GOVERNMENT has challenged United Party for National Development (UPND) president, Hakainde Hichilema to acquire the 75 per cent equity partner shares in Zamtel if he thinks the 25 per cent shares which will be reserved for Zambians after privatisation are not enough.
Cabinet Committee member on Zamtel, Kenneth Konga said it is wrong for Mr Hichilema to criticise Government for allocating 75 per cent of the telecommunication company’s shares to an equity partner before finding out the reason.
Mr Konga was part of the five-member cabinet committee constituted by President Banda to find a lasting solution to the financial and technical problems of Zamtel.
He said in an interview in Lusaka yesterday that a number of factors were taken into consideration before arriving at the decision.
Mr Konga who is Minister of Energy and Water Development said Zamtel has a huge debt and requires a capital injection of not less than US$200 million to survive.
He said there is no Zambian with such kind of money to invest in the company.
“If Mr Hichilema has a lot of money, let him buy those shares because, after all, we have not yet found an equity partner for Zamtel and so he is very much welcome to invest US$200 million in the company.
“As a committee, we took a number of factors into consideration before allocating the 75 per cent shares to an equity partner because we believe no Zambian has that kind of capital to invest in the company,” Mr Konga said.
He said Government decided on offloading the remaining 25 per cent shares on the Zambian market because some Zambians can afford to buy some shares.
Mr Konga said opposition political parties and Zambians in general should desist from developing a tendency of always criticising Government on its decisions even when they are taken in good faith.
He was reacting to Mr Hichilema’s sentiments that the 25 per cent shares in Zamtel to be sold to Zambians are insignificant and that the UPND would have preferred that more shares are sold to the public.
Mr Hichilema accused President Banda of trying to benefit from the privatisation of Zamtel.
He said although he is not against making Zamtel viable, he wanted transparency in the manner in which RP Capital Partners of Caymen Islands was engaged to undertake an evaluation of the company’s assets.
Mr Hichilema said it is unfortunate that former Minister of Communications and Transport, Dora Siliya, was allowed to engage RP Capital Partners without announcing the tender.
“We want to see a better Zamtel but the manner in which it is being done is to serve a few individuals where there was no tender. There are better ways of making Zamtel flourish and that 25 per cent that will be sold to Zambians is nothing,” he said.
Mr Hichilema said the UPND is speaking for the majority Zambians who are suffering and advised the unions to consider the interests of the workers most of whom are underpaid
But the National Union of Communication Workers (NUCW) is confident that Zamtel will be viable after the 75 per cent shares in the company are sold to an equity partner.
NUCW president Patrick Kaonga advised people claiming corruption in the privatisation of Zamtel to report to law enforcement agencies.
Mr Kaonga said this in an interview from Samfya yesterday.
“Our interest is to save the company from collapse. If there are issues of corruption, there are law enforcement agencies to deal with them,” Mr Kaonga said.
He said NUCW is confident that Zamtel will be viable after it is privatised. Mr Kaonga said his union’s interest is to ensure that jobs are saved.
He warned that the company will go into liquidation if nothing is done about it because it is failing to operate viably. Mr Kaonga said Zamtel’s problems started a long time ago and that nothing was done about it.
“At the time the telecommunications sector was liberalised, Zamtel was not ready to take that route. Mass employment was part of Government’s agenda before liberalisation and now we need to restructure the company to make it viable,” Mr Kaonga said.
And the National Energy Sector and Allied Workers Union (NESAWU) has challenged Mr Hichilema to prove allegations that President Banda wants to personally benefit from the privatisation of Zamtel.
NESAWU general secretary Yotam Mtayachalo made the challenge in an interview in Ndola yesterday. “It is not fair for Mr Hichilema to accuse President Banda of wanting to benefit from the sale of Zamtel shares. As a modern politician, he should learn not to be personal and to politicise issues.
“If we continue throwing mud at each other, we are eroding donor confidence. It is not fair to accuse President Banda of wanting to benefit from the sale of 75 per cent shares in Zamtel,” Mr Mtayachalo said.
Meanwhile, Parliamentary Public Accounts Committee (PAC) chairperson Charles Milupi has urged Government to ensure Zambians benefit from the sale of 75 per cent Zamtel shares.
Mr Milupi said government should ensure that the privatisation of Zamtel is done according to the laid down tendering procedures.
He said in an interview yesterday that the country should get the value in monetary terms out of the sale of 75 per cent shares of Zamtel to an equity partner.
“All Zambians must benefit from the sale of the company because we do not want to experience the same thing that happened after the sale of ZCCM. Most Zambians did not benefit from the sale of that company,” he said.
[Zambia Daily Mail]
Is the criteria to give a higher threshold for the sale the reason to exclude Zedians on purpose? I find this to be childish of Konga
RB, privatising ZAMTEL will mean that all your private telephone calls and those of security wings will have instead pass through private entities. Is this what you want for mother Zambia??
# 1 It’s not childish. Do not overlook that fact that there are wealthy Zambians out there. We as Zambians should stop complaining & blaming others for our own mess. Where are the rich Zambians who should form a consortium to buy these Zamtel shares. If they want to prove corruption against this mediocre MMD government now is the best time with this Zamtel sale… Yes HH, Sata, Chiluba, Kaunda, Maureen Mwanawasa, Guy Scott, Ben Mwila and all you so called wealthy Zambians bid for these shares & lets see what excuse the MMD will come up with for not awarding the shares to a Zambian owned firm.
No one has excluded Zambians from attaining the 75% shares in ZAMTEL. Like has been said above, if you have $200 million dollars needed to recapitalize ZAMTEL, then go ahead and acquire the 75% shares.
Mr. Hichilema should acquire the 75% shares if he has that money lying around. Even he Mr. Hichilema knows very well that some of the ways companies raise money is through selling shares on the stock market or directly to equity partners. Mr. Hichilema knows this and why he chooses ignorance is a surprise to some of us.
So Mr. Hichilema, prove you care about ZAMTEL. Acquire the 75% shares.
This is just to embarrass and finish the HH and the PACT now MMD is doing.Doesn’t GRZ realize that HH and Sata’s rhetorical is out of unreasoning pure African politics?
Stop This man from selling the country: Privatising ZAMTEL will mean that all your private telephone calls made by GRZ officials, RB included including Zambia security agencies will have instead pass through private entities. Is this what you want RB for mother Zambia??
But this is so ridiculous,surely do we have a Govt in place?
is it possible?
Govt is the biggest contributor to Zamtel’s malaise. They don’t pay their bills. They appoint mediocre management & board who have never run any business before. They steal the money for political campaigns. Now they want to sell. Obviously, we don’t trust them & hence demand for greater transparency. I don’t see what is vexing Konga. This is not about individuals. Zambian companies must move up & start working together & raise capital to buy & manage such enterprises. As peoples’ representative, the Minister must be in the forefront encouraging Zambians.
This here is a call for an ENTITY called HH instead of saying there is a possibility that Zedians can bunch together. It is a pity that when the heirloom is on sale, the sons and daughters of the household are excluded by the powers that be!
Since we blog and have all ideas in the world, can be come to the aid of HH trapped in this damaging challenge.Can we put up resources and bundle to buy the 75% shares as recapitalization? Otherwise we risk being bruised by this daring challenge thrown to us all armchair critics through HH.This a damaging punch in view of the fact that jobs are at risk should Zamtel sink.
It is very sad indeed. Some of us who had foresight as regards Zamtel knew that such a day was looming. There is no sign of a firm repositioning itself as far as competition is concerned. The point of going mobile with Cell Z was a huge mistake. The least they could do was go into a partnership in order to extend synergy benefits to the mobile company. Alas they went it alone and have choked themselves as they have so much on their plate in an overly ambitious manner.The management has NO BUSINESS SENSE WHATSOEVER I must confess. The money they poured into the GSM equipment should have gone to recapitalize the limping fixed line network. They needed to separate mobile, fixed and internet services. They have the biggest dish and one would expect them ahead of rivals instead it is pathetic.
