Zambia goes for privatisation

ZAMBIA is reported to be trying to sell one of its biggest parastatals, the Zambia Consolidated Copper Mines (ZCCM), in which it has a 60.3 percent shareholding. This will be one of the biggest sell-offs if it gets off the ground.

Anglo-American Corporation is said to be the main contender and unions, to which President Frederick Chiluba belonged before taking over from Kenneth Kaunda, together with the United National Independence Party now claim that this was one of the secret deals made by the western nations to help Chiluba win power.

Anglo and other companies whose businesses were nationalised by the previous government are reportedly trying to get back their control.

Anglo is reported to be seeking a minimum of 23 percent of the stake in ZCCM. It already owns 27.7 percent. Andrew Sardanis, a former close friend of Kaunda and head of the Meridien Bank, is also reportedly seeking high stakes. He already controls 7 percent.

Another South African mining giant, Gencor is also interested in the deal. Reports now say rival groups in Chiluba’s cabinet have now begun to lobby for the two South African companies.

There is, however a third force which wants to see workers take over a large stake in the mines. They claim the workers can buy sharedsthrough funds raised in Europe.

Zambia seems to be going for a major privatization programme following the passing of the Privatisation Act. This is likely to lead to massive retrenchments and reports say more than half of the country’s 145 000 parastatal workers could lose their jobs.