A Libyan telecommunication firm has bought seventy five percent shares in Zamtel. Lap Green has agreed to pay a total consideration of two hundred and fifty seven million United States dollars for seventy five percent of the equity in Zamtel, which values hundred percent of the equity in the company.
Speaking after the singing of the transaction documents of the sale and purchase agreement, the shareholders agreement and other documents in Lusaka, Finance and National Planning Minister Dr. Situmbeko Musokotwane expressed satisfaction with the price at which the country’s telecommunication firm has been sold.
Dr. Musokotwane further explained that Lap Green has agreed to provide sixty two million US Dollars in additional funding.
He said the sixty two million US dollars will be part of Zamtel’s network expansion programme.
The Finance Minister also said that Lap Green will provide a further seventy five million US Dollars in taking over government guarantees relating to network expansion projects.
He noted that this would bring the total amount to three hundred and forty three million US dollars.
Dr. Musokotwane also disclosed that LAP Green has assured the Zambian government that a substantial part would be allocated to the settlement of full redundancy package for the two thousand three hundred and forty one Zamtel employees as agreed by the unions.
He,however, said some workers would be rehired.
Lap Green was one of the four telecom firms that qualified in the last part of the bidders of the country’s telecommunication firm.
The Zambian government has,however, remained with twenty five percent of shares in the telecommunication firm.
And Communication Minister Professor Geoffrey Lungwangwa said the coming in of Lap Green would enhance the development of Information Communication and Technology (ICT) in Zambia.
LAP Green group Chief Executive Officer Abdulbassat Elzzabi said his firm that has a total investment of five billion US dollars will ensure that Zamtel becomes a force to reckon with.
[ MUV TV ]
So let me get this straight. Cabinet met and did not agree on a buyer. The President jets in and suddenly they have a consensus? Foul play at work. And isn’t LAP Green a Govt owned company? What makes it more competent? These guys will pay for this mischief.
Show us the language in the contract .Politians are not good at anything.but sugar coating situations
Zambia postponed on Friday the announcement of the successful bidder for a 75 percent stake in state-run fixed-line phone operator Zamtel after the cabinet failed to approve the selection, the Zambian Development Agency said.
Opposition politicians and trade unions have criticised the Zamtel sale, saying Zambians should hold a bigger stake in the company.
Angola’s Unitel and Libya’s LAP Green Networks were the two firms short-listed to buy the stake in Zamtel, which has a monopoly over fixed-line voice and data communications in the southern African nation.
“The announcement of the winner has been postponed indefinitely because cabinet has not yet approved the decision of the Zambia Development Agency board,” spokeswoman Margaret Chimanse told Reuters.
it was known that its LAP Green to carry the day. I hope they will do something. the amount is too small, thats just for CELL-Z alone. Fibre alone Zamtel will spent 76m, and zesco fibre phase one was 13m dollars, phase two about 40m. I havent included the lusaka metro fibre. recently, zamtel bought 3 NG soft switches, almost 80m dollars. not foregeting the old infrastructure?
We are going to get it back in October, 2011! Basi!
In case you dont know what we are getting back- IT IS ZAMTEL!
LT why are you suppressing the truth, please post my contribution, don’t be cowards God will judge you for hiding/suppressing the truth. Let Zambian’s decide freely what is best for them
So # 4 it seems Zamtel has close to $200m or more in investments , the amount it is being sold for is $270m. #3 you made a very interesting contribution on the other website concerning Zamtel having generated $100m in 2009 meaning in less than 3 years Zamtel has been generating $300m in revenue taking into consideration that it also has debtors , this amount is more than what it is being sold for $270m and also considering that it has around or over than $200m in investments. Zambians it’s time for your analysis.
The PF-UPND pact can draw a clear line in the sand – unless this ‘sale’ is extensively discussed in parliament, they are going to annull it.
Or perhaps the MMD is trying to get extra cash for their election campaign?
Let’s remember that the whole ‘privatisation’ idea is suspect. The ‘free market’ cannot run companies better than the state can – look around the world, where banks and other companies are taken over by governments because they can’t cope with the mess created by deregulation.