# 9 Nkosi,
A challenge on HH is a challenge on us all.There is a 75% ownership toasted in our eyes.What more do we want? Let come with needed money and solve the puzzle.
Telkom in SA a fixed line operator in SA didn’t jump onto the Cellular provider bandwagon they went into a partnship agreement with Vodafone a UK giant. This is something Zamtel should have done. The fixed line network is pathetic and I find it to be a joke that Zambians still want to cling to some pathetic firm that is draining taxpayers money when we need schools, clinics, roads etc in our country. Zamtel shouldn’t be in financial trouble given that it is the sole fixed linme operator. The same applies to ZESCO, it shouldn’t be broke given that it has no competition whatsover. Why are we not bold enough to stand up to stupidity. we still want to cling on to this ka ntemba arrangement when we have an opportunity to progress if we identify the “correct” investors.
We shud watch this under five HH. He is talking too much. Like he is the president of the PACT! you will see!
Abwenzi,
This is not time for who, when and what i thought but bundling our resources together in an actionable blogging way and save Zamtel.Can you come up with some mechanics of us armchair critics owning Zamtel at 75% before it goes under?
Yes wapya munzi, challenge these socialist armchair critics to bundle up together and come up with $200 million dollars to recapitalize ZAMTEL by buying 75% shares in the company. Yes challenge Ine, Ichalo Lifupa, Abwezani, eagle one, Wanzelu, Kelchi, Nkosi, Mestro, etc to bundle up and buy 75% shares in ZAMTEL. You can also bundle up with HH, Sata, Guy Scott, Harrington, Given Lubinda, etc so you can buy the 75% shares in ZAMTEL. No one has stopped you and so you are left with no excuse.
You know what the sell of Zamtel is or will be the biggest blunder in Zambia. We have been beaten left right and centre by privatising the mines nothing has been for us later on we sold Zanaco and Zamtel is in the queue of being sold. Bane, our intellegency system will be intercepted by the possible buyers and we wont enjoy the privacy that we do with our Zamtel line. Malawi is crying for selling their Telkom to some Germany company. why cant we learn from others? anyway reading the editorial comment made me feel so sad. Yes we are foolish
We seem to be missing a point here. Please re-read the article. It is clear that govt is not keen on Zambians getting a share in that 75%. I would not be surprised since we have the PHD (pull him/her down) mentality – both in opposition and ruling party. No deliberate policy to encourage the homestead to participate in partaking of the cake – which in itself is self defeating.
I like this game changer.A Golden opportunity to armchair critics for real and sustainable wealth.The more money in your pocket is out of owing 75% of Zamtel.By it now we have fiber optic here delivered to get you excel.
Yes Senior Citizen
The Lusaka Times socialist armchair critics are always crying about not being empowered. Here as an opportunity to be empowered by acquiring 75% shares in ZAMTEL. Here is their chance to prove themselves. Here is a chance for these armchair critics to prove themselves as being valuable to Zambia and not just valuable to Lusaka Times.
The game is on. Here is the challenge for you socialist armchair critics. Bundle up together and buy 75% shares in ZAMTEL.
Zamtel is falling, let them come up the dollars and buy the 75% shares of Zamtel.Independently i have a different financial structure to the GRZ option of 75% share spread but HH’s rubbish talk show needs to be challenged this way.With all their cadres from the 24/7 insulting blogs let them come up with money to buy the 75% shares.At his level, a well meaning leader could exploit the administration’s open door policy intellectually engaging them with an option.That is what some of us have already initiated.HH has a long way to maturity.his politics is sublevel politics.
Ken Ngondo, Siulapwa, Dr Cosmo Mumba, Kambwili, Tetamashimba and Kuluku Lukuku want to buy the 75 per cent shares!!
Hello fellow country women and men all we need is 40,000 Zambians to invest at least $5000, Zambia’s population stands at 12 million now and so this attainable but knowing you Zambians you will back off and let foreigners take charge.
Why can’t you ever write your stories ba LT? You are very useless. I thought this week you will change. You have a creative way of pushing MMD propaganda to us
Look at what happened to the mines. Let us not lose our Zamtel. It can work. If anything givt ministries are the culprits that owe Zamtel money. It was the same thing with Zambia Airways (partially, minister getting tickets not paying, even for girlfriends, mistresses concubines etc).
We need new ideas, new people, positivity. Seriously, we can go forward but not with some of these jokers in power. The whole thing stinks!
Ok this is the type of story that tickles me. MrCapitalist & Senior Citizen, I think you are getting blinded by your hate for the so called Arm chair critics. This deal and offer to Govt is just a cheap political shot at HH. This is pure compound politics.
I don’t think it is a question of coming up with 200 million dollars. There are long term sustainability issues and track record of the equity partner Govt is looking for. I doubt the consortium will cut it. So stop wasting people’s time on forming a consortium. ZAMNTEL needs a partner who understands their business model.
Selling ZAMTEL to HH is like asking the NCHITOS and MEMBE to run An Airline business. You the story. Its not a question of capital. Any fool can borrow capital. Running ZAMTEL is another thing.
I think the likely contenders for ZAMTEL are Telkom, Vodocam, ZAIN or some Indian Telco or Mideast Telco company
But I think the Chinese will win it. They seem to have nicely bribed the MMD government. Remember the Fiber network infrastructure recently layed by ZAMTEL was done by a chinese company and the project has been delayed because this Chinese company is owed a big bulk of the 200 million dollars they are looking for. So I would not be surprised if the chinese get the deal.
I smell the Japanese wanting to get in on this deal too. Watch carefully the visit today by this fake Japenese delegate.
The telecoms industry is extremely profitable and watch the excitement about ZAMTETL in the financial market
Well Chinondo, if you do not want the Chinese or the Japanese to get Zamtel, then what do you suggest should be done about ZAMTEL. Should we let it be liquidated? Give us a solution on what should be done.
I have already offered a solution for all of you armchair critics complaining. Bundle up and buy the 75% shares. Prove to us that you can run the company better than the Chinese, Japanese and govt.
Why should we sell it? If it causes such excitement amongst these bug guns why not keep it and make it viable. Look at the commotion that hapened when Zain took over Celtel. That network is crap to say the least. It’s hard enough trying to send texts or getting through. What I am saying is that it is high time as Zambians that we should take ownership of our own things. We don’t have a national carrier and now we want to lose our national telecom company. That’s what happens when fat, corrupt easily excited individuals are given responsibility of our countries assets. This cannot go on any longer. The mines are a mess. We’ll sell Zamtel for a song, fat basterds will benefit and Zambians will again suffer and bear the brunt of these corrupt goings on.
Hon. Konga has a point made very clear, if you have $200 million go and acquire those shares and stop making noise in the background. Get up and challenge him. Come on guys!!!We need to see your financial prowess and put an end to baseless criticisims.
#28 To be honest as much as I would want a Zambian company to get ZAMTEL, I must confess that there just isn’t one that can take over and successfully take ZAMTEL into the future. Am against selling ZAMTEL to a Zambian consortium that has no clue in running the Telco and will have to re-invent every solution as they go along. Sell this to an established player in the business. Maybe reduce the stake to 60% and I think that should be the debate really
The issue is we need to take ZAMBIA forward in terms of ICT and ZAMTEL plays a crucial role to solve this digital divide problem. ZAMBIANS need access to information in a cheap and reliable way.
Don’t be emotional about ownership. Lets have a company that delivers value and taxes for Zambians.
