Zambia’s ZCCM Eyes Partial Divestment to Boost Share Liquidity

ZCCM Investments Holdings Plc, Zambia’s majority state-owned mining investment company, is considering a partial divestment to increase the number of its shares available for public trading and meet local stock exchange requirements.

ZCCM Chief Executive Officer Kakenenwa Muyangwa said the company could sell part of its stake within the next one to two years.

The potential ZCCM partial divestment is aimed at helping the company comply with the Lusaka Securities Exchange requirement that at least 25% of its shares be readily tradable.

Other major shareholders, including Zambia’s national pension fund, could also reduce their holdings to help meet the required threshold.

The Zambian government currently owns 77.5% of ZCCM, while the national pension fund holds 15%. Minority investors own the remaining 7.5%.

ZCCM holds minority interests ranging from 10% to 49% in several of Zambia’s major copper mines, including assets operated by Vedanta Resources and First Quantum Minerals. The company also has investments in electricity generation.

ZCCM targets greater market value

The potential share sale comes as copper prices remain at record-high levels, supporting increased investment in Zambia, Africa’s second-largest copper producer.

ZCCM is also working to restore trading of its shares in London, where trading is currently suspended because of delays in filing its financial statements.

Muyangwa said the company expects to resolve the outstanding filings within weeks and considers London an important strategic market for its future growth.

The company has set an ambitious target of increasing its market capitalisation from approximately US$1 billion currently to US$7 billion over the next decade.

The target reflects ZCCM’s plans to expand its role in Zambia’s mining sector and unlock greater value from its investments.

“London’s established mining investment market will be crucial for our growth plans,” Muyangwa said. “We are confident that by increasing market liquidity and enhancing transparency, we can unlock significant value for all shareholders.”

The proposed divestment, alongside plans to restore the London listing, is expected to support ZCCM’s efforts to improve market liquidity and strengthen its position as a major investor in Zambia’s mining industry.