KABANDA CHULU, Lusaka
INDUSTRIAL Development Corporation (IDC) Group chief executive officer Mateyo Kaluba (left) says most state-owned enterprises (SoEs) are capable of generating profits and declare dividends to shareholders if efficient control systems are implemented in their respective operations.
In an interview, Mr Kaluba said IDC has been undertaking recapitalisation and structural reforms on selected companies that were mentioned in the budget speech by the Minister of Finance.
“Following the ongoing situational analysis, there is a realisation that most of these SoEs are capable of performing better but they lack efficient control systems.
“For example, Zamtel was in trouble but through internalising of reforms, there is a significant turnaround with subscriber base and revenue increasing. With more investment in technology [4G upgrade], Zamtel will become a profitable and active player in the telecommunications sector,” he said.
Mr Kaluba said Zesco is focusing on restructuring of the balance sheet and resolving of bad loans.
“This company needs to be profitable and with a migration towards cost-reflective tariffs, we will soon see a turnaround, especially if continued investments in technology are sustained and the board and management implement reforms to ensure efficient operations and undertaking of good business decisions,” he said.
On Zambia Forestry and Forests Industries Corporation (ZAFFICO), Mr Kaluba said the company is profitable and earmarked for listing in the next two years at Lusaka Securities Exchange.
“The focus for now is to expand new plantations in Muchinga and Luapula provinces,” he said.
Government has placed the remaining 34 SoEs under the supervision of IDC.
It is expected that companies will be restructured and transformed into profitable entities that should be able to declare dividends to shareholders and eventual listing of shares at LuSE.
Since the inception of the IDC in 2014, only ZAFFICO and Nanga Farms Plc have declared dividends to shareholders.