ZAMTEL needs US$300m for capitalization

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State owned Telecommunications Company, Zamtel needs a capitalization of US$300 million for it to become more viable.

Transport, Works, Supply and Communication Minister Yamfwa Mukanga says government may not however provide the whole US$300 million to capitalize Zamtel.

 

Mr. Mukanga says government wants to establish how best it can improve operations of Zamtel through capital refinancing.

He says government is also considering bringing an investor on board to assist improving the telecommunications company’s operations.

 

And Mr. Mukanga has disputed assertions that government interference in the operation of parastatal companies like Zamtel is what has led to their underperformance.

He says as Minister under whose ministry Zamtel falls, he has left decision making to its board.

 

Mr. Mukanga states that red tape of government operation is what makes parastatals like Zamtel not to perform as other private companies like Airtel and MTN having been performing.

He says unlike the quick decision making and funding in these private entities, decisions in state owned companies take long because of the bureaucratic stages.

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