The Zambian government has resolved to sell 75 percent of national operator Zamtel to a private equity partner and retain a 25 percent share, the Lusaka Times reports. President Rupiah Banda told Zamtel management and employees that the partial privatisation of the company was the only way to resolve the financial problems and enhance the viability of the company. Banda said Zamtel needs about USD 200 million to recapitalize, and the government would have to take money away from social services to supply the funding. The government will hold on to 25 percent and possibly later sell these shares to the public through the Lusaka Stock Exchange. The equity partner has not yet been identified, but the government pledged to name a strong and credible partner who will revitalise the company so that it can efficiently contribute to the economic development of the country. Any workers laid off as a result of the privatisation were also promised compensation. The government will not give an operating licence to any new mobile service provider until Zamtel under a new partner is established so as to protect the company. Privatisation of Zamtel will also mean the liberalisation of the international gateway controlled by the operator, but the company will still have the fibre network under installation as its competitive advantage.
