Transport and Communications Minister Yamfwa Mukanga has revealed that Government will return to the international markets and borrow US$ 300 million to recapitalise state run telecoms firm Zamtel.
Mr Mukanga told Journalists that ZAMTEL is currently limping and failing to compete with Airtel and MTN due to a lack of investment.
He said the US$ 300 million to be invested in ZAMTEL will make the firm more viable and competitive.
Mr Mukanga also defended the decision by late President Michael Sata to nationalize ZAMTEL after repossessing it from its Libyan investors.
He said President Sata did not make a mistake nationalising ZAMTEL from LapGreen of Libya because he was acting in the public’s interest.
“It was not a mistake because that is what the people wanted government to do and government was merely responding to the demands of the people,” Mr Mukanga said.
Total failure now. Can the minister explain what Zambia has benefited from 2012 to date after nationalizing zamtel. If they can’t quantify benefits then the government shouldn’t be allowed to borrow on behalf of the company as there is no basis for doing so.
To engage in an exercise of carrying water in a bucket full of holes from one point to another is a test reserved for Chainama patients to find out whether they are recovering and able to comprehend and to see the world as it truly is. I am no longer sure whether the PF government would pass such a test and be discharged from Chainama. Government companies failed in the past and were privatized. To go back and do the same action over and over again and expect different results is reserved for those who do not understand how to progress. Sad!
In Zambia there are forty (40) State-owned enterprises out of these, seven (7) parastatal companies declared dividends according to Fossil Chikwanda. that is 7/40. The seven are (a) Afrox Zambia Limited; (b) Kagem Mining Limited Company; (d) Mofed London; (e) Nanga Farms Private Limited Company; (f) Zambia National Commercial Bank (ZANACO); and, (g) Mulungushi Village Complex Limited….the rest are fleas which are as useless as PF deputy ministers.
We have always said PF are clueless with vision-less president, Edgar. Their solution for everything is borrowing. How about let qualified people who know what they are doing run these failing institutions? Bishop Chomba, Board Chairman at NWASCO, Father Frank Bwalya , Board Chairman at ZESCO! For PF, solution to burry a hole is to dig another one….
Just look at the number of cars parked there. You don’t so many red cars at airtel or yellow cars at MTN.
Most of the money zamtel makes goes to consumption & little goes to reinvestment.
This is Stupid. whats the difference between MTN, Airtel and Zamtel?? being Government Owned does not mean do not Innovate or depend on Government Funding. If they can not sustain, close them??
Zambian Companies cant think because their leadership are cadres, Not educated and have no clue on running a Business. We cant borrow for this Company.. use that money for something realistic.
Have you not stolen enough you people?
While you are borrowing for Zamtel you should also remember to borrow to compensate the Libyans when they sue Zambia in the international courts for nationalising Zamtel. In reality, this $300m will go into the pockets of PF sponsors for 2016 elections. That’s the sole motivation for this mad decision.
Jay Jay u hav tried young to make me laugh. Did u say fossil Chikwanda? Hahahaha. Thank u
Zambia is in trouble with PF. Eve me an individual can’t borrow like this visionless PF govt. The earlier we kick PF out of govt in 2016 the better although the debt burden will bite for years.
No doubt, the first step to greatness is to acknowledge the mistake you made and recognize the mess you are in. To keep saying or believing that the grabbing of Zamntel was not a mistake in the face of this company’s failure to put money in the pocket of the Government is being short sighted by our respectable minister Hon Makanga.
If ZAMNET was in the private hands, it would have been putting more money in the pocket of the Government. But now it is taking more money out of the pocket of Givernment. God Knows what $ 300 million deployed elsewhere in the economy would do for Zambia.
Bottom line is grabbing of ZAMTEL was a mistake and Government needs to apologize to MMD and Zambians. This company is now taking more money out of tax payers money
I guess the slogan is now MORE…
The New slogan is now MORE MONEY OUT OF YOUR POCKET!!! , how we have fallen from More money into your pocket
You have no plan and you want to retain the same management team with a bloated work force….Insanity: doing the same thing over and over again and expecting different results.
He said GRZ was responding to the demands of the pipo that GRZ grab ZAMTEL. Ok the pipo are also demanding GRZ stop borrowing.
This borrowing by Government is beyond logical economical understanding. Where do they get the courage to borrow and condemn the future Zambian generation into some quagmire? May be we don’t need a government after all. Who is really benefiting from these kaloba borrowings?
