Business

Multichoice Zambia makes $20 million divident payments

KABANDA CHULU, Lusaka
MULTICHOICE Zambia has made dividend payments of over US$20 million to Zambia National Broadcasting Corporation (ZNBC) since 2009, a latest Deloitte and Touché economic impact assessment report has revealed.

The report further reveals that the MultiChoice Group has made a contribution to Zambia’s gross domestic product (GDP) estimated to be over US$200 million between 2011 and 2015.
“Over the last six years since June 2009, total dividend payments of US$20.1 million were made to ZNBC. The dividend payments earned from MultiChoice Zambia, make up around 20-23 percent of ZNBC’s revenues,” the report notes.
The estimate of the report consists of the impacts resulting from the MultiChoice pay television group’s spend in terms of wages, taxes, and dividend payments  as well as its expenditures in the supply chain, and the ripple effects resulting from additional demand created in the economy.
During the 2014/15 financial year, MultiChoice made a direct contribution of US$35.9 million to the Zambian GDP in form of taxes, wages and profits paid into the economy.
“The majority of this impact is made up of tax payments made by MultiChoice Pay TV Group to the Zambian government, amounting to US$26.2 million in 2014/15.
“These consist of VAT payments, corporate tax and import duty payments and have more than doubled since 2011/12. MultiChoice Zambia Group also paid wages of US$5.3 million in 2014/15 to its more than 190 direct employees and contractors,” it states.
The report indicates that MultiChoice Pay TV Group has contributed to the process of digitalisation and digital switch-over through its investment in the digitalisation of broadcasting services.
“The GOtv service is provided using the digital terrestrial television network which was rolled out in partnership with ZNBC across 10 locations in Zambia with further locations planned for the near future,” it notes.
MultiChoice supplies 67 out of ZNBC’s 69 analogue transmitter sites with signal, using its satellite network to rebroadcast ZNBC’s channels to ZNBC transmission sites across the country.

 

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