Zambia sells 75% of Zamtel

Lusaka (IT News Africa) — ZAMBIA President Rupiah Banda has announced that his government has sold 75% of Zambia Telecommunications Corporation(Zamtel) to a private equity partner.
Zamtel is said to be in need of $200m to recapitalize.

The Zambian government will now retain 25 percent shares saying this will enable the company operate profitably.

Banda was addressing Zamtel management and employees at Zamtel College, in Ndola. He said the move was the only way to resolve the financial problems the company is facing while enhancing the viability of the company.

The government will possibly sell its 25 percent stake to the public through the Lusaka Stock Exchange, he added.

Speaking at the same event, Communications and Transport Minister Professor Geoffrey Lungwangwa said Zamtel is a sleeping economic giant that can bring significant development if its problems are resolved.

Zamtel Managing Director Mukela Muyunda said the company management was willing to work with government in solving the problems of the company.