ZACCI commends government for decision to privatise ZAMTEL

1. Mr. Chisulo seems to know what he’s talking about. We shall wait and see how far this privatisation goes this time.

2. mediocre blubbering

3. PARTIALLY !!! 75% is partially

4. Chiguliseni chabe.

5. yes. is 75% partial? and by the way where a you going to find an equity partner who is going to help you run a partially state-owned company in the best interest of the country today? You give that partner 75%? Perhaps go to heaven!

6. #5. In that case Zambia never nationalised the mines. We only had a partial 51% shareholding! You talking to un-educated people. Controlling stake happens at 50+ 1 share, over coy. This means tFinancial, operating & investment policy & decisions will be as they wish. including dividend policy & sacking of 5000 Zambians and the “equal” partner with 25% cannot do or say jack. not even have a say in constituion of the operating board forget MGT. RB Stop lying to people immediatelty and be man enough to call a spade a spade.. you have sold have company thats all. Chisulo is a chancer looking for more board appointments. Where are our ANTI-MONOPOLY & CONSUMER PROTECION laws tht should have gone with this ? CHisulo should sort out ZAIN who are reaping us off with lousy network bfre talking

7. Yes sell 75% but not to a single SEP. 51% of 75% to Foreign and 49% of 75% to an indigineous BLACK Zambian consortium. The 25% float on LUSE and let everyone participate

8. I support comment from ZACCI.They understand the situation better than some armchair critics.ZAMTEL needs fresh capital and fresh ideas.

   The figures below back my claims:
   Zain has 2.7 million subscribers(see their 2008 financial Report).They took over Celtel which started its operations in 1998.
   MTN has 571,000 subscribers(see Sept-08 Quarterly report).They took over from Telecel which started on 1996.
   ZAMTEL has only 155,000 mobile phone subscribers and 117,000 fixed line subscribers.ZAMTEL has been in operation since the early 90’s when it was separated from PTC.
   Summary of ZAMTEL-Low profitability,Low growth,Lack of capital resources,failure by indigenous Zambian management.
   Sell of 75% if possible 100%

9. where are champions of inteligence who called Rupiah all sorts of names when he announced the privatisation of ZAMTEL on the other blog.argue with chisulo now,why have you reatreated to your caves.mwatina umunenu uwasambilila.i always tell you zambians ku chisungu mwapena.understanding ama issues muchisungu mwabwelapofye.

10. We have had a lot to learn from. Lets put this to the test and see how much we are able to do in order to prove that we know what mistakes were made way back when !

11. #9 Walasa lyonse bwe bwe bwe. Apa na Maestro teti amonekele kaili Economics is not tribal based. Ni ink wanwa boyi ! LT Bloggers are very efficient when it comes to attacking RB, shikapwasha naka Teta !

12. #8, indepedent, i couldn’t have put it any better myself. keep hitting them HARD with those facts. facts of reality. we should sell everything else, to taiwan 🙂 to appreciate what we thought we had, and then rebuild or build anew.
    all those whining about the 75% sale of zamtel just create your own 100% telecoms company and give your competition some sleepless nights. that’s what life’s about. just get on with it!

13. The on great thing that may come out of this ZAmtel planned privatisation is that there will be little or no MMD GRZ interference in the operations of Zamtel although I am suspecting that this is a move to fundraise money for the MMD 2001 election campaigns. My comment is supported by the bad MMD GRZ privatisation of Zambia National Oil Company (ZNOC) where the MMD benefited heavily while former Vice President Enock Kavindele got his firinng by late President LP Mwanawasa after he only remitted a small percentage of the documented money he got from the dubious sale connections for appreciation of misruling Zambia.

    Have a blessed day all.
    _
    2 Corinthians 11 + KJV Bible
    11:14 And no marvel; for Satan himself is transformed into an angel of light.

14. The only great thing that may come out of this ZAmtel planned privatisation is that there will be little or no MMD GRZ interference in the operations of Zamtel although I am suspecting that this is a move to fundraise money for the MMD 2001 election campaigns. My comment is supported by the bad MMD GRZ privatisation of Zambia National Oil Company (ZNOC) where the MMD benefited heavily while former Vice President Enock Kavindele got his firinng by late President LP Mwanawasa after he only remitted a small percentage of the documented money he got from the doubious sale connections for appreciation of misruling Zambia.

    Have a blessed day all.
    _
    2 Corinthians 11 + KJV Bible
    11:14 And no marvel; for Satan himself is transformed into an angel of light.

