British American Tobacco, StrategyDecember 15, 2017

The Forces of Competition in Zambia’s Tobacco Industry
When the announcements came from Roland Imperial Tobacco (RIT) and British America Tobacco (BAT) of their USD80 million and USD15 million (respectively) investments in setting up their local cigarette manufacturing plants in Lusaka South Multi-Facility Zone, we could not help but wonder about some of the competitive forces in Zambia’s tobacco industry. Recap. In 2016 […]

Agriculture, British American TobaccoOctober 3, 2017

BAT Re-positions, with cash in mind
When news of the BAT extra ordinary meeting (EGM) reached our desks through SENS announcement of 29th September, we were worried that the firm had finally given up and was now considering exit (following recent statements from the firm following their impending loss in excess of K100million, you cannot blame us). However, much to our […]

British American Tobacco, StrategySeptember 18, 2017

BAT Zambia headed to a new Nash equilibrium
BAT Zambia’s competitive landscape indicates that the firm is currently in a battle with other established players for 70% of a “legal” market. The other 30% currently belongs to illicit cigarette traders. Annual report after annual report has seen their Chairman Michael Mundashi consistently complain about the unwelcome competitive forces of illicit cigarettes. When assessing […]

Agriculture, British American TobaccoSeptember 18, 2017

Tobacco in peril in Zambia
The Tobacco value chain in Zambia is in peril. Last week, the CEO of BAT Zambia Godfrey Machanzi stated that the company had recorded a K100m loss in what has now becoming a downward trend in their performance. He indicates that the continued existence of the competitive force of illicit cigarettes has continuously and consistently […]

British American Tobacco, FinanceApril 3, 2017

BAT Zambia – War against illicit trade
In 2016, Michael Mundashi’s board ushered in a new managing director in Godfrey Machanzi (an engineer turned MBA) and finance director Nigel Curran both legacy employees of the tobacco giant (24 years of combined years of service to date). Michael cites bearish 3% GDP growth, slump in global commodity prices, low energy generation in the […]