The President has defended government decision to privatize ZAMTEL saying the move will help improve the status of technology in the Parastatal.President Banda said the institution was important to the country, hence the need to find investors with financial capacity to improve its operations.
President Banda told Zambians living in Uganda that government took a bold decision to private ZAMTEL while retaining 25 percent control of the institution.
He said government would in the process limit issuance of licenses to those wishing to set up mobile phone companies to enable ZAMTEL recover and operate competitively with other privately owned cellular companies.
“Government took bold steps to privatize ZAMTEL because of its strategic importance to the country,” he said.
He said ZAMTEL needs to play a crucial role in enhancing the access and utilization of Information communication and technology (ICT) by Zambians.
“We don’t have money as a government to pump into ZAMTEL but if there are others with the money to do so why not allow them?” he said.
President Banda is in the Ugandan capital, Kampala attending the 19th
Smart Partnership Dialogue which closes this evening.
ZANIS
It will improve technology but what about the rumbling stomachs from starving people that have nothing to digest but air. Reversed prioroties focusing on luxuries before more important things.What kind of person thinks better technology is better than having a full stomach. All i hear is how technology and networks will get better but what about the quality of life of the common man ? The public weren’t even privy to the negotiations and decision making, how silly is it that the same govt that put zamtel in trouble is the one gift wrapping it for foreigners.
We shal wait and see whhat will happen after this suspicious transaction. Sometimes we have to give the benefit of the doubt because if ZAMTEL improves, we will be the same people comdemning FTJ for his fake privatisation and praising NS for his success high-risk manouevre ! Wait a minute what is Maureen doing in the delegation ?
#1 Slumdog Shalapungu Poverty will always be there, but better technology assures attraction of better investment which in turn can provide better jobs to feed those hungry stomaches
“Government took bold steps to privatize ZAMTEL because of its strategic importance to the country,” he said. This is where the problem is. The government took wrong bold steps because of ZAMTELS strategic importance.
#3 just because povery will always be there doesn’t make it okay to create a condusive environment for it to perpetuate. Better technology doesn’t attract investors because investors bring their own tech which they sell to you at extortionate prices, investors want high returns in profits they don’t want technology. All this celebration of technology and yet have you asked yourself how much it will cost to the common zambia? people are already complaining about electricity.
It making very very little sense
Is this foreigner going to allow zain and MTN access to use mwembeshi satelites? what about the international gateway and security? how have these things being tackled? this foreign investor should be a very trusted one such that we will let all these to be in his hands, GOVERNMENT OWES MORE THAN $100M LET THEM PAY. Even u Rupiah your government should be ready to start settling bills on time to this foreigner. AT LEAST FOR THE ONE YEAR OR MORE U ARE IN THE OFFICE.
Most of the Zambians support the privitisation or commercialisation of Zamtel. But what we want is transparency of disposal of this Assest or liability? Everything for now looks suspicious and RB is playing in dangarous waters. The stinking matrix is already visible: the RP Capital with his son Henry behind it and Dora Siliya being the Flag bearer. Where is the report of this RP capital. Why is RB and his cronies peddling darkness of the night. It is not difficult to evaluate Zamtel Assets as most assets is capital infrastructure which has life span.
Maybe it is time to arrest all the former Zamtel MD who reigned from 1998 to 2008. In mind Ihave, Kumar, Mutesha and recently Simon Tembo. A tri bunal on these would assist to understand how they abused Zambia and sunk it to this level
That’s true but also point out the fact that Govt’s hand deeping in Zamtel now and in future will be curtailed. Bravo and good move. Iwe bwezani don’t forget to pay retrenchees handsomely. I know you will fatten the cow on this move, sir.
Viva Vasco da Banda the country is with you this time. Don’t sell Zamtel to the Chineese though, I have a gut feeling this is your weakness.
INDABA resolutions at work Lol!!!!!!!!!!!!!
Hey! It seems no one will change this man’s mind, come sunshine or rain. So let him go right ahead. You have failed to convince him once. Probe him if you smell something fishy later.
#5 Slumdog Shalapungu, Well then GRZ should just make sure people are not exploited at the expense of better Technology. But Zambia could definately do with some better and modern Technology. Better to pay high for an effeciant and effective technolgy than less for very slow & dodgy tech
Bold decision indeed.
Mr president you are just implementing IMF policies.
Search for Africa Business Forum 2009 George Kunda on youtube
In 1994 the PTC was split into three autonomous bodies: ZAMPOST, ZAMTEL and the Communication Authority of Zambia (CAZ).CAZ is a statutory body established by Act of Parliament, Telecommunications Act No. 23 of 1994.
The Act confers upon the CAZ the mandate to supervise and regulate the provisions of the telecommunications services and products, to promote competition and to ensure that the benefits of this sector accrue to the Citizens of Zambia and its economy.
