By Linda Soko Tembo
The Zambia Cooperative Federation (ZCF) is mired in controversy, involving a questionable takeover, alleged document forgery, mismanagement, and unfulfilled promises to its over three million members—many of whom are low-income workers—leading to a breach of trust regarding the ownership and operation of the Lusaka Region Trade Centre.
Originally established by ZCF as a one-stop business hub for its members, the Lusaka Trade Centre is now fully controlled by private interests, including a Chinese firm that holds a majority stake in Lusaka North Trade and Investment Centre Company Limited—a company formed to manage the facility without the knowledge or consent of ZCF members.
Records from the Ministry of Lands show that property number LUSAK/LN 15087/2, initially allocated to the Zambia Cooperative Federation (ZCF) by President Edgar Lungu in 2016, is now owned by Lusaka North Trade and Investment Centre. According to the Lands Registry, ownership was transferred to the new company on December 27, 2022, with the certificate of title changing from CT_39231 to CT_140006.
Before the transfer, the centre was owned by Chinese nationals and a group of Zambian elites under a different company, ZCF Lusaka Regional Trade Centre, where ZCF held a minority stake. Some ZCF members now claim they were misled or deceived into supporting the initiative, which was initially part of a broader plan to establish ten regional trade centres across the country.
Adding to the controversy, a shareholder listed in ZCF Lusaka Regional Trade Centre has questioned the legitimacy of his inclusion in company records, alleging that his signature was forged. He claims his forged signature was used to establish Lusaka Freezer Technology Company, which appears as a shareholder in ZCF Lusaka Regional Trade Centre.
“I was shocked when MakanDay approached me about the Trade Centre and informed me that my company, Lusaka Freezer Chain Technology Company Limited, was listed,” he said. “They forged my signature. Moreover, the listed address is not mine—I have never lived there.”
Despite ZCF being a membership-driven organisation, funded through annual K5,000 subscription fees from each province, it remains unclear whether members were consulted about the trade centre’s ownership change.
However, MakanDay has established that Sinomine International (Zambia) Engineering Corporation Ltd, the Chinese construction firm that built the centre, is now the majority shareholder in Lusaka North Trade and Investment Centre, the company that owns the facility.
Records from the Patents and Companies Registration Agency (Pacra) show that Sinomine holds 10,500 shares—more than double the 4,500 shares owned by ZCF.
The company’s directors include three Chinese nationals—Wei Wang, a director at Sinomine, Wang Chaolei, and Pingwei Wang. The Zambian directors are James Chirwa, Mathews Kapotwe, and James Chirwa, the immediate past ZCF executive director.
It appears Sinomine took control of the trade centre after ZCF failed to settle construction costs. Further questions are being asked how three warehouses that make up the trade centre are reported to have cost ZCF a staggering US$4 million, down from an initial cost of US$6.5 million. Insiders claim the actual value should be around US$1.5 million.
A Sinomine official confirmed to MakanDay that the company partnered with ZCF to build the Lusaka Regional Centre. However, after construction was completed, ZCF was unable to pay for the project because their loan application was not approved by the bank.
“After about two years, we attempted to negotiate a payment plan, but ZCF still lacked the funds,” the official said. “As a result, we reached an agreement where they transferred 70% of the building’s shares to us.”
In February 2022, James Chirwa, then ZCF executive director told MakanDay, that the facility was built by a Chinese contractor but did not disclose the company’s name.
“We were intending to get a loan from the Development Bank of Zambia (DBZ), and when we applied for that loan to build those warehouses, DBZ approved it. But later, they said they did not have the money to finance it,” he explained at the time.
It is unclear why the company that built the trade centre for an initial cost of US$6.5 million agreed to accept US$2.5 million less. Chirwa explained that ZCF consulted a quantity surveyor, who advised that the project was not worth US$6.5 million. As a result, ZCF engaged the Chinese company to reduce the cost.
Members now have no access to the trade centre, as it has been rented out to the Rural Electrification Authority, dashing their hopes of utilizing what was meant to be their facility. This has also led to the failure of ZCF’s promise to run the trade centre as a joint venture for business operations at the Lusaka Region Trade Centre.
The initial plan for the centre was for it to function as a hub for commodities from small-scale farmers.
