ZED STYLE

  In a recent revelation by the Financial Intelligence Centre (FIC), Zambia finds itself grappling with a staggering loss of $2.8 billion attributed to illicit financial flows during the fourth quarter of 2023. The FIC's report unveils a concerning trend, highlighting 450 suspected transactions linked to tax evasion, fraud, forgery, and money laundering, primarily involving foreign nationals.  A notable observation from the report is the modus operandi employed by these illicit actors. Newly established firms, often with Zambians listed as shareholders and directors, serve as fronts while foreign nationals retain control over bank accounts. This intricate web of deception is further compounded by the frequent changing of banks by these foreign actors, a tactic aimed at evading detection. The report exposes a troubling pattern where these entities inject substantial sums in dollars into Zambia's financial system under the guise of import payments, yet there is scant evidence of...

In a recent report released by the Auditor General, it was revealed that thirteen subsidiary companies of the Industrial Development Corporation (IDC) incurred significant losses totaling over K5.6 billion in 2022, with an additional K750 million reported in 2021. These staggering figures highlight a concerning trend that demands immediate attention. The magnitude of these losses cannot be understated. The funds lost could have been allocated to crucial development projects such as the completion of schools, university hostels, lecture rooms, and health facilities within a single year. It is imperative to emphasize that these figures have been verified by the Auditor General, lending credibility to the severity of the situation. The implications of such financial mismanagement are far-reaching and unacceptable. If left unchecked, the continuation of such practices risks perpetuating a culture of impunity within IDC subsidiaries. It is imperative that the IDC board and management take s...

The much-anticipated construction of the Lusaka-Ndola dual carriageway continues to face delays in funding, sparking growing concerns among the public. Originally slated to begin in 2020, the project remains on hold, leaving many disheartened. The Road Development Agency (RDA) has revealed that the official start of the Lusaka-Ndola dual carriageway is now expected in March, marking the latest extension granted to Macro Oceans Investment Limited, the contracted entity. Back in February 2023, the New Dawn Government inked a USD 577 million concession agreement with Macro-Ocean Investment Consortium for financing, constructing, operating, and maintaining the 327-kilometer Ndola-Lusaka Dual Carriage Way, along with rehabilitating the 45-kilometer Luanshya-Fisenge Masangano Road. Anthony Mulowa, the Acting Communications Manager for RDA, expressed optimism that Macro Oceans Investment Limited would secure funding within the stipulated timeframe for project commencement. However, Mulowa cou...

The audit report covering the financial years ending on December 31st, 2021, and 2022 sheds light on the financial performance of Mpulungu Harbour Corporation Limited ( MHCL ). Owned entirely by the Industrial Development Corporation (IDC), MHCL oversees Zambia's sole water-based port, playing a pivotal role in connecting the country to a regional market encompassing the Eastern Democratic Republic of Congo, Burundi, Western Tanzania, and extending to Rwanda and South Sudan. MHCL 's primary function involves facilitating the movement of cargo imported or exported through the Lake Tanganyika Transport Corridor. This encompasses a wide array of goods including cement, sugar, coal, various construction materials, as well as perishable items like poultry and fish. The report reveals a stark decline in MHCL 's profitability, with a staggering 93% reduction from over K4 million in 2021 to approximately K363 thousand in 2022. This significant downturn is primarily attributed to a ...

The Bank of Zambia's Micro, Small, and Medium Enterprises (MSME) Finance Survey report for 2022 has shed light on a concerning trend: 97 percent of MSMEs, primarily local enterprises, struggled to secure start-up capital from commercial banks and other lending institutions. The reasons behind this staggering failure rate are multifaceted, including high-interest rates, limited tailored financial products, and a lack of collateral, among other challenges. The MSME finance survey, conducted and released by the Bank of Zambia, revealed that only 3 percent of enterprises successfully sourced start-up capital from various sources, such as commercial banks, microfinance institutions, government initiatives, NGOs, and community-based financial institutions like saving groups. This leaves the vast majority, comprising 97 percent of MSMEs, with no choice but to seek start-up capital from family and friends. MSMEs, predominantly locally owned businesses, play a crucial role in driving econom...

An Austrian online betting brand, previously acquired by Entain Plc , has made headlines by announcing its departure from the Zambian market. The company cited a change in strategy at the group level, shifting its focus to high-growth markets. Bwin, a global sports betting platform, entered the Zambian market in late November 2022, attracted by the burgeoning online betting sector in the country. However, unconfirmed reports suggest that Zambia was merely a steppingstone for the company, leveraging the market for higher returns. Despite reportedly reaping substantial profits during its two-year tenure in Zambia, Bwin is now moving to reallocate its resources to other regions. In an exclusive interview, Bwin's Country Marketing Manager, Golden Ngandu, refuted claims of leaving due to any irregularities, such as tax evasion or profiteering at the expense of Zambians. Ngandu confirmed the company's strategic decision to exit the Zambian market and emphasized that notice had been g...