Zambia Development Agency

Formed in 1994 as a result of the division of the Post and Telecommunications Corporation, Zambia Telecommunications Company Limited (“Zamtel”) is Zambia’s exclusive fixed (PSTN) network operator, and has operations spanning the entire ICT sector, including fixed-wireless (wireless local loop), mobile, fibre, VSAT (very small aperture terminal) and internet service provision. By virtue of its licences, spectrum assignments and network assets, Zamtel has established itself as a key supplier to the consumer, enterprise and wholesale telecoms markets in Zambia.

Headquartered in Ndola, and with its main network control and switching facilities in the capital Lusaka, Zamtel’s fixed network connects all major population centres through 94 regional exchanges. The fixed network is undergoing a substantial upgrade: over 80% of switching infrastructure is now digital, and DSL capacity is being rolled out across the network. Zamtel’s primary fixed-wireless network is also being upgraded and expanded, with coverage and capacity expected to more than double within the next 12 months. Zamtel’s secondary fixed-wireless network, based on WIMAX technology, is designed to cover the whole of metropolitan Lusaka, and is scheduled to go live during 2010.

Zamtel’s mobile network is currently being expanded by over 60%, with 83 cell sites being deployed over the forthcoming 12 months. These new cell sites will all be EDGE-enabled, allowing the company to begin offering mobile internet access and other value-added services.

Zamtel is also in the process of completing a national fibre backbone network, which is designed connect all of its regional exchange infrastructure, as well as facilitating a direct fibre connection to a subsea optical fibre network. Zamtel is a shareholder in the East African Submarine Cable System (EASSy), a 10,000km long subsea fibre network with 1.4TBit/s capacity, which is expected to become operational during the first half of 2010.

The completion of Zamtel’s national fibre backbone and its connection to subsea fibre are expected to have a considerable impact on the Zambian telecommunications market. Zambia has struggled for many years under a profound lack of bandwidth and international voice capacity. During 2010, fibre connectivity should allow for a substantial increase in capacity and a marked reduction in price. Zamtel, and the Zambian telecommunications market as a whole, are expected to benefit.

Zamtel Privatisation

In July 2009, the government of the Republic of Zambia announced its intention to privatise Zamtel through the sale of up to 75% in the Company’s equity. The government also announced its intention to retain a minimum of 25% of Zamtel’s equity, and its intention to reserve the right to list some or all of that stake on the Lusaka stock exchange. Per the Zambia Development Agency Act of 2006, the government tasked the Zambia Development Agency (ZDA) with the implementation of the privatisation of Zamtel. The ZDA has appointed legal, financial and other advisors to assist it in successfully implementing the transaction.

The privatisation process formally began on the 15th September 2009, with the issuance of an announcement in the national, regional and international media on the following link: http://www.businessesforsale.com/ft2/The-Government-Of-The-Republic-Of-Zambia.aspx. The first phase of the process – prequalification – will last until Friday 16th October 2009, which is the closing date for the submission of prequalification applications. The prequalification criteria have been set in order to ensure that participants in the process – either individual corporations or consortia – have adequate experience of the telecommunications industry and have the skills necessary to fully utilise all of Zamtel’s licence and network assets.

On or around the 21st October 2009, the list of successful candidates will be announced, and the next phase of the process, bidding, will begin. To view the announcement made on the 15th September, which includes details of the prequalification criteria and process, please download the PDF Document attached below.

Contact
For further information, or to obtain an NDA, please email: zamtel@zda.org.zm and copy zamtel@rpcapitaladvisors.com.