The only listed metal fabricator company on the Lusaka Securities and Exchange has unveiled a ‘recently available executive’ following his departure from ZAFFICO, as the next CEO of the company.
“Pursuant to section 3.59 of the LuSE Listing Requirements, the Board of Directors of Metal Fabricators of Zambia PLC (“the Board” or “Zamefa”) wishes to announce the appointment of Mr Kangwa David Bwalya, B.Acc; MBA; FCCA; FZICA as Managing Director of the company with effect from 14 September 2021”, read a statement issued by Company Secretaries BDO Zambia Limited on 20 September 2021.
Kangwa, who until recently was CEO of listed timber processing company ZAFFICO, takes over from Rosetta Chabala as the confirmed Chief Executive. Johann du Plessis looked after the metal seat following Rosetta’s departure and the Board are thankful to him for his services. “The Board would like to thank Mr Johann du Plessis for acting as the Managing Director of the company during the last couple of months”.
Taking over ZAMEFA will be like going home for Bwalya as he has worked there before. “Mr Bwalya is a chartered certified accountant (UK and Zambia) with vast experience in the cable, mining and timber industries. He worked previously for ZAMEFA PLC in various senior leadership positions as Company Secretary, Chief Financial Officer and Acting Managing Director. He then joined Rio Tinto as Business Development Manager – Copper where after he worked for General Cable Corporation as Chief Financial Officer – Asia Pacific. Most recently Mr Bwalya was the Managing Director of Zambia Forestry and Forest Industries Corporation PLC.”
CEO Kangwa now takes over a company that has experienced a few of challenges over the last couple of financial quarters that have seen its performance record negative earnings despite subtle improvements.
According to ZAMEMA’s last trading statement on May 21st this year, “for the six-month period ended 31 March 2021 the loss per share (“LPS”) for the Group and the Company improved by 93% from the LPS achieved in the corresponding period of the prior year”.
The company has been able increase sales that has held to reduce the financial impact. “The improvement in the LPS is primarily due to the increase in volumes sold during the reporting period compared to the corresponding period in the prior year when limited copper cathode was available in Zambia”.
The company has also implemented a number of other performance improvement mechanisms on tax and loan obligations. “In addition, the significant reduction in the overdue amounts due by the Zambia Revenue Authority (“ZRA”) at the end of the previous financial, and the restructuring of the shareholders’ loan into an equity loan in August 2020, reduced the Group’s USD based liabilities”.
Macro factors have also played a role but to a moderate extent due to its export portfolio which, in Rosetta’s era, offered the company relief in years when the currency was at its most volatile. “As a result, the effect of the ongoing weakening of the kwacha against the United States dollar (“USD”) had a smaller negative effect in the reporting period than in the corresponding period of the prior year”.