Lonrho Cotton Zambia Limited & Clark Cotton of South Africa


THE LINT COMPANY OF ZAMBIA

The ginneries of Lusaka and Gwembe of Lintco were sold to Lonrho Zambia Limited for US$6 million, whilst Chipata ginnery and the Eastern Cotton Development Division was sold to Clark Cotton of South Africa for US$1.3 million. These sales will contribute to the development of Zambia's agricultural sector through among other things: the ability of Lonrho and Clark to survive the stay in business; their ability to significantly increase incomes for the cotton growers who are mainly small scale farmers; their commitment to a strong research and development programme; making Zambia's cotton sector regionally competitive with a strong export potential and offering local textile mills alternatives in the sourcing of lint. In addition to this as a result of a healthy and growing cotton industry, a number of cotton merchants are likely to establish base in Zambia.

Lonrho Africa Limited

NATIONAL BREWERIES LIMITED

NBL was sold to Lonrho Africa Limited. NBL was purchased at US$8.5 million and in addition to this US$2.5 million by way of capital expenditure will be invested to rehabilitate the breweries. The remaining shares of 30% are to be offered to the Zambian public through public flotation. Of importance is that the opaque beer industry has opened to competition and a few competitors to NBL have opened breweries. New brands are now on the market and will offer competition to NBL. Additionally, the increase in the number of breweries will increase the demand for maize thereby reinforcing the necessary linkages with agriculture.

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