From Zambia, the government has transferred the management and operation of Zamtel (Zambia Telecommunications Company) to its development silo, the Industrial Development Corporation of Zambia.
Minister of Transport and Communications Kapembwa Simbao confirmed that the Industrial Development Corporation of Zambia will also be tasked with sourcing the required US$300-million to recapitalise the company.
"We have handed over the running of Zamtel to the Industrial Development Corporation because we want this company to be run independently so that it becomes viable and be able to compete with other operators favourably," Simbao said.
The minister acknowledged the government had struggled to run Zamtel effectively and said that officials now want to shift their focus away from investment and to policy-making in order to develop the broader ICT sector.
Last week, lawmakers warned the government that Zamtel faces increasing competition from private operators and could face closure if urgent intervention is not forthcoming. They advocated a partnership to help steady the ailing operator, which has fewer than 2 million subscribers.
According to an Auditor General report the company has failed to make a profit since being taken over by Libya's LapGreen Networks in 2012.
It was privatised in 2010 by the previous administration because it was on the verge of collapse and the then government had not moved to recapitalise it.
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