Zimbabwean state-owned mobile operator Telecel is expected to be placed under corporate rescue, a form of bankruptcy protection, due to ‘serious financial distress’. According to a report from The Herald, David Mhambare, the secretary general of the Communication and Allied Service Workers Union of Zimbabwe, is cited in a high court application as saying: ‘The … conditions indicate the existence of a material uncertainty that may cast significant doubt on the company’s ability to continue operating as a going concern. If the solvency position of Telecel does not receive prime attention, it will inevitably go under liquidation.’ At 31 December 2021 Telecel’s liabilities outweighed its assets by a factor of sixteen to one.
TeleGeography’s GlobalComms Database notes that Telecel, by far the smallest of Zimbabwe’s three mobile service providers, has been struggling financially and facing a declining subscription base for some time.