HH has got a point. Yes shares can be sold to equity shareholders, but its the manner of the the share offer which HH is criticising. Offering 75% to an equity partner excludes HH or other “rich” zambians from bidding for the shares. So its absolutely ilogical, infact stupid, for Konga to say HH should buy them. A “placing” of 75% shares to an equity investor means these share will be offered at an “agreed” price. What is the right price? Do we trust the valuation by RP partners? What is our governments track record with such deals? Will this be another KCM debacle where we give away our assets? What HH, and i, are saying is that these shares should be sold via the stock market and as many people as possible should have the opportunity to participate. Therefore, if Zambians cant…
So, Bloggers you know now why Dora was cleared, just in case you doubted. This whole Zamtel scam involves RB, his son and Dora. Why is the whole transaction not known to the zambians? Who did the evaluation? Why just that one sombebody? No bidding? Come on! Who does RB thinks he’s dealing with. Foolish people like himself. He’s very much mistaken.
What he’s doing is criminal, corrupt, as usual, and foolish. I think he should leave this to intelligent people in zambia. Infact it should be done in open, like on TV where people would have to discuss the whole issue. Not just going to Ndola and make an announcement. What kind of madness is this?
Zambians, this very confused leader of ours is up to no good. Selling our valuable assets for nothing? There must be a better solution, but…
32 Continued. others will buy the shares. A “placing” gives preference, it it is usually on a quid- pro- quo basis, with the company being offered the shares also giving the seller something in return, eg underwriting the share issue etc. If we dont open our eyes, we will be regretting very soon.
Another reason am against selling to a Zambian consortium is that the best Zambian brains are outside Zambia. As much as lack of capital and politicians interference are to blame for ZAMTEL’s woes, I think the current ZAMTEL management is incompetent and have failed to really take advantage of the data services business.
Today, ZAMNET, COPPERNET and AFRICONNET have a bulk of the data services business despite their meager capital base compared to ZAMTEL. ZAMTEL has not been smart. Even their mobile business is pathetic compared to ZAIN and MTN. And this to me points to mediocre management.
And established player will be able to tap into their already existing knowledge base to catapult Zamtel into the future. A local consirtium will struggle to attract the best skills.
Please it is not just a question of coming up with 200 million dollars. With the current mediocre ZAMTEL management, your 200 million dollars will just go into a rat hole and you will find yourself begging for another 400 million dollars.
The Zambian Airways saga is a good case study. The POST and the Nchito brothers thought all they needed to run an airline was to get capital and all will be well. They even got rid of the previous Management who successfully operated Roan Air and replaced them with a Lawyer who had no clue about the Airline business. They went and leased old fuel guzzling planes that were were retired by most airlines and the result was a disaster with a 30 million dollars debt on hand. This could happen if to ZAMTEL if you go local.
Such low calliber of Ministers like what has been displayed in this matter is what has destroyed Zambia. All over the world, entities group together into consortiums, and mobilise financing from Banks to take over or refinance a business. The Kafue consortium, over the Konkola deep was a case in point.
Kavindele also came up with a consortium and managed to raise $500 for the development and construction of the Rail line to North western Province, which foolishly, the government blocked out of no sensible reason but ulterior motives.
If Kavindele could raise $500m, how would other Zambians fail to raise $200m?
GOVERNMENT SHOULD JUST PAY UP ALL THAT IT IS OWING ZAMTEL. IT IS THE CAUSE OF ALL ZAMTELS FINANCIAL DIFFICULTIES.
Truly speaking Iwe Chi Rupiah can’t you just learn a good lesson from wat is happenning in Malawi.You have already oiled the NUCW President so that he speaks in your favour.Mind you God sees,you will soon dance to our tune.Even this Buffon Mtayachalo has just poked his big nose in things that he has no idea for because chi Rupiah has given him a cut,you will dance as well.
I really hate the inferiority complex being displayed by some bloggers that every business run by Zambians would be doomed to fail. As financiers and shareholders, the Zambian Consortium would do everything to protect their investment, meaning that they would avoid employing mediocre staff. They would go for the best brains on the market to manage the company. Zambians abroad manage more complex business than Zamtel and I do not for once believe that they would fail to profitably and efficiently run ZAMTEL
Yotam Mtayachalo you cant even afford to buy a beer at your bar (mixed doubles)…and you failed to perform at ZESCO…you are seeking employment at the moment…shame
Reading through all these varying views by the bloggers I come to a conclusion that they love their country and are more concerned about the well being of all Zambians unlike these thieving, heartless, selfish and shameless so called leaders whose interest is to make themselves rich and nothing else. Bloggers views may differ but all want to see Zambia prosper.
#34, Chinondo, Your statement that the best Zambian brains are outside Zambia is a fallacy.
please save zamtel. its sale will result in an increase in services such as ATM, small radio station use zamtel microwave this will go up. MTN, Zain uses zamtel infrastracture this will ofcourse go up….
Yah. It does not make sense for GRZ thrugh Hon Ken Konga to challenge HH to acquire 75% stake in Zamtel. Its total rubbish. HH’s concern as a polituical leader and concerned citizen should be dismissed like that. Its totally unaccaptable to allow foreign firms to acquire 75% stake in Zamtel. Yes Zamtel has a staggering US$200M debt does that mean who ever is going to takeover 75% will liquidate the debt. The entity will be acquired as a going concern and will only restructured. We have alreadt foregin owned firms like Zain & MTN. Fellow Zambians lets us watch these guys they are out to defraud us. This matter needs the attnetion of every concerned Zambian. They can get their gratuity as its their conditions of service. BUT WATCHOUT some one is gona reap gold at our expense.
Kaonga wat are you really up to..?Am failling to understand your motive,have you been oiled you short plank.You dont deserve to be in that position indeed because you deceived your fellow workers to vote for you.You are easly blown by the wind.You are trully a let down.Please Zambians be carefully of such Pipo like him.There is a rumuor that He is intending to stand as an Mp in Matero under MMD ticket.Plse fellow countrymen do not accommodate such a bootlicker like His Uncle the Deputy Minister of Community Development.Kaonga you are a TRAITOR…!
….yawn…1. should have given all the reasons for the decision to avoid being misunderstood, 2. responded to HH in a childish manner, grow up 3. Another ZCCM story 4. MMD drama continues, if you do the same things over, you get the same result..how do you expect to get a different result?
It is stupid mr Kongo to suggest that one person (HH) can buy those shares. you ncan off-load them on LuSE. iT IS ANNOYING that we have people like KONGO as ministers.
‘He said there is no Zambian with such kind of money to invest in the company’ – Mr Konga stop fooling Zambians when you know for sure that if a Zambian came on board you will not accept his bid no matter how good it is.
There is nothing like compromising security here we do have communications authority that should handle these matters for you own info take a look at the main companies in the US that have more control on things such as phones and internet. It still remains the responsibility of the investor and government to ensure standards are not compromised.
Where is Kambwili to discipline this guy before he utterances more nonsence.
I challenge Kenny Konga to start taxing the mines and get that $200 million himself.
The whole thing stinks. After RB is out of office Konga & Co will forget what they are saying now. Allfingers will be pointed at poor Banda. Mark my words and this date.
Going by this article, Zambians are not ecluded from the 75%. Foreigners have been excludd from the 25%. No foreigner will have more than 75% while a Zambian is free to have more than 25%.
It’s like reserving a chicken inondo for the man of teh house. No one is allowed to eat it while he can eat it and feel free to have any other part of teh chicken if he so wishes.
The Union leader has said if Zamtel is not privatized, it will be liquidated. i am sure he knows better than us outsiders.
As for Govt privacy etc, look at developed countries eg UK. There’s no public telecom companies so how do their goverments communicate secrets? It is better to privatize Zamtel and save some jobs than liquidate it and lose all the jobs. Hard times demand hard decisions, just like in our homes.
Ba figili mulesabaila fye.
I could swear HH farted in this pic. The poor guy behind him says it all
If they off-load 100% shares on LuSE, Zambians may have less than 25%. We do not have many Zambians who have much money. Institutional buyers who are already used to trading on Luse may wipe them off the shelves even before ordinary Zambians know they are there.
