Maravi

(LUSAKATIMES) More back Zamtel privatisation

More back Zamtel privatisation
December 7, 2008

ECONOMISTS have given mixed reactions to Government’s proposal to partially privatise Zamtel in an effort to make the telecommunications company viable. While some of the experts suggest that there be an outright privatisation of the company, others are agreeing with Government that there be a partial privatisation.

They, however, all agree that the company could be viable and that recapitalisation could revive it and turn it into a self-sustaining firm.

Minister of Transport and Communication, Dora Siliya, said last week that Government was considering privatising Zamtel to make it viable.

Ms Siliya said Government had no money to continue subsiding Zamtel’s operations.

The Zambia Chamber of Commerce and Industry (ZACCI) has welcomed Government move to find an equity partner for Zamtel to make it more viable.

ZACCI chairman, Justin Chisulo, said in an interview yesterday that an equity partner for Zamtel was the best option for Government.

Mr Chisulo said the company was a viable institution but it required excellence in land phone services. He said land phone services should be broadened.

He said the company should also broaden its communication services through the optic fibre network project currently being undertaken.

“Zamtel can either be scrapped or find somebody else to revamp it,” he said.

He said an equity partner would also have to look at the staffing levels at the company.

An economist, Mr Andrew Kamanga, said the continued financial constraints at Zamtel have prompted the proposal.

“Whenever such happens, it is incumbent upon the shareholders to find the required capital,” Mr Kamanga said.

He said Government should consider a public-private partnership rather than total privatisation.

Mr Kamanga said the communication industry has been competitive and Zamtel should reposition itself to survive.

“This may entail increasing tariffs to meet the costs,” Mr Kamanga said.

A business analyst, Chibamba Kanyama, said the telecommunications industry had become more competitive and highly lucrative.

Mr Kanyama said Zamtel could be profitable under its current ownership.

He said Zamtel needed total recapitalisation, and setting up of new technology network for both landlines and mobile network.

Mr Kanyama said Zamtel has been subdued by other telecommunication players on the local market because it was not being re-capitalised.

“With failure by the Government to re-capitalise it, there is need to give Zamtel to a new player,” he said.
He said once the new player takes over Zamtel, there should be no interface between the balance sheets for landlines and mobile services.

Mr Kanyama has also appealed to the Government to pay back all the debts owed to Zamtel to make it more viable.

He said once the new player takes over, Government should give it a number of years before it could start getting dividends from it.

He said the new owners should be given time to recover what would have been spent over the liabilities of the company

[Daily mail]

Labels: PRIVATISATION, ZAMTEL

posted by MrK @ 6:27 PM