Why has the government chosen to privatise Zamtel?
The government decided to privatise Zamtel because it was clear that partial privatisation of the company was the best way to ensure that its full potential is realised.

How much of Zamtel’s equity is available to investors?
The government intends to sell up to 75% of the equity in Zamtel. Participants in the sale process can therefore bid for any stake up to a maximum of 75%.

Who can participate in the sale process?
The sale process is open to companies and consortia that meet the prequalification criteria. Those criteria are that potential participants should have:
• at least 5 years experience of owning and operating licensed telecommunications businesses as their primary activity; 
• at least 3 million active, attributable subscribers; and 
• either a minimum of US$250 million shareholders’ equity (for privately held corporations) or a minimum market capitalisation of US$500 million (for publicly listed companies).
For consortia, the first two criteria must be met by the lead consortium member alone, and the lead member should hold at least a 50% interest in the consortium as a whole. The final criterion can be met by the consortium as a whole.

Can Zambian companies participate in the sale process?
Any company can participate in the sale process as long as it meets the prequalification criteria on its own, or is part of a consortium that meets the criteria as set out above. Prequalification applications by consortia that include Zambian citizens or Zambian entities are encouraged. Zambian companies are completely free to participate in the process.

How long will the privatisation process last?
The duration of the sale process depends on the number of participants involved and the dynamics of bidding. The process is designed to be flexible, and accommodate these factors. Clearly, the ZDA would like the process to proceed as quickly as possible, but speed will be subordinate to transparency and professionalism.

Why can’t existing Zambian mobile operators participate?
Existing mobile operators in Zambia cannot participate because they already own and operate mobile networks in Zambia, and one of our objectives in privatising Zamtel is to increase the amount of competition in the market, not deliver consolidation – which would reduce the number of competitors. It has therefore been decided that existing mobile operators, and their parent companies and other affiliates, should be excluded from the process.

Would it be possible to bid for part of Zamtel – it’s mobile operation for example?
No. Zamtel has a broad portfolio of licence and network assets that are likely to deliver greatest value to the Zambian people if they remain part of an integrated whole.

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