ZAIN to outsource call centre and back office services
Tuesday, October 26, 2010, 21:04
Zain has announced plans to outsource call centre and back office services. Bharti Airtel which owns and operates the Zain brand in 16 AFRICAN countries says it will soon conclude the deal with IBM Tech Mahindra and Spanco which will run the customer services for Bharti Airtel.
A statement issued by the firm says the deal will allow its 40 million mobile customers to enjoy world class customer services.
The statements says IBM Tech Mahindra and Spanco will introduce quality best practices based on their experiences of working with international organisations in the telecommunications, banking, finance, insurance and retail sectors.
The firm says this will also lead to the development of the nascent African Business Process Outsourcing sector which promises to deliver economic growth to many countries across the continent.
ZNBC
Labels: MOBILE PHONES, OUTSOURCING, ZAIN ZAMBIA LIMITED PLC
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State House has become link in shoddy deals – Kabimba
By George Chellah
Thu 02 Sep. 2010, 04:02 CAT
Patriotic Front secretary general Wynter Kabimba yesterday said State House has become a bedrock and link in shoddy deals, which are compounding the poverty and misery of Zambians. And Kabimba warned Bharti Airtel that PF shall not allow the perpetration of fraudulent transactions against Zambians.
Commenting on revelations that Bharti Airtel through one of President Rupiah Banda’s sons is seeking State House’s intervention to force the Securities and Exchange Commission (SEC) to have the share price for Zain Zambia reduced, Kabimba condemned the manoeuvres.
“An attempt to reduce the value of shares against the Zambian shareholders in Zain is not only an act of fraud but an act of absolute bad faith in the manner that Bharti Airtel intends to conduct its business in Zambia after buying Zain Zambia,” Kabimba said.
“This situation where State House has become the Ministry of Commerce, Trade and Industry in Zambia through people that are not employees of government reminds me of the late Julius Nyerere’s comment during the regime of president Ali Hassan Mwinyi of Tanzania when Nyerere said, ‘it is difficult for us to fight corruption when corruption starts at the door steps of State House’.
“One can therefore ask the question that who then shall save the people of Zambia if State House becomes the bedrock and link in shoddy deals which go to compound the poverty and misery of the Zambian people?”
Kabimba said many Zambians used their terminal benefits to invest in Zain Zambia.
“The majority of Zambian shareholders in Zain bought their shares in that company out of moneys paid to them as terminal benefits after losing employment, which loss of employment was caused by the same MMD government which is now going against their investment which is their only ultimate hope,” Kabimba said.
“This cannot be a government that cares about the people of Zambia and it’s difficult for anyone to believe that the President as head of state may not know what is going on at State House in such matters.”
Kabimba said PF would stand by Zambians in the matter.
“As PF, we would like to caution Bharti Airtel that we shall not allow the perpetration of such a fraudulent transaction against the Zambian people. And if they want to conduct business in Zambia, I would advise them to respect and honour the investment by the humble Zambians in Zain as they buy the company,” Kabimba said.
“Failure to do so, we shall stand by our people and ensure that equity prevails. I am sure this will be a timely piece of advice to Bharti Airtel and they can only proceed with the transaction in question at their own risk.”
Kabimba said it was clear that the Bharti Airtel transaction might just turn out to be another Zamtel and RP Capital saga.
“In the Dora Siliya tribunal there was clear evidence laid before the tribunal that the President’s son Henry Banda was involved in the brokerage of the consultancy for RP Capital in respect of Zamtel outside the prescribed procurement procedures. This matter which involved a payment of colossal sums of taxpayer’s money to RP Capital is still an outstanding matter as far as the people of Zambia are concerned,” Kabimba said.
“As PF we shall insist that the truth should be known. It’s therefore unfortunate that Bharti Airtel is falling into the same trap of using State House as an entry point in its business transaction to the detriment of the Zambian shareholders in Zain Zambia.”
Bharti Airtel is trying to use one of President Banda’s sons in their manoeuvres to have the SEC reduce the Zain share price.
Recently, Bharti Airtel Africa chief executive officer Manoj Kohli came into the country and held a meeting with people at State House on August 21, 2010.
This was after the SEC proposed that they set the price at K1,126 per share for mandatory offer.
Labels: BHARTI AIRTEL, CORRUPTION, PF, RP CAPITAL PARTNERS, RUPIAH BANDA, STATE HOUSE, WYNTER KABIMBA, ZAIN ZAMBIA LIMITED PLC
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Bharti moves to buy 20% minority Zain shares listed on LuSE
By Chiwoyu Sinyangwe
Mon 21 June 2010, 12:50 CAT
BHARTI Airtel intends to buy the 20 per cent Zain Zambia Plc shares, a move which might lead to the biggest mobile company de-listing from Lusaka Stock Exchange (LuSE). And Celtel Zambia Pls share has continued to record steady gains amidst some movement, closing trading last Friday at K690 although coming down by K5.
