PRESIDENT Rupiah Banda has announced that government has resolved to sell 75 cent shares of the Zambia Telecommunications Corporation (Zamtel) to a private equity partner and retain 25 per cent shares to enable the company operate profitably.
Speaking in Ndola today when he addressed Zamtel management and employees at Zamtel College, President Banda said the partial privatization of the company was the only way to resolve the financial problems the company is facing and enhance the viability of the company.
President Banda said Zamtel needs about US200m to recapitalize it and if that is to be done, it would mean cutting funds from social services such as health and education which is not a better option than privatizing the institution.
He said government will hold the 25 percent and possibly later sell them to the public through the Lusaka Stock Exchange.
He said government will follow the regulations of the Zambia Development Agency in privatizing the institution.
However, the president said the equity partner has not yet been identified but government will ensure that it gets a strong and credible partner who will revitalize the company so that it can efficiently contribute to the economic development of the country.
He added that government will also ensure that the workers who will be retrenched as a result of the privatization are given reasonable packages that will help them sustain their lives while those who will remain should be given better conditions of service than what they are given currently.
He said a successful privatization of the company will lead to improvement of the ICT sector in Zambia and will also serve the interest of all stakeholders.
President Banda urged Zamtel employees to remain calm and committed to work while government works on the company privatization process.
And President Banda said Government will not give an operating license to any new mobile service provider until Zamtel under a new partner is established so as to protect the company.[quote]
The president noted that even though privatizing Zamtel will entail the liberalization of the International Gateway, the company will still have the optic fibre network under installation as its competitive advantage over its competitors.
And Finance minister Situmbeko Musokotwane said government has decided to sell the larger potion of the shares to attract more commitment from the investor.
Reacting to some Zamtel employees who felt the 25 per cent that government will hold is too little, Dr Musokotwane said even if the shares appear small, government will benefit more through tax remission which is about 30 per cent on all the investor’ profits.
Speaking earlier Communications and Transport Minister Professor Geoffrey Lungwangwa said Zamtel is a sleeping economic giant that can bring significant development if its problems are resolved.
And Zamtel Managing Director Mukela Muyunda said Zamtel was capable of contributing to the economic development of the country if the financial problems the company is facing are sorted out.
Mr. Muyunda said the company management was willing to work with government in finding a lasting solution to the problems surrounding the operations of the company to ensure that it once again operates positively.
He however acknowledged government efforts in finding a solution to the financial problems of Zamtel.
He urged workers to remain committed to duty while government works on the privatization process.
ENDSLNN/PK/ZANIS
RB THE MAN BEHIND YOU SEEM TO BE MOURNING FOR zAMBIA.
Abanda aba ndiyo.
75 % is too large!!
The president should let qualified economists to handle the sale of Zamtel shares without any undue political inteferences. Zamtel is not an MMD or UNIP enterprise.
yaba, more people on the streets, and more kids going to bed without food. And i smell a rat in the privatization of this company, i wouldn’t be surprised to hear RB is involved in this deal. This government will put the intelligence of the country in foreign hands! they will have no control over the communication of the country. Am not an economics, but i think they could have found a better solution to the problem than selling the company. Zamtel and Zesco are two companies you don’t sell, because they play a huge part in the security of the nation.
am just 2 years 7 months what will i get my lord pliz help me.
BTW what value did RP Capital place on Zamtel? Just so we compare with the final sale price.
this is why i keep telling everyone that Zambia is a joke, yet some supposedly patriotic bloggers draw their daggers for my blood. What more does one want to confirm that Zambia is one big circus and the master clown was peeed on by a monkey.
When I read such things it disturbs me to think who the govt. consulted when deciding on 25% ownership, aren’t there any financial business acumen consultants in zed. What sane person or group of people would give away 75% holding in a lucrative business away to one private investor who probably isn’t Zambian. 75% holding means the board of directors and Zamtel will br controlled by the private investors and no decisions from minority shareholders(25%) will even hold weight. This is the equivalent of selling your soul to the devil and expecting to be treated well. If theres any industry you should never put in foreigh hands it’s the communication and telecoms industry, simple common sense
How will this be done? Will the shares be floated on LUSE.
Paying off ransom
WHERE IS NINE CHALE, THE LOUD MOUTH WHO WANTED A REASON WHY THIS COUNTRY IS A JOKE. ISNT THIS REASON ENOUGH? 75% GIVEN AWAY JUST LIKE THAT AND YOU SAY THAT IS NOT A JOKE
What say we just sell the whole country and be done with?
Move to enable RP Capital to get their commission
This is the worst economics i have heard in my life. what will the govt do with 25% shares? They wont make any major decisions with that.
