Share consolidation-A case of companies on the Lusaka stock exchange

20 Apr

It was a very exciting friday for me. I had been watching the stock market but this friday was something special. For the first time since I began watching the figures, a particular company’s stock had risen from ZMW0.61 per share to ZMW 30.5 (An amazing 4900% rise!). I immediately picked up the phone and began dialling and texting friends who had shares in this company at the time. Everyone could not believe the price rise. It was an exciting weekend until something burst the bubble.

The about 4900% increase in share price was not really a real increase. It was a share consolidation.. In simple terms, a share consolidation works as follows:

Imagine you have 100 shares in company A at ZMW 5 (Approx $1) per share. The total value of your investment is 100 x ZMW5 = ZMW 500 (Approx $100). In a share consolidation, your 100 shares would be converted to say 20 shares at a price of ZMW 25 (Approx $5) per share. Therefore if you just wake up (like I did on that day) and see a price of ZMW25 instead of ZMW5, please confirm with your stock brocker if it was not a share consolidation. That is how my bubble got burst on that exciting weekend.



16 Jan


Responsibility is an essential element for development. As each and everyone one of us grows older, wiser and more knowledgeable, it becomes apparent that we need to handle more and more responsibilities. We often hear people say “Take responsibility for your actions,” or “You must behave responsibly.”


One may ask then, what is responsibility? Responsibility is one of the components of accountability. It entails an obligation to control or do something.


Let us qualitatively analyse the correlation between responsibility and economy building or economic development. This can be done through the following analogies.

To begin with, think of a home where the parents are irresponsible. The father is a perpetual drinker or drunkard. The mother is a top neighbourhood gossiper who only ties her Chitenge material (long cloth worn by most African women) to her waist and rushes back home to service the demands of a drunken husband. The first thing he will probably say is “where is my meal?” She will most likely answer sarcastically with the question “Did you leave any money for you to demand any food?” This will almost certainly be followed by a harsh verbal exchange and before they know it, the children are witnessing a Mike Tyson verses Lennox Lewis affair. Pyramid Arena ‘in live replay’. The only difference being that this one is unprofessional- Pots, pans, spoons, knives, cooking sticks and anything the fighters can get their hands on will be used against their partner. Of course this is an extreme example but it is a representative one. No one wants to take responsibility. The children are learning the bad manners. Meanwhile, somewhere in a developed nation, a couple is discussing how they are going to diversify their investment portfolio. How that annuity will be executed for that unborn child. Who will develop?

Scenario two goes something like this; a young person walks into that office. They are a fresh graduate and eager to contribute to the development of the organisation. Probably also wishing to be noticed. As soon as the youngster gets to the peak of their activities, the supervisor walks in. “Young man!” he exclaims. “This is not your grandfather’s company. If you want to get noticed, you will just get hated by your workmates.” He poses; looking directly into the lad’s face and continues. “Take frequent breaks from your work and learn to make deals.” The recruit is perplexed that his boss can be so disgraceful but still open enough. He tries to report the matter and everyone acts unconcerned. It is a network of scandalous people he has gotten into. Before he knows it, he is behaving like them.

How about that person who has spent all his time studying or schooling? They get a good job, good pay and decide to buy that dream car. However, they need a driving license. They want to get a license fast. However; to do this, they have to bribe someone in the road traffic department; otherwise they will continue failing the driving test. Next thing you know, road traffic accidents are on the rise.

All these scenarios show how lack of responsibility at every level in society is suffocating the economies of developing countries. The ATTITUDE of citizens towards their own daily lives is causing them to bring upon themselves problems on which priceless time is wasted. All this is at the expense of economy building matters. Take a lead. Have an attitude that avoids these unnecessary problems. Economy building begins with you.

I would like to hear from you. Contact me at: byrnek09 (at) gmail (dot) com

Economy Building
Development in prospect.


12 Jan


Some people say President Levy Patrick Mwanawasa was a president of integrity. Issues of integrity are all around us. Think of a young graduate trying to cheat their way to a job, a potential driver trying or being enticed to bribe their way to a driver’s license, a politician trying to bribe their way into a position and many more similar occurrences. Slowly but surely, generation after generation, we accept lack of integrity to hold us captive and hinder economic development.

Are you a person of integrity? How significant is the integrity of others and indeed your integrity to economic development? I have already established that “Ethics as a basic principle” are essential for development. This is because they lead to confidence in stakeholders and increase the volume of transactions occurring between them. We now move on to the next key principle for economic development and this is INTEGRITY.

Integrity is one of the fundamental principles of the Association of Chartered Accountant’s (ACCA) code of ethics. It is also an essential way to measure how those who are involved in both corporate and public governance are accountable to those affected. In the context of behaviour, Integrity involves asking questions such as; how morally upright am I? Am I honest and truthful? If you are not a person of integrity, then you are hypocritical.
Now that word; hypocrisy, is something most people in developing countries will identify with. How many times have people given promises that they have failed to deliver? Many people have held themselves out to have certain attributes that they in fact do not have. It happens almost everywhere; a graduate looking for employment, a politician vying for a position, a marketer trying to get that client to buy the otherwise substandard products. The worst part about it is that most of us do not want to admit that there is too much hypocrisy around and within us.

