Message Mar 19 Mai 2015 14:43

Govt to sell 27% ZCCM-IH shares

Finance Minister Alexander Chikwanda says government will be off loading 27 percent shares of ZCCM-IH to citizens and institutions as it reduces its 87 percent shareholding.

Mr Chikwanda says this is part of entrenching economic independence of Zambians.

The Minister also urged companies struggling to raise funds for expansion to utilize the opportunities available on the Capital Markets for long term financing.

And Mr Chikwanda says government will use the Industrial Development Corporation -IDC- to promote economic development.

He says the IDC will also be used to spearhead the raising of funds from the Capital Markets as a way of reducing dependency on government financing.

Mr Chikwanda says this will help grow the Capital Markets and also empower many Zambians to own part of the State Owned enterprises through share ownership.

Launching the “Let’s Talk Capital Markets Campaign” by the Securities and Exchange Commission -SEC- in Lusaka on Tuesday, Mr. Chikwanda said the awareness will help Zambians participate in the capital markets that widen wealth ownership.

And SEC Chairman Chintu Mulendema said the offloading of shares by government in ZCCM-IH is a vote of confidence in the Capital Markets.

Meanwhile, SEC Chief Executive Officer Philip Chitalu said his institution has not achieved its objectives because of challenges such as few number of securities listed, lack of awareness and low liquidity levels.

Mr CHITALU said statistics by the Fincope Survey of 2009 indicate that only 2 percent are participating in the capital markets.