Clear Mobitel CEO Mr Harpal Mann. Image Credit Clear Mobitel
You know, hyperinflation really messes up your evaluation of numbers. As a former gazillionaire myself, I don’t really appreciate that a million is a lot of money, even with $7.52 in my bank account.
That said, it is significant that Clear Mobitel’s CEO says he is willing to invest $200 million in Zimbabwe. In any country, and especially in Zimbabwe, a $200 million investment is substantial.
All that is true, but we need to make sure we aren’t being sold air pies here. As they say, talk is cheap. We need to know who these guys are and if they have the capacity to do what they say they intend to do. Did they even commit to anything? Let’s explore it all.
First, here is a quote:
I am happy that we have managed to engage in some fruitful discussions with the government. I am impressed by the country’s business environment and prepared to invest US$200 million because of the open-for-business policy in Zimbabwe.
He says Clear Mobitel has grander ambitions and Zimbabwe is merely the first destination in SADC they are targeting:
We want to start in Zimbabwe, which has a conducive business environment. Our objective is to eventually spread our wings to the rest of the region.
What conducive business environment?
The CEO seems to be in awe of the country’s business environment. That is interesting. If you were to ask any startup about that same environment, they would wonder if he knows what ‘conducive’ means.
It’s not only startups that have concerns; larger enterprises in this country are always complaining about the environment. So, what is Clear Mobitel talking about?
First, like him or hate him, President Mnangagwa has been harping on about Zimbabwe being open for business since the day he took office after the not-a-coup.
It’s just that we haven’t had many takers, but you can’t say he hasn’t invited investors.
I also must acknowledge that I think the Zimbabwe Investment and Development Agency (ZIDA) is doing a good job. I think they have made it easier for foreign investors to come to Zimbabwe.
So, I think that might be why Clear Mobitel is praising the country’s business environment. The conversations they have had have probably been pleasant as we indeed roll out the red carpet for foreign investors.
I have no problem with that; in fact, I praise it. I only hope that we do the same for local entrepreneurs. Let’s make it easy for them to set up shop too.
The phoney-sounding statements
I know many were thinking it. The CEO’s statements sound a little too diplomatic and flattering. He says he wants to invest in Zimbabwe because of its open-for-business policy. Then, he repeats that he loves our business-conducive environment.
See, a conducive business environment involves a regulatory framework, political stability, infrastructure, access to finance, a skilled workforce, policies and frameworks that promote innovation and research, a good legal system, and other factors like that.
I don’t know if we can say Zimbabwe ranks highly on those factors. However, there is an opportunity to make money in the underfunded telecommunications industry that Clear Mobitel operates in.
So, yes, his statements were meant to be flattering and diplomatic because it’s the practical thing to say. He couldn’t just come right out and say, “We think there is a chance to be a Tora Mari United that makes huge profits by operating in this country.”
So, don’t mind the politically-sounding statements he gave. That’s how the game is played.
Fruitful discussions with the government
These discussions are exactly what convinced Clear Mobitel to consider Zimbabwe. I think we can forgive Zimbabweans for fearing the worst when they hear this. What does fruitful mean?
If Clear Mobitel knows what they are doing, they would try to negotiate the best terms for themselves. I imagine they found the Zimbabwean government amenable to some of their proposals or ideas.
As The Chronicle put it, “The President also said there was an array of fiscal incentives that stood to benefit investors who chose to do business in Zimbabwe.”
It’s only practical for the government to offer these incentives. If we didn’t, we wouldn’t have any investors knocking on our doors. So, I guess we are bending over backwards for Clear Mobitel, and I’m not really mad at that.
One only hopes that’s where the conversations ended. One hopes there aren’t any personal terms stuck into the whole deal, but if history serves, that’s unwarranted hope. You can bet your bottom dollar that there are politicians who will be looking to personally benefit from such an investment.
Anyway …
Who are Clear Mobitel?
I’m pretty sure almost none of us knew about this company. I mean, how could we, when they were only active in faraway countries and not at a scale that we would have heard about them?
First off, the company exists and is registered in the UK. We’ll talk more about that registration later.
The primary objective at Clear Mobitel is to lead the next wave of 5G Ecosystem technologies for FWA (Fixed Wireless Access), Private 5G Network services, and cutting-edge smart and secure mobile connectivity solutions.
They claim to do a lot – 5G private networks, rural broadband, AI, smart cities, traveling e-SIM, data centres etc.
There are reports of Clear Mobitel is using Japanese NEC’s Standalone (SA) Cloud Native Core Network solution in the UK to “accelerate the delivery and adoption of advanced 5G services.”
They are present in a few countries, apparently. Clear Mobitel is providing a 5G radio frequency service in the Channel Islands as CEO Harpal Mann operates a mobile communications business in the UK and conducts IDC projects in New Zealand and the United States.
Dormant company?
Back to that registration. The company is registered in the UK as a private company, so we can’t really dig into its affairs.
It was first registered in 2009 but was dormant for several years, as seen by a series of dormant company accounts filed from 2016 to 2022.
The financial statements for 2021 came out in mid-2022 and were titled ‘Dormant accounts.’ They showed the company had only £1 in cash, which was also the only capital in the company.
The company was dissolved via compulsory strike-off on April 13, 2021. On July 8, 2021, an administrative restoration application was filed.
There was some activity in 2022 according the latest statements. The founder and CEO lent some money to the company. Note that I said he lent money to his company, payable within a year. He did not contribute it as capital. Capital in the company in 2022 remained at £1.
Those are the latest financial statements we found. All we have after that is a confirmation statement filed at the end of 2023, which has no updates. This implies there were no changes to company details, including share capital. So, Clear Mobitel had share capital of £1 at the end of 2023.
From there, we jump to the NEC story we discussed earlier in February 2024 and then to considerations of investing $200 million in Zimbabwe.
Listen, I know that as a private company, Clear Mobitel can be as vague about its financial status as it wants. This means the filed statements we discussed above do not necessarily paint the most accurate picture.
Maybe they have $200 million to invest, colour me sceptical. I hope I am wrong and that the accounts above only demonstrate how useless unaudited private company financial statements can be.
What I am certain of is that calling Clear Mobitel a ‘giant global telecoms firm,’ as state media are doing, is a little ridiculous.
Real deal or nah?
I’m not trying to rain on the $200 million parade we have going on here. I’m not conclusively saying Clear Mobitel is selling us pipe dreams. You have all the information I have now. Do you think they are legitimate, or should we get some Pepsis to drink with our air pies?
A company that was momentarily struck off the companies register in 2021 and that has exactly £1 as invested capital is prepared to invest $200 million in Zimbabwe. There is a Shona saying that goes, “Totenda dzanwa.” It means we are skeptical and would be pleasantly surprised if it works out.
I didn’t even mention that there is no firm commitment. Clear Mobitel has merely expressed interest, and business is like dating and romance—flirting with us does not mean it’s a done deal. Rejection is more bitter when your object of interest seemed interested. If we end up in a relationship with Clear Mobitel, cool; if not, I’d be disappointed but just as cool.
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