(4 minutes read)
· The National Pension Scheme Authority (NAPSA) has effectively taken control of Zambia Industrial Commercial Bank (ZICB)
· NAPSA has upped its stake in the latter (ZICB) from 16% to a whopping 65%, virtually controlling operations of the bank
· ZICB was set up as a specialty bank to fund industrialization of Zambia
· But many feel that the bank still not achieved its objective since funding for local industries and local business still remain a challenge in the southern African country
The National Pension Scheme Authority (NAPSA) has effectively taken control of Zambia Industrial Commercial Bank (ZICB). NAPSA has upped its stake in the latter (ZICB) from 16% to a whopping 65%, virtually controlling operations of the bank.
ZICB was earlier known as Inter-market Banking Corporation Zambia Limited. The Bank of Zambia took possession of it in November 2016, ostensibly to save it from a total collapse. In 2018, the Bank of Zambia managed to secure agreements with the majority of the large corporate depositors, i.e. National Pension Scheme Authority (NAPSA), the Madison Group and the Workers Compensation Fund Control Board to convert their deposit liabilities into equity. The Industrial Development Corporation (IDC) came on board to participate in the process to ensure solvency of the institution.
NAPSA has increased its stake following participation in a Rights Issue at a nominal price of K1 per share. It has obtained the requisite regulatory approvals for the acquisition. The capital raised by ZICB through this transaction would strengthen its capital position and improve its cash flows. A spokesperson for NAPSA said that through its Special Purpose Vehicle,- NAPSA Investments Holdings Company Limited- it has increased its stake in ZICB from 15.83% to 63%. The capital injection was aimed at building capacity for market competitiveness, achieving operational efficiencies and realigning the strategic direction of the bank to facilitate growth in the Small and Medium Enterprises (SME) sector in the country.
ZICB was set up as a specialty bank to fund industrialization of Zambia. But many feel that the bank still not achieved its objective since funding for local industries and local business still remain a challenge in the southern African country.
