Air Zimbabwe

Foreign telecoms firms eye Zim mobile operator

News by Air Zimbabwe Aero

Update 10 Jan, 2010

A state-owned mobile phone company in Zimbabwe said Tu esday it was in talks with three foreign telecommunications firms who want to buy as much as 49 percent sha reholding to kickstart a series of privatisations planned by the government to raise revenue.

Net One managing director Reward Kangai said the negotiations with the suitors, believed to include South African MTN, were nearing conclusion. “We are looking at the offers, and we will be advising our shareholder appropria tely soon,” he said.

The cash-strapped Zimbabwe government has announced plans to sell off some state -owned companies to raise revenue to bridge a US$800 million budget deficit. Earlier hopes by the country’s new coalition government to raise financial suppo rt from Western donors have been dashed by the refusal by major powers to give Zimbabwe assistance until it carried out pol itical and economic reforms. This has prompted the authorities to line up a number of state-owned companies f or sale to raise funds to bridge the budget deficit, and finance other government operations. In the telecommunications sector, Net One and its fixed line rival, Tel One, hav e been put up for sale by the authorities.

 The latter is reportedly being courted by South Africa’s Telkom, among other international inv estors. “We hope the matter is going to be concluded soon,” Kangai said. The authorities have also put up the national carrier, Air Zimbabwe, up for sale , and are debating whether or not to sell-off the country’s power utility as well.

 In addition to raising revenue, the government also wants to stem heavy losses w hich most state-owned companies were making.

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