Obama, Brown, Putin, Sarkorzy, Chavez and other normal leaders are busy nationalising key assets but our abnormal President Peniza Chiwelewele, in his infinite wisdom, thinks that there can be no better time than this to flog Zamtel.
what is happening is really a shum.what has privatization done in other than worsening the situation.look at Zambia Airways,what happened?we have had private airlines coming on board like Aero-Zambia and Zambian Airways that havent made any sense since the demise of Zambia Airways.Who is behind the sale?is it another issue where politicians are just after syphoning money like it was in the FTJ government where the proceeds from the sale of mines ended up in Bahamas offshore accounts.Zambia is in wrong hands and RB seem not have any grip on the country other than taking defenseless journalists to court on tramped up charges.ala twaluba nomba……WHAT NEXT FELLOW ZAMBIANS?
A Banda, stop bluffing. you, Dora and your sons already know the private partiner company. The people of Zed have just got to learn to put up with your bright choices. Thank you sir, but tizaona kwamene tizafika. Goodluck.
They used to call it treason, now it is called Privatization.
Ba Banda, the best way to go about this is to float say 40% of Zamtel on LUSE. This way we will establish the true market value of ZAMTEL. The next step is to sell 55% controlling shares to the so called ‘strategic investor’. The govt can reserve itself 5% as ‘golden shares’. The formula which RB has layed out is similar to the ZANACO formula in which Rabobank bought 49% of the bank supposedly for $10m while Zambians bought 30% of the bank for $56m. This denotes that Rabobank got 49% of ZANACO for nothing. Zambians it seems have this weird innoculation against of lessons of history!
#12 hold your peace and stay focussed:
No ammount of bad decision can ever turn the Republic into a joke. Cowboy Bush did a lot of damage inside and outside the States – is the USA a joke?
No matter how much the current leadership bashes Zambia against the wall, there is hope for the future generation. The world is changing and Africa will no longer be the scapegoat it has always been… watch the space.
Well do what you have to do. I just hope the investor will not finance the 2011 MMD campaigns as thismove is totally suspect.
Following “He said government will hold the 25 percent and possibly later sell them to the public through the Lusaka Stock Exchange“, please emulate the Luxembourg government which retains lots of shareholding in its SES Astra part-owned company with the private sector. Taxes wil not help solve the issue of National Security when the remaining shares may be sold to the general public. Please, take heed to this advice before the little privacy at State House is invaded by foreigners.
Have a blessed Sabbath Day (weekend — Saturday).
_
Psalm 16:8 I have set the LORD always before me: because he is at my right hand, I shall not be moved.
No wonder the former first lady has decided to relocate to South Africa. it is because of this madness and lack of foresight. Honestly how on earth can you sell a strategic institute to foreigners? i hope Telkom South Africa is not a bidder. i also hope it is not one of the Indian companies
22 continued.
As I am trying hard to end my week’s work before going on a Sabbath Recess, I wish the UPND-PF PACT all the success in its organisation and upcoming elections competitions so that we as a Nation can start protecting the little we have left in after the 2011 tripartite elections with a caring GRZ instead of characters that are always looking for money from foreigners to sustain their political party and hold on ruling us Zambians.
May God, our Creator, bless us all.
_
Psalm 16:8 + KJV Bible
8 I have set the LORD always before me: because he is at my right hand, I shall not be moved.
I almost forgot to comment on the topic at hand:
I personally would not rush to call RB names on this move. Let’s face the facts: all over the globe, avarage companies are either being swallowed up by multinational corporates or closing down. Even here in Germany, the ever glistening Porsche has just saved itself from being flung into the frying pan by the Sheiks. Even the German Govt could not do anything about it. How much more ZAMTEL?
Number 21, you acknowledge that this is a bad decision yet you have hope. you know why because you probably will never come and live in Zambia again. You probably have your residence whereevr you live and you dont care less what happens. How come we never learn, look at the mines, look at all privatised companies, then look at Ndola lime co which is still a parastatal. you be the judge which one is better
I fully support this sale. It is Overdue..Thisis the window to Zambia’s great things in ICT.
# 25 the difference with porsche and Zamtel is that porsche was a private company and not in any way strategic Zamtel is the lifeline of Zambia
ladies and gentlemen those that support the sale have you not seen the effects of privatisation? tell 1 country in the world whrere the national telecoms company is in private hands. It meanss we lose our communication arm. if the new company decides to close Zamtel has any one thot of the consequences
MMD circus! I’m sure this partner is from China.They might as well change the name Zambia to Chambia.We are being colonised all over again,this time by china.
JM,
” Move to enable RP Capital to get their commission ”
RP Capital is a Dany Gertler owned company. I would not be surprised at all if he is buying Zamtel for himself, expanding from diamonds into ITC. Why would we hand over Zambia’s telecommunication company to someone who has such a bad track record of exploitation and human rights abuses in the DRC?
