eBusiness Weekly
HARARE – The bid by the Zimbabwe government to become the sole shareholder of Telecel Zimbabwe has hit another hurdle as shareholders within the Empowerment Corporation (EC), which owns 40 percent of the company, who had expressed interest to sell have decided to hold on to their shares.
In 2016, the government bought 60 percent shareholding in Telecel International, which controls Telecel Zimbabwe, from Dutch company Vimpelcom for $40 million.
From the onset, government expressed its desire to fully control the country’s third largest mobile phone company, by subscription, but has experienced a number of setbacks along the way.
In August last year, the government’s move hit a brick wall owing to an opaque shareholding structure within the EC.
A forensic audit was then instituted by the Ministry of Information, Communication Technology (ICT) to ascertain the shareholding structure, as well as to verify how much was paid during the acquisition of shares by EC members.
ICT Minister Supa Mandiwanzira said negotiations with EC shareholders had reached an advanced stage, but bogged down after some shareholders made a u-turn.
“We were at an advanced stage of concluding the purchase of the 40 percent but when the new dispensation came some of those who wanted to sell then suddenly made a U-turn and said we are coming back to run the business,” he said.
The new government has, since assuming power in November last year, given renewed hope to investors both local and foreign of an economic boom.
“We cannot force anyone to sell their shares and we have no intention to force anyone to sell their shares. What we believe in is that any current investor if they can bring their money on the table, first to pay off the licence, second to invest in the growth of the business then fine.”
The government also owns Zimbabwe’s second largest mobile phone company, NetOne. – New Ziana
