Finance minister hails IZB
BY ADRIAN MWANZA
We want other Government investments (Parastatals) to emulate Indo Zambia Bank (IZB) by expanding strategically and making profits so that we could meet our job-creation and social sector expenditure needs, says Finance Minister Situmbeko Musokotwane.
Mr Musokotwane applauded the Bank’s governance structure and added that their modus-operandi had been an effective instrument in enabling the institution to favourably compete in the financial market.
He told Indo-Zambia Bank Chairman Dr Michael Gondwe and his delegation during a bilateral meeting held at the Ministry Headquarter in Lusaka that the Bank was one of the greatest Government investment stories because the institution had been growing and positing profits consistently, for many years.
The Minister seized the opportunity to request Indo-Zambia Bank and other key players in the economy to initiate international investment promotion programmes, to help market the country’s investment prospects to the global community.
Dr Musokotwane explained to the Indo-Zambia delegation that Government was in a hurry to deal with constraints to private sector investment and growth in order to elevate the economy to higher levels of growth and prosperity.
‘’In the last five years, Indo-Zambia Bank has paid over K235 million in dividends (through IDC), and K1 billion in taxes. The Industrial Development Corporation, on behalf of the Government, holds 40% shares in Indo-Zambia Bank while the remaining 60% shares are held by three Indian Banks, namely Bank of Baroda, Bank of India and Central Bank of India; with 20% each,’’ he said.
The Minister assured the Indo-Zambia delegation of Government’s open door-policy.
He also listed the key areas of focus as export-oriented agriculture, agro-processing, manufacturing, mineral-value-addition, and tourism, among others.
And IZB chairperson Dr Michael Gondwe acknowledged the country’s economic challenges but stated that the transformative nature of the 2022 National Budget had set-out the roadmap for economic rebound, clearly.
Dr Gondwe pledged the readiness of Indo-Zambia’s Joint Venture Partners, Board, Management and Staff, to collaborate with the Government and ensure that the Bank aligned its strategy with the priorities set in the 2022 National Budget.
“We, thus, humbly recommend that steps be taken to urgently interrogate and assess the current capacity of the nation’s financial sector to adequately resonate with the requirements of the budget,” he said.
And Bank’s Managing Director Kowadichah Shashidar outlined the performance of the Bank over the last five years.
He stated that the Bank posted a 340% growth in total assets from K2.9 billion in 2016 to K10 billion in 2020; 301% growth rate in the total business i.e. from K3.08 billion to K9.27 billion;163% growth in the Bank’s total equity i.e. from K0.70 billion to K1.14 billion. Over the same period, the operating profit of the Bank has grown by 360% from K129 million to K465 million. Net Profit has grown by 253% from K83 million to K210 million.