15. On Mr Chisulo “… further advised government to consider an equity partner comprising of a consortium between foreigners and Zambians so that there will be transfer of business and technical expertise from the foreigners while Zambians contribute through their knowledge of the local market“, there is nothing in terms of transfer of technical expertise that Zamtel will receive save some badly qualified foreigners that will replace well qualified Zambians by taking up positions in higher company ranks.

    Thus, I would like the UPND NCC delegates to force publicising of political party funds sources as a must in the new Constitution.

    Have a blessed day all.
    _
    2 Corinthians 11 + KJV Bible
    11:14 And no marvel; for Satan himself is transformed into an angel of light.

16. #14 we should not divert peoples attention from the real issues.The critical issue is that ZAMTEL was poorly managed ,is a loss making entity,lacks an innovative management and is in dire need of capital injection.Assertions about fundraising money for the 2011 elections are mere speculation.HH has just been exposed as a power hungry politician who can say anything(even make wild comments) to score points.ZAMTEL needs $200m capital injection to survive as a viable entity and selling off 75% is the best option.

17. I agree with the many bloggers that are of the view that mismanagement lies at the heart of the problem. Sadly the choice of investors from the poor track record of the MMD will probably be some cheap fly by night entity with an equally poor management track record.

18. I would love to know how this 200 million figure was cooked up. I just looked at a comparitive check on similar african leading telecoms and their figures are way way lower. It seems the pro privitisation crowd seem to only to be interested on service delivery than actually why Zamtel was set up to benefit the zambian people. This just goes back to zambian mentality where people are just happy to see money changing hands on zambian soil but the only kicker is the zambians are spectators watching foreigners get richer.

19. #18 I agree that ZAMTEL was set up to benefit the Zambian people.
    But is ZAMTEL benefiting the Zambian people if it is only serving 155,000 mobile phone subscribers and 117,000 fixed line subscribers while the private companies are serving 3 million subscribers in Zambia?The facts show that most Zambian people prefer Zain and MTN .ZAMTEL is supposed to be the peoples provider but the majority of the population including Kaponya’s on Kantondo street don’t think so.Their cell phone numbers are either start with 0966 or 0977.Lets argue with the facts on the ground

20. #18 I can give you some idea of what contributes to the $200m figure
    1.ZAMTEL currently owes several Chinese banks K250 billion ($50m)-See Post newspaper article on 21/07/2009.
    2.ZAMTEL owes NAPSA(unpaid contributions)
    3.ZAMTEL owes ZRA(unpaid VAT and PAYE)
    How can a company operate like this….

21. Zambians with their inferiority complex. Awe mwandi.

    What transfer of business and technical expertise is Chisulo talking about? Is he implying that Zambians have no business acumen to run ZAMTEL? Is he also implying that Zambians have very low technical know how in ICT?

    So when these bazungus (we seem to believe that only muzungu can develop our industrial base) bring in their business and technical expertise, who are they going to employ to man their business, if not the same Zambians people are now despising. Who are maintaining ZAIN and MTN Technical equipment.

    Government just needs to repay all the monies it is owing. recapitalise ZAMTEL, stop employing bootlicker cadres and ill qualified relatives to critical positions and then develop manpower to maintain its…

22. #19 so just because a company is mismanaged by a few individuals and drives then thats justifies selling it of to foreigners. The people that caused this disaster are the same ones that want it to be sold to really do the math. Zamtel is just not about mobile networks just because it falls behind MTN and zain which am not mistaken use ZAMtel transmitters anyway. Zamtel has zampost, has colleges, transmitters and international satellites has or is about to lay fibre optic cable to service more than four african countries so it’s just not about mobile phone coverage. I am not against privitisation but 75% is just asking to be robbed, if you like seeing zambia in foreign hands why did you fight for independence this is reverse colonialism

23. #22 It’s not about selling ZAMTEL to foreigners but to those who can provide the $200m financing.If Zambians can raise that amount locally,the first question I will ask then is why the country is still poor with dilapidated infrastructure,hospitals with no drugs and few locally owned corporations.We shouldn’t be poor if that is the case.Secondly if we can raise that money from Zambian financiers,why are we still reliant on external donors.The fact is that there is no money in the country and that is why ZAMTEL will get funding only from outside.

24. we need to be extremely careful with strategic industries like the communications heart beat pf zambia. zamtels problems are self inflicted by our own insenstive govt departments. just tell me how much does govt owe in terms of telephone bills. today we will be selling this parastatal on a silver plate and endanger our workers future, this i say becoz of past experience with binani, anglo supreme furnitures, name them, they have come and gone yet our people have become poppers. why dont we learn from the sham of ZCCM privatization?

