Only 3 out of 8 shortlisted companies decide to bid for ZAMTEL
Reuters reports that India’s Bharat Sanchar Nigam Ltd , Angola’s Unitel and Libya’s LAP Greencom have submitted bids to acquire Zamtel, Zambia’s fixed-line telephone operator, a government official said on Wednesday.
The planned sale would make Zamtel the latest state owned fixed line operator being exited by African governments, as Nigeria’s Nitel is in a process of being privatised. In April, Mali’s government rejected a bid for state-owned Sotelma.
The submission of offers for Zamtel marks the start of the final process which has been criticised by opposition politicians, who say Zambians should hold a bigger stake in the company.
Zamtel’s revenue for the year to end-December was $100 million. It is Zambia’s only licensed fixed-line provider of voice and data communications and has performed poorly despite its monopoly rights.
The following companies decided not to bid after being shortlised in October as suitors: South Africa’s Telkom, India’s MTNL and Russia’s Altimo, a consortium of Egypt’s Orascom Telecom and its subsidiary Telecel Globe.
[Reuters]
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India’s Bharat Sanchar Nigam Ltd , Angola’s Unitel and Libya’s LAP Greencom!!!!!!!
India’s Bharat Sanchar Nigam Ltd , Angola’s Unitel and Libya’s LAP Greencom!!!!!! and the winner is????
#2 My guess is India.
Some bloggers at the time said the Indian company is good and upto date with latest technology. That will be good. Concern should be workforce issues – conditions of service, labour laws etc. Otherwise if Zambia cant turn Zamtel, a monopoly, around, selling it is the better option.
For those interested in global markets, here is bbc’s today on the car industry:
Ford has agreed the terms of the sale of its Swedish business, Volvo Cars, to China’s Geely.
Ford said “some work still remains to be completed” but the deal will be finalised early next year ahead of completion soon after Easter.
Ford put Volvo up for sale a year ago to help pay off its debt and make its business more focused.
Similarly, bbc reported last week 18Dec the following:
GM says it has failed to sell its Swedish car brand Saab and will begin “an orderly wind-down of Saab operations”.
GM had been in talks with the Dutch speciality car maker Spyker over a sale. Talks with Sweden’s Koenigsegg also fell through earlier this year.
“We regret that we are not able to complete this transaction with Spyker Cars,” said GM Europe boss Nick Reilly.
GM has been trying to sell Saab as part of its turnaround plans since January.
Sweden’s government said it was sad news but that it would not step in to save Saab. “The most important thing right now is to take care of the employees and the future, how to make the most of their know-how,” she added.
# 4 and # 5 show that buying and selling big companies on the global market is now normal. As we sell Zamtel, we ought to remain calm and collected, be professional and very skillful at negotiations so the people of Zambia can get the best deal.
If true that only 3 of the 8 have bid then its a damning indictment on our so called “asset”. But we will wait for the official statement from ZDA before commenting further.
Fake deals you will see the Libyan company being the winner because Zambia has been used to recieving handouts- I have you forgot about the tractors you recieved for free recently. This will be another ventures just the 1979 deal with Romania. Zyamahala vinata, takali wachimwe wee. When you that country woke up. I still maintain the solution to Zamtel is 50% privatitsation to the Zambian people and buying new technology like Asymetric Ditigal Subscribe Line ( ADSL) and training man power in this technology. ISDN is an option but it still expensive. DSL is the answer.
#6 UK-Zed Observer, you are right on. You show a sober and analytical mind unlike some uncouth dark forces who made the sale of Zamtel seem like a criminal act by the government all because they had a bone to chew with Dora Siliya for her unwavering professionalism in ensuring that the Zambian Airways debt is broght to account for the benefit of the Zambian people.
Fake deals you will see the Libyan company being the winner because Zambia has been used to recieving handouts- Have you forgot about the tractors you recieved for free recently. This will be another ventures just like the 1979 deal with Romania. Zyamahala vinata, takali wachimwe wee. When you that country woke up. I still maintain the solution to Zamtel is 50% privatitsation to the Zambian people and buying new technology like Asymetric Ditigal Subscribe Line ( ADSL) and training man power in this technology. ISDN is an option but it still expensive. DSL is the answer.
