Minister of Finance Dr Bwalya Ng’andu has said that the listing of Zambia Forestry and Forest Industries Corporation (ZAFFICO) signifies governments focus on making state-owned enterprises effective conduits of economic growth through the diversification of the shareholder base.
Dr Ng’andu said the listing of ZAFFICO represents a statement of government’s expectations through the Industrial Development Corporation (IDC).
He added that the government seeks to develop the overall financial sector by supporting the growth of domestic capital markets as a formidable alternative to conventional sources of financing.
I am indeed elated at this development of the listing of ZAFFICO as it has contributed to the supply of stock of the Lusaka Securities Exchange (LuSe) and presents an opportunity for domestic retail and industrial investors to diversify their portfolios.Said Dr Ng’andu.
I recognise the importance of LuSe in driving domestic mobilisation of savings which compliment governments efforts in channelling resources to productive sectors of the economy.
Dr Ng’andu said the listing will further enable the corporation to mobilise significant financial resources that are earmarked for value addition and acceleration of a national wide plantation programme.
He disclosed that the programme will help create over 20, 000 employment opportunities for Zambians as well as support rural development and stimulate ancillary economic activities.
He implored IDC to create innovative ways in which to leverage the domestic capital markets anchored on the transformation interventions of public enterprises.
And IDC Group chief executive officer Mateyo Kaluba said the capital raised from the IPO will be channelled to new forest plantations across the country.
ZAFFICO raised almost k300 million from the Initial Public Offer (IPO).