Besides when all the shares are at Luse, holders will be free to buy and sell. It’s possible that due to poverty some Zambians will sell their shares as soon as the price begins to rise so they can have some money. This has happened before, in the end Zambians hold less than 25%.
Similarly some Zambians who bought houses have sold them to Asians for the money. It will be good to have a report on previous shares sales to Zambians or houses sold to Zambians. We may unearth interesting things there.
It’s not about who has money. The govt owes Zamtel so much money that they shouldn’t be stupid and start egging people on to buy the shares. Let them pay back what is owed similarly to the ZESCO bills that aren’t settled by the govt. If Zambians do buy shares, where will that money go do you think? Why should we always look out to the west as if they know better when people are unemployed in Zed who are capable. It’s not whining or making noise in the background. We’ll be left with nothing. We can work in partnership. Where is the money going. From the RP capitals valuating and how they got that gig, it all smell rather fishy. We might as well put a ” COUNTRY FOR SALE” poster and Lusaka International Airport!
Very Foolish decision.Why cant Konga shut his big mouth up?.Government should have 30% shares,the people of Zambia should have 25%,the remainder should be for the so-called equity-partner-Simple.Let not the MMD criminals put our security at stake.Telkom SA is run by The SA Government inspite of South Africa having too many rich people and investors,why cant we do the same?
It’s nostalgic to note that there are people who think what HH is saying is nonsense. Or maybe it is ignorance of matters and history that makes people think otherwise. A consortium of Zambians put in a bid for Luanshya Copper Mines but they were not picked because the Govt wanted a big investor who could develop the Mulianshi project….what Bull@#$! NFC who bought the mine are not paying the suppliers owed by LCM , neither is Enya the former owners. So Govt will pay using the money they get from the NFC. so why didn’t ZCCM-IH just take over all the 100% shares and float 50% to the public. As it is Rabo bank paid less money for the shares in Zanaco than was raised from the public floating! Talk now then maybe in future you will understand what HH was talking abt. I rest my case.
Good afternoon all
Let me read the story first before I comment.
” He said there is no Zambian with such kind of money to invest in the company. ”
If they taxed the mines, and had not gotten rid of the windfall tax, they would have well over $200 million by now.
” He said Government decided on offloading the remaining 25 per cent shares on the Zambian market because some Zambians can afford to buy some shares. ”
Kenneth Konga needs to shut up and stop insulting everyone’s intelligence.
I really don’t think any serious invester will pay $200 million for Zamtel and pump in extra $million into the business. This is just government wishing that they find someone to buy Zamtel at that much. Who would want to buy a company @ $200million when it can’t pay it’s debt.
You blacks must just own up,you can not run any mega institution viably.you will run it down.so keep you paws off ZAMTEL because you will ground it to a halt
There is no Zambian with that kind of money but collectively theres Zambians with that kind of money. Even borrowing 200 Million from an international bank could have been better than giving away the ownership. Zamtel will be worth more than the same 200 million the govt. have sold their soul for in just five years.
#61 MrK, “If they taxed the mines, and had not gotten rid of the windfall tax, they would have well over $200 million by now”. But would the money made from taxing the mines be the appropriate solution?
Chinondo has a big point. I feel it is not a question of money but who to run the business. If we put in $3tn it would just not work because the people running Zamtel have no idea what they ought to do.
$200 million is not a solution..wat zamtel needs are good managers..privitisation in zambia has not been done in good fairth
#63 AKAPONDO, Ala wansekesha mudala. In fact ngomunandi twalelanda nankwe sees your post alasuminisha ngafintu nasumina. Cishinka mwandi mudala and it pains.
I got maself a Mercedes Benz CL-Class 2dr Cpe 6.0L V12 AMG ,damn it,bitchies pursue me like am lipstick.My motto is put money where it will grows,all you homos that blog all day ,live your life to the fullest,be happy,blaze a ounce,and keep ya ish together.
Useless people indeed. Please hand over the country to the infestors. I mean let them rule you for you havefailed. What nonsense to think Zambians do not have capacity to run Zamtel…when the infestors come , are they not going to use the same man power? Just own up to your selfishnes and dullness so that you hand over the presidency of Zambia to the Basungus. You cant do without begging from them. REVOUTION 2011.
Its amazing how we Zambians talk sense and always good at sensible aguement, but always impliment nonses. whats up with that crap?
I blame Sata for the racism and xenophobia levels rising in Zambia. Anyone non-black/non-Zambian is seen as dubious, not trust worthy, a cheater, looter, etc. Funny enough some of the Zambians exhibiting this racism and xenophobia against non-blacks/non-Zambians live in the same countries where these non-blacks/non-Zambians reside.
I blame Sata for all this hatred, racism and xenophobia. He must be investigated for spreading a hateful message. How I wish there is a law somewhere in the Zambian laws that we can use to punish Sata for this racism and xenophobia he has spread and is spreading. The PF is like a big KKK in Zambia.
Okay, The last time I cheched somebody was saying this Zamtel issue must not be politicized. But Konga what do you think you’re doing. Go right ahead, sell Zamtel, then Zesco then who knows…… Zambians seem to have nodded this move. But don’t say I did not warn you. Mukakakwa, somebody will be going down. I ‘ve been aroud for a while watching you play games. Liabilities of the firm qouted at USD60m within a mouth you jumped to USD90m and now Lungwangwa is claiming the figure has risen to USD150m. I do’nt know whether this is coming from RP capital after their evaluation.No ordinary Zambian has seen this except politicians.
Zambians, Once bitten twice shy.
This was long forseen. Govt has maloperated Zamtel to the point that it became unprofitable. Talk about the free airtimes that all govt officials and Zamtel employees were receiving every month, the abuse of free phone calls by govt and zamtel employees, the lack of auditing, unwanted employees! All these can no doubt make any telecom campany to go on its knees.
Zamtel needed qualified managers to run it profitably. Without govt disturbance (in the financial sense) and abuse, Zamtel could have operated profitably just like any other telecom company.
I believe there are qualified Zambians right now that can run Zamtel profitably.
I can see from the blog and from the government of Zambia that many Zambian have an inferiority complex….The first thing government can do is to advertise Zamtel to ZAmbian if Zambian prove not to have money then they can go to foreigner..This thing of telling HH in public is to try and show as though HH doesnt have the money supposing he has the money…to buy it and they way of approaching him is not the right one he wouldnt be intrested..and its not the politicians in the oppostion who are to buy these companies why not ask the Zambian business people whether in the country or outside..they can have this money…or as someone on the blog suggested partner Zamtel with some other company such as Vodacom or something…the two hundred million could have been raised on the stock market..
Zamtel should just be listed on the stock exchange its a way to raise capital and our markets will be empowered and grow.
Once again I will take the side of those supporting the 75% deal. What use is there in owning a company if you can’t run it successfully? The Govt can choose to keep or to sell it off; both are legal and neither is preferred. It’s 100% up to the Govt.
Privatizing Zamtel is a wise choice at this time in order to save it from liquidation. In this situation Zambians should be given the first priority to buy the company. I believe it is in the interest of Zambians to retain Zamtel into Zambian hands, without govt interference. There are well qualified Zambians and foreigners who could, after the transfer of ownership, be employed to run the company profitably. I believe Zambia will be safer if Zamtel is put into Zambian ownership than in foreigners’.
Any where in the world, well run telecom companies are very profitable and can payback within short period of time. This should be our platform of understanding as we look into the future of Zamtel. Let Zambians with money buy off Zamtel from govt.”
Its wrong for grz to tell HH to acquire the 75% in Zamtel …. but his concerns are genuine. . . . the 25% offered to zambians is too little . . . do we have to sell everything to chainess investors.
