E Corp acquires further 11% in Telecel Zimbabwe

17 Jul 2013

Zimbabwe’s local investment group Empowerment Corporation (E Corp) has acquired a further 11% stake in Telecel Zimbabwe, local news agency Dailynews reports. According to the article, E Corp has increased its stake in the Zimbabwean telco to 61%, and is currently in negotiations for another 9% of the company’s shares. E Corp has reportedly fulfilled its financial obligations towards Telecel Globe, and is currently awaiting the transfer of the dividends. As previously reported by TeleGeography’s CommsUpdate, Telecel was told by the Transport, Communications and Infrastructural Development Minister Nicholas Goche that it must adhere to regulations governing foreign ownership, as the law states that 60% of Telecel’s shares must be locally owned, or it would face losing its wireless concession. The mobile licence of the Zimbabwean cellco expired last month and the company was trying to tackle its shareholding woes before its renewal.

According to TeleGeography’s GlobalComms Database, Telecel Zimbabwe is owned by Orascom Telecom Holdings (60%, registered to Telecel Globe), itself ultimately owned by Vimpelcom of Russia via Wind Telecom (formerly Weather Investments), the holding company for the majority of the assets of the Egyptian-backed international Orascom group which merged into the Vimpelcom group in a deal completed in April 2011. The remaining 40% is held by the local Empowerment Corporation (E Corp), itself comprising Kestrel (23%), IEG (18%), Indigenous Business Women’s Organisation (17%), National Miners’ Association (14%), Zimbabwe Farmers’ Union (14%) and Magamba eChimurenga (14%).

Zimbabwe, Global Telecom Holding (GTH, formerly OTH), Telecel Zimbabwe