonnes is the largest in the 5.5m tonnes (2006)production capacity.
Whilst i would agree there was mismanagement to a certain degree as alluded to by (49),the reality is that these mines were still profitable but just not achieving it’s maximum potential becoz of social responsibility.The best way would have been to absolve ZCCM of this responsibility not wholesale privatization as was the case and it would still be around today paying handsome dividends into the national treasury.Russia has woken up and is systematically taking control of its national resources and where required partnering with private enterprise.This has and will continue to reduce capital flight and make sure citizens benefit from the countrys resources.Without NCCM/RCM or ZCCM in the form it was there would be no schools and basic infrastructure that we use now on the Copperbelt and that is a fact.Zambians.. we sold our cash cow and now we are in a self created dilemma.We have to regain control of our resources and re-ignite development.
# 42 ci Patron
Bushe ningulu nishi iwe walwala? Dont shift your anger kuli ine nganaisanda kubond. Lifa, AM, Kuku and chatter box are all different pipo and that entails that you judgement needs panel beating. If we speak one language with same ideas does not mean we are one just like you and ci pragmatist who breath fire and mean I can not conclude that you are also INDOSHI but I can just say you are seriously in need of pastors to cast out demons before you throw yourself in hot water. What is so special about this dogga chain smoker pragmatist? If I had to tell Citizen or Easy ati nindoshi you would have kept quiet te? Ci Patron, it is useless and stupid for a big old useless man to come on the blog and call himself pragmatist when we have not seen what he has done. Atleast for his friends chipimo snr and kafumokache we saw their work. Patron bushe ni kalijo wakwatila nangula naiwe uli ndoshi or ni dobo or coke ulundosa over size. Mwaice Patron grow up.
#51 Ba Jose – Ici Patron cimo cine na Pragmatist, tamumwene chakwata amashina yayambila P. NICHIMWANSA KABINGA MUSHIPAILA/MUSHIBILA ISALA (the devil who does not kill/steal for gain). Chipepa dokyo yabula ukupomba mwibula lucelocelo. Iwe ci mudala ci Patron/Pragmatist, leave Jose alone,let him Live,Love,Learn and Laugh.Life is short, he cant afford ukaka inkashi ishita yosa. U can do the same if so wish. Ba Kuku, our loving incoming presdo come to aid of the Jose – pray for him IFILOSHI ifi filefwaya ukumuloya umwanaice.
Fellow contributors…..when someone attacks you personally or just posts insults do not respond or acknowledge their contribution.In most cases these time wasters will return to see what responses they have got.When they don’t find ANY acknowledgement or comment it frustrates them and they are likely to stop such foolishness.Some of them are tough skinned and try again and when the same happens they will just give up and move right along!!Trading insults with a faceless person is quite a waste of energy and internet access time!!
Gentlemen tiyeni tukule ko.We aspire to be leaders and this must be a forum for intelligent articulation of major issues affecting our country.Every contribution is meaningful in it’s own right.Respect divergent views.
#536 For sure pump some sense in Patron/Pragmatist.
KC…thanks for that observation. Ka Jose and your fellow Kaponyas you have hijacked this blog. Its becoming increasingly difficult for people discuss progressive ideas. Eact time someone tries to forcus some patron shows up.We are nno here for entertainment. If you have nothing constructive just shut up.
# 56 ba sage ba kamba spare me plz. Atese ka sage kashi uli dizzy naiwe, just go and discuss fibres and wireless te?
#33 Kayata
A floating 28.4 percent shares will enhance equity distribution of resources to the public unlike just giving the entire share to an individual whose in capacity has already shares. Hence that will also deft the purpose of mine royalty % once Vendata starts getting a % more than 51 %. Simple arithmetic can tell you that, the smaller the mine royalty % on bigger share is, the little the amount of tax they will pay. Kayata mukamba, the idea is not based on equal but equity distribution of resources to the public regardless of colour, race, religion, creed and above all a citizen of zed.
What bulls and bares on a se? which risks are beyond human control on es?Kayata you seem t a broker you explan.
#58 Ba Joze
Mudala Joze, what is the Zambia Competition Commission doing? ie. The Competition and Fair Trading Act 1994.
ba Mudala imagine if Vendata gave you the money for the 28.4% and acquired those shares or divided the % between you,kuku and easy. What would you say? But they’ll still remain in control of all voting rights and a little % of dividends is paid to you. Sounds nice, isn’t it because the 28.4% will be owned by 3 Zambian’s on paper but in general they are Vendatta’s.
What Vendatta simply wants to do is increase ownership because it is not fulfulling the objective of raising capital on the exchange. Joze mukamba,even if they increased their shareholding,they still will have to pay all taxes.
mukamba, mailo pass through lusaka stock exchange and ask them how many people have bought shares in the quoted and listed companies. the answer will be less than 50. nomba mukamba, Vendatta is losing out on making money when it give corporate bonds in other countries.
