Zambian government resolves to privatize Zamtel

The Zambian government has resolved to partially privatize the financially troubled Zambia Telecommunications (Zamtel) within four months in order to save the company from collapse.

Even though Zamtel is dealing in a profitable sector, the government has realized that it has been operating at a loss for many years, Minister of Communications and Transport Dora Siliya told Zamtel workers in Ndola last week. Unless the government moves quickly to find an equity partner, the company will continue to sink, she added.

"The government has already identified a firm to do the company's asset evaluation, which would be completed this month end," Siliya said.

Following the asset evaluation process, the government will open tenders for interested companies to become equity partners in Zamtel.

The new equity partners will need to overhaul Zamtel's business fundamentals, structures and work culture in order for the company to compete with private service providers, Siliya said.