Home

Fri,22Feb2019

Posted on Friday, 12 November 2010 00:00

Country Profile: ZAMBIA


This country profile was published in November 2010 in our annual 'Africa in 2012' issue. The next edition, 'Africa in 2011' will be on sale in November 2011.

Country Profile

Top Zambian Companies

Top Zambian Banks


As copper exports and agricultural output have soared, Zambia enters an election year with the ruling Movement for Multiparty Democracy (MMD) able to boast of improved economic prospects. But it is far from clear how Zambians will view the MMD’s political standing by the time elections are held in the last quarter of 2011, especially if a coalition of opposition parties manages to hold together.?The electoral pact between the Patriotic Front (PF) and the United Party for National Development (UPND) could beat the MMD in the presidential and parliamentary polls.


zambiaCombined, the two parties got just under 60% of the vote in the 2008 presidential election, although the MMD’s Rupiah Banda squeaked in above the PF’s Michael Sata. But the pact’s longevity depends on personalities. This will be Sata’s last shot at the presidency, and although some in the PF want him to run on his own, it would be risky.


Voices in the UPND have also called on their own Hakainde Hichilema to stand. If the parties are to overcome entrenched rivalries and field a joint candidate, they will need to work hard to design an electoral programme that satisfies all their supporters. ?This will be not be a high-tech, new-look election.


Despite three years of debate by the National Constitutional Conference, hopes that a referendum on a new constitution could be held before the poll have fallen flat. There is not enough money for both. Debate remains over whether some changes under discussion could be introduced instead by parliamentary amendments – for example, on whether the president should be elected with a 50% + 1 vote mandate rather than a simple majority or whether ministers should be appointed from within or without parliament.


Opposition parties are opposed to rushing through such changes.? Another significant factor to watch in the lead-up to the elections is the government’s attitude towards former President Frederick Chiluba, who has so far escaped conviction for corruption charges. Chiluba was angry when the late Levy Mwanawasa pursued the corruption charges, and this led him to support Sata in the 2006 general elections, helping the opposition win votes in the northern provinces.


Now back in the MMD fold, Chiluba could be useful for the party in these areas and in the Copperbelt, which hosts many migrant workers from the north. The key swing province is Northwestern, where the MMD will probably need to win to stay in power.?President Banda has become more defiant in the face of international criticism of his anti-corruption record.


He denied involvement when the government decided not to appeal a Zambian High Court ruling in August dismissing a British court order for Chiluba to repay $46m stolen during his tenure. Relations with Western donors, particularly Sweden and the Netherlands, have become cooler as concerns over corruption have mounted. The Global Fund to Fight AIDS, Tuberculosis and Malaria has frozen $118m in health grants since August 2009, and the EU has put $28m for road building on hold.


In October 2010, Finance Minister Situmbeko Musokotwane confirmed a reduced reliance on foreign aid when he revealed that 83% of the 2011 budget would be financed through domestic revenue and borrowing.?On the back of 6.6% real GDP growth in 2010, Musokotwane projects growth of 6.4% in 2011. Consistently high copper prices throughout 2010 and no sign of a let-up in demand have pushed production to its highest level in four decades, with output predicted at over 720,000tn in 2010, bringing in export earnings of $4.6bn, up from $3.2bn in 2009.


The target is now for 1m tonnes a year. ?During a visit to Beijing in May, Banda received assurances of $5bn in Chinese loans to mining companies, reinforcing China’s centrality to the sector’s future. China Nonferrous Metals Company (CNMC), which runs the Luanshya copper mine and Chambishi smelter, plans to invest $600m in 2010 and 2011.


It was CNMC that rescued Luanshya, buying an 85% stake for $50m in June 2009 after production was suspended following the post-crisis fall in demand. ?Debate still rages over the decision in March 2009 to withdraw a 25% mining windfall tax that the government introduced during the price boom of 2008. However, there are no signs that it will be reintroduced.


Criticisms have lingered that other tax changes in 2008 – such as the increase in mineral royalty tax from 0.6% to 3% – did not go far enough. Even the opposition PF is calling on the government to restore more generous mining terms for foreign firms. As Copperbelt Province is a PF stronghold, any job losses caused by exiting investors are politically unpalatable.


