AgricultureSeptember 8, 2017

ZAMPALM: The prodigal son that never was
The story of biological assets can often be a long one for premier companies. We trailed the history of ZAMBEEF’s prodigal child who was recently sold to IDC. The story dates back to the epilogue of the last decade. According to the 2009 Annual Report, Zambeef secured a US25m term loan from DEG in order […]

Agriculture, Strategy, Zambeef Products PlcSeptember 7, 2017

Zambeef loses taste for oil
When the news hit our desk that Zambeef was to sell a 90% stake in Zampalm, its oil producing wing, we asked the question why? Although there were indications that the division was loss making in the recent results, looking at the capacity and potential the division had, it was surprising that the company had […]

AgricultureSeptember 7, 2017

IDC Bites Big in Move for Palm Oil
IDC’s recent acquisition of Zampalm makes interesting analysis. But before we get into the mechanics of the deal, a reminder on who IDC are is required. They are the investment holding company for Zambia’s State-Owned Enterprises (SOEs). The one of the duties of IDC is to ensure all new investments that ultimately generate earnings are able […]

Agriculture, MiningAugust 29, 2017

Competitive Forces:  How ZNFU and Mopani make a classic Porters Model
Warren Buffet once said that “anything that can’t go on forever will end”. This is true for businesses that over time face the economic reality of buyer and supplier forces that are external and exert pressure on the firm’s ability to sustain profits. We have been following closely the debacle at the firms ZNFU and […]

Agriculture, Zambia Sugar PlcAugust 3, 2017

ZamSugar: The Anatomy of a “PAAR” Deal
In their 2016 Annual Report (AR), ZamSugar (of the Illovo fame) reported commencement of an important project that would turnaround the fortunes of the company. The Product Alignment and Refinery (PAAR) project was the company’s signal to the market that they intended to reinforce their resources and enhance their capabilities. However, for a project of […]

Strategy, Zambia Sugar PlcAugust 2, 2017

Why Zambian Premier Companies Need Core Competences to Survive
There are companies on the Lusaka Stock Exchange that continue to generate increased revenue year on year. Of those companies, the manufacturing and vertically integrated companies have been the most impressive. Few have speculated that size does matter hence why these companies continue to produce increasing revenue records amidst challenging macro conditions that have been […]

Agriculture, Zambia Sugar PlcJuly 30, 2017

Zambia Sugar 2017 Annual Review – Refocused and Sweetly Re-energized
Sugar production worldwide in 2014/2015, by region (in million metric tons), ranked Africa 6th globally behind the titans of Asia, South America, Europe, North and Central America and the EU. Producing 11.98 million metric tons, according to Statista.com, it is clear that Africa which ranks second in global population by continent provides scale for sugar producers […]

Agriculture, Retail, Zambeef Products PlcJune 11, 2017

ZAMBEEF – 2017 HALF YEAR REVIEW
In the first week of June 2017, Zambeef published its half year results. Shareholders were keen to see how the company had performed post the publication of its 2016 annual report. We reviewed the 2016 annual report and were keen to assess how the company was doing in the first 6 months. Its chairman, Dr. […]

Agriculture, Marketing, RetailApril 28, 2017

Chickens in Market Research
Many companies in Zambia often miss the opportunities that market research gives. Some even convince themselves that it’s either unnecessary or too expensive to undertake. They would rather take their chances in the market. However, those that do make the decision to actually use market research will find themselves only tapping into a fraction of […]

Retail, Zambia Sugar PlcApril 27, 2017

Zambia Sugar at PAAR with Value in 2016
There was little sweetness in the ZamSugar board chairman’s statement that after 20 years of paying consistent dividends, shareholders would not be receiving a dividend for the company’s 2016 performance. Fidelis Banda, its chairman, had forewarned investors in the company that 2016 would pose different challenges ranging from power interruptions to irrigation issues,force majeure situations