BUUMBA CHIMBULU
writes @SunZambian
XYLEM Trading (Pty), a company and investment vehicle incorporated in South Africa has expressed confidence in the Zambian economy as it invests US$35million in the financial industry through Madison Financial Services (MFS).
Xylem has great confidence in the Zambian economy and hence the investment in MFS which it will grow further into a fully-fledged financial services group with influence to reckon with in the Southern African Development Community region.
This is according to Xylem’s Chief Executive Officer, Kajiya Kantumoya.
In MFS, Mr Kantumoya said, Xylem saw that it could add to Zambia’s economic growth and create more employment.
“Our philosophy is not to take-on opportunities that appear to be convenient but those which can add value.
“As investors interested in the wholeness of the business rather than some business units only, we have already created strategies to push the Group to the higher status that it deserves with a leadership team that has unmatched success,” he said in a statement.
Xylem will acquire 72.05 percent of MFS following a series of liquidity, credit and solvency the company has been facing since 2019.
Xylem’s experienced team is eager to get to work on their investment in which they are confident of achieving significant financial returns which merit the multimillion US Dollar investment of US$35million in the Group while seeking to inject additional fresh working capital to grow the MFS Group.
Commenting on the investment, Mr Kantumoya said: “we take pride in what has been achieved by the outgoing major shareholders with the growth of MFS and we are poised for Xylem to take the Group to the next level of greatness.”
The transaction was facilitated by Lyco Business Solutions, a leading Business Advisory and Capital Raising Firm which is represented in Zambia, the region, Europe and the United States of America.
MFS Group Executive Chairman, Lawrence Sikutwa, said the deal meant that the MFS Group would maintain and greatly improve efficiencies, quality of products and innovation.
Dr Sikutwa indicated that the key changing point for the Group’s turnaround lied in new capital investment to improve the performance of each of the Group companies.
“Our eyes were set on finding a lasting solution to the Group’s challenges including the MAMCo creditor problem. We are going into 2021 assured of a strong financial position that will add value to the overall performance of the Group,” he said.