In October, Sata was again quick to score political points when 12 coal miners were shot and injured by their Chinese manager, exacerbating anti-Chinese sentiment. ?A bumper maize harvest of 2.8m tonnes, Zambia’s biggest ever, should boost consumer demand. The government points to the $100m it spent on improving extension services and providing affordable fertilisers and seeds to farmers, a programme that it intends to increase in 2011.


?Zambians had to adjust to a 25.6% hike in electricity prices in April to help the state-run Zambia Electricity Supply Corporation (Zesco) fund new investment. Work on the 600MW Kafue Gorge Lower hydropower project between Zesco and China’s Sinohydro is expected to begin in mid-2011, but it will not be ready until 2016. ?Food-price inflation stood at 2.8% in September 2010, down from 8% in December 2009, but higher electricity and fuel prices have kept up inflationary pressures.


Still, the government is optimistic that it will reach its target of 8% inflation by the end of 2010. The kwacha is likely to strengthen on the back of copper prices, though this will hurt other exporters. ?The country’s financial sector has grown.


Market capitalisation of the ­Lusaka Stock Exchange rose by 23% in the first nine months of 2010. Zambia’s banks have also managed to stabilise their non-performing loans, but high lending rates – at 26.8% in September 2010 – remain prohibitive for smaller businesses. ?Half the government’s 2011 budget will be spent on the social sector and infrastructure.


Education projects will receive 18.6% of the total and will target the recruitment of 5,000 new teachers. Renewed efforts are being made to improve rail links with Zambia’s neighbours. Discussions have begun with Angola to build a line passing through Northwestern Province to the Copperbelt.?


Telecoms will receive a much-needed boost in 2011. Plans by operators to invest in a fibre-optic backbone in 2011 will boost connectivity. In June, the government sold 75% of ailing telecoms para-statal Zamtel to Libyan firm LAP Green for $257m.


Opposition and civil society groups questioned the role of an advisory firm that helped establish Zamtel’s valuation, and the issue could rumble on into 2011. A round of job losses following the privatisation also caused political headaches.? Next on the privatisation list are the state media. The government owns one TV station and two newspapers and has been busy courting African media groups to buy up one of its print editions  





Zambia's Top Companies

Rank 2010
The Afrique report
TOP 500 companies the africa report
Rank 2009
TOP 500 companies
The Afrique report
Company name

Country

Sector

TOP 500 companies egypt
Turnover (Thds $)
TOP 500 companies tunisia
Turnover change
Net profits

315 363 HIDROELECTRICA DE CAHORA BASSAMOZAMBIQUE WATER, ELECTRICITY 313 745 22,08% -55
324 286 ZAIN ZAMBIAZAMBIA TELECOMS 300 100 -15,18% 53
343 335 MCEL MOCAMBIQUE*MOZAMBIQUE TELECOMS 281 385 ND 0
404 336 PETROLEOS DE MOCAMBIQUEMOZAMBIQUE PETROLEUM SERVICES 226 846 -19,14% 190
443 - ZAMBIA SUGARZAMBIA AGRIBUSINESS 197 929 85,86% 35
451 468 CERVEJAS DE MOCAMBIQUEMOZAMBIQUE BEVERAGES 192 708 11,95% 0

 

2009 RESULTS IN THOUSANDS OF DOLLARS - *IN ITALICS 2008 RESULTS - ND: NO DATA


Taken from the Top 500 Companies



Zambia's Top Banks


Rank 2010
The Afrique report
TOP 500 companies the africa report
Rank 2009
TOP 500 companies
The Afrique report
Company name

Country

TOTAL ASSETS
TOP 500 companies egypt
NET EARNINGS
TOP 500 companies
CREDIT

TOP 500 companies tunisia
DEPOSITS

133 130 BARCLAYS BANK OF ZAMBIA*ZAMBIA 926 261 101 077 548 665 450 611
157 159 ZAMBIA NATIONAL COMMERCIAL BANKZAMBIA 638 286 104 300 244 138 482 160
194 191 STANBIC BANK ZAMBIA*ZAMBIA 396 164 58 538 280 347 344 257

 

FIGURES FOR 2009. US$ THOUSANDS. *2008 FIGURES.

 

 Taken from the Top 200 Banks


Back to top

 


 




Subscriptions Digital EditionSubscriptions PrintEdition

FRONTLINE

NEWS

POLITICS

HEALTH

SPORTS

BUSINESS

SOCIETY

COLUMNISTS

Music & Film

SOAPBOX

Newsletters

Keep up to date with the latest from our network :

subscribe2

Connect with us