Industrial Development Corporation (IDC) has urged group companies to partner and avoid out sourcing goods and services that can be provided and obtained by companies in the group.

Speaking when Zambia Railway Limited and Zamtel signed a memorandum of understanding in Lusaka, Corporation Chief Executive Officer Mateyo Kaluba said the continued importation and out sourcing of goods and services by group companies has contributed to the deprecation of the Kwacha.

“One of the worst observations we have made is that there is very little business among the group companies, if anything most of the companies have added to the fluctuating of the Kwacha by constantly seeking to import goods and services” He said.   

Mr Kaluba said the partnership between Zambia Railways limited and Zamtel will result in the profitability of the two entities.
He added that the formation of partnerships by group companies has been the desire of the corporation knowing that there has been very little business engagement among the 34 companies in the group.
And speaking earlier Zamtel Chief Executive Officer Sydney Mupeta said Zamtel will support Zambia Railways Limited with the much needed digital equipment to improve its operationalization.
Mr. Mupeta says Zamtel will provide digital solutions to Zambia Railway so that the company can improve its efficiency in the provision of goods and services.

“The mou we are signing today is the beginning of Zamtel and Zambia Railways Limited that will address all the communication needs that will culminate into integrated communication solutions that will ran along the line of rail from Chililabombwe to Livingstone” Mr Mupeta explained.   

Meanwhile Zambia Railways Limited Company Chief Executive Officer Christopher Musonda says the desire to engage Zamtel is motivated by the need for Zambia Railways to embrace a Digital Revolution referred to as the 4th Industrial Revolution where technology has become the main drive of business.
“The signing of the MOU is particularly important to Zambia Railways as we embark on the recapitalization and modernization of our railway infrastructure and operations “Mr Musonda said.