So this government is just a government of borrowing. Shame!
The Honourable is right..The Zambian people should be sure of what they are demanding for…don’t just demand anyhow. This are the effects. Even the cartel supported the grabbing back of zamtel, don’t know what they will say this time. The best was to leave it in private hands. We need to face reality and do what is economically viable. There is nothing for free!
“It was not a mistake because that is what the people wanted government to do and government was merely responding to the demands of the people,” Mr Mukanga said.
And if the people wanted you to hang yourself, Mr Mukanga would that be a mistake?
I don’t know why in Zambia we admire failures. Mwanakatwe can’t even run his own family let alone ZAMTEL.
His wife asked us in a squeaky voice why are Zambians afraid to borrow?
Zamtel is turning into a bottomless pit! We are seeing little or no return from all this money that we keep pouring into what is also a very extravagant company, with senior management especially receiving extremely high salaries, all in the company that continues to limp along disgracefully! Enough, let them “sink or swim” unless GRZ can justify our continued indulgence, most of us use mobile services exclusively…
Well said Jeke, then you will see a certain chipuba minister will come and say they have the capcity to run a national airline when they cant run a phone company that has landline monoply. Are airtel and mtn making losses and in need of recpitalisations. Cadres seem to be on holiday today
#Chief MMD Bootliker, the taking over of Zamtel was not a mistake. Zambians wanted Zamtel back in Zambian hands. PF cadre management is what has destroyed Zamtel. It just needs to be in the hands of professionals. For security of Zambia, I wouldn’t trust these Arabs to be incharge of Zamtel. it is even better to give it to the Angolans if we needed to sell it. But we can manage to improve it if we can have right professionals in place.
Zamtel is in a booming industry, why is it failing? Zesco is a monopoly in an industry that is booming but its failing.
Yamfwa is right in one thing, the people wanted pathetic failures (PF), so we are getting the response we deserve.
misusing of money just forget a bout Zamtel coze we have already two existing networks after all there are expensive inseat reducing to make more money there increasing by 100%
The answer is very simple vote out PF. You had chances this year but you gave them power back after failing you.
PF guys are only interested in commissions got from securing loans which is in millions of dollars. that is what they all stand fro starting when Michael Sata and the kabimbas were in government. Nothing more. Just vote them out and bring responsible businessman to run the economy.
I am scared of our leaders,bemoan the people who vote without analysing who they put in higher offices to be lawmakers.Zambians THINK before you cast your vote.Stop a while and check the track record ,self introspection. Are you better off than you were before you voted whoever you entrusted to look after you? Once again THINK BEFORE YOU CAST YOUR VOTE.
Comment: how do u vote? If u want to vote in this website
Here we go again.. More and more borrowing to prop up non-performing entities! Oh, maybe ZAMTEL needs the funds to settle that LAPGREEN claim! Now that is Zamtelligent!
Readers, supporters and haters, The Minister is right. Today research what Telkom Kenya is going through, you are the same ones that cry for ZCCM. Is KCM better than ZCCM, is Mopani better than ZCCM. Stop being empty critics and work hard. Viva ba Mukanga for your bold stance, next get back KCM and MCM.
i am glad that now even that last ***** PF cadre has come to his sence that this useless government is up to no good!
This is what happens when you have a “Flawed Democracy”
Unless the majority of the population is literate, & enlightened, the people will NEVER see the wider picture, & will always vote for these Vampires who hoodwink them, telling them “we are on your side”, whilst acquiring “Opulent Properties” abroad.
Does any sane Zambian honestly believe, Siliya, Katele, Kapita, are in politics to serve them??
ILLITERACY KILLS!!!
Well spoken Keleni..
Illiteracy levels in our country are alarming. This leads to exploitation by these politicians. Mr SATA was just too clever by engaging the grass roots(unlearned) in his campaigns because he knew he could hoodwink them with a few kwachas and promises that bordered on their most prized asset(more money in your pocket) and they would be easily blinded and ready to die for his vote.
Learned ones would read in between lines and make wise decisions when choosing a leader, but the majority are ignorant, illiterate and poor; they are now tossed to and fro by the politicians who know exactly what they want and know exactly what they are doing. And the trend is likely to continue for a long time.
SHAME ON MY MOTHER LAND….!!!
If Zamtel cannot sustain itself just privatise it to MTN or Airtel which are making profits. Image raising free minutes from K3 to K7. imagine how many customers you have lost. Be business minded, remove cadres. Most of the sales ladies are from the North. Be careful.