This month, Bharti Airtel which is owned by Indian wealthy business Sunil Bharti Mittal recently completed the US $10.7 billion acquisition of Kuwait-based Zain's African franchise except in Sudan and Morocco.
In a public announcement to shareholders and the Zambian market by the sponsoring broker Pangaea Renaissance, Bharti Airtel intends to acquire the Celtel Zambia Plc shares which trade on the local bourse as Zain Zambia in accordance with the Securities Act.
Pangaea Renaissance stated that Bharti Airtel’s acquisition of Celtel Zambia Plc shares would depend on the minority Zambians selling their shares when the offer comes.
“Bharti intends to make a general offer to acquire the remaining shares of Celtel Zambia Plc which it does not currently own,” Pangaea Renaissance stated. “The effect of the general offer is to give eligible minority shareholders in Zain Zambia the opportunity to sell their shares, wholly, partially, or not to sell any of their shares, at their sole discretion, to Bharti, during the offer period when it is announced…”
Zain Zambia Plc is the country’s biggest mobile phone company with 3 million mobile telephone subscribers and was the only listed unit in all the African operations were Zain Group operated.
And LuSE stated that Celtel Zambia which listed in 2008 in the country’s biggest IPO, valuing the company at US $1.17 billion continue to trade very actively.
LuSE stated that Celtel Zambia share closed trading yesterday at K690 having listed at 640 kwacha two year ago.
“The all share index recorded a decrease of -0.23 per cent to end trading at 2,890.58 points,” LuSE stated on its website. “Celtel was the only security that recorded a price movement, it closed at K690, down by K5. A total of 18 trades were recorded, involving 96,260 shares worth K64.3 million.”
Labels: BHARTI AIRTEL, LUSE, ZAIN ZAMBIA LIMITED PLC
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Zain Zambia ranked most expensive service provider – survey
By Moses Kuwema
Fri 11 June 2010, 14:30 CAT
ZAIN Zambia has been ranked as the most
expensive service provider in the country according to a consumer protection research report for 2010 on mobile service providers.
The research was conducted by Charley Lewis from the University of the Witwatersrand and David Mukosa from the University of Zambia.
“In this case a substantial majority of 63 per cent ranked Zain as the most expensive, reasons given for interviewees’ rankings were varied and sometimes mixed,” Lewis said.
“The difficulty in obtaining clear information is further compounded by the lack of comparability across service provider package, and the plethora of short term special offers,” he said.
Lewis said the report further went on to find out the service provider they thought was the best and worst.
“Interestingly, Zain previously ranked as the most expensive is nonetheless felt to be the best by fully 50 per cent of respondents, with MTN ranked best by further 38 per cent. In both cases this may mirror the fact that the overwhelming majority of interviewees owned Zain sim cards, inter alia,” he said.
Lewis said Zain was also ranked as the worst service provider adding that some interviewees complained of the cost of service with 58 per cent of the interviewees indicating that the cost of service was expensive.
“On call charges, few interviewees appear to have detailed knowledge of call charges, with some apparently not even sure of how to ascertain this. Of the 24 interviewees, 13 replied that charges were not made clear to them while four of them were not sure and the rest replied that charges were made clear by the service providers,” he said.
The qualitative research involved in-depth semi-structured face-to-face interviews with 24 individuals from different countrywide geographical locations.
The research was conducted with the support and approval of the Association of Regulators in Central, East and Southern Africa (ARICEA) and the support of the International Development Research Center (IDRC) of Canada.
Lewis hoped that the findings in the research report will empower policy makers and regulators in charting the way forward to protect consumer rights in the ICT sector
Labels: MOBILE PHONES, ZAIN ZAMBIA LIMITED PLC
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Zain pledges support for traditional ceremonies
By Christopher Miti in Chipata
Sun 28 Feb. 2010, 03:40 CAT
ZAIN Zambia has pledged to continue supporting various traditional ceremonies in the country.
Handing over a guest wing built at a cost of K200 million to paramount chief Mpezeni at Laweni where he lodges before the Nc'wala ceremony, Zain acting managing director Mark Ocitti said the campany was humbled and honoured for having been asked by Mpezeni to erect a guest wing to be used especially during the annual ceremony as he moves from his palace to Laweni, his temporal one.
He said the guest wing had been built in almost two months. Ocitti also said Zain had sponsored the refurbishment of a VIP shelter at the Nc'wala ceremony's main arena at a cost of K35 million and K15 million to the organising committee for logistical support.
And Mpezeni who spoke through chief Madzimawe commended Zain for the gesture.
"Consider the Ngoni Kingdom as your partner. As you would like to make the lives of our people better, we want to commit ourselves to partner with you to see to it that we achieve that goal.
We are looking forward to continue partnering with you in the many years to come as we embark on this journey where we would want the entire world to know who the Ngonis are," Mpezeni said.
