Hon Mutotwe Kafwaya



The acquisition of Mopani Copper Mines by Delta Mining Limited is a scandal that many will regret in due time. So far in this particular week, this is the most bizarre announcement that the country has heard and ought to pay attention to.

Listen to part of paragraph one of the announcement. “has agreed to acquire 51% of shareholding of Mopani for an investment total of up to $1.1 billion.”

This statement above is one that is simple but very tricky. I will try to explain it below according to my understanding.

(1) Before this transaction, Mopani was wholly owned by Zambians through ZCCM – IH.

(2) Upon acquisition, 51% of shareholding moves from the Zambian people to Delta Mining Limited. This means the control of the mines moves instantly to Delta.

(3) From now on, all future dividends will accrue to new shareholders in line with current shareholding structure.

(4) Now, what has Delta given to the existing shareholders as consideration for them to give up their controlling stake in the mine? According to the announcement as referred to above, Delta is giving a promise to invest up to a total of $1.1 billion. This is one of the most silly expressions that I have ever seen in such transactions.

My question is – once Delta invests $1.1 billion in Mopani, and the mine starts to perform, and consequently the mine starts to issue dividends, who will be receiving those dividends? Is it not Delta itself? If the answer is that it is Delta that will be receiving those dividends, how then can an investment into its own company be considered as consideration for Zambians to give up a controlling stake in the mine?

This is like someone coming to takeover your house and saying, “I will construct a wall fence to the house, and I will also put pavers and then you will remain with a servants quarter as your 41%.” And then as the original owner, you are paid nothing. All you are waiting for is that wall fence and pavers as a payment for giving up the main house, the 51%. If this this is not foolishness then I don’t know what is.

And once new tenants come in, the one who took over your house will receive rental income from the main house while you receive your rental income from the servants quarter.

We have been taken for granted on this. This is one of the most audacious Zambian company transactions I have heard about since privatization.

Let me end by reminding the investor that Article 210 of the Constitution awaits you. Even though the people know about the attempt to mutilate the constitution by making haste amendments to it, owing to the fear of what may come due to such transactions may be under way, I strongly recommend that investors should take due care.

This advise is hearty from my point of view.



  1. Mr Kafwaya, you are the most useless Mp Zambia has ever had .You gave Mopani to Glencore and then you still owed Glencore $1.5 billion. On top of that , Mopani stopped operating even when it was wholly owned Government! So what hell are you talking about? What were your intentions? To scap it off? You PF, you scrapped off KCM through appointing a Cadre liquidator. You started doing the same with Mopani, only to be served through loss of elections! Now that your friend is doing the right thing, you cant keep quite! What hell are you telling us. You PF, how were you born? ” Muli bantu ba shani?” After borrowing money and enriching yourselves, you still have no shame making noises. Go to hell!

    • Cannot agree more. I also find his statement on dividends ludicrous . I wonder were he gets the notion that dividends are only paid to major shareholders. Kafwaya as an accountant could do better than politick in such a foolish manner.

  2. I have never seen a more confused and dull person than Mr. Kafwaya. He seem not to understand what he is talking about. So according to his logic, only shareholder with 51% shares will be getting dividends but the other shareholder with 49% won’t be getting dividends? How illogical can such thinking be? I fail to understand how people in PF reason. They surrendered offtaker rights to Glencore through their bogus purchase of Mopani mine but now they want to pretend to champion the interest of the people when actually by their actions they say something else. The biggest problem with PF is that they use emotions instead of logic when making decisions. Of what benefit was it to own 100% of Mopani mine on paper but all offtaker rights still belonging to Glencore?
    And to make matters worse, they took up all the liabilities for the mine. Meaning simply that Zambia (GRZ/ZCCM-IH) was merely working for Glencore but still carrying their liabilities. Does that really make sense to any right thinking person?

      • I’m not defending anything but stating the facts. But it’s seems it’s beyond your limited understanding of how things work. Let me give you a little education, every shareholder is entitled to get dividents when they are declared no matter how small their holding is in the company but of course it’s not everytime dividends are declared.
        Even someone with a 0.000001% shareholding in a company is entitled to dividends if they are declared by the board, what about a shareholder with 49% shares to be held by ZCCM-IH in this case in Mopani?
        Please get some education first on such matters before you comment, you are embarrassing yourself.

  3. Kafwaya the Accounts Assistant at Zambian Mission in Luanda, Angola. What will you fellows in the pf appreciate??? It has become borring!!


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