ZCF acting executive director Godfrey Munyoro confirmed that the Rural Electrification Authority (REA) is renting the building from ZCF and their partner, Sinomine.
In 2020, the Lusaka Union of Marketeers—a representative body for all primary cooperatives markets in Lusaka District—along with the Lusaka District Cooperative for Farmers and the Lusaka Province Cooperative, entered into a joint venture agreement with ZCF to operate at the trade centre, aiming to support cooperatives across Zambia. While the project initially showed promise, Moffat Mangoni, Secretary General of the union, later discovered that ZCF was not the sole owner of the trade centre.
The union has since engaged various government bodies, including the Ministry of Small and Medium Enterprise Development, State House, the Anti-Corruption Commission, and the Drug Enforcement Commission (DEC), in an effort to resolve the issue.
Despite receiving a letter instructing them to vacate the premises, Mangoni said that the union has not complied, as they believe their original agreement remains valid and are awaiting the conclusion of the investigation.
According to the now-disregarded MoU, the agreement included establishing a one-stop business centre to unite farmers, marketeers, metal fabricators, carpenters, tailors, and handicraft entrepreneurs. The aim was to enhance value addition to their products and create market linkages with local and international buyers.
“As a union, we received a letter instructing us to vacate the premises. However, we did not comply because the investigation has not yet been concluded, and we believe our initial agreement remains valid. To date, we have not received a response to our petition,” Mangoni said.
Further, the events surrounding the trade centre have left the membership questioning ZCF’s actions, particularly regarding their handling of the trade centres project and the interests of the cooperatives involved.
Martin Bwalya, vice president of the Lusaka District Cooperative for Farmers – a representative body for all primary cooperatives in Lusaka district, expressed disappointment over ZCF’s decision to take control of the trade centre, despite a Memorandum of Understanding (MOU) signed in 2020.
In an interview with MakanDay, Bwalya explained that the farmers had collaborated with ZCF to develop a business plan, which included daily K1 contributions from the farmers to help fund the trade centre’s construction.
As part of the agreement with ZCF, farmers were required to contribute K1 daily. MakanDay has established that a company called Coops Trade Centre was set up with offices at the trade centre, and Chirwa, the former ZCF executive director, was one of its directors.
“Unfortunately, the business collapsed due to COVID-19 and a theft at the facility, during which all our office equipment was stolen. Despite reporting it to both the police and ZCF, no investigation was conducted,” Bwalya explained.
He added that after the collapse, ZCF provided conflicting information about the project, claiming the building’s rightful owners were demanding payment.
“We later found out that ZCF did not have the land title documents needed to secure a loan with Natsave. When we tried to obtain a loan, we learned that ZCF had already used the title to secure one. We were instead offered land in Northern Province. However, before we could proceed, a new government came into power, and the loan process was halted,” he explained.
Bwalya expressed frustration that ZCF did not give the cooperatives time to raise the necessary funds for construction and made decisions without consulting them. He emphasized that the MOU remains valid.
ZCF acting executive director Munyoro dismissed the unions’ complaints as a “dead issue” and explained that the original plan for the trade centre was to serve as a drop-off point for farmers to add value to their produce. He clarified that the Lusaka District Cooperative Union was allocated space at the back of the facility, while ZCF used the main building.
“They also invited the Marketeers Union and introduced a program called ‘the Power of 1 Kwacha,’ where they began collecting money from their members. We had an agreement with them to implement that concept, but it never happened. Instead, they turned the facility into a marketplace, giving small stands to vendors, which breached our agreement and led to its cancellation,” Munyoro said.
The ZCF was registered in 1973, as an initiative by the primary cooperative societies, governmentand donor organisations for the benefit of its members.
It sells itself as “an apex organisation supported by strong and industrious affiliates, engaged in viable economic activities able to uplift and sustain the living standards of members at all levels of the cooperative movement”.
By Linda Soko Tembo The Zambia Cooperative Federation (ZCF) is mired in controversy, involving a questionable takeover, alleged document forgery, mismanagement, and unfulfilled promises to its over three million members—many of whom are low-income workers—leading to a breach of trust regarding the ownership and operation of the Lusaka Region Trade Centre. Originally established by ZCF Latest News – MAKANDAY