# 2 It will be LAP GreenCom of Libya or Unitel of Angola. Unitel are a Consortia that is in Portugal, Rwanda, Mozambique, Syechelles, Comoros, Greece, Cyprus and part of South Western DRC.
Yeah I am for India. they are tops at technology. Looks that RP will be getting paid
That cool for ZED.The people at Zamtel have been on grant and its been tax payers monies since independence.These are companies that just keep up the appearances just to say we have a national asset that cant perform at all.Give it to institutions that can run it competitively on the market.The Chief MMD spokesman has said.
untill we see the benefits of the so called selling ;; I think the selling of companies is the best way to steal from the nation;; just see how mwanawasa fought hard to sale zanaco;; and see how RB has fought tooth and nail to sale zamtel;; what a joke! what shall I sale when I come into power
UNITEL is owned by ISABELA DOS SANTOS (Eduardo Dos Santos’s Daughter-Angolan President). Only in ANGOLA and are the S.H.I.T.T.E.S.T network I’ve ever known. You don’t want to go there. Believe me. I’m bloggin from the centre of LUANDA right now. Ive never seen people this lazy & indisciplined. Don’t even mention the word Portuguese or I’ll scream. Not much to choose from?. Might as well keep it and break it down into different business units that can then be privatised individually in future. Libya/Angola/India.. Hope RB ‘s learned something.
We already know who will acquire zamtel.
R,B was in libya a few months ago.
zambians think that everything foreighn is the best what a shame! zambians themselves are capable of doing a better job than your so called inversters;; what happened to danlop, what happened to kafironda, all infrastructure wil be taken away as what happened to the former companies which where sold
Of course it would be much better if Zamtel was successfully piloted by Zambians themselves but let us not cheat ourselves – how many Zambians have the financial competence to compete with global players? We cannot fortell the future of Zamtel but I’m sure that Zambians will also enjoy the benefits of foreign investment in one way or another.
Besidesl, there has always been something like a golden touch with Asian companies when it comes to IT management, service delivery and service operation expertise, so I would also hope that the Indians are awarded the bid.
dont you know that danlop machines were uprooted and taken to zimbabwe! and also the kafironda factory production was taken to south africa! we zambians are always loosing
Am happy that the Russians are out coz they fail to run their own companies !!!!!!!!!!
INDIA WILL BE BEST.
No wonder those trips to Libya!!!!!!!!!!!! Rupiah Banda has sold Zamtel to Gaddafi.
Libya’s LAP Greencom. Rupiah Banda sold the company on his to the World Food Conference. WOW
Can i ask a question to all you bloggers???After 45 years of Independence has Zambia ever bid to own a company abroad??? Typical inferiority complex somwhere along the line 1964 Independence day has eroded from the Zambian people and govt’s brains. How many companies are actually left that Zambia owns and managed succesfully??? Is this Zambia’s future where only foreign investors can improve the country???What are you teaching the future generation…you can’t own anything or be successful because you are Zambian. Very sad indeed our forefather’s thought Zambians would have pride being Zambian business people with influential companies.
Inferiority complex Analyzed, you have raised very pertinent questions. The sad truth is that the Zambian government is the barrier to Zambian innovation! Politicians have a mentality of crushing the businesses of anyone who does not agree with their perspective. Other countries have governments that are supportive of their national’s foray into new business areas but in Zambia the government believes that God has given foreigners the right to own our resources. Just for the meager kickbacks that they get, government leaders are willing to sell the country for a song! It is important that you guys in the diaspora do something about this otherwise we will not have a country to talk about very soon…very disturbing!
