ZCCM Investments Holdings has reduced its dividend payout by K346 million to approximately K183 million for the 2025 financial year, from K529 million paid for 2024, representing a decline of about 65.4 percent.
Despite the lower payout, the mining investment company recorded a 40 percent increase in investment income, a key measure of its performance, demonstrating improved returns from its investments.
ZCCM-IH Chairman Phesto Musonda says the lower dividend was largely influenced by a full provision made for a legacy legal matter and the appreciation of the Kwacha, which reduced the local-currency value of the company’s dollar-earning assets.
Mr Musonda, however, says neither of these factors affected the cash generated by the company’s investments.
The company has maintained its record of paying dividends for 11 consecutive years, returning approximately K2.4 billion to shareholders since 2015.
Of the approximately K183 million declared for 2025, the Industrial Development Corporation will receive K110 million, the Ministry of Finance and National Planning K32 million, and the National Pension Scheme Authority K27 million.
The remaining K14 million will be shared among approximately 5,000 other shareholders in Zambia and international markets.
Mr Musonda says the company continued to receive returns from its investments, including Kansanshi, whose royalty payments are based on revenue rather than profit, as well as Mamba Energy, which paid its maiden dividend, and Copperbelt Energy Corporation.
He says ZCCM-IH also repaid 150 million United States dollars to Glencore in April, settling legacy debts linked to the restructuring of Mopani Copper Mines.
The company’s market valuation has also exceeded one billion United States dollars.
Meanwhile, Finance Minister Situmbeko Musokotwane, represented by Permanent Secretary for Economic Management and Investments Mr Mulele Mulele, says Government expects its commercial investments to generate sustainable returns that support public finances and national development.
Mr.Mulele says ZCCM-IH must maintain commercial discipline, expand its investment portfolio and balance shareholder returns with long-term growth.
He says the company has a significant role to play in the Grow Zambia agenda, particularly in increasing copper production to three million tonnes, supporting energy development, promoting local participation and creating jobs.
By Rachel Mumba
