By 
The Zambia Forestry and Forest Industries Corporation (ZAFFICO) must diversify into processed wood and wood products which will favourably compete on the market.
This is a challenge that has been given to new board for ZAFFICO unveiled on Wednesday by the Industrial Development Corporation (IDC).
According to the IDC acting group Chief Executive Officer Henry Sakala, this would help cut the cost of imports of finished wood products into Zambia and save foreign exchange.
Sakala said the shareholders had carefully selected the new ZAFFICO board of directors to ensure it delivered company’s mandate.
“With the vast plantations under ZAFFICO, the IDC expects ZAFFICO to participate in other areas of the forestry value chain by diversifying into processed wood and wood products which would compete on the market favourably.
“On the pole treatment plant, IDC is happy that ZAFFICO clinched a supply contract with Zesco Limited but it is common knowledge that ZAFFICO cannot satisfy the demand for treated poles. Therefore, IDC expects that the board and management will move promptly to expand the capacity of the treatment plant,” he said.
Read more: Provincial leader, Mwenda, raises the alarm over deforestation
Sakala also said the group expected the board to transform the company because it had enough room to grow.
“I know every expansion requires money. But with the establishment of the Ministry of Green Economy by Government, this has opened the gate wider to access funds relating to green projects, and ZAFFICO is sitting in the right place right now,” Sakala said.
He said the as per the strategic plan, IDC expected that ZAFFICO would implement the expansion of plantations into all the provinces, especially where there were no forests as a National Asset.
Sakala explained that this would ensure the company’s long term sustainability, job creation and industrialisation.
He called on the firm to also develop early maturing tree varieties so that the average maturity profile was reduced to competitive levels of around 6 to 10 years as opposed to the current 25 to 30 years.
On the enumeration of forest inventories, Sakala said the previous board embarked on an exercise to undertake a comprehensive enumeration of the plantation stock.
He said in this regard, IDC expects the new board to ensure that this exercise is expeditiously completed and the recommendations implemented accordingly.
Sakala said it is further expected that with the completion of the enumeration exercise, the board will embark on an aggressive expansion of plantation in both existing areas and new provinces to ensure sustainability of supply of product on the market and future exports.
He said the group would also like to see ZAFFICO with Title Deeds in all its plantations.
This is because these are assets for the company and should therefore be secured.
Sakala said the new board is also expected to take tough discussions in driving the company to prosperity.
“I would urge you to constantly ensure that you do not lose sight of those good tenets of corporate governance to ensure that you positively contribute towards the sustainable transformation of ZAFFICO Plc,” he said.
Sakala said IDC will agree and sign a Performance Management Contract with your board and monitor performance on a quarterly basis.
And the newly unveiled board chairperson Alvert N’gandu said the board would endeavour to build on the successes of its predecessor and ensure that ZAFFICO continues to maximise shareholder return by sustainably enhancing the profitably of the corporation while continuing to declare dividends.
N’gandu looked forward to tenure of continued progress and growth of ZAFFICO.
“I only ask that we perform our duties to the best of our abilities through tireless effort, dedication, and commitment to the task before us. This is a call to service, and I am confident that we shall rise to the challenge.
“On behalf of the members of the Board, I wish to sincerely thank the IDC Board for entrusting us with the onerous responsibility to steer ZAFFICO to the next three years. We are humbled and honoured by the confidence that you have shown in us as exemplified by giving us the opportunity to serve the nation in this very important assignment,” N’gandu said.
Comments