Give it to the indians frm that list i think they are the least crooked, and besides that i have had an experience with there network providers, i.e Airtel, BSNL, Reliance, Aircell, and i tell you they are damn good
Chief spokes watever, thats not true abt Zamtel. Ya we apprct being sold due to various reasons.among the few is that Gvt officials hav got kick baks from mtn and zain for zamtel not to progress. eg we hav the capacity to put all those fancy facilities on zamtel net works like, who called- internet etc, but pipo hav to write to communicatios authority (directors) to apply for that wich is normally turnd down for fears best known to them. our gsm is not somthng we ar pround of, we ar beta off being bot so that we can work with atleast 25% bother from Zambian Gvt
Dear all,
This ought to be our saddest x-mas gift! Angola/India/ Libya! Why would’nt the other five bid? Simple! They are listed on some of the world’s most respected SEs. They adhere to the best principles of sourcing for capital and acquring assets and are not easily moved by politicians even as they are! I rule out the Angolans but i know how cunny and corrupt the Libyans and Indians are! Even when Zamtel is profit making the Indians will ask for all manner of Tax rebates and five years down the line we will not benefit anything! After five years and it will be time to pay taxes, only cellz and the optic fibre links will be alive. Workers will be highly demotivated and highly experienced personnel will be ‘supervised’ by poorly trained/qualified boys from Indian colleges! Mark my…
Telecommunications maybe advanced and cheaper in India or the other two countries but there is no guarantee that these factors will be transfered to the Zambian situation! MTN is chaeper and offers better services in South Africa just like Zain is Cheaper and offers better service in Kuwait! This is the promise they came with to Zambia! The cost of doing business in Zambia is too high and not attracive to real and forward thinking business. Only those that want to reap quick profits and offer not so sustainable solutions to our problrms! The choice of RP could have been our downfall! Next time we should use serious evaluators like Pricewaterhouse, Delloite, Grantthorntone using their foreign offices/officials if we dont trust their local agents! Politicians to stay out of business matters!
The Govt is the largest culprit in the collapse or non profitability of Zamtel because they dont pay their bills on time. I wonder how GRZ will operate when they no longer have a controlling stake in Zamtel.This circus has to come to an end or we shall live to regret selling our vital asset.We need forward thinkers not a brother who is always flying around and oblivious to the situation on the land!
Please read the reviews on desicrunch dot com and judge for yourselves.
ZAMTEL WORKERS NOT CERTAIN ABOUT THEIR DUES”’
AS the sale of zamtel gets in to gear ..the workers are not certain as to whether they will recieve their separation packages…yes there is this talk about 3 months pay for each year served for those who will be retrenched ….but we are not certain for those who will remain….we are made to believe that our money will be kept some where like it was with zccm….and zanaco.
Can some one shade more light….coz those who are going to remain need their separation packages before engaging with the new owner…………
#24 Inferiority Complex.
When you are selling something, only those with money will buy. Hope you have read posts #4 and #5. Here in the UK, the British do not own any car manufacturing company, yet UK is rich and has a big car market. All British car companies are now owned by foreigners. Indians bought Juguar and Range Rover. Chinese have bought Rover; BMW bought Rolls Royce. In football, the Biggest British clubs are now owned by foreigners. Right now, Americans want to buy Cadbury, the British chocolate maker.
Zambia has failed to run state owned companies. Fact. Zambians do not have money to buy and run the companies the State is selling. Fact. So where do you sell them – the international market, the global market where anyone in the world can come and buy.
#32 James Banda
There’s a statutory severence pay – could be 1 or 3 months pay. Beyond that it depends on the individual company and conditions prevailing. Be advised to consult your trade union representative, or your front line manager. I suppose you pay some membership fee to your trade union. So then you pay them to represent you, you have the right to be uodated.
Dont compare Zamtel to other companies. Anyone who has been retrenched more than once will tell you no 2 situations are the same.
zamtel should be sold off and i would put my money on Bharti. Bharti have great experience working with Swedish, British and other telephone service operators and all their JV’s made money for their partners. Zambians need to open up and realise that being zambian should be for people that live and work in the country irrespective of where you are from. people on this page criticising foreign investment live in countries that have embraced foreign investment. fact is, zambia is a poor country and how much can a country grow from its own resources? you always need a cash injection.
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