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Zambia’s state run telecoms firm Zamtel has been put up for sale for an undisclosed amount. This was announced by the Acting Chief Executive Officer of the entity Joshua Malupenga.
The government is said to have already found an equity partner to run the company, reported the Lusaka Times.
The move follows revelations by Science and Technology Minister Felix Mutati, who said the telco was loss making and that government had no intentions of recapitalising the company.
After a meeting to brief workers on the new developments, an unnamed source told the media that, the Acting CEO told staff that a decision had already been taken and they have to be ready for the changes that will come with the new equity partner and that job losses were inevitable, the source said.
According to Malupenga, the government has set a target to get the new equity partner in before the August 2022.
It is estimated that Zamtel currently needs a sum of US$265 million in order to survive as a company by way of investing in its co-networks, infrastructure and other business support services, according to Minister Mutati.
He recently disclosed that Zamtel is a loss-making venture with about 90 percent of its revenue being utilized for administrative expenses.
Mutati added that the government will however, not recapitalize Zamtel because it has other priorities it intends to spend its resources.
Zamtel also has a staggering debt of around K3 billion and the over $500 million owed to Libya’s Lapgreen Networks, without taking into account other liabilities.
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