2nd December 2020

Zamtel embarks on reorganisation, targets efficiency and cost reduction

Zamtel has announced that it has made a lot of progress in implementing the reorganisation exercise aimed at improving organizational efficiency.

The exercise which started in the year 2019, with the approval of the Shareholder, the Industrial Development Corporation (IDC), includes transformation of the business model to focus on provision of mobile and fixed line services, optimisation of resources and reduction of operational costs.

In transforming the business model, a new enterprise Infratel Corporation Limited has been established within the IDC Group to optimize Zamtel’s infrastructure and implement Government’s open access agenda. This process will ensure that Zamtel focuses on competing with other mobile network operators and will have more resources to utilize in ensuring a high-quality service to its customers.

Board Chairperson Mr. Danny Luswili said the process is key to achieving the goal of transforming Zamtel into a leading digital service provider and also improve its ability to create value for customers and remain competitive.

Mr. Luswili, said, progress has already been made with the merging of some departments and the outsourcing of some functions. “In transforming the company, Zamtel is ensuring that workers affected by the transformation are empowered. For instance, the company is working out modalities for the Call Centre to be outsourced to the Zamtel workers impacted by the restructuring. In areas such as market development and network maintenance, new opportunities are being created for those affected by the reorganisation.”

The company has also ensured that all staff affected by reorganisation are paid their full packages, and further facilitated training in entrepreneurship and post work training.

Meanwhile, IDC Group CEO Mr. Mateyo Kaluba has expressed confidence in the handling of the reorganization by the Board and Management of Zamtel.

Mr. Kaluba said ZAMTEL has finally turned a new page which allows it to focus on becoming the leading network provider in the country.

“Zamtel faced challenges in providing a high-quality service, meeting its obligations as they fall due and securing the financing for its growth due to a cost-heavy structure and business model. We are confident that the reorganization that had been undertaken with the support of the Ministry of Finance and the Ministry of Transport and Communication will result in a strong company that will deliver the quality of service that its customers deserve”, he said.

Mr. Kaluba added, through the reforms implemented, over $390m has been cleared from the Zamtel balance sheet, thereby opening a new page for the company.

He said the creation of Infratel Corporation Limited from the rationalization of sharable telecommunication and ICT infrastructure will maximize the value of the infrastructure, cut down on duplication of investments in shareable infrastructure across state owned enterprises, while allowing enterprises to focus on their core businesses.

Mr. Kaluba said Infratel Corporation Limited will offer its services to both private and public enterprises thereby providing a world of opportunities in the digital world to small and medium Zambian enterprises.

He commended the Board of Directors and Management of Zamtel for their resolve and hard work in driving the reorganization agenda and expressed confidence that Zamtel was well on its way to becoming a profitable business. He also dismissed reports that the IDC had sold Zamtel urging members of the public to disregard such reports with contempt.

Source: Reuben Kamanga – Head of Corporate Affairs and Government Relations Department at Zamtel

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