MTN vows to grab the Zambian market

By Sylvester Mbewe

THE MTN Group, which is to take over the running of Telecel Zambia, has vowed to use its financial muscle and experience in the mobile service industry to attract customers throughout the country to its network.

Telecel Board Chairman, Bwalya Chiti said according to the agreement the two have entered into, MTN have assured that: “We expect to become the number one operator in Zambia in the next 18 months.”

Chiti, who refused to disclose the amount of money that the Telecel shareholders are selling for simply said: “Covering the whole country in 18 months certainly requires a lot of money, what I can assure you is that the money involved is colossal and that the money they are going to use to invest is heavy. It also means that there will be stiffer competition in the mobile service industry.”

This is certainly a wake up call for the likes of Celtel Zambia and the State-owned Cell Z that have enjoyed a large share of the market in recent times.

Though the Communications Authority is yet to approve the purchasing and sale agreement between Telecel Zambia and MTN, it is evident that the authority has now been open to the idea of having a powerful mobile service provider to enter the Zambian market so as to provide checks and balances to the existing service providers.

“The people of Zambia have not received the full benefits from the mobile service providers we have. Their charges are too high while their service delivery is poor. After the refusal of Vodacom to invest on the Zambian market, there is need for a fourth provider to come on the market,” an official from the communications authority said in confidence.

Therefore, the coming of MTN, though not necessarily as a fourth mobile operators as it is simply taking over the operations of Telecel is a blessing to the Zambian market that has been suppressed too much by the existing operators who are charging highly all in the name of ploughing back their investment.

MTN Group CEO Phuthuma Nhleko said: “We are very pleased with this transaction, which is in line with MTN’s expansion strategy of consolidating our position on the continent. We are confident that the company holds very positive growth prospect for the Group. Telecel Zambia meets all the conditions of our investment criteria and as established operators, we are confident that it will achieve growth and maintain market share, benefiting significantly from MTN’s strong brand and innovative product and service offerings.

And MTN Group executive for corporate affairs Yvonne Muthien said: “The mobile sector has experienced strong growth in Zambia and the prospects for the group are positive in the market as well.”

MTN was established in 1994 and to date, the Group has invested R23.4 billion in infrastructure across its GSM networks in South Africa, Swaziland, Rwanda, Uganda, Cameroon and Nigeria.

The Group recently announced its annual results, showing continued strong growth during the 2005 financial year. And scores of Lusaka residents talked to about the coming of MTN said this was a relief that they had been waiting for over a long period of time.

Samson Phiri, an employee with Standard Chartered Bank said: “I am definitely going to move to MTN, I believe their service will be second to none and very affordable.” Another resident who preferred not to be mentioned said: “At last the die has been cast, thank God that MTN is coming to our rescue.”

Mpulungu businessman embarks on K250m guest house project

By Francis Lungu in Mpulungu

A LOCAL businessman in Mpulungu district in Northern Province has embarked on an ambitious programme to construct an ultra modern eight chalet guest house at an estimated cost of K250 million.

In an interview in Mpulungu recently, Stanley Simfukwe, who owns a number of businesses in Mpulungu district said the guest house would also have a modern entertainment hall, cocktail bar and an insaka among other facilities.

Simfukwe, whose investments are under a corporate name of Matete General Dealers, also diversified in real estate in the district which has Mpulungu Harbour as the main source of economic activity.

Simfukwe’s dream is despite the nose-diving of economic activities in Mpulungu district due to lack of competition in trading through usage of the harbour after government concessioned the port in 2000 to a private company, Mpulungu Harbour Management Limited which locals have accused of being monopolistic in the usage of the country’s only port.

“Though there is no business at the moment, I hope in the future things can improve that the district can have more traders coming as was the case in the past before the concessioning of the harbour. Building of a guest house is a long term vision,” said Simfukwe, popularly known as Matete.

Zambians are sitting on a gold mine – Chibesakunda

By Sylvester Mbewe

AGRICULTURE and Commercial Society of Zambia (ACSZ) president Kenneth Chibesakunda has said that Zambians were sitting on a gold mine that if utilized, would result into economic prosperity thereby making foreign handouts a thing of the past.

Chibesakunda also said in an interview that foreign companies that were saying that they could not come and participate at the Agricultural and Commercial Show in Lusaka in late July because the Zambian economy is small should remember that the country is strategically located as it is surrounded by many neighbouring countries.

“We are sitting on a gold mine. Zambia is endowed with a lot of resources, we have good weather, abundant land and water and above all, we have a dedicated human resource.

“So, for us to continue being poor does not make sense to me. The government has put in place good policies, but it is up to us Zambians to rise to the occasion and build our country,” Chibesakunda said.

Lashing out at foreign companies that say the Zambian economy is too small for them to come and participate at the show, Chibesakunda said the fact that the country was centrally located makes it strategic enough to play a critical role in the economic manoeuvres of the Southern African region.

“We have got all that it takes to accommodate serious investors.

Those that are saying our economy is too small are probably briefcase investors that have no capacity to trade anywhere,” he said.

He stressed that the fact that companies from as far as Japan, France and Egypt were coming to exhibit at the show was evidence enough that such rumours have got no basis to back them.

And thanks to President Mwanawasa’s recent visit to China, Chibesakunda said that country is sending over 20 companies and a number of private officials to come and take part at this year’s 79th show whose theme is “Rebuild Our Economy”.