If you want to know more about Dany Gertler, google:
bling bang torah gang
The reason RB is going ahead with this, is because they are being paid off. Remember the $2 million commission Dora Siliya was supposed to hand to RP Capital for doing due diligence on Zamtel? My bet is that at least $1 million of that was supposed to come back to line Dora’s pockets. The whole job costs no more than $50,000.
#25 Nine Chale. You cannot compare porsche and zamtel. Porsche is a company thats struggling and will drop in value as time goes on, Zamtel’s worth will grow tenfold to what it is now in ten years time. Since you are in germany A perfect example would be the german government selling Deutsche Telekom AG to the chinese .Think of it this way imagine zambia 10 years from now and how lucrative things like high speed internet, IPTV, e-commerce,mobile communication and other vital sectors to any nation will be controlled by a foreigner………………………madness
oke this is not in the interest of the country? why dont the MMD take this matter to parliament so that at least MPs can vote. we cant have a situation where three pipo sell Zamtel. Zambians let us standup against this move. only us can make a differrnce. this is our country we cant let Banda sell it off
#29 Ghana, UK, US , India and over 90% of other countries in the world have private telecom companies. It is only backward nations mostly in Africa like ZAMBIA where govts insist on running businesses which they dont even know how to manage!
# 23 i have also heard that rumour that Maureen Mwanawasa is setting up base in cape town. She is relocating from Zambia and she will be practicising law in South Africa
#28 P..star & 32 Slumdog
I wish I could stay longer for this interesting debate but you know it’s Friday, workmates are waiting for me at our favorite pub. We shall carry on another time… talking of China, these are the guys we should watch more closely: if we’re not careful, Bank of China will soon own Zambia.
So long fellers and have a nice weekend!
# 34 IF YOU DO YOUR RESEARCH RIGHT YOU WILL FIND THAT GHAN HAS TWO NATIONAL TELECOMS COMPANIES AND THEY PRIVATE SECTOR DOES NOT CONTROL 75% IN EITHER OF THEM. BT TELECOMS IN UK IS PRIVATELY OWNED BY THE BRITISH PIPO SO YOUR COMPARISONS DONT HOLD WATER
We should be talking about the modalities of privatising ZAMTEL not whether it is ‘strategic’ or not. Zambians can play a role in this by at least offloadingf 40% of shares on LUSE for Zambians. As it is ZAMTEL is not going anywhere but under. It is a pity really that the mobile phone companies in Zambia are being held back just to protect the ZAMTEL white elephant. Recently when Obama embarked on his trip to Africa ; allafrica.com hosted a live webchat with Obama. The participating countries were South Africa, Senegal, Ghana , Nigeria and Kenya. The point being that these are some of the few countries on the continent with a relatively developed modern telecom infrastucture capable of taking part in this question and answer session.
I too say it is about time. Only backward comunist inclined nations fear privitisation. In the UK BT was almost bankrupt until it was privertised. Infact the thousaands of workers laied off helped spur the telecommunications industry by using their taining in a market driven enviroment.
#37 .So called PornStar why dont you educate yourself on the gist of my argument. Look at my contributions from #20. I dont what to be engaged in a back and forth with no ‘structure’. BT is a PLC listed on the London Stock Exchange. Anybody can buy shares in BT or any LSE listed company. There are no restrictions as to nationality. So it is not true that only the British own BT. That is a fat lie and ignorance on your part. For your further information Foreign companies like Vedanta the owners of KCM is listed on LSE and anybody can buy shares in KCM through Vedanta on the London Stock exchange.
#37. The Ghanaian Telecommunications company was first sold to Malaysia Telekom in 2003. The Malaysia Telekom failed to invest in the company as per the sale agreement. This prompted the Ghanian govt to take back in in 2006. Last year 2008 the company was sold to Vodafone for $900m. This incuded both the mobile and fixed line network. The other two mobile providers in Ghana are ZAIN and Orange. Dear Pornstar I honestly do not know where you get your information from; but thanks a lot for trying!
As the national assets are sold overseas, following “IMF loans-conditions-selling out sovereignty plan”, pliticians are left giving the illusion that they are in charge,but simply fulfilling the IMF conditions.
Everybody on this blog needs to calm down. You don’t even know all the facts and you are all just shooting the government down. I think we really are a nation of complainers and whiners. Anyway, I do not think it is such a bad idea to privatize a company that the govt is struggling to run. Better that than cut funding to education and healthcare (as was pointed out in the article). Let us find out who the new owner will be and if you are smart you will buy some of the remaining 25% shares that will be available on the LuSE. I am sure the share price will rise dramatically and make many a Zambian rich. Point is, you bloggers are just out for the blood of RB. True he has been a shambolic president, but this deal does not look so bad.
