Union requests corporate rescue for Zimbabwe’s Telecel

15 Mar 2021

A communications workers’ union in Zimbabwe is pushing for struggling state-backed mobile operator Telecel to enter a corporate rescue process or receivership. Corporate rescue would implement a temporary supervision order to help the firm get on top of its debts and other liabilities. A report from TechZim cites David Mhambare, Secretary-General of the Communications and Allied Workers Union of Zimbabwe (CASWUZ), as saying: ‘We have proposed the issue of corporate rescue to the government through the Minister of Information Communication Technology, Postal and Courier Services Jenfan Muswere and he promised to institute some changes at Telecel but there has not been any movement to date.’

TeleGeography’s GlobalComms Database notes that Telecel is well behind rival Zimbabwe cellcos Econet and NetOne in terms of subscribers, with its share of the overall wireless market having fallen to around 6% by the end of 2020. From a peak of over 2.5 million users in 2012, Telecel has seen its customer base drop to an estimated 750,000 at end-2020.

Zimbabwe, Telecel Zimbabwe