ZAMBIA
Lusaka Securities Exchange (LUSE) revealed that British American Tobacco Zambia (BATZ) is seeking approval from its shareholder to acquire a US$15 million loan from BATIF Dollar Limited for the construction of a tobacco manufacturing plant in Zambia. BATIF Dollar Limited is a subsidiary of British American Tobacco (BAT).
BATZ has been sourcing 95% of its cigarettes from BAT Kenya Plc and 5% from BAT South Africa. It intends to invest in tobacco manufacturing because the current excise duty regime favors local manufacturers over imports.
According to LUSE, “The board, therefore, considered it necessary to have local production in the country which would not only reduce the tax burden and bring about a fundamental change in the long-term financial position of the company but in addition create employment for the locals.”