admininquiries by potential investors.
Media reports have since speculated on a number of foreign telecommunications conglomerates that have expressed interest in acquiring equity in the local company.
NetOne managing director Mr Reward Kangai last week confirmed that at least six foreign investors had indicated interest to buy a stake in the company.
“In the last two weeks alone, we have received four inquiries from foreign companies wishing to acquire a stake.
He also added that Bharti Airtel Ltd of India and the MTN Group Ltd had also been “in contact” with the company.
“At the moment we cannot announce anything as a result of the non-disclosure agreements we have signed,” he reportedly said. The NetOne boss has since indicated that the company is in need of around US$100 million on an annual basis to grow its subscriber base and for the rollout of a 3G network and data services system.
According to a report submitted to the Parliamentary Portfolio Committee on State Enterprises and Parastatals by Minister of State Enterprises and Parastatals Gorden Moyo last month, NetOne is among four SEPs whose restructuring proposals have not yet been considered by the Ministry of Transport, Communications and Infrastructure Development.
The other State enterprises include TelOne, Air Zimbabwe and the National Railways of Zimbabwe.
The minister said the Transport, Communications and Infrastructure Development Ministry is still considering what should be recommended in respect of their restructuring.
NetOne and TelOne are Zimbabwe’s State-owned mobile and fixed telecommunications providers, and both are included among the list of 10 parastatals that have been targeted under phase one of the SEPs restructuring programme.
Indications are also that another Indian telecommunications operator, MTNL is reportedly eyeing a 51 percent stake in Zimbabwe’s State-owned landline operator, TelOne, for a yet undisclosed sum.
“The Government is keen to offload a 51 percent stake in TelOne, which is the country’s sole State-owned landline operator. Since TelOne also has a GSM mobile permit, it fits well with our plans to enter the African cellular turf in the near future,” a senior MTNL executive privy to the talks reportedly said.
MTNL’s interest in acquiring a majority stake in TelOne could mean the State-owned landline operator could follow the route which saw another Indian firm Essar Holdings purchase a 53 percent stake in the Zimbabwe Iron and Steel Company (Zisco), which, however, falls short of indigenisation requirements.
TelOne was recently granted a Global System for Mobile communications (GSM) mobile permit and will be the fourth mobile operator in a market of some four million subscribers.
TelOne has historical financial challenges that have hindered the expansion of its network, as its landline network connects around 300 000 customers out of a population in excess of 12 million people.
Online Reporter