And during the donation of education materials valued at over K10 million to Kamwankhuku Basic School in Katete, Ocitti said Zain was committed to supporting government efforts in uplifting education standards in the country.
He said one school in each of the nine provinces would be empowered under the Build Our Nation programme this year.
Ocitti said since its inception, Zain had spent over K6 billion on the initiative, benefiting 123 schools in all 72 districts in Zambia.
Labels: CEREMONIES, CHIEF MPEZENI, CORRUPTION, ZAIN ZAMBIA LIMITED PLC
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Taxes on telecommunications equipment worry Zain director
By Florence Bupe
Wed 24 Feb. 2010, 04:10 CAT
TAXES attracted by the telecommunications equipment and services have continued to be the main hindrance in infrastructure development, Zain Zambia managing director David Holliday has disclosed.
Appearing before the parliamentary committee on communications, transport, works and supply yesterday, Holliday said the high taxes on equipment had stagnated the telecommunications sector, particularly in rural areas.
“The taxes attracted by the telecommunications equipment and services remain a major hindrance in the deployment of costly infrastructure particularly for rural areas and certain economically depressed areas,” he said.
Holliday told the committee that the telecommunications sector has been negatively impacted through the absence of short and long term tax incentives.
“The telecoms sector is negatively impacted between 31 per cent and 35 per cent in total being taxes on revenue as contribution to the state treasury,” he said.
Holliday suggested that taxes charged on renewable energy tools such as solar equipment which is vital for sector development in rural areas should be removed for a considerable time.
He also noted that the lack of an integrated licensing regime had increased the cost of telecommunication service expansion.
Holliday said rural areas in the country had great potential which remained unexploited.
“The potential for rural connectivity which spurs infrastructure development is vast and remains unexploited in Zambia. Our shortcomings in fully meeting these targeted areas for telephony universality need a quick rethought beyond projects and programmes on rural connectivity,” said Holliday.
Labels: DAVID HOLLOWAY, IMPORT TAXES, ITC, ZAIN ZAMBIA LIMITED PLC
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Zain announces landmark record of 3m subscribers
By Joan Chirwa
Wed 02 Dec. 2009, 04:00 CAT
ZAIN Zambia Plc on Monday announced a landmark record of three million subscribers on its network. The announcement came only weeks after the giant mobile telecommunications company launched a countdown campaign to celebrate this development.
According to a statement released by Zain Zambia’s public relations and corporate affairs manager Kennedy Mambwe, the record-breaking achievement within the Zambian telecommunications industry was an endorsement that ‘Zain is truly the most preferred mobile phone service provider covering the nation’s 72 districts and beyond’.
And announcing the development in Lusaka, Zain managing director David Holliday thanked customers for their loyalty and choice of Zain as their preferred network.
“Our network covers all districts in Zambia with the lowest calling rates. More and more people are joining Zain each day; from customers who have a genuine communications need and who want an economical phone with our 1Kwache Che offer, all the way through to small and large business and corporate customers. Whatever the needs of our customers, we at Zain have the solution,” Holliday said.
On November 2 this year, Zain announced a count-down campaign to celebrate the three millionth customer by giving a number of prizes to selected customers on the network.
The three millionth customer this month is receiving a gift of K3 million in talk-time credit to their phone.
“The celebration continues until the end of the year. Every day thousands of our customers will be winners - already we have given away over 108,000 free credits and 27 I-Pods in celebrating this milestone, provided customers have their Zain phone switched on at some time over the seven days prior to our daily draw, they will be eligible for a prize,” said Holliday.
Labels: ICT, KENNEDY MAMBWE, ZAIN ZAMBIA LIMITED PLC
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Zain’s strong subscriber base pushes up profits
Written by Chiwoyu Sinyangwe
Monday, August 31, 2009 3:42:50 PM
ZAIN Zambia’s 20 per cent growth in revenueduring the first half of this year was driven by an increase in subscriber base which grew to 2.82 million, investment analysts Pangaea Renaissance have observed.
Commenting on the half-year results which indicated that the revenue earnings for the country’s biggest mobile phone company had grown to K653,199 million compared with K543, 611 million gained during the same period last year, Pangaea Renaissance stated that revenues on a gross basis were one per cent ahead the Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) margin of 44.3 per cent, which was in line with the 48 per cent targeted on the net basis.
Pangaea Renaissance Zambia was the sponsoring broker for Celtel (Zain)’s listing on the Lusaka Stock Exchange (LuSE).
According to the analysis made by Pangaea Capital’s head of Telecommunications, Transport and Infrastructure and Equity Research, Ivan Kim, Zain Zambia seemed to be holding up fairly well against the major competitors – MTN Zambia – despite losing four points on a year review.
Kim, however, stated that the increase in subscribers had slowed to six per cent in the first half of this year compared to 16 per cent growth recorded last year.