For starters float 30 per cent of ZAMTEL shares on LUSE.( After all it was ordinary and institutional Zambian investors who bought 30% of ZANACO for $56m while the so called equity partner ( Rabobank) paid only $8m for a whopping 49% ownership of ZANACO. What a rip off …it pays to be a ‘foreign investor’ in Zambia). After that let the ‘outsider’ buy 49% of ZAMTEL at the going market rate. I do not trust anyone of the morons in MMD or their ‘tuchawa experts’ to be able to sit across the table and negotiate anything sensible with foreigners. And to the moron who is afraid that institutional investors would benefit at the expense of ordinary Zambians please be reminded that institutional investors are also Zambian institutions that represent ordinary Zambians like Pension Funds.
Ba DONGO na SUNDU,
We blacks are a mess,i owe no one apologies just look at what they have done to TAZARA.they have milked it to death and sad enough even the leaders both in Tanzania and Zambia know who has stolen and what he has aquired but there is no action being taken.The chinese left a viable modern railway system.today there is nothing to talk about TAZARA. the railway line is dilapidated to an extent where in every two days there is a derailment.it is the cheapest mode of transport but people are prefering expensive trucks because you load on TAZARA your goods might end up in a ditch.thats what we blacks are known of.so please keep your paws off ZAMTEL.munasheko ne fisungu.
BA LT naimwe one day mukaponoka,what is there to moderate.when somebody insults Rupiah you dont moderate ifwe tulandeko generaly mwalya umulilo.ok manje fifuteni.
With a name such as Akapondo, it’s seems very bizarre to be calling others black when your name suggests that you are definitely a negro.
Float the shares and you will see that Zambians have the money to invest.
MMmmmmm, Yeah, Yes, just sell it the way you want. 5years down the line it was reported in Southern African Wireless magazine that the IMF and Worldbank wanted Zamtel to be sold and before this FTJ was known to call ZANACO, ZESCO and ZAMTEL as strategic companies not marked for privatization amidst pressure from IMF and Worldbank.
This means, the govt which lobbies for money from these institutions can not go back to ask for money to recapitalise Zamtel. They can not solicit for money else where either for the some cause because they are being watched and questioned. In the end its the wish of the Two financial instututions that will prevail.
Caution:
PLEASE DON”T SELL IT TO THE CHINEESE. They have cheap Technology. Radiation will kill Zambians due to lack of standards from China.
#81, AKAPONDO,
There is one thing you deliberatly forget ; and that is TAZARA is being mismanaged like ZESCO, Zamtel, healthcare, etc by government. It has nothing at all to do with being black.
I agree with Akapondo and trigo, zambian black people suffer form an inferiority complex where they think foreigners or white people can do things better than them . The private equity firm will probably loan the same 200 million from international banks and one wonders why the zed govt. couldn’t have cut them out and gone straight to the international banks. You see the same thing with employment of expatriates and foreigners over qualified zambians because zambians don’t have faith in themselves.
Bloggers!!!
This is not a matter of Zambians ability to buy shares, its also about the knowhow, the understanding of technological tends and services in Telecomms today. Telecomms firms know that Telecommunication technolgies are dynamic and moving at a very fast pace.Recapitalisation is the order of the day e.g. you can’t invest in an equipment today and hope to live with it for years and years. You and I know that what has killed Zamtel is stagnance in telecomms infrastructure, poltitic- as the firm funds political campaigns like Zesco and extremely power management. The company has neglected ICTs as in management information systems investiment for itself as well as its customers. It has extremely poor customer retention and care. What has killed Zamtel in COMPETITION.
Competition has brought Zamtel down to its knees. The company has no competitive age whatsoever
It doest understand completion at all. Take out other players Kaleza! Zamtel will come back on track. IN SHORT ZAMBIA AS A WHOLE LACK PROPER MANAGERS dont beat about the bush.
Zambian constitution must include 10% to be given to God from Zambian shares so that we run out of this problem. May Mt 6:33, Malachi 3:8-10, Prov 8:32-36, Prov 9: 22, Exodus 14:14, Psm 105:15, 2 Chr 7:13-15, Prov 34:15-24, Eccl 3:1, Jer 29:11-14, Habakuk 2:2-3, Haggai 1:5-9, and Prov 6:32-35 be for Zambians so that we get united and say the truth to shame the devil or else each one of us will reap what we are sowing especially the government. Zambian flag indicates that we have more greener paster and wealth which should be equal to people. Red is for the blood of Jesus instead of struggle since Zambia has been declared a Christian Nation. Let us remember that God is watching over each one of us.
Slumdog Shalapungu
With ABSA suing govt, which international bank besides the IMF and World Bank would be willing to lend the Zambian govt $200 million dollars especially in this global economic climate?
I prefer they sell the company to any other private firm for $200 million dollars and that money can be used for various infrastructure projects. If the company becomes profitable in the future, we win because we can tax it instead of subsidizing it like we are doing now. Next on the list, privatize the following, Dailymail, ZNBC, TAZARA, and more to come.
I think the Zambian people are tired of their tax money going into subsidizing ZAMTEL when they do not even own landlines. They own cellphones. I am pretty sure most of the Zambians are not even with Cell Z but are with ZAIN and MTN.
I think most Zambians are sick and tired with the situation where our tax money goes to a company who’s network we do not even use because most of us own cellphones nowadays.
Privatize it so it can be profitable and we can tax it instead of subsidize it.
Zedians are we ever going to learn from our passed mistakes? Look at what happened to the mines Chiluba sung about.These politicians in Zed are not committed to our nation except to steal every little we have,even donor money -Kapoko saga. Please my fellow Zedians 2011 is around the corner.Rise up.enough is enough.Say no to political abuse.
#91 Mr Capilist, Defaulting on one loan doesn’t make it impossible to lend from other banks. The loan between the barclays subsidiary is between the govt and it , it doesn’t affect the governments other loans. For you own information banks haven’t stopped lending money to governments they just have reduced on risky loan and Zamtel a national telecommunications giant is not risky it’s an investors wet dream. And what tax are you celebrating the ever dropping tax rate thats at 30% and with incentives to make investors richer and zambians poorer.
Slumdog Shalapungu
If govt defaults on one loan, this affects its record. This will mean in order for it to borrow from other banks, it will have to borrow at high interest rate. There are many things that will make it extremely difficult for govt to borrow money from an international bank unless it is the IMF and World Bank. First of all, the ZAMTEL books which look pretty bad at the moment. Second would be the simple reason that Zambia is located in Africa and has no credit rating. A country like Zambia with no credit rating and located in Africa will for the most part be considered a high risk investment. The third is the default rate. Zambia has defaulted on IMF and World Bank loans and these had to be written off and it is being sued by ABSA for defaulting. This will also
LT where is my post? Just because I insult RB and his entourage **** you moderate my post. There is a lot of rubish you publish on these so called leaders. My cat has better brain cells than RB. So shouldn’t be called an *****?
add to Zambia being a high risk investment. The third is this global financial crisis. The forth being where Zambia is ranked on the list of most corrupt countries. In short, Zambia can manage to borrow from an international bank but it will be very difficult and it will also be at a high interest rate.
On the issue of taxes. It is mostly an issue of opportunity costs. I find it a better alternative to get tax from ZAMTEL than to give money to ZAMTEL through subsidies. It is better ZAMTEL adds money to the national purse than it being a drain on the national purse. Of the two (privatize [tax], nationalize [subsidize]), I prefer to privatize and tax it.
Why borrow $200m to revump Zamtel when millions of zambian are unemployed and living in poverty. C’mon guys lets not brings some simple economics on this forum. These are not descisions you make with your key board. No invester will buy zamtel for $200m when it has $millions in debt, this is just governemnt wishful thinking because no one will lent them $200m for a non profit organisation. Lets not suck into it because it will never happen.