25. #22,the point on transmitters is the one I liked.Yes it is very true that Celtel(Zain) and Telecel(MTN) used ZAMTEL transmitters particularly when they started their own operations.But the interesting thing is that when they started they had zero subscribers while ZAMTEL where enjoying a monopoly of the industry.What is the situation now,the competitors have built their own Telecommunications towers countrywide(My friend even won a contract),increased their subscriber base and are enjoying profits.ZAMTEL has the mwembeshi earth station,it’s laying the fibre optic cable e.t.c.However ZAMTEL is in the emergency ward right now at U.T.H. with liabilities of $100m on their balance sheet.ZAMTEL went to sleep a long time ago hence their current situation.

26. Maestro Hakucincha,zambia’s most acclaimed phycisist.how are you my bro’.INDEPENDENT is hummering out some convincing points here.can you counter him typical of you.

27. Zamtel was put on the list of state owned companies that would be sold a long time ago, back in the 90s. This to me seems like an MMD agenda. Even if Zamtel was making profits, this government would still private it just like the did with Zanaco. The government should have waited to see how new services of providing fibre optic internet would work out before the put it on sell but the fact that they have not clearly shows that this was already a done deal. It was part of the G8 debt cancellation deal that the late president mwanawasa used to brag about as though he had saved Zambia when in actual fact he was selling the last remaining strategic national assets, Zamtel and Zesco included. The ZACCI chairman is just talking nonsense, we can get skilled people without selling a single asset.

28. The people that want Zamtel know very well that, it s a strategic asset to have in the 21st century. ALL companies, government agencies, private sector will depend on the telecoms infrastructure to develop world class business entities that is why they are pushing to have Zamtel sold off before it starts to boom. This is the same with the mines, they were sold just before the started to make profits. Zamtel is a highly profitable company that is going to change the face of doing business in Zambia and someone somewhere is trying to cash in on this deal. The only reason the private sector was making more than that Zamtel is because the have invested most of their money knowing that they will get them back through profits. Zambia just needs fresh talent that can turn the company around.

29. Zambia needs a coup, a military government or a one party system because it seems there is too much lawlessness on handling national assets with this multiparty system, its like no body care anymore, anything goes these days. The current leaders think that after they are done, Zambia would be no more so they might as well sell everything before the die. I personally don’t see any justification for the sell of such a strategic asset. If the company has been mismanaged then change the management, if the company owes too much debt then let the government bail it out. Selling Zamtel is not a choice, its treason. If they want to bring in new technology and skills then let the foreign players come and set up new telcomms companies not taking over what was built using tax payers money. Crooks!!

30. The best thing would be to float the shares on LUSE so that the Zambians can participate. Is there of just targeting one equity partner who will then be calling the shorts considering their 75% shareholding?
    Could the THE Zambia Association of Chambers of Commerce and Industry (ZACCI) comment as to the viability of floating of shares on LUSE in comparison to an equity partner.

31. sorry, meant: “Is there need of just targeting one equity partner who will then be calling the shorts considering their 75% shareholding?”

32. Nice figures Mr Independent. To.o much emotionalism on this blog. The figures are there for all to see. ZAMTEL is actually not as big as people think. If you look at the numbers. It is so clear the private sector have been paying more tax to ZAMBIAN govt than this ZAMTEL. With these figures I doubt if I would pay 200 million to buy a 75 stake in this company. I would rather start my own. ZAMTEL does not even have a significant market share. Landlines are a dying business. The Data side of thing ZAMTEL has been pathetic and am sure on the Data side of business they probably own like 2% of the market with the rest going to ZAMNET, CuNET, Africonnect and others. This company is probably worth $10 million dollars.

33. Mr Chisulo is speaking like an economist… but the sales of 75 % share is Zamtel is as good or bad as selling the entire Zamtel… First of all no sane business will venture into areas like luwingu based on sound business plan. What everyone is forgeting is that there are universal service obligations for telecoms across the globe… this ensure a telcom provides service to areas regardlesss. If in private hands.. Zamtel may not meet this key obligation. Can GRZ tell us which country literally no control of a national telco. Even Zim has its national operator.