“The net income of K124 billion is 1.5 per cent ahead. Overall, the numbers are slightly better versus our forecasts which should be neutral given that the preliminary numbers were already out and do not differ materially from these,” Kim stated. “However, we think the market missed preliminary numbers issued by Zain Group and these numbers, issued by Zain Zambia, could be somewhat positive…the slower penetration growth for the first half of this year was due to economic contraction which impacted average revenue per unit (ARPU) as well. We understand the major impact on ARPU is from economic slowdown rather than pricing which remains quite stable.”
Kim also observed that the decrease in operating income before depreciation and amortisation (OIBDA) margin by 2.5 points on year-on-year basis was primarily due to increased administrative costs which increased by 28 per cent, the rise largely attributed to the transition to Zain brand from Celtel.
“However, we believe the economic position of Zambia is likely to improve in the second half of this year, reflecting the surge in copper prices in recent months as well as incremental International Monetary Fund [IMF] support and renewed foreign portfolio investment,” stated Kim. “Zain Zambia holds pretty well against competition… although the risk is the potential privatisation of Zamtel.”
Labels: ITC, PANGAEA RENAISSANCE SECURITIES, ZAIN ZAMBIA LIMITED PLC
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80,000 benefit from Zain’s empowerment programme
Written by Chiwoyu Sinyangwe
Thursday, June 18, 2009 11:02:25 PM
ZAIN Zambia Plc has announced that 80, 000 people with business tools
countrywide have been empowered through the company’s ongoing 1 Kwacha Che! campaign launched a month ago, according to a statement released yesterday.
Zain Zambia stated that through its 1 Kwacha che! campaign, it intended to bridge the communication gap experienced by the local population in the lower income brackets by ensuring that they had access to a mobile business tool.
It stated that through this ongoing campaign, the company remained optimistic about reaching those Zambians who might not afford the current high mobile phone prices in different parts of the country.
And commenting on the development, Zain Zambia Plc managing director David Holliday said the company had taken up part of the retail cost for the phones to ensure every Zambian was able to communicate and do business using the mobile tool.
“We are concerned about limitations posed by the digital divide that majority of the Zambian population is still experiencing. To address this, we introduced this project where millions of Zambians can acquire a mobile business tool at K1 only,” said Holliday.
According to the terms of the 1 Kwacha che! offer, any customer purchasing a brand new Nokia 1202 at K170, 000 or Motorola W160 at K85, 000, would get their money back through monthly air time top ups to their handset for 12 months until there is only K1.00 outstanding from the total purchase price of their phone.
Labels: DAVID HOLLOWAY, ITC, ZAIN ZAMBIA LIMITED PLC
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Zain-sponsored C/belt show arena shines
Written by Mutuna Chanda in Kitwe
Sunday, May 31, 2009 3:58:11 PM
THE Zain Zambia-sponsored arena at this year's Copperbelt Mining, Agriculture and Commercial Show is a hive of entertainment activity. What with the arena being host to top Zambian artistes such as Mozegater, Runell, Exile, Dandy Krazy, Shyman and John Chiti.
"Obviously the reason we are sponsoring (the arena) is that we are a wonderful world," remarks Zain Zambia marketing execution manager Mutinta Musokotwane-Chikopela. "We have always been associated with arts and culture because it brings people together; it gives people a sense of belonging."
Loyalists of Mozegater and his Mimbulu Boys' style of entertainment that mainly brings back to memory sports festivities to many a boarding school bunch back in the day will undoubtedly find the Zain arena difficult to leave while those who relish the Runell and Showdown Records touch may find it difficult to blink lest they miss the outfit's dancing antiques and energetic stage action.
Among the highlights at the arena are Dandy Krazy whose music seems to have come of age with his hit song Chintelelwe from his latest Not Guilty album; Shyman known for his highly requested Fendela Fenduze song. Exile and John Chiti are also at hand to entertain show-goers.
Musokotwane-Chikopela said Zain will also be selling the trendy Motorola with in-built FM radio and Nokia 1202 both for "K1".
"We'll be selling the Motorola at K85,000 and when you buy that phone, we'll be automatically giving you K6,000 in talk time every month for 11 months and in the 12th month, we'll give you K18,999 talk time," Musokotwane-Chikopela says. "When you buy the Nokia phone for K170,000, we'll be giving you K12,000 talk time for 11 months and in the 12th month we'll give you K37,999 and whichever phone you buy whether the Motorola or the Nokia, simple mathematics will tell you that you get your money back except K1. In addition, in the 13th month, we give you K12,000 talk time. It doesn't get better than that!"
She says ambassadors for the mobile telecommunications company adorned in Zain T-shirts are at hand to explain to customers about the mobile phones being sold in a campaign dubbed "1 Kwacha Che!".
