ZANACO posts K1.8 billion profit after tax, declares over K131 million to govt as dividend

ZANACO Bank PLC has reportedly declared dividend to government for the year 2023 worth over K131.6 million.

This had been done through the Industrial Development Corporation (IDC) who are 25 percent shareholder of the Bank.

The dividend was declared as the Bank made K1.8 billion profit after tax in the 2023 financial year.

Receiving the dividend on Friday in Lusaka, Finance and National Planning Minister, Situmbeko Musokotwane, urged other Zambian companies under IDC to emulate ZANACO in declarations of dividends.

Musokotwane noted with sadness that most companies under IDC did not declare dividends but instead were always asking money from the government.

He observed that the dividend declared was an increase from over K89 million and K77 million declared in the 2022 and 2021 financial years respectively.

These had a total dividend payout of over K315.9 million over past four years.

Musokotwane said dividends played a crucial role in helping build up the fiscal space of the economy, especially in the face of low liquidity challenges that that the country was currently experiencing.

“In a time where the economy is facing various challenges, the dividends from companies like Zanaco provide much-needed support to the government’s efforts in maintaining financial stability and pursuing sustainable economic growth,” he said.

Musokotwane also revealed that there had been a new mineral discovery in North Western province.

He noted that with the good mining policies that the government was putting in place, there should be serious improvement in the economy.

Declaring the dividend, ZANACO Managing Director, Mukwandi Chibesakunda, said the Bank also recorded K1.8 billion profit after tax for the financial 2023.

Chibesakunda stated that the ZANACO would continued to declare its dividends to the government as it was one way of contributing to economic growth.

“As we gather here today to mark this occasion, it is important to reflect on Zanaco’s long-standing commitment to Zambia, our home.

“Our commitment to Zambia has been through declaration of dividends like we are doing now, being responsible tax payers and creating jobs and business opportunities for many and we believe this is key in contributing to Zambia becoming a middle-income country by 2030,” Chibesakunda said.

She said the Bank remained committed to serving its four million customers and the people of Zambia at large, to unleash Zambia’s economic potential.

Meanwhile, IDC Chief Finance Officer, Raphael Chipoma, commended ZANACO for posting a growth of about 49 percent in the year 2023.

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