08 November 2019

Mobile Broadband Limited, trading as Vodafone Zambia, has been put up for sale after shareholders failed to keep the firm above water amid stiff competition in the southern African nation’s data market. 

The country currently has 16 ISPs all fighting for share, according to the latest report from the Zambia Information and Communications Technology Authority (ZICTA).

They include Liquid Telecom Zambia, Hai, Zamtel and Paratus Telecommunications, a subsidiary of the Namibia headquartered Paratus Group Holdings.

However, cash-strapped Vodafone Zambia has struggled to maintain operations a year after it entered the local market in 2016 – citing “financial distress”. 

In July this year, the company issued a statement announcing that the delay in recapitalising itself by the shareholders resulted in network outages in the capital Lusaka and the Copperbelt region. 

Vodafone Zambia said the so-called “financial distress” triggered a petition by employees to the High Court in Lusaka for business rescue.

It led to the appointment of the business rescue administrator Luwita Sayila as the firm looked to attract new shareholders to the fold. 

A business rescue plan was then introduced, which covered the comprehensive restructuring of the company’s affairs including business, property, debt and other liabilities and equity.

However, Sayila has since issued a notice inviting bids to secure new ownership and said interested bidders may acquire a complete set of bidding documents as of September 12th 2019 upon payment of a non-refundable fee of US$760.

“Mobile Broadband Limited hereby invites interested parties to participate in the open bidding tender for the sale of the company. Mobile Broadband Limited reserves the right to reject any and all bids, declare a failure of bidding or not award the contract at any time prior to contract award,” read an excerpt from the notice. It is unclear at this stage how many bids have been submitted.