She also says Zain Zambia has brought in a mobile base station for back up purposes in case the network stretches beyond its limit.
"We don't want our subscribers on the Copperbelt suffering," says Musokotwane-Chikopela.
Labels: ZAIN ZAMBIA LIMITED PLC
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Zain retrenches 96
Written by Chiwoyu Sinyangwe
Sunday, May 10, 2009 5:20:55 PM
ZAIN Zambia Plc has laid off 96 employees with immediate effect.
In a statement issued on Friday, Zain Zambia managing director David Holliday stated that 58 of the staff affected were permanent employees while 38 were casual workers. The 96 employees pruned by Zain Zambia are out of the company’s total workforce of 700.
“As part of these changes, Zain Zambia is shedding 96 jobs with immediate effect. Zain Zambia expects the reduction in the number of staff to be achieved through a combination of redeployment, non-renewal of contracts, and redundancies,” Holliday stated.
He added that the decision to lay off some of the workers was in line with similar changes being carried out at in all Zain operations in the Middle East and Africa.
He stated that the new method of operation would involve centralisation of capabilities across all of Zain's 23 operations in order to maximise economies of scale and realise significant efficiencies and cost savings. “Zain has undertaken a review of its operations to ensure it is best able to deliver improved services and quality to its customers, and to make sure we can do this as efficiently and as cost-effectively as possible,” Holliday stated. “The goal of the revisions was to make sure Zain had the right structure in place across all its operational areas to address market challenges in Zambia going forwards, and to align itself with the recently announced ‘Drive 2011’ group-wide plans for greater efficiency.”
Holliday also stated that Zain Zambia Plc would be working closely with employees to assist with the transition and also ensure that any impacted employees were treated with respect and dignity consistent with the company’s values.
According to the statement, since 2005, Zain has invested more than US $12 billion in Africa, and in excess of US $500 million in Zambia. And for this year alone, Zain will pump in more than US $1 billion of investments in its networks in Africa as part of the Company's drive to bring the latest world class technology to its customers.
Last week, Zain Group announced that it would align its head office and operations structures in accordance with the new operating model and that the move would result in Zain reducing its current 15,500 global workforce by 2,000, a reduction equivalent to a 13 per cent across the board.
Labels: JOBLOSSES, ZAIN ZAMBIA LIMITED PLC
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Mopani retrenches 978 workers
Written by Mutuna Chanda in Kitwe and Chiwoyu Sinyangwe in Lusaka
Tuesday, May 05, 2009 11:00:45 PM
MOPANI Copper Mines (MCM) has retrenched 978 workers. And Zain Zambia Plc is expected to discharge some workers as the country's leading mobile phone company restructures operations in line with its parent company, Zain Group which is streamlining global operations to reach growth targets by 2011.
Sources told The Post that MCM on Monday laid off over 500 workers in Kitwe and over 400 in Mufulira. The sources indicated that the mining firm had also closed some of its departments that included industrial engineering and In Situ at Nkana in Kitwe.
And one of the retrenched Mopani workers, Haggai Chishimba, who spoke in disbelief, said he did not know what to do.
"Why should the government contradict itself?" asked Chishimba. "Today it says it's going to stop pruning and the next day the investor does something else."
Chishimba, who was in the company of fellow MCM retrenchees, said the government knew beforehand that workers would be retrenched going by mines minister Maxwell Mwale's silence.
"I don't know what to do next because the Copperbelt depends on the mines. We've got loans with Barclays and Barclays is getting everything," Chishimba said.
Another retrenched miner O'Brien Musenge, who was retrenched while he was on shift, said the workers should have been given time to prepare their exit other than an immediate-effect-pruning.
Lawrence Banda, complained that the retrenchment package was too little as it was K7 million less than those of his peers who were retrenched in February.
And according to letters handed to some of the miners signed by Mopani chief processing officer T. Gonzales and dated April 30, 2009, the mining company pruned workers it considered excess labour.
"Following reorganisation and labour rationalisation at Mopani Copper Mines Plc, you have been identified as excess to the labour requirement in your department," stated Gonzales. "Therefore, we wish to advise that your employment with this company has been terminated. Accordingly, your last shift will be 4th May, 2009, on which date all employment obligations shall cease. You will be paid terminal benefits for your service as follows: i) two months' pay for each completed year of service pro rata. ii) repatriation allowance in accordance with conditions of employment and service. iii) one month's pay in lieu of notice. iv) your accrued MCM (Mopani Copper Mines) pension in accordance with pension rules. v) long service award if you have completed nine or 19 or 29 years of continuous service. We would like to take this opportunity to thank you for the service you have rendered and wish you success in your future endeavours."
Efforts to reach Mopani officials failed as mobile phones for both chief executive officer Emmanuel Mutati and chief services officer Passmore Hamukoma went unanswered.
