Egypt’s Orascom Telecom is in discussions with the Zimbabwean government for the renewal of Telecel’s licence, an Orascom spokesperson has confirmed.
A team from the Egyptian company is reportedly expected to travel to Zimbabwe this week to meet…
Egypt’s Orascom Telecom is in discussions with the Zimbabwean government for the renewal of Telecel’s licence, an Orascom spokesperson has confirmed.
A team from the Egyptian company is reportedly expected to travel to Zimbabwe this week to meet representatives from the Ministry of Communications after the operator’s licence expired last month.
Orascom Telecom owns 60% of Telecel, Zimbabwe’s second-largest mobile operator, via its subsidiary Telecel Globe. The Empowerment Corporation, a local group, owns the remaining 40%.
Under local foreign ownership regulation, Orascom was required to sell 20% of the shares back to local shareholders within five years of receiving a licence back in 1998, according to reports.
In late May, the Zimbabwean government warned Orascom that it would not renew Telecel’s 15-year licence – due to expire in June – unless local shareholders re-acquire a majority stake.
Local reports also suggested that Telecel was in breach of the controversial Indigenisation and Economic Empowerment Act, which requires previously marginalised black Zimbabweans to hold at least 51% in any locally registered firm.
A spokesman for Telecel told NewsDay that efforts are currently underway to comply with the regulations.
Telecel was not immediately available for comment.
