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Government to buy Telecel through NSSA?

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Telecel Zimbabwe

We have received reliable information that points to Government’s continued pursuit of Telecel Zimbabwe, this time with the local social security body, National Social Security Authority (NSSA) being thrown into the fray.

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Previously, the Ministry of ICT had placed ZARNET, government’s Internet Service Provider as the arm through which the takeover of Telecel would take place, a development which stakeholders hoped would bring a long-running issue to rest over the shareholding of Telecel Zimbabwe.

According to sources, NSSA will either front the funds on behalf of ZARNET or be a guarantor for the ISP. Should ZARNET fail to reimburse the pension fund then NSSA will take over the 60% shareholding in the entity. Little has been said of the involvement the Empowerment Corporation (EC), Telecel’s minority shareholder, will have.

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Comment was sought from EC through Jane Mutasa, who exercised her right not to comment and referred us to Telecel Zimbabwe. We reached out to them and are awaiting an official response.

The Minister of ICT, Supa Mandiwanzira, professed ignorance to the goings on at NSSA stating that the pension fund was not under his ministry, and he was not privy to any information. He however added that NSSA, as an investment body, owns a lot of shares in various listed companies and in the interests of their sharesholders may or may not look at buying a stake into Telecel.

The chairman of NSSA, Robin Vela, stated that they had a “flirting interest”, and NSSA is always looking out for good investment opportunities, and if they were to get into such a deal they would have to end up with equity in their hands and not be a mere ‘funder’.

From the looks of things, the wheels are still turning, pushing for a take over of now the third largest telecoms companies in Zimbabwe.


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14 thoughts on “Government to buy Telecel through NSSA?

  1. To what end?

    The only thing they can do very well with Telecel is to run it down like they do NetOne.

    60% of Zarnet cannot be considered collateral for Zarnet’s reimbursement.

    Zarnet is of no significant market value with no commercially viable or attractive service or product. It just happens to be an exclusive provider of certain government services. A very poor and bad provider of those services.

    NSSA is playing around with Social Security funds as usual,and remains lacking in accountability even in the face of many exposures on mismanagement of funds and bad governance

  2. I have to question reliability of your information because you did cover the basics. How is your information different from what was becoming our daily meal from Mandiwanzira?

    You didnot cover what have changed now since Telecel major share holder came out and clearly said they are not selling.
    This was followed by the EC claiming they are not selling.

    If those two are not selling, which party of Telecel then are our gvt going to buy?

    This becomes nothing more than pub gossip!!

  3. And NSSA recently fired top management alleging that they have been reckless with in the manner they have been investing social security funds? We don’t want GVT in business, they should focus on social services delivery and leave this to the private sector. Again Telecel will join the bandwagon of parastatals that are perennial loss makers..my foot!

    1. Gvt must be creating a secure working environment in with companies start, grow and prosper, not competiting and killing the same business they are suppose to be protecting.

    2. this is a leveraged buyout so zarnet if implemented properly will have to make sure that they pay off the money otherwise the owner of the leverage nssa will gain all telecel stake and end up selling it to whatever bid they feel like. So Zarnet will be forced to make sure that the telecel investment pays off

  4. If your reporting has facts like the one done by The Independent, responses would have been different.

    Makes me wonder if you scooped from them.

  5. not a problem that how companies are bought in the west through a leveraged buyout. it will now be the job of ZARnet to ensure that telecel delivers the money needed to payoff the leverage otherwise nssa will control and take the telcel stake and leave zarnet with nothing.
    good business no the part we lack in zim implementation shuld be worked on.

  6. Sad that we continue to read and hear gossip! If there is a deal, come to the open, listen to the voices of wisdom and make decisions. why another operator when we got one ailing?

  7. one wonders wat government is trying to do. They have Netone, Telone and Powertel all of whom are competing in being the best loss making entity in telecoms.
    Where is Supa, what is his comment on this. Where are Vimpelcom representatives. What have they said on their official pages? This is now a wait and see game. If this is true the next thing we will hear will be Government takes back its 40% stake in telecel that was offered to indigenous people. Good bye Jane, Good bye James

  8. well, its all fair in love and war. Who is approving this deal and does the EC not have right of first refusal as the next largest shareholder unless this is a hostile takeover assuming the story is authentic, why would the EC remain if they are under siege?

    And why own another telecoms asset when Government has more trouble with what they got on their plate, with the quadruplets of Netone, Telone, Powertel, Transmedia and probably a barrage of toxic assets which its been argued as to why they have not consolidated them to create a converged and viable competitor to the private players and why are we doing the thinking for Government anyway.

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