We are going to take over Zamtel. All countries world over have some companies to lean on. Why should Zambia give all the companies to foreigners and then on top they are not taxed? Is there any sense in that bane? Mines are tax free, Zamtell will be tax free untill Gadhaf will say now donate relief food to Zambia…ya ya ya what a country full of dull creatures….:o:o:o
these guys are even starting to mistake libyans for chinese
RB has always known that the sale of either ZAMTEL or ZESCO is what is going to allow MMD siphon alarmingly huge amounts of money from the govt treasury to fund their 2011 election campaigns. Dora was positioned to facilitate all this. RB has been sneaking into Libya every now and then to plot this plunder. I can’t imagine how greediness can make RB so blind as to the seriousness of the crime he is committing. Look, it’s like a seasoned child rapist: once he abducts a little girl, he stops thinking until after he has repeatedly raped her and he is caught, that’s when he realizes how deep he has plunged in sh*t. Now, the PACT is here and 2011 is in sight! RB and his bandwagon of thieves will really cry like little babies with pant-loads!
Thats why this chap had stop overs in Libya last year. Wina aza lila !!
Privatization in UK and USA means private citizens taking over running of key infrastructure with government oversight. In Zambia, it means foreigners buying and controlling everything from staple food processing (NMC) to ICT infrastructure. Now, the poor Zambians don’t own anything and RB and his ilk are happy. I challenge anyone to show me one developed country that adopted this useless model ? Just one.
We can easily stop this nonsense of Zamtel. Boycotting the Zamtel services and products can stop the sale absolutely. And in this way we will be showing who holds the power. People or government? Only a fool would buy a business with no customers or clients. Our government says they can’t run Zamtel then sale it to another government? This is a vote of no confidence in themselves.
I really hoped Situmbeko Musokotwane would be an influence for good in the rotten MMD government. But as it turns out, he’s also just a tool. He wants us to believe the stupid lie that LAP Green Networks – a firm that is owned and operated by the Libyan government – is here to enhance the development of ICT in Zambia. Really? And this is the “private” company they were talking about.
#13, The only ‘developed’ country that has adopted that model is Zambia, that is why zambia’s ‘development’ is constantly, stubbornly progressing in the negative direction. More money in Libya now! Each call you will make, just know that 75% of profit will go to Libya and 25% will remain with the Politicians (not the family in Misisi) in Zambia. So this new “Zamtel” is owned by Libyans and some selected Politicians in zambia. Zambia is really “developing”!!!!!!!!!!!!!!!!!!!!!!!
No foreign investor would develop another country on this earth! I come to invest because I know how much I will get from you! And I will make sure I get maximum possible profit at all costs, I do not care what happens to you, but as long as I make profit that is ok for me. When I have made enough profit, I will ask others to buy my investment and leave you. We can sign agreements, but as long as I have more money than you, then I control everything. I am an ‘Infestor’, not ‘Investor’ as you are mistakenly made to believe! I come to suck!!!!
The Govt just passed a vote of no confidence in itself. How can you sell a national asset to another Govt? Why not just privatise Govt itself to Libya, since they apparently can manage our affairs better? This is what the Govt is saying. Since they have red carded themselves, I say we vote em out next year!
Gadaffi now buying zambia, I knew chiluba was behind this sale. He is the one who has been receiving money from Gadaffi. what is going to happen to the people’s pensions now? there is a lot of stealing in this mmd government. But every dog has its day
People back home, please vote for the good of the future, apathy does not take us or our country anywhere.
Beware of the muslims!
There is more poverty in Libya than Kalingalinga or Kapoto ,now someone from there neglects his country for Zambia,lord have mercy,whats wrong with this government,the whole MMD is BWEZANI ZIKO KUMBUYO……………We will chack them them out soon……
Very soon we shall start experiencing suicide bombers as this Libya comes to Zambia. This is how Moslems penetrate into Countries. They will come with more than just Phones. Wait and see………. Mukapapa sana!!!!!!!!!!
This is sad. We seem to run around in circles accomplishing nothing. I have no problem with Lap Green owning a stake in the firm. Neither would I have a problem with any other company owning some. I strongly believe that Zamtel should have floated majority shares on Lusaka Stock Exchange. Giving us the Zambians majority ownership. Like Chiluba’s privatization, intention by government is good, but because Zambians are not in control it is futile.
I wish our government could have gotten the entire Zambian economy involved. E.g. 1. Set the price 2. Offer Incentives for Zambian investors such as make business loans easier to get. 3. Ask the Zambian business to put moneys together and eventually acquire the firm. Because in reality, there are businesses in Zambia that can afford US $300m
sad day indeed,zambians are slowly becoming economic refugees in their own land.Next they will privatise the state house..dear God deliver us from these dull,self opinionated,Visionless and self-.serving leaders.
For Dr. Musokotwane, Please read about Hugo Chavez and what he’s doing for his people in Venezuela.
That is exactly what we want. Not fake privatization that is putting everything in foreigner’s hands and making us poor. If you cannot manage these assets, step down instead of giving them away to foreign governments and telling us its privatization. What has almost 20 years of this privatization done for the people?