And Patriotic Front (PF) Mufulira district vice-chairperson Francis Mumba expressed particular concern at the retrenchment of medical personnel at the Mopani-run Malcom Watson Hospital.
"Why retrench medical personnel when we have a big shortage of medical personnel in the country?" he wondered.
Mumba said people on the Copperbelt were tired of retrenchments.
"These investors are running this country and not the government. Today the investors say they have rescinded the decision and will not fire workers and then they turn around and say they will fire workers," Mumba said. "Government should put its foot down and say enough is enough."
Last week, MCM rescinded its decision to close its Mufulira operation and place its shafts in Kitwe under care and maintenance.
The company was considering closing some operations and place some under care and maintenance owing to the fall in world copper prices from highs of close to US $9,000 per tonne early to mid last year to around US $3,000 per tonne later in the same year.
Following the Mopani announcement last week, labour deputy minister Simon Kachimba indicated that there would be some "minor injuries" to the Mopani workforce.
Kachimba after meeting management at Mopani, said that the workforce, which stood at 7,264 would remain in the regions of 7,000.
However, the 978 laid off on Monday bring the labour force at Mopani to 6,286.
And Zain Group will reduce its current 15,500 global workforce by 2,000 across the board.
"The Zain Group will align its head office and operations structures in accordance with the new operating model. This will result in Zain reducing its current 15,500 global workforce by 2,000 [equivalent to a 13 per cent reduction] across the board," disclosed the Group through a statement made available by Zain Zambia Plc public relations officer Kennedy Mambwe in response to a press query from The Post.
The confirmation from the Kuwait headquartered company followed growing anxiety among most Zain Zambia Plc employees who recently feared for their jobs after management recently sent them a memo informing them about the impending job losses which was likely to be implemented by August this year.
It was not immediately clear how many workers would be fired from the Zambian branch and when the restructuring would be implemented.
The statement also disclosed that Zain operations in Iraq, Jordan, Kenya, Kuwait, Malawi and Sierra Leone had already begun the process of reducing employment levels.
The pending countries were Bahrain, Burkina Faso, Chad, Republic of the Congo, the Democratic Republic of the Congo, Gabon, Ghana, Kenya, Madagascar, Niger, Nigeria, Saudi Arabia, Sudan, Tanzania, Uganda and Zambia.
However, there was little indication that the ongoing reforms were triggered by the current global economic crisis.
The statement announced that Zain Group chief executive officer Dr Saad Al Barrak announced a new programme to propel the company towards its 2011 target of being a top ten global mobile telecommunications operator following a strategic meeting with senior Zain executives from all 22 African and Middle East operations.
According to the statement, "Drive2011" would focus on customer facing services and commercial activities while centralising or outsourcing some back office/non-core functions to strategic partners.
"Drive2011 is a natural consequence of Zain's evolutionary journey. It was planned soon after the launch of our ACE strategy in 2007 and is a structured and timetabled approach to maximising efficiency," Dr Al Barrak commented. "We will create genuine market differentiation through our services and deliver on our Zain brand promise of 'a wonderful world'. This will be achieved through a combination of managed outsourcing, centralisation and leveraging capabilities, as well as training and development for our personnel, all of which will improve our operating efficiencies."
The statement further noted that the new strategy, which comes at a vital stage of the company's "3x3x3" vision that commenced in 2003, would maximise economies of scale and realise significant efficiencies, allowing Zain to provide communication services such as voice, SMS [Short Message Service] and data at an optimum cost structure.
"Drive2011 is expected to improve Zain's operating margin by five per cent within 12 months and provide the company the necessary thrust to capture the future growth potential of the markets in which it operates," the statement read in part.
Additionally, the statement also announced during the same meeting, Dr Al Barrak also made several senior management changes both at Group and country operation level, a move aimed at tackling the challenges ahead and attaining other 2011 targets of 150 million customers and a US $6 billion EBITDA.
Most Zain Zambia Plc workers had in recent times been gripped by fear following the recent intimation of the impending retrenchments by management at the company which controls about 78 per cent of the mobile phone sector in the country.
"You can't have a peace of mind when you know that each time you go for work in the morning, you might be given a letter of terminating your contract," said one employee who declined to be named.
Labels: JOBLOSSES, MCM, MOPANI, ZAIN ZAMBIA LIMITED PLC
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Mopani Copper Mines retrenches 978 workers
Written by Mutuna Chanda in Kitwe and Chiwoyu Sinyangwe in Lusaka
Tuesday, May 05, 2009 4:57:25 PM
MOPANI Copper Mines (MCM) has retrenched 978 workers. And Zain Zambia Plc is expected to discharge some workers as the country's leading mobile phone company restructures operations in line with its parent company, Zain Group which is streamlining global operations to reach growth targets by 2011.
Sources told The Post that MCM on Monday laid off over 500 workers in Kitwe and over 400 in Mufulira. The sources indicated that the mining firm had also closed some of its departments that included industrial engineering and In Situ at Nkana in Kitwe.
