Government's plans to completely take over Telecel hit a snag

Government efforts to completely take over Telecel Zimbabwe through Zarnet have hit a snag after it emerged that the Empowerment Corporation has signed an agreement to sell 15 percent of its 40 percent stake to Brainworks Capital Management.

According to information gathered by The Herald, Empowerment Corporation intended to sell its shares in Telecel Zimbabwe to settle its debt with ABSA Bank Limited of South Africa. Documents in The Herald’s possession show that a Memorandum of Agreement in this regard was signed on October 13, 2016.

This comes at a time when Government is close to completing the Telecel takeover transaction that has been pending for a while due to a shortage of foreign currency to pay the total price of US$40 million agreed for Vimpelcom’s 60 percent stake in Telecel Zimbabwe. However, ICT Minister Supa Mandiwanzira insists that Government is going to own 100% of Telecel despite Empowerment Corporation’s transaction.