This company has been lacking initiative from management. Besides govt contributed to its fall by not paying the monies it owes this company. Privatizing has not worked and trust me this Sale will not do the company any good
Zambia can get a loan, they just did not want to get one they went for the option thats sounds easy to them . Bad credit rating or high interest rate does not stop any country form borrowing if anything it’s just a mere excuse not to work hard. They are banks out there willing and hungry to give out loans . If Zambia had failed to raise the 200 million through rejected loans and I would understand but not trying and coming with excuses of bad credit ratings is just ridiculous. If you are so sure of zambia not being able to get debt finance from international bank give me one example of such a loan rejection?
Slumdog Shalapngu
Before I comment, was your post on #99 meant for me?
#89,kellychinoock
You should know that monopoly over business kills a company more than competion does. In any case, in modern world every business faces competion. Competion should be rommended because it makes genuine business grow whilst fake ones shrink.
yes it was meant for you Mr capitalist
Judging from the flow of comments, I will assume it is meant for me.
Zambia can get a loan, they just did not want to get one they went for the option thats sounds easy to them .
I respect your opinion.
Bad credit rating or high interest rate does not stop any country form borrowing if anything it’s just a mere excuse not to work hard.
No one said it stops govt from borrowing. It makes it difficult.
They are banks out there willing and hungry to give out loans .
List them. List the banks that are willing and hungry to lend $200 million dollars to Zambia.
By this time everyone should understand that for our govt to run business profitably is out of question. There is enough evidence of financial mismanagment and corruption by govt. Therefore, profitable business rests into private ownership, and it’s the Zambian people that must take up this challenge. Africa shall be developed by Africans and Zambia by Zambians.
Dongo (66),
” I feel it is not a question of money but who to run the business. ”
I agree that the parastatals and civil service need protection against the imposition of politically connected individuals to management positions, and other political interference – which can be done through regulation.
My point about the $200 million that RB says is needed, is that there are many other ways of getting that kind of money, the most cost free (to the Zambian taxpayer) being taxing the mines.
If Zambia had failed to raise the 200 million through rejected loans and I would understand but not trying and coming with excuses of bad credit ratings is just ridiculous</b?
This comment is silly. No one on this blog has stated Zambia has a bad credit rating. The thing that I said is Zambia has got no credit rating. So I will dismiss this statement because it is full of lies.
If you are so sure of zambia not being able to get debt finance from international bank give me one example of such a loan rejection?
More lies Mr Slumdog. I never said Zambia is not able to get finance from international banks. I said it would be difficult and at a high interest rate.
If Zambia had failed to raise the 200 million through rejected loans and I would understand but not trying and coming with excuses of bad credit ratings is just ridiculous
This comment is silly. No one on this blog has stated Zambia has a bad credit rating. The thing that I said is Zambia has got no credit rating. So I will dismiss this statement because it is full of lies.
If you are so sure of zambia not being able to get debt finance from international bank give me one example of such a loan rejection?
More lies Mr Slumdog. I never said Zambia is not able to get finance from international banks. I said it would be difficult and at a high interest rate.
Maybe Kavindele and Vodacom will snap up the 75%
If Zambia had failed to raise the 200 million through rejected loans and I would understand but not trying and coming with excuses of bad credit ratings is just ridiculous
This comment is silly. No one on this blog has stated Zambia has a bad credit rating. The thing that I said is Zambia has got no credit rating. So I will dismiss this statement because it is full of lies.
If you are so sure of zambia not being able to get debt finance from international bank give me one example of such a loan rejection?
More lies Mr Slumdog. I never said Zambia is not able to get finance from international banks. I said it would be difficult and at a high interest rate.
It will not be fair for Zambia to keep on paying for a failing institution like ZAMTEL when UNZA is facing similar financial trouble. It will not be fair to increase taxes so as to be able to meet the interest payments such a loan would demand because that is what is likely to happen.
We have learnt throughout Zambia’s history that state run institutions never turn out to be as innovative and profitable as private run institutions. All you have to do is make a simple comparison between MUVI TV and ZNBC (which receives subsidies through TV licenses btw). Which one provides better service delivery in Lusaka?
GOVERNMENT HAS NO BUSINESS IN BUSINESS
Any competent international bank would lend money to zamtel a company with such great prospects . I don’t need to mention the banks because a list will do you no good if you haven’t even bothered to check if they will lend you the money. Even if a bank was to reject the 200 Million laon any competent diligent borrower would spread the cost and break the loan down into chunks and borrow from even more than 10 banks. Thats what the private equity partner will probably do they will lend the 200 million from a lot of banks come 5-10 years they will pay back the 200 million and walk away with probably 400 Million.
#112 Do you mean to say “government has no business in encouraging homegrown zambian business” Lol 🙂
Slumdog #113
The equity partner will be in a better position to do that because the equity partner will for the most part have a cleaner record than Zambia.
The other thing is the equity partner will be able to pay back because the equity partner will run it as a private business and not a national business. The goal of private businesses is to make profit. The equity partner running ZAMTEL efficiently will be able to make profits, improve ZAMTEL and pay back the loans. The govt might land the company back into this financial situation and will have to raise taxes so as to finance the loans it got. Either that or default.
Mr capitalist if you have nothing intelligent to say and want to focus on semantics I siuggest you desist . You are the one implying that a loan is difficult to get while you haven’t even bothered so really who is telling lies you or me. I asked you a simple question to show me one loan rejection and you have failed and want to concentrate on silly semantics. The fact remains zambia can get a loan and it has never failed to get one so why you keep going on about high interest rate as if that would stop any bank.
Ine #114
No I don’t mean to say that. I mean to say what I wrote on #112.
#115 It seems you are taking speculation for facts, what makes you think an equity partner is in a way better position than the government. Equtiy partners and mutual funds are the most corrupt organisations on this planet that are responsible for the economic downturn, arm sales and laundering money. This is the same inferiority complex exhibited by zambians where you think people can do better than you without any tangible proof apart from deep seed assumptions and assertions. If you know the name of the equity partner show me it’s history and lets see, don’t just assume what you don’t know
Believe you me… this is a wrong decision by GRZ for the following reasons;
1. Who ever the majority equity partner will not be obligated to service low profit areas like mporokoso… I know this as I have worked for Big Telcom in RSA… because private entities are only driven by profit. 2. Zamtel has huge asset base which GRZ would colateral to access loan. My suggest; GRZ should lisence a Second National Operator to get Zamtel working. And pls GRZ pay your debt to Zamtel ..
Slumdog
You are the one implying that a loan is difficult to get while you haven’t even bothered so really who is telling lies you or me.
I never said a loan is difficult to get. I said a loan to finance ZAMTEL by Zambia is difficult to get. You are the one telling lies. Even someone who wants to start a restaurant can get a loan. In that case, a loan is not difficult to get. In the case of Zambia, its record and ZAMTEL, yes it is difficult to get and I have outlined the reasons why.
EN,
You will do yourself a great honour by keeping away from fights,i’ll bruise you to an extent where you wont even have lust for your wife tonight.when i said “we blacks” wasn’t i accepting one fact that iam a negro just like you muppet.why scorning me?
You just want to show off your beef? Ok.
I asked you a simple question to show me one loan rejection and you have failed and want to concentrate on silly semantics.
This is like a situation where an atheist tells a christian God does not exists and a christian tells an atheist God does exist. The only problem is neither can prove with verifiable evidence that God exists or does not exist.
Same thing, just because the Zambian govt (to my knowledge) has not made an attempt to get the $200 million dollar loans does not mean a loan is easy. There may be other reasons as to why they have not taken this route and want ZAMTEL to be in private hands. It could be to avoid such a situation in the future, to make ZAMTEL profitable, etc.
The challenge thrown at HH by Mr. Konga is one irresponsible way of doing business. This is because there is no respectable business which one can sell off in that kind of emotional manner. The Cabinet Committee on Zamtel should have first offerred all shares to Zambians and only look for foreign investors as a last resort. The Committee assumed too much when they convinced themselves that there is no Zambian with $200 M to buy the shares. If that was the case then why throw a challenge at HH! This shows that Mr Kongo still believes that there are Zambians like HH who can have this money or can acquire from banks.
