Zamtel Reclamation In Line With Expectations

BMI View: The decision by the government of Zambia to repossess Zamtel from Libya's LAP Green Network demonstrates newly-installed President Michael Sata's determination to fundamentally change the way the public sector does business. Although operational risk has increased under his presidency, we stress that the original transaction was decried by Sata (and others) in 2010, the question of reversing the sale has been in the works for many months, and most importantly, we do not believe that there is a significant risk of nationalisation for other firms (such as copper miners) operating in Zambia.

To read the full article, please choose one of the following options: