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ZYAFAC urges parastatal companies to be profitable

The Zambia Youths Association in the fight Against Corruption (ZYAFAC) has urged parastatal companies to emulate ZCCM-Investment Holdings in making profits and declare dividend to shareholders.
ZYAFAC Executive Director Maurice Malambo tells Money FM News that the 16 percent increase in profits recorded by ZCCM-IH is commendable and that it should continue on this path.
Mr. Malambo says these state owned enterprises should be making profits for the state and not drain the treasury.
He also notes that it is encouraging that ZCCM-IH in 2017 recorded a profit of K729 million before recording a K843 million in 2018.
He said this is good for the economy.
Mr. Malambo added that there is need to restructure some institutions so that they start operating on a profit.
“ZAFFICO on the other hand is profitable, however, it is undercapitalized in terms of its size or scale of operation in views of the size or demand of the local market and sub-region hence the need to increase its capital base by listing on the stock exchange or by identifying an equity partner in the form of Public Private Partnership arrangement,” said Mr. Malambo.
He said even other state owned enterprises such as Kafue Textiles Zambia, Nitrogen Chemicals of Zambia, Mulungushi Textiles of Zambia and others should be listed on LuSE or find an equity partners to make them viable.

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