Q FM Africa's Modern Radio
Bankers Association of Zambia Chief Executive Officer, Leonard Mwanza says most Zambian banks do not have adequate capital capacity to undertake strategic review of a mining company.
His comment comes in the wake of the decision by ZCCM-IH to engage South Africa’s Rothschild & company to assist with strategic review of Mopani Copper Mines PLC aimed at finding ways of ensuring that the mines operate profitably.
Mr Mwanza has told Q-News in an interview mining is a highly specialized and complex undertaking that requires huge sums of money.
He states that due to the complexity of mining, it would mean most banks would have to tap into international resources to help them in conducting transactional services.
Mr Mwanza explains that most banks in the country currently deal with retail and investment and not everyone is into cooperate and investment banking.
He notes that ZCCM-IH went for a more specialized entity with experience to provide advisory services in terms of how to reorganize and refinance operations at Mopani copper mines, hence engaging Rothschild & company.