As a matter of fact, any well meaning business is always done thruogh loans from banks and not money from one’s pocket .
The fact remains zambia can get a loan and it has never failed to get one so why you keep going on about high interest rate as if that would stop any bank.
I go on about interest rates because they affect Zambia and all Zambians. They affect our taxes, our ability to get low interest loans, etc. If you don’t care about interest rates then that is fine but most people in the financial field care about interest rates.
So you know that the loan for Zamtel is difficult to get exactly how? did you file an application on behalf of the govt. and then told of the reasons or did you just imagine up reasons
Cont’
The right question Mr. Kongo and his Committee were supposed to ask was are there Zambians who can acquire loans from banks (local or international) to be able to buy these shares from Zamtel. The truth is that there are!
#118
Here is the definition of “equity partner”:An equity partner is a partner in a partnership who is a part owner of the business, and is entitled to a proportion of the distributable profits
In short, an equity partner can be anyone as long as they have part ownership in the business. My question is why did you jump the gun to start talking about mutual funds and pension funds when by definition, an equity partner can be anyone.
Second thing is I am for the idea that govt should not own a business unless it is one providing public goods like education and health but even that should be subject to private competition. In short, I don’t care if the equity partner is Zambian or from Somalia, as long 2 conditions are met.
The bottom line is 10,000 more already struggling Zambians will be left unemployed after this chosen process. 100,000 Zambian lives will be negatively impacted by this. Period. How can a person imply that MASS EMPLOYMENT WAS THE POLICY TAKEN before so called liberalisation which now needs to be restructured. How could MASS EMPLOYMENT of Zambians by Zambians be a bad thing? Im struggling to undertand the moral responsibility in all this. Nobody cares about 100,000 lives put into jeopardy by this irresponsible move. For me this is the single most important issue that must be addressed and should be the issue we should be discussing.. What plans have been put in place for these people, coy assets & facilities that will be deemed non core.
People condemning the proposed sale of 75% share are really doing just for the sake of it and not understanding the situation.The ZAMTEL employees themselves have no problem with the proposal(see statement by NUCW president).I also have close friends who work at Lamya house in Lusaka and they all agree with the sale.All also agree that an outside injection of capital is needed for the survival of ZAMTEL as the current situation places serious doubts on the entity as a going concern.A new vision from an outside investor(Not GRZ) would also enable ZAMTEL compete with the likes of ZAIN and MTN .
1. ZAMTEL is in private hands.
2. ZAMTEL under private hands can be run efficiently.
Konga is one of the bootlickers therefore he is inacapable of both thinking straight and talking sense. What is surprising is the “loud” silence of the Zambian trade unions on the matter. Has ZCTU become so toothless that it cannot even utter a word? ZCTU should take a leaf from COSATU (Congress of South African Trade Unions) which does not compromise when it comes to such matters. ZCTU wake up from your deep slumber.
People condemning the proposed sale of 75% share are really doing just so for the sake of it and not understanding the situation.The ZAMTEL employees themselves have no problem with the proposal(see statement by NUCW president).I also have close friends who work at Lamya house in Lusaka and they all agree with the sale.All also agree that an outside injection of capital is needed for the survival of ZAMTEL as the current situation places serious doubts on the entity as a going concern.A new vision from an outside investor(Not GRZ) would also enable ZAMTEL compete with the likes of ZAIN and MTN .
So you know that the loan for Zamtel is difficult to get exactly how? did you file an application on behalf of the govt. and then told of the reasons or did you just imagine up reasons
No, I just put in the factors and came to my conclusion with data. This is not uncommon. I am pretty certain that banks take into consideration the reasons I pointed out.
Free-Market Capitalist, really dont know much about economics but the ‘invitation” for HH to buy off 75% of the shares sounds a bit childish on the part of Konga.
Really you must be joking. The clues are there that this is an international mutual fund. Clue 1 it’s an internationally incorporated company with a pool of money or resource to get that money. It can partner with the government banks or international normal companies don’t partner with governments.clue three it’s private . Lets give it a wait and see if am correct because teh M.O. of this deal sounds like a classic Mutual fund deal where the african government will remain in a worser position than before.
Fellow Zambians,
lack of self belief has been the reason our leaders do what they do. Reading the contributions on this blog regarding what the minister has said by and large seems to conform to what most bloggers are saying but put in a different language-it is an unfortunate state of affairs. We as a country are doomed to want to believe that solutions are not home grown. When we have nationalised, we have run the companies into the ground. When we have privatised, we have been scared into giving concessions that disdvantage us to simplify the benefits to simply “job creation”. Out of the 12m zambians the impact from either scenario on the population is non-existent. The biggest problem is that we have a very unfortunate problem-OUR ATTITUDE. till then no option is sustainable
WE CAN,
iam not deliberately missing any point,all am doing is to acknoledge that TAZARA as been mismanaged by the goverments of black people just like those institutions you mentioned.before the chinese left they left TAZARA on a very sound footing and the operations were smooth with a high turnover.now what magic did the chinese carry with them which has made it difficuilt for our fellow black managers to carry on where the chinese left.you just tend to wonder where these guys take the money.one train weather going up or down can carry upto 32 wagons at a time and there are goods on either side copper from zambia and imports from the port and one wagon is about $4000.even after running cost where does the rest go?
#135
Once again, I respect your opinion. I cannot jump the gun and conclude it is a mutual fund even before the equity partner is revealed. So I respect your opinion.
#134 Ba Dr Maureen
Please explain why I really don’t know much about economics?
I would like to know the reason as to how you came to this conclusion.
#136 you talk about self belief and Attitude.ZAMTEL has been in existence for many years under the management of indigenous Zambians.It has also been in existence under four different govt’s KK,FTJ,LM and now RB.The entity is still at the tail end of the telecommunications business in Zambia.Foreign companies who just entered the Zambian market are way ahead of ZAMTEL.This says a lot about the 12 m Zambians,doesn’t it?
Anyway I am off. See you tomorrow Bloggers.
#140,is it true that “Foreign companies who just entered the Zambian market are way ahead of ZAMTEL”?If thats true then its very sad but I doubt it.How did you arrive at that anyway?
Capitalist and Senior Citizen, the question this Kande should be asking is has HH invested in Zamtel? If Zamtel is not making money, it is not HH’s baby to come up with 75% but Zamtel itself. The government if it sees that this is a strategic industry has the option to resustate it by pumping in money on credit some money. The challenge in all fairness is childish and ill concieved to an extent any who supports it falls in that category. Let me find out here, is Luse functional?, Is Zamtel publicly traded or not? If it is, how does the government just pick up 75% of its shares and sell to these Chinese? Let Zamtel issue stock options and tomorrow government will be off its backs. The other issue is were is the report from the Caymen Island consultation firm? Show the report first.
#139 I actually ommited ‘I” Where you off to ? We need more info on this stuff man
I dont think that capitalism is good for a poor country like Zambia. Neither is complete privatization. Notions of capitalism would ve worked better if we as Zambians had capital ourselves. ‘You can not be a free market capitalist state that has no capital’ cos take capital away and you end up only as a free, for all, market state. And I dont think thats good. I think we should ‘ve certain sectors returned and run under government, for now.
#136, I totally agree with you. What RB should do is to sell 25% to the private company (local or foreign) with management rights. While put 50% on IPO on LUSE, where every Zambian can buy. For IPO you dont need rich HH. Then Govt can remain with 25%. We are NOT against privatizing of Zamtel. But our worry, is that the 75% will be sold cheaply. We dont seems to learn anything from the past as Zambian. Look at ZANACO, RABOBANK got 49% at 8m dollars, Bwalya Chiti offered 12m (His offer was turned down, because he didnt declare that he is MMD member). While when 25% was put on LUSE IPO, ORDINARY Zambian bought shares, and 40m dollars was raised. Meaning, Zambian bought a small percent at very high price. Believe me, that 200m can be raised within Zambia, if they can only put on LUSE.
