British American Tobacco Zambia Plc has announced the resignation of its Chairman from the Board, according to a statement from the company.
“In accordance with Section 3.59 of the Lusaka Securities Exchange Listings Requirements (“LuSE Listings Requirements”), the Board of Directors of British American Tobacco Zambia Plc (“the Company” or “BATZ”) (the “Board”) wishes to announce the resignation of Mr. Michael Mundashi as Chairman and Non-Executive Director of the Board effective 17 June 2020. The Board would like to express appreciation to Mr. Mundashi for his valued contribution to the Company and wishes him well in his future endeavours”, read a statement issued by order of the board by Hilda Hara Phiri, the Acting Company Secretary on 26 June 2020.
Michael, who is also Board Chair of Zambeef Plc and a Director on the Sanlam Insurance and Nico General Insurance Board, is a full time Managing Partner of the law firm of Mulenga Mundashi Legal Practitioners in Lusaka.
British American Tobacco Plc. Zambia is a major distributor of cigarettes in Zambia. According to their 2019 audited financials, “the Company recorded an increase in turnover of 40% amounting to K230.6 million during the period under review compared to the K165.2 million recorded in same period in 2018”. Furthermore, “the increase in turnover was largely driven by a general volume increase across the portfolio of 32%”.
However, a challenge that Michael and his fellow Board members had to contend with, the illicit trade of cigarettes that undermined BAT Zambia’s performance. “The illicit cigarettes market continues to be a challenge for the cigarette industry”, read a statement in the 2019 audited financials. “Duty not paid cigarettes, are openly sold on the informal market, without the appropriate health warning messages or tax stamps as required by Zambian Law”.