ACCESS Bank Zambia Ltd and Cavmont Capital Holdings Zambia Plc (“CCHZ”) announce that they have signed a definitive agreement regarding a proposed merger of Access Bank Zambia and Cavmont Bank, a subsidiary of CCHZ. Once implemented, the combined bank is expected to boast a strong capital base, in excess of ZMW600 million, significantly exceeding the capital requirement for foreign owned banks under the regulations of the Bank of Zambia. This robust capital structure will not only ensure the banks’ customer deposit base benefits from the greater security but also form the foundation for sustainable banking operations and future growth.
The transaction is expected to close during the fourth quarter of 2020 subject to the meeting of various conditions precedent which, amongst others, include CCHZ shareholder approval, relevant regulatory approvals and the local and regional competition commission authorities.
The key highlights of the proposed transaction are as follows:
• A complementary transaction that combines Access Bank Zambia’s wholesale and trade finance capabilities with Cavmont Bank’s retail and commercial banking operations.
• Access Bank Zambia and Cavmont Bank customers to benefit from greater security offered by one of the most capitalised banks in the country, a more sophisticated product and service offering and a broader geographical network.
• Following the legal merger of the two banks, the enlarged entity will be a majority owned subsidiary of Access Bank Plc.
• It is Access Bank Zambia’s intention to retain one or more of Cavmont Bank’s existing directors on the board of the merged entity following the completion of the transaction.
Commenting on the transaction, Access Bank Zambia Managing Director Mrs Joana Bannerman, said: “I am delighted that we have reached an agreement for a proposed merger with Cavmont Bank, a dynamic retail and commercial bank with a presence across seven provinces in Zambia. This merger, which will see the combined bank becoming a top 10 bank in Zambia, will increase our scale and improve our operating leverage by enabling us to deliver our existing retail and wholesale offerings to a wider base of customers in Zambia while positioning the bank for growth in the long-term trajectory for the country.
This merger would provide Access Bank Zambia’s customers with access to a wider branch network across the country, while Cavmont Bank’s customers would benefit from Access Bank’s best in class digital capability, trade finance expertise and international banking, including products such as AccessAfrica which allows customers to instantaneously send and receive money across Africa and beyond. Through this merger, Access Bank Zambia and Cavmont Bank will play a role in Zambia’s economic recovery by building on Cavmont Bank’s contributions to develop SMEs and making Access Bank’s trade finance, treasury, and corporate lending expertise available to Zambian MNCs and SMEs via the enhanced distribution network.”
Peet van der Walt, Managing Director of Cavmont Bank, said: “Cavmont Bank’s vision is to be a world-class bank, rated amongst the best in Zambia. This proposed merger with Access Bank Zambia accelerates our strategy and positions us as a top 10 bank in the country. As a subsidiary of one of the largest banking groups in Africa, Access Bank Zambia has the scale, capabilities and ambition to enable the combined bank to pursue exciting strategic opportunities in Zambia. Our customers will benefit from greater security offered by one of the most capitalised banks in the country, increased scale in Zambia, access to a broader digital, and retail offering, and a geographic network across the continent. We look forward to working closely with Access Bank to deliver the benefits of the merger to all the stakeholders.”
The proposed merger will see Cavmont Bank’s strong retail, commercial and SME loan capability and branch network leverage Access Bank’s best in class digital platform and product suite to create a platform for further growth and the facilitation of financial inclusion for the unbanked in the country. Corporate customers benefit from Access Bank’s strengths in trade finance, treasury, international payments and loans through the wider distribution network of the enlarged bank and Access Bank’s presence in the key trade corridors which connect Africa with Dubai, China, Lebanon and Mumbai and the global hubs of UK, US and Hong Kong.
Access Bank Zambia and Cavmont Bank will draw on Access Bank’s strong track record of post-merger integration to ensure a successful combination.
Zambians traveling to Dubai urged to check their travel documents
THE Zambian Consulate in Dubai says it is concerned with the increased number of nationals travelling to other countries via Dubai being denied passage due to lack of Travel Permits.
And the Consulate has has advised all Zambian travelers wishing to transit through Dubai to ensure that they carry with them all the necessary travel documents in the country of destination such as travel Visa, valid passports, COVID-19 negative tests and pre-approval Travel Permits.
In a statement, Consulate second Secretary for Accounts Musonda Chella said cautioned that due to the COVID-19 pandemic, most countries around the world have introduced special permits which need approval before one travels. Sometimes this application has to be submitted 24 hours to 14 days prior to the date of travel.
He observed that some Zambians have travelled without special travel permits via Dubai where the airlines from the United Arab Emirates prevented them from proceeding further to the countries of destination.
“This has caused panic and inconvenience as the nationals have incurred extra costs on tickets, spent nights in the airports, and in other cases sent back to Zambia,” Chella said.
K 5.7 billion allocated for FISP to benefit 1 million small-scale farmers
MINISTER of Finance Dr. Bwalya Ng’andu has disclosed that government has allocated a whopping K5.7billion for the Farmer Input Support Programme (FISP) to support over one million small-scale farmers in the 2020-2021 farming season.
Presenting the national budget in the National Assembly, Dr. Ngandu said government had also allocated K517.5million for the national food strategic reserve.
“Mr. Speaker, the Economic Affairs function has been allocated a total of K21.5 billion,” he said.
“Notable expenditures include K5.7 billion on the Farmer Input Support Programme (FISP), targeting one million farmers across the country”, he said.
“Further, for the country to be food secure, I have set aside K517.5million for the national strategic food reserve”, he said
Dr. Ngandu also announced support to the livestock sector by promoting a programme to restock and control cattle diseases.
“Sir, to promote the livestock sub-sector, Government will continue with the Livestock Stocking and Restocking Programme out of which at least 30 percent of the beneficiaries are youths”, he said
“In the first half of 2020, a total of 3,100 households benefitted from the Programme. With regard to animal
health, a total of 283,000 animals
have been vaccinated out of the 2020 target of 290,000 under the Livestock Vaccination Programme”, he said.
He also announced a loan programme in the agriculture sector to primarily benefit young people.
“Mr Speaker, Government is
implementing the Zambia Aquaculture Enterprise Development
Project aimed at stimulating a viable aquaculture sub-sector”, he said
“In 2020, the Project, through the Citizens Economic Empowerment
Commission(CEEC), has disbursed loans worth K6.3 million to 637 aquaculture entrepreneurs”, He said
“These loans are targeted at empowering youths and women “. he said
2021 Budget is pro-poor, aims to safeguard livelihoods and protect the vulnerable
FINANCE Minister Dr Bwalya Ng’andu’s budget has been welcomed by many who say the budget will safeguard the interests of the poor, who have been hit hard by the recent economic slow down caused by COVID-19.
Minister Dr Bwalya Ng’andu tabled the budget at the National Assembly on Friday afternoon where he proposed to spend K119.6 billion in 2021 which translates to 32.6 percent of GDP. Of this amount, K68.0 billion, representing 18.5 percent of GDP, will come from domestic revenues and grants. The balance of K51.6 billion will be raised through financing.
“Mr. Speaker, the 2021 Budget clearly lays a foundation for economic recovery, build resilience, safeguard livelihoods and protect the vulnerable. The thrust and priority for 2021 and the medium term will, therefore, be to re-invigorate growth, restore macroeconomic stability, attain fiscal fitness, restore debt sustainability and dismantle domestic arrears and at the same time safeguard social protection spending” he said.