Sunday, February 25, 2024

Libya chases Zambia’s offshore assets to get due LAP GreenN payment


Libyan telecommunications company LAP GreenN is considering chasing after Zambia’s offshore assets after Zambia defaulted four times on an order to pay $257 million in compensation for nationalizing a firm it invested in.

Zambia owes state-owned LAP GreenN more than $400 million including interest, and has defaulted on payments totaling about $220 million following a 2016 consent judgment in the Lusaka High Court.

The company has “patiently” sought an amicable resolution, while Zambia has avoided and delayed paying, LPTIC Chairman Faisel Gergab said in an emailed statement.

LAP GreenN “will pursue all avenues or recourse available to it should the defaults continue” and wants to recover the full amount due, he said.

The country’s portfolio of international commercial assets is at risk of attachment, Gergab said.

Zambia’s Finance Ministry and presidency didn’t respond to requests for comment sent via email, phone and text message.

Felix Mutati, who was replaced as finance minister in February, acknowledged the LAP GreenN debt to lawmakers in October, saying the government was “dealing with the matter of compensation.”

The compensation order dates back to LAP GreenN’s 2010 purchase of 75 percent of Zambia’s state-owned Zamtel Ltd., which the government seized 18 months later.

The company’s plan comes after investors including Nomura International Plc and Bank of America Merrill Lynch expressed worries over Zambia’s dollar-debt levels, suggesting the totals may be higher than government’s estimates.
The Finance Ministry says its official numbers showing $8.7 billion of foreign debt are accurate, and urges anyone with proof to the contrary to present it to the government.

The default “has to be a red flag” for investors, said Jay Auslander, a partner at Wilk Auslander LLP in New York who specializes in judgment enforcement and distressed debt litigation.

Moody’s Investors Service and Fitch Ratings Ltd. declined to comment. S&P Global Ratings didn’t respond to an emailed request.

Zambia hasn’t defaulted bonds or loans since 1983, Moody’s said in January.

Yields on Zambia’s $1 billion of bonds due in April 2024 rose 19 basis points to 7.73 percent, the highest since April 11, at 9:14 a.m. in New York.

The missed payments following the 2016 order mean that LAP GreenN could pursue Zambia’s assets, Auslander said by phone. “This was a consent judgment, it’s fully enforceable.”

It could also amount to what’s known as a cross-default in Zambia’s prospectus for its $1.25 billion Eurobonds due July 2027, he said. That would mean investors holding 25 percent of the notes could declare the debt immediately payable, though it’s unlikely they would do so, he said.

The International Monetary Fund, which said in October that Zambia is at high risk of debt distress, is only aware of LAP GreenN’s claim through newspaper reports, it said by email.


  1. What else shall we expect?

    Has the Hon. Minister of finance included this debit in the list availed to IMF?

    • And what was Mwanakatwe saying in America ??? We are on course for all debt repayments and have not defaulted on any. How do you expect IMF and investors to believe you now …eh??

    • To borrow Mwanakatwe’s statement : “You cant hide Debt. It’s like a pregnancy”.

      How can Zambia fail to repay $300 million to Libyans? What more the Eurobond? In a single day in 2022, Zambia must repay US$750 million and then in 2024, it must repay US$1 billion. The third Eurobond of $1.25 Billion will be paid in 3 equal installments between 2025 & 2027. Then there are Chinese loans that also need to be repaid.

      Tighten your seat-belts bane. We are entering turbulent airspace. The chickens have come home to roost. When we tell you to open your eyes, you answer us with insults.

  2. And if we fail to pay Lapgreen such a small amount, how are we going to pay the Eurobond billions in a day? Miles Sampa and Alexanda Chikwanda must help us understand what they were thinking by getting us into such bondage which was totally unnecessary! It is clear the chaps running the show now don’t understand what is about to happen to Zambia’s assets – even Zambians in this case are going to be assets – slaves repaying debt through higher taxes! Wina Azalila. It will be tough for the next 100 years!

  3. Mwanakatwe is such a misguided minister who does not know whether she is going or coming. This debt will soon reach US1 billion because of their inept and careless approach to serious national issues. Opening one’s mouth without facts will come back to haunt these misfits whose ideology is not known. Running the economy on kaloba is bush economics which is outdated because as soon as you pay your debt you ask for more debt. First you insult the IMF and now you sent that reckless borrower with more begging bowls without shame.

    • Lap Green pumped in the money. Sata came and reversed it. So how do you think they will recoup that money? Ideally they should have agreed to a buy back after reaching certain targets. You can’t take $500mn+ and expect no compensation. All the African countries that borrowed from the Libyan sovereign wealth fund, have paid the money back. So treasury better figure it out

  4. You default on any payments and your prospects of further borrowing at normal rates is almost impossible…..and you think the IMF will risk their money ?