And one of the retrenched Mopani workers, Haggai Chishimba, who spoke in disbelief, said he did not know what to do.
"Why should the government contradict itself?" asked Chishimba. "Today it says it's going to stop pruning and the next day the investor does something else."
Chishimba, who was in the company of fellow MCM retrenchees, said the government knew beforehand that workers would be retrenched going by mines minister Maxwell Mwale's silence.
"I don't know what to do next because the Copperbelt depends on the mines. We've got loans with Barclays and Barclays is getting everything," Chishimba said.
Another retrenched miner O'Brien Musenge, who was retrenched while he was on shift, said the workers should have been given time to prepare their exit other than an immediate-effect-pruning.
Lawrence Banda, complained that the retrenchment package was too little as it was K7 million less than those of his peers who were retrenched in February.
And according to letters handed to some of the miners signed by Mopani chief processing officer T. Gonzales and dated April 30, 2009, the mining company pruned workers it considered excess labour.
"Following reorganisation and labour rationalisation at Mopani Copper Mines Plc, you have been identified as excess to the labour requirement in your department," stated Gonzales. "Therefore, we wish to advise that your employment with this company has been terminated. Accordingly, your last shift will be 4th May 2009, on which date all employment obligations shall cease. You will be paid terminal benefits for your service as follows: i) two months' pay for each completed year of service pro rata. ii) repatriation allowance in accordance with conditions of employment and service. iii) one month's pay in lieu of notice. iv) your accrued MCM (Mopani Copper Mines) pension in accordance with pension rules. v) long service award if you have completed nine or 19 or 29 years of continuous service. We would like to take this opportunity to thank you for the service you have rendered and wish you success in your future endeavours."
Efforts to reach Mopani officials failed as mobile phones for both chief executive officer Emmanuel Mutati and chief services officer Passmore Hamukoma went unanswered.
And Patriotic Front (PF) Mufulira district vice chairperson Francis Mumba expressed particular concern at the retrenchment of medical personnel at the Mopani-run Malcom Watson Hospital.
"Why retrench medical personnel when we have a big shortage of medical personnel in the country?" he wondered.
Mumba said people on the Copperbelt were tired of retrenchments.
"These investors are running this country and not the government. Today the investors say they have rescinded the decision and will not fire workers and then they turn around and say they will fire workers," Mumba said. "Government should put its foot down and say enough is enough."
Last week, MCM rescinded its decision to close its Mufulira operation and place its shafts in Kitwe under care and maintenance.
The company was considering closing some operations and place some under care and maintenance owing to the fall in world copper prices from highs of close to US $9,000 per tonne early to mid last year to around US $3,000 per tonne later in the same year.
Following the Mopani announcement last week, labour deputy minister Simon Kachimba indicated that there would be some "minor injuries" to the Mopani workforce.
Kachimba said after meeting management at Mopani that the workforce, which stood at 7,264 would remain in the regions of 7,000.
However, the 978 laid off on Monday bring the labour force at Mopani to 6,286.
And Zain Group will reduce its current 15,500 global workforce by 2,000 across the board.
"The Zain Group will align its head office and operations structures in accordance with the new operating model. This will result in Zain reducing its current 15,500 global workforce by 2,000 [equivalent to a 13 per cent reduction] across the board," disclosed the Group through a statement made available by Zain Zambia Plc public relations officer Kennedy Mambwe in response to a press query from The Post.
The confirmation from the Kuwait headquartered company followed growing anxiety among most Zain Zambia Plc employees who recently feared for their jobs after management recently sent them a memo informing them about the impending job losses which was likely to be implemented by August this year.
It was not immediately clear how many workers would be fired from the Zambian branch and when the restructuring would be implemented.
The statement also disclosed that Zain operations in Iraq, Jordan, Kenya, Kuwait, Malawi and Sierra Leone had already begun the process of reducing employment levels.
The pending countries were Bahrain, Burkina Faso, Chad, Republic of the Congo, the Democratic Republic of the Congo, Gabon, Ghana, Kenya, Madagascar, Niger, Nigeria, Saudi Arabia, Sudan, Tanzania, Uganda and Zambia.
However, there was little indication that the ongoing reforms were triggered by the current global economic crisis.
The statement announced that Zain Group chief executive officer Dr Saad Al Barrak announced a new program to propel the company towards its 2011 target of being a top ten global mobile telecommunications operator following a strategic meeting with senior Zain executives from all 22 African and Middle East operations.
According to the statement, "Drive2011" would focus on customer facing services and commercial activities while centralizing or outsourcing some back office/non-core functions to strategic partners.