# 40 the gist of your argument is not the way MMD is taking it thus the general argument that privatisation is not the best way for Zamtel. You seem to be into vodfone and Ghana for your information do you know how many people have lost employement as aresult of the vodafone buy into Ghana Telecoms? Buying shares in Vedanta is not the same as buying in KCM. try and differentiate
CIROC my dear equally you dont know all the facts, so maybe we could base our argument on past experience. How many investors have come in good faith and left the countyr like thieves? Anglo America left us cold, Binani group, Smart centre, etc, they say only a fool can never learn. on paper it may look attractive but on the ground its not. Compare the remaining parastatal companies with the priviatised one then compare who is doing better
TTCL in Tanzania has just parted with a private equity partner and the govt now believes it is better off managing the privatisation process on its own
My opinion is that now is not a good time to sell. we wont get the best price for Zamtel. Secondly the gentleman who compares BT with Zamtel is missing a point. The British have rules and regulations that govern telecoms i dont think we do have that in Zambia. Our comparison should be to RSA and not UK and USA. Ghana is an isolated incidence in Africa and we dont know how well it is doing. It iis time we started making Zambian solutions to Zambian problems.
#36 chale, I’m sure the agreements made by merkel are for the benefit of the nation. I doubt it if RB is thinking in those lines or if he even knows about the outcome. In germany even the outcome was discussed. And all the politicians know why it was done that way. In zambia, as of now nobody knows what is behind this move. So, don’t even compare RB and merkel’s strategies. RB just talks so that people think he’s doing something, but what he does is not well analysed as opposed to merkel.
why dont the so called investors make their own company
And why is it that in zambian we don’t get all the details of whatever development takes place. He just comes out and says “Govt to sell 75% ZAMTEL shares…” Did he come up with this idea today? And I’m sure all the money received/spent won’t be documented and if at all the expenses are documented, they’ll be so recklessly placed that the next government won’t find them.
mwe ma workers ba ku zamtel ala shapwa incito. look at luanshya mine. all of you will be retrenched and laid off without pay. lwenu.
And I bet that private investor is CHINA!!!
lets wait and see ni pa zed apa
prepare for
1.redundant employees: The defect of the system is that some of the workers will be declared surplus. There will be an increase in the rate of unemployment. The unemployed workers will commit crimes in this society.
2.Jobs for relatives: The management of privatized zamtel will provide jobs to their friends and relatives. The deserving persons will be ignored.
3.
3. its all about profit making no care for peoples welfare no more,rural area will be cut off since they are not profitable.
He thinks he is solving problems yet he is creating them.
I hope Dora and Lupiya’s sons are not in this deal.
This is a good move. Canada has got private telecoms companies and yet Canada has got one of the most efficient telecoms systems on earth.
Zamtel has been in public hands and has been a drain on the national treasury. It is high time this company was put into private hands and the money used to subsidize this company can be used elsewhere like infrastructure.
Why must my tax money be used to finance a failing company when it can be used to improve infrastructure?
Sell it off. In fact this is long overdue.
The problem is in Zambia, people are still socialist which bankrupt Zambia and left it $9 billion dollars in debt and mortgaged our resources to the IMF and World Bank.
The same socialists don’t realize that it was their socialism that did this but instead opt to blame a capitalist MMD. Capitalism is the way to go. It has managed to efficiently distribute wealth for over 200 years. Most capitalist nations are amongst the richest nations whereas socialist/communist nations have failed world over. Socialism in Zambia left us $9 billion dollars in debt with our resources mortgaged to the IMF and World Bank.
It is time we did stuff that works. So socialists, just watch how efficiently Zamtel will be run after the privatization.
Sell if off quickly.
This is the way forward for ZAMTEL.Hats of to RB.GRZ will collect more revenue from taxes as ZAMTEL will be efficiently run and make more profits.This increased revenue will then be channeled to peoples welfare,rural development etc.
The next thing RB must do is unbundle ZESCO into 3 units-Generation,Transmission and Distribution.Then GRZ must retain 100% control of Generation,25% of Transmission and completely get rid of Distribution to the highest bidder.Distribution has been ably handled by private entities such as CEC on the Copperbelt
If RB implements the decision to sales off 75% shares in ZAMTEL and also goes ahead with the unbundling and part sale of ZESCO,then he might get my vote in 2011.
Seems we just dont learn.Look at what has happened to all the mines after ZCCM went private -some might be doing well but in a nut shell we would say all gone and people are suffering.Most Industrial areas have little or no activity and now its Zamtel.wapya munzi
47 UMUMBULU IN JOBERG, Look at all GRZ run insitutions- UTH, UNZA even the mines you you are talking about before they were privertised, it was a total shambols. Because of burocracy, medicracy and va bobma mentality Zambia was on its kness. And there was no cedit cruch. This strategic area story dosent wash, thats why we have the most expencive call and internet charges around. Let the market decide freely. If you have a crap service the pipo must have a choice of going elsewere until you provide a resonable service. Next must be Zesco.
