Zambia’s telecommunications industry has a rich history spanning 112 years, dating back to the installation of the nation’s first analogue telephone exchange in 1913. Over the decades, the industry has undergone significant transformations driven by technological advances and regulatory reforms. A pivotal moment came in July 1994 when the government of Zambia enacted the Telecommunications Act. This act separated the Post and Telecommunications Corporation into two distinct entities: the Zambia Postal Services Corporation (Zampost) and the Zambia Telecommunications Company (Zamtel). As a result, Zamtel focused exclusively on telecommunications.
Since its inception in 1994, Zamtel has played a vital role in shaping the country’s communication landscape. From landlines to mobile phones, internet connectivity, and broadband (3G, 4G, and 5G), Zamtel has consistently supported the evolution of telecommunications in Zambia, driving growth, innovation, and connectivity across the nation.
When we last spoke to Zamtel in the aftermath of the COVID lockdown, the company had strategically moved away from its traditional operations to develop a more focused position in the telecommunications industry. Throughout its lifetime, Zamtel has remained a Zambian company with a vision “To be the dominant digital service provider that enhances the quality of life for all,” and that remains true today.
“We pride ourselves on being a local brand that belongs to the people of Zambia,” says Jason Mwanza, who assumed the position of Zamtel’s CEO since our last feature on the company. “We want to make the Zambian people feel connected to the brand. We want the people to realise that whatever money they put into Zamtel goes on to be invested back into the nation’s telecommunications system. The money goes back to the people themselves and helps drive investments in social sectors such as education and health. This is what informs our tagline ‘Come home’.”
Zamtel’s strategy aligns with the national development strategy, and its commercial goals are entwined with a social mandate. By focusing on business profitability and social impact, Zamtel fosters sustainable development, bridges the digital divide, and supports the nation’s economic agenda. As the firm generates profits, it channels that money into expanding Zambia’s telecommunications network. That expansion has made Zamtel the widest network in the country and given it an offering that is different from any other network.
“We have the biggest network coverage in the country, serving underserved areas and helping to deliver the government’s mandate to serve all citizens,” says Jason. “Our presence in unchartered territories sets us apart and gives us an advantage over the competition. We package this unique position and take it to market while guaranteeing high-quality service to our customers. We are driven by the challenge that our mandate goes beyond providing telecommunication services.”
A New Structure
Since becoming CEO, Jason has launched an ambitious strategy to secure Zamtel’s future. This was necessary as the company was in a fragile position.
“The Business was recording poor revenues, had legacy debt, and too many assets that we were not getting the right value out of,” Jason says. “So we looked at the people, their energy and productivity.”
Zamtel introduced a turnaround plan that has completely restructured its debt. The company has transformed from being technically insolvent to recording positive equity, which is remarkable. This underscores the strong leadership in restoring stability and driving revenue growth.
“Our strategy is built on four pillars. When we looked at poor revenues, we decided the solution was to expand the market and find our space to address the untapped segments. Further, we undertook debt restructuring and management as well as asset rationalisation and transformation as our second and third pillars,” Jason tells us. “Finally, our fourth pillar focuses on the people and the need to bring in a cultural transformation.”
In looking to reduce the company’s debt, Jason was clear that he would not ask the government to simply foot the bill. However, by looking at Zamtel’s assets, Jason found opportunities to leverage its existing resources. Among Zamtel’s assets are 444 sites in rural areas that the company manages purely on behalf of the government. Given the importance of these sites, Zamtel approached the government to reimburse the cost of maintaining the GRZ Social sites, and the funds received were used to liquidate its Tax liability with the Zambia Revenue Authority.
“We calculated how much we spent managing these sites and passed on that cost to the government because we still needed to service those people in the rural areas,” Jason explains. “The money that was realised through this transaction was used to pay off some of our statutory obligations. We did not want to cause a strain on the government, so we created value from the assets we had.”
The strategy already yielded results for Zamtel, which closed 2024 with financial figures that showed positive equity and a strong bottom line. At the same time, Zamtel has grown its market share from 18% to 20.5% by the close of 2024. According to Jason, the company has grown to 4.3 million subscribers with revenues recording a 30% growth from the time he stepped into office as CEO.
A New Home
Alongside this positive change and growth, Zamtel has moved into a new head office following a seven-year refurbishment program. Its new headquarters is a three-storey building with facilities to house all of its employees. While offices would typically be a big capital expense for a company, Zamtel through its asset rationalization program, sold its old Head Office to enable it to raise money for the refurbishment of the new offices.
“It has been so good moving everyone into one place so we can easily communicate our vision, further enhance our team spirit and build stronger cohesion among our team,” Jason tells us. “It enables us to have a tight-knit community, hosting town halls every quarter to continuously ensure everyone is aligned to our vision.”
This approach is accompanied by management-level committees to assess the company’s goals month-by-month.
Looking forward, that vision is heavily orientated towards creating a more sustainable future for Zamtel and Zambia as a whole.
As part of its Corporate Social Responsibility, Zamtel has partnered with the Zambia Forestry and Forest Industries Corporation (ZAFFICO) and CARE International to plant trees and foster environmental sustainability in response to the damaging effects of climate change. Together, the three organizations planted 3,000 trees in 2024.
“Our intention is to continue planting trees, between ourselves and other partners who will come on Board,” Jason says.
In addition to planting trees, Zamtel is engaged in other initiatives focused on green solutions. For example, Zamtel is eliminating fossil fuels by utilising solar and lithium-ion batteries, thereby reducing its carbon emissions. As the firm makes progress here, Jason is optimistic that the company will monetise its achievement by finding partners with whom it can trade carbon credits.
Alongside Zamtel’s sustainability priorities is the need for widespread network upgrades, which require a substantial injection of capital. But Jason is determined to make a success of the resources Zamtel already has at its disposal.
“We will not go beyond where we are now if we don’t build the necessary network to meet customer demand,” he says. “We currently have data coverage for 46% of the population. We need to take that to 90%. That is our target for 2025. We need to upgrade our network from 2G and 4G to 5G. We need to raise our own resources, so we are going into revenue-sharing contracts with vendors.”
These contracts, which Zamtel has established with several providers, will continue for the next five years. They will allow the company to build the network and expand its market while keeping 85% of the revenue generated from that work.
In addition to upgrading the network, Jason wants to refresh the company’s brand as it refines its offering to place digital financial services at the centre.
“We are repositioning the Zamtel brand with our youthful Zamtel campaign,” Jason tells us. “We are increasing the number of customer touchpoints and sales outlets as well as introducing a shop-in-shop concept in order to bring our products and services closer to our people.
As Zamtel moves into 2025, Jason is excited to build on the strides already made thus far, to reposition Zamtel as the telecommunications provider of choice in the country.
