Zambia’s President Michael Sata spoke out in an effort to reassure foreign investors over the country’s possible reversal of a sale of the state-owned telecom operator Zamtel to Libya.
His comments come after the country said it was looking into cancelling the deal with Libya’s LAP Green over its connections to the former Muammar Gaddafi regime in the North African country.
“Investors who are here and those planning to invest in our country are assured Zambia is a reliable investment destination,” he said in a statement.
Sata launched a probe into the 2010 sale of a 75% stake in Zamtel to LAP Green for $257 million, alleging that the deal was marred by corruption.
On Sunday he indicated that the sale could be reversed but told Zamtel employees that they did not need to worry as the company remained viable.
He said that LAP Green had failed to meet three key conditions for the sale.
LAP Green, part of the Libyan government’s foreign investment operation, denies any wrongdoing in its takeover of the fixed-line operator.
Andrew Matapare
