Government says the Zambia National Commercial Bank, ZANACO, has been sold at an offer price of US$8.25 million to Rabo Bank of Netherlands.

Minister of Commerce, Trade and Industry, Kenneth Konga, has however, stated that the actual sale price of the bank would be known after three months at the completion of the evaluation of assets.

Mr. Konga told Parliament today that in accordance with the sale and purchase agreement between government and Rabo bank, 10 per cent of the offer price was received on January 22nd this year while the remainder was received on April 3rd .

He said in a ministerial statement delivered in parliament today that the money arising from the sale has been deposited in the current corporate account of ZANACO, account number 00304100000047.

He disclosed that Rabo Bank’s gross bid on net assets of the bank as at 31st December 2004, was at US$10 million, adding that government would within 90 days appoint an independent consultant to evaluate the net asset value of the bank.

ZANACO’s net assets as at December 31st 2004 stood at US$20.5 million.

The ZANACO’s 49 per cent shares have been sold to Rabo Financial Institutions Development, RFID, a subsidiary of Rabobank.

RFID on Tuesday this week, in accordance with the sale and purchase agreement between the Zambian government and the bank, took over the management and operations of ZANACO after the completion of the sale.

Mr. Konga disclosed that so far US$665, 000 have been paid to Price Water House consultants and DLA Paper Royd for consultancy work.

The minister, further, disclosed that Rabo bank has committed itself to increase the number of rural ZANACO branches by 20 per cent and maintain them for a period of not less 10 years.

He, however, said Rabo bank has been allowed to move the existing rural branches within the radius of five kilometres, if necessary.

He assured Zambians that Rabo bank has also agreed to retain all workers but stated that any retrenchment for unionised workers would be done in accordance with the collective agreement on labour laws.

Mr. Konga revealed that the bank has also brought only three expetriates workers that include the Managing Director, Managers for Change and Risk respectively.

He said government was satisfied that the Nertherlands’ bank would reposition ZANACO as an agricultural financial provider and contribute to the wealth creation of Zambia.

The minister said Rabobank’s acquisation of 49 per cent and the impending government’s offloading of 25. 8 percent shares on the Lusaka Stock Exchange, LuSe, marks a milestone in the privitisation programme under the Zambia Development Agency, ZDA.

He further assured the house that government expects the long term partnership with the bank to yield susstainable benefits for the country.

He said all the information on the sale of the bank would in 24 hours be availed on the www.zpa.org.zm website.

ZANIS

The Patriotic Front, PF, in Kalabo district want government to consider reviving rice production in the area.

District PF Chairman, Joseph Muzaza, said Kalabo still has great potential for rice production that could help contribute to the enhancement of national food securityonce fully exploited.

Mr. Muzaza is of the view that government implements a programme that would facilitate the sensitization of farmers with new farming methods to enhance their
ability in rice production.

Mr. Muzaza told ZANIS in an interview that farmers in the area should be equipped with new methods of rice farming in an effort to increase production.

He said crop diversification in the agriculture sector is significant to efforts of achieving reduced dependence on relief food aid in time of natural disasters.

Mr. Muzaza, however, thanked government for efforts being made to uplift the status of agricultural cooperatives in the district.

Mr. Muzaza, however, regretted that poor road network in Kalabo has negatively impacted on the marketing of farm produce.

Mr. Muzaza has since urged government to consider prioritizing the construction of the Shangombo-Kalabo road to ease the transport difficulties farmer experience in
the area.

ZANIS

President Mwanawasa has called for the revival and diversification of the mining sector in a bid to enhance the growth of the national economy and employment creation in the country.

Mr Mwanawasa says his administration will remain committed to creating a conducive
environment which will attract increased investment in the mining sector.

He was speaking at the ground breaking ceremony of the construction of the Munali
Nickel mine in Mazabuka today.

Mr Mwanawasa said the conducive mining environment created by his administration
since 2002 has resulted in increased foreign investment in Zambia and has also helped in employment creation for the local people.

He noted that his government has put the mining sector on its development agenda because of the role it plays in the economic development of the country.

President Mwanawasa pointed out that his government will strive to put in place prudent policies which will translate into increased investment in all the key sectors of the national economy.

