From Sami Redwan.
Any opinions expressed are those of the author, and do not necessarily reflect the views of Libya Business News.
The telecoms provider LAP GreenN’s fall from grace has been nothing short of spectacular.
Established in 2007 with a total investment capital of over US$1 billion, LAP GreenN is wholly owned by the Libya Africa Investment Portfolio (LAIP), the African investment arm of the Libyan Investment Authority (LIA).
With coverage spanning from Sierra Leone to South Sudan, its expansion across the continent seemed inevitable, and the company was set to become the darling of the African telecoms industry.
But by the end of 2014, LAP GreenN only had a few million dollars left to its name. A year later, its debts had spiralled to US$425 million.
What are the reasons behind this sharp reversal in fortunes? A recent piece in Libya Al Mostakbal offered some timely insights into the company’s collapse, and our report below has been compiled with information from several sources within both the LIA and LAP GreenN.
In short, LAP GreenN was the engineer of its own downfall. Key factors contributing to its demise included a poor hiring strategy, incompetent internal management and high-profile disputes with partners, the most notable of which was the nationalisation of Zamtel (75% owned by LAP GreenN) by the Zambian government in 2012.