ZSIC Life's Prolonged Silence: A Closer Look at Delayed LuSE Listing Plans

ZSIC Life appears to have veered away from its initial plans and disregarded a standing government directive to go public on the Lusaka Securities Exchange (LuSE). Despite approximately four years having elapsed since the announcement and government directive outlined in the 2019 national budget, the life insurer has chosen to remain tight-lipped about its intended listing date, showcasing a lack of transparency.

Contrary to its peer, ZAFFICO, which successfully listed after being announced simultaneously, ZSIC Life has yet to make its debut on the LuSE. The four-year timeline since the initial announcement raises questions about the extended period it has taken for the company to fulfill this commitment. Efforts by the Zambian Business Times (ZBT) to obtain confirmation from ZSIC Life regarding the progress of its listing process proved fruitless by the time of press.

Despite a press query from ZBT, indications from ZSIC Life suggest that a new board has been appointed, and any response will only be forthcoming after they have settled in. However, analysts speculate that the considerable time elapsed may imply the abandonment of the listing altogether.

According to a ZBT report on July 30, 2020, the government had announced in 2019 that both ZAFFICO and ZSIC Life would be listed on LuSE to enable state-owned companies to raise additional capital for investment and reap the benefits associated with listing, including enhanced corporate governance and best business practices.

The Industrial Development Corporation (IDC), ZSIC Life's holding company, had initially confirmed plans to list ZSIC Life on LuSE in the same year, as reported by ZBT on August 18, 2020. IDC's public relations officer, Namakau Mukelebai, stated in an exclusive interview that this action was part of IDC's broader strategic intent to position ZSIC Life for wider public participation, with the medium-term goal of listing on the LuSE main board.

Mukelebai acknowledged delays due to COVID-19-related travel restrictions but emphasized IDC's commitment to listing ZSIC Life on LuSE when market conditions permit. This aligns with IDC's strategic vision of encouraging broader public participation in the shareholding of profitable public enterprises and supporting the growth of domestic capital markets by providing quality listings.

In 2021, ZSIC Life postponed its Initial Public Offering (IPO) listing of shares on LuSE to the subsequent year, 2022. Now, at the close of 2023, the insurance company has yet to disclose any specific plans or timelines for its listing on the local bourse.

For companies, especially those facing financial challenges or breaking even, listing on LuSE is deemed crucial. It serves as a key mechanism for ensuring accountability and efficiency in State-Owned Enterprises (SOEs) and promotes high standards of corporate governance, contributing to improved financial performance.