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

Development (UPND) electoral pact has inspired other political parties to form an electoral pact.

National Revolution Party (NRP) Cosmo Mumba confirmed in Lusaka today that consultations are underway among political parties without representation in parliament for the possible formation of an electoral pact.

Mr. Mumba said the proposed pact is likely to be the biggest and strongest pact as it is targeting all registered political parties in the country without representation in parliament.

He said the pact would be all-inclusive as it would seek to encompass diverse views on how the country should be run and developed.

Mr. Mumba said the idea behind the formation of the pact is to ensure that there is political stability in the country ahead of the 2011 general elections.

He disclosed that so far 16 political parties have been approached of which four have responded in the affirmative.

Mr. Mumba, who did not disclose the names of the four political parties, said the four parties have since entered into an agreement that spells out how the pact would function.

He said the consultative process was a painstaking exercise as it looked at pertinent issues that include consulting various party members at the grassroots about the possible formation of the pact.

Mr. Mumba pointed out that the political parties without representation in parliament are cautiously proceeding in a bid to ensure to harmony in the pact.

He accused the Patriotic Front (PF) and United Party for National Development (UPND) pact of failing to fully represent the views of their members due to lack of consultation and planning.

Mr. Mumba said the current status of the PF/UPND pact was likely to bring about confusion among members of the two parties due to lack of consultation.

He said the consultation team for the possible formation of another electoral pact has since engaged the Zambia Centre for Inter Party Dialogue (ZCID) in all its discussions.

Mr. Mumba said the idea to engage ZCID is meant to encourage dialogue among the parties involved and avoid any forms of animosity.
ZANIS

Home Affairs Minister, Lameck Mangani said in Lusaka yesterday that the Government would not allow what occurred at Lusaka City Market on Wednesday when rival political cadres took over the market and claimed specific zones.

Police officers yesterday dispersed a group of cadres who attempted to collect levies as was the case on Wednesday.

Mr Mangani said police officers would deal with law breakers and that the Government could not allow partisan politics to disturb the smooth running of Lusaka City Market and other markets.

The minister directed Inspector General of Police, Francis Kabonde to investigate the matter and ensure security was maintained at the market.

He said his ministry was committed to ensuring that lawlessness was stopped and that all law-abiding citizens were allowed to operate in a peaceful environment for the well being of all citizens.

He said the Government regretted the disturbances and that it was clear that the cadres did not take their action in the interest if the nation.

Calm has returned to the market while police officers have been deployed to maintain law and order.

Confusion reigned at Lusaka City Market forcing business to come to a standstill as cadres fought for control of levy collection from traders.

The Lusaka High Court last week granted an injunction to the council restraining people purporting to be MMD members from operating from the market and levying bus operators and traders.

The council had, however, failed to enforce the court order and yesterday another group of rowdy youths claiming to be members of the UPND and PF stormed the market seeking control.

[Times of Zambia]

Deputy Minister of Agriculture and Cooperatives Daniel Kalenga says the move is aimed at easing the operations of agriculture extension officers.

Mr. Kalenga said the vehicles and motor cycles would also help motivate the field officers who are instrumental in knowledge and technological transfer to farmers in rural areas.

He was speaking in Lusaka today at the 38th graduation ceremony of the Natural Resource Development College (NRDC) when 190 students graduated with Diplomas in various agricultural fields.

Mr. Kalenga said government is determined to improve rural life by providing necessary infrastructure and agricultural human resources which would ultimately lead to increased productivity among farmers.

He challenged the graduating students to work with farmers in rural areas and equip them with information on good farming practices.

Speaking earlier, University of Zambia (UNZA) Vice Chancellor Professor Stephen Simukanga said the country should invest heavily in agriculture trainings so as to fight poverty among its people.

Professor Simukanga said agriculture can help avert the negative effects of the global economics which the country is currently facing.

And NRDC Principal, Aggrey Siyumbano said the college has partnered UNZA to provide students with accredited Diplomas from UNZA.

Mr. Siyumbano said the college is also negotiating with UNZA to start offering students with UNZA accredited degrees.

Meanwhile, Government says the Agriculture sector has the potential to serve as an engine for achieving broad-based economic growth and reduce poverty levels.

Agriculture and Cooperatives Minster Brain Chituwo says this is why government remains committed to improving and strengthening the agriculture sector to enhance food security at household and national level.

Dr. Chituwo said this in a speech read for him by his Deputy Albert Mulonga at the official launch of the 4th Common Market for Eastern and Southern Africa (COMESA) Youth, Food and Agriculture Conference in Lusaka today.

He said youth participation in agricultural programmes can also play a vital role in kick starting and maintaining economic growth and reduce poverty and hunger in the country.

Dr. Chituwo also disclosed that government will support regional youth-based programmes that contribute positively towards the attainment of the country’s developmental programmes like the Vision 2030 and the Fifth National Development Plan (FNDP).

He further challenged stakeholders in the COMESA region to ensure that youths are equipped with necessary skills that can make them contribute effectively to regional integration.

ZANIS