Let the asset stripping begin. I’m sure the “PTC” will be sold for ngwees on a kwacha. Sad to see my former lecture and bright mind mukela from cbu fail to save ptc.
Zambians are the only nationality that celebrate profits and money thats going out of their pockets into other peoples pockets. One would think mental slavery emancipation never arrived in zambia because how any african would get joy from empowering foreigners rather than his own countrymen amuses me. The govt gives away 75% and theres people celebrating that? whats next you will donate your organs and celebrate too?
Why not just sell the Presidency or just the all country? Selling it in pieces is just prolonging the pain and agony of being Zambians but with nothing Zambian to be proud off.
Mr President this is not the only way out. Whoever said recapitalisation can only be done by govt. Why can’t Zamtel get a loan. Problem with Zamtel like any other govt company, is the attitude towards work that the staff has. The work attitude is just pathetic period hence poor results for the company. Do a management change. Govt is poor at selling comapnies. Look at Luanshya Copper Mines whre Govt now has to pay suppliers. Country is a joke run by jokers and the rest are just smiling at anything
Ghost Dog, peace to The RZA, Wutang Forever!
Back to the topic at hand…
It’s about time this company got privatised. I know of a man who has over a hundred cattle, yet he fails to pay for his children’s school fees. He just gloats over counting the cattle every day, such nonsense. ZAMTEL has a lot of assets, yet they are making massive losses ($200m liabilities). I’d rather they become viable and contribute to the treasury. I don’t care who owns it. How many of you pay for that rotting landline in your house? Their revenue base has been shrinking over the years due to the competition from mobile phone operators. It’s time they came up with better strategies. They don’t need to disconnect my line when I haven’t paid, that’s why I haven’t serviced my land line the last 5 years!
RB has no plans what so ever for this nation,the security of the nation is at risk ,communication will be expensive since the Govt will have no say in decision making. Fellow Zambians let something be done b4 RB adds more damages to our nation.The whole RB to travel to Ndola to do such a Rubbish thing, Shame. Who are his advisors,Can Teta tell us something,where is Shikas,where is Mulongoti.Pliz RB should resign and pave way for Brilliant people.
Slumdog Shalapungu
ZAMTEL is a company in financial trouble. Unless you have solutions to the financial problems of ZAMTEL, this is the best way to go. ZAMTEL needs $200 million dollars for recapitalization. That will mean $200 million dollars wasted on ZAMTEL when this money can be used elsewhere like infrastructure development. Only socialists use excuses like “externalizing profits” when the govt gets to benefit by taxing the company. Instead of subsidizing a failing company, it is much much better to tax a successful company whether in local or foreign hands. The tax money can then be used in other sectors.
So socialists, come up with solutions instead of just criticizing a good move.
Dkmuntu
What other solutions do you offer then?
Privatazation how many assets have we disposed off and what have we done the funds realised. Have we spent on recurrent expenditures. 2.
Private investors have a tendency of over stating expenditures such that what is left for the goverment to tax on is meagre. 3. Gov’t has no say on what investors pay as salaries so this talk about better pay does not hold water.
#44 Iwe PornStar please excuse me. This is the last time I will try to explain something to you. KCM is 80% owned by Vedanta. Vedanta owns other mining and mertallurgical assets in Australian and Tasmania. Vedanta as a holding company is listed on the London Strock Exchange. So if either you or I buy shares in Vedanta our ownership is inclusive of KCM and other Vedanta holdings. It is the same with BP and Barclays. If you buy shares in these companies on LSE you are buying into their operations or assets around the world as well including their Zambian operations. By the way I couldnt make sense about your ZAMTEL -MMD privatisation ramblings so I will let that one pass. I would have replied if u had used proper English!
Privatization is amongst the worst things that has ever happened to Zambia.
I hope an equity partner does not mean bringing in the Chinese….Look for partners that have successfully transformed telecommunications companies around the globe. It was wrong for Zamtel to get into the cellphone business coz it has not attracted the subscribers it needs to be profitable. Government should sell Zamtel’s cellphone business & use the money from that to pump into Zamtel’s fixed line business. Zamtel needs to venture into the broadband Internet services arena that is where profits are. Money from fixed phone services alone won’t make it a sustainable business as all fixed lined operators are diversfying into broadband because of stiff competition from cell phone operators..
Maestro #24
Am beginning to like that verse
Psalm 16:8 I have set the LORD always before me: because he is at my right hand, I shall not be moved.
