NetOne To Enter Joint Venture With South Africa’s Telkom?


Finance Minister Mthuli Ncube is the man of the moment and when he speaks Zimbos listen. Last week Mthuli spoke about the privatisation of state-owned parastatals and it seems like there is a 6-9 month timeline for that to happen. In line with this privatisation, South African Telecommunications company Telkom is said to be in talks with NetOne and Mthuli Ncube said as much:

Cabinet approval has been granted for NetOne to start negotiations on a joint venture agreement with Telkom of South Africa

Telkom offers both mobile and fixed network services and it will be interesting to see if they can reach an agreement of any sort with NetOne as we’ve heard of these interests multiple times before. This year alone there have been multiple reports if interested parties eyeing NetOne; with the DIDG and other parties said to be looking to strike deals earlier on.


Déjà vu?

Back in 2010, MTN was also said to be interested in acquiring NetOne. Nothing came about and there have also been a number of reports of acquisitions for TelOne, and Telecel as well on multiple occasions. At this point, one has to wonder whether or not these acquisitions and talks are all just part of a narrative that can paint the government as being more active than it actually is.

Reason for optimism

Granted from 2008 to 2018 there was the dreaded  Indigenisation and Economic Empowerment Act which was a policy that went over and above when it came to chasing away private investment. The law would give the government the rights to take over private companies as 51% of all the businesses in the country would be transferred into local African hands.If the activity that the government claimed to be there at the time was real then obviously this ridiculous law would ensure that investors would have to turn their backs on any potential deal as the hammer could fall on them at any moment.

Now that the law has been removed it will be interesting to see if these deals actually materialise and whether or not the 38 parastatals that the governments want to privatise will actually end up getting privatised.

Also read, Partial privatisation of state-owned firms might not be a bad thing after all

Quick NetOne, Telecel, Africom, And Econet Airtime Recharge

If anything goes wrong, chat with us using the chat feature at the bottom right of this screen

View Comments

  • MTN deal would have been a big competition to Econet.Telkom is failing to match Vodacom,Cellc ,Virgin mobile and MTN in South Africa

    Cancel reply
    • Telkom has one of the cheapest fixed lte rates in SA. Their main problem is network coverage

      Cancel reply
  • In South Africa white people prefer VODACOM , blacks prefer MTN , Indian community CELLC, ECONET CALL HOME for foreigners.Telkom is for other but it cannot be able to change Netone. Personally i would favour MTN or Vodacom.

    Cancel reply
Published by
Farai Mudzingwa

Recent Posts

ZSE & SECZ want more retail investors – Stockbrokers will have to improve their online presence for that to happen

The Securities Exchange Commission of Zimbabwe (SECZ) and Zimbabwe Stock Exchnage have made it clear…

October 21, 2020

Electric vehicles & how their adoption in Zimbabwe could be accelerated

Electric vehicles (EVs) have been the subject of debate for the last decade or so.…

October 21, 2020

HP CEO says remote work will allow companies to hire more internationally

The future of work has been a huge talking point for the whole world this…

October 20, 2020

3 ways Zimbabweans in South Africa can send groceries back home

Late last week Vaya and Thumela eKhaya announced a partnership that offers Zimbabweans in South…

October 20, 2020

Tisu vanhu vacho episode 3 – Jah Prayzah, the trials of dating in Harare & “life”

Tisu vanhu vacho, vanhu vacho vapi? The people behind Techzim’s articles, videos and social media.…

October 20, 2020

Victoria Falls Stock Exchange launching on Friday, Old Mutual will list there

So the Victoria Falls Stock Exchange, the one the government said was for companies to…

October 19, 2020