Government Privatisation Probe Poses Downside Risk To Zamtel's Growth Outlook, CFW Cautions

Zambia's new president, Michael Sata, who took office in late September 2011, has started implementing some pre-election campaign promises, including investigating the sale of government assets under the previous administration. In October 2011, President Sata formed a committee to investigate the sale of a majority stake in incumbent operator Zamtel to Libya's LAP Green Networks. Local media reports suggest there is considerable interest in the probe from some stakeholders. However, BMI cautions drastic changes to the original deal pose downside risks to Zamtel's medium-term outlook.

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