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Struggling Telecel Seeks Investor to Avoid Collapse

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Struggling Telecel Seeks Investor to Avoid Collapse

Telecel Zimbabwe has been placed on the market as the embattled mobile operator struggles under a debt load exceeding US$240 million, raising the risk of liquidation if no investor is secured.

Business rescue specialists from Grant Thornton have called on interested parties to submit bids for a stake in the company. The move forms part of efforts to help Telecel exit a court-managed rehabilitation process that began in October 2025.

Prospective investors were required to lodge their offers by April 28, 2026. However, full financial details are only accessible to those who sign confidentiality agreements, highlighting the sensitivity of the transaction.

Once a notable competitor in the sector, Telecel Zimbabwe is now facing mounting financial strain. Its subscriber numbers fell sharply to just over 319,000 by mid-2025, reflecting a steady erosion of its customer base.

Its market share has also dwindled to under 2%, leaving it far behind dominant players such as Econet Wireless Zimbabwe and NetOne, which continue to control most of the market.

Network limitations have further weakened Telecel’s competitiveness. The operator has a relatively small number of LTE base stations and has yet to roll out 5G services, putting it at a disadvantage in a market where coverage and speed are key.

Experts say any potential investor would need to inject substantial capital—not only to stabilise the business but also to upgrade and expand its infrastructure.

One asset that still holds some promise is Telecel’s mobile money service, Telecash. However, it faces stiff competition from EcoCash, which dominates the digital payments space.

The company’s situation has also sparked concerns about the broader telecoms landscape in Zimbabwe. Failure to find a buyer could effectively leave the market with only two major operators, reducing competition.

Analysts warn that less competition could impact pricing, service standards and innovation, as rivalry is a key driver of progress in the industry.

Telecel’s difficulties stem from long-standing structural and ownership challenges. Founded in 1998 as a joint venture, the company later became embroiled in disputes linked to Zimbabwe’s indigenisation policies.

In 2015, the government moved to acquire a 60% stake from VimpelCom for US$40 million, though financial constraints delayed completion. The deal was finalised in April 2016 but remained contested by Empowerment Corporation, which held a 40% stake and challenged the transaction.

Following the takeover, the absence of strong foreign investment and technical backing contributed to a gradual decline in service quality and subscriber numbers.

Now, six months into corporate rescue proceedings, the proposed sale represents a last effort to keep the operator afloat. Its future will depend on whether investors see an opportunity for recovery or judge the risks too significant.

The outcome will not only determine the fate of Telecel Zimbabwe but could also reshape competition within the country’s telecommunications sector.

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Current Affairs

EU and Zimbabwe Strengthen Environmental Cooperation

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By Everisto Zhuwao

The Minister of Environment, Climate and Wildlife, Honourable Evelyn Ndlovu, met with the European Union Ambassador, Katrin Hagemann, in Harare on Monday to strengthen strategic cooperation on environmental protection and climate change.

The meeting, which included Permanent Secretary Mr Simon Masanga, focused on scaling up existing projects to benefit local communities and the economy.

“This partnership reflects a shared vision for a resilient Zimbabwe. The European Union currently supports several major initiatives in Zimbabwe through its Global Gateway Strategy and the NaturAfrica Programme,” Minister Ndlovu said.

A key component of this partnership is a €26 million investment aimed at protecting biodiversity and building resilience through the Zimbabwe Resilience Building Fund. The funding helps rural communities adapt to changing weather patterns while preserving the country’s natural resources.

Regional conservation also remains a priority. The delegation highlighted a €2.8 million project dedicated to the Chimanimani Transfrontier Conservation Area, which Zimbabwe shares with Mozambique. The initiative seeks to protect wildlife and forests across borders while creating opportunities for sustainable tourism and research.

Beyond conservation, the dialogue also focused on the transition to clean energy and modern farming methods. The EU is supporting climate-smart agriculture to improve food security, while also expanding renewable energy projects in remote communities.

“Modernising energy and farming is a matter of national security,” Ndlovu explained.

Minister Ndlovu and Ambassador Hagemann emphasised that these programmes follow a community-centred approach. By involving local people in the stewardship of their land, the cooperation ensures that Zimbabweans directly manage and benefit from their environment.

“Nature is best protected by the people who live alongside it,” the Minister concluded.

The ongoing partnership aims to create a balance in which both nature and communities thrive through green governance and sustainable development.

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Three Health Workers Quarantined Over Suspected Hantavirus Contact

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The Government has confirmed that Zimbabwe has not detected any cases of Hantavirus, while assuring citizens that health authorities are closely monitoring the situation and urging the public not to panic.

Addressing journalists in Harare on Monday, Health and Child Care Minister Douglas Mombeshora revealed that three healthcare workers who had interacted with suspected Hantavirus patients arrived in the country earlier in the day.

Mombeshora said the trio had immediately been placed under quarantine as a precautionary step in accordance with established public health procedures.

“Three health workers who had been in contact with suspected hantavirus cases arrived in the country this evening,” said Mombeshora.

He added that the quarantine measure was meant to safeguard public health while authorities continue carrying out assessments and monitoring.

“Disease surveillance systems across the country remain on high alert despite the fact that Zimbabwe has not recorded any confirmed Hantavirus infections,” he added.

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Government Targets Traffic Relief As New Harare Interchange Nears Completion

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Minister of Transport and Infrastructural Development Hon  Felix Mhona today toured the ongoing construction works of the new Cloverleaf Interchange at the intersection of Harare Drive and Joshua Mqabuko Nkomo Road, formerly Airport Road, as Government continues implementing major infrastructure projects aimed at modernising the country’s road network.

The transformative project forms part of Government’s ongoing efforts “to decongest one of Harare’s busiest transport corridors, improve travel times to R.G. Mugabe International Airport, and enhance road safety for all road users.”

Addressing journalists during the tour, Hon. Adv. Mhona described the project as “a long-awaited development milestone,” while applauding Emmerson Mnangagwa for championing infrastructure modernisation and development across the country.

The Minister also reaffirmed the Ministry’s commitment to “accountability and delivering quality infrastructure that directly benefits citizens.”

Upon completion, the interchange project is expected to pave the way for the development of “10 additional interchanges from Glenara and associated routes,” a move expected to significantly improve traffic flow within Harare.

The tour was attended by Permanent Secretary Engineer Joy Pedzisai Makumbe, heads of parastatals and other senior Government officials.

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