"Drive2011 is a natural consequence of Zain's evolutionary journey. It was planned soon after the launch of our ACE strategy in 2007 and is a structured and timetabled approach to maximizing efficiency," Dr Al Barrak commented. "We will create genuine market differentiation through our services and deliver on our Zain brand promise of 'a wonderful world'. This will be achieved through a combination of managed outsourcing, centralization and leveraging capabilities, as well as training and development for our personnel, all of which will improve our operating efficiencies."
The statement further noted that the new strategy, which comes at a vital stage of the company's "3x3x3" vision that commenced in 2003, would maximize economies of scale and realize significant efficiencies, allowing Zain to provide communication services such as voice, SMS [Short Message Service] and data at an optimum cost structure.
"Drive2011 is expected to improve Zain's operating margin by five per cent within 12 months and provide the company the necessary thrust to capture the future growth potential of the markets in which it operates," the statement read in part.
Additionally, the statement also announced during the same meeting, Dr Al Barrak also made several senior management changes both at Group and country operation level, a move aimed at tackling the challenges ahead and attaining other 2011 targets of 150 million customers and a US $6 billion EBITDA.
Most Zain Zambia Plc workers had in recent times been gripped by fear following the recent intimation of the impending retrenchments by management at the company which controls about 78 per cent of the mobile phone sector in the country.
"You can't have a peace of mind when you know that each time you go for work in the morning, you might be given a letter of terminating your contract," said one employee who declined to be named.
Labels: JOBLOSSES, MCM, MOPANI, ZAIN ZAMBIA LIMITED PLC
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Zain to lay off 141 workers in Kenya
Written by Chibaula Silwamba
Thursday, April 02, 2009 3:29:51 PM
ZAIN will lay off 141 employees in Kenya while studying its operations in other countries to determine whether to cut more jobs or not, in a bid to withstand the global economic crisis. According to Kenya's Daily Nation newspaper, Zain Africa chief executive officer Chris Gabriel announced on Monday that the mobile phone company would reduce its workforce by 20 per cent in Kenya in its efforts to cut costs.
Gabriel disclosed that the pending job cuts were part of the firm's pre-planned restructuring aimed at withstanding the global economic crisis.
"Kenya is the first and we are looking at all the operations progressively," said Gabriel in Kenya's capital city, Nairobi.
Gabriel said studies would be carried out in other countries where Zain operates to evaluate whether it should cut more jobs or not.
However, Zain's decision to lay off workers has angered some Kenyans.
One of the on-line readers of the Daily Nation demanded that the Kenyan government stands up against Zain and protect jobs of its citizens.
"Where is the Kenya government and the Ministry of Labour? What is their main purpose if not to protect the interest of Kenyans?" the reader asked. "The government of Kenya is ignorant and that is why Zain says it is starting with Kenyans first, why not in other countries first? Some countries have warned these foreign companies from sacking its local citizen even in this economic crisis. They must maintain the current staff."
In February, Zain Zambia managing director David Holliday said there was no guarantee of jobs for employees of the country's largest mobile phone service provider in the wake of the global economic crisis.
"I am not looking at many redundancies but again we have to be as efficient as possible. So, we are evaluating all the time how we can be as efficient as possible," said Holliday.
Labels: JOBLOSSES, KENYA, ZAIN ZAMBIA LIMITED PLC
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ZAIN raises US$ 4.49bn for more acquisitions
By Chiwoyu Sinyangwe
Thursday October 02, 2008 [04:00]
ZAIN has announced that it has raised about US$ 4.49 billion to fund further acquisitions by the Group. According to the statement, the funds raised by Zain Group which operates in the country as Zain Zambia Limited Plc, was the largest ever capital raising in Kuwait's history and saw 99 per cent of shareholders subscribe.
The statement also announced that the amount raised was unprecedented in Kuwait's history exceeding all expectations, given the gloomy trends that have recently dominated local and international markets and resulted in sharp declines in the prices of oil as well as significant collapses in the financial markets worldwide.
Commenting on the transaction, Zain's chief executive officer Dr Saad Al Barrak said: "The successful completion of the largest capital increase in the history of Kuwait is a unanimous vote of confidence by our shareholders in Zain's management team, the performance to date and in our profitable expansion strategy aiming to be a top-ten global mobile operator by 2011. The proceeds of this capital increase will be used to finance future strategic expansion plans and meet financial commitments."
The statement further added that Zain had managed to achieve unprecedented leaps in the global mobile telecommunications sector over the past five years to be now present in 22 countries on two continents serving over 50 million active customers.
Every Zain shareholder of record on March 10, 2008, the date the company held its ordinary and extraordinary General Assembly Meeting, was eligible to subscribe to a number of capital increase shares equal to 75 per cent of the total number of shares they held on this date.
"The capital increase subscription price was 850 fils (approximately US$3.20) per share i.e. a par value of 100 fils per share plus a premium of 750 fils. The subscription period commenced August 17 and closed on September 18, 2008," read the statement in part
Labels: CEMENT, ZAIN ZAMBIA LIMITED PLC
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