The Industrial Development Corporation has commenced a restructure of Zambia’s state owned newspaper printing company the Times Printpak Zambia Ltd. In a press statement released on the IDCs website on 28 December, Times Printpak Zambia board has been dissolved with immediate effect and business operations will be overseen by Daily Mail Board until such a time that a new board is commissioned. Further cited in the release was the company’s weak financial performance and under water return on assets for a long time as one of the key drivers of the dissolution and restructure. The company has struggled to meet its salary obligations due to its frail financial position. Times Printpak Zambia incurred an operating loss of K41.7million and return on assets of (-49%) in the first 9 months of 2019. The restructure will also involve consolidation of the media and print business with the aim of boosting operating efficiency and profitability.
The phased restructure will allow for the editorial team of Times Printpak Zambia Ltd to continue with publication of the Times newspaper as it maintains its independence of both the Times and Daily Mail papers respectively.
Zambia has through the IDC commenced surgery on non performing state owned enterprises to ease the Capitalization burden on the state which has for years been a driver of fiscal pressure. Other key developments are the currently running Initial Purchase Offer (IPO) of ZAFFICO where the states forestry company is in the market for $23million through a 40% share offer while the Zambia State Insurance Corporation (ZSIC) will be listed in 1H20. The MinFin has directed the IDC to ensure SOEs operate profitably so that government can reap the benefits of future cash flows in dividends and sustainable operating models.
The Industrial Development Corporation has oversight over 34 state owned enterprises across 13 sectors.
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