Commentary 23rd - 30th October, 09

The Zambia Development Agency should be commended for making a strong assurance that the sale of Zamtel will be done transparently. What is also clear is that the shortlisted eight bidders have a solid international profile that will make it very hard for ZDA to shortcut the selection process.

The fact that 30 companies applied means that the whole world will follow and scrutinize the process.

The same companies have the potential to dent the country's investment profile if ZDA does not professionally select the winner according to acceptable best practices. Though the country has not fully accepted the mode and motivation for the sale of this beleaguered company, it is only fair that we now look forward to the sale. The first expectation of Zambian citizens is that Zamtel should attract the best price. We should avoid a situation such as the one recently experienced in Ghana where the government owned telecoms company was taken back to parliament after stakeholders noticed it had been sold for a song. This erodes confidence in the entire privatization process and proves costly.

Second, Zambians expect that the new owners of Zamtel will not delay to list the company on the stock market; at best within three years of purchase. Alternatively, the remaining government shares should be offered to the public under a frozen price as determined by the pre-privatization valuer. This will enable Zambians gain the full value of stock appreciation as we expect the new owners to inject huge capital.

Third, citizens expect the ZDA Board to declare individual interest so that no single individual benefits directly or indirectly from the sale. It is not enough to assure the nation the ZDA Act will be applied to the letter when it still remains possible individuals can influence the sale for personal benefit.

By and large, ZDA is on the right path and we hope that it will continue to exercise due diligence throughout the process of selection.