News
Government pays US$40 million for 60% stake in mobile operator.
The government of Zimbabwe has closed the US$40 million acquisition of Vimpelcom’s 60% stake in mobile operator Telecel, according to local press reports.
The state has acquired the shares via the Zimbabwe Academic and Research Network (ZARNet) and has paid for the stake in full, The Herald reported on Tuesday, quoting ICT minister Supa Mandiwanzira.
"Telecel is now going to be a Zimbabwean entity," the paper quoted Mandiwanzira as saying. Previously, the firm was paying management fees to Vimpelcom, but now those funds will remain in Zimbabwe, he explained. In addition, the state will be able to generate tax revenue from the operator, he said.
Amsterdam-headquartered Vimpelcom agreed to sell its stake in Telecel in November. The Zimbabwean government became involved in the process having blocked the sale of the business to foreign buyers.
Telecel is the smallest of Zimbabwe’s three main mobile network operators.
The country was home to 12.76 million active mobile subscriptions at the end of 2015, according to data from the Postal and Telecommunications Regulatory Authority of Zimbabwe (POTRAZ).
Econet Wireless leads the market with a 52.5% share, followed by NetOne with 32.4%. Telecel brings up the rear with 1.92 million active customers and a 15.1% market share.
