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Privatization in Zambia shot ahead last year. More than 100 units were sold, leaving 200 still in government hands.
During the next few months, attention will focus on the sale of the Zambian Consolidated Copper Mines (ZCCM), an industry that generates 90% of Zambian exports. The government has put off the sale for several years but is now determined to finalize a deal as production levels are falling and the mines require investment for modernization.
"Given the situation ZCCM finds itself in at the moment," says Jordan Soko, head of merchant banking at Stanbic in Lusaka, "investments will have to be made in 1996."
Rothschild's study of the mines -- to be published this March -- is looking at the two privatization options available: splitting ZCCM into separate units for sale independently or selling it as one unit.
At the moment, it appears that ZCCM will be split up, partly because of the proposed investment of Anglo American Corporation. Anglo American holds a minority stake in the mining group as well as pre-emptive rights and proposes to...