34. The same prosaic problem of not reading beyond what you see in newpapers is making Zambians to lack sight and understanding of impiortant issues. We are easily swayed by cheap political rhetoric and fail to apply our own logic and analyses to issues affecting us. The Privatisation of Zamtel is the best thing that will happen if we are to improve our telecoms infrastructure and make any progress in creating Zed as an attractive foreign investment destination. At the moment no meaningful investor wants to come to Zed coz we simply don’t have modernised telecoms infrastructure. ZACCI I salute you with both hands

35. When you say Zamtel has failed to operate businesswise you are actually saying Zamtel and its Government (ZIG) has failed to run the firm. The bible and the law of nature stipulates that you reap where you sow. Meaning you can’t go reaping and reaping forever without “resowing”. From FTJ through LPM to now RB, Zamtel and its Government has always been abused just like its sister company Zesco by these three Leaders. Sometime back people of Zambia were lied to that Zamtel is 80% Govt owned and 20% for the public. The fact is Zamtel was 100% owned not buy the Zambian people rather the government in power. So funding Political campaigns, presidential tours and name it was the order of the day. The money was coming from the so called Parastatals. For RB since he has just been in power…

36. cont…Don’t forget though that ZAIN and MTN are internationally experienced competitors with the business mind and a lot of money to inject and reinject in there companies. Meaning with your bululus in the Company like Zamtel and its Government as MDs having no experience and doubtful qualifications you can’t run a successful firm.
    RBs predecessors were not quick to sell the company owing to their guilt of how much they sacked from Zamtel. He has also somewhat benefited from the firm. I support this 75% sell of Zamtel Mr. President Sir, in PRINCIPLE. Let the 25% be floated at the LUSE don’t keep it as government because you are currently saying on behalf of the Zambian people and that’s not clear.
    Already Instinct tells me that the Govt is lying about LIABILITIES of the…

37. cont…the company saying they are uncontrollably sky rocketing. It’s a bit to steal from the Zambian people by finding a reason to sell. Be truthful guys. Zamtels MD and the politicians need a serious probe. This is a crucial time for people to make money in their life time. VIVA transparency.
    Other bloggers are claiming that it’s the Govt which keeps on funding Zamtel. Are you forgetting the fact that its actually the other way round and Zambian politicians are crooked?

38. Anyways what will selling Zamtel entail?
    1. No unscheduled reaping from the company unless on agreed business (partnership) terms. CAUTION : Pray hard that it is not sold to the Choncholis becoz they are in good boots with the MMD. Allegations of chineese support of MMD in Chitambo + look at the types of phones coming from China Zamtel and its Government are selling cheaply. Low quality. I wonder if we have a bureau of standards.
    2. Technical Knowhow and expertise from the would be buyers, Forget about Zambian buyers . Business inamikanga. Foreigners will buy it- like it or not. Telecoms is serious business. We are the same Zambians today subscribing to ZAIN and MTN and not Zamtel’s CELL Z.

39. 3. Growth in the ICT sector, Man, Zamtels Stagnancy in business has made internet access cost for the people of Zambia a living nightmare. Telcom South Africa talks about broadband internet access for its people not just basic voice calls on landlines. With about 4 licenses, Zamtel and the its Government (ZIG) has failed to live up to its expectations. Very few house holds in Zambia own computers as the result.
    4. A fair playing ground and finally + A roll out of other services likeVOIP supposedly hindered to protect Zamtel’s basic landline sevices.
    5. A painful fact of profit externalization at the expense of the country’s development
    6. Bra bra bra bra This makes me weep. Ooohh soulless Zambian why destroy motherland
    CAUTION : Zambians Don’t expect a definite gain out of…

40. If there is money to run Zamtel($200m).You can just print it like the USA does, they create money out of thin air.All money is paper anyway and is not backed by anything.

41. If there is no money to run Zamtel($200m).You can just print it like the USA does, they create money out of thin air.All money is paper anyway and is not backed by anything.

42. Mr INDEPENDENT

    Thanks for your most valued contributions. You seem to know what you are talking about. We need more people like you on this blog.

    I said last week when discussing Zesco that the best way for Zambia is to privatize Zesco and Zamtel. Yes we ned to extend these services to rural areas, but this can be done by Govt thru contracts. Already there are many rural people with cell phones. Landlines are no longer the only way to phone. Unless Zamtel is in pivate hands, Zambian or foreign, it will collapse. Let us do what is best for this company. Take it out of the hands of politicians.