I love it when you comenttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttt
Capitalist,my main concern is that the security of the nation is compromised, eg, in military the main targets are communications and power. Secondly I Know one parastatal which does’nt get any money from government but it is surviving ,all we need are good managers, the other example is our own Country,our economy can’t be compared to Malawi why, becoz of poor management, Zambia has a lot of wealthy than Malawi. Compare your own President to any president in the region? May I know if Kabila Has privatised any company in DRC. So our leaders are selfish and aim at enriching themselves.Good Leaders considerspeople first than themselves. over to U Capitalist
If we had a second wholly Government held Telecoms company, I’d drawn from my state of insecurity as all government confidentiality would remain so.
Is this move not equivalent to the State House underground Tunnel exposing that was done by Chiluba when he wanted to get back at Kaunda?
Zambia is a JOKE!
The saddest part is that we have chosen not to learn from the past. One lesson should have been whether we need to privatise the whole of Zamtel or just in part. This move while appreciable could’ve been better if we had even 40%. Then we could let management to be taken over by the other investor who’ll have 60% shares. The past has shown us how we’ve abused parastatal companies. Imagine what Zain’s impact has been in just 10years existence in Zambia as opposed to PTC which has been there from 19pendefikondo. It shows that our educational system does not provide for graduates to be innovative, otherwise in many areas we could have progressed. Also just look at Zamnet, despite it being one of first ISPs on the continent it has nothing to show for. What type of people run these things?
Manyukunyu ,Masukuzemba and Man’ete ba lekisa lifa ona sifumu sa naha.kona lukaiza chani.Amusiye Zamtel yeo besu.Mafelelezo mu kalekisa ndu yanaha.
I feel very bad for all our profit making institutions we are failling to run them .Why saling zamtel.and 75% is just too much.Please Zambians lets GO for tha pact otherwise we are gone.
This move is very good.However I feel 75 per cent is too much.Its a fact that Zamtel is struggling and as RB put it,recapitalising it will definately cost us especially this time of the crunch.This company can only be well managed by private strategic partners who will stamp out the nepostism and the bloated and inefficient workforce.
#69 Mr capitalist you want solutions? have you bothered to read what #2o Mbulawa wrote? Zamtel may be in financial difficulties but that doesn’t mean the only way to solve those difficulties is handing it to foreigners . The govt should have sold zamtel as a last resort after all avenues of getting finance were exhausted from what I see they didn’t even bother to try anything else they just jumped into the shark’s mouth. And which tax are we supposed to make money from? the corporate tax that drops every year which is now at 30% not forgetting all the incentives given to Foreign investors to flee with their money smoothly. Privitisation in zambia seems to mean empowering foreigners, if the govt. was competent they would have given 45% ownership max
What????????????????????????????????????????????????????????????????????????????????????????????????????????
You people that voted for this guy have brought an irreversible curse on Zambia to be felt for generations to come.. Why did you do this ? Why did you play wiht the lives of all Zambians? Why? Lord what wrong have we done?
Not even South Africa have let go of their phone coy like that?. private Equity Firm.. Im too annoyed to continue reading this…
#58 I am of the view that your analysis is not clear cut. Communist China is currently the 2-3 largest economy in the world and is set to become number one in less than five years. Most companies doing major deals or projects are stated owned.
Those of you talking down state owned companies are forgetting that before privatisation started, most companies had limited skills and limited access to technology and competitive information. This is not the case right now where there is general access to technology, skilled human resources and high quality information. What is going on now with this sell is just another grand scandal. A country managed by private entities will be subservient to her funders.
Zambia has lost her sovereign status because it seems the country has turned into one huge corporation, we might as well call her Zambia Plc.
I think it should be clear to any corporation thinking that they can scoop up Zambia’s resources for cents on the dollar just because Zambia has a corrupt government, that this nonsense will stand when a new government gets into power.
The people disagree, and they are not bound by the corrupt agreements their leadership signs.
Remember that.
And all of you guys supporting this are talking nonsense and should maybe take up nationality in the countries you are chilling in where you are happy with what you are getting and your lives. In 3rd world , African, Zambia attracting Credible long term investment is tough. Nobody cares about the level of poverty and jobles rate in Africa or Zambia. to them ,the statistics coupled with literacy levels & HIV infection levels gives them more reason not to come our way or limit all their investment return /payback models to under 3 yrs with litlle or no risk.. They will not recapitalise and pour in $200m dollars. cause by their models it wont work. Risk is to high to wait the long term (10+yrs) as in your Europes & USA.
