33% shareholding in Metal Fabricators of Zambia
Ltd (ZAMEFA) has recently been purchased by Phelps Dodge Outokumpu Copper
Oy International Corporation and by Bikana International Limited for a
total consideration of US$3,218,292; the former being a large US copper
mining and manufacturer of electrical wire and cables, carbon black, wheels
and rims and the latter a Zambian Investment company. ZAMEFA's business
involved mainly the supply of copper wire and cable, being the only supplier
in Zambia. Copper rod has been the major contributor to ZAMEFA's revenue
and all copper rod except for own consumption has been exported mostly
to outside the Southern-African region. The potential for increased wire
and cable exports is good with more aggressive and improved marketing.
This transaction is important as it is the first American direct participation
in the Zambian Privatisation Programme and it is a pointer to increasing
North American interest in projects in Zambia.