43. Bachelor I agree with you. Trying to pull off a quick sale of OUR asset buiolçt and paid for by us ove a small figure like $50,000 is treason. Money owed to Govt by govt does not count. Let prospective investors set-up their own operations. Like ZAIN or MTN did. nothing is stopping anyone. taking over existing infrastructure is not development.

44. 20 AKAPONDO greetings and I am very well, thank you.
    While I appreciate your “Maestro Hakucincha,zambia’s most acclaimed phycisist“, I must clearly indicate that I am far from being anywhere near recognised Physicist Habatwa Mweene (PhD,UK), the current Head of Physics Department at UNZA including other better Zambia physicists like Chartered Physicist and medal winner Kaumba Chinyama (PhD,UK). However, I have made significant contribution to the Physics world in my small way.

    On “INDEPENDENT is hummering out some convincing points here.can you counter him typical of you“, sorry I can’t help for I have pressing National duties.

    Be blest.
    _
    2 Corinthians 11 + KJV Bible
    11:14 And no marvel; for Satan himself is transformed into an angel of…

45. General Motors, until recently the biggest vehicle manufacturing company in the world, collapsed and went bankrupt. Similarly Crysler Motors. Problem? They were complacent. They did not bother to compete effectively with other companies like Toyota and Honda. They were slow to react to customer changing needs and trend towards smaller and more fuel effecient cars.

    Zamtel has suffered from similar disease. Zamtel mgt perhaps thought they were too big to fall or bother about small boys Celtel and Telecel. Look whose laughing now. Zamtel should have always been the leader – in cell phones services, internet services, broadband services, etc. But they were too drunk with …. whatever! The owners, Govt, were just as blind and incompetent. There’s always a price tag. Lessons from abroad.

46. #45 UK-Observer, nicely put mate, brilliant. But perhaps even management’s exposure to what “innovation” is might be below par – may be at the level of some of our unschooled politicians.

47. Goodmorning all
    Enough with ZAMTEL, folks. The decision has already been made, so no need to argue on what’s the best way you wanted things to happen. After all, communications is not even on Zambia’s international trade list,so all this debate is not worth it.

    My personal unbiased opinion: let’s try a new approach with the mines, a new way of marketing our copper assets, let’s do it with an upperhand. There’s no question about it – copper is all that’s keeping the Zambian economy afloat. Scientists have discovered that the HN1 virus which causes swine flu cannot survive on copper surfaces, so they encourage the use of copper vessels for hygiene. Now, if that’s not good news for Zambia’s copper industry?

48. #23 Nobody has 200 million dollars in their pocket whether in Zambia or with the same equity partner. The same equity partner is most likely funding this 200 million from debt finance which the zambian govt would have done the same . So if your idea of using dilapidated infrustracture and hospital with no drugs isn’t even on the same wavelength because those activities are not commercial they are funded by tax payers money , zamtel cannot be bought with tax payers money. The govt has limited resources , the zambian public doesn’t don’t mix the two. The money is there in the country it’s just that you think whatever tax and donor aid which the government takes is all the money in the country.

49. #25 My point being using a mobile phone market as an excuse for Zamtel’s failure is pointless why not compare all of Zamtel’s other sectors like TV transmitters, zampost and others and tell me overall what their competition is like. You lack foresight because just because you see Zamtel in the emergency wing you forget that Zamtel has the power to be and will be one ofsouthern africa’s biggest telecoms companies. But it seems people have to wait to see Zamtel in it’s fullest glory before you realise what a grave mistake you have made by selling it then am sure the cries of disapproval will be deafening. The govt hasn’t even tried other viable funding options to even honestly say that the foreign ownership option is the only way.

50. LT give us proper Not this thing we already about pleeeeeeeeeeeeeeeease

51. Meant to say, “give us proper news” not this Zamtel stuf.

52. #48 and #49
    If the money is there in the country then what is it doing.Are you telling me that the owners of this money cannot see business opportunities ?There is something seriously wrong really if millions of dollars stashed under their pillows and then foreign investors such as Zain and MTN are setting up profitable entities in your backyard.
    I will give you a real situation in Zambia.North Western Energy Company Limited is a new Zambian managed power company which distributes power to to Lumwana Mine’s light industrial area, housing units and shopping mall in Solwezi.They approached our local banks and all refused to offer debt financing.The company went abroad and secured $400 m from FMO, a Dutch development bank.The bank practically owns the company.Andrew Kamanga is the MD.

53. Is Privatising Zamtel in the best interest of Zambia and the Zambian people (Yes/No)?? Please lets learn from the past.

    Looks like Zambia is for Sale! Oh sssssssss.

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