Zamtel: President issues reassurances

BUSINESS

Zambian President Michael Sata is seeking to calm foreign investors and Zamtel workers in light of the debate over the Zamtel sale.

Zamtel was a state-owned entity until Libya’s LAP Green Networks took a 75% stake in the telco in 2010. An official report on the sale, made public this year, says there were irregularities in the process.

The report said LAP Green had failed to meet three key conditions for the sale, relating to the time it had been operational in Zambia, the number of registered subscribers it had, and a minimum shareholders’ equity or market capitalisation.

Heated debate and speculation followed, with reports that the sale could be reversed.

Criticising reports that spread “alarm and despondency”, the President has assured foreign investors that Zambia remains a viable investment destination. He noted that the country was peaceful, stable and committed to the rule of law.

He also told Zamtel’s employees that while a reversal was possible, Zamtel remained a viable entity. He said any uncertainty was temporary, and that government action on the matter would be in their best interests.

Referring to news that some Zamtel accounts had been frozen, the President said if accounts had been frozen, it was in the public interest.