People should not feel like selling 75% is like giving the entire telecommunications industry away.GRZ will still have control through CAZ.The investor will have to get a license from CAZ to operate in Zambia.GRZ will have a share of the profits through Corporation tax(33%) and 25% of the declared dividends.Don’t be scared…
Some bloggers really amaze me! Do you have to object just for the sake of it? every right thinking perosn knows that Zamtel needs this lease of life. The President went to great length to explain why at his last press conference by comparing Zamtel and Zain. And people still want to Zamtel it is not a good idea to privatise. This kind of thinking is what make some of you work for somebudy perpetually while those who think ahead are creating their own businesses. what a pity!!!
#15, any sale which is preceded by a valuation needs to have its valuation report published. What people are saying is that RP/RB capital took US$2m and valued Zamtel assets so let us know what assets Zamtel has, their value, their debts and then we decide as a nation the best options. You cant ignore the AG’s advice, pay US$2m and then you direct that 75% shares be sold. Why didn’t you ask us what we can do after the report on the valuation. We clould possibly have tried to recapitalise by borrowing against ZAMTEL ‘s fixed assets or we could have prosed a Management buyout. Why is RB hiding? Since when did presidents become SALESMEN. Doesn’t he know his job description? Listen to Magande mwefipuba mwe!! Nimwe mwawishile ichalo na ka kapompwe ka Chiluba!! Mwebe imitwe!!!
Elo lelo ninseka sana – Ilyashi Mulongoti vs Mpombo . Mulongoti says he is a lawyer and Mpombo says he failed law. And these two were minsiters together ka. Yaba, so Mulongoti wabufi tee, If Mpombo hadn’t resigned, when were we going to know that Mulongoti wabufi tasambilila? They say empty tins make a lot of noise and this explains why Teta and Mulongoti make so much noise. They are empty tins running Zambia. What do you expect ‘bwee bwee bwee’ all the way to the bank. And this reminds me, look at the way Mulongoti walks, as if he is the greatest man on earth. What if he had 100th (1/100) of Obama’s brain, the whole world would sink under his weight but he will never have even 1000 000th (1/1000 000) of Obama’s brain or that of NASA scientist Loveday Mweene!!!
I am yet to see a company that has been “sold” and is benefiting Zambians! I may be wrong though!
What happened to the reserves left behind by Late LPM? Will Zambians just watch as all that money is spent on Presidential tours, the NCC, Commissions of inquiry and the none performing Task Forces? Can’t that money be more meaningfully used to recapitalise ZAMTEL and ZESCO, improve technology and capacity and ultimately save jobs, and probably even create more jobs? ZAMTEL has in fact been laying the fibre optic cable which, even here in the UK, only Virgin Media boasts such a facility at the moment. Is that not an attempt to improve technology.
Government should just pay up its debt to ZAMTEL
If a private company in the telecomms industry Afri-connect can complain about the attitude of government towards technological advancement, how will the sell of ZAMTEL to a private entity circumvent this problem? Will the buyers be accorded preferential treatment on account of being friends of the sellers?
ZAMTEL has apparently been deliberately starved of the needed financial resource input by those in government with ulterior motives, so as to lower its competitiveness and value and declare it insolvent.
We will never learn
Capitalist na banobe mwe bale supporta ifyabupuba I hope you’re now seeing beyond your noses. “Limit process of issueing new licences to allow the new owner to recover & compete” totally against free market, capitalist principles. Anti-competitive actions which should be outlawed as in all Western countries. RB has given who ever these people Presidential Guarantee for investment epriod unknown to everyone. Technological advancements only happen through effective Competition. Competition fundermental & is the basis for free market principles. “Why stop someone who has money from running the coy”. What about the 5000 who will be laid off. he said it himself. There’s nothing hrd about selling something.. He reeks of corruption
We want to see the monopoly of the international gate way by Zamtel ended. That is why Zambians pay the highest ICT costs. Zambia is lagging behind its main african competitors in Fiber optic networks because of Zamtels dismal failure to advance land lines. This failure means there is no cable routes in place to lay the fiber. We have to start from zero. Zamtel has failed .Period. You can not polish ma 2V. no matter how u try to polish a piece of shit, it remains a shit.
We want to see the monopoly of the international gate way by Zamtel ended. That is why Zambians pay the highest ICT costs. Zambia is lagging behind its main african competitors in Fiber optic networks because of Zamtels dismal failure to advance land lines. This failure means there is no cable routes in place to lay the fiber. We have to start from zero. Zamtel has failed .Period. You can not polish ma 2V. no matter how u try to polish a piece of 2v, it remains a 2v.
Tukalanda tukalema things will always be like this in Zambia as long as brains like yours keep on being enslaved by your host countries to sustain their powerful economies. my dears Diasporadias lets begin giving back to our dearest country by going home & becoming Investors, economists and politicians twachula pafula. It will only take a few of the hundreds of zambian intellectuals scattered abroad mouthing abt things their will never have contrl of FOR Daderheads like Mulongoti & Teta to continously slander & exploit our beautiful country LETS GO & KICK THESE MAGGOTS OUT