    Just raise more taxes so they dance dunnuna reverse in straight lines next time….

  5. Countries get governments they deserve, you saw ECL’s photos from CB. People think this presidency is OK. I’m shell shocked by the levels of ignorance in Zambia. Right now I don’t believe in African majority rule because the majority do not know anything, therefore, the wisdom of the crowd is squarely wrong in this case. BTW this true and applicable to the entire Africa.

    • Very true, that is why the somewhat educated in eygpt over threw the majority elected by illiterates of illiterates of mosi and the brotherhood with the help of the West…..

    • Mugabe still has supporters in spite of ruining Zim.
      Zuma also has a large following in spite of destroying RSA economy & stealing billions through the Guptas.

      It’s so amazing to watch how Brain-washed Zealots support a Malawian Thieving Drunkard even though it’s clear that he’s destroyed the economy whilst stealing/looting from them big time. They even want him to go for a 3rd term.

  6. African governments thrive on the ignorance of the people they lead and they are very happy to keep the people that way (illiterate). imagine the way the economy has turned out to be just a few years after PF government came to power and then you see some “kaponya” still celebrating PF! its shocking. People on the copperbelt are villagers who think because they have electricity and are able to see a tarmac road, they are now civilized. You decide in mass to vote for a presidential candidate who has already told you that he has no plan for the nation but you insist on voting for him because he speaks bemba- just that! poor villagers!

  7. Inkongole. Hahahaha, Ba PF cadre have disappeared on this topic. All those guys with Zambian flags have disappeared. Hey, Libya, just grab Lungu and his plane please. You can have him. Or take his stashed money from his off shore accounts. It was supposed to be your money but he stole it and made it his. Grab the Malawian.

  8. I remember the debates on Facebook about the repossession of Zamtel on Facebook and LT …now the debt is twice as much and the company Zamtel has not recorded any tangible profit.
    My only question is did Mutati make any payments and to whom as Libya has several factions running the country..its a failed state thanks to the Obama and US.

    • Gaddafi unlike these other leaders set up a $66bn sovereign wealth fund from the oil money. That fund has not been frozen as it’s held in an Arab state. The US/EU cannot touch it. No payments have been made to them, otherwise they wouldn’t be seeking assets to seize!

  9. #7.1 Spaka lilo, woken up conveniently on another topic? First tell us what you think about the apparent mental.madness and hallucination of his Royal LOWNESS chieftainess Mukuni. Then we can discuss LapGreen.

  10. How come this article has no author or source? Why hide if you’re confident in your claims? The article doesn’t even state when exactly the repayment was due from GRZ. There’s a serious media campaign against Zambia & which doesn’t appear to be reducing despite Cambridge Analytica being found out. The good thing is that God is our portion & we will come out on top as a country. God Bless Zambia

    • True. God is our portion but if you mess up your life (in this case nation) then you suffer the consequences just ask king David. God was his portion but he messed up his life and look what happened to him. His child died, problems arose in his family. Knowing God is not an excuse for making stupid decisions.

  11. Article may not show author but we cannot deny existance of Lap Green debt.
    Our problem is that our petty politicians make decisions out of the state power and not from economical sense this putting the country in economical setbacks

  12. I sensed this situation the moment our government renationalized Zamtel. Now we are embarrassed. Zamtel coul have bren better with private shares andobvioysly we can not reposses without paying back. What a lesson!

  13. Just give them back their company. Tu mapolitics twina sivinthu!!! Within 90 days we are taking back Zamtel. Disaster politics. Now its running all over like a headless chickens. Just give it back to them after all you cannot pay back that kind of money in a short time plus other debts to the Chinese chocholis iliko liko.

    • Malawi has no ‘debts’? that id day dreaming. The country does not even has money to pay workers.Once international workers salaries go to the back. the owners have to make at least 2 to 3 trips before one is paid. So stop comparing oranges and bananas. This does not mean I support the govt on this Lapgreen thing. The guy who grabbed it to punish MMD is lying in peace

  14. HaCompany Similar to HaPanama papers! They deserve nothing! Zambia paid back the money. These are the companies that defraud our nation just like HH.

  15. This is when I’m reading this article! It doesn’t look good! I have to agree with @simangulungwa kayama better to just give them back their Zamtel- paying this huge amount plus interest will not make sense! Better to give them Zamtel hopefully with the initial terms which I hope are in the best interest of Zambia- terms such as LapGreen would not dispose of assets belonging to Zamtel inorder to recoupe their funds but would continue to operate the company in the best interest of customers. Give them back their Zamtel and at least even ZRA will be able to collect ka small ngwee from taxes rather than paying them excess of USD300million! Where is the country going to get this money?

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