That income tax story is bogus..Accountants and multicompanies have efficient tax schemes that minimise tax liabilites to the lowest possible level and hire ex-ZRA legal counsels that spearheaded GRZ’s ZRA and Tax reform and Act 1997 as their tax lawyers who work with professional tax accountants. well get nothing. Now up to 10,000 Zambians both Direct and Indiect employess 97% fof whom are low level general workforce and and casuals will have their jobs and contracts terminated. Tehy will not be employed as the new owners who will not need them as will manage for profit. These guys will be paid ma K4m each. NAPSA will take time to pay them their dues. rent in the compounds is K500 pin. Meat is K15pin /kg..
These 10,000 direct employees will not see a $1 of the supposed sales price for the 75% share. And RB even saying taht they will be laid off. essentially tough luck? he could even suggest resetllement farming schemes, or artisan / skills training schemes for them .. like fabrication. telephone maintenance, and maybe help them with fining market for their products.. But just said Tought LUCK. He’s more concerned about the profit that the Coy will make and externalise, than the plight of 10,000 employees, each supporting at least 10 people. He trades the lives of 100,000 Zambians for the interest of a private Equity Firm. Someone talked about Germany.. just keep quiet. We hae all witness the actions they took to save the jobs of their people in motor industry during this crisis.
I dont give a sX$&t about corporate profitability numbers if I have to sacrifice the lives of 100,000 living lives of my people. This cannot be excused by anyone on this blog or govt. I dont care what happens outside the borders of Zambia. but not to my less fortunate people, on our own soil. You cannot trade the lives of people for a quick buck. i hurt . im sore.. guys here from other countries are laughing at me others shiocked apooked at what your zambian president has done.. Im exteremely annoyed
75% is way too little. we need to be selling more, especially to taiwan!!
government has no business running business.
I really don’t understand those people who say that 25% is too little shareholding.Minimum 20% shareholding gives any investor significant influence on the company.
Even if GRZ had for instance retained 49% and the new investor 51%,GRZ would still have no control over ZAMTEL.If you don’t have 51% control over a company the best thing you can get are more appropriations of profit and also have significant influence.In this case 49% profits will go your way.But when it comes to voting there is nothing you can do.
However GRZ does not need 49% of the profits because it will get 35% as Corporation tax and 25% as dividends on the profits.People should also realize that the equity partner could be NAPSA,ZISC etc.A consortium of investors could come together to get the 75% and share it.
efyo mwalefwaya mwakwanisha
Sale of Zamtel started on a bad taste – CORRUPTION. It is likely that the sale will end in a bad taste too – Court cases and/or tribunals
75 gracefulboy greetings. Thanks for “Am beginning to like that verse….
I love it when you coment.” and I will continue doing my best for Zambians, by God’s grace. Indeed, I shall not be move by Earthly characters including the devil with his evil angels.
Jesus Christ is recorded to have said “And fear not them which kill the body, but are not able to kill the soul: but rather fear him which is able to destroy both soul and body in hell” in Matthew 10:28 which gives hope.
May God, our Creator, bless you.
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Psalm 16:8 + KJV Bible
8 I have set the LORD always before me: because he is at my right hand, I shall not be moved.
$200 million is a pittance. The government could easily collect it by taxing the mines.
However, they chose not to do so – because they’re in the pockets of the mining companies. They are too busy ‘protecting their friends’. So they borrow, and sell what isn’t theirs to sell. They don’t tax the mines, so they tax the workers instead. Cowards.
What really has to happen, is that Zambia needs to change how appointments are made in the parastatal companies and the civil service. Only recruit from within the parastatals, instead of giving jobs to relatives and campaign contributors. Executive positions in parastatals should be sacrosanct, and only available to people who work their way up through those organisations, promoted based on merit.
97 MrK Goodday “$200 million is a pittance. The government could easily collect it by taxing the mines.”
I would like to ask from you where you got this kind of arithmetics that is unworkable, If it has been difficult for govermnent to collect from ZCCM how will it be possible from these mines ?
Have a blessed Sabbath Day (weekend — Saturday).
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Psalm 16:8 I have set the LORD always before me: because he is at my right hand, I
#98, such evil behaviour of impersonating me is very sad from you. Kindly apologise for trying to paint my name with disrepute.
Because of your evil, I will right away ask LT to erase your submission. LT, please do the needful and I am asking you to expose the IP address of the sick character who wrote the stuff in posting #98 with that Nigerian flag and please see to it that you ban him/er from you site for misusing your resources to help him/er not to repeat such wicked behaviour.
Be blest all.
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Psalm 16:8 + KJV Bible
8 I have set the LORD always before me: because he is at my right hand, I shall not be moved.
pornstar is right,zed ma jokes fyonse fye. how do you sale 75% shares of an institution with such kind of security stratergy to the nation with plans to float the rest of the shares to the public.next on the list is zambia army,zns ollo fye GRZ. Ma movies ehh.
money na property ba poka fik……………………l…….@ ba task force ili kuti? why not add that fraction to funding of such institutions, but mark chona na max nkole na maureen even the late LPM ARE HYPOCRITES.
