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 […]

Mining, ZCCM-Investment Holdings PlcMarch 26, 2017

ZCCM-IH Getting bigger
ZCCM-IH’s 2014-2015 financials make for interesting reading. The company embarked on investments over the last two years that when consolidated into the accounts led to major impairments being declared in the financials. As a result, the consolidated group’s operating expenses were swollen due to administrative costs caused by impairments from its takeovers. Other external macro [&hell

FinanceMarch 26, 2017

Corporate Governance could be the key in boasting confidence in Zambia’s Stock Exchange
Ignore Corporate Governance at your companies peril After assessing 5 of the most admired companies on the Lusaka Stock Exchange (LSE), I believe it is prudent to provide a few enlightening comments regarding Corporate Governance. Firm value is of utmost importance when investors are looking at placing a bet on a company. However, one of […]

FinanceMarch 26, 2017

When did debt become a bad thing?
When a Zambian entrepreneur decides to take his big idea to the next level, he/she is often faced with the challenge of finding finance. Usually this is coupled with having a belief system that is in two dimensions: First being, do you believe in the idea? The second being are you able to convince other […]

Finance, Insurance, Madison Financial Services PlcMarch 26, 2017

Madison Financial Services – A class act in the art of diversification
The Madison Financial Services Group has come a long way from the glory days of the ambitious Greek supremo Andrew Sardanis (Founder of Madison). They were the first to market with an insurance offering post 1992. With shareholder interests being managed by Lawrence Sikutwa & Associates, the 2004 increase in shareholding to 100% in Madison Insurance set […]

Finance, Zambeef Products PlcMarch 9, 2017

ZAMBEEF – Going Bold with a Cleaner Balance Sheet
Zambeef’s 2016 annual report is aptly titled “A bold retail strategy for African growth”. This places some distance between this statement and their original mantra and company logo of “Feeding the Nation” (Zambia at the time). But why did they become so bold? Through vertical integration. As their profile states, they have been able to […]

FinanceMarch 9, 2017

Executive Pay in Premier Companies: Paradox of Performance and Remuneration
It is somewhat culturally acceptable in Zambia not to discuss executive pay. A study of the real reason why this is so has not been conducted recently therefore it is difficult to pin down the reason why it is not an issue. We are not advocating for it to be one. No! However, we cognizant […]

Finance, ZAMEFA PlcMarch 9, 2017

ZAMEFA – Looking East For Value
The electrical cable company has been in transition over the last 6 months. General Cable, its former parent company successfully offloaded 75.4% shares to Reunert International Investments (Mauritius) Limited (listed on the Johannesburg Stock Exchange). According to their Managing Director, Rosetta M Chabala, this was a significant turning point for the company in 2016. She […]


Copperbelt Energy Corporation Plc, Energy, FinanceMarch 9, 2017

CEC PLC – Not so Impaired Value
From the moment we published “CEC’s quest for Naira destroying value in the medium term” last year, we knew that the 2016 CEC PLC annual report would be an exciting read. Investors in CEC would be anxious to see how their company performed in 2016. In his statement to shareholders, Chairman Hanson Sindowe acknowledged the […]

FinanceMarch 9, 2017

AEL Zambia Limited – Dynamite comes in reduced packages.
We have been waiting with baited breath for our first company analysis for 2017. The financials for AEL dropped on our desk and we knew it had interesting insights on the performance of this explosives company that services the mines. Although the annual report is not yet out (we used audit financial results for 2016 […]