No more borrowing, we have enough Eurobond
What we need in Zambia is a strong leader like Kagame or the type of Mwanawasa who did not Brooke NONSENSE.
This gvt takes us for fools,anyway we are foolish indeed otherwise they wouldn’t even say this. We are too foolish to put proper people to run our country
Brainsless people ruled by fools will accept this
What is happening in our country is very sad. Sure ba Government how do you justify this debt that you are incurring and still want to borrow more? does it mean that the government is made up of vision less leaders. To be honest you guys have really let most of us down, everything is expensive in Zambia, talk about fuel that has reduced everywhere world wide but alas, not here. How selfish can you be, you have no regard for the Zambian people. Once you borrow that money you are going to make us innocent citizens to pay through taxes, high fuel prices, etc. am really disgusted and so infuriated by your lack of leadership. its so sad to see some people still supporting this mediocre government. Stop taking us for granted. We need to vote wisely
Who are these blind fóols in the International market who are willing to lend all that cash to a government with such credit unworthiness?
ha ha ha hwre we comw some one wants to steal again and this is the only way
Sata was the worst thing that ever happened to Zambia!
Other countries have floods, earthquakes or tsunamis.
We had this idiyot and aswhole that has destroyed our future completely.
Sata and his PF doing Satan’s work for him! May he burn in hell forever.
My only worry is that there could be no other HIPC completion point if we default on our debts in the future. Wait a minute, we will have to just cede part of our country as payment! Sorry, I was just thinking aloud.
Bee Esi, do you know there are people who are alive right now, with full senses and in the form of a human being that can not see the potential of that happening people watch a docu-drama “Apologies of an economic hitman” You will confess this debt we finding so sexy is from satan the devil himself. If you ever wondered why the bible says when you are blessed you shall lend and not borrow that docu-drama will lay it bare unfortunately there will still be some thick cadres that even that wont get through.
Kaloba government, Zambia for sale. What happened to the first eurobound they injected in Zamtel? I supported PF but I think ba Lungu bafilwa inchito.
Please find a partner to run that ZAMTEL with and use that US$300million to invest in other sectors. In telecoms these days just like in airline industries you need strategic partners to create economies of scale to survive not pouring tax payers money into an institution whose management is doubious with no proof of vision to turning around anything since they too over! It is disgusting!!US$300million can build another coal fired power plant or solar farm to relieve us from more loadshedding as electricity consumption grows and rains become more unreliable! We are fed up with this scale of failure and poor management of national resources.
Please find a partner to run that ZAMTEL with and use that US$300million to invest in other sectors. In telecoms these days just like in airline industries you need strategic partners to create economies of scale to survive not pouring tax payers money into an institution whose management is doubious with no proof of vision to turn around anything since they took over! It is disgusting!!US$300million can build another coal fired power plant or solar farm to relieve us from more loadshedding as electricity consumption grows and rains become more unreliable! We are fed up with this scale of failure and poor management of national resources and cannot allow it to continue any more. Before that money is put in Zamtel you need to show the public how zamtel will generate resources to pay back…
this is one of the few comments that actually is suggesting a sensible solution.i like your line of thought.A partner is exactly what zamtel needs.It’s clear the current management has failed and they need to partner with proper business oriented managers who will put everyone on there toes.
You *****s! whats wrong with you? Libyan company made an impact in Zamtel. No wonder you have a vision less leader.
‘Respectable’ bunch of fools in a fools paradise!
Telecoms are money spinners the world over. It has made millionaires in recent times. Even multilateral development institutions have stopped supporting Telecoms because they make a lot of money on their own. Are we saying ours is an exception? Surely it can only mean that this entity is being mismanaged. Think outside the box, move with the times and change the non-performing management structure just in time.
The big mistake was when RB sold a national telecom company to a foreign country. One does it do such things. However, ZAMTEL under LapGreen was rebranded with better offices and staff with a more positive attitude. Go to ZAMTEL today and the attitude stinks. I reported my landline over a year ago and nothing has been done. I have been back a number of times. Zilch! Mukanga needs to realize that the $300 million will not improve ZAMTEL. just like in any government owned company, there is overspending, misuse of funds and a very poor, “I am doing you a favour,” attitude from employees. Besides that full $300 million will not go to ZAMTEL I am sure. Part of it will be pocketed!