Government of Zambia assumes responsibility for a $103 million outstanding debt obligation of LAP Green Networks to ZTE

In 2010, the Government of Zambia sold Zambia Telecommunications Company Limited (ZAMTEL) — the country’s stated-owned telecommunication service provider — to Libya’s LAP Green Networks (LAP GreenN) for $394 million. LAP GreenN is an investment company owned by the Government of Libya. Then, in 2011, LAP GreenN obtained a loan from ZTE Corporation — a Chinese state-owned enterprise — to support the expansion of ZAMTEL network through a Global System for Mobile Communication [GSM] Phase IV Project and a Universal Mobile Telecommunication System [UMTS] Project. In 2012, a new administration came to power in Zambia and it reversed the sale of ZAMTEL to Libya’s LAP Green Networks (LAP GreenN), alleging that it significantly undervalued ZAMTEL and that it was illegal. LAP GreenN denied any wrongdoing in the manner it acquired the company and said it would challenge the Zambian authorities in court. Then, in 2014, the Government of Zambia agreed to repay the $103 million loan that LAP GreenN had obtained from ZTE Corporation in 2011 for the expansion of ZAMTEL network. The repayment of the $103 million loan was considered to be the first step in compensating LAP GreenN over its investment in ZAMTEL. In November 2017, the Government of Zambia confirmed its intention to pay LAP GreenN $382 million as compensation for the nationalization of ZAMTEL. ZAMTEL reported an outstanding debt to ZTE Corporation and Huawei worth $22,200,276 as of June 30, 2021 and $22,200,330 as of December 31, 2022.

Additional details

1. Some sources reported that the Government of Zambia sought a loan from China Eximbank to repay the debt owed to ZTE. However, AidData has not independently corroborated this claim with any official sources.

Number of official sources

7

Number of total sources

12