Zim cancels Telecel licence over shareholding

HARARE – Zimbabwe’s telecommunications regulatory authority has revoked a licence for private mobile phone operator Telecel Zimbabwe in a dispute over its shareholding structure.

In a statement, the Postal and Telecommunications Regulatory Authority of Zimbabwe (Potraz) said Telecel Zimbabwe – the third and smallest mobile phone operator in the country – had failed to meet an extended June 30 deadline to transfer majority shareholding to local investors. Telecel Zimbabwe has around 150 00 subscribers.According to Potraz, Telecel International holds 60 per cent of the shares in Telecel Zimbabwe while 40 per cent is in the hands of a Zimbabwean investment group, Empowerment Corporation, which includes President Robert Mugabe’s nephew Leo Mugabe.”Telecel Zimbabwe (Pvt) Ltd has now been operating for more than eight years with a foreign majority shareholding and has failed to regularise its shareholding structure within the period allowed,” Potraz said.”In terms of the conditions of this (15-year) licence, the foreign ownership of the company should be limited to no more than 49 per cent as required by the (telecommunications) act,” it added.There was no immediate comment from both Telecel Zimbabwe and Potraz on Friday.But the official Herald newspaper said that Potraz’s move against the company had come amid reports that two Zimbabwean investors in Telecel Zimbabwe, Jane Mutasa and James Makamba, had bought 11 per cent of the company’s shares from Telecel International for US$3,5 million to bring the total local shareholding to 51 per cent.Mutasa and Makamba – who lives in London – were also unavailable for comment.Nampa-ReutersTelecel Zimbabwe has around 150 00 subscribers.According to Potraz, Telecel International holds 60 per cent of the shares in Telecel Zimbabwe while 40 per cent is in the hands of a Zimbabwean investment group, Empowerment Corporation, which includes President Robert Mugabe’s nephew Leo Mugabe.”Telecel Zimbabwe (Pvt) Ltd has now been operating for more than eight years with a foreign majority shareholding and has failed to regularise its shareholding structure within the period allowed,” Potraz said.”In terms of the conditions of this (15-year) licence, the foreign ownership of the company should be limited to no more than 49 per cent as required by the (telecommunications) act,” it added.There was no immediate comment from both Telecel Zimbabwe and Potraz on Friday.But the official Herald newspaper said that Potraz’s move against the company had come amid reports that two Zimbabwean investors in Telecel Zimbabwe, Jane Mutasa and James Makamba, had bought 11 per cent of the company’s shares from Telecel International for US$3,5 million to bring the total local shareholding to 51 per cent.Mutasa and Makamba – who lives in London – were also unavailable for comment.Nampa-Reuters