#59 Easy,
A Bull Market is when stock prices are rising or expected to rise.
A Bear Market is when the prices have fallen,but when they immediately rise then it’s a correction and they always rise especially in the developed nations because of low unemployment and recession.
Easy,both are beyong human control but you wouldn’t pray for a bear market ofcourse because everyone is on the stock market to make money especially if you are a day/frequent trader and a have bought massively in stocks cos a small decline is a big loss.
#61 Kayata u seem to know a bit of Finance so what is IPO? Who fix interest rates at time of the day is this done. What influence on the daily business on the SE. I want to buy some shares and bond which strategic advice can you give me. I want to limit my risks both on the bottom and up. Pilz Advise?
#62 Easy, you missed out on the IPO of Blackstone, but firstly am not a broker or a finance person.
IPO, you talking about the first sale of a companies shares on the public stock exchange.
Interest Rates are fixed by the Central Bank of a country, or what interest rates are you refering to?
If you mean corporate bonds, the company sets them.
If you are buying shares, you are safe if you buying one of the NASDAQ 100 or if in the UK FTSE 100.
By JABU MABUZA
Without any visible and demonstrable increase in land ownership by the
so-called
Black middle class, how can this group possibly be a noteworthy force
in determining the rate of economic growth in SA?
The media hype generated by the UCT/Unilever Institute
Black Diamond 2007 survey points to one thing: that the
black diamonds are nothing more than a glorified consumer
group.
This group is characterised by its lack of ownership and
control of the factors of production and its inability to
generate its own income independent of Caucasians and their
businesses. The black diamond is conspicuous by [ his]
lavish consumption of luxury goods acquired through debt.
There is nothing wrong, of course, with basic personal and
home comforts as a reward after hard work – but not if
these come at the expense and discomfort of clinging on to
our expensive chesterfields in our highly mortgaged homes
every time the Reserve Bank announces an interest rate
hike.
The closest the black diamond can get to owning real estate
is when purchasing a tiny property for a home on a piece of
land a few met res larger than the house itself in a
security estate in the formerly white suburbs.
The second “investment” to the mortgages is highly geared
equities, mostly acquired through discounted BEE share
schemes engineered by Caucasian business for compliance
with government’s BEE requirements.
The black diamonds remain trapped in the rat race through
these fanciful empowerment schemes, and use the paper money
acquired and the strength of the share price in the
companies they invested in to create further debt. This
debt is then arrogantly, wittingly, and falsely utilised –
by white advertising and marketing agencies and research
bodies and their counterparts in economic research and
analysis – as the driver behind SA’s economic growth. All
this is a fallacy of “economic hit men” and their handlers.
Economic growth in SA has always been driven by, not the
newly graduated black diamonds, but the masses of
downtrodden and economically marginalised poor black
working class from the rural areas and under-serviced
townships. This is by rendering cheap labour to sectors
such as construction and mining. Financial institutions in
the first economy, as defined by President Thabo Mbeki, are
sustained by the investments in pension funds of the masses
of poor black people. This is the same economic class
falsely referred to as “the unbanked”.
How much do black diamonds invest in the economy then?
The falsehood of the results of these black diamond
“surveys” – often supported by doctored statistical data –
is u sed as a weapon in psychological warfare waged by
industrial psychologists to instil a false sense of
aggrandisement and achievement in the black diamond market
segment.
Big business, which by SA definition is largely white, is
fed the same results to target the selected market for more
credit sales. The credit is often extended at no
application. Thanks to government for the enactment of the
National Credit Act.
Frankly, the idea of the existence of black diamonds is a
conceptual construct rather than an objective reality, as
succinctly argued by ANC businessman Saki Macozoma ( Cover
Story July 6 ). Chika Onyeani calls the black diamonds
capitalist nigg*rs, and describes the embarrassing economic
naivete that defines this socioeconomic class.
Though one can hardly dismiss out of hand the emergence of
the black middle class as an economic stratum, it is
difficult to ignore the reality that black diamonds as a
social force is hype and a false creation of the
advertising and marketing fraternity. These “diamonds” are
worth zero carats.
Mabuza, a member of the Black Management Forum, writes in
his personal capacity
Financial News
Monday July 30, 12:50 PM
SABMiller makes offer for subsidiaries
LONDON (ShareCast) – Brewer SABMiller said it is making simultaneous offers for all the voting shares it does not already own in its Panamanian subsidiaries Cerveceria Nacional and Refrescos Nacionales.
The total consideration payable for both companies will be approximately $30m. Offer price for each Cerveceria share is $22 while for Refrescos it is $10.50.
Minority interests in Cerveceria and Refrescos are 8.4% and 1.9% respectively