Government to privatize TelOne and NetOne in the next six months in Zimbabwe

Zimbabwe’s finance minister, Mthuli Mcube, announced on October 5, 2018 that the government will privatize TelOne and NetOne, within the next six months. During a press conference, the government representative explained that this operation is part of the Transitional Stabilization Program (TSP). The finance minister said it is a set of institutional reforms taken by the state to boost growth and development.

According to Minister Mthuli Mcube, when the time comes, “The information on the offer will be published locally and globally to attract the best investors who bring the right technology and to ensure that foreign direct investment flows into the country.” The money raised by this operation, will contribute to strengthen the finances of the State.

In 2017, TelOne recorded an increase in its total turnover of 3%. It went from 114 million in 2016 to 117 million US dollars. A dynamic driven by broadband. Its mobile branch continues to suffer from debts inherited from the past, most of which is due to public bodies. In 2016, the telecom company reported a loss of 2.7 million for a turnover of 115 million US dollars.

In April this year, TelOne, NetOne were categorized under government companies that are designated for ‘partial privatisation’. Telecel Zimbabwe, in which the government has a majority stake after buying out VimpelCom, was also provisioned for partial privatisation. Other Zimbabwean state-owned telecom firms including ISPsZarnet, Powertel and Africom are to be merged.