#99, “such evil behaviour of impersonating me is very sad from you”
I Really do not know why you are trying to impersonate me with your EU flag. Anyway true bloggers know who the real Maestro Hehehehehehe
Be blest all.
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Psalm 16:8 + KJV Bible
8 I have set the LORD always before me: because he is at my right hand, I shall not be moved.
#99 Bushe LT ni bululu wobe ?
Attention all greetings. Take careful note of some character who has taken the way of the devil in trying to dent my great blogname and character.
I am hoping LT will teach him/er a lesson since I have made contact about this already.
Until the next time, have a good day and be blessed.
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Beware of some evil-driven sick and wicked impersonator using my blogname with a Nigerian flag and sometimes a USA one. I believe his is ba Dr Maureen who has been a terrible loser in debating.
Psalm 16:8 + KJV Bible
8 I have set the LORD always before me: because he is at my right hand, I shall not be moved.
Maestro Hakucincha (98),
In the year 2004, the mines exported $4,000 million in copper and cobalt, of which about $2,400 million were pure profits.
Even if thse profits were taxed at 50%, that is $1,200 million which is twice what Zambia received in donor aid in that same year.
In Chile, there is a 20% tax on turnover, which nets the Chilean state $800 million per year. As you can see, $200 million is a mere pittance.
ZAMTEL is not in need of capitalisation, it is in need of an overhaul of management. What parastatals in general need, is protection from political appointments and abuse by the political class – that is a matter of regulation, not selling off shares for cents on the dollar for kickbacks.
I say – let’s prosecute all those involved with the Development Agreements, and have some discovery. Then, let’s sue the IMF and World Bank for the ‘advice’ of selling off the mines a few years before the biggest rally in copper prices in recorded history. Remember that the IMF punks told Finance Minister Edith Nawakwi in 1999 that ‘copper prices would not rise within my lifetime’.
My guess that the Zambian people were robbed for at least $10 billion in uncollected taxes between just 2004 and 2008.
105/6 MrK greetings. Take careful note of some character who has taken the way of the devil in trying to dent my great blogname and character.
I am hoping LT will teach him/er a lesson since I have made contact about this already.
On Mr “… President Banda says Zambia has benefited a lot from the smart partnership…“, what exactly has Zambia benefited. No or half or whatever percentage truth is not good.
Be blessed all.
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Beware of some evil-driven sick and wicked impersonator using my blogname with a Nigerian flag and sometimes a USA one. I believe his is ba Dr Maureen who has been a terrible loser in debating.
Psalm 16:8 + KJV Bible
8 I have set the LORD always before me: because he is at my right hand, I shall not be moved.
Maestro Hakucincha,
Noted, and I apologize for the confusion. My answer remains the same though, no matter who asks it. 🙂
On the issue of taxation – I was surprised that Chile has already implemented what I have been suggesting for years, that it is much easier to just divert every fifth truck of ore from the mines. No problems with hiding profits, or amortisation of assets, or any of the accounting tricks that corporations use to avoid paying taxes.
108 MrK, great stuff on your “Maestro Hakucincha, Noted, and I apologize for the confusion. My answer remains the same though, no matter who asks it. 🙂 “, what is surprising is that the character wants to ride on my hard and also tarnish my name.
Be blessed and take care.
_
Beware of some evil-driven sick and wicked impersonator using my blogname with a Nigerian flag and sometimes a USA one. I believe his is ba Dr Maureen who has been a terrible loser in debating.
Psalm 16:8 + KJV Bible
8 I have set the LORD always before me: because he is at my right hand, I shall not be moved.
a sad development 75% is quiet a large chunk, and guess who it is being sold to, …………………..
RB, privatising Zamtel will mean that all your telephone calls and those of security wings will pass through private entities. Is this what you want for mother Zambia??
rupia and his minions wants to pocket the money from the sale of zamtel. if they succeed ,they’ ve failed to realise that they are killing us the poor Zambians and their biter ZNBC TV which relies on Zamtel for its signal transmission. sale it and you will realise later when you will be in big trouble!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
The numerous suggestions here clearly show the dilemma that govt is in. About 50% of British Telecom shares were sold to the British public when it was privatised. BT is one of the largest telecom companies in the world. So selling 75% of Zamtel to the Zambian public should not be a problem if we know what RP Capital valued it at. Lets assume for the sake of argument that Zamtel is worth $500 million. If every Zambian bought a single share they would pay $50. This would be less than K300,000 per person. Obviously not all Zambians would afford that but not all would buy a single share either, so Zamtel can and should be floated on LUSE and invite Zambians to buy into it. Funny, when I started I had a completely different view!
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