ASSET MANAGEMENT
As the economy recovers and demand grows, financial institutions are looking into several areas to differentiate themselves and stand apart.
Our client base is extremely diverse, including small and large businesses, public entities, associations, professional services organizations, and private individuals. In terms of reaching out to new clients, we are mainly developing our other services on the back of our risk services clients. Furthermore, we are a global, well-known, and respected brand and are able to leverage on that. Most clients in Zambia, however, talk about reductions in spend. This has been the function of economic performance. The demand for insurance services will increase as the economy rebounds. The risk landscape has been flat. On the one hand, we have seen certain slight increments in risk. However, on the other, there have been no catastrophic losses or anything of that sort; therefore, the overall trend has been flat.
Aflife remains the largest private sector investment management firm. Our market share fluctuates between 56% and 62% at any time of the year depending on how the assets we manage perform. In the last three years, we have launched collective investment schemes to take advantage of new laws promulgated by the Pensions and Insurance Authority in 2011. We initially launched products for our institutional clients; however, in the last two years we have rolled out a plan to try and reach out to individual retail investors using the same platform. We acquired the requisite approvals to deal with individuals and have launched six products. Now, we are creating the infrastructural backbone to roll these products out as efficiently as possible. As the industry grows, we envisage business growth to come through products. Therefore, we initially focused on products for collective investment schemes to demonstrate our capacity, capability, and competence. These schemes are our flagship in terms of marketing and how we face our clients to showcase our offering and capabilities.
Aon Zambia is the leading insurance broking firm in Zambia. Currently, we operate two entities: Aon Zambia Risk Solutions and Aon Zambia Pension Fund administration. The former provides broking services to local entities as well as multinationals, and the latter offers a wide range of products in the pensions and administration space. The risk side focuses on both the short-term and long-term business, as well as risk management services. The market has not experienced much diversity in products and services and currently most of the services on the market are similar; rivalry among insurance providers is intense. Regarding long-term products, the most popular are life schemes, medical, and funeral products. Aon strives to break away from this set path by bringing in new services and products.
Madison Finance made a deliberate decision to shift operations toward a 50% MSME and 50% personal loans position because the MSME segment was seen as a major area for growth and development of the Zambian economy. Very few institutions focus on MSME lending primarily because of the risks associated with this segment. To counter this, one of the measures we have put in place for MSMEs is training in aspects such as bookkeeping, financial discipline, and general business management skills. We go beyond merely lending out money, but also building clients' capacity in terms of helping them understand the practicalities behind lending and borrowing. Additionally, we have in place guarantees to secure loan products under agriculture and sustainable energy products that provides further impetus for the company to pursue these sectors in business. The question of boosting MSMEs goes beyond the aspect of funding; it is about improving the status of customers in terms of their ability to produce more within the country and sustain their businesses.
ASSET MANAGEMENT
TABLE OF CONTENTS
Year In Review
What A Year
Zambia has long been a bastion of stability in Southern Africa, and while its economy has been rocked in recent years by the falling value of copper prices, a devaluating kwacha, and high inflation, through the Economic Recovery Program the government has bold ambitions to right the ship.
read articleReview
Convoke, Confound & Collect
Squeezed between a rock and a rather hard place by the slowdown in Chinese demand for copper, by far Zambia's biggest export and government-revenue generator, President Lungu has been forced to get creative in his country's alliances to broaden revenue streams and lessen its dependence on the vagaries of one foreign market.
read articleGuest Speaker
Dr. Stergomena L. Tax, Executive Secretary, Southern African Development Community (SADC)
TBY talks to Dr. Stergomena L. Tax, Executive Secretary of the Southern African Development Community (SADC), on regional economic development, boosting pan-continental free trade agreements, and improving security through mutual development.
read articleInterview
Susan Sikaneta, Ambassador, Zambia to Ethiopia & Permanent Representative to the African Union and Economic Commission for Africa
TBY talks to Susan Sikaneta, Ambassador of Zambia to Ethiopia & Permanent Representative to the African Union and Economic Commission for Africa, on championing peace across the continent, advancing women's rights, and promoting Pan-Africanism.
read articleInterview
Sebastian C. Kopulande, CEO, Zambian International Trade & Investment Centre (ZITIC)
TBY talks to Sebastian C. Kopulande, CEO of Zambian International Trade & Investment Centre (ZITIC), on taming austerity, stimulating sustainable growth, and creating the framework to support entrepreneurship
read articleFocus: Zambia Plus
Adding it All Up
On October 20, 2016, at the 2017 Budget Address, Finance Minister Felix Mutati launched the government's economic recovery program, christened "Zambia Plus." The program is designed to spur domestic productivity, through strengthening ties and collaborating with external donors and developers.
read articleReview: Banking
Macroeconomics Rule the Roost
In its ongoing efforts to diversify away from one principal commodity, copper, the government fosters the development, standardization, and efficacy of the private sector. In doing so the systematic support of the financial universe, especially banks, is vital, as is the goal of financial inclusion.
read articleFocus: SME Growth
IMF support program
An IMF support program stands to provide Zambia with some much-needed discipline on its expenditure and operational efficiencies; however, many caution the need for Zambia to determine what it wants to achieve and how the program will benefit the country.
read articleInterview
Christabel M. Banda, Executive Director, Insurers Association of Zambia (IAZ)
TBY talks to Christabel M. Banda, Executive Director of Insurers Association of Zambia (IAZ), on the evolution of the local insurance landscape, raising awareness, and tackling challenges in the sector.
read articleFocus: Solar
Sunny Side Up
As power demand continues to rise and power production continues to fall behind, it's the same old story for Zambia, still wrestling with an ongoing energy crisis. Public- and private-sector drives are seeking to mitigate this deficit by activating the country's solar industry.
read articleInterview
Margaret K. Chalwe-Mudenda, Director General, Zambia Information and Communications Technology Authority (ZICTA)
TBY talks to Margaret K. Chalwe-Mudenda, Director General of Zambia Information and Communications Technology Authority (ZICTA), on new projects, the ZNDC, and expectations for the year ahead.
read articleInterview
Hon. Dora Siliya, Minister, Agriculture
TBY talks to Hon. Dora Siliya, Minister of Agriculture, on the investments being made in agriculture to enable agricultural households, diversifying Zambia's basket of produce, and making international markets more accessible for local producers.
read articleInterview
Hon. Charles R. Banda, Minister, Tourism and Arts
TBY talks to Hon. Charles R. Banda, Minister of Tourism and Arts, on the wealth of tourism destinations within Zambia, efforts to bring more visitors to the country, and what the Tourism Development Fund will contribute to developments.
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