Despite all this, there are a number of things that you as an individual/ we as a generation can do in order to achieve a high level of integrity. These include but are not restricted to the following:

Like the old saying goes; “Cleanliness is next to Godliness”. With the religious backgrounds of most poor countries, it is a saying that most will identify with. However it’s implications must be understood well and applied. No matter how hard one thinks they are, prolonged periods of interaction with people who lack integrity may cause you to begin behaving like them. Hence the biblical teaching, “Bad company corrupts good morals.” With hypocritical people around you, you will most likely in no time begin accepting, giving and taking small bribes until you reach a point where lack of integrity does not seem to be a problem in your view. So, step number 1, identify people, places and activities of integrity and involve yourself in such.

Most fraud perpetrators and people who lack integrity justify their actions with the phrase “everyone is doing it.” Please be informed that you are not everyone. Refuse to be called everyone. You are a unique individual who gets various attributes from various people and experiences in life. The journey to achieving national integrity begins with you. If you accept to be everyone, that first important step towards integrity may never be taken.

Most people who are identified as lacking integrity hold key positions in their field(s) and in society in general. They include; but not restricted to, Economists, Accountants, Lawyers, Doctors or medical personnel and Engineers. Most of these have codes of ethics which include integrity as one of the basic principles. It is important to take these codes seriously. Many codes are not laws but voluntary guidelines that when well followed increase the credibility of a profession.

Let us together fight against lack of integrity. Refuse to take and give bribes. The taking and giving of bribes works like the economic laws of demand and supply. Let us take the giving and taking of bribes as the supply and demand for bribes respectively. Let us begin with a situation when there is low demand for bribes. If many people are willing to give bribes but a few are willing to take them, the amounts (prices) involved in each bribe may be so low as to discourage bribing altogether- ceteris paribus (all else being equal). The transaction might also not be economically viable for the few who might want to remain morally bankrupt and demand bribes. On the other hand, if you refuse to supply (give) bribes and yet more and more people want to take (demand) bribes- as the situation usually is; the demand curve shifts upwards, making the price paid for each bribe huge and therefore more expensive for anyone who would like to give bribes discouraged from doing so.

However, everything has its pros and cons. An increase in what I would call “bribe prices” would lead to bribe takers being encouraged to do more. A reduction would cause bribe givers to wish to use this shortcut as well. The most important thing however is that if a large number of individuals did the right thing, the moral bankruptcy can be reduced and ultimately eliminated.


Integrity is a key principle for development. It makes and breaks individuals, leaders, organisations and nations. There are many proposed frameworks for increasing integrity. However the points stressed above can serve as a beginning point in taking that important step towards improving integrity. Let us all have integrity in order to build the economy.

If you have any queries, you can contact
Economy building is development in prospect. Let us together make it a reality.


5 Jan


In the next few writings, I intend to explore the possible reasons Zambia and indeed many African countries do not do well relative to many developed countries. After over 40 years of political independence, we are still struggling as a nation. Most international assessments have concluded that the average citizen lives on less than a dollar a day. Are we willing to continue living like this? Is it as Nathan Nyirenda puts it in his song Mwemakufi (Knees) “because of the black skin or is it that intellectual capabilities are inferior or low?”

The answer is obviously no. However, let us not comfort each other the situation is very bad and needs to be changed. We do not use our intellectual capabilities to the maximum and have accepted mediocrity for way too long. There is one aspect of an African’s whose effects are highly underrated by the Africans themselves.

To begin with, I would like to share something I came across as I was doing my leisure time reading. I can not quiet remember who wrote it but it was a power point presentation which stated that if the letters of the alphabet were represented by the numbers 1,2,3,4,5 to 26 where; 1 is for A, 2 for B, 3 for C and so on up to Z for 26, then words could be added up to find their value and different aspects of life could be analyzed for their value. For instance

M + O + N + E + Y =13+ 15 + 14 + 5 + 25 = 72
S +U + C + C + E + S = 19 + 21 + 3 + 3 + 5 + 19 = 70
HARD WORK = 8 + 1 + 18 + 4 +23 + 15 + 18 + 11 = 98

The presentation then went on to argue that only one aspect of life would add to 100. That aspect is ATTITUTE. That is what I want to address today. Michael Bonnell (1997) argues that attitude is the “…difference between poor countries and the rich ones.” Bonnell further asserts that studies have shown that a majority of people in ‘rich countries’ follow the following principles in their lives while their counterparts in poor countries only follow a minority of these basic principles in their daily lives.

1. Ethics as a basic principle.
2. Integrity.
3. Responsibility.
4. Respect to the laws and rules.
5. Respect to the rights of other citizens.
6. Work loving.
7. Strive for saving and Investment.
8. Will of super action.
9. Punctuality.

It is my intention to expand and give an in depth explanation on each one of these basic principles in my next few writings. Suggestions of things to be included in each of these are welcome from every one. You can send them to byrnek09@gmail.com Remember ‘Economy building is development in prospect’ Let us all make it a reality.


Michael Bonnell (1997). The difference between poor and rich countries-Power point presentation.



19 Oct

Hello. Thank you for visiting. Please Click on about and then international articles to read this paper.



This paper aims to identify the role (if any) that fair value accounting had to play in the global financial crisis. It begins by giving a background to the global financial crisis. This is followed by an explanation of the terms Fair Value Accounting (FVA) and Global Financial Crisis (GFC). Next, the major reasons that financial analysts advance for the financial crisis are highlighted. These are followed by highlights of the possible link between the financial crisis and fair value accounting.