When change of government happens they should take back everything from the foreigners who come to steal and kill like Idi Amin did in uganda. Zambia will be the next one so investors should not be comfortable as change will soon happen and we will see.
The LAP Green Network is part a part of the Libya – Africa Investment Portfolio (LAP) that was incorporated in 2006 as a Libyan foreign investment vehicle primarily focusing on contributing to the development of African countries. The state owned vehicle had an initial capital of US $ 5 Billion.
In order to ensure economic development on the continent, LAP identified specific areas of intervention among which included Information Communication and Telecommunications. As a result LAP Green Network was incorporated in February 2007 to focus on investments in the ICT sector. LAP Green Network is a provider of total communication solutions, offering mobile& fixed voice, Data, Internet and business continuity services. It currently has operations in 6 African countries and as the end of…
It currently has operations in 6 African countries and as the end of July 2008 had more than 4 million subscribers. In majority of the 6 countries where LAP Green Networks is present, her operations boast of enjoying the fastest growth.
The vision of LAP Green Network is; “Connecting Africa for the future”
LAP Green networks was incorporated in 2nd quarter 2007 at which point it only had 1 license in Uganda.
•By 2008, we had acquired an additional 4 licenses and successfully launched 2 networks in Rwanda and Cote d’Ivoire
•Most of the companies it bought shares in was a governmental, and it took a lot of efforts from Lap GreenN to restructure them, prepare them for competition, and with commercial objectives
source lapgreenn dot com
Analyst on the ground says:
June…
Lap Green haas less than 5 years experience and Zamtel has over 20 yrs experience,Zambians you judge for yourselves.
# Morals.. It seems u are part and Parcel of this whole thing and what you have done here is just 2 give us an insight of LAP Green check this sentence
*By 2008 “we had acquired an additional 4 licenses and successfully launched 2 networks in Rwanda and Cote D’ivire”
Point here is, we will have to wait ill after a year to see if it will benefit Zambians coz you are also here to make money we have seen it happen b4.
.
I can see that there is a lot of ignorance about LAP Green. LAP stands for Libya African Portfolios.This means they are not only one portfolio but in a number of them. They are in Real estate,Telecoms equipment manufacturing, Telecoms service provision, Agriculture and Oil mining. LAP itself has a well defined structure run by real professionals. So LAP Green is very experienced contrary to Mr Morals statement. And for the first time the company has been sold and all its workers to paid for what they worked for previously. Remember people, a lot of companies were sold in Zambia and most workers died without getting their monies. HH was in fact in the for front, LAMCOZ where did the money go?Let the major stakeholders “Zamtel workers speak”.
Well done Mr. Morals. That is the way you should do it. I like you mature positive comments. Yes change we need but less us not lose direction. 2011 we can do it, but geting Zamtel back will be the biggest blunder ever and only a dull and stupid leader can do that.
So Zamtel is going for a song to another African government. Is Zamtel being sold to private or public sector?
I said it before here: RB went to Libya before the zamtel bid. That is when the deal was sold. Everything else was just a show.
Atleast RB will have money from zamtel sale to marry Dora.Good deal I think. TUKAKUMONA!!!!!!!!!!!
If LAP Green which has bought Zamtel is a public institutions, then we can not call this privatization but foreignisation. By this move, we are just telling the world that we have failed to manage our businesses so please come and make money out of our failure!
ALA BANE TULEKENI NAIFWE TUPOKE ICHUMA.KA FTJ KENA KALIIFOLESHA KALE EFYO KALELANDILA CHIPUBA CHIPUBA.
THese company may not be as bas as we think.I feel they have the capacity to source money for expansion.The issue of concern is the way this sale was doe.It has been surrounded with alot of suspicion which in gfuture the truth shall come to pass.
Yaba kwena twa sanswa, twatampa ukushitishe chalo kuma telalist shuwaaaa!!!
Yes, Gaddafi is strategically placing himself by slowly but surely having a foot hold in most of the african counries so that when time comes to elect an African Union president, he will have an edge, as he will have exerted so much influence.Yaba kwena we are really mixing it up aini , Christianity na Islam
This is very embarrassing to see this kind of a thing happening back home, i worked for Zamtel almost 10 years ago and even back then the fear was privatization of this institution, now that it has come to light in full development, my heart goes out to all my sisters and brothers who are going to lose their jobs….Shame on you Zambian leaders for making this hugely terrible mistake.. which you will live to regret…I pray for our beloved christian nation..Zambia.God Bless.