He called on Mines and Minerals Development Minister Dr Kalombo Mwansa to step up
the ministry’s mining and gas geological exploration to attract more mining investors into the country.

Earlier, Mines and Minerals Development Minister Dr Kalombo Mwansa said the opening
up of the Munali Nickel Mining plant in Mazabuka district was a clear demonstration of the great importance the MMD government attaches to the mining sector.

Dr Mwansa said his ministry will continue putting in place policies that will attract increased investment in the mining sector and also contribute significantly to oil and gas exploration in Zambia.

Speaking at the same function, Southern Province Minister Joseph Mulyata commended
government for putting in place policies, which have translated into economic development of the province.

Mr Mulyata said the development projects initiated by the new deal administration
have helped to raise the people of southern province from the shackles of poverty.

And Albidon Zambia Limited Managing Director Dale Rodgers said his company will
invest US$100 million in the development of the Munali Nickel Mining Plant.

Rodgers pointed out that the US$100 million investment into the Munali Nickel Mining
Plant will result in employment creation as well as contribute positively to
sustainable development of Zambia.

ZANIS

After months of negotiations, government has finally, handed over the management of the Zambia National Commercial Bank (ZNCB) to Rabobank of the Netherlands.

The deal was sealed in Lusaka today after government agreed in principle last December that Rabobank should buy 49 per cent shares in ZANACO.

Commerce, Trade and Industry permanent secretary Davison Chilipamushi disclosed during a press briefing that Rabobank’s assumption of the  management of ZANACO was
in line with the agreement on the partial sale of the bank.

As part of the sale and purchase agreement entered into by the bank and the Zambian
government, both parties agreed that Rabobank takes over management rights of ZANACO while government will retain its representation in the bank at board level.

The new board includes three members from Rabobank , two government representatives  and one representative to be appointed by  board members.

These are Mark Wiessing, Arnald Kuipers , Jan Dijkstraa , Chintu Mulendema and
Getrude Akapelwa.

Mr. Chilipamushi said the take-over of the bank today marked the end of the long
process of partial privatization of 49 percent sales in ZANACO which he said has been conducted in a transparent manner.

Mr. Chilipamushi said ZANACO’s partial sale will enhance economic development in the
country.

He added that the sale was also done in accordance with the provisions of the law as stipulated in the Banking and Financial Services Act.

He however could not state the sale value of the bank saying government through the
minister of commerce will inform the nation after the evaluation process is completed.

Mr Chilipamushi said the value of the bank’s assets has increased over the years compared to 2004 when ZANACO  was offered to Rabobank hence the need to revalue the assets.

The permanent secretary said 25.8 percent shares would be offered to the Zambian public so that they have a say in the running of the bank.

Mr. Chiliupamushi who is also past chairman of the board thanked board members and
the staff of the bank for their contribution during the privatization process, which he said has helped to increase the value of the bank.

And speaking at the same function, new ZANACO managing director Mark Wiessing said
the vision of his team was to take the bank to another level.

Mr. Wiessing said ZANACO has built a strong foundation and has the largest rural branch and ATM network.

He said the vision of Rabobank was to build on the achievements and move towards a more customer focused organisation.

“We need to capture the market share of ZANACO as we are look for a sustained
profitability in the long term so that the bank can recapture the share it lost on the market.

The bank will in the next three months present a new business plan to indicate the future of the bank.

The managing director said the bank would also seek new opportunities of expanding
its   corporate presence in agriculture, mining and public sectors.

Mr Wiessing said ZANACO will maintain its presence in rural areas, adding the bank has a plan of expanding its branches network to cater for both urban and rural
areas.

On fears of  job losses, Mr Wiessing said the bank had no masterplan of retrenching  workers  saying the philosophy of the bank was to grow the business .

He however pointed out that there will be changes in the staff mix depending on the outcome of the new business plan.

He said Rabobank has 110 years experience in banking and is ranked 20th in the world
in asset base and equity.

“We bring to Zambia expertise in retail and agriculture gained in 110 years of banking,’ the said.

Following the partial sale, Government will now have 51 percent shares while Rabobamnk intends to sell four percent shares to the farmers out of its 49 percent shares.
ZANIS