STATEMENT
There has been an article in the Lusaka Times an online publication dated 15th May, 2020 which went viral, captioned “Lawrence Sikutwa dissolves LSA Group as the financial situation worsens at Madison”. The said article states that I have dissolved the LSA Group of Companies for reasons stated therein. I wish to inform the public and concerned stakeholders that the article is factually incorrect and I take this opportunity to refute the assertions and advise that the Group is intact and not under any consideration for dissolution.
Let me clarify that Lawrence Sikutwa and Associates Limited (LSA) is a Company that has investments in a number of entities in various sectors of the economy. Among them, LSA is the largest investor in Madison Financial Services Plc (MFS) a company which is publicly traded on the Lusaka Stock Exchange (LuSE). It is therefore inconceivable that LSA would dissolve when it has a significant stake in the only indigenous financial services group in Zambia.
MFS Plc is the holding company of the Madison brand which has a number of businesses in the financial services sector including Madison Life Insurance Company Ltd (MLife) and Madison General Insurance Company Ltd (MGen). The subsidiary companies of MFS are independent of each other and are run as such save for the fact that they have a common shareholder, MFS. Before the Madison Group went public in 2014 LSA offered shared services to its subsidiaries and continued to do so thereafter. However, in 2019 MFS resolved that the shared services to the subsidiaries would be provided by MFS hence the restructuring and rationalisation which occurred at LSA resulting in shared services being provided by MFS effective 1st May 2020. MFS employs about one thousand (1000) people.
I do admit that some subsidiaries in the MFS Group face some challenges brought about by a number of reasons including the widely reported situation in Madison Asset Management Company Ltd (MAMCo). Rest assured that the said challenges are firmly being addressed so that they are resolved to ensure that the businesses adapt, restructure and continue to thrive in the new normal. In this regard, efforts include; capital raising, seeking new partners and rebuilding trust. Corporates do face up and down business cycles and we are no different but it would not be appropriate to delve into operational matters of the MFS subsidiaries suffice to state that all stakeholders involved are working together to ensure that the challenges are overcome.
I am confident that with the support of the general public, the Government and relevant stakeholders, Madison will forge ahead and remain a successful indigenous Zambian Group and that “Madison”, a proudly Zambian brand, shall continue to be a market leader competing favourably amongst internationally affiliated peers in the financial services sector. I, therefore, look forward to our valued customers; business partners and stakeholders continuing to support us as we strive to push forward the economic development agenda of Zambia.
In ending, I categorically state that there are no plans to dissolve LSA, it shall remain a flagship investment company in Zambia.
Lawrence S. Sikutwa (Dr)
EXECUTIVE GROUP CHAIRMAN
15th May, 2020