We have a serious situation in the country and yet the president is busy talking about ”thier” midterm gratuity, this just shows us how unserious he is. MMd cares about nobody but themselves.
Its at a SHAME indeed to hear a WHOLE-ENTIRE-FULL-COMPLETE Minister, in his OFFICIAL CAPACITY making such as statement as this. This is more than childish, much more that ukubuta. THIS IS TRAGEDY!!!! Natulile fwe bena Zambia. Lets us weep.
It’s not rocket science. The government is retaining 25% . Give institutions 35% and give 40% to the general public in form of subscription – ask the public to apply for 100 shares minimum and 2000 shares maximum and what the public can’t buy offer to institutions. Allocate time to settle the purchase, say two months before shares start to trade on the stock exchange.
This system as proved to be fairer and worked so well for western countries and has spawned interest in share dealing among the novice. This sale would raise more money than the 200 million dollars government estimate. You be the judge
What RB should do is to sell 25% to the private company (local or foreign) with management rights. While put 50% on IPO on LUSE, where every Zambian can buy. For IPO you dont need rich HH. Then Govt can remain with 25%. We are NOT against privatizing of Zamtel. But our worry, is that the 75% will be sold cheaply. We dont seems to learn anything from the past as Zambian. Look at ZANACO, RABOBANK got 49% at 8m dollars, Bwalya Chiti offered 12m (His offer was turned down, because he didnt declare that he is MMD member). While when 25% was put on LUSE IPO, ORDINARY Zambian bought shares, and 40m dollars was raised. Meaning, Zambian bought a small percent at very high price. Believe me, that 200m can be raised within Zambia, if they can only put on LUSE.
What does 25% for Zambians mean?
Does 75% mean “for foreigners”?
May be we have confused ourselves.
It may be that the 25% is for Zambians as in ordinary Zambians so they can have a stake in the new Zamtel, like employees now have a 17% stake in the new GM in USA.
It may then mean the 75% share is up for grabs by anyone – Ordinary Zambian, Zambian institutions and companies, foreigners and foreign companies etc.
Is this correct?
# 25 ZANIS,
Stop insulting LT and simply come up with your own blog to dictate PF agenda of fantasy.Do you have one to show us? Why do you blog here if it is a useless blog anyway?We know you PF thugs like your embattled and desperate life time loser Sata you have every characteristic of ADD. Yours is a tendency of insulting anything that refuses to charter your thug’s orchestra.In being rational, diverse and independent, LT is being a voice for intellectuals and kaponyas like you.If your vocation to insult converts citizens into voters good lucky otherwise,its the usual futureless rubbish rumbling noise of vanity PF is known for.
#151, If only you had taken time to read the above article ” Zamtel has a huge debt and requires a capital injection of not less than US$200 million to survive. He said there is no Zambian with such kind of money to invest in the company.” Meaning, NO ordinary Zambian for 75%.
We should learn from what happened to Malawi;
“The Malawian government sold Malawi Telecom to private owners in 2006 for $27 million. Now owned by a consortium of Germany’s Detecon International, South Africa’s Standard Bank and the Development Bank of Southern Africa, striking workers have disrupted operations several times since privatization, demanding improved conditions and higher salaries.”
#140 Dob
This is for your information
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 155,000 mobile phone subscribers and 117,000 fixed line subscribers.The point is that ZAMTEL has been in operation(as a monopoly) and managed by indigenous Zambians since the it was separated from ZAMPOST in the late 80’s.Look at where it is now.Foreign companies are now leading the industry.Zambians lets not be narrow minded about things.We must accept failure and do the right thing.Sell 75% if not 100% of ZAMTEL.Let people who know how to run large corporations take over the company.I rest my case
INDEPENDENT,
You are absolutely right let we blacks start accepting failure.and we have to be wary with these politicians.HH is castigating his friend RB simply because he is another camp and would like to be seen as a person speaking for the zambians yet if he was in that position he would also do the same.if he was caring enough for the zambian people.why do speculations always arise that he did a sham job when liquidating LIMA BANK.he ended up a richman whilst some folks haven’t got what they worked for up to todate.POLITICIANS ARE THE SAME
On “GOVERNMENT has challenged United Party for National Development (UPND) president, Hakainde Hichilema to acquire the 75 per cent equity partner shares in Zamtel if he thinks the 25 per cent shares which will be reserved for Zambians after privatisation are not enought“, is this the way the MMD GRZ want to finish president HH’s money in their possible utilising of that money to run MMD business like campaigns.
President HH and the rest of the PACT Team, beware of characters who are bent on destroying your initiative. While it would be nice for you to acquire some shares in Zamtel, are you really into telecommunications pres. HH?
Have a blessed day all.
_
2 Corinthians 11 + KJV Bible
11:14 And no marvel; for Satan himself is transformed into an angel of…
I am busy saving to buy shares in ZAMTEL when they are available on LUSE. Some of you were getting loans to buy corrolas. Why can’t you think of investiment? Stop yaping -yaping. Lets all save a bit and own ZAMTEL and we surely would need more than 25% if all of us could think a little more. You dont’t need a lot of money. You start small. Brothers and Sisters we can buys shares in Zamtel, all of us. Stop looking at other people, ask yourself a simple question. What does this mean for me?
#154,much appreciated but those figures with balance sheets would have helped me appreciate your point better because I guess your unstated hypothesis here is that the more subcribers a company has, the more money it makes,right?Somehow I still feel Zamtel has more assets and better infrastructure than any phone company in Zambia so that should translate into a better balance sheet than any of the companies you’ve mentioned.If you choose to assess a company by just looking at its subscribers and ignore its assets then thats entirely up to you but I would not do that.My view is that management at Zamtel has been bad but that doesn’t make it “behind” other mobile companies in terms of rankings.
Konga is behaving like he has never done business..This is a guy who was a top executive in Zesco and can talk crap. To buy Zamtel, u dont need to have money.. Most money used to acquire such compnaies comes from Banks. Even foreign investors get ahead of us because they get their countries bank support to acquire companies.
All what is required is for Zambians with good track record of management like HH to form a consortium and put up a good business proposal and seek for Bank loans to fund their acqusition..Period
With 200million Dollars, I would rather build a new network free of Zamtel incompetent workers and complications.
let this govt break Zamtel into two and sale the Mobile Network business. Zamtel can retain 25% of the CellZ shares and they get to benefit from the Efficent oprration of CellZ. I propose that CellZ shares are distributed as follows: 25% Zamtel, 26% IPO on stock exchange and 49% to Investor(Local or Foreign or combination) with Management rights and power to more Board decisions.
Give this Company- possibly rebranded 5 years to show profits before they are accorded extra shares from the Zamtel pool of 25%. The Preference of Buyers should be world known operators which do not exist yet in Zambia companies like Orange, Vodacom,etc. There is an advantage in such kind of linkage
Abwenzi,
” Do not overlook that fact that there are wealthy Zambians out there. We as Zambians should stop complaining & blaming others for our own mess. Where are the rich Zambians who should form a consortium to buy these Zamtel shares. ”
There aren’t any – how many shares can the pension fund buy? Why would these companies be better run just by them being in private hands? The crucial difference is regulation, whether we are talking about the public sector or the private sector.
Also look at it this way. If the current government is not willing to run ZAMTEL in an efficient manner, why would they sell it in an efficient or beneficial manner? Just because these corporations are privately owned, does not allow anyone to run away from an unregulated environment.
Do You Trust RB (Yes/NO}???
Ha,Konga is a bloody fool! HH we have to create a competitor to Zamtel,tkae all the customer by providing top customer care and service,when Zamtel goes down,then we buy them out lock stock and barrel,yeah baby!!!!!!!!!!!
senior citen and mr capitalist.wabe T